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SF 1456

3rd Engrossment - 90th Legislature (2017 - 2018) Posted on 06/21/2017 11:31am

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Current Version - 3rd Engrossment

A bill for an act
relating to state government; appropriating money for jobs and economic
development; appropriating money for the Department of Employment and
Economic Development, Housing Finance Agency, Department of Labor and
Industry, Bureau of Mediation Services, Public Employment Relations Board,
Workers' Compensation Court of Appeals, Department of Commerce, Public
Utilities Commission, and Public Facilities Authority; making policy and
housekeeping changes to labor and industry provisions; making policy changes to
employment, economic development, and workforce development provisions;
making policy changes to the Department of Iron Range Resources and
Rehabilitation; making changes related to workers' compensation; making changes
to commerce, energy, and telecommunications policy; making other housing and
miscellaneous policy changes; modifying fees; requiring reports; authorizing
rulemaking; amending Minnesota Statutes 2016, sections 3.732, subdivision 1;
3.736, subdivision 3; 3.8851, subdivision 1; 15.01; 15.38, subdivision 7; 15A.0815,
subdivision 3; 16B.323; 43A.02, subdivision 22; 45.0135, subdivision 6; 46.131,
subdivision 7, by adding a subdivision; 65B.84, subdivision 1; 80A.61; 80A.65,
subdivision 2; 85.0146, subdivision 1; 116C.779, subdivision 1; 116C.7792;
116D.04, subdivision 1a; 116J.423, subdivision 2; 116J.424; 116J.8731, subdivision
2, by adding a subdivision; 116J.8748, subdivisions 1, 3, 4, 6; 116J.994,
subdivisions 3, 5, 7; 116L.17, subdivision 1; 116L.665; 116M.14, subdivision 4;
116M.17, subdivision 4; 116M.18, subdivisions 1a, 4, 4a, 8; 175.45; 176.135, by
adding a subdivision; 176.1362, subdivisions 1, 2; 176.275, subdivision 1; 176.285;
176.361, subdivisions 2, 3; 176.521, by adding a subdivision; 176.541, subdivisions
1, 8, by adding a subdivision; 176.611, subdivision 2; 216B.161, subdivision 1;
216B.164, subdivisions 2, 5, 9, by adding a subdivision; 216B.1691, subdivision
2f; 216B.1694, subdivisions 1, 3; 216B.241, subdivisions 1b, 1c, 1d, 2, 5, 5d, 7;
216B.2422, subdivisions 2, 4; 216B.2424, by adding a subdivision; 216B.62,
subdivision 3b; 216C.05, subdivision 2; 216C.435, by adding a subdivision;
216H.03, subdivisions 3, 4, 7; 237.162, subdivisions 2, 4, 9, by adding subdivisions;
237.163, subdivisions 2, 4, 6, 7, by adding subdivisions; 276A.01, subdivisions
8, 17; 276A.06, subdivision 8; 282.38, subdivisions 1, 3; 297I.11, subdivision 2;
298.001, subdivision 8, by adding a subdivision; 298.018, subdivision 1; 298.17;
298.22, subdivisions 1, 1a, 5a, 6, 10, 11, by adding subdivisions; 298.221; 298.2211,
subdivisions 3, 6; 298.2212; 298.223, subdivisions 1, 2; 298.227; 298.27; 298.28,
subdivisions 7, 7a, 9c, 9d, 11; 298.292, subdivision 2; 298.296; 298.2961; 298.297;
298.46, subdivisions 2, 5, 6; 325J.06; 326B.092, subdivision 7; 326B.153,
subdivision 1; 326B.37, by adding subdivisions; 326B.435, subdivision 2; 326B.50,
subdivision 3, by adding subdivisions; 326B.55, subdivisions 2, 4; 326B.89,
subdivisions 1, 5; 327C.01, by adding a subdivision; 345.42, by adding a
subdivision; 345.49; 462.355, subdivision 4; 462A.201, subdivision 2; 462A.2035;
462A.204, subdivision 8; 466.03, subdivision 6c; 469.310, subdivision 9; 474A.02,
subdivision 21; Laws 2010, chapter 389, article 5, section 7; Laws 2014, chapter
211, section 13, as amended; Laws 2014, chapter 312, article 2, section 14, as
amended; Laws 2015, First Special Session chapter 1, article 1, sections 2,
subdivision 6; 5, subdivision 2; Laws 2016, chapter 189, article 7, section 46; Laws
2017, chapter 68, article 1, section 1; proposing coding for new law in Minnesota
Statutes, chapters 72A; 116J; 175; 176; 216C; 239; 326B; 327C; 462A; 462C;
471; repealing Minnesota Statutes 2016, sections 3.8852; 46.131, subdivision 5;
116C.779, subdivision 3; 116J.549; 174.187; 176.541, subdivision 7; 216B.8109;
216B.811; 216B.812; 216B.813; 216B.815; 216C.411; 216C.412; 216C.413;
216C.414; 216C.415; 216C.416; 298.22, subdivision 8; 298.2213; 298.298;
326B.89, subdivision 14; Laws 2013, chapter 85, article 6, section 11; Minnesota
Rules, parts 4355.0100; 4355.0200; 4355.0300; 4355.0400; 4355.0500.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. JOBS AND ECONOMIC DEVELOPMENT.

(a) The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2018" and "2019" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2018, or June 30, 2019,
respectively. "The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The
biennium" is fiscal years 2018 and 2019.

(b) If an appropriation in this article is enacted more than once in the 2017 legislative
session, the appropriation must be given effect only once.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

Subdivision 1.

Total Appropriation

$
145,400,000
$
119,478,000
Appropriations by Fund
2018
2019
General
$109,565,000
$84,747,000
Remediation
$700,000
$700,000
Workforce
Development
$34,985,000
$34,031,000
Special Revenue
$150,000
-0-

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.

Business and Community Development

$
46,074,000
$
40,935,000
Appropriations by Fund
General
$43,363,000
$38,424,000
Remediation
$700,000
$700,000
Workforce
Development
$1,861,000
$1,811,000
Special Revenue
$150,000
-0-

(a) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until spent.

(b) $750,000 each year is for grants to the
Neighborhood Development Center for small
business programs:

(1) training, lending, and business services;

(2) model outreach and training in greater
Minnesota; and

(3) development of new business incubators.

This is a onetime appropriation.

(c) $1,175,000 each year is for a grant to the
Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services, including
services to entrepreneurs with businesses that
have the potential to create job opportunities
for unemployed and underemployed people,
with an emphasis on minority-owned
businesses. This is a onetime appropriation.

(d) $125,000 each year is for a grant to the
White Earth Nation for the White Earth Nation
Integrated Business Development System to
provide business assistance with workforce
development, outreach, technical assistance,
infrastructure and operational support,
financing, and other business development
activities. This is a onetime appropriation.

(e)(1) $12,500,000 each year is for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administration and monitoring of
the program. This appropriation is available
until spent.

(2) Of the amount appropriated in fiscal year
2018, $4,000,000 is for a loan to construct and
equip a wholesale electronic component
distribution center investing a minimum of
$200,000,000 and constructing a facility at
least 700,000 square feet in size. Loan funds
may be used for purchases of materials,
supplies, and equipment for the construction
of the facility and are available from July 1,
2017, to June 30, 2021. The commissioner of
employment and economic development shall
forgive the loan after verification that the
project has satisfied performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731.

(3) Of the amount appropriated in fiscal year
2018, $700,000 is for a loan to extend an
effluent pipe that will deliver reclaimed water
to an innovative waste-to-biofuel project
investing a minimum of $150,000,000 and
constructing a facility that is designed to
process approximately 400,000 tons of waste
annually. Loan funds are available until June
30, 2021.

(f) $8,500,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until expended. In fiscal year 2020
and beyond, the base amount is $8,000,000.

(g) $1,647,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
spent. In fiscal year 2020 and beyond, the base
amount is $1,772,000.

(h) $12,000 each year is for a grant to the
Upper Minnesota Film Office.

(i) $163,000 each year is for the Minnesota
Film and TV Board. The appropriation in each
year is available only upon receipt by the
board of $1 in matching contributions of
money or in-kind contributions from nonstate
sources for every $3 provided by this
appropriation, except that each year up to
$50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.

(j) $500,000 each year is from the general fund
for a grant to the Minnesota Film and TV
Board for the film production jobs program
under Minnesota Statutes, section 116U.26.
This appropriation is available until June 30,
2021.

(k) $139,000 each year is for a grant to the
Rural Policy and Development Center under
Minnesota Statutes, section 116J.421.

(l)(1) $1,300,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until spent. If the appropriation
for either year is insufficient, the appropriation
for the other year is available. In fiscal year
2020 and beyond, the base amount is
$1,787,000. Funds available under this
paragraph may be used for site preparation of
property owned and to be used by private
entities.

(2) Of the amounts appropriated, $1,600,000
in fiscal year 2018 is for a grant to the city of
Thief River Falls to support utility extensions,
roads, and other public improvements related
to the construction of a wholesale electronic
component distribution center at least 700,000
square feet in size and investing a minimum
of $200,000,000. Notwithstanding Minnesota
Statutes, section 116J.431, a local match is
not required. Grant funds are available from
July 1, 2017, to June 30, 2021.

(m) $876,000 the first year and $500,000 the
second year are for the Minnesota emerging
entrepreneur loan program under Minnesota
Statutes, section 116M.18. Funds available
under this paragraph are for transfer into the
emerging entrepreneur program special
revenue fund account created under Minnesota
Statutes, chapter 116M, and are available until
spent. Of this amount, up to four percent is for
administration and monitoring of the program.
In fiscal year 2020 and beyond, the base
amount is $1,000,000.

(n) $875,000 each year is for a grant to
Enterprise Minnesota, Inc. for the small
business growth acceleration program under
Minnesota Statutes, section 116O.115. This
is a onetime appropriation.

(o) $250,000 in fiscal year 2018 is for a grant
to the Minnesota Design Center at the
University of Minnesota for the greater
Minnesota community design pilot project.

(p) $275,000 in fiscal year 2018 is from the
general fund to the commissioner of
employment and economic development for
a grant to Community and Economic
Development Associates (CEDA) for an
economic development study and analysis of
the effects of current and projected economic
growth in southeast Minnesota. CEDA shall
report on the findings and recommendations
of the study to the committees of the house of
representatives and senate with jurisdiction
over economic development and workforce
issues by February 15, 2019. All results and
information gathered from the study shall be
made available for use by cities in southeast
Minnesota by March 15, 2019. This
appropriation is available until June 30, 2020.

(q) $2,000,000 in fiscal year 2018 is for a
grant to Pillsbury United Communities for
construction and renovation of a building in
north Minneapolis for use as the "North
Market" grocery store and wellness center,
focused on offering healthy food, increasing
health care access, and providing job creation
and economic opportunities in one place for
children and families living in the area. To the
extent possible, Pillsbury United Communities
shall employ individuals who reside within a
five mile radius of the grocery store and
wellness center. This appropriation is not
available until at least an equal amount of
money is committed from nonstate sources.
This appropriation is available until the project
is completed or abandoned, subject to
Minnesota Statutes, section 16A.642.

(r) $1,425,000 each year is for the business
development competitive grant program. Of
this amount, up to five percent is for
administration and monitoring of the business
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.

(s) $875,000 each year is for the host
community economic development grant
program established in Minnesota Statutes,
section 116J.548.

(t) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until spent.

(u) $161,000 each year is from the workforce
development fund for a grant to the Rural
Policy and Development Center. This is a
onetime appropriation.

(v) $300,000 each year is from the workforce
development fund for a grant to Enterprise
Minnesota, Inc. This is a onetime
appropriation.

(w) $50,000 in fiscal year 2018 is from the
workforce development fund for a grant to
Fighting Chance for behavioral intervention
programs for at-risk youth.

(x) $1,350,000 each year is from the
workforce development fund for job training
grants under Minnesota Statutes, section
116L.42.

(y)(1) $519,000 in fiscal year 2018 is for
grants to local communities to increase the
supply of quality child care providers in order
to support economic development. At least 60
percent of grant funds must go to communities
located outside of the seven-county
metropolitan area, as defined under Minnesota
Statutes, section 473.121, subdivision 2. Grant
recipients must obtain a 50 percent nonstate
match to grant funds in either cash or in-kind
contributions. Grant funds available under this
paragraph must be used to implement solutions
to reduce the child care shortage in the state
including but not limited to funding for child
care business start-ups or expansions, training,
facility modifications or improvements
required for licensing, and assistance with
licensing and other regulatory requirements.
In awarding grants, the commissioner must
give priority to communities that have
documented a shortage of child care providers
in the area.

(2) Within one year of receiving grant funds,
grant recipients must report to the
commissioner on the outcomes of the grant
program including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care slots, and the
amount of local funds invested.

(3) By January 1 of each year, starting in 2019,
the commissioner must report to the standing
committees of the legislature having
jurisdiction over child care and economic
development on the outcomes of the program
to date.

(z) $319,000 in fiscal year 2018 is from the
general fund for a grant to the East Phillips
Improvement Coalition to create the East
Phillips Neighborhood Institute (EPNI) to
expand culturally tailored resources that
address small business growth and create
green jobs. The grant shall fund the
collaborative work of Tamales y Bicicletas,
Little Earth of the United Tribes, a nonprofit
serving East Africans, and other coalition
members towards developing EPNI as a
community space to host activities including,
but not limited to, creation and expansion of
small businesses, culturally specific
entrepreneurial activities, indoor urban
farming, job training, education, and skills
development for residents of this low-income,
environmental justice designated
neighborhood. Eligible uses for grant funds
include, but are not limited to, planning and
start-up costs, staff and consultant costs,
building improvements, rent, supplies, utilities,
vehicles, marketing, and program activities.
The commissioner shall submit a report on
grant activities and quantifiable outcomes to
the committees of the house of representatives
and the senate with jurisdiction over economic
development by December 15, 2020. This
appropriation is available until June 30, 2020.

(aa) $150,000 the first year is from the
renewable development account in the special
revenue fund established in Minnesota
Statutes, section 116C.779, subdivision 1, to
conduct the biomass facility closure economic
impact study.

(bb)(1)$300,000 in fiscal year 2018 is for a
grant to East Side Enterprise Center (ESEC)
to expand culturally tailored resources that
address small business growth and job
creation. This appropriation is available until
June 30, 2020. The appropriation shall fund
the work of African Economic Development
Solutions, the Asian Economic Development
Association, the Dayton's Bluff Community
Council, and the Latino Economic
Development Center in a collaborative
approach to economic development that is
effective with smaller, culturally diverse
communities that seek to increase the
productivity and success of new immigrant
and minority populations living and working
in the community. Programs shall provide
minority business growth and capacity
building that generate wealth and jobs creation
for local residents and business owners on the
East Side of St. Paul.

(2) In fiscal year 2019 ESEC shall use funds
to share its integrated service model and
evolving collaboration principles with civic
and economic development leaders in greater
Minnesota communities which have diverse
populations similar to the East Side of St. Paul.
ESEC shall submit a report of activities and
program outcomes, including quantifiable
measures of success annually to the house of
representatives and senate committees with
jurisdiction over economic development.

(cc) $150,000 in fiscal year 2018 is for a grant
to Mille Lacs County for the purpose of
reimbursement grants to small resort
businesses located in the city of Isle with less
than $350,000 in annual revenue, at least four
rental units, which are open during both
summer and winter months, and whose
business was adversely impacted by a decline
in walleye fishing on Lake Mille Lacs.

(dd)(1) $250,000 in fiscal year 2018 is for a
grant to the Small Business Development
Center hosted at Minnesota State University,
Mankato, for a collaborative initiative with
the Regional Center for Entrepreneurial
Facilitation. Funds available under this section
must be used to provide entrepreneur and
small business development direct professional
business assistance services in the following
counties in Minnesota: Blue Earth, Brown,
Faribault, Le Sueur, Martin, Nicollet, Sibley,
Watonwan, and Waseca. For the purposes of
this section, "direct professional business
assistance services" must include, but is not
limited to, pre-venture assistance for
individuals considering starting a business.
This appropriation is not available until the
commissioner determines that an equal amount
is committed from nonstate sources. Any
balance in the first year does not cancel and
is available for expenditure in the second year.

(2) Grant recipients shall report to the
commissioner by February 1 of each year and
include information on the number of
customers served in each county; the number
of businesses started, stabilized, or expanded;
the number of jobs created and retained; and
business success rates in each county. By April
1 of each year, the commissioner shall report
the information submitted by grant recipients
to the chairs of the standing committees of the
house of representatives and the senate having
jurisdiction over economic development
issues.

(ee) $500,000 in fiscal year 2018 is for the
central Minnesota opportunity grant program
established under Minnesota Statutes, section
116J.9922. This appropriation is available until
June 30, 2022.

Subd. 3.

Workforce Development

$
31,498,000
$
30,231,000
Appropriations by Fund
General
$6,239,000
$5,889,000
Workforce
Development
$25,259,000
$24,342,000

(a) $500,000 each year is for the
youth-at-work competitive grant program
under Minnesota Statutes, section 116L.562.
Of this amount, up to five percent is for
administration and monitoring of the youth
workforce development competitive grant
program. All grant awards shall be for two
consecutive years. Grants shall be awarded in
the first year. In fiscal year 2020 and beyond,
the base amount is $750,000.

(b) $250,000 each year is for pilot programs
in the workforce service areas to combine
career and higher education advising.

(c) $500,000 each year is for rural career
counseling coordinator positions in the
workforce service areas and for the purposes
specified in Minnesota Statutes, section
116L.667. The commissioner of employment
and economic development, in consultation
with local workforce investment boards and
local elected officials in each of the service
areas receiving funds, shall develop a method
of distributing funds to provide equitable
services across workforce service areas.

(d) $1,000,000 each year is for a grant to the
Construction Careers Foundation for the
construction career pathway initiative to
provide year-round educational and
experiential learning opportunities for teens
and young adults under the age of 21 that lead
to careers in the construction industry. This is
a onetime appropriation. Grant funds must be
used to:

(1) increase construction industry exposure
activities for middle school and high school
youth, parents, and counselors to reach a more
diverse demographic and broader statewide
audience. This requirement includes, but is
not limited to, an expansion of programs to
provide experience in different crafts to youth
and young adults throughout the state;

(2) increase the number of high schools in
Minnesota offering construction classes during
the academic year that utilize a multicraft
curriculum;

(3) increase the number of summer internship
opportunities;

(4) enhance activities to support graduating
seniors in their efforts to obtain employment
in the construction industry;

(5) increase the number of young adults
employed in the construction industry and
ensure that they reflect Minnesota's diverse
workforce; and

(6) enhance an industrywide marketing
campaign targeted to youth and young adults
about the depth and breadth of careers within
the construction industry.

Programs and services supported by grant
funds must give priority to individuals and
groups that are economically disadvantaged
or historically underrepresented in the
construction industry, including but not limited
to women, veterans, and members of minority
and immigrant groups.

(e) $1,539,000 each year from the general fund
and $4,604,000 each year from the workforce
development fund are for the Pathways to
Prosperity adult workforce development
competitive grant program. Of this amount,
up to four percent is for administration and
monitoring of the program. When awarding
grants under this paragraph, the commissioner
of employment and economic development
may give preference to any previous grantee
with demonstrated success in job training and
placement for hard-to-train individuals. In
fiscal year 2020 and beyond, the general fund
base amount for this program is $4,039,000.

(f) $750,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals, such as job training, employment
preparation, internships, job assistance to
fathers, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants made
under this section must focus on low-income
communities, young adults from families with
a history of intergenerational poverty, and
communities of color. Of this amount, up to
four percent is for administration and
monitoring of the program. In fiscal year 2020
and beyond, the base amount is $1,000,000.

(g) $500,000 each year is for the women and
high-wage, high-demand, nontraditional jobs
grant program under Minnesota Statutes,
section 116L.99. Of this amount, up to five
percent is for administration and monitoring
of the program. In fiscal year 2020 and
beyond, the base amount is $750,000.

(h) $500,000 each year is for a competitive
grant program for grants to organizations
providing services to relieve economic
disparities in the Southeast Asian community
through workforce recruitment, development,
job creation, assistance of smaller
organizations to increase capacity, and
outreach. Of this amount, up to five percent
is for administration and monitoring of the
program. In fiscal year 2020 and beyond, the
base amount is $1,000,000.

(i) $250,000 each year is for a grant to the
American Indian Opportunities and
Industrialization Center, in collaboration with
the Northwest Indian Community
Development Center, to reduce academic
disparities for American Indian students and
adults. This is a onetime appropriation. The
grant funds may be used to provide:

(1) student tutoring and testing support
services;

(2) training in information technology;

(3) assistance in obtaining a GED;

(4) remedial training leading to enrollment in
a postsecondary higher education institution;

(5) real-time work experience in information
technology fields; and

(6) contextualized adult basic education.

After notification to the legislature, the
commissioner may transfer this appropriation
to the commissioner of education.

(j) $100,000 each year is for the getting to
work grant program. This is a onetime
appropriation and is available until June 30,
2021.

(k) $525,000 each year is from the workforce
development fund for a grant to the YWCA
of Minneapolis to provide economically
challenged individuals the job skills training,
career counseling, and job placement
assistance necessary to secure a child
development associate credential and to have
a career path in early childhood education.
This is a onetime appropriation.

(l) $1,350,000 each year is from the workforce
development fund for a grant to the Minnesota
High Tech Association to support
SciTechsperience, a program that supports
science, technology, engineering, and math
(STEM) internship opportunities for two- and
four-year college students and graduate
students in their field of study. The internship
opportunities must match students with paid
internships within STEM disciplines at small,
for-profit companies located in Minnesota,
having fewer than 250 employees worldwide.
At least 300 students must be matched in the
first year and at least 350 students must be
matched in the second year. No more than 15
percent of the hires may be graduate students.
Selected hiring companies shall receive from
the grant 50 percent of the wages paid to the
intern, capped at $2,500 per intern. The
program must work toward increasing the
participation of women or other underserved
populations. This is a onetime appropriation.

(m) $450,000 each year is from the workforce
development fund for grants to Minnesota
Diversified Industries, Inc. to provide
progressive development and employment
opportunities for people with disabilities. This
is a onetime appropriation.

(n) $500,000 each year is from the workforce
development fund for a grant to Resource, Inc.
to provide low-income individuals career
education and job skills training that are fully
integrated with chemical and mental health
services. This is a onetime appropriation.

(o) $750,000 each year is from the workforce
development fund for a grant to the Minnesota
Alliance of Boys and Girls Clubs to administer
a statewide project of youth job skills and
career development. This project, which may
have career guidance components including
health and life skills, is designed to encourage,
train, and assist youth in early access to
education and job-seeking skills, work-based
learning experience including career pathways
in STEM learning, career exploration and
matching, and first job placement through
local community partnerships and on-site job
opportunities. This grant requires a 25 percent
match from nonstate resources. This is a
onetime appropriation.

(p) $215,000 each year is from the workforce
development fund for grants to Big Brothers,
Big Sisters of the Greater Twin Cities for
workforce readiness, employment exploration,
and skills development for youth ages 12 to
21. The grant must serve youth in the Twin
Cities, Central Minnesota, and Southern
Minnesota Big Brothers, Big Sisters chapters.
This is a onetime appropriation.

(q) $250,000 each year is from the workforce
development fund for a grant to YWCA St.
Paul to provide job training services and
workforce development programs and
services, including job skills training and
counseling. This is a onetime appropriation.

(r) $1,000,000 each year is from the workforce
development fund for a grant to EMERGE
Community Development, in collaboration
with community partners, for services
targeting Minnesota communities with the
highest concentrations of African and
African-American joblessness, based on the
most recent census tract data, to provide
employment readiness training, credentialed
training placement, job placement and
retention services, supportive services for
hard-to-employ individuals, and a general
education development fast track and adult
diploma program. This is a onetime
appropriation.

(s) $1,000,000 each year is from the workforce
development fund for a grant to the
Minneapolis Foundation for a strategic
intervention program designed to target and
connect program participants to meaningful,
sustainable living-wage employment. This is
a onetime appropriation.

(t) $750,000 each year is from the workforce
development fund for a grant to Latino
Communities United in Service (CLUES) to
expand culturally tailored programs that
address employment and education skill gaps
for working parents and underserved youth by
providing new job skills training to stimulate
higher wages for low-income people, family
support systems designed to reduce
intergenerational poverty, and youth
programming to promote educational
advancement and career pathways. At least
50 percent of this amount must be used for
programming targeted at greater Minnesota.
This is a onetime appropriation.

(u) $600,000 each year is from the workforce
development fund for a grant to Ujamaa Place
for job training, employment preparation,
internships, education, training in the
construction trades, housing, and
organizational capacity building. This is a
onetime appropriation.

(v) $1,297,000 in the first year and $800,000
in the second year are from the workforce
development fund for performance grants
under Minnesota Statutes, section 116J.8747,
to Twin Cities R!SE to provide training to
hard-to-train individuals. Of the amounts
appropriated, $497,000 in fiscal year 2018 is
for a grant to Twin Cities R!SE, in
collaboration with Metro Transit and Hennepin
Technical College for the Metro Transit
technician training program. This is a onetime
appropriation and funds are available until
June 30, 2020.

(w) $230,000 in fiscal year 2018 is from the
workforce development fund for a grant to the
Bois Forte Tribal Employment Rights Office
(TERO) for an American Indian workforce
development training pilot project.

(x) $40,000 in fiscal year 2018 is from the
workforce development fund for a grant to the
Cook County Higher Education Board to
provide educational programming and
academic support services to remote regions
in northeastern Minnesota. This appropriation
is in addition to other funds previously
appropriated to the board.

(y) $250,000 each year is from the workforce
development fund for a grant to Bridges to
Healthcare to provide career education,
wraparound support services, and job skills
training in high-demand health care fields to
low-income parents, nonnative speakers of
English, and other hard-to-train individuals,
helping families build secure pathways out of
poverty while also addressing worker
shortages in one of Minnesota's most
innovative industries. Funds may be used for
program expenses, including, but not limited
to, hiring instructors and navigators; space
rental; and supportive services to help
participants attend classes, including assistance
with course fees, child care, transportation,
and safe and stable housing. In addition, up to
five percent of grant funds may be used for
Bridges to Healthcare's administrative costs.
This is a onetime appropriation and is
available until June 30, 2020.

(z) $500,000 each year is from the workforce
development fund for a grant to the Nonprofits
Assistance Fund to provide capacity-building
grants to small, culturally specific
organizations that primarily serve historically
underserved cultural communities. Grants may
only be awarded to nonprofit organizations
that have an annual organizational budget of
less than $500,000 and are culturally specific
organizations that primarily serve historically
underserved cultural communities. Grant funds
awarded must be used for:

(1) organizational infrastructure improvement,
including developing database management
systems and financial systems, or other
administrative needs that increase the
organization's ability to access new funding
sources;

(2) organizational workforce development,
including hiring culturally competent staff,
training and skills development, and other
methods of increasing staff capacity; or

(3) creation or expansion of partnerships with
existing organizations that have specialized
expertise in order to increase the capacity of
the grantee organization to improve services
for the community. Of this amount, up to five
percent may be used by the Nonprofits
Assistance Fund for administration costs and
providing technical assistance to potential
grantees. This is a onetime appropriation.

(aa) $4,050,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561.

(bb) $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota Statutes,
sections 116L.361 to 116L.366.

(cc) $3,348,000 each year is from the
workforce development fund for the "Youth
at Work" youth workforce development
competitive grant program. Of this amount,
up to five percent is for administration and
monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.

(dd) $500,000 each year is from the workforce
development fund for the Opportunities
Industrialization Center programs.

(ee) $750,000 each year is from the workforce
development fund for a grant to Summit
Academy OIC to expand its contextualized
GED and employment placement program.
This is a onetime appropriation.

(ff) $500,000 each year is from the workforce
development fund for a grant to
Goodwill-Easter Seals Minnesota and its
partners. The grant shall be used to continue
the FATHER Project in Rochester, Park
Rapids, St. Cloud, Minneapolis, and the
surrounding areas to assist fathers in
overcoming barriers that prevent fathers from
supporting their children economically and
emotionally. This is a onetime appropriation.

(gg) $150,000 each year is from the workforce
development fund for displaced homemaker
programs under Minnesota Statutes, section
116L.96. The commissioner shall distribute
the funds to existing nonprofit and state
displaced homemaker programs. This is a
onetime appropriation.

(hh)(1) $150,000 in fiscal year 2018 is from
the workforce development fund for a grant
to Anoka County to develop and implement
a pilot program to increase competitive
employment opportunities for transition-age
youth ages 18 to 21.

(2) The competitive employment for
transition-age youth pilot program shall
include career guidance components, including
health and life skills, to encourage, train, and
assist transition-age youth in job-seeking
skills, workplace orientation, and job site
knowledge.

(3) In operating the pilot program, Anoka
County shall collaborate with schools,
disability providers, jobs and training
organizations, vocational rehabilitation
providers, and employers to build upon
opportunities and services, to prepare
transition-age youth for competitive
employment, and to enhance employer
connections that lead to employment for the
individuals served.

(4) Grant funds may be used to create an
on-the-job training incentive to encourage
employers to hire and train qualifying
individuals. A participating employer may
receive up to 50 percent of the wages paid to
the employee as a cost reimbursement for
on-the-job training provided.

(ii) $500,000 each year is from the workforce
development fund for rural career counseling
coordinator positions in the workforce service
areas and for the purposes specified in
Minnesota Statutes, section 116L.667. The
commissioner of employment and economic
development, in consultation with local
workforce investment boards and local elected
officials in each of the service areas receiving
funds, shall develop a method of distributing
funds to provide equitable services across
workforce service areas.

(jj) In calendar year 2017, the public utility
subject to Minnesota Statutes, section
116C.779, must withhold $1,000,000 from the
funds required to fulfill its financial
commitments under Minnesota Statutes,
section 116C.779, subdivision 1, and pay such
amounts to the commissioner of employment
and economic development for deposit in the
Minnesota 21st century fund under Minnesota
Statutes, section 116J.423.

(kk) $350,000 in fiscal year 2018 is for a grant
to AccessAbility Incorporated to provide job
skills training to individuals who have been
released from incarceration for a felony-level
offense and are no more than 12 months from
the date of release. AccessAbility Incorporated
shall annually report to the commissioner on
how the money was spent and the results
achieved. The report must include, at a
minimum, information and data about the
number of participants; participant
homelessness, employment, recidivism, and
child support compliance; and training
provided to program participants.

Subd. 4.

General Support Services

$
4,170,000
$
4,654,000
Appropriations by Fund
General Fund
$4,135,000
$4,606,000
Workforce
Development
$35,000
$48,000

(a) $250,000 each year is for the publication,
dissemination, and use of labor market
information under Minnesota Statutes, section
116J.401.

(b) $1,269,000 each year is for transfer to the
Minnesota Housing Finance Agency for
operating the Olmstead Compliance Office.

(c) $500,000 each year is for a statewide
capacity-building grant program. The
commissioner of employment and economic
development shall, through a request for
proposal process, select a nonprofit
organization to administer the
capacity-building grant program. The selected
organization must have demonstrated
experience in providing financial and technical
assistance to nonprofit organizations statewide.
The selected organization shall provide
financial assistance in the form of subgrants
and technical assistance to small to
medium-sized nonprofit organizations
offering, or seeking to offer, workforce or
economic development programming that
addresses economic disparities in underserved
cultural communities. This assistance can be
provided in-house or in partnership with other
organizations depending on need. The
nonprofit organization selected to administer
the grant program shall report to the
commissioner by February 1 each year
regarding assistance provided, including the
demographic and geographic distribution of
the grant awards, services, and outcomes. By
April 1 each year, the commissioner shall
report the information submitted by the
nonprofit to the legislative committees having
jurisdiction over economic development
issues. Of this amount, one percent is for the
commissioner to conduct the request for
proposal process and monitor the selected
organization. The nonprofit selected to
administer the grant program may use up to
five percent of the grant funds for
administration costs and providing technical
assistance to potential subgrantees.

(d) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.

Subd. 5.

Minnesota Trade Office

$
2,292,000
$
2,292,000

(a) $300,000 each year is for the STEP grants
in Minnesota Statutes, section 116J.979.

(b) $180,000 each year is for the Invest
Minnesota marketing initiative in Minnesota
Statutes, section 116J.9781.

(c) $270,000 each year is for the Minnesota
Trade Offices under Minnesota Statutes,
section 116J.978.

(d) $50,000 each year is for the Trade Policy
Advisory Council under Minnesota Statutes,
section 116J.9661.

Subd. 6.

Vocational Rehabilitation

$
34,691,000
$
34,691,000
Appropriations by Fund
General
$26,861,000
$26,861,000
Workforce
Development
$7,830,000
$7,830,000

(a) $14,300,000 each year is for the state's
vocational rehabilitation program under
Minnesota Statutes, chapter 268A. In fiscal
year 2020 and beyond, the base amount is
$10,800,000.

(b) $3,011,000 each year is for grants to
centers for independent living under
Minnesota Statutes, section 268A.11.

(c) $6,995,000 each year is from the general
fund and $6,830,000 each year is from the
workforce development fund for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15. Of the general fund amount
appropriated, $1,000,000 each year is for rate
increases to providers of extended employment
services for persons with severe disabilities
under Minnesota Statutes, section 268A.15.
In fiscal year 2020 and beyond, the general
fund base amount is $8,995,000. Of the base
amounts in fiscal years 2020 and 2021,
$2,000,000 in fiscal year 2020 and $2,000,000
in fiscal year 2021 are for rate increases to
providers of extended employment services
for persons with severe disabilities under
Minnesota Statutes, section 268A.15.

(d) $2,555,000 each year is for grants to
programs that provide employment support
services to persons with mental illness under
Minnesota Statutes, sections 268A.13 and
268A.14.

(e) $1,000,000 each year is from the workforce
development fund for grants under Minnesota
Statutes, section 268A.16, for employment
services for persons, including transition-age
youth, who are deaf, deafblind, or
hard-of-hearing. If the amount in the first year
is insufficient, the amount in the second year
is available in the first year.

Subd. 7.

Services for the Blind

$
6,425,000
$
6,425,000

Of this amount, $500,000 each year is for
senior citizens who are becoming blind. At
least half of the funds for this purpose must
be used to provide training services for seniors
who are becoming blind. Training services
must provide independent living skills to
seniors who are becoming blind to allow them
to continue to live independently in their
homes.

Subd. 8.

Broadband Development

$
20,250,000
$
250,000

(a) $20,000,000 in fiscal year 2018 is for
deposit in the border-to-border broadband fund
account in the special revenue fund established
under Minnesota Statutes, section 116J.396.

(b) $250,000 each year is for the Broadband
Development Office.

Subd. 9.

Reporting

(a) An entity receiving a direct appropriation
in this article that received a direct
appropriation in Laws 2016, chapter 189,
article 12, is subject to the requirements for
grants to individually specified recipients
under Laws 2016, chapter 189, article 12,
section 11.

(b) Any recipient of a direct appropriation
from the workforce development fund for
adult workforce-related programs under
subdivision 3 not subject to the requirements
of paragraph (a) is subject to the reporting
requirements under Minnesota Statutes,
section 116L.98.

Sec. 3. HOUSING FINANCE AGENCY

Subdivision 1.

Total Appropriation

$
54,798,000
$
52,798,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Unless otherwise specified, this appropriation
is for transfer to the housing development fund
for the programs specified in this section.
Except as otherwise indicated, this transfer is
part of the agency's permanent budget base.

Subd. 2.

Challenge Program

14,925,000
14,925,000

(a)(1) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
The agency must continue to strengthen its
efforts to address the disparity rate between
white households and indigenous American
Indians and communities of color. Of this
amount, $1,208,000 each year shall be made
available during the first 11 months of the
fiscal year exclusively for housing projects
for American Indians. Any funds not
committed to housing projects for American
Indians in the first 11 months of each fiscal
year shall be available for any eligible activity
under Minnesota Statutes, section 462A.33.

(2) The appropriation may be used to finance
the construction or replacement of real
property that is located in Melrose affected by
the fire on September 8, 2016.

(3) The commissioner may allocate a portion
of the appropriation for the economic
development and housing challenge program
for assistance in the area included in DR-4290,
as provided in Minnesota Statutes, section
12A.09. The maximum loan amount per
housing structure is $20,000. Within the limits
of available appropriations, the agency may
increase the maximum amount if the cost of
repair or replacement of the residential
property exceeds the total of the maximum
loan amount and any assistance available from
FEMA, other federal government agencies,
including the Small Business Administration,
and private insurance and flood insurance
benefits.

(b) $2,000,000 each year is for the purposes
of the workforce housing development
program under Minnesota Statutes, section
462A.39. The commissioner of housing
finance may hire staff sufficient for the
purposes of this paragraph.

Subd. 3.

Housing Trust Fund

13,396,000
11,646,000

(a) This appropriation is for deposit in the
housing fund account created under Minnesota
Statutes, section 462A.201, and may be used
for the purposes provided in that section.

(b) $1,750,000 in fiscal year 2018 is for the
rental assistance to highly mobile students
program under Minnesota Statutes, section
462A.201, subdivision 2, paragraph (a), clause
(4).

Subd. 4.

Rental Assistance for Mentally Ill

4,088,000
4,088,000

This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness, under Minnesota Statutes,
section 462A.2097. Among comparable
proposals, the agency shall prioritize those
proposals that target, in part, eligible persons
who desire to move to more integrated,
community-based settings.

Subd. 5.

Family Homeless Prevention

8,769,000
8,519,000

(a) This appropriation is for the family
homeless prevention and assistance programs
under Minnesota Statutes, section 462A.204.

(b) $250,000 in fiscal year 2018 is for grants
to programs under Minnesota Statutes, section
462A.204, subdivision 8.

Subd. 6.

Home Ownership Assistance Fund

885,000
885,000

This appropriation is for the home ownership
assistance program under Minnesota Statutes,
section 462A.21, subdivision 8. The agency
shall continue to strengthen its efforts to
address the disparity gap in the
homeownership rate between white
households and indigenous American Indians
and communities of color.

Subd. 7.

Affordable Rental Investment Fund

4,218,000
4,218,000

(a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and for
making equity take-out loans under Minnesota
Statutes, section 462A.05, subdivision 39.

(b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted. The owner must
also enter into an agreement that gives local
units of government, housing and
redevelopment authorities, and nonprofit
housing organizations the right of first refusal
if the rental property is offered for sale.
Priority must be given among comparable
federally assisted rental properties to
properties with the longest remaining term
under an agreement for federal assistance.
Priority must also be given among comparable
rental housing developments to developments
that are or will be owned by local government
units, a housing and redevelopment authority,
or a nonprofit housing organization.

(c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties. For purposes of this subdivision,
"supportive housing" means affordable rental
housing with links to services necessary for
individuals, youth, and families with children
to maintain housing stability.

Subd. 8.

Housing Rehabilitation

6,515,000
6,515,000

This appropriation is for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14. Of
this amount, $2,772,000 each year is for the
rehabilitation of owner-occupied housing,
$3,743,000 each year is for the rehabilitation
of eligible rental housing. In administering a
rehabilitation program for rental housing, the
agency may apply the processes and priorities
adopted for administration of the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.

Subd. 9.

Homeownership Education, Counseling,
and Training

857,000
857,000

This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
Priority may be given to funding programs
that are aimed at culturally specific groups
who are providing services to members of their
communities.

Subd. 10.

Capacity Building Grants

645,000
645,000

This appropriation is for nonprofit capacity
building grants under Minnesota Statutes,
section 462A.21, subdivision 3b. Of this
amount, $125,000 each year is for support of
the Homeless Management Information
System (HMIS).

Subd. 11.

Build Wealth MN

500,000
500,000

This appropriation is for grants to Build
Wealth MN to provide a family stabilization
plan program including program outreach,
financial literacy education, and budget and
debt counseling.

Sec. 4. DEPARTMENT OF LABOR AND
INDUSTRY

Subdivision 1.

Total Appropriation

$
28,820,000
$
29,143,000
Appropriations by Fund
2018
2019
General
1,776,000
1,790,000
Workers'
Compensation
24,975,000
24,975,000
Workforce
Development
2,069,000
2,378,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.

Workers' Compensation

14,782,000
14,782,000

(a) This appropriation is from the workers'
compensation fund.

(b)(1) $3,000,000 each year is for workers'
compensation system upgrades. This amount
is available until June 30, 2021. This is a
onetime appropriation.

(2) This appropriation includes funds for
information technology project services and
support subject to the provisions of Minnesota
Statutes, section 16E.0466. Any ongoing
information technology costs must be
incorporated into the service level agreement
and must be paid to the Office of MN.IT
Services by the commissioner of labor and
industry under the rates and mechanism
specified in that agreement.

Subd. 3.

Labor Standards and Apprenticeship

3,645,000
3,668,000
Appropriations by Fund
General
1,776,000
1,790,000
Workforce
Development
1,869,000
1,878,000

(a) $500,000 each year is from the general
fund for wage theft prevention under the
division of labor standards.

(b) $100,000 each year is from the workforce
development fund for labor education and
advancement program grants under Minnesota
Statutes, section 178.11, to expand and
promote registered apprenticeship training for
minorities and women.

(c) $300,000 each year is from the workforce
development fund for the PIPELINE program.

(d) $200,000 each year is from the workforce
development fund for grants to the
Construction Careers Foundation for the
Helmets to Hardhats Minnesota initiative.
Grant funds must be used to recruit, retain,
assist, and support National Guard, reserve,
and active duty military members' and
veterans' participation into apprenticeship
programs registered with the Department of
Labor and Industry and connect them with
career training and employment in the building
and construction industry. The recruitment,
selection, employment, and training must be
without discrimination due to race, color,
creed, religion, national origin, sex, sexual
orientation, marital status, physical or mental
disability, receipt of public assistance, or age.
This is a onetime appropriation.

(e) $1,029,000 each year is from the workforce
development fund for the apprenticeship
program under Minnesota Statutes, chapter
178.

(f) $150,000 each year is from the workforce
development fund for prevailing wage
enforcement.

Subd. 4.

Workplace Safety

4,154,000
4,154,000

This appropriation is from the workers'
compensation fund.

Subd. 5.

General Support

6,239,000
6,539,000
Appropriations by Fund
Workforce
Development Fund
200,000
500,000
Workers'
Compensation
6,039,000
6,039,000

(a) Except as provided in paragraphs (b) and
(c), this appropriation is from the workers'
compensation fund.

(b) $200,000 in fiscal year 2018 is from the
workforce development fund for the
commissioner of labor and industry to convene
and collaborate with stakeholders as provided
under Minnesota Statutes, section 175.46,
subdivision 3, and to develop youth skills
training competencies for approved
occupations. This is a onetime appropriation.

(c) $500,000 in fiscal year 2019 is from the
workforce development fund to administer the
youth skills training program under Minnesota
Statutes, section 175.46. The commissioner
shall award up to five grants each year to local
partnerships located throughout the state, not
to exceed $100,000 per local partnership grant.
The commissioner may use a portion of this
appropriation for administration of the grant
program. The base amount for this program
is $500,000 each year beginning in fiscal year
2020.

Sec. 5. BUREAU OF MEDIATION SERVICES

$
2,446,000
$
2,522,000

(a) $394,000 each year is for the Office of
Collaboration and Dispute Resolution under
Minnesota Statutes, section 179.90. Of this
amount, $160,000 each year is for grants under
Minnesota Statutes, section 179.91.

(b) $68,000 each year is from the general fund
for grants to area labor management
committees. Grants may be awarded for a
12-month period beginning July 1 each year.
Any unencumbered balance remaining at the
end of the first year does not cancel but is
available for the second year.

(c) $125,000 each year is for purposes of the
Public Employment Relations Board under
Minnesota Statutes, section 179A.041.

Sec. 6. WORKERS' COMPENSATION COURT
OF APPEALS

$
1,913,000
$
1,913,000

This appropriation is from the workers'
compensation fund.

Sec. 7. DEPARTMENT OF COMMERCE

Subdivision 1.

Total Appropriation

$
27,485,000
$
27,165,000
Appropriations by Fund
General
23,472,000
23,152,000
Special Revenue
2,210,000
2,210,000
Petroleum Tank
1,052,000
1,052,000
Workers'
Compensation
751,000
751,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.

Financial Institutions

920,000
820,000

(a) $400,000 each year is for grants to Prepare
and Prosper for purposes of developing,
marketing, evaluating, and distributing a
financial services inclusion program that will
assist low-income and financially underserved
populations build savings, strengthen credit,
and provide services to assist them in being
more financially stable and secure. Grants in
fiscal year 2018 must be matched by nonstate
contributions. Money remaining after the first
year is available for the second year.

(b) $100,000 in fiscal year 2018 is for a grant
to Exodus Lending to assist individuals in
reaching financial stability and resolving
payday loans. this appropriation is available
until June 30, 2020.

Subd. 3.

Petroleum Tank Release Compensation
Board

1,052,000
1,052,000

This appropriation is from the petroleum tank
fund.

Subd. 4.

Administrative Services

7,386,000
7,386,000

(a) $384,000 each year is for additional
compliance efforts with unclaimed property.
The commissioner may issue contracts for
these services.

(b) $100,000 each year is for the support of
broadband development.

(c) $33,000 each year is for rulemaking and
administration under Minnesota Statutes,
section 80A.461.

Subd. 5.

Telecommunications

2,619,000
2,619,000
Appropriations by Fund
General
1,009,000
1,009,000
Special Revenue
1,610,000
1,610,000

$1,610,000 each year is from the
telecommunication access Minnesota fund
account in the special revenue fund for the
following transfers. This appropriation is
added to the department's base.

(1) $1,170,000 each year is to the
commissioner of human services to
supplement the ongoing operational expenses
of the Commission of Deaf, DeafBlind, and
Hard-of-Hearing Minnesotans;

(2) $290,000 each year is to the chief
information officer for the purpose of
coordinating technology accessibility and
usability;

(3) $100,000 each year is to the Legislative
Coordinating Commission for captioning of
legislative coverage. This transfer is subject
to Minnesota Statutes, section 16A.281; and

(4) $50,000 each year is to the Office of
MN.IT Services for a consolidated access fund
to provide grants to other state agencies related
to accessibility of their Web-based services.

Subd. 6.

Enforcement

5,672,000
5,472,000
Appropriations by Fund
General
5,474,000
5,274,000
Workers'
Compensation
198,000
198,000

(a) $279,000 each year is for health care
enforcement.

(b)(1) $200,000 in fiscal year 2018 is to create
and execute a statewide education and
outreach campaign to protect seniors, meaning
those 60 years of age or older, vulnerable
adults, as defined in Minnesota Statutes,
section 626.5572, subdivision 21, and their
caregivers from financial fraud and
exploitation.

(2) The education and outreach campaign must
be statewide, and must include, but is not
limited to, the dissemination of information
through television, print, or other media,
training and outreach to senior living facilities,
and the creation of a senior fraud toolkit.

(3) The commissioner of commerce shall
report by January 15, 2018, to the chairs and
ranking minority members of the committees
of the house of representatives and senate
having jurisdiction over commerce issues
regarding the results of the statewide education
and outreach campaign, and recommendations
for supporting ongoing efforts to prevent
financial fraud from occurring to, and the
financial exploitation of, seniors, vulnerable
adults, and their caregivers.

(c) The revenue transferred in Minnesota
Statutes, section 297I.11, subdivision 2, to the
insurance fraud prevention account must be
used in part for compensation for two new
employees in the Commerce Fraud Bureau to
perform analytical duties. The new employees
must not be peace officers.

Subd. 7.

Energy Resources

4,847,000
4,847,000
Appropriations by Fund
General
4,247,000
4,247,000
Special Revenue
600,000
600,000

(a) $150,000 each year is to remediate
vermiculate insulation from households that
are eligible for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.

(b) $832,000 each year is for energy regulation
and planning unit staff.

(c) $100,000 each year is from the renewable
development account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, to administer the
"Made in Minnesota" solar energy production
incentive program in Minnesota Statutes,
section 216C.417. Any remaining unspent
funds cancel back to the renewable
development account at the end of the
biennium.

(d) $500,000 each year is from the renewable
development account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for costs associated
with any third-party expert evaluation of a
proposal submitted in response to a request
for proposal to the renewable development
advisory group under Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(l). No portion of this appropriation may be
expended or retained by the commissioner of
commerce. Any funds appropriated under this
paragraph that are unexpended at the end of a
fiscal year cancel to the renewable
development account.

Subd. 8.

Insurance

4,989,000
4,969,000
Appropriations by Fund
General
4,436,000
4,416,000
Workers'
Compensation
553,000
553,000

(a) $642,000 each year is for health insurance
rate review staffing.

(b) $412,000 each year is for actuarial work
to prepare for implementation of
principle-based reserves.

(c) $20,000 in fiscal year 2018 is for payment
of two years of membership dues for
Minnesota to the National Conference of
Insurance Legislators. This is a onetime
appropriation.

Sec. 8. PUBLIC UTILITIES COMMISSION

$
7,465,000
$
7,465,000

$21,000 each year is for the purposes of
Minnesota Statutes, section 237.045.

Sec. 9. PUBLIC FACILITIES AUTHORITY

$
1,800,000
$
-0-

(a) $300,000 in fiscal year 2018 is for a grant
to the city of New Trier to replace water
infrastructure under Hogan Avenue, including
related road reconstruction, and to acquire land
for predesign, design, and construction of a
storm water pond that will be colocated with
the pond of the new subdivision. This
appropriation does not require a nonstate
contribution.

(b) $600,000 in fiscal year 2018 is for a grant
to the Ramsey/Washington Recycling and
Energy Board to design, construct, and equip
capital improvements to the
Ramsey/Washington Recycling and Energy
Center in Newport.

(c) $900,000 in fiscal year 2018 is for a grant
to the Clear Lake-Clearwater Sewer Authority
to remove and replace the existing wastewater
treatment facility. This project is intended to
prevent the discharge of phosphorus into the
Mississippi River. This appropriation is not
available until the commissioner of
management and budget determines that at
least $200,000 is committed to the project
from nonstate sources and the authority has
applied for at least two grants to offset the
cost. An amount equal to any grant money
received by the authority must be returned to
the general fund.

ARTICLE 2

LABOR AND INDUSTRY

Section 1.

Minnesota Statutes 2016, section 175.45, is amended to read:


175.45 COMPETENCY STANDARDS FOR DUAL TRAINING.

Subdivision 1.

Duties; goal.

The commissioner of labor and industry shall convene
industry representatives,
identify occupational competency standards for dual training , and
provide technical assistance to develop dual-training programs
. The goal of dual training
is to provide employees of an employer with training to acquire competencies that the
employer requires.
The competency standards shall be identified for employment in
occupations in advanced manufacturing, health care services, information technology, and
agriculture. Competency standards are not rules and are exempt from the rulemaking
provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do
not apply.

Subd. 2.

Definition; competency standards Definitions.

For purposes of this section,
the following terms have the meanings given them:

(1) "competency standards" means the specific knowledge and skills necessary for a
particular occupation. ; and

(2) "dual-training program" means an employment-based earn-as-you-learn program
where the trainee is employed by a participating employer and receives structured on-the-job
training and technical instruction in accordance with the competency standards.

Subd. 3.

Competency standards identification process.

In identifying competency
standards, the commissioner shall consult with the commissioner of the Office of Higher
Education and the commissioner of employment and economic development and convene
recognized industry experts, representative employers, higher education institutions,
representatives of the disabled community, and representatives of labor to assist in identifying
credible competency standards. Competency standards must be consistent with, to the extent
available and practical, recognized international and national standards.

Subd. 4.

Duties.

The commissioner shall:

(1) convene industry representatives to identify, develop, and implement dual-training
programs;

(2) identify competency standards for entry level entry-level and higher skill levels;

(2) (3) verify the competency standards and skill levels and their transferability by subject
matter expert representatives of each respective industry;

(3) (4) develop models for Minnesota educational institutions to engage in providing
education and training to meet the competency standards established;

(4) (5) encourage participation by employers and labor in the competency standard
identification process for occupations in their industry; and

(5) (6) align dual training competency standards dual-training programs with other
workforce initiatives. ; and

(7) provide technical assistance to develop dual-training programs.

Subd. 5.

Notification.

The commissioner must communicate identified competency
standards to the commissioner of the Office of Higher Education for the purpose of the dual
training
dual-training competency grant program under section 136A.246. The commissioner
of labor and industry shall maintain the competency standards on the department's Web
site.

Sec. 2.

[175.46] YOUTH SKILLS TRAINING PROGRAM.

Subdivision 1.

Program established; grants authorized.

The commissioner shall
approve youth skills training programs established for the purpose of providing work-based
skills training for student learners ages 16 and older. The commissioner shall award grants
to local partnerships for the implementation and coordination of local youth skills training
programs as provided in this section.

Subd. 2.

Definitions.

(a) For purposes of this section, the terms in this subdivision have
the meanings given.

(b) "School district" means a school district or charter school.

(c) "Local partnership" means a school district, nonpublic school, intermediate school
district, or postsecondary institution, in partnership with other school districts, nonpublic
schools, intermediate school districts, postsecondary institutions, workforce development
authorities, economic development authorities, nonprofit organizations, labor unions, or
individuals who have an agreement with one or more local employers to be responsible for
implementing and coordinating a local youth skills training program.

(d) "Student learner" means a student who is both enrolled in a course of study at a public
or nonpublic school to obtain related instruction for academic credit and is employed under
a written agreement to obtain on-the-job skills training under a youth skills training program
approved under this section.

(e) "Commissioner" means the commissioner of labor and industry.

Subd. 3.

Duties.

(a) The commissioner shall:

(1) approve youth skills training programs in high-growth, high-demand occupations
that provide:

(i) that the work of the student learner in the occupations declared particularly hazardous
shall be incidental to the training;

(ii) that the work shall be intermittent and for short periods of time, and under the direct
and close supervision of a qualified and experienced person;

(iii) that safety instruction shall be provided to the student learner and may be given by
the school and correlated by the employer with on-the-job training;

(iv) a schedule of organized and progressive work processes to be performed on the job;

(v) a schedule of wage rates in compliance with section 177.24; and

(vi) whether the student learner will obtain secondary school academic credit,
postsecondary credit, or both, for the training program;

(2) approve occupations and maintain a list of approved occupations for programs under
this section;

(3) issue requests for proposals for grants;

(4) work with individuals representing industry and labor to develop new youth skills
training programs;

(5) develop model program guides;

(6) monitor youth skills training programs;

(7) provide technical assistance to local partnership grantees;

(8) work with providers to identify paths for receiving postsecondary credit for
participation in the youth skills training program; and

(9) approve other activities as necessary to implement the program.

(b) The commissioner shall collaborate with stakeholders, including, but not limited to,
representatives of secondary school institutions, career and technical education instructors,
postsecondary institutions, businesses, and labor, in developing youth skills training
programs, and identifying and approving occupations and competencies for youth skills
training programs.

Subd. 4.

Training agreement.

Each student learner shall sign a written training agreement
on a form prescribed by the commissioner. Each agreement shall contain the name of the
student learner, and be signed by the employer, the school coordinator or administrator, and
the student learner, or if the student learner is a minor, by the student's parent or legal
guardian. Copies of each agreement shall be kept on file by both the school and the employer.

Subd. 5.

Program approval.

The commissioner may grant exemptions from the
provisions of chapter 181A for student learners participating in youth skills training programs
approved by the commissioner under this section. The approval of a youth skills training
program will be reviewed annually. The approval of a youth skills training program may
be revoked at any time if the commissioner finds that:

(1) all provisions of subdivision 3 have not been met in the previous year; or

(2) reasonable precautions have not been observed for the safety of minors.

The commissioner shall maintain and annually update a list of occupations and tasks suitable
for student learners in compliance with federal law.

Subd. 6.

Interactions with education finance.

(a) For the purpose of computing state
aids for the enrolling school district, the hours a student learner participates in a youth skills
training program under this section must be counted in the student's hours of average daily
membership under section 126C.05.

(b) Educational expenses for a participating student learner must be included in the
enrolling district's career and technical revenue as provided under section 124D.4531.

Subd. 7.

Academic credit.

A school district may grant academic credit to student learners
participating in youth skills training programs under this section in accordance with local
requirements.

Subd. 8.

Postsecondary credit.

A postsecondary institution may award postsecondary
credit to a student learner who successfully completes a youth skills training program.

Subd. 9.

Work-based learning program.

A youth skills training program shall qualify
as a work-based learning program if it meets requirements for a career and technical education
program and is supervised by a qualified teacher with appropriate licensure for a work-based
learning teacher-coordinator.

Subd. 10.

School coordinator.

Unless otherwise required for a work-based learning
program, a youth skills training program may be supervised by a qualified teacher or by an
administrator as determined by the school district.

Subd. 11.

Other apprenticeship programs.

(a) This section shall not affect programs
under section 124D.47.

(b) A registered apprenticeship program governed by chapter 178 may grant credit
toward the completion of a registered apprenticeship for the successful completion of a
youth skills training program under this section.

Subd. 12.

Grant applications.

(a) Applications for grants must be made to the
commissioner on a form provided by the commissioner.

(b) A local partnership may apply for a grant and shall include in its grant application:

(1) the identity of each school district, public agency, nonprofit organization, or individual
who is a participant in the local partnership;

(2) the identity of each employer who is a participant in the local partnership and the
amount of matching funds provided by each employer, if any;

(3) a plan to accomplish the implementation and coordination of activities specified in
this subdivision; and

(4) the identity of a fiscal agent responsible for receiving, managing, and accounting for
the grant.

Subd. 13.

Grant awards.

(a) A local partnership awarded a grant under this section
must use the grant award for any of the following implementation and coordination activities:

(1) recruiting additional employers to provide on-the-job training and supervision for
student learners and providing technical assistance to those employers;

(2) recruiting students to participate in the local youth skills training program, monitoring
the progress of student learners participating in the program, and monitoring program
outcomes;

(3) coordinating youth skills training activities within participating school districts and
among participating school districts, postsecondary institutions, and employers;

(4) coordinating academic, vocational and occupational learning, school-based and
work-based learning, and secondary and postsecondary education for participants in the
local youth skills training program;

(5) coordinating transportation for student learners participating in the local youth skills
training program; and

(6) any other implementation or coordination activity that the commissioner may direct
or permit the local partnership to perform.

(b) Grant awards may not be used to directly or indirectly pay the wages of a student
learner.

Subd. 14.

Outcomes.

The following outcomes are expected of a local youth skills training
program:

(1) at least 80 percent of the student learners who participate in a youth skills training
program receive a high school diploma when eligible upon completion of the training
program; and

(2) at least 60 percent of the student learners who participate in a youth skills training
program receive a recognized credential upon completion of the training program.

Subd. 15.

Reporting.

(a) By February 1, 2019, and annually thereafter, the commissioner
shall report on the activity and outcomes of the program for the preceding fiscal year to the
chairs of the legislative committees with jurisdiction over jobs and economic growth policy
and finance. At a minimum, the report must include:

(1) the number of student learners who commenced the training program and the number
who completed the training program; and

(2) recommendations, if any, for changes to the program.

(b) The initial report shall include a detailed description of the differences between the
state and federal systems in child safety standards.

Sec. 3.

Minnesota Statutes 2016, section 326B.092, subdivision 7, is amended to read:


Subd. 7.

License fees and license renewal fees.

(a) The license fee for each license is
the base license fee plus any applicable board fee, continuing education fee, and contractor
recovery fund fee and additional assessment, as set forth in this subdivision.

(b) For purposes of this section, "license duration" means the number of years for which
the license is issued except that if the initial license is not issued for a whole number of
years, the license duration shall be rounded up to the next whole number.

(c) The base license fee shall depend on whether the license is classified as an entry
level, master, journeyman, or business license, and on the license duration. The base license
fee shall be:

License Classification
License Duration
1 year
2 years
Entry level
$10
$20
Journeyworker
$20
$40
Master
$40
$80
Business
$180

(d) If there is a continuing education requirement for renewal of the license, then a
continuing education fee must be included in the renewal license fee. The continuing
education fee for all license classifications shall be: $10 if the renewal license duration is
one year; and $20 if the renewal license duration is two years.

(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925,
then a board fee must be included in the license fee and the renewal license fee. The board
fee for all license classifications shall be: $4 if the license duration is one year; and $8 if
the license duration is two years.

(f) If the application is for the renewal of a license issued under sections 326B.802 to
326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision
3, and any additional assessment required under section 326B.89, subdivision 16, must be
included in the license renewal fee.

(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period
July 1, 2015 2017, through June 30, 2017 September 30, 2021, the following fees apply:

License Classification
License Duration
1 year
2 years
Entry level
$10
$20
Journeyworker
$15
$35
$30
Master
$30
$75
$60
Business
$160
$120

If there is a continuing education requirement for renewal of the license, then a continuing
education fee must be included in the renewal license fee. The continuing education fee for
all license classifications shall be $5.

Sec. 4.

[326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO
CODE.

Subdivision 1.

Definition.

For purposes of this section, "place of public accommodation"
means a publicly or privately owned facility that is designed for occupancy by 200 or more
people and includes a sports or entertainment arena, stadium, theater, community or
convention hall, special event center, indoor amusement facility or water park, or swimming
pool.

Subd. 2.

Application.

Construction, additions, and alterations to a place of public
accommodation must be designed and constructed to comply with the State Building Code.

Subd. 3.

Enforcement.

In a municipality that has not adopted the code by ordinance
under section 326B.121, subdivision 2, the commissioner shall enforce this section in
accordance with section 326B.107, subdivision 1.

Subd. 4.

Fire protection systems.

If fire protection systems regulated by chapter 299M
are required in a place of public accommodation, then those plan reviews and inspections
shall be conducted by the state fire marshal.

Sec. 5.

Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:


Subdivision 1.

Building permits.

(a) Fees for building permits submitted as required
in section 326B.106 326B.107 include:

(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality;
and

(2) the surcharge required by section 326B.148.

(b) The total valuation and fee schedule is:

(1) $1 to $500, $29.50 $21;

(2) $501 to $2,000, $28 $21 for the first $500 plus $3.70 $2.75 for each additional $100
or fraction thereof, to and including $2,000;

(3) $2,001 to $25,000, $83.50 $62.25 for the first $2,000 plus $16.55 $12.50 for each
additional $1,000 or fraction thereof, to and including $25,000;

(4) $25,001 to $50,000, $464.15 $349.75 for the first $25,000 plus $12 $9 for each
additional $1,000 or fraction thereof, to and including $50,000;

(5) $50,001 to $100,000, $764.15 $574.75 for the first $50,000 plus $8.45 $6.25 for
each additional $1,000 or fraction thereof, to and including $100,000;

(6) $100,001 to $500,000, $1,186.65 $887.25 for the first $100,000 plus $6.75 $5 for
each additional $1,000 or fraction thereof, to and including $500,000;

(7) $500,001 to $1,000,000, $3,886.65 $2,887.25 for the first $500,000 plus $5.50 $4.25
for each additional $1,000 or fraction thereof, to and including $1,000,000; and

(8) $1,000,001 and up, $6,636.65 $5,012.25 for the first $1,000,000 plus $4.50 $2.75
for each additional $1,000 or fraction thereof.

(c) Other inspections and fees are:

(1) inspections outside of normal business hours (minimum charge two hours), $63.25
per hour;

(2) reinspection fees, $63.25 per hour;

(3) inspections for which no fee is specifically indicated (minimum charge one-half
hour), $63.25 per hour; and

(4) additional plan review required by changes, additions, or revisions to approved plans
(minimum charge one-half hour), $63.25 per hour.

(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25,
then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment,
hourly wages, and fringe benefits of the employees involved.

EFFECTIVE DATE.

Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective
July 1, 2017, and the amendments to it expire October 1, 2021.

Sec. 6.

Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to
read:


Subd. 16.

Wind electric systems.

(a) The inspection fee for the installation of a wind
turbine is:

(1) zero watts to and including 100,000 watts, $80;

(2) 100,001 watts to and including 500,000 watts, $105;

(3) 500,001 watts to and including 1,000,000 watts, $120;

(4) 1,000,001 watts to and including 1,500,000 watts, $125;

(5) 1,500,001 watts to and including 2,000,000 watts, $130;

(6) 2,000,001 watts to and including 3,000,000 watts, $145; and

(7) 3,000,001 watts and larger, $160.

(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
current energy output of one individual wind turbine.

Sec. 7.

Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to
read:


Subd. 17.

Solar photovoltaic systems.

(a) The inspection fee for the installation of a
solar photovoltaic system is:

(1) zero watts to and including 5,000 watts, $60;

(2) 5,001 watts to and including 10,000 watts, $100;

(3) 10,001 watts to and including 20,000 watts, $150;

(4) 20,001 watts to and including 30,000 watts, $200;

(5) 30,001 watts to and including 40,000 watts, $250;

(6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional
10,000 watts over 40,000 watts;

(7) 1,000,001 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts
over 1,000,000 watts; and

(8) 5,000,001 watts and larger, $8,650, and $10 for each additional 10,000 watts over
5,000,000 watts.

(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
current energy output of the solar photovoltaic system.

Sec. 8.

Minnesota Statutes 2016, section 326B.435, subdivision 2, is amended to read:


Subd. 2.

Powers; duties; administrative support.

(a) The board shall have the power
to:

(1) elect its chair, vice-chair, and secretary;

(2) adopt bylaws that specify the duties of its officers, the meeting dates of the board,
and containing such other provisions as may be useful and necessary for the efficient conduct
of the business of the board;

(3) adopt the Plumbing Code that must be followed in this state and any Plumbing Code
amendments thereto. The Plumbing Code shall include the minimum standards described
in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board shall adopt the
Plumbing Code and any amendments thereto pursuant to chapter 14 and as provided in
subdivision 6, paragraphs (b), (c), and (d);

(4) review requests for final interpretations and issue final interpretations as provided
in section 326B.127, subdivision 5;

(5) adopt rules that regulate the licensure, certification, or registration of plumbing
contractors, journeymen, unlicensed individuals, master plumbers, restricted master plumbers,
restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders and
testers, water conditioning contractors, and water conditioning installers, and other persons
engaged in the design, installation, and alteration of plumbing systems or engaged in or
working at the business of water conditioning installation or service, or engaged in or
working at the business of medical gas system installation, maintenance, or repair, except
for those individuals licensed under section 326.02, subdivisions 2 and 3. The board shall
adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e)
and (f);

(6) adopt rules that regulate continuing education for individuals licensed as master
plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers,
registered unlicensed individuals, water conditioning contractors masters, and water
conditioning installers journeymen, and for individuals certified under sections 326B.437
and 326B.438. The board shall adopt these rules pursuant to chapter 14 and as provided in
subdivision 6, paragraphs (e) and (f);

(7) refer complaints or other communications to the commissioner, whether oral or
written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or
order that the commissioner has the authority to enforce pertaining to code compliance,
licensure, or an offering to perform or performance of unlicensed plumbing services;

(8) approve per diem and expenses deemed necessary for its members as provided in
subdivision 3;

(9) approve license reciprocity agreements;

(10) select from its members individuals to serve on any other state advisory council,
board, or committee; and

(11) recommend the fees for licenses, registrations, and certifications.

Except for the powers granted to the Plumbing Board, the Board of Electricity, and the
Board of High Pressure Piping Systems, the commissioner of labor and industry shall
administer and enforce the provisions of this chapter and any rules promulgated pursuant
thereto.

(b) The board shall comply with section 15.0597, subdivisions 2 and 4.

(c) The commissioner shall coordinate the board's rulemaking and recommendations
with the recommendations and rulemaking conducted by the other boards created pursuant
to this chapter. The commissioner shall provide staff support to the board. The support
includes professional, legal, technical, and clerical staff necessary to perform rulemaking
and other duties assigned to the board. The commissioner of labor and industry shall supply
necessary office space and supplies to assist the board in its duties.

Sec. 9.

Minnesota Statutes 2016, section 326B.50, subdivision 3, is amended to read:


Subd. 3.

Water conditioning installation.

"Water conditioning installation" means the
installation of appliances, appurtenances, and fixtures designed to treat water so as to alter,
modify, add or remove mineral, chemical or bacterial content, said installation to be made
in a water distribution system serving:

(1) a single family residential unit, which has been initially established by a licensed
plumber, and does not involve a direct connection without an air gap to a soil or waste pipe. ;
or

(2) a multifamily or nonresidential building, where the plumbing installation has been
initially established by a licensed plumber. Isolation valves shall be required for all water
conditioning installations and shall be readily accessible. Water conditioning installation
does not include:

(i) a valve that allows isolation of the water conditioning installation;

(ii) piping greater than two-inch nominal pipe size; or

(iii) a direct connection without an air gap to a soil or waste pipe.

Sec. 10.

Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision
to read:


Subd. 5.

Direct supervision.

"Direct supervision," with respect to direct supervision of
a registered unlicensed individual, means that:

(1) at all times while the registered unlicensed individual is performing water conditioning
installation work, a direct supervisor is present at the location where the registered unlicensed
individual is working;

(2) the direct supervisor is physically present and immediately available to the registered
unlicensed individual at all times for assistance and direction;

(3) any form of electronic supervision does not meet the requirement of being physically
present;

(4) the direct supervisor reviews the water conditioning installation work performed by
the registered unlicensed individual before the water conditioning installation is operated;
and

(5) the direct supervisor determines that all water conditioning installation work
performed by the registered unlicensed individual is performed in compliance with sections
326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code,
and all orders issued under section 326B.082.

Sec. 11.

Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision
to read:


Subd. 6.

Direct supervisor.

"Direct supervisor" means a master plumber, journeyman
plumber, restricted master plumber, restricted journeyman plumber, water conditioning
master, or water conditioning journeyman responsible for providing direct supervision of
a registered unlicensed individual.

Sec. 12.

Minnesota Statutes 2016, section 326B.55, subdivision 2, is amended to read:


Subd. 2.

Qualifications for licensing.

(a) A water conditioning master license shall be
issued only to an individual who has demonstrated skill in planning, superintending, and
servicing, and installing water conditioning installations, and has successfully passed the
examination for water conditioning masters. A water conditioning journeyman license shall
only be issued to an individual other than a water conditioning master who has demonstrated
practical knowledge of water conditioning installation, and has successfully passed the
examination for water conditioning journeymen. A water conditioning journeyman must
successfully pass the examination for water conditioning masters before being licensed as
a water conditioning master.

(b) Each water conditioning contractor must designate a responsible licensed master
plumber or a responsible licensed water conditioning master, who shall be responsible for
the performance of all water conditioning installation and servicing in accordance with the
requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to
326B.59, the Minnesota Plumbing Code, and all orders issued under section 326B.082. If
the water conditioning contractor is an individual or sole proprietorship, the responsible
licensed master must be the individual, proprietor, or managing employee. If the water
conditioning contractor is a partnership, the responsible licensed master must be a general
partner or managing employee. If the water conditioning contractor is a limited liability
company, the responsible licensed master must be a chief manager or managing employee.
If the water conditioning contractor is a corporation, the responsible licensed master must
be an officer or managing employee. If the responsible licensed master is a managing
employee, the responsible licensed master must be actively engaged in performing water
conditioning work on behalf of the water conditioning contractor and cannot be employed
in any capacity as a water conditioning master or water conditioning journeyman for any
other water conditioning contractor. An individual must not be the responsible licensed
master for more than one water conditioning contractor.

(c) All applications and renewals for water conditioning contractor licenses shall include
a verified statement that the applicant or licensee has complied with paragraph (b).

(d) Each application and renewal for a water conditioning master license, water
conditioning journeyman license, or a water conditioning contractor license shall be
accompanied by all fees required by section 326B.092.

Sec. 13.

Minnesota Statutes 2016, section 326B.55, subdivision 4, is amended to read:


Subd. 4.

Plumber's apprentices.

(a) A plumber's apprentice who is registered under
section 326B.47 is authorized to assist in water conditioning installation and water
conditioning servicing only while under the direct supervision of a master plumber,
journeyman plumber, restricted master plumber, restricted journeyman plumber, water
conditioning master, or water conditioning journeyman. The master or journeyman is
responsible for ensuring that all water conditioning work performed by the plumber's
apprentice complies with the plumbing code and rules adopted under sections 326B.50 to
326B.59. The supervising master or journeyman must be licensed and must be employed
by the same employer as the plumber's apprentice. Licensed individuals shall not permit
plumber's apprentices to perform water conditioning work except under the direct supervision
of an individual actually licensed to perform such work. Plumber's apprentices shall not
supervise the performance of plumbing work or make assignments of plumbing work to
unlicensed individuals.

(b) Water conditioning contractors employing plumber's apprentices to perform water
conditioning work shall maintain records establishing compliance with this subdivision that
shall identify all plumber's apprentices performing water conditioning work, and shall permit
the department to examine and copy all such records.

Sec. 14.

[326B.555] REGISTERED UNLICENSED INDIVIDUALS.

Subdivision 1.

Registration; supervision; records.

(a) All unlicensed individuals
engaged in water conditioning installation must be registered under subdivision 3.

(b) A registered unlicensed individual is authorized to assist in water conditioning
installations in a single family residential unit only when a master plumber, journeyman
plumber, restricted master plumber, restricted journeyman plumber, water conditioning
master, or water conditioning journeyman is available and responsible for ensuring that all
water conditioning installation work performed by the unlicensed individual complies with
the applicable provisions of the plumbing and water conditioning codes and rules adopted
pursuant to such codes. For all other water conditioning installation work, the registered
unlicensed individual must be under the direct supervision of a responsible licensed water
conditioning master.

(c) Water conditioning contractors employing registered unlicensed individuals to perform
water conditioning installation work shall maintain records establishing compliance with
this subdivision that shall identify all unlicensed individuals performing water conditioning
installations, and shall permit the department to examine and copy all such records.

Subd. 2.

Journeyman exam.

A registered unlicensed individual who has completed
875 hours of practical water conditioning installation, servicing, and training is eligible to
take the water conditioning journeyman examination. Up to 100 hours of practical water
conditioning installation and servicing experience prior to becoming a registered unlicensed
individual may be applied to the practical experience requirement. However, none of this
practical experience may be applied if the unlicensed individual did not have any practical
experience in the 12-month period immediately prior to becoming a registered unlicensed
individual.

Subd. 3.

Registration, renewals, and fees.

An unlicensed individual may register by
completing and submitting to the commissioner an application form provided by the
commissioner, with all fees required by section 326B.58. A completed application form
must state the date, the individual's age, schooling, previous experience and employer, and
other information required by the commissioner. The plumbing board may prescribe rules,
not inconsistent with this section, for the registration of unlicensed individuals. Applications
for initial registration may be submitted at any time. Registration must be renewed annually
and shall be for the period from July 1 of each year to June 30 of the following year.

Sec. 15.

Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "Gross annual receipts" means the total amount derived from residential contracting
or residential remodeling activities, regardless of where the activities are performed, and
must not be reduced by costs of goods sold, expenses, losses, or any other amount.

(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.

(d) "Residential real estate" means a new or existing building constructed for habitation
by one to four families, and includes detached garages intended for storage of vehicles
associated with the residential real estate
.

(e) "Fund" means the contractor recovery fund.

(f) "Owner" when used in connection with real property, means a person who has any
legal or equitable interest in real property and includes a condominium or townhome
association that owns common property located in a condominium building or townhome
building or an associated detached garage. Owner does not include any real estate developer
or any owner using, or intending to use, the property for a business purpose and not as
owner-occupied residential real estate.

Sec. 16.

Minnesota Statutes 2016, section 326B.89, subdivision 5, is amended to read:


Subd. 5.

Payment limitations.

The commissioner shall not pay compensation from the
fund to an owner or a lessee in an amount greater than $75,000 per licensee. The
commissioner shall not pay compensation from the fund to owners and lessees in an amount
that totals more than $150,000 $300,000 per licensee. The commissioner shall only pay
compensation from the fund for a final judgment that is based on a contract directly between
the licensee and the homeowner or lessee that was entered into prior to the cause of action
and that requires licensure as a residential building contractor or residential remodeler.

Sec. 17.

Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is
amended to read:


Subd. 2.

Workers' Compensation

15,226,000
17,782,000

This appropriation is from the workers'
compensation fund.

$4,000,000 in fiscal year 2016 and $6,000,000
in fiscal year 2017 are for workers'
compensation system upgrades and are
available through June 30, 2021
. The base
appropriation for this purpose is $3,000,000
in fiscal year 2018 and $3,000,000 in fiscal
year 2019. The base appropriation for fiscal
year 2020 and beyond is zero.

This appropriation includes funds for
information technology project services and
support subject to the provisions of Minnesota
Statutes, section 16E.0466. Any ongoing
information technology costs will be
incorporated into the service level agreement
and will be paid to the Office of MN.IT
Services by the commissioner of labor and
industry under the rates and mechanism
specified in that agreement.

Sec. 18.

Laws 2017, chapter 68, article 1, section 1, is amended to read:


Section 1.

Minnesota Statutes 2016, section 181A.04, subdivision 6, is amended to read:


Subd. 6.

Time of day, high school students.

A high school student must not be permitted
to work after 11:00 p.m. on an evening before a school day or before 5:00 a.m. on a school
day, except:

(1) as permitted by section 181A.07, subdivisions 1, 2, 3, and 4; or

(2) for this subdivision does not apply to a high school student age 18 or older, if unless
the student provides a written request for the hours restrictions to the employer to work
during the restricted hours.
at least two weeks before any restricted hours begin; or

(3) if a high school student under the age of 18 has supplied the employer with a note
signed by the parent or guardian of the student, the student may be permitted to work until
11:30 p.m. on the evening before a school day and beginning at 4:30 a.m. on a school day.

For the purpose of this subdivision, a high school student does not include a student
enrolled in an alternative education program approved by the commissioner of education
or an area learning center, including area learning centers under sections 123A.05 to 123A.08
or according to section 122A.163.

Sec. 19. REPEALER.

Minnesota Statutes 2016, section 326B.89, subdivision 14, is repealed.

ARTICLE 3

WORKERS' COMPENSATION ADVISORY COUNCIL; DEPARTMENT
PROPOSALS

Section 1.

Minnesota Statutes 2016, section 176.135, is amended by adding a subdivision
to read:


Subd. 9.

Designated contact person and required training related to submission
and payment of medical bills.

(a) For purposes of this subdivision:

(1) "clearinghouse" means a health care clearinghouse as defined in section 62J.51,
subdivision 11a, that receives or transmits workers' compensation electronic transactions
as described in section 62J.536;

(2) "department" means the Department of Labor and Industry;

(3) "hospital" means a hospital licensed in this state;

(4) "payer" means:

(i) a workers' compensation insurer;

(ii) an employer, or group of employers, authorized to self-insure for workers'
compensation liability; and

(iii) a third-party administrator licensed by the Department of Commerce under section
60A.23, subdivision 8, to pay or review workers' compensation medical bills under this
chapter; and

(5) "submission or payment of medical bills" includes the submission, transmission,
receipt, acceptance, response, adjustment, and payment of medical bills under this chapter.

(b) Effective November 1, 2017, each payer, hospital, and clearinghouse must provide
the department with the name and contact information of a designated employee to answer
inquiries related to the submission or payment of medical bills. Payers, hospitals, and
clearinghouses must provide the department with the name of a new designated employee
within 14 days after the previously designated employee is no longer employed or becomes
unavailable for more than 30 days. The name and contact information of the designated
employee must be provided on forms and at intervals prescribed by the department. The
department must post a directory of the designated employees on the department's Web site.

(c) The designated employee under paragraph (b) must:

(1) complete training, provided by the department, about submission or payment of
medical bills; and

(2) respond within 30 days to written department inquiries related to submission or
payment of medical bills.

The training requirement in clause (1) does not apply to a payer that has not received any
workers' compensation medical bills in the 12 months before the training becomes available.

(d) The commissioner may assess penalties, payable to the assigned risk safety account,
against payers, hospitals, and clearinghouses for violation of this subdivision as provided
in clauses (1) to (3):

(1) for failure to comply with the requirements in paragraph (b), the commissioner may
assess a penalty of $50 for each day of noncompliance after the department has provided
the noncompliant payer, clearinghouse, or hospital with a 30-day written warning;

(2) for failure of the designated employee to complete training under paragraph (c),
clause (1), within 90 days after the department has notified a payer, clearinghouse, or
hospital's designated employee that required training is available, the commissioner may
assess a penalty of $3,000;

(3) for failure to respond within 30 days to a department inquiry related to submission
or payment of medical bills under paragraph (c), clause (2), the commissioner may assess
a penalty of $3,000. The commissioner shall not assess a penalty under both this clause and
section 176.194, subdivision 3, clause (6), for failure to respond to the same department
inquiry.

EFFECTIVE DATE.

This section is effective October 1, 2017.

Sec. 2.

Minnesota Statutes 2016, section 176.1362, subdivision 1, is amended to read:


Subdivision 1.

Payment based on Medicare MS-DRG system.

(a) Except as provided
in subdivisions 2 and 3, the maximum reimbursement for inpatient hospital services, articles,
and supplies is 200 percent of the amount calculated for each hospital under the federal
Inpatient Prospective Payment System developed for Medicare, using the inpatient Medicare
PC-Pricer program for the applicable MS-DRG as provided in paragraph (b) this subdivision.
All adjustments included in the PC-Pricer program are included in the amount calculated,
including but not limited to any outlier payments.

(b) Payment under this section is effective for services, articles, and supplies provided
to patients discharged from the hospital on or after January 1, 2016. Payment for services,
articles, and supplies provided to patients discharged on January 1, 2016, through December
31, 2016, must be based on the Medicare PC-Pricer program in effect on January 1, 2016.

(c) For patients discharged on or after the effective date of this section, payment for
inpatient services, articles, and supplies for patients discharged in each calendar year
thereafter
must be based on calculated according to the PC-Pricer program in effect on
January 1 of the year of discharge
identified on Medicare's Web site as FY 2016.1, updated
on January 19, 2016
.

(d) For patients discharged on or after October 1, 2017, payment for inpatient services,
articles, and supplies must be calculated according to the PC-Pricer program posted on the
Department of Labor and Industry's Web site as follows:

(1) No later than October 1, 2017, and October 1 of each subsequent year, the
commissioner must post on the department's Web site the version of the PC-Pricer program
that is most recently available on Medicare's Web site as of the preceding July 1. If no
PC-Pricer program is available on the Medicare Web site on any July 1, the PC-Pricer
program most recently posted on the department's Web site remains in effect.

(2) The commissioner must publish notice of the applicable PC-Pricer program in the
State Register no later than October 1 of each year.

(e) The MS-DRG grouper software or program that corresponds to the applicable version
of the PC-Pricer program must be used to determine payment under this subdivision.

(c) (f) Hospitals must bill workers' compensation insurers using the same codes, formats,
and details that are required for billing for hospital inpatient services by the Medicare
program. The bill must be submitted to the insurer within the time period required by section
62Q.75, subdivision 3. For purposes of this section, "insurer" includes both workers'
compensation insurers and self-insured employers.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Minnesota Statutes 2016, section 176.1362, subdivision 2, is amended to read:


Subd. 2.

Payment for catastrophic, high-cost injuries.

(a) If the hospital's total usual
and customary charges for services, articles, and supplies for a patient's hospitalization
exceed a threshold of $175,000, annually adjusted as provided in paragraph (b),
reimbursement must not be based on the MS-DRG system, but must instead be paid at 75
percent of the hospital's usual and customary charges. The threshold amount in effect on
the date of discharge determines the applicability of this paragraph.

(b) Beginning On January 1, 2017, and each January 1 thereafter, the commissioner
must adjust the previous year's threshold by the percent change in average total charges per
inpatient case, using data available as of October 1 for non-Critical Access Hospitals from
the Health Care Cost Information System maintained by the Department of Health pursuant
to chapter 144. Beginning October 1, 2017, and each October 1 thereafter, the commissioner
must adjust the previous threshold using the data available as of the preceding July 1.
The
commissioner must annually publish notice of the updated threshold in the State Register.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Minnesota Statutes 2016, section 176.275, subdivision 1, is amended to read:


Subdivision 1.

Filing.

If a document is required to be filed by this chapter or any rules
adopted pursuant to authority granted by this chapter, the filing shall be completed by the
receipt of the document at the division, department, office, or the court of appeals. The
division, department, office, and the court of appeals shall accept any document which has
been delivered to it for legal filing, but may refuse to accept any form or document that
lacks the name of the injured employee, employer, or insurer, the date of injury, or the
injured employee's Social Security number
information required by statute or rule. The
division, department, office, and court of appeals are not required to maintain, and may
destroy, a duplicate of a form or document that has already been filed.
If a workers'
compensation identification number has been assigned by the department, it may be
substituted for the Social Security number on a form or document. If the injured employee
has fewer than three days of lost time from work, the party submitting the required document
must attach to it, at the time of filing, a copy of the first report of injury.

A notice or other document required to be served or filed at either the department, the
office, or the court of appeals which is inadvertently served or filed at the wrong one of
these agencies shall be deemed to have been served or filed with the proper agency. The
receiving agency shall note the date of receipt of a document and shall forward the documents
to the proper agency no later than two working days following receipt.

Sec. 5.

Minnesota Statutes 2016, section 176.285, is amended to read:


176.285 SERVICE OF PAPERS AND NOTICES; ELECTRONIC FILING.

Subdivision 1.

Service by mail.

Service of papers and notices shall be by mail or
otherwise as the commissioner or the chief administrative law judge may by rule direct.
Where service is by mail, service is effected at the time mailed if properly addressed and
stamped. If it is so mailed, it is presumed the paper or notice reached the party to be served.
However, a party may show by competent evidence that that party did not receive it or that
it had been delayed in transit for an unusual or unreasonable period of time. In case of
nonreceipt or delay, an allowance shall be made for the party's failure to assert a right within
the prescribed time.

Subd. 2.

Electronic service and filing.

(a) Where a statute or rule authorizes or requires
a document to be filed with or served on an agency, the document may be filed electronically
if electronic filing is authorized by the agency and if the document is transmitted in the
manner and in the format specified by the agency. If electronic filing of a document is
authorized by the agency and a statute or rule requires a copy of the document to be provided
or served on another person or party, the document filed electronically with the agency and
provided or served on the other person or party must contain the same information in the
format required by the commissioner.

(b) Where a statute or rule authorizes or requires a person's signature on a document to
be filed with or served on an agency, the signature may be an electronic signature, as defined
by section 325L.02, or
transmitted electronically, if authorized by the agency and if the
signature is transmitted in the manner and format specified by the agency. The commissioner
may require that a document authorized or required to be filed with the commissioner,
department, or division be filed electronically in the manner and format specified by the
commissioner, except that an employee must not be required to file a document electronically
unless the document is filed by an attorney on behalf of an employee. An agency may serve
a document electronically if the recipient agrees to receive it in an electronic format.
The
department or court may adopt rules for the certification of signatures.

(c) An agency may serve a document electronically on a payer, rehabilitation provider,
or attorney. An agency may serve a document on any other party if the recipient agrees to
receive it in an electronic format. The date of electronic service of a document is the date
the recipient is sent a document electronically, or the date the recipient is notified that the
document is available on a Web site, whichever occurs first.

(d) When the electronic filing of a legal document with the department marks the
beginning of a prescribed time for another party to assert a right, the prescribed time for
another party to assert a right shall be lengthened by two calendar days when it can be shown
that service to the other party was by mail.

Subd. 3.

Proof of service.

The commissioner and the chief administrative law judge
shall ensure that proof of service of all papers and notices served by their respective agencies
is placed in the official file of the case.

Subd. 4.

Definitions; applicability.

(a) For purposes of this section, "agency" means
the workers' compensation division, the Department of Labor and Industry, the commissioner
of the Department of Labor and Industry, the Office of Administrative Hearings, the chief
administrative law judge, or the Workers' Compensation Court of Appeals. "Document"
includes documents, reports, notices, orders, papers, forms, information, and data elements
that are authorized or required to be filed with an agency or the commissioner or that are
authorized or required to be served on or by an agency or the commissioner. "Payer" means
a workers' compensation insurer, self-insurer employer, or third-party administrator.

(b) Except as otherwise modified by this section, the provisions of chapter 325L apply
to electronic signatures and the electronic transmission of documents under this section.

Sec. 6.

Minnesota Statutes 2016, section 176.541, subdivision 1, is amended to read:


Subdivision 1.

Application of chapter to state employees.

This chapter applies to the
employees of any department of this state as defined in section 3.732, subdivision 1, clause
(1)
.

Sec. 7.

Minnesota Statutes 2016, section 176.541, is amended by adding a subdivision to
read:


Subd. 7a.

Exceptions.

This section does not apply to the University of Minnesota.

Sec. 8.

Minnesota Statutes 2016, section 176.541, subdivision 8, is amended to read:


Subd. 8.

State may insure.

The state of Minnesota may elect to insure its liability under
the workers' compensation law for persons employed under the federal Emergency
Employment Act of 1971, as amended, and the Comprehensive Employment and Training
Act of 1973, as amended
Workforce Innovation and Opportunity Act, and similar programs,
with an insurer properly licensed in Minnesota.

Sec. 9.

Minnesota Statutes 2016, section 176.611, subdivision 2, is amended to read:


Subd. 2.

State departments.

Every department of the state, including the University of
Minnesota,
shall reimburse the fund for money paid for its claims and the costs of
administering the revolving fund at such times and in such amounts as the commissioner
of administration shall certify has been paid out of the fund on its behalf. The heads of the
departments shall anticipate these payments by including them in their budgets. In addition,
the commissioner of administration, with the approval of the commissioner of management
and budget, may require an agency to make advance payments to the fund sufficient to
cover the agency's estimated obligation for a period of at least 60 days. Reimbursements
and other money received by the commissioner of administration under this subdivision
must be credited to the state compensation revolving fund.

Sec. 10. REPEALER.

Minnesota Statutes 2016, section 176.541, subdivision 7, is repealed.

Sec. 11. EFFECTIVE DATE.

This article is effective the day following final enactment.

ARTICLE 4

WORKERS' COMPENSATION ADVISORY COUNCIL; SPECIAL
COMPENSATION FUND

Section 1.

[176.1292] FORBEARANCE OF AMOUNTS OWED TO THE SPECIAL
COMPENSATION FUND.

Subdivision 1.

Definitions.

For purposes of this section, the following definitions apply.

(a) "Payer" means a workers' compensation insurer, or an employer or group of employers
that are self-insured for workers' compensation.

(b) "Retirement benefits" means retirement benefits paid by any government retirement
benefit program and received by employees, other than old age and survivor insurance
benefits received under the federal Social Security Act, United States Code, title 42, sections
401 to 434. Retirement benefits include retirement annuities, optional annuities received in
lieu of retirement benefits, and any other benefit or annuity paid by a government benefit
program that is not clearly identified as a disability benefit or disability annuity in the
applicable governing statute.

Subd. 2.

Payment of permanent total disability benefits to employees, dependents,
and legal heirs.

(a) A payer is entitled to the relief described in subdivisions 3 and 4 only
if the payer complies with all of the conditions in paragraphs (b) to (d) for all of the payer's
permanently totally disabled employees and documents compliance according to the
procedures and forms established by the commissioner under subdivision 7.

(b) Except as provided in paragraph (e), the payer must:

(1) recharacterize supplementary benefits paid to all employees as permanent total
disability benefits if the supplementary benefits were paid because the permanent total
disability benefits were reduced by retirement benefits received by the employee;

(2) pay all permanently totally disabled employees, regardless of the date of injury, past
and future permanent total disability benefits calculated without any reduction for retirement
benefits received by the employees, from the date the employees' benefits were first reduced;
and

(3) for all deceased employees, pay the employees' dependents or, if none, the employees'
legal heirs, the permanent total disability benefits the deceased employees would have
received if the benefits had been calculated without any reduction for retirement benefits
received by the employees.

(c) A payer may take a credit against its obligations under paragraph (b), clauses (2) and
(3), for:

(1) supplementary benefits previously paid to an employee that have been recharacterized
as permanent total disability benefits under paragraph (b), clause (1); and

(2) permanent total disability benefits previously paid to an employee.

(d) The payer must pay the permanent total disability benefits as provided in paragraphs
(b) and (c) within the time frames described in clauses (1) to (4). More than one time frame
may apply to a claim.

(1) No later than 150 days following final enactment, the payer must begin paying the
recalculated permanent total disability benefit amounts to employees who are entitled to
ongoing permanent total disability benefits.

(2) No later than 210 days following final enactment, the payer must pay employees the
amounts that past permanent total disability benefits were underpaid.

(3) No later than 270 days following final enactment, the payer must pay the employees'
dependents or legal heirs the amounts that permanent total disability benefits were underpaid.

(4) The commissioner may waive payment under paragraphs (b) and (c) or extend these
time frames if the payer, after making a good-faith effort, is unable to: locate an employee;
identify or locate the dependents or legal heirs of a deceased employee; or locate
documentation to determine the amount of an underpayment.

(e) Paragraphs (a) to (d) do not apply if:

(1) the employee died before January 1, 2008;

(2) the employee's last permanent total disability benefit was paid before January 1,
2000;

(3) the employee's last permanent total disability benefit would have been paid before
January 1, 2000, if it had not been reduced by his or her retirement benefits;

(4) a stipulation for settlement, signed by the employee and approved by a compensation
judge, provided for a full, final, and complete settlement of permanent total disability benefits
under this chapter in exchange for a lump sum payment amount or a lump sum converted
to a structured annuity;

(5) a final court order, or a stipulation for settlement signed by the employee and approved
by a compensation judge, explicitly states the employee's permanent total disability benefits
may be reduced by specified retirement benefits. Paragraphs (a) to (d) apply if a court order
or stipulation for settlement is ambiguous about whether the employee's permanent total
disability benefits could be reduced by retirement benefits; or

(6) a final court order or a stipulation for settlement described in clause (4) or (5) was
vacated after the effective date of this section.

Subd. 3.

Reimbursement of supplementary benefits.

(a) Except as provided in
subdivision 9, paragraph (a), clause (2), a payer that has complied with the requirements of
subdivision 2, paragraphs (a) to (d):

(1) is not required to repay supplementary benefits for any claim that the special
compensation fund over reimbursed due to the payer's reduction of any employee's permanent
total disability benefits by retirement benefits received by the employee;

(2) is entitled to reimbursement of supplementary benefits paid or payable before August
13, 2014, to the extent the special compensation fund denied reimbursement due to the
payer's reduction of any employee's permanent total disability benefits by the employee's
retirement benefits; and

(3) is entitled to reimbursement of supplementary benefits the special compensation
fund withheld under section 176.129, subdivision 13, paragraph (a), to offset supplementary
benefits that were over reimbursed due to the payer's reduction of any employee's permanent
total disability benefits by the employee's retirement benefits.

(b) Paragraph (a) does not preclude the special compensation fund from denying
reimbursement of supplementary benefits, or adjusting the reimbursement amount, for any
reason other than reduction of permanent total disability benefits by the employee's retirement
benefits.

Subd. 4.

Assessments.

(a) Except as provided in subdivision 6, paragraph (b), clause
(2), and subdivision 9, paragraph (a), clause (2), a payer that has complied with the
requirements of subdivision 2, paragraphs (a) to (d), is not required to pay past or future
assessments under section 176.129 on the amount of increased or additional permanent total
disability benefits paid, or on supplementary benefits that are appropriately characterized
as permanent total disability benefits, due to the elimination of the retirement benefit
reduction.

(b) The special compensation fund shall not recalculate assessments previously paid by
any payer because of the assessment adjustments in paragraph (a).

(c) The assessment adjustments described in paragraph (a) do not apply to permanent
total disability benefits paid to employees with dates of injury on or after August 13, 2014.
Payers must pay full assessments according to section 176.129 on permanent total disability
benefits calculated without a reduction for retirement benefits for these employees.

Subd. 5.

Refunds.

(a) A payer is entitled to a refund from the special compensation fund
if:

(1) the payer complies with the requirements of subdivision 2, paragraphs (a) to (d); and

(2) due to the elimination of the retirement benefit reduction, the payer repaid the special
compensation fund for over reimbursement of supplementary benefits, or paid assessments
on the increased permanent total disability benefits for employees with dates of injury before
August 13, 2014.

(b) The special compensation fund must issue a refund within 30 days after receiving
the payer's documentation of compliance with subdivision 2, paragraphs (a) to (d), and an
itemization by claim of the amount repaid or paid to the special compensation fund as
described in paragraph (a), clause (2).

(c) The special compensation fund must pay interest on any refunded amount under this
section to the payer at an annual rate of four percent, calculated from the date the payer
repaid or paid the special compensation fund as described in paragraph (a), clause (2).

Subd. 6.

Applicability.

(a) This section does not preclude any employee, dependent, or
legal heir from pursuing additional benefits beyond those paid under subdivision 2,
paragraphs (b) to (d); however, the payments under subdivision 2, paragraphs (b) to (d), are
not to be construed as an admission of liability by the payer in any proceeding. The payments
cannot be used to justify additional claims; they represent a compromise between the payer
and the special compensation fund on supplementary benefits and assessments. Payers
reserve any and all defenses to claims to which this section does not apply.

(b) If an employee, dependent, or legal heir pursues additional benefits, claims, or
penalties related to the benefits paid or payable under subdivision 2, paragraphs (b) to (d),
payers may assert any and all defenses including, but not limited to, those specified in
subdivision 2, paragraph (e), clauses (4) and (5), with respect to the additional benefits,
claims, and penalties, and any future permanent total disability benefits payable, subject to
the following conditions:

(1) if it is determined by a compensation judge, the Workers' Compensation Court of
Appeals, or the Minnesota Supreme Court that the payer is entitled to reduce the employee's
permanent total disability benefits by retirement benefits received by the employee, the
payer shall not recover any overpayment that results from benefits the employee, dependent,
or legal heir has already received under subdivision 2, paragraphs (b) to (d). Notwithstanding
section 176.129, the payer shall not take a credit against an employee's future benefits for
any such overpayment; and

(2) if it is determined by a compensation judge, the Workers' Compensation Court of
Appeals, or the Minnesota Supreme Court that the payer is not entitled to reduce the
employee's permanent total disability benefits by retirement benefits received by the
employee, the payer is not entitled to the relief provided in subdivision 4 as applied to the
claim of the specific employee, dependent, or legal heir.

(c) A payer shall not assert defenses related to the offset of retirement benefits against
an employee's future permanent total disability benefits if the only additional claims asserted
by the employee under paragraph (b) are for attorney fees, costs and disbursements, and an
additional award pursuant to section 176.081, subdivision 7.

Subd. 7.

Procedure.

No later than 60 days after final enactment, in consultation with
affected payers, the commissioner must establish a procedure, which may include forms,
to implement this section.

Subd. 8.

Reporting.

This section does not affect a payer's obligation to report the full
amount of permanent total disability benefits paid to the extent required by this chapter or
other law. A payer must report supplementary benefits as permanent total disability benefits
if the supplementary benefits were paid because the permanent total disability benefits were
reduced by retirement benefits received by the employee.

Subd. 9.

Failure to comply.

(a) If a payer reports to the department that it has complied
with the requirements of subdivision 2, paragraphs (a) to (d), but the payer has not paid an
employee, dependent, or legal heir, as required by subdivision 2, the payer is subject to the
following:

(1) the payer must issue payment to the employee, dependent, or legal heir within 14
days of the date the payer discovers the noncompliance or the date the department notifies
the payer of the noncompliance;

(2) the payer is not entitled to the relief provided in subdivisions 3 and 4 as applied to
the claim of the specific employee, dependent, or legal heir who was not paid as required
by subdivision 2;

(3) the special compensation fund may immediately begin collection of any assessments
or over-reimbursement owed for the claim;

(4) if the commissioner determines that a payer's failure to comply under this subdivision
was not in good faith, the commissioner may assess a penalty, payable to the employee,
dependent, or legal heir, of up to 25 percent of the total permanent total disability benefits
underpaid; and

(5) if the payer is found after a hearing to be liable for increased or additional permanent
total disability benefits because the employee's permanent total disability benefits were
improperly reduced by his or her retirement benefits, the compensation judge shall assess
a penalty against the payer, payable to the employee or dependent, up to the total amount
of the permanent total disability benefits that were not paid pursuant to subdivision 2. The
compensation judge may issue a penalty against the payer, up to the total amount of the
permanent total disability benefits underpaid, payable to a legal heir.

(b) The penalties assessed under this subdivision are in addition to any other penalty
that may be, or is required to be, assessed under this chapter; however, the commissioner
shall not assess a penalty against a payer for late payment of permanent total disability
benefits if the employee's benefits have been paid and documented in accordance with
subdivision 2.

(c) If a payer and the special compensation fund have agreed to a list of employees
required to be paid under subdivision 2, this subdivision does not apply to any claim with
a date of injury before October 1, 1995, that is not on the agreed-upon list.

EFFECTIVE DATE.

This section is effective the day after final enactment.

ARTICLE 5

WORKERS' COMPENSATION ADVISORY COUNCIL; WORKERS'
COMPENSATION INTERVENTION

Section 1.

Minnesota Statutes 2016, section 176.361, subdivision 2, is amended to read:


Subd. 2.

Written motion.

A person desiring to intervene in a workers' compensation
case as a party, including but not limited to a health care provider who has rendered services
to an employee or an insurer who has paid benefits under section 176.191, shall submit a
timely written motion to intervene to the commissioner, the office, or to the court of appeals,
whichever is applicable.

(a) The motion must be served on all parties, except for other intervenors, either
personally, by first class mail, or by registered mail, return receipt requested. A motion to
intervene must be served and filed within 60 days after a potential intervenor has been
served with notice of a right to intervene or within 30 days of notice of an administrative
conference or expedited hearing. Upon the filing of a timely motion to intervene, the potential
intervenor shall be granted intervenor status without the need for an order. Objections to
the intervention may be subsequently addressed by a compensation judge. Where a motion
to intervene is not timely filed under this section, the potential intervenor interest shall be
extinguished and the potential intervenor may not collect, or attempt to collect, the
extinguished interest from the employee, employer, insurer, or any government program.

(b) The motion must show how the applicant's legal rights, duties, or privileges may be
determined or affected by the case; state the grounds and purposes for which intervention
is sought; and indicate the statutory right to intervene. The motion must be accompanied
by the following:

(1) an itemization of disability payments showing the period during which the payments
were or are being made; the weekly or monthly rate of the payments; and the amount of
reimbursement claimed;

(2) a summary of the medical or treatment payments, or rehabilitation services provided
by the Vocational Rehabilitation Unit, broken down by creditor, showing the total bill
submitted, the period of treatment or rehabilitation covered by that bill, the amount of
payment on that bill, and to whom the payment was made;

(3) copies of all medical or treatment bills for which payment is sought;

(4) copies of the work sheets or other information stating how the payments on medical
or treatment bills were calculated;

(5) a copy of the relevant policy or contract provisions upon which the claim for
reimbursement is based;

(6) the name and telephone number of the person representing the intervenor who has
authority to represent the intervenor, including but not limited to the authority to reach a
settlement of the issues in dispute;

(7) proof of service or copy of the registered mail receipt evidencing service on all parties
except for other intervenors;

(8) at the option of the intervenor, a proposed stipulation which states that all of the
payments for which reimbursement is claimed are related to the injury or condition in dispute
in the case and that, if the petitioner is successful in proving the compensability of the claim,
it is agreed that the sum be reimbursed to the intervenor; and

(9) if represented by an attorney, the name, address, telephone number, and Minnesota
Supreme Court license number of the attorney.

Sec. 2.

Minnesota Statutes 2016, section 176.361, subdivision 3, is amended to read:


Subd. 3.

Stipulation.

If the person submitting the filing a timely motion to intervene
has included a proposed stipulation, all parties shall either execute and return the signed
stipulation to the intervenor who must file it with the division or judge or serve upon the
intervenor and all other parties and file with the division specific and detailed objections to
any services rendered or payments made by the intervenor which are not conceded to be
correct and related to the injury or condition the petitioner has asserted is compensable. If
a party has not returned the signed stipulation or filed specific and detailed objections within
30 days of service of the motion to intervene, the intervenor's right to reimbursement for
the amount sought is deemed established provided that the petitioner's claim is determined
to be compensable. The office may establish procedures for filing objections if a timely
motion to intervene is filed less than 30 days before a scheduled hearing.

Sec. 3.

Minnesota Statutes 2016, section 176.521, is amended by adding a subdivision to
read:


Subd. 2b.

Partial settlement.

(a) The parties may file a partial stipulation for settlement
which resolves the claims of the employee and reserves the claims of one or more intervenors.
If the partial stipulation, or a letter of agreement attached to the partial stipulation, is not
signed by an intervenor, the partial stipulation must include a statement that the parties were
unable to:

(1) obtain a response from the nonsigning intervenor regarding clarification or
confirmation of its interest or an offer of settlement within a reasonable time despite
good-faith efforts to obtain a response;

(2) reach agreement with the nonsigning intervenor despite the belief that the parties
negotiated with the intervenor in good faith and made a reasonable offer to settle the
intervention claim; or

(3) obtain the nonsigning intervenor's signature within a reasonable time after an
agreement was reached with the intervenor.

The partial stipulation must include detailed and case-specific support for the parties'
statements. In addition, the partial stipulation must reserve the nonsigning intervenor's
interests to pursue its claim at a hearing on the merits, and must contain a statement that
the employee will cooperate at the hearing.

(b) Prior to filing the partial stipulation for approval, a copy of the partial stipulation
must be served on all parties, including the nonsigning intervenor, together with a written
notification that the settling parties intend to file the partial stipulation for approval by a
compensation judge and of the nonsigning intervenor's right to request a hearing on the
merits of the intervenor's claim.

(c) Within ten days after service of a partial stipulation for settlement and notice of an
intent to file for approval by a compensation judge, a nonsigning intervenor may serve and
file a written objection to approval of the partial stipulation, which filing must provide a
detailed and case-specific factual basis establishing that approval of the partial stipulation
will adversely impact the rights of the intervenor.

(d) After expiration of the ten-day period within which a nonsigning intervenor may
serve and file its written objection, any party may file for approval a partial stipulation for
settlement which conforms with this section. An affidavit of service must accompany the
partial stipulation when it is filed for approval.

(e) Unless the compensation judge has a reasonable belief that approval of the partial
stipulation will adversely impact the rights of the nonsigning intervenor, the compensation
judge shall immediately issue the award and file it with the commissioner. The issuance of
the award shall be accompanied by notice to the intervenors and other parties of their right
to request amended findings within a period of 30 days following the date of issuance in
conformity with applicable law.

(f) If the compensation judge has a reasonable belief that approval of the partial stipulation
will adversely impact the rights of the intervenor, the compensation judge shall disapprove
the stipulation by written order detailing a factual basis for the determination of adverse
impact.

Sec. 4. RULEMAKING.

The Office of Administrative Hearings is directed to use the expedited rulemaking
provisions of Minnesota Statutes, section 14.389, to amend Minnesota Rules, part 1420.1850,
to conform to the amendments of Minnesota Statutes, section 176.361, subdivision 3.

ARTICLE 6

EMPLOYMENT AND ECONOMIC DEVELOPMENT

Section 1.

[116J.4221] RURAL POLICY AND DEVELOPMENT CENTER FUND.

(a) A rural policy and development center fund is established as an account in the special
revenue fund in the state treasury. The commissioner of management and budget shall credit
to the account the amounts authorized under this section and appropriations and transfers
to the account. The State Board of Investment shall ensure that account money is invested
under section 11A.24. All money earned by the account must be credited to the account.
The principal of the account and any unexpended earnings must be invested and reinvested
by the State Board of Investment.

(b) Gifts and donations, including land or interests in land, may be made to the account.
Noncash gifts and donations must be disposed of for cash as soon as the board prudently
can maximize the value of the gift or donation. Gifts and donations of marketable securities
may be held or be disposed of for cash at the option of the board. The cash receipts of gifts
and donations of cash or capital assets and marketable securities disposed of for cash must
be credited immediately to the principal of the account. The value of marketable securities
at the time the gift or donation is made must be credited to the principal of the account and
any earnings from the marketable securities are earnings of the account. The earnings in
the account are annually appropriated to the board of the Center for Rural Policy and
Development to carry out the duties of the center.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Minnesota Statutes 2016, section 116J.8731, subdivision 2, is amended to read:


Subd. 2.

Administration.

(a) Except as otherwise provided in this section, the
commissioner shall administer the fund as part of the Small Cities Development Block
Grant Program and funds shall be made available to local communities and recognized
Indian tribal governments in accordance with the rules adopted for economic development
grants in the small cities community development block grant program. All units of general
purpose local government are eligible applicants for Minnesota investment funds. The
commissioner may provide forgivable loans directly to a private enterprise and not require
a local community or recognized Indian tribal government application other than a resolution
supporting the assistance.

(b) Eligible applicants for the state-funded portion of the fund also include development
authorities as defined in section 116J.552, subdivision 4, provided that the governing body
of the municipality approves, by resolution, the application of the development authority.
A local government entity may receive more than one award in a fiscal year. The
commissioner may also make funds available within the department for eligible expenditures
under subdivision 3, clause (2).

(c) A home rule charter or statutory city, county, or town may loan or grant money
received from repayment of funds awarded under this section to a regional development
commission, other regional entity, or statewide community capital fund as determined by
the commissioner, to capitalize or to provide the local match required for capitalization of
a regional or statewide revolving loan fund.

Sec. 3.

Minnesota Statutes 2016, section 116J.8731, is amended by adding a subdivision
to read:


Subd. 10.

Transfer.

The commissioner may transfer up to $2,000,000 of a fiscal year's
appropriation between the Minnesota job creation fund program and Minnesota investment
fund to meet business demand.

Sec. 4.

Minnesota Statutes 2016, section 116J.8748, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement
under section 116J.994 that must include, but is not limited to: specification of the duration
of the agreement, job goals and a timeline for achieving those goals over the duration of
the agreement, construction and other investment goals and a timeline for achieving those
goals over the duration of the agreement, and the value of benefits the firm may receive
following achievement of capital investment and employment goals. The local government
and business must report to the commissioner on the business performance using the forms
developed by the commissioner.

(c) "Business" means an individual, corporation, partnership, limited liability company,
association, or other entity.

(d) "Capital investment" means money that is expended for the purpose of building or
improving real fixed property where employees under paragraphs (g) and (h) are or will be
employed and also includes construction materials, services, and supplies, and the purchase
and installation of equipment and machinery as provided under subdivision 4, paragraph
(b), clause (5).

(e) "Commissioner" means the commissioner of employment and economic development.

(f) "Minnesota job creation fund business" means a business that is designated by the
commissioner under subdivision 3.

(g) "Minority person" means a person belonging to a racial or ethnic minority as defined
in Code of Federal Regulations, title 49, section 23.5.

(g) (h) "New full-time employee" means an employee who:

(1) begins work at a Minnesota job creation fund business facility noted in a business
subsidy agreement and following the designation as a job creation fund business; and

(2) has expected work hours of at least 2,080 hours annually.

(i) "Persons with disabilities" means an individual with a disability, as defined under
the Americans with Disabilities Act, United States Code, title 42, section 12102.

(h) (j) "Retained job" means a full-time position:

(1) that existed at the facility prior to the designation as a job creation fund business;
and

(2) has expected work hours of at least 2,080 hours annually.

(k) "Veteran" means a veteran as defined in section 197.447.

(i) (l) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).

Sec. 5.

Minnesota Statutes 2016, section 116J.8748, subdivision 3, is amended to read:


Subd. 3.

Minnesota job creation fund business designation; requirements.

(a) To
receive designation as a Minnesota job creation fund business, a business must satisfy all
of the following conditions:

(1) the business is or will be engaged in, within Minnesota, one of the following as its
primary business activity:

(i) manufacturing;

(ii) warehousing;

(iii) distribution;

(iv) information technology;

(v) finance;

(vi) insurance; or

(vii) professional or technical services;

(2) the business must not be primarily engaged in lobbying; gambling; entertainment;
professional sports; political consulting; leisure; hospitality; or professional services provided
by attorneys, accountants, business consultants, physicians, or health care consultants, or
primarily engaged in making retail sales to purchasers who are physically present at the
business's location;

(3) the business must enter into a binding construction and job creation business subsidy
agreement with the commissioner to expend directly, or ensure expenditure by or in
partnership with a third party constructing or managing the project,
at least $500,000 in
capital investment in a capital investment project that includes a new, expanded, or remodeled
facility within one year following designation as a Minnesota job creation fund business or
$250,000 if the project is located outside the metropolitan area as defined in section 200.02,
subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans,
women, or persons with a disability;
and:

(i) create at least ten new full-time employee positions within two years of the benefit
date following the designation as a Minnesota job creation fund business or five new full-time
employee positions within two years of the benefit date if the project is located outside the
metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business
is cumulatively owned by minorities, veterans, women, or persons with a disability
; or

(ii) expend at least $25,000,000, which may include the installation and purchase of
machinery and equipment, in capital investment and retain at least 200 employees for projects
located in the metropolitan area as defined in section 200.02, subdivision 24, and 75
employees for projects located outside the metropolitan area;

(4) positions or employees moved or relocated from another Minnesota location of the
Minnesota job creation fund business must not be included in any calculation or determination
of job creation or new positions under this paragraph; and

(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the
working hours of an employee for the purpose of hiring an individual to satisfy job creation
goals under this subdivision.

(b) Prior to approving the proposed designation of a business under this subdivision, the
commissioner shall consider the following:

(1) the economic outlook of the industry in which the business engages;

(2) the projected sales of the business that will be generated from outside the state of
Minnesota;

(3) how the business will build on existing regional, national, and international strengths
to diversify the state's economy;

(4) whether the business activity would occur without financial assistance;

(5) whether the business is unable to expand at an existing Minnesota operation due to
facility or land limitations;

(6) whether the business has viable location options outside Minnesota;

(7) the effect of financial assistance on industry competitors in Minnesota;

(8) financial contributions to the project made by local governments; and

(9) any other criteria the commissioner deems necessary.

(c) Upon receiving notification of local approval under subdivision 2, the commissioner
shall review the determination by the local government and consider the conditions listed
in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local
area to designate a business as a Minnesota job creation fund business.

(d) If the commissioner designates a business as a Minnesota job creation fund business,
the business subsidy agreement shall include the performance outcome commitments and
the expected financial value of any Minnesota job creation fund benefits.

(e) The commissioner may amend an agreement once, upon request of a local government
on behalf of a business, only if the performance is expected to exceed thresholds stated in
the original agreement.

(f) A business may apply to be designated as a Minnesota job creation fund business at
the same location more than once only if all goals under a previous Minnesota job creation
fund agreement have been met and the agreement is completed.

Sec. 6.

Minnesota Statutes 2016, section 116J.8748, subdivision 4, is amended to read:


Subd. 4.

Certification; benefits.

(a) The commissioner may certify a Minnesota job
creation fund business as eligible to receive a specific value of benefit under paragraphs (b)
and (c) when the business has achieved its job creation and capital investment goals noted
in its agreement under subdivision 3.

(b) A qualified Minnesota job creation fund business may be certified eligible for the
benefits in this paragraph for up to five years for projects located in the metropolitan area
as defined in section 200.02, subdivision 24, and seven years for projects located outside
the metropolitan area, as determined by the commissioner when considering the best interests
of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a),
clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located
outside the metropolitan area may be for up to seven years in length.
The eligibility for the
following benefits begins the date the commissioner certifies the business as a qualified
Minnesota job creation fund business under this subdivision:

(1) up to five percent rebate for projects located in the metropolitan area as defined in
section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan
area, on capital investment on qualifying purchases as provided in subdivision 5 with the
total rebate for a project not to exceed $500,000;

(2) an award of up to $500,000 based on full-time job creation and wages paid as provided
in subdivision 6 with the total award not to exceed $500,000;

(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards
are allowable for projects that have at least $25,000,000 in capital investment and 200 new
employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75
new employees for projects located outside the metropolitan area
;

(4) up to $1,000,000 in capital investment rebates are allowable for projects that have
at least $25,000,000 in capital investment and 200 retained employees for projects located
in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for
projects located outside the metropolitan area; and

(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
include the installation and purchases of machinery and equipment. These expenditures are
not eligible for the capital investment rebate provided under subdivision 5.

(c) The job creation award may be provided in multiple years as long as the qualified
Minnesota job creation fund business continues to meet the job creation goals provided for
in its agreement under subdivision 3 and the total award does not exceed $500,000 except
as provided under paragraph (b), clauses (3) and (4).

(d) No rebates or award may be provided until the Minnesota job creation fund business
or a third party constructing or managing the project has at least $500,000 in capital
investment in the project and at least ten full-time jobs have been created and maintained
for at least one year or the retained employees, as provided in paragraph (b), clause (4),
remain for at least one year. The agreement may require additional performance outcomes
that need to be achieved before rebates and awards are provided. If fewer retained jobs are
maintained, but still above the minimum under this subdivision, the capital investment
award shall be reduced on a proportionate basis.

(e) The forms needed to be submitted to document performance by the Minnesota job
creation fund business must be in the form and be made under the procedures specified by
the commissioner. The forms shall include documentation and certification by the business
that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66,
and other provisions as specified by the commissioner.

(f) Minnesota job creation fund businesses must pay each new full-time employee added
pursuant to the agreement total compensation, including benefits not mandated by law, that
on an annualized basis is equal to at least 110 percent of the federal poverty level for a
family of four.

(g) A Minnesota job creation fund business must demonstrate reasonable progress on
its capital investment expenditures within six months following designation as a Minnesota
job creation fund business to ensure that the capital investment goal in the agreement under
subdivision 1 will be met. Businesses not making reasonable progress will not be eligible
for benefits under the submitted application and will need to work with the local government
unit to resubmit a new application and request to be a Minnesota job creation fund business.
Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not
be considered a default of the business subsidy agreement.

Sec. 7.

Minnesota Statutes 2016, section 116J.8748, subdivision 6, is amended to read:


Subd. 6.

Job creation award.

(a) A qualified Minnesota job creation fund business is
eligible for an annual award for each new job created and maintained by the business using
the following schedule: $1,000 for each job position paying annual wages at least $26,000
but less than $35,000; $2,000 for each job position paying at least $35,000 but less than
$45,000; and $3,000 for each job position paying at least $45,000; and as noted in the goals
under the agreement provided under subdivision 1. These awards are increased by $1,000
if the business is located outside the metropolitan area as defined in section 200.02,
subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans,
women, or persons with a disability.

(b) The job creation award schedule must be adjusted annually using the percentage
increase in the federal poverty level for a family of four.

(c) Minnesota job creation fund businesses seeking an award credit provided under
subdivision 4 must submit forms and applications to the Department of Employment and
Economic Development as prescribed by the commissioner.

Sec. 8.

[116J.9922] CENTRAL MINNESOTA OPPORTUNITY GRANT PROGRAM.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given.

(b) "Commissioner" means the commissioner of employment and economic development.

(c) "Community initiative" means a nonprofit organization which provides services to
central Minnesota communities of color in one or more of the program areas listed in
subdivision 4, paragraph (a).

(d) "Foundation" means the Central Minnesota Community Foundation.

Subd. 2.

Establishment.

The commissioner shall establish a central Minnesota
opportunity grant program, administered by the foundation, to identify and support
community initiatives in the St. Cloud area that enhance long-term economic self-sufficiency
by improving education, housing, and economic outcomes for central Minnesota communities
of color.

Subd. 3.

Grant to the Central Minnesota Community Foundation.

The commissioner
shall award all grant funds to the foundation, which shall administer the central Minnesota
opportunity grant program. The foundation may use up to five percent of grant funds for
administrative costs.

Subd. 4.

Grants to community initiatives.

(a) The foundation must award funds through
a competitive grant process to community initiatives that will provide services, either alone
or in partnership with another nonprofit organization, in one or more of the following areas:

(1) economic development, including but not limited to programs to foster
entrepreneurship or small business development;

(2) education, including but not limited to programs to encourage civic engagement or
provide youth after-school or recreation programs; or

(3) housing, including but not limited to, programs to prevent and respond to
homelessness or to provide access to loans or grants for housing stability and affordability.

(b) To receive grant funds, a community initiative must submit a written application to
the foundation, using a form developed by the foundation. This grant application must
include:

(1) a description of the activities that will be funded by the grant;

(2) an estimate of the cost of each grant activity;

(3) the total cost of the project;

(4) the sources and amounts of nonstate funds supplementing the grant;

(5) how the project aims to achieve stated outcomes in areas including improved job
training; workforce development; small business support; early childhood, kindergarten
through grade 12, and higher education achievement; and access to housing, including loans;
and

(6) any additional information requested by the foundation.

(c) In awarding grants under this subdivision, the foundation shall give weight to
applications from organizations that demonstrate:

(1) a history of successful provision of the services listed in paragraph (a); and

(2) a history of successful fund-raising from private sources for such services.

(d) In evaluating grant applications, the foundation shall not consider the composition
of a community initiative's governing board.

(e) Grant funds may be used by a community initiative for the following purposes:

(1) operating costs, including but not limited to staff, office space, computers, software,
and Web development and maintenance services;

(2) program costs;

(3) travel within Minnesota;

(4) consultants directly related to and necessary for delivering services listed in paragraph
(a); and

(5) capacity building.

Subd. 5.

Reports to the legislature.

By January 15, 2019, and each January 15 thereafter
through 2022, the commissioner must submit a report to the chairs and ranking minority
members of the house of representatives and the senate committees with jurisdiction over
economic development that details the use of grant funds. This report must include data on
the number of individuals served and, to the extent practical, measures of progress toward
achieving the outcomes stated in subdivision 4, paragraph (b), clause (5).

Sec. 9.

Minnesota Statutes 2016, section 116L.17, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them in this subdivision.

(b) "Commissioner" means the commissioner of employment and economic development.

(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time
employment ceased or was working in the state at the time employment ceased and:

(1) has been permanently separated or has received a notice of permanent separation
from public or private sector employment and is eligible for or has exhausted entitlement
to unemployment benefits, and is unlikely to return to the previous industry or occupation;

(2) has been long-term unemployed and has limited opportunities for employment or
reemployment in the same or a similar occupation in the area in which the individual resides,
including older individuals who may have substantial barriers to employment by reason of
age;

(3) has been terminated or has received a notice of termination of employment as a result
of a plant closing or a substantial layoff at a plant, facility, or enterprise;

(4) has been self-employed, including farmers and ranchers, and is unemployed as a
result of general economic conditions in the community in which the individual resides or
because of natural disasters;

(5) MS 2011 Supp [Expired, 2011 c 84 art 3 s 1]

(6) (5) is a veteran as defined by section 197.447, has been discharged or released from
active duty under honorable conditions within the last 36 months, and (i) is unemployed or
(ii) is employed in a job verified to be below the skill level and earning capacity of the
veteran;

(7) (6) is an individual determined by the United States Department of Labor to be
covered by trade adjustment assistance under United States Code, title 19, sections 2271 to
2331, as amended; or

(8) (7) is a displaced homemaker. A "displaced homemaker" is an individual who has
spent a substantial number of years in the home providing homemaking service and (i) has
been dependent upon the financial support of another; and now due to divorce, separation,
death, or disability of that person, must find employment to self support; or (ii) derived the
substantial share of support from public assistance on account of dependents in the home
and no longer receives such support. To be eligible under this clause, the support must have
ceased while the worker resided in Minnesota.

For the purposes of this section, "dislocated worker" does not include an individual who
was an employee, at the time employment ceased, of a political committee, political fund,
principal campaign committee, or party unit, as those terms are used in chapter 10A, or an
organization required to file with the federal elections commission.

(d) "Eligible organization" means a state or local government unit, nonprofit organization,
community action agency, business organization or association, or labor organization.

(e) "Plant closing" means the announced or actual permanent shutdown of a single site
of employment, or one or more facilities or operating units within a single site of
employment.

(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a
result of a plant closing, and which results in an employment loss at a single site of
employment during any 30-day period for at least 50 employees excluding those employees
that work less than 20 hours per week.

Sec. 10.

Minnesota Statutes 2016, section 116L.665, is amended to read:


116L.665 WORKFORCE DEVELOPMENT COUNCIL BOARD.

Subdivision 1.

Creation.

The governor's Workforce Development Council is created
under the authority of the Workforce Investment Act, United States Code, title 29, section
2801, et seq. Local workforce development councils are authorized under the Workforce
Investment Act. The governor's Workforce Development Council serves as Minnesota's
Workforce Investment Board for the purposes of the federal Workforce Investment Act.

Board serves as Minnesota's state workforce development board for the purposes of the
federal Workforce Innovation and Opportunity Act, United States Code, title 29, section
3111, and must perform the duties under that act.

Subd. 2.

Membership.

(a) The governor's Workforce Development Council Board is
composed of 31 members appointed by the governor. The members may be removed pursuant
to section 15.059.
In selecting the representatives of the council board, the governor shall
ensure that 50 percent a majority of the members come from nominations provided by local
workforce councils. Local education representatives shall come from nominations provided
by local education to employment partnerships. The 31 members shall represent the following
sectors:
the private sector, pursuant to United States Code, title 29, section 3111. For the
public members, membership terms, compensation of members, and removal of members
are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable, the
membership should be balanced as to gender and ethnic diversity.

(a) State agencies: the following individuals shall serve on the council:

(1) commissioner of the Minnesota Department of Employment and Economic
Development;

(2) commissioner of the Minnesota Department of Education; and

(3) commissioner of the Minnesota Department of Human Services.

(b) Business and industry: six individuals shall represent the business and industry sectors
of Minnesota.

(c) Organized labor: six individuals shall represent labor organizations of Minnesota.

(d) Community-based organizations: four individuals shall represent community-based
organizations of Minnesota. Community-based organizations are defined by the Workforce
Investment Act as private nonprofit organizations that are representative of communities
or significant segments of communities and that have demonstrated expertise and
effectiveness in the field of workforce investment and may include entities that provide job
training services, serve youth, serve individuals with disabilities, serve displaced
homemakers, union-related organizations, employer-related nonprofit organizations, and
organizations serving nonreservation Indians and tribal governments.

(e) Education: six individuals shall represent the education sector of Minnesota as follows:

(1) one individual shall represent local public secondary education;

(2) one individual shall have expertise in design and implementation of school-based
service-learning;

(3) one individual shall represent leadership of the University of Minnesota;

(4) one individual shall represent secondary/postsecondary vocational institutions;

(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and
Universities; and

(6) one individual shall have expertise in agricultural education.

(f) Other: two individuals shall represent other constituencies including:

(1) units of local government; and

(2) applicable state or local programs.

The speaker and the minority leader of the house of representatives shall each appoint
a representative to serve as an ex officio member of the council. The majority and minority
leaders of the senate shall each appoint a senator to serve as an ex officio member of the
council.

The governor shall appoint one individual representing public libraries, one individual
with expertise in assisting women in obtaining employment in high-wage, high-demand,
nontraditional occupations, and one individual representing adult basic education programs
to serve as nonvoting advisors to the council.

(b) No person shall serve as a member of more than one category described in paragraph
(c).

(c) Voting members shall consist of the following:

(1) the governor or the governor's designee;

(2) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the minority leader of the house of representatives;

(3) two members of the senate, one appointed by the senate majority leader and one
appointed by the senate minority leader;

(4) a majority of the members must be representatives of businesses in the state appointed
by the governor who:

(i) are owners of businesses, chief executives, or operating officers of businesses, or
other business executives or employers with optimum policy-making or hiring authority
and who, in addition, may be members of a local board under United States Code, title 29,
section 3122(b)(2)(A)(i);

(ii) represent businesses, including small businesses, or organizations representing
businesses that provide employment opportunities that, at a minimum, include high-quality,
work-relevant training and development in in-demand industry sectors or occupations in
the state; and

(iii) are appointed from individuals nominated by state business organizations and
business trade associations;

(5) six representatives of labor organizations appointed by the governor, including:

(i) representatives of labor organizations who have been nominated by state labor
federations; and

(ii) a member of a labor organization or a training director from a joint labor organization;

(6) commissioners of the state agencies with primary responsibility for core programs
identified within the state plan including:

(i) the Department of Employment and Economic Development;

(ii) the Department of Education; and

(iii) the Department of Human Services;

(7) two chief elected officials, appointed by the governor, collectively representing cities
and counties;

(8) two representatives who are people of color or people with disabilities, appointed
by the governor, of community-based organizations that have demonstrated experience and
expertise in addressing the employment, training, or education needs of individuals with
barriers to employment; and

(9) four officials responsible for education programs in the state, appointed by the
governor, including chief executive officers of community colleges and other institutions
of higher education, including:

(i) the chancellor of the Minnesota State Colleges and Universities;

(ii) the president of the University of Minnesota;

(iii) a president from a private postsecondary school; and

(iv) a representative of career and technical education.

(d) The nonvoting members of the board shall be appointed by the governor and consist
of one of each of the following:

(1) a representative of Adult Basic Education;

(2) a representative of public libraries;

(3) a person with expertise in women's economic security;

(4) the chair or executive director of the Minnesota Workforce Council Association;

(5) the commissioner of labor and industry;

(6) the commissioner of the Office of Higher Education;

(7) the commissioner of corrections;

(8) the commissioner of management and budget;

(9) two representatives of community-based organizations who are people of color or
people with disabilities who have demonstrated experience and expertise in addressing the
employment, training, and education needs of individuals with barriers to employment;

(10) a representative of secondary, postsecondary, or career-technical education;

(11) a representative of school-based service learning;

(12) a representative of the Council on Asian-Pacific Minnesotans;

(13) a representative of the Minnesota Council on Latino Affairs;

(14) a representative of the Council for Minnesotans of African Heritage;

(15) a representative of the Minnesota Indian Affairs Council;

(16) a representative of the Minnesota State Council on Disability; and

(17) a representative of the Office on the Economic Status of Women.

(g) Appointment: (e) Each member shall be appointed for a term of three years from the
first day of January or July immediately following their appointment. Elected officials shall
forfeit their appointment if they cease to serve in elected office.

(h) Members of the council are compensated as provided in section 15.059, subdivision
3
.

Subd. 2a.

Council Board meetings; chair.

(a) If compliance with section 13D.02 is
impractical, the Governor's Workforce Development Council may conduct a meeting of its
members by telephone or other electronic means so long as the following conditions are
met:

(1) all members of the council participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;

(2) members of the public present at the regular meeting location of the council can hear
clearly all discussion and testimony and all votes of members of the council and, if needed,
receive those services required by sections 15.44 and 15.441;

(3) at least one member of the council is physically present at the regular meeting location;
and

(4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.

(b) Each member of the council participating in a meeting by telephone or other electronic
means is considered present at the meeting for purposes of determining a quorum and
participating in all proceedings.

(c) If telephone or other electronic means is used to conduct a meeting, the council, to
the extent practical, shall allow a person to monitor the meeting electronically from a remote
location. The council may require the person making such a connection to pay for
documented marginal costs that the council incurs as a result of the additional connection.

(d) If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the council shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and of the
provisions of paragraph (c). The timing and method of providing notice is governed by
section 13D.04.

(a) The board shall hold regular in-person meetings at least quarterly and as often as
necessary to perform the duties outlined in the statement of authority and the board's bylaws.
Meetings shall be called by the chair. Special meetings may be called as needed. Notices
of all meetings shall be made at least 48 hours before the meeting date.

(b) The governor shall designate a chair from among the appointed business representative
voting members. The chair shall approve an agenda for each meeting. Members shall submit
a written request for consideration of an agenda item no less than 24 hours in advance of
the meeting. Members of the public may submit a written request within 48 hours of a
meeting to be considered for inclusion in the agenda. Members of the public attending a
meeting of the board may address the board only with the approval or at the request of the
chair.

(c) All meeting notices must be posted on the board's Web site. All meetings of the board
and committees must be open to the public. The board must make available to the public,
on a regular basis through electronic means and open meetings, information regarding the
activities of the board, information regarding membership, and, on request, minutes of
formal meetings of the board.

(d) For the purpose of conducting business before the board at a duly called meeting, a
simple majority of the voting members, excluding any vacancies, constitutes a quorum.

Subd. 3.

Purpose; duties.

The governor's Workforce Development Council shall replace
the governor's Job Training Council and assume all of its requirements, duties, and
responsibilities under the Workforce Investment Act. Additionally, the Workforce
Development Council shall assume the following duties and responsibilities:

(a) Review the provision of services and the use of funds and resources under applicable
federal human resource programs and advise the governor on methods of coordinating the
provision of services and the use of funds and resources consistent with the laws and
regulations governing the programs. For purposes of this section, applicable federal and
state human resource programs mean the:

(1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.;

(2) Carl D. Perkins Vocational and Applied Technology Education Act, United States
Code, title 20, section 2301, et seq.;

(3) Adult Education Act, United States Code, title 20, section 1201, et seq.;

(4) Wagner-Peyser Act, United States Code, title 29, section 49;

(5) Personal Responsibility and Work Opportunities Act of 1996 (TANF);

(6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp
Employment and Training Program, United States Code, title 7, section 2015(d)(4); and

(7) programs defined in section 116L.19, subdivision 5.

Additional federal and state programs and resources can be included within the scope
of the council's duties if recommended by the governor after consultation with the council.

(b) Review federal, state, and local education, postsecondary, job skills training, and
youth employment programs, and make recommendations to the governor and the legislature
for establishing an integrated seamless system for providing education and work skills
development services to learners and workers of all ages.

(c) Advise the governor on the development and implementation of statewide and local
performance standards and measures relating to applicable federal human resource programs
and the coordination of performance standards and measures among programs.

(d) Promote education and employment transitions programs and knowledge and skills
of entrepreneurship among employers, workers, youth, and educators, and encourage
employers to provide meaningful work-based learning opportunities.

(e) Evaluate and identify exemplary education and employment transitions programs
and provide technical assistance to local partnerships to replicate the programs throughout
the state.

(f) Advise the governor on methods to evaluate applicable federal human resource
programs.

(g) Sponsor appropriate studies to identify human investment needs in Minnesota and
recommend to the governor goals and methods for meeting those needs.

(h) Recommend to the governor goals and methods for the development and coordination
of a human resource system in Minnesota.

(i) Examine federal and state laws, rules, and regulations to assess whether they present
barriers to achieving the development of a coordinated human resource system.

(j) Recommend to the governor and to the federal government changes in state or federal
laws, rules, or regulations concerning employment and training programs that present barriers
to achieving the development of a coordinated human resource system.

(k) Recommend to the governor and to the federal government waivers of laws and
regulations to promote coordinated service delivery.

(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic
plan which details methods for meeting Minnesota's human investment needs and for
developing and coordinating a state human resource system.

(m) Provide the commissioner of employment and economic development and the
committees of the legislature with responsibility for economic development with
recommendations provided to the governor under this subdivision.

(n) In consultation with local workforce councils and the Department of Employment
and Economic Development, develop an ongoing process to identify and address local gaps
in workforce services.

Subd. 4.

Executive committee duties.

The executive committee must, with advice and
input of local workforce councils boards and other stakeholders as appropriate, develop
performance standards for the state workforce centers. By January 15, 2002 2019, and each
odd-numbered year thereafter, the executive committee shall submit a report to the senate
and house of representatives committees with jurisdiction over workforce development
programs regarding the performance and outcomes of the workforce centers. The report
must provide recommendations regarding workforce center funding levels and sources,
program changes, and administrative changes.

Subd. 5.

Subcommittees.

The chair of the Workforce Development Council Board may
establish subcommittees in order to carry out the duties and responsibilities of the council
board
.

Subd. 6.

Staffing.

The Department of commissioner of employment and economic
development must provide staff, including but not limited to professional, technical, and
clerical staff
to the board necessary to perform the duties assigned to the Minnesota
Workforce Development Council. All staff report to the commissioner
carry out the duties
of the board
. The council may ask for assistance from other units of At the request of the
board,
state government as departments and agencies must provide the board with the
assistance
it requires in order to fulfill its duties and responsibilities.

Subd. 7.

Expiration.

The council board expires if there is no federal funding for the
human resource programs within the scope of the council's board's duties.

Subd. 8.

Funding.

The commissioner shall develop recommendations on a funding
formula for allocating Workforce Investment Act funds to the council with a minimum
allocation
of employment and economic development must provide at least $350,000 per
each fiscal
year. The commissioner shall report the funding formula recommendations to
the legislature by January 15, 2011
from existing agency resources to the board for staffing
and administrative expenses
.

Sec. 11.

Minnesota Statutes 2016, section 116M.14, subdivision 4, is amended to read:


Subd. 4.

Low-income area.

"Low-income area" means:

(1) Minneapolis, St. Paul;

(2) those cities in the metropolitan area as defined in section 473.121, subdivision 2,
that have an average income a median income for a family of four that is below 80 percent
of the median income for a four-person family as of the latest report by the United States
Census Bureau; and

(3) the area outside the metropolitan area.

Sec. 12.

Minnesota Statutes 2016, section 116M.17, subdivision 4, is amended to read:


Subd. 4.

Reports.

The board department shall submit an annual report to the legislature
of an accounting of loans made under section 116M.18, including information on loans
made, the number of jobs created by the program, the impact on low-income areas, and
recommendations concerning minority business development and jobs for persons in
low-income areas.

Sec. 13.

Minnesota Statutes 2016, section 116M.18, subdivision 1a, is amended to read:


Subd. 1a.

Statewide loans.

To the extent there is sufficient eligible demand, loans shall
be made so that an approximately equal dollar amount of loans are made to businesses in
the metropolitan area as in the nonmetropolitan area. After September 30 March 31 of each
calendar fiscal year, the department may allow loans to be made anywhere in the state
without regard to geographic area.

Sec. 14.

Minnesota Statutes 2016, section 116M.18, subdivision 4, is amended to read:


Subd. 4.

Business loan criteria.

(a) The criteria in this subdivision apply to loans made
by nonprofit corporations under the program.

(b) Loans must be made to businesses that are not likely to undertake a project for which
loans are sought without assistance from the program.

(c) A loan must be used to support a business owned by a minority or a low-income
person, woman, veteran, or a person with disabilities. Priority must be given for loans to
the lowest income areas.

(d) The minimum state contribution to a loan is $5,000 and the maximum is $150,000.

(e) The state contribution must be matched by at least an equal amount of new private
investment.

(f) A loan may not be used for a retail development project.

(g) The business must agree to work with job referral networks that focus on minority
and low-income applicants.

(h) Up to ten percent of a loan's principal amount may be forgiven if the department
approves and the borrower has met lender criteria including being current with all payments.

Sec. 15.

Minnesota Statutes 2016, section 116M.18, subdivision 4a, is amended to read:


Subd. 4a.

Microenterprise loan.

(a) Program grants may be used to make microenterprise
loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans
are subject to this section except that:

(1) they may also be made to qualified retail businesses;

(2) they may be made for a minimum of $5,000 and a maximum of $35,000;

(3) in a low-income area, they may be made for a minimum of $5,000 and a maximum
of $50,000; and

(4) they do not require a match.

(b) Up to ten percent of a loan's principal amount may be forgiven if the department
approves and the borrower has met lender criteria including being current with all payments.

Sec. 16.

Minnesota Statutes 2016, section 116M.18, subdivision 8, is amended to read:


Subd. 8.

Reporting requirements.

A nonprofit corporation that receives a program
grant shall:

(1) submit an annual report to the board and department by March 30 February 15 of
each year that includes a description of businesses supported by the grant program, an
account of loans made during the calendar year, the program's impact on minority business
enterprises and job creation for minority persons and low-income persons, the source and
amount of money collected and distributed by the program, the program's assets and
liabilities, and an explanation of administrative expenses; and

(2) provide for an independent annual audit to be performed in accordance with generally
accepted accounting practices and auditing standards and submit a copy of each annual
audit report to the department.

Sec. 17.

Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter
189, article 7, section 8, is amended to read:


Sec. 14. ASSIGNED RISK TRANSFER.

(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an
audit that there is an excess surplus in the assigned risk plan created under Minnesota
Statutes, section 79.252, the commissioner of management and budget shall transfer the
amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer
occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
paragraph (a), clause (1). This is a onetime transfer.

(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce
determines on the basis of an audit that there is an excess surplus in the assigned risk plan
created under Minnesota Statutes, section 79.252, the commissioner of management and
budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year,
to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423.
This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251,
subdivision 1
, paragraph (a), clause (1), but after the transfer transfers authorized in paragraph
paragraphs
(a) and (f). The total amount authorized for all transfers under this paragraph
must not exceed $24,100,000. This paragraph expires the day following the transfer in which
the total amount transferred under this paragraph to the Minnesota minerals 21st century
fund equals $24,100,000.

(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an
audit that there is an excess surplus in the assigned risk plan created under Minnesota
Statutes, section 79.252, the commissioner of management and budget shall transfer the
amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a
transfer occurs under this paragraph, the amount transferred is appropriated from the general
fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section
15. Both the transfer and appropriation under this paragraph are onetime.

(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an
audit that there is an excess surplus in the assigned risk plan created under Minnesota
Statutes, section 79.252, the commissioner of management and budget shall transfer the
amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a
transfer occurs under this paragraph, the amount transferred is appropriated from the general
fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section
15. Both the transfer and appropriation under this paragraph are onetime.

(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of
management and budget shall transfer to the general fund, any unencumbered or unexpended
balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or
the date the commissioner of commerce determines that an excess surplus in the assigned
risk plan does not exist, whichever occurs earlier.

(f) By June 30, 2017, and each year thereafter, if the commissioner of commerce
determines on the basis of an audit that there is an excess surplus in the assigned risk plan
created under Minnesota Statutes, section 79.252, the commissioner of management and
budget shall transfer the amount of the excess surplus, not to exceed $2,000,000 each year,
to the rural policy and development center fund under Minnesota Statutes, section 116J.4221.
This transfer occurs prior to any transfer under paragraph (b) or under Minnesota Statutes,
section 79.251, subdivision 1, paragraph (a), clause (1). The total amount authorized for all
transfers under this paragraph must not exceed $2,000,000. This paragraph expires the day
following the transfer in which the total amount transferred under this paragraph to the rural
policy and development center fund equals $2,000,000.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 18.

Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 6, is
amended to read:


Subd. 6.

Vocational Rehabilitation

Appropriations by Fund
General
22,611,000
21,611,000
Workforce
Development
7,830,000
7,830,000

(a) $10,800,000 each year is from the general
fund for the state's vocational rehabilitation
program under Minnesota Statutes, chapter
268A.

(b) $2,261,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
268A.11.

(c) $5,745,000 each year from the general fund
and $6,830,000 each year from the workforce
development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15.

(d) $250,000 in fiscal year 2016 and $250,000
in fiscal year 2017 are for rate increases to
providers of extended employment services
for persons with severe disabilities under
Minnesota Statutes, section 268A.15. This
appropriation is added to the agency's base.

(e) $2,555,000 each year is from the general
fund for grants to programs that provide
employment support services to persons with
mental illness under Minnesota Statutes,
sections 268A.13 and 268A.14.

(f) $1,000,000 each year is from the workforce
development fund for grants under Minnesota
Statutes, section 268A.16, for employment
services for persons, including transition-aged
youth, who are deaf, deafblind, or
hard-of-hearing. If the amount in the first year
is insufficient, the amount in the second year
is available in the first year.

(g) $1,000,000 in fiscal year 2016 is for a
grant to Assistive Technology of Minnesota,
a statewide nonprofit organization that is
exclusively dedicated to the issues of access
to and the acquisition of assistive technology.
The purpose of the grant is to acquire assistive
technology and to work in tandem with
individuals using this technology to create
career paths
Assistive Technology of
Minnesota must use the funds to provide
low-interest loans to individuals of all ages
and types of disabilities to purchase assistive
technology and employment-related
equipment
. This is a onetime appropriation
and is available until June 30, 2019
.

(h) For purposes of this subdivision,
Minnesota Diversified Industries, Inc. is an
eligible provider of services for persons with
severe disabilities under Minnesota Statutes,
section 268A.15.

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2015.

Sec. 19.

Laws 2016, chapter 189, article 7, section 46, subdivision 3, is amended to read:


Subd. 3.

Qualification requirements.

To qualify for assistance under this section, a
business must:

(1) be located within one of the following municipalities surrounding Lake Mille Lacs:

(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
Roosevelt;

(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of
Malmo, or township of Lakeside; or

(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of
East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;

(2) document a reduction of at least ten five percent in gross receipts in any two-year
period since 2010; and

(3) be a business in one of the following industries, as defined within the North American
Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
historical sites, health and personal care, gas station, general merchandise, business and
professional membership, movies, or nonstore retailer, as determined by Mille Lacs County
in consultation with the commissioner of employment and economic development.

Sec. 20.

Laws 2016, chapter 189, article 7, section 46, the effective date, is amended to
read:


EFFECTIVE DATE.

This section, except for subdivision 4, is effective July 1, 2016,
and expires June 30, 2017 2018. Subdivision 4 is effective July 1, 2016, and expires on the
date the last loan is repaid or forgiven as provided under this section.

Sec. 21. EMERGING ENTREPRENEUR PROGRAM APPROPRIATIONS
CANCELLATIONS.

All unspent funds, estimated to be $376,000, appropriated in Laws 2016, chapter 189,
article 7, section 2, subdivision 2, paragraph (h), clause (7), and Laws 2016, chapter 189,
article 12, section 2, subdivision 2, paragraph (p), are canceled to the general fund.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 22. GREATER MINNESOTA COMMUNITY DESIGN PILOT PROJECT.

Subdivision 1.

Creation.

The Minnesota Design Center at the University of Minnesota
shall partner with relevant organizations in selected communities within greater Minnesota
to establish a pilot project for community design. The pilot project shall identify current
and future opportunities for rural development, create designs, seek funding from existing
sources, and assist with the implementation of economically, environmentally, and culturally
sensitive projects that respond to current community conditions, needs, capabilities, and
aspirations in support of the selected communities. For the purposes of this section, "greater
Minnesota" is limited to the following counties: Blue Earth, Brown, Dodge, Faribault,
Fillmore, Freeborn, Goodhue, Houston, Le Sueur, Martin, Mower, Olmsted, Rice, Sibley,
Steele, Wabasha, Waseca, Watonwan, and Winona.

Subd. 2.

Community selection.

In order to be considered for inclusion in the pilot
project, communities with fewer than 12,000 residents within the counties listed in
subdivision 1 must submit a letter of interest to the Minnesota Design Center. The Minnesota
Design Center may choose up to ten communities for participation in the pilot project.

Subd. 3.

Pilot project activities.

Among other activities, the Minnesota Design Center,
in partnership with relevant organizations within the selected communities, shall:

(1) assess community capacity to engage in design, development, and implementation;

(2) create community and project designs that respond to a community's culture and
needs, reinforce its identity as a special place, and support its future aspirations;

(3) create an implementation strategy; and

(4) build capacity to implement design work by identifying potential funding strategies
and sources and assisting in grant writing to secure funding.

Sec. 23. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT;
MANDATED REPORT HOLIDAY.

(a) Notwithstanding any law to the contrary, any report required by state law from the
Department of Employment and Economic Development that is due in fiscal year 2018 or
2019 is optional. The commissioner of employment and economic development may produce
any reports at the commissioner's discretion or as may be required by federal law.

(b) This section does not apply to workforce programs outcomes reporting under
Minnesota Statutes, section 116L.98, or the agency activity and expenditure report under
article 12, section 3.

Sec. 24. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA
INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.

(a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or
statutory city, county, or town that has uncommitted money received from repayment of
funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20
percent of the balance of that money to the state general fund before June 30, 2018. Any
local entity that does so may then use the remaining 80 percent of the uncommitted money
as a general purpose aid for any lawful expenditure.

(b) By February 15, 2019, a home rule charter or statutory city, county, or town that
exercises the option under paragraph (a) shall submit to the chairs of the legislative
committees with jurisdiction over economic development policy and finance an accounting
and explanation of the use and distribution of the funds.

Sec. 25. GETTING TO WORK GRANT PROGRAM.

Subdivision 1.

Creation.

The commissioner of employment and economic development
shall make grants to nonprofit organizations to establish and operate programs under this
section that provide, repair, or maintain motor vehicles to assist eligible individuals to obtain
or maintain employment.

Subd. 2.

Qualified grantee.

A grantee must:

(1) qualify under section 501(c)(3) of the Internal Revenue Code; and

(2) at the time of application offer, or have the demonstrated capacity to offer, a motor
vehicle program that provides the services required under subdivision 3.

Subd. 3.

Program requirements.

(a) A program must offer one or more of the following
services:

(1) provision of new or used motor vehicles by gift, sale, or lease;

(2) motor vehicle repair and maintenance services; or

(3) motor vehicle loans.

(b) In addition to the requirements of paragraph (a), a program must offer one or more
of the following services:

(1) financial literacy education;

(2) education on budgeting for vehicle ownership;

(3) car maintenance and repair instruction;

(4) credit counseling; or

(5) job training related to motor vehicle maintenance and repair.

Subd. 4.

Application.

Applications for a grant must be on a form provided by the
commissioner and on a schedule set by the commissioner. Applications must, in addition
to any other information required by the commissioner, include the following:

(1) a detailed description of all services to be offered;

(2) the area to be served;

(3) the estimated number of program participants to be served by the grant; and

(4) a plan for leveraging resources from partners that may include, but are not limited
to:

(i) automobile dealers;

(ii) automobile parts dealers;

(iii) independent local mechanics and automobile repair facilities;

(iv) banks and credit unions;

(v) employers;

(vi) employment and training agencies;

(vii) insurance companies and agents;

(viii) local workforce centers; and

(ix) educational institutions including vocational institutions and jobs or skills training
programs.

Subd. 5.

Participant eligibility.

(a) To be eligible to receive program services, a person
must:

(1) have a household income at or below 200 percent of the federal poverty level;

(2) be at least 22 years of age;

(3) have a valid driver's license;

(4) provide the grantee with proof of motor vehicle insurance; and

(5) demonstrate to the grantee that a motor vehicle is required by the person to obtain
or maintain employment.

(b) This subdivision does not preclude a grantee from imposing additional requirements,
not inconsistent with paragraph (a), for the receipt of program services.

Subd. 6.

Report to legislature.

By February 15, 2019, the commissioner shall submit
a report to the chairs of the house of representatives and senate committees with jurisdiction
over workforce and economic development on program outcomes. At a minimum, the report
must include:

(1) the total number of program participants;

(2) the number of program participants who received each of the following:

(i) provision of a motor vehicle;

(ii) motor vehicle repair services; and

(iii) motor vehicle loans;

(3) the number of program participants who report that they or their children were able
to increase their participation in community activities such as after school programs, other
youth programs, church or civic groups, or library services as a result of participation in the
program; and

(4) an analysis of the impact of the getting to work grant program on the employment
rate and wages of program participants.

Sec. 26. ECONOMIC IMPACT STUDY OF BIOMASS FACILITY CLOSURE.

The commissioner of employment and economic development shall conduct a study to
examine the economic impact of the closure of a biomass facility located in the city of
Benson that uses poultry litter to generate electricity. In conducting the study, the
commissioner must analyze the impact of the closure of the biomass facility on employment
and income in the local economy, including impacts on ancillary providers of goods and
services to the biomass facility. The commissioner must report study findings to the
legislature by February 15, 2018.

Sec. 27. USE OF UNALLOCATED FUNDS.

(a) Notwithstanding Minnesota Statutes, sections 116L.05, subdivision 5, and 116L.20,
subdivision 2, in fiscal years 2018 and 2019 only, the unallocated workforce development
funds appropriated to the Job Skills Partnership Board under Minnesota Statutes, section
116L.20, subdivision 2, paragraph (b), may be used for other job creation and economic
enhancement opportunities in Minnesota at the discretion of the commissioner.

(b) Notwithstanding Minnesota Statutes, section 116J.8731, in fiscal years 2018 and
2019 only, funds appropriated to the commissioner for the Minnesota investment fund may
be used for other job creation and economic enhancement opportunities in Minnesota at the
discretion of the commissioner. Grants under this paragraph are not subject to the grant
amount limitation under Minnesota Statutes, section 116J.8731.

(c) Notwithstanding Minnesota Statutes, section 116J.748, in fiscal years 2018 and 2019
only, funds appropriated to the commissioner for the job creation fund may be used for
other job creation and economic enhancement opportunities in Minnesota at the discretion
of the commissioner.

Sec. 28. REPEALER.

Minnesota Statutes 2016, section 116J.549, and

Minnesota Rules, parts 4355.0100;
4355.0200; 4355.0300; 4355.0400; and 4355.0500,
are repealed.

ARTICLE 7

IRON RANGE RESOURCES AND REHABILITATION POLICY

Section 1.

Minnesota Statutes 2016, section 3.732, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

As used in this section and section 3.736 the terms defined
in this section have the meanings given them.

(1) "State" includes each of the departments, boards, agencies, commissions, courts, and
officers in the executive, legislative, and judicial branches of the state of Minnesota and
includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
Education, the Higher Education Facilities Authority, the Health Technology Advisory
Committee, the Armory Building Commission, the Zoological Board, the Department of
Iron Range Resources and Rehabilitation Board, the Minnesota Historical Society, the State
Agricultural Society, the University of Minnesota, the Minnesota State Colleges and
Universities, state hospitals, and state penal institutions. It does not include a city, town,
county, school district, or other local governmental body corporate and politic.

(2) "Employee of the state" means all present or former officers, members, directors, or
employees of the state, members of the Minnesota National Guard, members of a bomb
disposal unit approved by the commissioner of public safety and employed by a municipality
defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
municipality but within the state, or persons acting on behalf of the state in an official
capacity, temporarily or permanently, with or without compensation. It does not include
either an independent contractor except, for purposes of this section and section 3.736 only,
a guardian ad litem acting under court appointment, or members of the Minnesota National
Guard while engaged in training or duty under United States Code, title 10, or title 32,
section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
of the state" includes a district public defender or assistant district public defender in the
Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
and any officer, agent, or employee of the state of Wisconsin performing work for the state
of Minnesota pursuant to a joint state initiative.

(3) "Scope of office or employment" means that the employee was acting on behalf of
the state in the performance of duties or tasks lawfully assigned by competent authority.

(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

Sec. 2.

Minnesota Statutes 2016, section 3.736, subdivision 3, is amended to read:


Subd. 3.

Exclusions.

Without intent to preclude the courts from finding additional cases
where the state and its employees should not, in equity and good conscience, pay
compensation for personal injuries or property losses, the legislature declares that the state
and its employees are not liable for the following losses:

(a) a loss caused by an act or omission of a state employee exercising due care in the
execution of a valid or invalid statute or rule;

(b) a loss caused by the performance or failure to perform a discretionary duty, whether
or not the discretion is abused;

(c) a loss in connection with the assessment and collection of taxes;

(d) a loss caused by snow or ice conditions on a highway or public sidewalk that does
not abut a publicly owned building or a publicly owned parking lot, except when the condition
is affirmatively caused by the negligent acts of a state employee;

(e) a loss caused by wild animals in their natural state, except as provided in section
3.7371;

(f) a loss other than injury to or loss of property or personal injury or death;

(g) a loss caused by the condition of unimproved real property owned by the state, which
means land that the state has not improved, state land that contains idled or abandoned mine
pits or shafts, and appurtenances, fixtures, and attachments to land that the state has neither
affixed nor improved;

(h) a loss involving or arising out of the use or operation of a recreational motor vehicle,
as defined in section 84.90, subdivision 1, within the right-of-way of a trunk highway, as
defined in section 160.02, except that the state is liable for conduct that would entitle a
trespasser to damages against a private person;

(i) a loss incurred by a user arising from the construction, operation, or maintenance of
the outdoor recreation system, as defined in section 86A.04, or for a loss arising from the
construction, operation, maintenance, or administration of grants-in-aid trails as defined in
section 85.018, or for a loss arising from the construction, operation, or maintenance of a
water access site created by the Department of Iron Range Resources and Rehabilitation
Board, except that the state is liable for conduct that would entitle a trespasser to damages
against a private person. For the purposes of this clause, a water access site, as defined in
section 86A.04 or created by the commissioner of Iron Range resources and rehabilitation
Board, that provides access to an idled, water filled mine pit, also includes the entire water
filled area of the pit and, further, includes losses caused by the caving or slumping of the
mine pit walls;

(j) a loss of benefits or compensation due under a program of public assistance or public
welfare, except if state compensation for loss is expressly required by federal law in order
for the state to receive federal grants-in-aid;

(k) a loss based on the failure of a person to meet the standards needed for a license,
permit, or other authorization issued by the state or its agents;

(l) a loss based on the usual care and treatment, or lack of care and treatment, of a person
at a state hospital or state corrections facility where reasonable use of available appropriations
has been made to provide care;

(m) loss, damage, or destruction of property of a patient or inmate of a state institution
except as provided under section 3.7381;

(n) a loss for which recovery is prohibited by section 169A.48, subdivision 2;

(o) a loss caused by an aeration, bubbler, water circulation, or similar system used to
increase dissolved oxygen or maintain open water on the ice of public waters, that is operated
under a permit issued by the commissioner of natural resources;

(p) a loss incurred by a visitor to the Minnesota Zoological Garden, except that the state
is liable for conduct that would entitle a trespasser to damages against a private person;

(q) a loss arising out of a person's use of a logging road on public land that is maintained
exclusively to provide access to timber on that land by harvesters of the timber, and is not
signed or otherwise held out to the public as a public highway; and

(r) a loss incurred by a user of property owned, leased, or otherwise controlled by the
Minnesota National Guard or the Department of Military Affairs, except that the state is
liable for conduct that would entitle a trespasser to damages against a private person.

The state will not pay punitive damages.

Sec. 3.

Minnesota Statutes 2016, section 15.01, is amended to read:


15.01 DEPARTMENTS OF THE STATE.

The following agencies are designated as the departments of the state government: the
Department of Administration; the Department of Agriculture; the Department of Commerce;
the Department of Corrections; the Department of Education; the Department of Employment
and Economic Development; the Department of Health; the Department of Human Rights;
the Department of Iron Range Resources and Rehabilitation;
the Department of Labor and
Industry; the Department of Management and Budget; the Department of Military Affairs;
the Department of Natural Resources; the Department of Public Safety; the Department of
Human Services; the Department of Revenue; the Department of Transportation; the
Department of Veterans Affairs; and their successor departments.

Sec. 4.

Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:


Subd. 7.

Department of Iron Range Resources and Rehabilitation Board.

After
seeking a recommendation from the Iron Range Resources and Rehabilitation Board,
the
commissioner of Iron Range resources and rehabilitation Board may purchase insurance it
considers
the commissioner deems necessary and appropriate to insure facilities operated
by the board commissioner.

Sec. 5.

Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:


Subd. 3.

Group II salary limits.

The salary for a position listed in this subdivision shall
not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
on January 1. The new limit must equal the limit for the prior year increased by the percentage
increase, if any, in the Consumer Price Index for all urban consumers from October of the
second prior year to October of the immediately prior year. The commissioner of management
and budget must publish the limit on the department's Web site. This subdivision applies
to the following positions:

Executive director of Gambling Control Board;

Commissioner, of Iron Range resources and rehabilitation Board;

Commissioner, Bureau of Mediation Services;

Ombudsman for Mental Health and Developmental Disabilities;

Chair, Metropolitan Council;

School trust lands director;

Executive director of pari-mutuel racing; and

Commissioner, Public Utilities Commission.

Sec. 6.

Minnesota Statutes 2016, section 43A.02, subdivision 22, is amended to read:


Subd. 22.

Executive branch.

"Executive branch" means heads of all agencies of state
government, elective or appointive, established by statute or Constitution and all employees
of those agency heads who have within their particular field of responsibility statewide
jurisdiction and who are not within the legislative or judicial branches of government. The
executive branch also includes employees of the Department of Iron Range Resources and
Rehabilitation Board. The executive branch does not include agencies with jurisdiction in
specifically defined geographical areas, such as regions, counties, cities, towns,
municipalities, or school districts, the University of Minnesota, the Public Employees
Retirement Association, the Minnesota State Retirement System, the Teachers Retirement
Association, the Minnesota Historical Society, and all of their employees, and any other
entity which is incorporated, even though it receives state funds.

Sec. 7.

Minnesota Statutes 2016, section 85.0146, subdivision 1, is amended to read:


Subdivision 1.

Advisory council created.

The Cuyuna Country State Recreation Area
Citizens Advisory Council is established. Membership on the advisory council shall include:

(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board;

(2) a representative of the Croft Mine Historical Park Joint Powers Board;

(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked
as a miner in the local area;

(4) a representative of the Crow Wing County Board;

(5) an elected state official;

(6) a representative of the Grand Rapids regional office of the Department of Natural
Resources;

(7) a designee of the commissioner of Iron Range resources and rehabilitation Board;

(8) a designee of the local business community selected by the area chambers of
commerce;

(9) a designee of the local environmental community selected by the Crow Wing County
District 5 commissioner;

(10) a designee of a local education organization selected by the Crosby-Ironton School
Board;

(11) a designee of one of the recreation area user groups selected by the Cuyuna Range
Chamber of Commerce; and

(12) a member of the Cuyuna Country Heritage Preservation Society.

Sec. 8.

Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read:


Subd. 1a.

Definitions.

For the purposes of this chapter, the following terms have the
meanings given to them in this subdivision.

(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4.

(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02,
subdivision 5
.

(c) "Environmental assessment worksheet" means a brief document which is designed
to set out the basic facts necessary to determine whether an environmental impact statement
is required for a proposed action.

(d) "Governmental action" means activities, including projects wholly or partially
conducted, permitted, assisted, financed, regulated, or approved by units of government
including the federal government.

(e) "Governmental unit" means any state agency and any general or special purpose unit
of government in the state including, but not limited to, watershed districts organized under
chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic
development authorities established under sections 469.090 to 469.108, but not including
courts, school districts, the Department of Iron Range Resources and Rehabilitation, and
regional development commissions other than the Metropolitan Council.

Sec. 9.

Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:


Subd. 2.

Use of fund.

The commissioner shall use money in the fund to make loans or ,
including forgivable loans,
equity investments, or grants for infrastructure in mineral, steel,
or any other industry processing, production, manufacturing, or technology project that
would enhance the economic diversification and that is located within the taconite relief
tax assistance area as defined under section 273.134 273.1341. The commissioner must,
prior to making any loans or equity investments and after consultation with industry and
public officials, develop a strategy for making loans and , equity investments, or grants for
infrastructure
that assists the taconite relief assistance area in retaining and enhancing its
economic competitiveness. Money in the fund may also be used to pay for the costs of
carrying out the commissioner's due diligence duties under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 10.

Minnesota Statutes 2016, section 116J.424, is amended to read:


116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
CONTRIBUTION.

The commissioner of the Iron Range resources and rehabilitation Board with approval
by the board
, after consultation with the Iron Range Resources and Rehabilitation Board,
may provide an equal match for any loan or equity investment made for a project located
in the tax relief taconite assistance area defined in section 273.134, paragraph (b) 273.1341,
by the Minnesota 21st century fund created by section 116J.423. The match may be in the
form of a loan or equity investment, notwithstanding whether the fund makes a loan or
equity investment. The state shall not acquire an equity interest because of an equity
investment or loan by the board and the board at its sole discretion shall commissioner of
Iron Range resources and rehabilitation and the commissioner of Iron Range resources and
rehabilitation, after consultation with the advisory board, shall have sole discretion to
decide
what interest it the fund acquires in a project. The commissioner of employment and
economic development may require a commitment from the board commissioner of Iron
Range resources and rehabilitation
to make the match prior to disbursing money from the
fund.

Sec. 11.

Minnesota Statutes 2016, section 116J.994, subdivision 3, is amended to read:


Subd. 3.

Subsidy agreement.

(a) A recipient must enter into a subsidy agreement with
the grantor of the subsidy that includes:

(1) a description of the subsidy, including the amount and type of subsidy, and type of
district if the subsidy is tax increment financing;

(2) a statement of the public purposes for the subsidy;

(3) measurable, specific, and tangible goals for the subsidy;

(4) a description of the financial obligation of the recipient if the goals are not met;

(5) a statement of why the subsidy is needed;

(6) a commitment to continue operations in the jurisdiction where the subsidy is used
for at least five years after the benefit date;

(7) the name and address of the parent corporation of the recipient, if any; and

(8) a list of all financial assistance by all grantors for the project.

(b) Business subsidies in the form of grants must be structured as forgivable loans. For
other types of business subsidies, the agreement must state the fair market value of the
subsidy to the recipient, including the value of conveying property at less than a fair market
price, or other in-kind benefits to the recipient.

(c) If a business subsidy benefits more than one recipient, the grantor must assign a
proportion of the business subsidy to each recipient that signs a subsidy agreement. The
proportion assessed to each recipient must reflect a reasonable estimate of the recipient's
share of the total benefits of the project.

(d) The state or local government agency and the recipient must both sign the subsidy
agreement and, if the grantor is a local government agency, the agreement must be approved
by the local elected governing body, except for the St. Paul Port Authority and a seaway
port authority.

(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be
authorized to move from the jurisdiction where the subsidy is used within the five-year
period after the benefit date if, after a public hearing, the grantor approves the recipient's
request to move. For the purpose of this paragraph, if the grantor is a state government
agency other than the Department of Iron Range Resources and Rehabilitation Board,
"jurisdiction" means a city or township.

Sec. 12.

Minnesota Statutes 2016, section 116J.994, subdivision 5, is amended to read:


Subd. 5.

Public notice and hearing.

(a) Before granting a business subsidy that exceeds
$500,000 for a state government grantor and $150,000 for a local government grantor, the
grantor must provide public notice and a hearing on the subsidy. A public hearing and notice
under this subdivision is not required if a hearing and notice on the subsidy is otherwise
required by law.

(b) Public notice of a proposed business subsidy under this subdivision by a state
government grantor, other than the commissioner of Iron Range resources and rehabilitation
Board, must be published in the State Register. Public notice of a proposed business subsidy
under this subdivision by a local government grantor or the commissioner of Iron Range
resources and rehabilitation Board must be published in a local newspaper of general
circulation. The public notice must identify the location at which information about the
business subsidy, including a summary of the terms of the subsidy, is available. Published
notice should be sufficiently conspicuous in size and placement to distinguish the notice
from the surrounding text. The grantor must make the information available in printed paper
copies and, if possible, on the Internet. The government agency must provide at least a
ten-day notice for the public hearing.

(c) The public notice must include the date, time, and place of the hearing.

(d) The public hearing by a state government grantor other than the commissioner of
Iron Range resources and rehabilitation Board must be held in St. Paul.

(e) If more than one nonstate grantor provides a business subsidy to the same recipient,
the nonstate grantors may designate one nonstate grantor to hold a single public hearing
regarding the business subsidies provided by all nonstate grantors. For the purposes of this
paragraph, "nonstate grantor" includes the commissioner of Iron Range resources and
rehabilitation Board.

(f) The public notice of any public meeting about a business subsidy agreement, including
those required by this subdivision and by subdivision 4, must include notice that a person
with residence in or the owner of taxable property in the granting jurisdiction may file a
written complaint with the grantor if the grantor fails to comply with sections 116J.993 to
116J.995, and that no action may be filed against the grantor for the failure to comply unless
a written complaint is filed.

Sec. 13.

Minnesota Statutes 2016, section 116J.994, subdivision 7, is amended to read:


Subd. 7.

Reports by recipients to grantors.

(a) A business subsidy grantor must monitor
the progress by the recipient in achieving agreement goals.

(b) A recipient must provide information regarding goals and results for two years after
the benefit date or until the goals are met, whichever is later. If the goals are not met, the
recipient must continue to provide information on the subsidy until the subsidy is repaid.
The information must be filed on forms developed by the commissioner in cooperation with
representatives of local government. Copies of the completed forms must be sent to the
local government agency that provided the subsidy or to the commissioner if the grantor is
a state agency. If the commissioner of Iron Range resources and rehabilitation Board is the
grantor, the copies must be sent to the board commissioner of Iron Range resources and
rehabilitation
. The report must include:

(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy
is tax increment financing;

(2) the hourly wage of each job created with separate bands of wages;

(3) the sum of the hourly wages and cost of health insurance provided by the employer
with separate bands of wages;

(4) the date the job and wage goals will be reached;

(5) a statement of goals identified in the subsidy agreement and an update on achievement
of those goals;

(6) the location of the recipient prior to receiving the business subsidy;

(7) the number of employees who ceased to be employed by the recipient when the
recipient relocated to become eligible for the business subsidy;

(8) why the recipient did not complete the project outlined in the subsidy agreement at
their previous location, if the recipient was previously located at another site in Minnesota;

(9) the name and address of the parent corporation of the recipient, if any;

(10) a list of all financial assistance by all grantors for the project; and

(11) other information the commissioner may request.

A report must be filed no later than March 1 of each year for the previous year. The local
agency and the commissioner of Iron Range resources and rehabilitation Board must forward
copies of the reports received by recipients to the commissioner by April 1.

(c) Financial assistance that is excluded from the definition of "business subsidy" by
section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting
requirements of this subdivision, except that the report of the recipient must include instead:

(1) the type, public purpose, and amount of the financial assistance, and type of district
if the assistance is tax increment financing;

(2) progress towards meeting goals stated in the assistance agreement and the public
purpose of the assistance;

(3) if the agreement includes job creation, the hourly wage of each job created with
separate bands of wages;

(4) if the agreement includes job creation, the sum of the hourly wages and cost of health
insurance provided by the employer with separate bands of wages;

(5) the location of the recipient prior to receiving the assistance; and

(6) other information the grantor requests.

(d) If the recipient does not submit its report, the local government agency must mail
the recipient a warning within one week of the required filing date. If, after 14 days of the
postmarked date of the warning, the recipient fails to provide a report, the recipient must
pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The
maximum penalty shall not exceed $1,000.

Sec. 14.

Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them in this subdivision.

(b) "Area development rate" means a rate schedule established by a utility that provides
customers within an area development zone service under a base utility rate schedule, except
that charges may be reduced from the base rate as agreed upon by the utility and the customer
consistent with this section.

(c) "Area development zone" means a contiguous or noncontiguous area designated by
an authority or municipality for development or redevelopment and within which one of
the following conditions exists:

(1) obsolete buildings not suitable for improvement or conversion or other identified
hazards to the health, safety, and general well-being of the community;

(2) buildings in need of substantial rehabilitation or in substandard condition; or

(3) low values and damaged investments.

(d) "Authority" means a rural development financing authority established under sections
469.142 to 469.151; a housing and redevelopment authority established under sections
469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an
economic development authority established under sections 469.090 to 469.108; a
redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron
Range resources and rehabilitation Board established under section 298.22; a municipality
that is administering a development district created under sections 469.124 to 469.133 or
any special law; a municipality that undertakes a project under sections 469.152 to 469.165,
except a town located outside the metropolitan area as defined in section 473.121, subdivision
2
, or with a population of 5,000 persons or less; or a municipality that exercises the powers
of a port authority under any general or special law.

(e) "Municipality" means a city, however organized, and, with respect to a project
undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008,
also includes any county.

Sec. 15.

Minnesota Statutes 2016, section 216B.1694, subdivision 1, is amended to read:


Subdivision 1.

Definition.

For the purposes of this section, the term "innovative energy
project" means a proposed energy-generation facility or group of facilities which may be
located on up to three sites:

(1) that makes use of an innovative generation technology utilizing coal as a primary
fuel in a highly efficient combined-cycle configuration with significantly reduced sulfur
dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional
technologies;

(2) that the project developer or owner certifies is a project capable of offering a long-term
supply contract at a hedged, predictable cost; and

(3) that is designated by the commissioner of the Iron Range resources and rehabilitation
Board as a project that is located in the taconite tax relief area on a site that has substantial
real property with adequate infrastructure to support new or expanded development and
that has received prior financial and other support from the board.

Sec. 16.

Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:


Subd. 8.

Municipality.

"Municipality" means a city, town, or township located in whole
or part within the area. If a municipality is located partly within and partly without the area,
the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to
taxation or taxing jurisdiction within the municipality are to the property or portion thereof
that is located in that portion of the municipality within the area, except that the fiscal
capacity of the municipality must be computed upon the basis of the valuation and population
of the entire municipality. A municipality shall be excluded from the area if its municipal
comprehensive zoning and planning policies conscientiously exclude most
commercial-industrial development, for reasons other than preserving an agricultural use.
The commissioner of Iron Range resources and rehabilitation Board and the commissioner
of revenue shall jointly make this determination annually and shall notify those municipalities
that are ineligible to participate in the tax base sharing program provided in this chapter for
the following year. Before making the determination, the commissioner of Iron Range
resources and rehabilitation must consult the Iron Range Resources and Rehabilitation
Board.

Sec. 17.

Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:


Subd. 17.

School fund allocation.

(a) "School fund allocation" means an amount up to
25 percent of the areawide levy certified by the commissioner of Iron Range resources and
rehabilitation Board , after consultation with the Iron Range Resources and Rehabilitation
Board,
to be used for the purposes of the Iron Range school consolidation and cooperatively
operated school account under section 298.28, subdivision 7a.

(b) The allocation under paragraph (a) shall only be made after the commissioner of
Iron Range resources and rehabilitation Board , after consultation with the Iron Range
Resources and Rehabilitation Board,
has certified by June 30 that the Iron Range school
consolidation and cooperatively operated account has insufficient funds to make payments
as authorized under section 298.28, subdivision 7a.

Sec. 18.

Minnesota Statutes 2016, section 276A.06, subdivision 8, is amended to read:


Subd. 8.

Certification of values; payment.

The administrative auditor shall determine
for each county the difference between the total levy on distribution value pursuant to
subdivision 3, clause (1), including the school fund allocation within the county and the
total tax on contribution value pursuant to subdivision 7, within the county. On or before
May 16 of each year, the administrative auditor shall certify the differences so determined
and the county's portion of the school fund allocation to each county auditor. In addition,
the administrative auditor shall certify to those county auditors for whose county the total
tax on contribution value exceeds the total levy on distribution value the settlement the
county is to make to the other counties of the excess of the total tax on contribution value
over the total levy on distribution value in the county. On or before June 15 and November
15 of each year, each county treasurer in a county having a total tax on contribution value
in excess of the total levy on distribution value shall pay one-half of the excess to the other
counties in accordance with the administrative auditor's certification. On or before June 15
and November 15 of each year, each county treasurer shall pay to the administrative auditor
that county's share of the school fund allocation. On or before December 1 of each year,
the administrative auditor shall pay the school fund allocation to the commissioner of Iron
Range resources and rehabilitation Board for deposit in the Iron Range school consolidation
and cooperatively operated account.

Sec. 19.

Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:


Subdivision 1.

Development.

In any county where the county board by proper resolution
sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or
section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation
with the approval of the board , after consultation with the Iron Range Resources and
Rehabilitation Board,
may upon request of the county board assist said county in carrying
out any project for the long range development of its forest resources through matching of
funds or otherwise.

Sec. 20.

Minnesota Statutes 2016, section 282.38, subdivision 3, is amended to read:


Subd. 3.

Not to affect commissioner of Iron Range resources and rehabilitation.

Nothing herein shall be construed to limit or abrogate the authority of the commissioner of
Iron Range resources and rehabilitation to give temporary assistance to any county in the
development of its land use program.

Sec. 21.

Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:


Subd. 8.

Commissioner.

"Commissioner" means the commissioner of revenue of the
state of Minnesota, except that when used in sections 298.22 to 298.227 and 298.291 to
298.297, "commissioner" means the commissioner of Iron Range resources and rehabilitation
.

Sec. 22.

Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision
to read:


Subd. 12.

Advisory board.

"Advisory board" means the Iron Range Resources and
Rehabilitation Board, as established under section 298.22. The acronym "IRRRB" means
the advisory board.

Sec. 23.

Minnesota Statutes 2016, section 298.018, subdivision 1, is amended to read:


Subdivision 1.

Within taconite assistance area.

The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:

(1) five percent to the city or town within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one taxing
district, the commissioner shall apportion equitably the proceeds among the cities and towns
by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction,
and the remainder to the concentrating plant and to the processes of concentration, and with
respect to each thereof giving due consideration to the relative extent of the respective
operations performed in each taxing district;

(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282;

(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);

(4) 20 percent to a group of school districts comprised of those school districts wherein
the mineral or energy resource was mined or extracted or in which there is a qualifying
municipality as defined by section 273.134, paragraph (b), in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions;

(5) 20 percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;

(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;

(7) five percent to the commissioner of Iron Range resources and rehabilitation Board
for the purposes of section 298.22;

(8) three percent to the Douglas J. Johnson economic protection trust fund; and

(9) seven percent to the taconite environmental protection fund.

The proceeds of the tax shall be distributed on July 15 each year.

Sec. 24.

Minnesota Statutes 2016, section 298.17, is amended to read:


298.17 OCCUPATION TAXES TO BE APPORTIONED.

(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
companies, corporations, and associations, however or for whatever purpose organized,
engaged in the business of mining or producing iron ore or other ores, when collected shall
be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
article X, section 3, in the manner following: 90 percent shall be deposited in the state
treasury and credited to the general fund of which four-ninths shall be used for the support
of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
by this section shall be deposited in the state treasury and credited to the general fund for
the general support of the university.

(b) Of the money apportioned to the general fund by this section: (1) there is annually
appropriated and credited to the mining environmental and regulatory account in the special
revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax
imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
Money in the mining environmental and regulatory account is appropriated annually to the
commissioner of natural resources to fund agency staff to work on environmental issues
and provide regulatory services for ferrous and nonferrous mining operations in this state.
Payment to the mining environmental and regulatory account shall be made by July 1
annually. The commissioner of natural resources shall execute an interagency agreement
with the Pollution Control Agency to assist with the provision of environmental regulatory
services such as monitoring and permitting required for ferrous and nonferrous mining
operations; (2) there is annually appropriated and credited to the Iron Range resources and
rehabilitation Board account in the special revenue fund an amount equal to that which
would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable
ton produced in the preceding calendar year, to be expended for the purposes of section
298.22; and (3) there is annually appropriated and credited to the Iron Range resources and
rehabilitation Board account in the special revenue fund for transfer to the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a
, an amount equal to that which would have been generated by a six cent tax imposed by
section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the
Iron Range resources and rehabilitation Board account shall be made by May 15 annually.

(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
which does not contain a municipality qualifying pursuant to section 273.134, paragraph
(b)
, or (ii) to provide economic development loans or grants to businesses located within
any such county, provided that the county board or an advisory group appointed by the
county board to provide recommendations on economic development shall make
recommendations to the commissioner of Iron Range resources and rehabilitation Board
regarding the loans. Payment to the Iron Range resources and rehabilitation Board account
shall be made by May 15 annually.

(d) Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commission.

Sec. 25.

Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:


Subdivision 1.

The Office of Commissioner Department of Iron Range Resources
and Rehabilitation.

(a) The Office of the Commissioner Department of Iron Range
Resources and Rehabilitation is created as an agency in the executive branch of state
government. The governor shall appoint the commissioner of Iron Range resources and
rehabilitation under section 15.06. The commissioner may expend amounts appropriated
to the commissioner for projects after consultation with the advisory board created under
subdivision 1a.

(b) The commissioner may hold other positions or appointments that are not incompatible
with duties as commissioner of Iron Range resources and rehabilitation. The commissioner
may appoint a deputy commissioner. All expenses of the commissioner, including the
payment of staff and other assistance as may be necessary, must be paid out of the amounts
appropriated by section 298.28 or otherwise made available by law to the commissioner.
Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
options available under section 471.345 when the commissioner determines it is in the best
interest of the agency. The agency is not subject to sections 16E.016 and 16C.05. The
commissioner has the authority to reimburse any nongovernmental manager operating
state-owned facilities within the Giants Ridge Recreation Area for purchasing materials,
supplies, equipment, or other items used in the operations at such facilities.

(c) When the commissioner determines that distress and unemployment exists or may
exist in the future in any county by reason of the removal of natural resources or a possibly
limited use of natural resources in the future and any resulting decrease in employment, the
commissioner may use whatever amounts of the appropriation made to the commissioner
of revenue in section 298.28 that are determined to be necessary and proper in the
development of the remaining resources of the county and in the vocational training and
rehabilitation of its residents, except that the amount needed to cover cost overruns awarded
to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in
effect after July 1, 1985, is appropriated from the general fund
. For the purposes of this
section, "development of remaining resources" includes, but is not limited to, the promotion
of tourism.

Sec. 26.

Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:


Subd. 1a.

Iron Range Resources and Rehabilitation Board.

(a) The Iron Range
Resources and Rehabilitation Board consists of the state senators and representatives elected
from state senatorial or legislative districts in which one-third or more of the residents reside
in a taconite assistance area as defined in section 273.1341. One additional state senator
shall also be appointed by the senate Subcommittee on Committees of the Committee on
Rules and Administration. All expenditures and projects made by the commissioner shall
first be submitted to the advisory board for approval. The advisory board shall recommend
approval or disapproval or modification of the expenditures and projects.
The expenses of
the advisory board shall be paid by the state from the funds raised pursuant to this section.
Members of the advisory board may be reimbursed for expenses in the manner provided in
sections 3.099, subdivision 1, and 3.101, and may receive per diem payments during the
interims between legislative sessions in the manner provided in section 3.099, subdivision
1
.

The members shall be appointed in January of every odd-numbered year, and shall serve
until January of the next odd-numbered year. Vacancies on the board shall be filled in the
same manner as original members were chosen.

(b) The advisory board must develop procedures to elect a chair who shall preside over
and convene meetings as often as necessary to conduct duties prescribed by this chapter.
The advisory board must meet at least two times per year to review the actions of the
commissioner.

Sec. 27.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 1b.

Evaluation of programs.

(a) In evaluating programs proposed by the
commissioner, the advisory board must consider factors, including but not limited to the
extent to which the program:

(1) contributes to increasing the effectiveness of promoting or managing Iron Range
economic and workforce development, community development, minerals and natural
resources development, and any other issue as determined by the advisory board; and

(2) advances the strategic plan adopted under subdivision 1c.

(b) In evaluating programs proposed by the commissioner, the advisory board must
consider factors, including but not limited to:

(1) job creation or retention goals for the program, including but not limited to wages
and benefits; whether the jobs created are full time, part time, temporary, or permanent; and
whether the stated job creation or retention goals in the program proposal can be adequately
measured using methods established by the commissioner;

(2) how and to what extent the program is expected to impact the economic climate of
the Iron Range resources and rehabilitation services area;

(3) how the program would meet match requirements, if any; and

(4) whether the program meets the written objectives, priorities, and policies established
by the commissioner.

Sec. 28.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 1c.

Strategic plan required.

The commissioner, in consultation with the advisory
board, shall adopt a four-year strategic plan for making expenditures, including identifying
the priority areas for funding for the term of the commissioner's appointment. The strategic
plan must be reviewed annually. The strategic plan must have clearly stated short- and
long-term goals and strategies for expenditures, provide measurable outcomes for
expenditures, and determine areas of emphasis for funding.

Sec. 29.

Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:


Subd. 5a.

Forest trust.

The commissioner, upon approval by the board after consultation
with the advisory board
, may purchase forest lands in the taconite assistance area defined
in under section 273.1341 with funds specifically authorized for the purchase. The acquired
forest lands must be held in trust for the benefit of the citizens of the taconite assistance
area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed
and developed for recreation and economic development purposes. The commissioner, upon
approval by the
after consultation with the advisory board, may sell forest lands purchased
under this subdivision if the board finds commissioner determines that the sale advances
the purposes of the trust. Proceeds derived from the management or sale of the lands and
from the sale of timber or removal of gravel or other minerals from these forest lands shall
be deposited into an Iron Range Miners' Memorial Forest account that is established within
the state financial accounts. Funds may be expended from the account upon approval by
the commissioner, after consultation with the advisory board, to purchase, manage,
administer, convey interests in, and improve the forest lands. With approval by the board,
After consultation with the advisory board, the commissioner may transfer
money in the
Iron Range Miners' Memorial Forest account may be transferred into the corpus of the
Douglas J. Johnson economic protection trust fund established under sections 298.291 to
298.294. The property acquired under the authority granted by this subdivision and income
derived from the property or the operation or management of the property are exempt from
taxation by the state or its political subdivisions while held by the forest trust.

Sec. 30.

Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:


Subd. 6.

Private entity participation.

The commissioner, after consultation with the
advisory
board, may acquire an equity interest in any project for which it the commissioner
provides funding. The commissioner may, after consultation with the advisory board,
establish, participate in the management of, and dispose of the assets of charitable
foundations, nonprofit limited liability companies, and nonprofit corporations associated
with any project for which it the commissioner provides funding, including specifically,
but without limitation, a corporation within the meaning of section 317A.011, subdivision
6
.

Sec. 31.

Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:


Subd. 10.

Sale or privatization of functions.

The commissioner of Iron Range resources
and rehabilitation may not sell or privatize the Ironworld Minnesota Discovery Center or
Giants Ridge Golf and Ski Resort without prior approval by the advisory board.

Sec. 32.

Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:


Subd. 11.

Budgeting.

The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget for operational expenditures, programs, and projects, and
submit it to the Iron Range Resources and Rehabilitation Board. After the budget is approved
by the advisory board and the governor, the commissioner may spend money in accordance
with the approved budget.

Sec. 33.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 13.

Grants and loans for economic development projects; requirements.

(a)
Prior to awarding any grants or approving loans from any fund or account from which the
commissioner has the authority under law to expend money, the commissioner must evaluate
applications based on criteria including, but not limited to:

(1) job creation or retention goals for the project, including but not limited to wages and
benefits, and whether the jobs created are full time, part time, temporary, or permanent;

(2) whether the applicant's stated job creation or retention goals can be adequately
measured using methods established by the commissioner;

(3) how and to what extent the project proposed by the applicant is expected to impact
the economic climate of the Iron Range resources and rehabilitation services area;

(4) how the applicant would meet match requirements, if any; and

(5) whether the project for which a grant or loan application has been submitted meets
the written objectives, priorities, and policies established by the commissioner.

(b) The commissioner, if appropriate, may include incentives in loan and grant award
agreements to promote and assist grant recipients in achieving the stated job creation and
retention objectives established by the commissioner.

(c) For all loans and grants awarded from funds under the commissioner's authority
pursuant to this chapter, the commissioner must:

(1) maintain a database for tracking loan and grant awards;

(2) maintain an objective mechanism for measuring job creation and retention;

(3) verify achievement of job creation and retention goals by grant and loan recipients;

(4) monitor grant and loan awards to ensure that projects comply with applicable Iron
Range resources and rehabilitation policies; and

(5) verify that grant or loan recipients have met applicable matching fund requirements.

Sec. 34.

Minnesota Statutes 2016, section 298.221, is amended to read:


298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.

(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant
to the terms of any contract entered into by the state under authority of section 298.22 and
any fees which may, in the discretion of the commissioner of Iron Range resources and
rehabilitation, be charged in connection with any project pursuant to that section as amended,
shall be deposited in the state treasury to the credit of the Iron Range resources and
rehabilitation Board account in the special revenue fund and are hereby appropriated for
the purposes of section 298.22.

(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner
of the Iron Range resources and rehabilitation Board for payment of advertising contracts
if the commissioner determines that the merchandise can be used for special event prizes
or mementos at facilities operated by the board commissioner. Nothing in this paragraph
authorizes the commissioner or a member of the advisory board to receive merchandise for
personal use.

(c) All fees charged by the commissioner in connection with public use of the state-owned
ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived
by the commissioner from the operation or lease of those facilities and from the lease, sale,
or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be
deposited into an Iron Range resources and rehabilitation Board account that is created
within the state enterprise fund. All funds deposited in the enterprise fund account are
appropriated to the commissioner to be expended, subject to approval by the board, and
may only be used, after consultation with the advisory board,
as follows:

(1) to pay costs associated with the construction, equipping, operation, repair, or
improvement of the Giants Ridge Recreation Area facilities or lands;

(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs
associated with the financing of the facilities; and

(3) to pay the costs of any other project authorized under section 298.22.

Sec. 35.

Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:


Subd. 3.

Project approval.

All projects authorized by this section shall be submitted
by the commissioner to the Iron Range Resources and Rehabilitation Board for approval
by the board
The commissioner may authorize a project under this section only after
consulting the advisory board
. Prior to the commencement of a project involving the exercise
by the commissioner of any authority of sections 469.174 to 469.179, the governing body
of each municipality in which any part of the project is located and the county board of any
county containing portions of the project not located in an incorporated area shall by majority
vote approve or disapprove the project. Any project approved by the board commissioner
and the applicable governing bodies, if any, together with detailed information concerning
the project, its costs, the sources of its funding, and the amount of any bonded indebtedness
to be incurred in connection with the project, shall be transmitted to the governor, who shall
approve, disapprove, or return the proposal for additional consideration within 30 days of
receipt. No project authorized under this section shall be undertaken, and no obligations
shall be issued and no tax increments shall be expended for a project authorized under this
section until the project has been approved by the governor.

Sec. 36.

Minnesota Statutes 2016, section 298.2211, subdivision 6, is amended to read:


Subd. 6.

Fee setting.

Fees for admission to or use of facilities operated by the
commissioner of Iron Range resources and rehabilitation Board that have been established
according to prevailing market conditions and to recover operating costs need not be set by
rule.

Sec. 37.

Minnesota Statutes 2016, section 298.2212, is amended to read:


298.2212 INVESTMENT OF FUNDS.

All funds credited to the Iron Range resources and rehabilitation Board account in the
special revenue fund for the purposes of section 298.22 must be invested pursuant to law.
The net interest and dividends from the investments are included and become part of the
funds available for purposes of section 298.22.

Sec. 38.

Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:


Subdivision 1.

Creation; purposes.

A fund called the taconite environmental protection
fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast
Minnesota located within the taconite assistance area defined in section 273.1341, that are
adversely affected by the environmentally damaging operations involved in mining taconite
and iron ore and producing iron ore concentrate and for the purpose of promoting the
economic development of northeast Minnesota. The taconite environmental protection fund
shall be used for the following purposes:

(1) to initiate investigations into matters the commissioner of Iron Range resources and
rehabilitation Board determines are in need of study and which will determine the
environmental problems requiring remedial action;

(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for
by state law;

(3) local economic development projects but only if those projects are approved by the
board,
and public works, including construction of sewer and water systems located within
the taconite assistance area defined in section 273.1341;

(4) monitoring of mineral industry related health problems among mining employees;
and

(5) local public works projects under section 298.227, paragraph (c).

Sec. 39.

Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:


Subd. 2.

Administration.

(a) The taconite area environmental protection fund shall be
administered by the commissioner of the Iron Range Resources and Rehabilitation Board ,
who must consult with the advisory board before expending any funds
. The commissioner
shall by September 1 of each year submit to the board a list of projects to be funded from
the taconite area environmental protection fund, with such supporting information including
description of the projects, plans, and cost estimates as may be necessary.

(b) Each year no less than one-half of the amounts deposited into the taconite
environmental protection fund must be used for public works projects, including construction
of sewer and water systems, as specified under subdivision 1, clause (3). the Iron Range
Resources and Rehabilitation Board may waive the requirements of this paragraph.

(c) Upon approval by the board, the list of projects approved under this subdivision shall
be submitted to the governor by November 1 of each year. By December 1 of each year,
the governor shall approve or disapprove, or return for further consideration, each project.
Funds for a project may be expended only upon approval of the project by the board and
the governor. The commissioner may submit supplemental projects to the board and governor
for approval at any time.

Sec. 40.

Minnesota Statutes 2016, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

(a) An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
commissioner of Iron Range resources and rehabilitation Board in a separate taconite
economic development fund for each taconite and direct reduced ore producer. Money from
the fund for each producer shall be released by the commissioner after review by a joint
committee consisting of an equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that producer. The District 11
director of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized operations, the employee
committee shall be elected by the nonsalaried production and maintenance employees. The
review must be completed no later than six months after the producer presents a proposal
for expenditure of the funds to the committee. The funds held pursuant to this section may
be released only for workforce development and associated public facility improvement,
or for acquisition of plant and stationary mining equipment and facilities for the producer
or for research and development in Minnesota on new mining, or taconite, iron, or steel
production technology, but only if the producer provides a matching expenditure equal to
the amount of the distribution to be used for the same purpose beginning with distributions
in 2014. Effective for proposals for expenditures of money from the fund beginning May
26, 2007, the commissioner may not release the funds before the next scheduled meeting
of the board. If a proposed expenditure is not approved by the commissioner, after
consultation with the advisory
board, the funds must be deposited in the Taconite
Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses money
which has been released from the fund prior to May 26, 2007 to procure haulage trucks,
mobile equipment, or mining shovels, and the producer removes the piece of equipment
from the taconite tax relief area defined in section 273.134 within ten years from the date
of receipt of the money from the fund, a portion of the money granted from the fund must
be repaid to the taconite economic development fund. The portion of the money to be repaid
is 100 percent of the grant if the equipment is removed from the taconite tax relief area
within 12 months after receipt of the money from the fund, declining by ten percent for
each of the subsequent nine years during which the equipment remains within the taconite
tax relief area.
If a taconite production facility is sold after operations at the facility had
ceased, any money remaining in the fund for the former producer may be released to the
purchaser of the facility on the terms otherwise applicable to the former producer under this
section. If a producer fails to provide matching funds for a proposed expenditure within six
months after the commissioner approves release of the funds, the funds are available for
release to another producer in proportion to the distribution provided and under the conditions
of this section. Any portion of the fund which is not released by the commissioner within
one year of its deposit in the fund shall be divided between the taconite environmental
protection fund created in section 298.223 and the Douglas J. Johnson economic protection
trust fund created in section 298.292 for placement in their respective special accounts.
Two-thirds of the unreleased funds shall be distributed to the taconite environmental
protection fund and one-third to the Douglas J. Johnson economic protection trust fund.

(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed under
paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
wood product facility located in the taconite tax relief area and in a county that contains a
city of the first class. This amount must be deducted from the distribution under paragraph
(a) for which a matching expenditure by the producer is not required. The granting of the
loan or grant is subject to approval by the board. If the money is provided as a loan, interest
must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii)
Repayments of the loan and interest, if any, must be deposited in the taconite environment
protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this
paragraph by July 1, 2012, the amount that had been made available for the loan under this
paragraph must be transferred to the taconite environment protection fund under sections
298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section
that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a
pro rata basis.

(c) Repayment or transfer of money to the taconite environmental protection fund under
paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
Board for public works projects in house legislative districts in the same proportion as
taxable tonnage of production in 2007 in each house legislative district, for distribution in
2008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
Notwithstanding any other law to the contrary, expenditures under this paragraph do not
require approval by the governor. For purposes of this paragraph, "house legislative districts"
means the legislative districts in existence on May 15, 2009.

Sec. 41.

Minnesota Statutes 2016, section 298.27, is amended to read:


298.27 COLLECTION AND PAYMENT OF TAX.

The taxes provided by section 298.24 shall be paid directly to each eligible county and
the commissioner of Iron Range resources and rehabilitation Board. The commissioner of
revenue shall notify each producer of the amount to be paid each recipient prior to February
15. Every person subject to taxes imposed by section 298.24 shall file a correct report
covering the preceding year. The report must contain the information required by the
commissioner of revenue. The report shall be filed by each producer on or before February
1. A remittance equal to 50 percent of the total tax required to be paid hereunder shall be
paid on or before February 24. A remittance equal to the remaining total tax required to be
paid hereunder shall be paid on or before August 24. On or before February 25 and August
25, the county auditor shall make distribution of the payments previously received by the
county in the manner provided by section 298.28. Reports shall be made and hearings held
upon the determination of the tax in accordance with procedures established by the
commissioner of revenue. The commissioner of revenue shall have authority to make
reasonable rules as to the form and manner of filing reports necessary for the determination
of the tax hereunder, and by such rules may require the production of such information as
may be reasonably necessary or convenient for the determination and apportionment of the
tax. All the provisions of the occupation tax law with reference to the assessment and
determination of the occupation tax, including all provisions for appeals from or review of
the orders of the commissioner of revenue relative thereto, but not including provisions for
refunds, are applicable to the taxes imposed by section 298.24 except in so far as inconsistent
herewith. If any person subject to section 298.24 shall fail to make the report provided for
in this section at the time and in the manner herein provided, the commissioner of revenue
shall in such case, upon information possessed or obtained, ascertain the kind and amount
of ore mined or produced and thereon find and determine the amount of the tax due from
such person. There shall be added to the amount of tax due a penalty for failure to report
on or before February 1, which penalty shall equal ten percent of the tax imposed and be
treated as a part thereof.

If any person responsible for making a tax payment at the time and in the manner herein
provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount
so due, which penalty shall be treated as part of the tax due.

In the case of any underpayment of the tax payment required herein, there may be added
and be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid.

A person having a liability of $120,000 or more during a calendar year must remit all
liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336.4A-401, must be on or before the
date the tax is due. If the date the tax is due is not a funds transfer business day, as defined
in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the
funds transfer business day next following the date the tax is due.

Sec. 42.

Minnesota Statutes 2016, section 298.28, subdivision 7, is amended to read:


Subd. 7.

Iron Range resources and rehabilitation Board account.

For the 1998
distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources and
rehabilitation Board account for the purposes of section 298.22. That amount shall be
increased for distribution years 1999 through 2014 and for distribution in 2018 and
subsequent years in the same proportion as the increase in the implicit price deflator as
provided in section 298.24, subdivision 1. The amount distributed pursuant to this subdivision
shall be expended within or for the benefit of the taconite assistance area defined in section
273.1341. No part of the fund provided in this subdivision may be used to provide loans
for the operation of private business unless the loan is approved by the governor.

Sec. 43.

Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:


Subd. 7a.

Iron Range school consolidation and cooperatively operated school account.

(a) The following amounts must be allocated to the commissioner of Iron Range resources
and rehabilitation Board to be deposited in the Iron Range school consolidation and
cooperatively operated school account that is hereby created:

(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed
under section 298.24; and

(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
under section 298.24;

(2) the amount as determined under section 298.17, paragraph (b), clause (3);

(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;

(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third
to be distributed to the Douglas J. Johnson economic protection trust fund; and

(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining
one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and

(4) any other amount as provided by law.

(b) Expenditures from this account may be approved as ongoing annual expenditures
and
shall be made only to provide disbursements to assist school districts with the payment
of bonds that were issued for qualified school projects, or for any other school disbursement
as approved by the commissioner of Iron Range resources and rehabilitation after consultation
with the
Iron Range Resources and Rehabilitation Board. For purposes of this section,
"qualified school projects" means school projects within the taconite assistance area as
defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006;
and (2) approved by the commissioner of education pursuant to section 123B.71.

(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.

(d) No expenditure under this section shall be made unless approved by seven members
of
the commissioner of Iron Range resources and rehabilitation after consultation with the
Iron Range Resources and Rehabilitation Board.

Sec. 44.

Minnesota Statutes 2016, section 298.28, subdivision 9c, is amended to read:


Subd. 9c.

Distribution; city of Eveleth.

0.20 cent per taxable ton must be paid to the
city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the
Hockey Hall of Fame, provided that it continues to operate in that city, and provided that
the city of Eveleth certifies to the St. Louis County auditor that it has received donations
for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of Fame
ceases to operate in the city of Eveleth prior to receipt of the distribution in any year, and
the governing body of the city determines that it is unlikely to resume operation there within
a six-month period, the distribution under this subdivision shall be made to the commissioner
of
Iron Range resources and rehabilitation Board.

Sec. 45.

Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:


Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton must be
allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron
Range higher education account that is hereby created, to be used for higher education
programs conducted at educational institutions in the taconite assistance area defined in
section 273.1341. The Iron Range Higher Education committee under section 298.2214,
and the commissioner of Iron Range resources and rehabilitation Board , after consultation
with the advisory board,
must approve all expenditures from the account.

Sec. 46.

Minnesota Statutes 2016, section 298.28, subdivision 11, is amended to read:


Subd. 11.

Remainder.

(a) The proceeds of the tax imposed by section 298.24 which
remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
interest earned on all money distributed under this section prior to distribution, shall be
divided between the taconite environmental protection fund created in section 298.223 and
the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows:
Two-thirds to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund. The proceeds shall be placed in the respective
special accounts.

(b) There shall be distributed to each city, town, and county the amount that it received
under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however,
that the amount distributed in 1981 to the unorganized territory number 2 of Lake County
and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company
will be distributed in 1982 and subsequent years to the unorganized territory number 2 of
Lake County and the towns of Beaver Bay and Stony River based on the miles of track of
Erie Mining Company in each taxing district.

(c) There shall be distributed to the Iron Range resources and rehabilitation Board account
the amounts it received in 1977 under Minnesota Statutes 1978, section 298.22. The amount
distributed under this paragraph shall be expended within or for the benefit of the taconite
assistance area defined in section 273.1341.

(d) There shall be distributed to each school district 62 percent of the amount that it
received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

Sec. 47.

Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:


Subd. 2.

Use of money.

Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
with private sources of financing, but a loan to a private enterprise shall be for a principal
amount not to exceed one-half of the cost of the project for which financing is sought, and
the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
percent or an interest rate three percentage points less than a full faith and credit obligation
of the United States government of comparable maturity, at the time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the principal
of and interest on bonds issued pursuant to section 298.2211;

(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
retrofitting heating facilities in connection with district heating systems or systems utilizing
alternative energy sources;

(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
Johnson economic protection trust fund may not exceed the amount of the largest investment
by an unrelated investor in the venture capital fund or enterprise. For purposes of this
subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
which the investment is made or to any individual who owns more than 40 percent of the
value of the entity, in any of the following relationships: spouse, parent, child, sibling,
employee, or owner of an interest in the entity that exceeds ten percent of the value of all
interests in it. For purposes of determining the limitations under this clause, the amount of
investments made by an investor other than the Douglas J. Johnson economic protection
trust fund is the sum of all investments made in the venture capital fund or enterprise during
the period beginning one year before the date of the investment by the Douglas J. Johnson
economic protection trust fund; and

(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
be held and managed as a public trust for the benefit of the area for the purposes authorized
in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
commissioner upon approval by the , after consultation with the advisory board. The net
proceeds must be deposited in the trust fund for the purposes and uses of this section.

Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.

Sec. 48.

Minnesota Statutes 2016, section 298.296, is amended to read:


298.296 OPERATION OF FUND.

Subdivision 1.

Project approval.

The board and commissioner shall by August 1 of
each year prepare a list of projects to be funded from the Douglas J. Johnson economic
protection trust with necessary supporting information including description of the projects,
plans, and cost estimates. These
Projects shall be consistent with the priorities established
in section 298.292 and shall not be approved by the board unless it commissioner unless
the commissioner, after consultation with the advisory board,
finds that:

(a) the project will materially assist, directly or indirectly, the creation of additional
long-term employment opportunities;

(b) the prospective benefits of the expenditure exceed the anticipated costs; and

(c) in the case of assistance to private enterprise, the project will serve a sound business
purpose.

Each project must be approved by over one-half of all of the members of the board and
the commissioner of Iron Range resources and rehabilitation. The list of projects shall be
submitted to the governor, who shall, by November 15 of each year, approve or disapprove,
or return for further consideration, each project. The money for a project may be expended
only upon approval of the project by the governor. The board may submit supplemental
projects for approval at any time.

Subd. 2.

Expenditure of funds.

(a) Before January 1, 2028, funds may be expended on
projects and for administration of the trust fund only from the net interest, earnings, and
dividends arising from the investment of the trust at any time, including net interest, earnings,
and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for
use in fiscal year 1983, except that any amount required to be paid out of the trust fund to
provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and
to make school bond payments and payments to recipients of taconite production tax proceeds
pursuant to section 298.225, may be taken from the corpus of the trust.

(b) Additionally, upon recommendation by the board, up to $13,000,000 from the corpus
of the trust may be made available for use as provided in subdivision 4, and up to $10,000,000
from the corpus of the trust may be made available for use as provided in section 298.2961.

(c) (b) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8,
section 17, may be expended on projects. Funds The commissioner may be expended expend
funds
for projects under this paragraph only if the project:

(1) the project is for the purposes established under section 298.292, subdivision 1,
clause (1) or (2); and

(2) is approved by two-thirds of all of the members of the board the commissioner has
consulted with the advisory board
.

No money made available under this paragraph or paragraph (d) (c) can be used for
administrative or operating expenses of the Department of Iron Range Resources and
Rehabilitation Board or expenses relating to any facilities owned or operated by the board
commissioner
on May 18, 2002.

(d) Upon recommendation by a unanimous vote of all members of the board, (c) The
commissioner may spend
amounts in addition to those authorized under paragraphs (a), and
(b), and (c) may be expended on projects described in section 298.292, subdivision 1 , only
after consultation with the advisory board
.

(e) (d) Annual administrative costs, not including detailed engineering expenses for the
projects, shall not exceed five percent of the net interest, dividends, and earnings arising
from the trust in the preceding fiscal year.

(f) (e) Principal and interest received in repayment of loans made pursuant to this section,
and earnings on other investments made under section 298.292, subdivision 2, clause (4),
shall be deposited in the state treasury and credited to the trust. These receipts are
appropriated to the board for the purposes of sections 298.291 to 298.298 298.297.

(g) (f) Additionally, notwithstanding section 298.293, upon the approval of the board,
the commissioner, after consultation with the advisory board, may expend
money from the
corpus of the trust may be expanded to purchase forest lands within the taconite assistance
area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2, clause (5).

Subd. 3.

Administration.

The commissioner and staff of the Iron Range resources and
rehabilitation Board shall administer the program under which funds are expended pursuant
to sections 298.292 to 298.298 298.297.

Subd. 4.

Temporary loan authority.

(a) The board may recommend that After
consultation with the advisory board, the commissioner may use
up to $7,500,000 from the
corpus of the trust may be used for loans, loan guarantees, grants, or equity investments as
provided in this subdivision. The money would be available for loans for construction and
equipping of facilities constituting (1) a value added iron products plant, which may be
either a new plant or a facility incorporated into an existing plant that produces iron upgraded
to a minimum of 75 percent iron content or any iron alloy with a total minimum metallic
content of 90 percent; or (2) a new mine or minerals processing plant for any mineral subject
to the net proceeds tax imposed under section 298.015. A loan or loan guarantee under this
paragraph may not exceed $5,000,000 for any facility.

(b) Additionally, the board must reserve the first $2,000,000 of the net interest, dividends,
and earnings arising from the investment of the trust after June 30, 1996, to be used for
grants, loans, loan guarantees, or equity investments for the purposes set forth in paragraph
(a). This amount must be reserved until it is used as described in this subdivision.

(c) (b) Additionally, the board may recommend that the commissioner, after consultation
with the advisory board, may use
up to $5,500,000 from the corpus of the trust may be used
for additional grants, loans, loan guarantees, or equity investments for the purposes set forth
in paragraph (a).

(d) (c) The board commissioner, after consultation with the advisory board, may require
that it the fund receive an equity percentage in any project to which it contributes under this
section.

Sec. 49.

Minnesota Statutes 2016, section 298.2961, is amended to read:


298.2961 PRODUCER GRANTS.

Subdivision 1.

Appropriation.

(a) $10,000,000 is appropriated from the Douglas J.
Johnson economic protection trust fund to a special account in the taconite area environmental
protection fund for grants to producers on a project-by-project basis as provided in this
section.

(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are
appropriated for grants to producers on a project-by-project basis as provided in this section.

Subd. 2.

Projects; approval.

(a) Projects funded must be for:

(1) environmentally unique reclamation projects; or

(2) pit or plant repairs, expansions, or modernizations other than for a value added iron
products plant.

(b) To be proposed by the board, a project must be approved by the board. The money
for a project may be spent only upon approval of the project by the governor. The board
may submit supplemental projects for approval at any time
The commissioner may approve
a project only after consultation with the advisory board
.

(c) The commissioner, after consultation with the advisory board, may require that it
the fund
receive an equity percentage in any project to which it contributes under this section.

Subd. 3.

Redistribution.

(a) If a taconite production facility is sold after operations at
the facility had ceased, any money remaining in the taconite environmental fund for the
former producer may be released to the purchaser of the facility on the terms otherwise
applicable to the former producer under this section.

(b) Any portion of the taconite environmental fund that is not released by the
commissioner within three years of its deposit in the taconite environmental fund shall be
divided between the taconite environmental protection fund created in section 298.223 and
the Douglas J. Johnson economic protection trust fund created in section 298.292 for
placement in their respective special accounts. Two-thirds of the unreleased funds must be
distributed to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund.

Subd. 4.

Grant and loan fund.

(a) A fund is established to receive distributions under
section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision.
Any grant or loan made under this subdivision must be approved by the commissioner, after
consultation with the advisory
board, established under section 298.22.

(b) All distributions received in 2009 and subsequent years are allocated for projects
under section 298.223, subdivision 1.

Sec. 50.

Minnesota Statutes 2016, section 298.297, is amended to read:


298.297 ADVISORY COMMITTEES.

Before submission of a project to the advisory board, the commissioner of Iron Range
resources and rehabilitation shall appoint a technical advisory committee consisting of one
or more persons who are knowledgeable in areas related to the objectives of the proposal.
Members of the committees shall be compensated as provided in section 15.059, subdivision
3
. The advisory board shall not act make recommendations on a proposal until it has received
the evaluation and recommendations of the technical advisory committee or until 15 days
have elapsed since the proposal was transmitted to the advisory committee, whichever
occurs first.

Sec. 51.

Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:


Subd. 2.

Unmined iron ore; valuation petition.

When in the opinion of the duly
constituted authorities of a taxing district there are in existence reserves of unmined iron
ore located in such district, these authorities may petition the commissioner of Iron Range
resources and rehabilitation Board for authority to petition the county assessor to verify the
existence of such reserves and to ascertain the value thereof by drilling in a manner consistent
with established engineering and geological exploration methods, in order that such taxing
district may be able to forecast in a proper manner its future economic and fiscal potentials.
The commissioner of Iron Range resources and rehabilitation may grant the authority to
petition only after consultation with the advisory board.

Sec. 52.

Minnesota Statutes 2016, section 298.46, subdivision 5, is amended to read:


Subd. 5.

Payment of costs; reimbursement.

The cost of such exploration or drilling
plus any damages to the property which may be assessed by the district court shall be paid
by the commissioner of Iron Range resources and rehabilitation Board from amounts
appropriated to that board the commissioner of Iron Range resources and rehabilitation
under section 298.22. The commissioner of Iron Range resources and rehabilitation Board
shall be reimbursed for one-half of the amounts thus expended. Such reimbursement shall
be made by the taxing districts in the proportion that each such taxing district's levy on the
property involved bears to the total levy on such property. Such reimbursement shall be
made to the commissioner of Iron Range resources and rehabilitation Board in the manner
provided by section 298.221.

Sec. 53.

Minnesota Statutes 2016, section 298.46, subdivision 6, is amended to read:


Subd. 6.

Refusal to reimburse; reduction of other payments.

If any taxing district
refuses to pay its share of the reimbursement as provided in subdivision 5, the county auditor
is hereby authorized to reduce payments required to be made by the county to such taxing
district under other provisions of law. Thereafter the auditor shall draw a warrant, which
shall be deposited with the state treasury in accordance with section 298.221, to the credit
of the commissioner of Iron Range resources and rehabilitation Board.

Sec. 54.

Minnesota Statutes 2016, section 466.03, subdivision 6c, is amended to read:


Subd. 6c.

Water access sites.

Any claim based upon the construction, operation, or
maintenance by a municipality of a water access site created by the commissioner of Iron
Range resources and rehabilitation Board. A water access site under this subdivision that
provides access to an idled, water filled mine pit also includes the entire water filled area
of the pit, and, further, claims related to a mine pit water access site under this subdivision
include those based upon the caving or slumping of mine pit walls.

Sec. 55.

Minnesota Statutes 2016, section 469.310, subdivision 9, is amended to read:


Subd. 9.

Local government unit.

"Local government unit" means a statutory or home
rule charter city, county, town, the Department of Iron Range Resources and Rehabilitation
agency, regional development commission, or a federally designated economic development
district.

Sec. 56.

Minnesota Statutes 2016, section 474A.02, subdivision 21, is amended to read:


Subd. 21.

Preliminary resolution.

"Preliminary resolution" means a resolution adopted
by the governing body or board of the issuer, or in the case of the by the commissioner of
Iron Range resources and rehabilitation Board by the commissioner. The resolution must
express a preliminary intention of the issuer to issue obligations for a specific project,
identify the proposed project, and disclose the proposed amount of qualified bonds to be
issued. Preliminary resolutions for mortgage bonds and student loan bonds need not identify
a specific project.

Sec. 57.

Laws 2010, chapter 389, article 5, section 7, is amended to read:


Sec. 7. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY.

Subdivision 1.

Additional taxes authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or charter provision to the contrary, the city
of Biwabik, upon approval both by its governing body and by the vote of at least seven
members of the Iron Range Resources and Rehabilitation Board, may impose any or all of
the taxes described in this section.

Subd. 2.

Use of proceeds.

The proceeds of any taxes imposed under this section, less
refunds and costs of collection, must be deposited into the Iron Range Resources and
Rehabilitation Board account enterprise fund created under the provisions of Minnesota
Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the
commissioner of the Iron Range resources and rehabilitation Board, upon approval by the
vote of at least seven members of
after consultation with the Iron Range Resources and
Rehabilitation Board, to pay costs for the construction, renovation, improvement, expansion,
and maintenance of public recreational facilities located in those portions of the city within
the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
subdivision 7
, or to pay any principal, interest, or premium on any bond issued to finance
the construction, renovation, improvement, or expansion of such public recreational facilities.

Subd. 3.

Lodging tax.

(a) The city of Biwabik, upon approval both by its governing
body and by the vote of at least seven members of the Iron Range Resources and
Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the
gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This
tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may
be imposed only on gross lodging receipts generated within the Giants Ridge Recreation
Area as defined in Minnesota Statutes, section 298.22, subdivision 7.

(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner of Iron Range resources and rehabilitation consults with the Iron Range
Resources and Rehabilitation Board.

Subd. 4.

Admissions and recreation tax.

(a) The city of Biwabik, upon approval both
by its governing body and by the vote of at least seven members of the Iron Range Resources
and Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent
on admission receipts to entertainment and recreational facilities and on receipts from the
rental of recreation equipment, at sites within the Giants Ridge Recreation Area as defined
in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota Statutes,
section 297A.99, except for subdivisions 2 and 3, govern the imposition, administration,
colle