CONFERENCE COMMITTEE REPORT ON S.F. No. 1456
relating to economic development; temporarily modifying the restrictions on use
of Minnesota investment fund local government loan repayment funds.
May 22, 2017
The Honorable Michelle L. Fischbach
President of the Senate
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
We, the undersigned conferees for S.F. No. 1456 report that we have agreed upon the
items in dispute and recommend as follows:
That the House recede from its amendment and that S.F. No. 1456 be further amended
Delete everything after the enacting clause and insert:
1.18 (a) The sums shown in the columns marked "Appropriations" are appropriated to the
1.19agencies and for the purposes specified in this article. The appropriations are from
1.20general fund, or another named fund, and are available for the fiscal years indicated
1.21each purpose. The figures "2018" and "2019" used in this article mean that the appropriations
1.22listed under them are available for the fiscal year ending June 30, 2018, or June
1.23respectively. "The first year" is fiscal year 2018. "The second year" is fiscal year
1.24biennium" is fiscal years 2018 and 2019.
1.25 (b) If an appropriation in this article is enacted more than once in the 2017 legislative
1.26session, the appropriation must be given effect only once.
|Section 1. JOBS AND ECONOMIC DEVELOPMENT.
||Available for the Year
||Ending June 30
|Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
|Subdivision 1.Total Appropriation
2.15The amounts that may be spent for each
2.16purpose are specified in the following
|Appropriations by Fund
|Subd. 2.Business and Community Development
2.25(a) $4,195,000 each year is for the Minnesota
2.26job skills partnership program under
2.27Minnesota Statutes, sections 116L.01 to
2.28116L.17. If the appropriation for either year
2.29is insufficient, the appropriation for the other
2.30year is available. This appropriation is
2.31available until spent.
2.32(b) $750,000 each year is for grants to the
2.33Neighborhood Development Center for small
2.35(1) training, lending, and business services;
3.1(2) model outreach and training in greater
3.3(3) development of new business incubators.
3.4This is a onetime appropriation.
3.5(c) $1,175,000 each year is for a grant to the
3.6Metropolitan Economic Development
3.7Association (MEDA) for statewide business
3.8development and assistance services, including
3.9services to entrepreneurs with businesses that
3.10have the potential to create job opportunities
3.11for unemployed and underemployed people,
3.12with an emphasis on minority-owned
3.13businesses. This is a onetime appropriation.
3.14(d) $125,000 each year is for a grant to the
3.15White Earth Nation for the White Earth Nation
3.16Integrated Business Development System to
3.17provide business assistance with workforce
3.18development, outreach, technical assistance,
3.19infrastructure and operational support,
3.20financing, and other business development
3.21activities. This is a onetime appropriation.
3.22(e)(1) $12,500,000 each year is for the
3.23Minnesota investment fund under Minnesota
3.24Statutes, section 116J.8731. Of this amount,
3.25the commissioner of employment and
3.26economic development may use up to three
3.27percent for administration and monitoring of
3.28the program. This appropriation is available
3.30(2) Of the amount appropriated in fiscal year
3.312018, $4,000,000 is for a loan to construct and
3.32equip a wholesale electronic component
3.33distribution center investing a minimum of
3.34$200,000,000 and constructing a facility at
4.1least 700,000 square feet in size. Loan funds
4.2may be used for purchases of materials,
4.3supplies, and equipment for the construction
4.4of the facility and are available from July 1,
4.52017, to June 30, 2021. The commissioner of
4.6employment and economic development shall
4.7forgive the loan after verification that the
4.8project has satisfied performance goals and
4.9contractual obligations as required under
4.10Minnesota Statutes, section 116J.8731.
4.11(3) Of the amount appropriated in fiscal year
4.122018, $700,000 is for a loan to extend an
4.13effluent pipe that will deliver reclaimed water
4.14to an innovative waste-to-biofuel project
4.15investing a minimum of $150,000,000 and
4.16constructing a facility that is designed to
4.17process approximately 400,000 tons of waste
4.18annually. Loan funds are available until June
4.20(f) $8,500,000 each year is for the Minnesota
4.21job creation fund under Minnesota Statutes,
4.22section 116J.8748. Of this amount, the
4.23commissioner of employment and economic
4.24development may use up to three percent for
4.25administrative expenses. This appropriation
4.26is available until expended. In fiscal year 2020
4.27and beyond, the base amount is $8,000,000.
4.28(g) $1,647,000 each year is for contaminated
4.29site cleanup and development grants under
4.30Minnesota Statutes, sections 116J.551 to
4.31116J.558. This appropriation is available until
4.32spent. In fiscal year 2020 and beyond, the base
4.33amount is $1,772,000.
4.34(h) $12,000 each year is for a grant to the
4.35Upper Minnesota Film Office.
5.1(i) $163,000 each year is for the Minnesota
5.2Film and TV Board. The appropriation in each
5.3year is available only upon receipt by the
5.4board of $1 in matching contributions of
5.5money or in-kind contributions from nonstate
5.6sources for every $3 provided by this
5.7appropriation, except that each year up to
5.8$50,000 is available on July 1 even if the
5.9required matching contribution has not been
5.10received by that date.
5.11(j) $500,000 each year is from the general fund
5.12for a grant to the Minnesota Film and TV
5.13Board for the film production jobs program
5.14under Minnesota Statutes, section 116U.26.
5.15This appropriation is available until June 30,
5.17(k) $139,000 each year is for a grant to the
5.18Rural Policy and Development Center under
5.19Minnesota Statutes, section 116J.421.
5.20(l)(1) $1,300,000 each year is for the greater
5.21Minnesota business development public
5.22infrastructure grant program under Minnesota
5.23Statutes, section 116J.431. This appropriation
5.24is available until spent. If the appropriation
5.25for either year is insufficient, the appropriation
5.26for the other year is available. In fiscal year
5.272020 and beyond, the base amount is
5.28$1,787,000. Funds available under this
5.29paragraph may be used for site preparation of
5.30property owned and to be used by private
5.32(2) Of the amounts appropriated, $1,600,000
5.33in fiscal year 2018 is for a grant to the city of
5.34Thief River Falls to support utility extensions,
5.35roads, and other public improvements related
6.1to the construction of a wholesale electronic
6.2component distribution center at least 700,000
6.3square feet in size and investing a minimum
6.4of $200,000,000. Notwithstanding Minnesota
6.5Statutes, section 116J.431, a local match is
6.6not required. Grant funds are available from
6.7July 1, 2017, to June 30, 2021.
6.8(m) $876,000 the first year and $500,000 the
6.9second year are for the Minnesota emerging
6.10entrepreneur loan program under Minnesota
6.11Statutes, section 116M.18. Funds available
6.12under this paragraph are for transfer into the
6.13emerging entrepreneur program special
6.14revenue fund account created under Minnesota
6.15Statutes, chapter 116M, and are available until
6.16spent. Of this amount, up to four percent is for
6.17administration and monitoring of the program.
6.18In fiscal year 2020 and beyond, the base
6.19amount is $1,000,000.
6.20(n) $875,000 each year is for a grant to
6.21Enterprise Minnesota, Inc. for the small
6.22business growth acceleration program under
6.23Minnesota Statutes, section 116O.115. This
6.24is a onetime appropriation.
6.25(o) $250,000 in fiscal year 2018 is for a grant
6.26to the Minnesota Design Center at the
6.27University of Minnesota for the greater
6.28Minnesota community design pilot project.
6.29(p) $275,000 in fiscal year 2018 is from the
6.30general fund to the commissioner of
6.31employment and economic development for
6.32a grant to Community and Economic
6.33Development Associates (CEDA) for an
6.34economic development study and analysis of
6.35the effects of current and projected economic
7.1growth in southeast Minnesota. CEDA shall
7.2report on the findings and recommendations
7.3of the study to the committees of the house of
7.4representatives and senate with jurisdiction
7.5over economic development and workforce
7.6issues by February 15, 2019. All results and
7.7information gathered from the study shall be
7.8made available for use by cities in southeast
7.9Minnesota by March 15, 2019. This
7.10appropriation is available until June 30, 2020.
7.11(q) $2,000,000 in fiscal year 2018 is for a
7.12grant to Pillsbury United Communities for
7.13construction and renovation of a building in
7.14north Minneapolis for use as the "North
7.15Market" grocery store and wellness center,
7.16focused on offering healthy food, increasing
7.17health care access, and providing job creation
7.18and economic opportunities in one place for
7.19children and families living in the area. To the
7.20extent possible, Pillsbury United Communities
7.21shall employ individuals who reside within a
7.22five mile radius of the grocery store and
7.23wellness center. This appropriation is not
7.24available until at least an equal amount of
7.25money is committed from nonstate sources.
7.26This appropriation is available until the project
7.27is completed or abandoned, subject to
7.28Minnesota Statutes, section 16A.642.
7.29(r) $1,425,000 each year is for the business
7.30development competitive grant program. Of
7.31this amount, up to five percent is for
7.32administration and monitoring of the business
7.33development competitive grant program. All
7.34grant awards shall be for two consecutive
7.35years. Grants shall be awarded in the first year.
8.1(s) $875,000 each year is for the host
8.2community economic development grant
8.3program established in Minnesota Statutes,
8.5(t) $700,000 each year is from the remediation
8.6fund for contaminated site cleanup and
8.7development grants under Minnesota Statutes,
8.8sections 116J.551 to 116J.558. This
8.9appropriation is available until spent.
8.10(u) $161,000 each year is from the workforce
8.11development fund for a grant to the Rural
8.12Policy and Development Center. This is a
8.14(v) $300,000 each year is from the workforce
8.15development fund for a grant to Enterprise
8.16Minnesota, Inc. This is a onetime
8.18(w) $50,000 in fiscal year 2018 is from the
8.19workforce development fund for a grant to
8.20Fighting Chance for behavioral intervention
8.21programs for at-risk youth.
8.22(x) $1,350,000 each year is from the
8.23workforce development fund for job training
8.24grants under Minnesota Statutes, section
8.26(y)(1) $519,000 in fiscal year 2018 is for
8.27grants to local communities to increase the
8.28supply of quality child care providers in order
8.29to support economic development. At least 60
8.30percent of grant funds must go to communities
8.31located outside of the seven-county
8.32metropolitan area, as defined under Minnesota
8.33Statutes, section 473.121, subdivision 2. Grant
8.34recipients must obtain a 50 percent nonstate
9.1match to grant funds in either cash or in-kind
9.2contributions. Grant funds available under this
9.3paragraph must be used to implement solutions
9.4to reduce the child care shortage in the state
9.5including but not limited to funding for child
9.6care business start-ups or expansions, training,
9.7facility modifications or improvements
9.8required for licensing, and assistance with
9.9licensing and other regulatory requirements.
9.10In awarding grants, the commissioner must
9.11give priority to communities that have
9.12documented a shortage of child care providers
9.13in the area.
9.14(2) Within one year of receiving grant funds,
9.15grant recipients must report to the
9.16commissioner on the outcomes of the grant
9.17program including but not limited to the
9.18number of new providers, the number of
9.19additional child care provider jobs created, the
9.20number of additional child care slots, and the
9.21amount of local funds invested.
9.22(3) By January 1 of each year, starting in 2019,
9.23the commissioner must report to the standing
9.24committees of the legislature having
9.25jurisdiction over child care and economic
9.26development on the outcomes of the program
9.28(z) $319,000 in fiscal year 2018 is from the
9.29general fund for a grant to the East Phillips
9.30Improvement Coalition to create the East
9.31Phillips Neighborhood Institute (EPNI) to
9.32expand culturally tailored resources that
9.33address small business growth and create
9.34green jobs. The grant shall fund the
9.35collaborative work of Tamales y Bicicletas,
10.1Little Earth of the United Tribes, a nonprofit
10.2serving East Africans, and other coalition
10.3members towards developing EPNI as a
10.4community space to host activities including,
10.5but not limited to, creation and expansion of
10.6small businesses, culturally specific
10.7entrepreneurial activities, indoor urban
10.8farming, job training, education, and skills
10.9development for residents of this low-income,
10.10environmental justice designated
10.11neighborhood. Eligible uses for grant funds
10.12include, but are not limited to, planning and
10.13start-up costs, staff and consultant costs,
10.14building improvements, rent, supplies, utilities,
10.15vehicles, marketing, and program activities.
10.16The commissioner shall submit a report on
10.17grant activities and quantifiable outcomes to
10.18the committees of the house of representatives
10.19and the senate with jurisdiction over economic
10.20development by December 15, 2020. This
10.21appropriation is available until June 30, 2020.
10.22(aa) $150,000 the first year is from the
10.23renewable development account in the special
10.24revenue fund established in Minnesota
10.25Statutes, section 116C.779, subdivision 1, to
10.26conduct the biomass facility closure economic
10.28(bb)(1)$300,000 in fiscal year 2018 is for a
10.29grant to East Side Enterprise Center (ESEC)
10.30to expand culturally tailored resources that
10.31address small business growth and job
10.32creation. This appropriation is available until
10.33June 30, 2020. The appropriation shall fund
10.34the work of African Economic Development
10.35Solutions, the Asian Economic Development
11.1Association, the Dayton's Bluff Community
11.2Council, and the Latino Economic
11.3Development Center in a collaborative
11.4approach to economic development that is
11.5effective with smaller, culturally diverse
11.6communities that seek to increase the
11.7productivity and success of new immigrant
11.8and minority populations living and working
11.9in the community. Programs shall provide
11.10minority business growth and capacity
11.11building that generate wealth and jobs creation
11.12for local residents and business owners on the
11.13East Side of St. Paul.
11.14(2) In fiscal year 2019 ESEC shall use funds
11.15to share its integrated service model and
11.16evolving collaboration principles with civic
11.17and economic development leaders in greater
11.18Minnesota communities which have diverse
11.19populations similar to the East Side of St. Paul.
11.20ESEC shall submit a report of activities and
11.21program outcomes, including quantifiable
11.22measures of success annually to the house of
11.23representatives and senate committees with
11.24jurisdiction over economic development.
11.25(cc) $150,000 in fiscal year 2018 is for a grant
11.26to Mille Lacs County for the purpose of
11.27reimbursement grants to small resort
11.28businesses located in the city of Isle with less
11.29than $350,000 in annual revenue, at least four
11.30rental units, which are open during both
11.31summer and winter months, and whose
11.32business was adversely impacted by a decline
11.33in walleye fishing on Lake Mille Lacs.
11.34(dd)(1) $250,000 in fiscal year 2018 is for a
11.35grant to the Small Business Development
12.1Center hosted at Minnesota State University,
12.2Mankato, for a collaborative initiative with
12.3the Regional Center for Entrepreneurial
12.4Facilitation. Funds available under this section
12.5must be used to provide entrepreneur and
12.6small business development direct professional
12.7business assistance services in the following
12.8counties in Minnesota: Blue Earth, Brown,
12.9Faribault, Le Sueur, Martin, Nicollet, Sibley,
12.10Watonwan, and Waseca. For the purposes of
12.11this section, "direct professional business
12.12assistance services" must include, but is not
12.13limited to, pre-venture assistance for
12.14individuals considering starting a business.
12.15This appropriation is not available until the
12.16commissioner determines that an equal amount
12.17is committed from nonstate sources. Any
12.18balance in the first year does not cancel and
12.19is available for expenditure in the second year.
12.20(2) Grant recipients shall report to the
12.21commissioner by February 1 of each year and
12.22include information on the number of
12.23customers served in each county; the number
12.24of businesses started, stabilized, or expanded;
12.25the number of jobs created and retained; and
12.26business success rates in each county. By April
12.271 of each year, the commissioner shall report
12.28the information submitted by grant recipients
12.29to the chairs of the standing committees of the
12.30house of representatives and the senate having
12.31jurisdiction over economic development
12.33(ee) $500,000 in fiscal year 2018 is for the
12.34central Minnesota opportunity grant program
12.35established under Minnesota Statutes, section
13.1116J.9922. This appropriation is available until
13.2June 30, 2022.
|Appropriations by Fund
|Subd. 3.Workforce Development
13.8(a) $500,000 each year is for the
13.9youth-at-work competitive grant program
13.10under Minnesota Statutes, section 116L.562.
13.11Of this amount, up to five percent is for
13.12administration and monitoring of the youth
13.13workforce development competitive grant
13.14program. All grant awards shall be for two
13.15consecutive years. Grants shall be awarded in
13.16the first year. In fiscal year 2020 and beyond,
13.17the base amount is $750,000.
13.18(b) $250,000 each year is for pilot programs
13.19in the workforce service areas to combine
13.20career and higher education advising.
13.21(c) $500,000 each year is for rural career
13.22counseling coordinator positions in the
13.23workforce service areas and for the purposes
13.24specified in Minnesota Statutes, section
13.25116L.667. The commissioner of employment
13.26and economic development, in consultation
13.27with local workforce investment boards and
13.28local elected officials in each of the service
13.29areas receiving funds, shall develop a method
13.30of distributing funds to provide equitable
13.31services across workforce service areas.
13.32(d) $1,000,000 each year is for a grant to the
13.33Construction Careers Foundation for the
13.34construction career pathway initiative to
13.35provide year-round educational and
14.1experiential learning opportunities for teens
14.2and young adults under the age of 21 that lead
14.3to careers in the construction industry. This is
14.4a onetime appropriation. Grant funds must be
14.6(1) increase construction industry exposure
14.7activities for middle school and high school
14.8youth, parents, and counselors to reach a more
14.9diverse demographic and broader statewide
14.10audience. This requirement includes, but is
14.11not limited to, an expansion of programs to
14.12provide experience in different crafts to youth
14.13and young adults throughout the state;
14.14(2) increase the number of high schools in
14.15Minnesota offering construction classes during
14.16the academic year that utilize a multicraft
14.18(3) increase the number of summer internship
14.20(4) enhance activities to support graduating
14.21seniors in their efforts to obtain employment
14.22in the construction industry;
14.23(5) increase the number of young adults
14.24employed in the construction industry and
14.25ensure that they reflect Minnesota's diverse
14.27(6) enhance an industrywide marketing
14.28campaign targeted to youth and young adults
14.29about the depth and breadth of careers within
14.30the construction industry.
14.31Programs and services supported by grant
14.32funds must give priority to individuals and
14.33groups that are economically disadvantaged
14.34or historically underrepresented in the
15.1construction industry, including but not limited
15.2to women, veterans, and members of minority
15.3and immigrant groups.
15.4(e) $1,539,000 each year from the general fund
15.5and $4,604,000 each year from the workforce
15.6development fund are for the Pathways to
15.7Prosperity adult workforce development
15.8competitive grant program. Of this amount,
15.9up to four percent is for administration and
15.10monitoring of the program. When awarding
15.11grants under this paragraph, the commissioner
15.12of employment and economic development
15.13may give preference to any previous grantee
15.14with demonstrated success in job training and
15.15placement for hard-to-train individuals. In
15.16fiscal year 2020 and beyond, the general fund
15.17base amount for this program is $4,039,000.
15.18(f) $750,000 each year is for a competitive
15.19grant program to provide grants to
15.20organizations that provide support services for
15.21individuals, such as job training, employment
15.22preparation, internships, job assistance to
15.23fathers, financial literacy, academic and
15.24behavioral interventions for low-performing
15.25students, and youth intervention. Grants made
15.26under this section must focus on low-income
15.27communities, young adults from families with
15.28a history of intergenerational poverty, and
15.29communities of color. Of this amount, up to
15.30four percent is for administration and
15.31monitoring of the program. In fiscal year 2020
15.32and beyond, the base amount is $1,000,000.
15.33(g) $500,000 each year is for the women and
15.34high-wage, high-demand, nontraditional jobs
15.35grant program under Minnesota Statutes,
16.1section 116L.99. Of this amount, up to five
16.2percent is for administration and monitoring
16.3of the program. In fiscal year 2020 and
16.4beyond, the base amount is $750,000.
16.5(h) $500,000 each year is for a competitive
16.6grant program for grants to organizations
16.7providing services to relieve economic
16.8disparities in the Southeast Asian community
16.9through workforce recruitment, development,
16.10job creation, assistance of smaller
16.11organizations to increase capacity, and
16.12outreach. Of this amount, up to five percent
16.13is for administration and monitoring of the
16.14program. In fiscal year 2020 and beyond, the
16.15base amount is $1,000,000.
16.16(i) $250,000 each year is for a grant to the
16.17American Indian Opportunities and
16.18Industrialization Center, in collaboration with
16.19the Northwest Indian Community
16.20Development Center, to reduce academic
16.21disparities for American Indian students and
16.22adults. This is a onetime appropriation. The
16.23grant funds may be used to provide:
16.24(1) student tutoring and testing support
16.26(2) training in information technology;
16.27(3) assistance in obtaining a GED;
16.28(4) remedial training leading to enrollment in
16.29a postsecondary higher education institution;
16.30(5) real-time work experience in information
16.31technology fields; and
16.32(6) contextualized adult basic education.
17.1After notification to the legislature, the
17.2commissioner may transfer this appropriation
17.3to the commissioner of education.
17.4(j) $100,000 each year is for the getting to
17.5work grant program. This is a onetime
17.6appropriation and is available until June 30,
17.8(k) $525,000 each year is from the workforce
17.9development fund for a grant to the YWCA
17.10of Minneapolis to provide economically
17.11challenged individuals the job skills training,
17.12career counseling, and job placement
17.13assistance necessary to secure a child
17.14development associate credential and to have
17.15a career path in early childhood education.
17.16This is a onetime appropriation.
17.17(l) $1,350,000 each year is from the workforce
17.18development fund for a grant to the Minnesota
17.19High Tech Association to support
17.20SciTechsperience, a program that supports
17.21science, technology, engineering, and math
17.22(STEM) internship opportunities for two- and
17.23four-year college students and graduate
17.24students in their field of study. The internship
17.25opportunities must match students with paid
17.26internships within STEM disciplines at small,
17.27for-profit companies located in Minnesota,
17.28having fewer than 250 employees worldwide.
17.29At least 300 students must be matched in the
17.30first year and at least 350 students must be
17.31matched in the second year. No more than 15
17.32percent of the hires may be graduate students.
17.33Selected hiring companies shall receive from
17.34the grant 50 percent of the wages paid to the
17.35intern, capped at $2,500 per intern. The
18.1program must work toward increasing the
18.2participation of women or other underserved
18.3populations. This is a onetime appropriation.
18.4(m) $450,000 each year is from the workforce
18.5development fund for grants to Minnesota
18.6Diversified Industries, Inc. to provide
18.7progressive development and employment
18.8opportunities for people with disabilities. This
18.9is a onetime appropriation.
18.10(n) $500,000 each year is from the workforce
18.11development fund for a grant to Resource, Inc.
18.12to provide low-income individuals career
18.13education and job skills training that are fully
18.14integrated with chemical and mental health
18.15services. This is a onetime appropriation.
18.16(o) $750,000 each year is from the workforce
18.17development fund for a grant to the Minnesota
18.18Alliance of Boys and Girls Clubs to administer
18.19a statewide project of youth job skills and
18.20career development. This project, which may
18.21have career guidance components including
18.22health and life skills, is designed to encourage,
18.23train, and assist youth in early access to
18.24education and job-seeking skills, work-based
18.25learning experience including career pathways
18.26in STEM learning, career exploration and
18.27matching, and first job placement through
18.28local community partnerships and on-site job
18.29opportunities. This grant requires a 25 percent
18.30match from nonstate resources. This is a
18.32(p) $215,000 each year is from the workforce
18.33development fund for grants to Big Brothers,
18.34Big Sisters of the Greater Twin Cities for
18.35workforce readiness, employment exploration,
19.1and skills development for youth ages 12 to
19.221. The grant must serve youth in the Twin
19.3Cities, Central Minnesota, and Southern
19.4Minnesota Big Brothers, Big Sisters chapters.
19.5This is a onetime appropriation.
19.6(q) $250,000 each year is from the workforce
19.7development fund for a grant to YWCA St.
19.8Paul to provide job training services and
19.9workforce development programs and
19.10services, including job skills training and
19.11counseling. This is a onetime appropriation.
19.12(r) $1,000,000 each year is from the workforce
19.13development fund for a grant to EMERGE
19.14Community Development, in collaboration
19.15with community partners, for services
19.16targeting Minnesota communities with the
19.17highest concentrations of African and
19.18African-American joblessness, based on the
19.19most recent census tract data, to provide
19.20employment readiness training, credentialed
19.21training placement, job placement and
19.22retention services, supportive services for
19.23hard-to-employ individuals, and a general
19.24education development fast track and adult
19.25diploma program. This is a onetime
19.27(s) $1,000,000 each year is from the workforce
19.28development fund for a grant to the
19.29Minneapolis Foundation for a strategic
19.30intervention program designed to target and
19.31connect program participants to meaningful,
19.32sustainable living-wage employment. This is
19.33a onetime appropriation.
19.34(t) $750,000 each year is from the workforce
19.35development fund for a grant to Latino
20.1Communities United in Service (CLUES) to
20.2expand culturally tailored programs that
20.3address employment and education skill gaps
20.4for working parents and underserved youth by
20.5providing new job skills training to stimulate
20.6higher wages for low-income people, family
20.7support systems designed to reduce
20.8intergenerational poverty, and youth
20.9programming to promote educational
20.10advancement and career pathways. At least
20.1150 percent of this amount must be used for
20.12programming targeted at greater Minnesota.
20.13This is a onetime appropriation.
20.14(u) $600,000 each year is from the workforce
20.15development fund for a grant to Ujamaa Place
20.16for job training, employment preparation,
20.17internships, education, training in the
20.18construction trades, housing, and
20.19organizational capacity building. This is a
20.21(v) $1,297,000 in the first year and $800,000
20.22in the second year are from the workforce
20.23development fund for performance grants
20.24under Minnesota Statutes, section 116J.8747,
20.25to Twin Cities R!SE to provide training to
20.26hard-to-train individuals. Of the amounts
20.27appropriated, $497,000 in fiscal year 2018 is
20.28for a grant to Twin Cities R!SE, in
20.29collaboration with Metro Transit and Hennepin
20.30Technical College for the Metro Transit
20.31technician training program. This is a onetime
20.32appropriation and funds are available until
20.33June 30, 2020.
20.34(w) $230,000 in fiscal year 2018 is from the
20.35workforce development fund for a grant to the
21.1Bois Forte Tribal Employment Rights Office
21.2(TERO) for an American Indian workforce
21.3development training pilot project.
21.4(x) $40,000 in fiscal year 2018 is from the
21.5workforce development fund for a grant to the
21.6Cook County Higher Education Board to
21.7provide educational programming and
21.8academic support services to remote regions
21.9in northeastern Minnesota. This appropriation
21.10is in addition to other funds previously
21.11appropriated to the board.
21.12(y) $250,000 each year is from the workforce
21.13development fund for a grant to Bridges to
21.14Healthcare to provide career education,
21.15wraparound support services, and job skills
21.16training in high-demand health care fields to
21.17low-income parents, nonnative speakers of
21.18English, and other hard-to-train individuals,
21.19helping families build secure pathways out of
21.20poverty while also addressing worker
21.21shortages in one of Minnesota's most
21.22innovative industries. Funds may be used for
21.23program expenses, including, but not limited
21.24to, hiring instructors and navigators; space
21.25rental; and supportive services to help
21.26participants attend classes, including assistance
21.27with course fees, child care, transportation,
21.28and safe and stable housing. In addition, up to
21.29five percent of grant funds may be used for
21.30Bridges to Healthcare's administrative costs.
21.31This is a onetime appropriation and is
21.32available until June 30, 2020.
21.33(z) $500,000 each year is from the workforce
21.34development fund for a grant to the Nonprofits
21.35Assistance Fund to provide capacity-building
22.1grants to small, culturally specific
22.2organizations that primarily serve historically
22.3underserved cultural communities. Grants may
22.4only be awarded to nonprofit organizations
22.5that have an annual organizational budget of
22.6less than $500,000 and are culturally specific
22.7organizations that primarily serve historically
22.8underserved cultural communities. Grant funds
22.9awarded must be used for:
22.10(1) organizational infrastructure improvement,
22.11including developing database management
22.12systems and financial systems, or other
22.13administrative needs that increase the
22.14organization's ability to access new funding
22.16(2) organizational workforce development,
22.17including hiring culturally competent staff,
22.18training and skills development, and other
22.19methods of increasing staff capacity; or
22.20(3) creation or expansion of partnerships with
22.21existing organizations that have specialized
22.22expertise in order to increase the capacity of
22.23the grantee organization to improve services
22.24for the community. Of this amount, up to five
22.25percent may be used by the Nonprofits
22.26Assistance Fund for administration costs and
22.27providing technical assistance to potential
22.28grantees. This is a onetime appropriation.
22.29(aa) $4,050,000 each year is from the
22.30workforce development fund for the
22.31Minnesota youth program under Minnesota
22.32Statutes, sections 116L.56 and 116L.561.
22.33(bb) $1,000,000 each year is from the
22.34workforce development fund for the
23.1youthbuild program under Minnesota Statutes,
23.2sections 116L.361 to 116L.366.
23.3(cc) $3,348,000 each year is from the
23.4workforce development fund for the "Youth
23.5at Work" youth workforce development
23.6competitive grant program. Of this amount,
23.7up to five percent is for administration and
23.8monitoring of the youth workforce
23.9development competitive grant program. All
23.10grant awards shall be for two consecutive
23.11years. Grants shall be awarded in the first year.
23.12(dd) $500,000 each year is from the workforce
23.13development fund for the Opportunities
23.14Industrialization Center programs.
23.15(ee) $750,000 each year is from the workforce
23.16development fund for a grant to Summit
23.17Academy OIC to expand its contextualized
23.18GED and employment placement program.
23.19This is a onetime appropriation.
23.20(ff) $500,000 each year is from the workforce
23.21development fund for a grant to
23.22Goodwill-Easter Seals Minnesota and its
23.23partners. The grant shall be used to continue
23.24the FATHER Project in Rochester, Park
23.25Rapids, St. Cloud, Minneapolis, and the
23.26surrounding areas to assist fathers in
23.27overcoming barriers that prevent fathers from
23.28supporting their children economically and
23.29emotionally. This is a onetime appropriation.
23.30(gg) $150,000 each year is from the workforce
23.31development fund for displaced homemaker
23.32programs under Minnesota Statutes, section
23.33116L.96. The commissioner shall distribute
23.34the funds to existing nonprofit and state
24.1displaced homemaker programs. This is a
24.3(hh)(1) $150,000 in fiscal year 2018 is from
24.4the workforce development fund for a grant
24.5to Anoka County to develop and implement
24.6a pilot program to increase competitive
24.7employment opportunities for transition-age
24.8youth ages 18 to 21.
24.9(2) The competitive employment for
24.10transition-age youth pilot program shall
24.11include career guidance components, including
24.12health and life skills, to encourage, train, and
24.13assist transition-age youth in job-seeking
24.14skills, workplace orientation, and job site
24.16(3) In operating the pilot program, Anoka
24.17County shall collaborate with schools,
24.18disability providers, jobs and training
24.19organizations, vocational rehabilitation
24.20providers, and employers to build upon
24.21opportunities and services, to prepare
24.22transition-age youth for competitive
24.23employment, and to enhance employer
24.24connections that lead to employment for the
24.26(4) Grant funds may be used to create an
24.27on-the-job training incentive to encourage
24.28employers to hire and train qualifying
24.29individuals. A participating employer may
24.30receive up to 50 percent of the wages paid to
24.31the employee as a cost reimbursement for
24.32on-the-job training provided.
24.33(ii) $500,000 each year is from the workforce
24.34development fund for rural career counseling
25.1coordinator positions in the workforce service
25.2areas and for the purposes specified in
25.3Minnesota Statutes, section 116L.667. The
25.4commissioner of employment and economic
25.5development, in consultation with local
25.6workforce investment boards and local elected
25.7officials in each of the service areas receiving
25.8funds, shall develop a method of distributing
25.9funds to provide equitable services across
25.10workforce service areas.
25.11(jj) In calendar year 2017, the public utility
25.12subject to Minnesota Statutes, section
25.13116C.779, must withhold $1,000,000 from the
25.14funds required to fulfill its financial
25.15commitments under Minnesota Statutes,
25.16section 116C.779, subdivision 1, and pay such
25.17amounts to the commissioner of employment
25.18and economic development for deposit in the
25.19Minnesota 21st century fund under Minnesota
25.20Statutes, section 116J.423.
25.21(kk) $350,000 in fiscal year 2018 is for a grant
25.22to AccessAbility Incorporated to provide job
25.23skills training to individuals who have been
25.24released from incarceration for a felony-level
25.25offense and are no more than 12 months from
25.26the date of release. AccessAbility Incorporated
25.27shall annually report to the commissioner on
25.28how the money was spent and the results
25.29achieved. The report must include, at a
25.30minimum, information and data about the
25.31number of participants; participant
25.32homelessness, employment, recidivism, and
25.33child support compliance; and training
25.34provided to program participants.
|Appropriations by Fund
|Subd. 4.General Support Services
26.5(a) $250,000 each year is for the publication,
26.6dissemination, and use of labor market
26.7information under Minnesota Statutes, section
26.9(b) $1,269,000 each year is for transfer to the
26.10Minnesota Housing Finance Agency for
26.11operating the Olmstead Compliance Office.
26.12(c) $500,000 each year is for a statewide
26.13capacity-building grant program. The
26.14commissioner of employment and economic
26.15development shall, through a request for
26.16proposal process, select a nonprofit
26.17organization to administer the
26.18capacity-building grant program. The selected
26.19organization must have demonstrated
26.20experience in providing financial and technical
26.21assistance to nonprofit organizations statewide.
26.22The selected organization shall provide
26.23financial assistance in the form of subgrants
26.24and technical assistance to small to
26.25medium-sized nonprofit organizations
26.26offering, or seeking to offer, workforce or
26.27economic development programming that
26.28addresses economic disparities in underserved
26.29cultural communities. This assistance can be
26.30provided in-house or in partnership with other
26.31organizations depending on need. The
26.32nonprofit organization selected to administer
26.33the grant program shall report to the
26.34commissioner by February 1 each year
26.35regarding assistance provided, including the
26.36demographic and geographic distribution of
27.1the grant awards, services, and outcomes. By
27.2April 1 each year, the commissioner shall
27.3report the information submitted by the
27.4nonprofit to the legislative committees having
27.5jurisdiction over economic development
27.6issues. Of this amount, one percent is for the
27.7commissioner to conduct the request for
27.8proposal process and monitor the selected
27.9organization. The nonprofit selected to
27.10administer the grant program may use up to
27.11five percent of the grant funds for
27.12administration costs and providing technical
27.13assistance to potential subgrantees.
27.14(d) $25,000 each year is for the administration
27.15of state aid for the Destination Medical Center
27.16under Minnesota Statutes, sections 469.40 to
|Appropriations by Fund
27.19(a) $300,000 each year is for the STEP grants
27.20in Minnesota Statutes, section 116J.979.
27.21(b) $180,000 each year is for the Invest
27.22Minnesota marketing initiative in Minnesota
27.23Statutes, section 116J.9781.
27.24(c) $270,000 each year is for the Minnesota
27.25Trade Offices under Minnesota Statutes,
27.27(d) $50,000 each year is for the Trade Policy
27.28Advisory Council under Minnesota Statutes,
|Subd. 5.Minnesota Trade Office
|Subd. 6.Vocational Rehabilitation
28.1(a) $14,300,000 each year is for the state's
28.2vocational rehabilitation program under
28.3Minnesota Statutes, chapter 268A. In fiscal
28.4year 2020 and beyond, the base amount is
28.6(b) $3,011,000 each year is for grants to
28.7centers for independent living under
28.8Minnesota Statutes, section 268A.11.
28.9(c) $6,995,000 each year is from the general
28.10fund and $6,830,000 each year is from the
28.11workforce development fund for extended
28.12employment services for persons with severe
28.13disabilities under Minnesota Statutes, section
28.14268A.15. Of the general fund amount
28.15appropriated, $1,000,000 each year is for rate
28.16increases to providers of extended employment
28.17services for persons with severe disabilities
28.18under Minnesota Statutes, section 268A.15.
28.19In fiscal year 2020 and beyond, the general
28.20fund base amount is $8,995,000. Of the base
28.21amounts in fiscal years 2020 and 2021,
28.22$2,000,000 in fiscal year 2020 and $2,000,000
28.23in fiscal year 2021 are for rate increases to
28.24providers of extended employment services
28.25for persons with severe disabilities under
28.26Minnesota Statutes, section 268A.15.
28.27(d) $2,555,000 each year is for grants to
28.28programs that provide employment support
28.29services to persons with mental illness under
28.30Minnesota Statutes, sections 268A.13 and
28.32(e) $1,000,000 each year is from the workforce
28.33development fund for grants under Minnesota
28.34Statutes, section 268A.16, for employment
28.35services for persons, including transition-age
29.1youth, who are deaf, deafblind, or
29.2hard-of-hearing. If the amount in the first year
29.3is insufficient, the amount in the second year
29.4is available in the first year.
|Appropriations by Fund
29.6Of this amount, $500,000 each year is for
29.7senior citizens who are becoming blind. At
29.8least half of the funds for this purpose must
29.9be used to provide training services for seniors
29.10who are becoming blind. Training services
29.11must provide independent living skills to
29.12seniors who are becoming blind to allow them
29.13to continue to live independently in their
|Subd. 7.Services for the Blind
29.16(a) $20,000,000 in fiscal year 2018 is for
29.17deposit in the border-to-border broadband fund
29.18account in the special revenue fund established
29.19under Minnesota Statutes, section 116J.396.
29.20(b) $250,000 each year is for the Broadband
29.23(a) An entity receiving a direct appropriation
29.24in this article that received a direct
29.25appropriation in Laws 2016, chapter 189,
29.26article 12, is subject to the requirements for
29.27grants to individually specified recipients
29.28under Laws 2016, chapter 189, article 12,
29.30(b) Any recipient of a direct appropriation
29.31from the workforce development fund for
29.32adult workforce-related programs under
29.33subdivision 3 not subject to the requirements
29.34of paragraph (a) is subject to the reporting
30.1requirements under Minnesota Statutes,
|Subd. 8.Broadband Development
|Sec. 3. HOUSING FINANCE AGENCY
30.5The amounts that may be spent for each
30.6purpose are specified in the following
30.8Unless otherwise specified, this appropriation
30.9is for transfer to the housing development fund
30.10for the programs specified in this section.
30.11Except as otherwise indicated, this transfer is
30.12part of the agency's permanent budget base.
|Subdivision 1.Total Appropriation
30.14(a)(1) This appropriation is for the economic
30.15development and housing challenge program
30.16under Minnesota Statutes, section 462A.33.
30.17The agency must continue to strengthen its
30.18efforts to address the disparity rate between
30.19white households and indigenous American
30.20Indians and communities of color. Of this
30.21amount, $1,208,000 each year shall be made
30.22available during the first 11 months of the
30.23fiscal year exclusively for housing projects
30.24for American Indians. Any funds not
30.25committed to housing projects for American
30.26Indians in the first 11 months of each fiscal
30.27year shall be available for any eligible activity
30.28under Minnesota Statutes, section 462A.33.
30.29(2) The appropriation may be used to finance
30.30the construction or replacement of real
30.31property that is located in Melrose affected by
30.32the fire on September 8, 2016.
31.1(3) The commissioner may allocate a portion
31.2of the appropriation for the economic
31.3development and housing challenge program
31.4for assistance in the area included in DR-4290,
31.5as provided in Minnesota Statutes, section
31.612A.09. The maximum loan amount per
31.7housing structure is $20,000. Within the limits
31.8of available appropriations, the agency may
31.9increase the maximum amount if the cost of
31.10repair or replacement of the residential
31.11property exceeds the total of the maximum
31.12loan amount and any assistance available from
31.13FEMA, other federal government agencies,
31.14including the Small Business Administration,
31.15and private insurance and flood insurance
31.17(b) $2,000,000 each year is for the purposes
31.18of the workforce housing development
31.19program under Minnesota Statutes, section
31.20462A.39. The commissioner of housing
31.21finance may hire staff sufficient for the
31.22purposes of this paragraph.
|Subd. 2.Challenge Program
31.24(a) This appropriation is for deposit in the
31.25housing fund account created under Minnesota
31.26Statutes, section 462A.201, and may be used
31.27for the purposes provided in that section.
31.28(b) $1,750,000 in fiscal year 2018 is for the
31.29rental assistance to highly mobile students
31.30program under Minnesota Statutes, section
31.31462A.201, subdivision 2, paragraph (a), clause
|Subd. 3.Housing Trust Fund
32.1This appropriation is for the rental housing
32.2assistance program for persons with a mental
32.3illness or families with an adult member with
32.4a mental illness, under Minnesota Statutes,
32.5section 462A.2097. Among comparable
32.6proposals, the agency shall prioritize those
32.7proposals that target, in part, eligible persons
32.8who desire to move to more integrated,
|Subd. 4.Rental Assistance for Mentally Ill
32.11(a) This appropriation is for the family
32.12homeless prevention and assistance programs
32.13under Minnesota Statutes, section 462A.204.
32.14(b) $250,000 in fiscal year 2018 is for grants
32.15to programs under Minnesota Statutes, section
32.16462A.204, subdivision 8.
|Subd. 5.Family Homeless Prevention
32.18This appropriation is for the home ownership
32.19assistance program under Minnesota Statutes,
32.20section 462A.21, subdivision 8. The agency
32.21shall continue to strengthen its efforts to
32.22address the disparity gap in the
32.23homeownership rate between white
32.24households and indigenous American Indians
32.25and communities of color.
|Subd. 6.Home Ownership Assistance Fund
32.27(a) This appropriation is for the affordable
32.28rental investment fund program under
32.29Minnesota Statutes, section 462A.21,
32.30subdivision 8b, to finance the acquisition,
32.31rehabilitation, and debt restructuring of
32.32federally assisted rental property and for
32.33making equity take-out loans under Minnesota
32.34Statutes, section 462A.05, subdivision 39.
33.1(b) The owner of federally assisted rental
33.2property must agree to participate in the
33.3applicable federally assisted housing program
33.4and to extend any existing low-income
33.5affordability restrictions on the housing for
33.6the maximum term permitted. The owner must
33.7also enter into an agreement that gives local
33.8units of government, housing and
33.9redevelopment authorities, and nonprofit
33.10housing organizations the right of first refusal
33.11if the rental property is offered for sale.
33.12Priority must be given among comparable
33.13federally assisted rental properties to
33.14properties with the longest remaining term
33.15under an agreement for federal assistance.
33.16Priority must also be given among comparable
33.17rental housing developments to developments
33.18that are or will be owned by local government
33.19units, a housing and redevelopment authority,
33.20or a nonprofit housing organization.
33.21(c) The appropriation also may be used to
33.22finance the acquisition, rehabilitation, and debt
33.23restructuring of existing supportive housing
33.24properties. For purposes of this subdivision,
33.25"supportive housing" means affordable rental
33.26housing with links to services necessary for
33.27individuals, youth, and families with children
33.28to maintain housing stability.
|Subd. 7.Affordable Rental Investment Fund
33.30This appropriation is for the housing
33.31rehabilitation program under Minnesota
33.32Statutes, section 462A.05, subdivision 14. Of
33.33this amount, $2,772,000 each year is for the
33.34rehabilitation of owner-occupied housing,
33.35$3,743,000 each year is for the rehabilitation
34.1of eligible rental housing. In administering a
34.2rehabilitation program for rental housing, the
34.3agency may apply the processes and priorities
34.4adopted for administration of the economic
34.5development and housing challenge program
34.6under Minnesota Statutes, section 462A.33.
|Subd. 8.Housing Rehabilitation
34.9This appropriation is for the homeownership
34.10education, counseling, and training program
34.11under Minnesota Statutes, section 462A.209.
34.12Priority may be given to funding programs
34.13that are aimed at culturally specific groups
34.14who are providing services to members of their
|Subd. 9.Homeownership Education, Counseling,
34.17This appropriation is for nonprofit capacity
34.18building grants under Minnesota Statutes,
34.19section 462A.21, subdivision 3b. Of this
34.20amount, $125,000 each year is for support of
34.21the Homeless Management Information
|Subd. 10.Capacity Building Grants
34.24This appropriation is for grants to Build
34.25Wealth MN to provide a family stabilization
34.26plan program including program outreach,
34.27financial literacy education, and budget and
|Subd. 11.Build Wealth MN
|Sec. 4. DEPARTMENT OF LABOR AND
|Subdivision 1.Total Appropriation
35.5The amounts that may be spent for each
35.6purpose are specified in the following
|Appropriations by Fund
35.9(a) This appropriation is from the workers'
35.11(b)(1) $3,000,000 each year is for workers'
35.12compensation system upgrades. This amount
35.13is available until June 30, 2021. This is a
35.15(2) This appropriation includes funds for
35.16information technology project services and
35.17support subject to the provisions of Minnesota
35.18Statutes, section 16E.0466. Any ongoing
35.19information technology costs must be
35.20incorporated into the service level agreement
35.21and must be paid to the Office of MN.IT
35.22Services by the commissioner of labor and
35.23industry under the rates and mechanism
35.24specified in that agreement.
|Subd. 2.Workers' Compensation
|Subd. 3.Labor Standards and Apprenticeship
35.30(a) $500,000 each year is from the general
35.31fund for wage theft prevention under the
35.32division of labor standards.
35.33(b) $100,000 each year is from the workforce
35.34development fund for labor education and
35.35advancement program grants under Minnesota
36.1Statutes, section 178.11, to expand and
36.2promote registered apprenticeship training for
36.3minorities and women.
36.4(c) $300,000 each year is from the workforce
36.5development fund for the PIPELINE program.
36.6(d) $200,000 each year is from the workforce
36.7development fund for grants to the
36.8Construction Careers Foundation for the
36.9Helmets to Hardhats Minnesota initiative.
36.10Grant funds must be used to recruit, retain,
36.11assist, and support National Guard, reserve,
36.12and active duty military members' and
36.13veterans' participation into apprenticeship
36.14programs registered with the Department of
36.15Labor and Industry and connect them with
36.16career training and employment in the building
36.17and construction industry. The recruitment,
36.18selection, employment, and training must be
36.19without discrimination due to race, color,
36.20creed, religion, national origin, sex, sexual
36.21orientation, marital status, physical or mental
36.22disability, receipt of public assistance, or age.
36.23This is a onetime appropriation.
36.24(e) $1,029,000 each year is from the workforce
36.25development fund for the apprenticeship
36.26program under Minnesota Statutes, chapter
36.28(f) $150,000 each year is from the workforce
36.29development fund for prevailing wage
|Appropriations by Fund
36.32This appropriation is from the workers'
|Subd. 4.Workplace Safety
|Subd. 5.General Support
37.6(a) Except as provided in paragraphs (b) and
37.7(c), this appropriation is from the workers'
37.9(b) $200,000 in fiscal year 2018 is from the
37.10workforce development fund for the
37.11commissioner of labor and industry to convene
37.12and collaborate with stakeholders as provided
37.13under Minnesota Statutes, section 175.46,
37.14subdivision 3, and to develop youth skills
37.15training competencies for approved
37.16occupations. This is a onetime appropriation.
37.17(c) $500,000 in fiscal year 2019 is from the
37.18workforce development fund to administer the
37.19youth skills training program under Minnesota
37.20Statutes, section 175.46. The commissioner
37.21shall award up to five grants each year to local
37.22partnerships located throughout the state, not
37.23to exceed $100,000 per local partnership grant.
37.24The commissioner may use a portion of this
37.25appropriation for administration of the grant
37.26program. The base amount for this program
37.27is $500,000 each year beginning in fiscal year
|Appropriations by Fund
37.30(a) $394,000 each year is for the Office of
37.31Collaboration and Dispute Resolution under
37.32Minnesota Statutes, section 179.90. Of this
37.33amount, $160,000 each year is for grants under
37.34Minnesota Statutes, section 179.91.
38.1(b) $68,000 each year is from the general fund
38.2for grants to area labor management
38.3committees. Grants may be awarded for a
38.412-month period beginning July 1 each year.
38.5Any unencumbered balance remaining at the
38.6end of the first year does not cancel but is
38.7available for the second year.
38.8(c) $125,000 each year is for purposes of the Public Employment Relations Board under
38.9Minnesota Statutes, section 179A.041
|Sec. 5. BUREAU OF MEDIATION SERVICES
38.12This appropriation is from the workers'
|Sec. 6. WORKERS' COMPENSATION COURT
|Sec. 7. DEPARTMENT OF COMMERCE
|Subdivision 1.Total Appropriation
38.22The amounts that may be spent for each
38.23purpose are specified in the following
|Appropriations by Fund
38.26(a) $400,000 each year is for grants to Prepare
38.27and Prosper for purposes of developing,
38.28marketing, evaluating, and distributing a
38.29financial services inclusion program that will
38.30assist low-income and financially underserved
38.31populations build savings, strengthen credit,
38.32and provide services to assist them in being
38.33more financially stable and secure. Grants in
38.34fiscal year 2018 must be matched by nonstate
39.1contributions. Money remaining after the first
39.2year is available for the second year.
39.3(b) $100,000 in fiscal year 2018 is for a grant
39.4to Exodus Lending to assist individuals in
39.5reaching financial stability and resolving
39.6payday loans. this appropriation is available
39.7until June 30, 2020.
|Subd. 2.Financial Institutions
39.10This appropriation is from the petroleum tank
|Subd. 3.Petroleum Tank Release Compensation
39.13(a) $384,000 each year is for additional
39.14compliance efforts with unclaimed property.
39.15The commissioner may issue contracts for
39.17(b) $100,000 each year is for the support of
39.19(c) $33,000 each year is for rulemaking and
39.20administration under Minnesota Statutes,
|Subd. 4.Administrative Services
39.26$1,610,000 each year is from the
39.27telecommunication access Minnesota fund
39.28account in the special revenue fund for the
39.29following transfers. This appropriation is
39.30added to the department's base.
39.31(1) $1,170,000 each year is to the
39.32commissioner of human services to
39.33supplement the ongoing operational expenses
40.1of the Commission of Deaf, DeafBlind, and
40.3(2) $290,000 each year is to the chief
40.4information officer for the purpose of
40.5coordinating technology accessibility and
40.7(3) $100,000 each year is to the Legislative
40.8Coordinating Commission for captioning of
40.9legislative coverage. This transfer is subject
40.10to Minnesota Statutes, section 16A.281; and
40.11(4) $50,000 each year is to the Office of
40.12MN.IT Services for a consolidated access fund
40.13to provide grants to other state agencies related
40.14to accessibility of their Web-based services.
|Appropriations by Fund
40.20(a) $279,000 each year is for health care
40.22(b)(1) $200,000 in fiscal year 2018 is to create
40.23and execute a statewide education and
40.24outreach campaign to protect seniors, meaning
40.25those 60 years of age or older, vulnerable
40.26adults, as defined in Minnesota Statutes,
40.27section 626.5572, subdivision 21, and their
40.28caregivers from financial fraud and
40.30(2) The education and outreach campaign must
40.31be statewide, and must include, but is not
40.32limited to, the dissemination of information
40.33through television, print, or other media,
41.1training and outreach to senior living facilities,
41.2and the creation of a senior fraud toolkit.
41.3(3) The commissioner of commerce shall
41.4report by January 15, 2018, to the chairs and
41.5ranking minority members of the committees
41.6of the house of representatives and senate
41.7having jurisdiction over commerce issues
41.8regarding the results of the statewide education
41.9and outreach campaign, and recommendations
41.10for supporting ongoing efforts to prevent
41.11financial fraud from occurring to, and the
41.12financial exploitation of, seniors, vulnerable
41.13adults, and their caregivers.
41.14(c) The revenue transferred in Minnesota
41.15Statutes, section 297I.11, subdivision 2, to the
41.16insurance fraud prevention account must be
41.17used in part for compensation for two new
41.18employees in the Commerce Fraud Bureau to
41.19perform analytical duties. The new employees
41.20must not be peace officers.
|Appropriations by Fund
|Subd. 7.Energy Resources
41.25(a) $150,000 each year is to remediate
41.26vermiculate insulation from households that
41.27are eligible for weatherization assistance under
41.28Minnesota's weatherization assistance program
41.29state plan under Minnesota Statutes, section
41.30216C.264. Remediation must be done in
41.31conjunction with federal weatherization
41.32assistance program services.
41.33(b) $832,000 each year is for energy regulation
41.34and planning unit staff.
42.1(c) $100,000 each year is from the renewable
42.2development account in the special revenue
42.3fund established in Minnesota Statutes, section
42.4116C.779, subdivision 1, to administer the
42.5"Made in Minnesota" solar energy production
42.6incentive program in Minnesota Statutes,
42.7section 216C.417. Any remaining unspent
42.8funds cancel back to the renewable
42.9development account at the end of the
42.11(d) $500,000 each year is from the renewable
42.12development account in the special revenue
42.13fund established in Minnesota Statutes, section
42.14116C.779, subdivision 1, for costs associated
42.15with any third-party expert evaluation of a
42.16proposal submitted in response to a request
42.17for proposal to the renewable development
42.18advisory group under Minnesota Statutes,
42.19section 116C.779, subdivision 1, paragraph
42.20(l). No portion of this appropriation may be
42.21expended or retained by the commissioner of
42.22commerce. Any funds appropriated under this
42.23paragraph that are unexpended at the end of a
42.24fiscal year cancel to the renewable
|Appropriations by Fund
42.31(a) $642,000 each year is for health insurance
42.32rate review staffing.
42.33(b) $412,000 each year is for actuarial work
42.34to prepare for implementation of
43.1(c) $20,000 in fiscal year 2018 is for payment
43.2of two years of membership dues for
43.3Minnesota to the National Conference of
43.4Insurance Legislators. This is a onetime
|Appropriations by Fund
43.7$21,000 each year is for the purposes of
43.8Minnesota Statutes, section 237.045.
|Sec. 8. PUBLIC UTILITIES COMMISSION
43.10(a) $300,000 in fiscal year 2018 is for a grant
43.11to the city of New Trier to replace water
43.12infrastructure under Hogan Avenue, including
43.13related road reconstruction, and to acquire land
43.14for predesign, design, and construction of a
43.15storm water pond that will be colocated with
43.16the pond of the new subdivision. This
43.17appropriation does not require a nonstate
43.19(b) $600,000 in fiscal year 2018 is for a grant
43.20to the Ramsey/Washington Recycling and
43.21Energy Board to design, construct, and equip
43.22capital improvements to the
43.23Ramsey/Washington Recycling and Energy
43.24Center in Newport.
43.25(c) $900,000 in fiscal year 2018 is for a grant
43.26to the Clear Lake-Clearwater Sewer Authority
43.27to remove and replace the existing wastewater
43.28treatment facility. This project is intended to
43.29prevent the discharge of phosphorus into the
43.30Mississippi River. This appropriation is not
43.31available until the commissioner of
43.32management and budget determines that at
43.33least $200,000 is committed to the project
44.1from nonstate sources and the authority has
44.2applied for at least two grants to offset the
44.3cost. An amount equal to any grant money
44.4received by the authority must be returned to
44.5the general fund.
|Sec. 9. PUBLIC FACILITIES AUTHORITY
Section 1. Minnesota Statutes 2016, section 175.45, is amended to read:
COMPETENCY STANDARDS FOR DUAL TRAINING.
Subdivision 1. Duties; goal.
The commissioner of labor and industry shall convene
for dual training, and
44.12provide technical assistance to develop dual-training programs
The goal of dual training
44.13 is to provide employees of an employer with training to acquire competencies that
44.14 employer requires.
standards shall be identified for employment in
occupations in advanced manufacturing, health care services, information technology,
agriculture. Competency standards are not rules and are exempt from the rulemaking
provisions of chapter 14, and the provisions in section
concerning exempt rules do
Definition; competency standards Definitions.
For purposes of this section,
44.20the following terms have the meanings given them:
"competency standards" means the specific knowledge and skills necessary for a
44.23(2) "dual-training program" means an employment-based earn-as-you-learn program
44.24where the trainee is employed by a participating employer and receives structured
44.25training 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
credible competency standards. Competency standards must be consistent with, to the
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
identify competency standards for
entry level entry-level
and higher skill levels;
verify the competency standards and skill levels and their transferability by subject
matter expert representatives of each respective industry;
develop models for Minnesota educational institutions to engage in providing
education and training to meet the competency standards established;
encourage participation by employers and labor in the competency
identification process for occupations in their industry;
45.11 (5) (6)
dual training competency standards dual-training programs
45.13(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
45.16 training dual-training
competency grant program under section
. The commissioner
of labor and industry shall maintain the competency standards on the department's
Sec. 2. [175.46] YOUTH SKILLS TRAINING PROGRAM.
45.20 Subdivision 1. Program established; grants authorized. The commissioner shall
45.21approve youth skills training programs established for the purpose of providing work-based
45.22skills training for student learners ages 16 and older. The commissioner shall award
45.23to local partnerships for the implementation and coordination of local youth skills
45.24programs as provided in this section.
45.25 Subd. 2. Definitions. (a) For purposes of this section, the terms in this subdivision have
45.26the meanings given.
45.27(b) "School district" means a school district or charter school.
45.28(c) "Local partnership" means a school district, nonpublic school, intermediate school
45.29district, or postsecondary institution, in partnership with other school districts,
45.30schools, intermediate school districts, postsecondary institutions, workforce development
45.31authorities, economic development authorities, nonprofit organizations, labor unions,
46.1individuals who have an agreement with one or more local employers to be responsible
46.2implementing and coordinating a local youth skills training program.
46.3(d) "Student learner" means a student who is both enrolled in a course of study at
46.4or nonpublic school to obtain related instruction for academic credit and is employed
46.5a written agreement to obtain on-the-job skills training under a youth skills training
46.6approved under this section.
46.7(e) "Commissioner" means the commissioner of labor and industry.
46.8 Subd. 3. Duties. (a) The commissioner shall:
46.9(1) approve youth skills training programs in high-growth, high-demand occupations
46.11(i) that the work of the student learner in the occupations declared particularly
46.12shall be incidental to the training;
46.13(ii) that the work shall be intermittent and for short periods of time, and under
46.14and close supervision of a qualified and experienced person;
46.15(iii) that safety instruction shall be provided to the student learner and may be
46.16the school and correlated by the employer with on-the-job training;
46.17(iv) a schedule of organized and progressive work processes to be performed on the
46.18(v) a schedule of wage rates in compliance with section 177.24; and
46.19(vi) whether the student learner will obtain secondary school academic credit,
46.20postsecondary credit, or both, for the training program;
46.21(2) approve occupations and maintain a list of approved occupations for programs under
46.23(3) issue requests for proposals for grants;
46.24(4) work with individuals representing industry and labor to develop new youth skills
46.26(5) develop model program guides;
46.27(6) monitor youth skills training programs;
46.28(7) provide technical assistance to local partnership grantees;
46.29(8) work with providers to identify paths for receiving postsecondary credit for
46.30participation in the youth skills training program; and
47.1(9) approve other activities as necessary to implement the program.
47.2(b) The commissioner shall collaborate with stakeholders, including, but not limited
47.3representatives of secondary school institutions, career and technical education instructors,
47.4postsecondary institutions, businesses, and labor, in developing youth skills training
47.5programs, and identifying and approving occupations and competencies for youth skills
47.7 Subd. 4. Training agreement. Each student learner shall sign a written training agreement
47.8on a form prescribed by the commissioner. Each agreement shall contain the name of
47.9student learner, and be signed by the employer, the school coordinator or administrator,
47.10the student learner, or if the student learner is a minor, by the student's parent
47.11guardian. Copies of each agreement shall be kept on file by both the school and the
47.12 Subd. 5. Program approval. The commissioner may grant exemptions from the
47.13provisions of chapter 181A for student learners participating in youth skills training
47.14approved by the commissioner under this section. The approval of a youth skills training
47.15program will be reviewed annually. The approval of a youth skills training program
47.16be revoked at any time if the commissioner finds that:
47.17(1) all provisions of subdivision 3 have not been met in the previous year; or
47.18(2) reasonable precautions have not been observed for the safety of minors.
47.19The commissioner shall maintain and annually update a list of occupations and tasks
47.20for student learners in compliance with federal law.
47.21 Subd. 6. Interactions with education finance. (a) For the purpose of computing state
47.22aids for the enrolling school district, the hours a student learner participates in
a youth skills
47.23training program under this section must be counted in the student's hours of average
47.24membership under section 126C.05.
47.25(b) Educational expenses for a participating student learner must be included in the
47.26enrolling district's career and technical revenue as provided under section 124D.4531.
47.27 Subd. 7. Academic credit. A school district may grant academic credit to student learners
47.28participating in youth skills training programs under this section in accordance with
47.30 Subd. 8. Postsecondary credit. A postsecondary institution may award postsecondary
47.31credit to a student learner who successfully completes a youth skills training program.
48.1 Subd. 9. Work-based learning program. A youth skills training program shall qualify
48.2as a work-based learning program if it meets requirements for a career and technical
48.3program and is supervised by a qualified teacher with appropriate licensure for a
48.5 Subd. 10. School coordinator. Unless otherwise required for a work-based learning
48.6program, a youth skills training program may be supervised by a qualified teacher
or by an
48.7administrator as determined by the school district.
48.8 Subd. 11. Other apprenticeship programs. (a) This section shall not affect programs
48.9under section 124D.47.
48.10(b) A registered apprenticeship program governed by chapter 178 may grant credit
48.11toward the completion of a registered apprenticeship for the successful completion
48.12youth skills training program under this section.
48.13 Subd. 12. Grant applications. (a) Applications for grants must be made to the
48.14commissioner on a form provided by the commissioner.
48.15(b) A local partnership may apply for a grant and shall include in its grant application:
48.16(1) the identity of each school district, public agency, nonprofit organization, or
48.17who is a participant in the local partnership;
48.18(2) the identity of each employer who is a participant in the local partnership and
48.19amount of matching funds provided by each employer, if any;
48.20(3) a plan to accomplish the implementation and coordination of activities specified
48.21this subdivision; and
48.22(4) the identity of a fiscal agent responsible for receiving, managing, and accounting
48.24 Subd. 13. Grant awards. (a) A local partnership awarded a grant under this section
48.25must use the grant award for any of the following implementation and coordination
48.26(1) recruiting additional employers to provide on-the-job training and supervision
48.27student learners and providing technical assistance to those employers;
48.28(2) recruiting students to participate in the local youth skills training program,
48.29the progress of student learners participating in the program, and monitoring program
48.31(3) coordinating youth skills training activities within participating school districts
48.32among participating school districts, postsecondary institutions, and employers;
49.1(4) coordinating academic, vocational and occupational learning, school-based and
49.2work-based learning, and secondary and postsecondary education for participants in
49.3local youth skills training program;
49.4(5) coordinating transportation for student learners participating in the local youth
49.5training program; and
49.6(6) any other implementation or coordination activity that the commissioner may direct
49.7or permit the local partnership to perform.
49.8(b) Grant awards may not be used to directly or indirectly pay the wages of a student
49.10 Subd. 14. Outcomes. The following outcomes are expected of a local youth skills training
49.12(1) at least 80 percent of the student learners who participate in a youth skills
49.13program receive a high school diploma when eligible upon completion of the training
49.15(2) at least 60 percent of the student learners who participate in a youth skills
49.16program receive a recognized credential upon completion of the training program.
49.17 Subd. 15. Reporting. (a) By February 1, 2019, and annually thereafter, the commissioner
49.18shall report on the activity and outcomes of the program for the preceding fiscal
year to the
49.19chairs of the legislative committees with jurisdiction over jobs and economic growth
49.20and finance. At a minimum, the report must include:
49.21(1) the number of student learners who commenced the training program and the number
49.22who completed the training program; and
49.23(2) recommendations, if any, for changes to the program.
49.24(b) The initial report shall include a detailed description of the differences between
49.25state 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
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
the license is issued except that if the initial license is not issued for a whole
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
fee shall be:
(d) If there is a continuing education requirement for renewal of the license, then
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
one year; and $20 if the renewal license duration is two years.
(e) If the license is issued under sections
then a board fee must be included in the license fee and the renewal license fee.
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
, then the contractor recovery fund fee required under section
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
June 30, 2017 September 30, 2021
, the following fees apply:
If there is a continuing education requirement for renewal of the license, then a
education fee must be included in the renewal license fee. The continuing education
all license classifications shall be $5.
Sec. 4. [326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO
51.6 Subdivision 1. Definition. For purposes of this section, "place of public accommodation"
51.7means a publicly or privately owned facility that is designed for occupancy by 200
51.8people and includes a sports or entertainment arena, stadium, theater, community or
51.9convention hall, special event center, indoor amusement facility or water park, or
51.11 Subd. 2. Application. Construction, additions, and alterations to a place of public
51.12accommodation must be designed and constructed to comply with the State Building Code.
51.13 Subd. 3. Enforcement. In a municipality that has not adopted the code by ordinance
51.14under section 326B.121, subdivision 2, the commissioner shall enforce this section
51.15accordance with section 326B.107, subdivision 1.
51.16 Subd. 4. Fire protection systems. If fire protection systems regulated by chapter 299M
51.17are required in a place of public accommodation, then those plan reviews and inspections
51.18shall 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
(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality;
(2) the surcharge required by section
(b) The total valuation and fee schedule is:
(1) $1 to $500,
(2) $501 to $2,000,
for the first $500 plus
for each additional $100
or fraction thereof, to and including $2,000;
(3) $2,001 to $25,000,
for the first $2,000 plus
additional $1,000 or fraction thereof, to and including $25,000;
(4) $25,001 to $50,000,
for the first $25,000 plus
additional $1,000 or fraction thereof, to and including $50,000;
(5) $50,001 to $100,000,
for the first $50,000 plus
each additional $1,000 or fraction thereof, to and including $100,000;
(6) $100,001 to $500,000,
for the first $100,000 plus
each additional $1,000 or fraction thereof, to and including $500,000;
(7) $500,001 to $1,000,000,
for the first $500,000 plus
for each additional $1,000 or fraction thereof, to and including $1,000,000; and
(8) $1,000,001 and up,
for the first $1,000,000 plus
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
(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
(minimum charge one-half hour), $63.25 per hour.
(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than
then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment,
hourly wages, and fringe benefits of the employees involved.
52.22EFFECTIVE DATE.Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective
52.23July 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
52.26 Subd. 16. Wind electric systems. (a) The inspection fee for the installation of a wind
52.28(1) zero watts to and including 100,000 watts, $80;
52.29(2) 100,001 watts to and including 500,000 watts, $105;
52.30(3) 500,001 watts to and including 1,000,000 watts, $120;
53.1(4) 1,000,001 watts to and including 1,500,000 watts, $125;
53.2(5) 1,500,001 watts to and including 2,000,000 watts, $130;
53.3(6) 2,000,001 watts to and including 3,000,000 watts, $145; and
53.4(7) 3,000,001 watts and larger, $160.
53.5(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
53.6current energy output of one individual wind turbine.
Sec. 7. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to
53.9 Subd. 17. Solar photovoltaic systems. (a) The inspection fee for the installation of a
53.10solar photovoltaic system is:
53.11(1) zero watts to and including 5,000 watts, $60;
53.12(2) 5,001 watts to and including 10,000 watts, $100;
53.13(3) 10,001 watts to and including 20,000 watts, $150;
53.14(4) 20,001 watts to and including 30,000 watts, $200;
53.15(5) 30,001 watts to and including 40,000 watts, $250;
53.16(6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional
53.1710,000 watts over 40,000 watts;
53.18(7) 1,000,001 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000
53.19over 1,000,000 watts; and
53.20(8) 5,000,001 watts and larger, $8,650, and $10 for each additional 10,000 watts over
53.22(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
53.23current 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
(1) elect its chair, vice-chair, and secretary;
(2) adopt bylaws that specify the duties of its officers, the meeting dates of the
and containing such other provisions as may be useful and necessary for the efficient
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
326B.43, subdivision 1
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
326B.127, subdivision 5
(5) adopt rules that regulate the licensure, certification, or registration of plumbing
contractors, journeymen, unlicensed individuals, master plumbers, restricted master
restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders
testers, water conditioning contractors, and water conditioning installers, and other
engaged in the design, installation, and alteration of plumbing systems or engaged
working at the business of water conditioning installation or service, or engaged
working at the business of medical gas system installation, maintenance, or repair,
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
(6) adopt rules that regulate continuing education for individuals licensed as master
plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers,
54.23registered unlicensed individuals,
, and water
, and for individuals certified under sections
. 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,
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
(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
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
(b) The board shall comply with section
15.0597, subdivisions 2
(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
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
in a water distribution system serving:
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
55.23(2) a multifamily or nonresidential building, where the plumbing installation has
55.24initially established by a licensed plumber. Isolation valves shall be required for
55.25conditioning installations and shall be readily accessible. Water conditioning installation
55.26does not include:
55.27(i) a valve that allows isolation of the water conditioning installation;
55.28(ii) piping greater than two-inch nominal pipe size; or
55.29(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
56.3 Subd. 5. Direct supervision. "Direct supervision," with respect to direct supervision of
56.4a registered unlicensed individual, means that:
56.5(1) at all times while the registered unlicensed individual is performing water conditioning
56.6installation work, a direct supervisor is present at the location where the registered
56.7individual is working;
56.8(2) the direct supervisor is physically present and immediately available to the registered
56.9unlicensed individual at all times for assistance and direction;
56.10(3) any form of electronic supervision does not meet the requirement of being physically
56.12(4) the direct supervisor reviews the water conditioning installation work performed
56.13the registered unlicensed individual before the water conditioning installation is
56.15(5) the direct supervisor determines that all water conditioning installation work
56.16performed by the registered unlicensed individual is performed in compliance with
56.17326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing
56.18and all orders issued under section 326B.082.
Sec. 11. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision
56.21 Subd. 6. Direct supervisor. "Direct supervisor" means a master plumber, journeyman
56.22plumber, restricted master plumber, restricted journeyman plumber, water conditioning
56.23master, or water conditioning journeyman responsible for providing direct supervision
56.24a 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,
servicing, and installing
water conditioning installations, and has successfully passed the
examination for water conditioning masters. A water conditioning journeyman license
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
examination for water conditioning journeymen. A water conditioning journeyman must
successfully pass the examination for water conditioning masters before being licensed
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
the performance of all water conditioning installation and servicing in accordance
requirements of sections
, all rules adopted under sections
, the Minnesota Plumbing Code, and all orders issued under section
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
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
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
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
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
accompanied by all fees required by section
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
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,
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
. 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
supervise the performance of plumbing work or make assignments of plumbing work to
(b) Water conditioning contractors employing plumber's apprentices to perform water
conditioning work shall maintain records establishing compliance with this subdivision
shall identify all plumber's apprentices performing water conditioning work, and shall
the department to examine and copy all such records.
Sec. 14. [326B.555] REGISTERED UNLICENSED INDIVIDUALS.
58.10 Subdivision 1. Registration; supervision; records. (a) All unlicensed individuals
58.11engaged in water conditioning installation must be registered under subdivision 3.
58.12(b) A registered unlicensed individual is authorized to assist in water conditioning
58.13installations in a single family residential unit only when a master plumber, journeyman
58.14plumber, restricted master plumber, restricted journeyman plumber, water conditioning
58.15master, or water conditioning journeyman is available and responsible for ensuring
58.16water conditioning installation work performed by the unlicensed individual complies
58.17the applicable provisions of the plumbing and water conditioning codes and rules adopted
58.18pursuant to such codes. For all other water conditioning installation work, the registered
58.19unlicensed individual must be under the direct supervision of a responsible licensed
58.21(c) Water conditioning contractors employing registered unlicensed individuals to
58.22water conditioning installation work shall maintain records establishing compliance
58.23this subdivision that shall identify all unlicensed individuals performing water conditioning
58.24installations, and shall permit the department to examine and copy all such records.
58.25 Subd. 2. Journeyman exam. A registered unlicensed individual who has completed
58.26875 hours of practical water conditioning installation, servicing, and training is
58.27take the water conditioning journeyman examination. Up to 100 hours of practical water
58.28conditioning installation and servicing experience prior to becoming a registered
58.29individual may be applied to the practical experience requirement. However, none of
58.30practical experience may be applied if the unlicensed individual did not have any
58.31experience in the 12-month period immediately prior to becoming a registered unlicensed
59.1 Subd. 3. Registration, renewals, and fees. An unlicensed individual may register by
59.2completing and submitting to the commissioner an application form provided by the
59.3commissioner, with all fees required by section 326B.58. A completed application form
59.4must state the date, the individual's age, schooling, previous experience and employer,
59.5other information required by the commissioner. The plumbing board may prescribe rules,
59.6not inconsistent with this section, for the registration of unlicensed individuals.
59.7for initial registration may be submitted at any time. Registration must be renewed
59.8and 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,
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
(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
59.18associated 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
or any owner using, or intending to use, the property for a business purpose and not
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
that totals more than
per licensee. The commissioner shall only pay
compensation from the fund for a final judgment that is based on a contract directly
the licensee and the homeowner or lessee that was entered into prior to the cause
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
This appropriation is from the workers'
$4,000,000 in fiscal year 2016 and $6,000,000
in fiscal year 2017 are for workers'
compensation system upgrades and are
60.11available 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
. 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
(1) as permitted by section
181A.07, subdivisions 1, 2, 3, and 4
for this subdivision does not apply to
a high school student age 18 or older,
the student provides a written request for the hours restrictions
to the employer
61.3 during the restricted hours. at least two weeks before any restricted hours begin; or
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
11:30 p.m. on the evening before a school day and beginning at 4:30 a.m. on a school
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
or according to section
Sec. 19. REPEALER.
61.12Minnesota Statutes 2016, section 326B.89, subdivision 14, is repealed.
61.14WORKERS' COMPENSATION ADVISORY COUNCIL; DEPARTMENT
Section 1. Minnesota Statutes 2016, section 176.135, is amended by adding a subdivision
61.18 Subd. 9. Designated contact person and required training related to submission
61.19and payment of medical bills. (a) For purposes of this subdivision:
61.20(1) "clearinghouse" means a health care clearinghouse as defined in section 62J.51,
61.21subdivision 11a, that receives or transmits workers' compensation electronic transactions
61.22as described in section 62J.536;
61.23(2) "department" means the Department of Labor and Industry;
61.24(3) "hospital" means a hospital licensed in this state;
61.25(4) "payer" means:
61.26(i) a workers' compensation insurer;
61.27(ii) an employer, or group of employers, authorized to self-insure for workers'
61.28compensation liability; and
61.29(iii) a third-party administrator licensed by the Department of Commerce under section
61.3060A.23, subdivision 8, to pay or review workers' compensation medical bills under
62.1(5) "submission or payment of medical bills" includes the submission, transmission,
62.2receipt, acceptance, response, adjustment, and payment of medical bills under this
62.3(b) Effective November 1, 2017, each payer, hospital, and clearinghouse must provide
62.4the department with the name and contact information of a designated employee to answer
62.5inquiries related to the submission or payment of medical bills. Payers, hospitals,
62.6clearinghouses must provide the department with the name of a new designated employee
62.7within 14 days after the previously designated employee is no longer employed or becomes
62.8unavailable for more than 30 days. The name and contact information of the designated
62.9employee must be provided on forms and at intervals prescribed by the department.
62.10department must post a directory of the designated employees on the department's Web
62.11(c) The designated employee under paragraph (b) must:
62.12(1) complete training, provided by the department, about submission or payment of
62.13medical bills; and
62.14(2) respond within 30 days to written department inquiries related to submission or
62.15payment of medical bills.
62.16The training requirement in clause (1) does not apply to a payer that has not received
62.17workers' compensation medical bills in the 12 months before the training becomes available.
62.18(d) The commissioner may assess penalties, payable to the assigned risk safety account,
62.19against payers, hospitals, and clearinghouses for violation of this subdivision as
62.20in clauses (1) to (3):
62.21(1) for failure to comply with the requirements in paragraph (b), the commissioner
62.22assess a penalty of $50 for each day of noncompliance after the department has provided
62.23the noncompliant payer, clearinghouse, or hospital with a 30-day written warning;
62.24(2) for failure of the designated employee to complete training under paragraph (c),
62.25clause (1), within 90 days after the department has notified a payer, clearinghouse,
62.26hospital's designated employee that required training is available, the commissioner
62.27assess a penalty of $3,000;
62.28(3) for failure to respond within 30 days to a department inquiry related to submission
62.29or payment of medical bills under paragraph (c), clause (2), the commissioner may
62.30a penalty of $3,000. The commissioner shall not assess a penalty under both this clause
62.31section 176.194, subdivision 3, clause (6), for failure to respond to the same department
62.33EFFECTIVE 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,
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
articles, and supplies provided to patients discharged on January 1, 2016, through
31, 2016, must be based on the Medicare PC-Pricer program in effect on January 1,
63.13(c) For patients discharged on or after the effective date of this section,
inpatient services, articles, and supplies
for patients discharged in each calendar year
based on calculated according to
the PC-Pricer program
in effect on
63.16 January 1 of the year of discharge identified on Medicare's Web site as FY 2016.1, updated
63.17on January 19, 2016
63.18(d) For patients discharged on or after October 1, 2017, payment for inpatient services,
63.19articles, and supplies must be calculated according to the PC-Pricer program posted
63.20Department of Labor and Industry's Web site as follows:
63.21(1) No later than October 1, 2017, and October 1 of each subsequent year, the
63.22commissioner must post on the department's Web site the version of the PC-Pricer program
63.23that is most recently available on Medicare's Web site as of the preceding July 1.
63.24PC-Pricer program is available on the Medicare Web site on any July 1, the PC-Pricer
63.25program most recently posted on the department's Web site remains in effect.
63.26(2) The commissioner must publish notice of the applicable PC-Pricer program in the
63.27State Register no later than October 1 of each year.
63.28(e) The MS-DRG grouper software or program that corresponds to the applicable version
63.29of the PC-Pricer program must be used to determine payment under this subdivision.
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
64.162Q.75, subdivision 3
. For purposes of this section, "insurer" includes both workers'
compensation insurers and self-insured employers.
64.3EFFECTIVE 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
percent of the hospital's usual and customary charges. The threshold amount in effect on
64.10the date of discharge determines the applicability of this paragraph.
January 1, 2017,
and each January 1 thereafter,
must adjust the previous year's threshold by the percent change in average total charges
inpatient case, using data available as of October 1 for non-Critical Access Hospitals
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
64.16must adjust the previous threshold using the data available as of the preceding July
publish notice of the updated threshold in the State Register.
64.18EFFECTIVE 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
receipt of the document at the division, department, office, or the court of appeals.
division, department, office, and the court of appeals shall accept any document which
been delivered to it for legal filing, but may refuse to accept any form or document
the name of the injured employee, employer, or insurer, the date of injury, or the
64.26 injured employee's Social Security number information required by statute or rule
64.27division, department, office, and court of appeals are not required to maintain, and
64.28destroy, 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
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,
office, or the court of appeals which is inadvertently served or filed at the wrong
these agencies shall be deemed to have been served or filed with the proper agency.
receiving agency shall note the date of receipt of a document and shall forward the
to the proper agency no later than two working days following receipt.
Sec. 5. Minnesota Statutes 2016, section 176.285, is amended to read:
65.7176.285 SERVICE OF PAPERS AND NOTICES; ELECTRONIC FILING.
65.8 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
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
it had been delayed in transit for an unusual or unreasonable period of time. In case
nonreceipt or delay, an allowance shall be made for the party's failure to assert
a right within
the prescribed time.
65.16 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
manner and in the format specified by the agency. If electronic filing of a document is
65.20authorized by the agency and a statute or rule requires a copy of the document to
65.21or served on another person or party, the document filed electronically with the agency
65.22provided or served on the other person or party must contain the same information
65.23format required by the commissioner.
Where a statute or rule authorizes or requires a person's signature on a document
be filed with or served on an agency, the signature may be an electronic signature, as defined
65.26by 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
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
65.32 a document electronically if the recipient agrees to receive it in an electronic format.
department or court may adopt rules for the certification of signatures.
66.1(c) An agency may serve a document electronically on a payer, rehabilitation provider,
66.2or attorney. An agency may serve a document on any other party if the recipient agrees
66.3receive it in an electronic format. The date of electronic service of a document is
66.4the recipient is sent a document electronically, or the date the recipient is notified
66.5document is available on a Web site, whichever occurs first.
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
another party to assert a right shall be lengthened by two calendar days when it can
that service to the other party was by mail.
66.10 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
is placed in the official file of the case.
66.13 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
administrative law judge, or the Workers' Compensation Court of Appeals. "Document"
includes documents, reports, notices, orders, papers, forms, information, and data
that are authorized or required to be filed with an agency or the commissioner or
authorized or required to be served on or by an agency or the commissioner. "Payer" means
66.20a workers' compensation insurer, self-insurer employer, or third-party administrator.
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
Sec. 7. Minnesota Statutes 2016, section 176.541, is amended by adding a subdivision to
66.29 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
67.4 Employment Act of 1971, as amended, and the Comprehensive Employment and Training
67.5 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
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
departments shall anticipate these payments by including them in their budgets. In
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
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.
67.19Minnesota Statutes 2016, section 176.541, subdivision 7, is repealed.
Sec. 11. EFFECTIVE DATE.
67.21This article is effective the day following final enactment.
67.23WORKERS' COMPENSATION ADVISORY COUNCIL; SPECIAL
Section 1. [176.1292] FORBEARANCE OF AMOUNTS OWED TO THE SPECIAL
67.27 Subdivision 1. Definitions. For purposes of this section, the following definitions apply.
67.28(a) "Payer" means a workers' compensation insurer, or an employer or group of employers
67.29that are self-insured for workers' compensation.
68.1(b) "Retirement benefits" means retirement benefits paid by any government retirement
68.2benefit program and received by employees, other than old age and survivor insurance
68.3benefits received under the federal Social Security Act, United States Code, title
68.4401 to 434. Retirement benefits include retirement annuities, optional annuities received
68.5lieu of retirement benefits, and any other benefit or annuity paid by a government
68.6program that is not clearly identified as a disability benefit or disability annuity
68.7applicable governing statute.
68.8 Subd. 2. Payment of permanent total disability benefits to employees, dependents,
68.9and legal heirs. (a) A payer is entitled to the relief described in subdivisions 3 and 4 only
68.10if the payer complies with all of the conditions in paragraphs (b) to (d) for all
of the payer's
68.11permanently totally disabled employees and documents compliance according to the
68.12procedures and forms established by the commissioner under subdivision 7.
68.13(b) Except as provided in paragraph (e), the payer must:
68.14(1) recharacterize supplementary benefits paid to all employees as permanent total
68.15disability benefits if the supplementary benefits were paid because the permanent
68.16disability benefits were reduced by retirement benefits received by the employee;
68.17(2) pay all permanently totally disabled employees, regardless of the date of injury,
68.18and future permanent total disability benefits calculated without any reduction for
68.19benefits received by the employees, from the date the employees' benefits were first
68.21(3) for all deceased employees, pay the employees' dependents or, if none, the employees'
68.22legal heirs, the permanent total disability benefits the deceased employees would
68.23received if the benefits had been calculated without any reduction for retirement
68.24received by the employees.
68.25 (c) A payer may take a credit against its obligations under paragraph (b), clauses
68.27(1) supplementary benefits previously paid to an employee that have been recharacterized
68.28as permanent total disability benefits under paragraph (b), clause (1); and
68.29(2) permanent total disability benefits previously paid to an employee.
68.30(d) The payer must pay the permanent total disability benefits as provided in paragraphs
68.31(b) and (c) within the time frames described in clauses (1) to (4). More than one
68.32may apply to a claim.
69.1(1) No later than 150 days following final enactment, the payer must begin paying
69.2recalculated permanent total disability benefit amounts to employees who are entitled
69.3ongoing permanent total disability benefits.
69.4(2) No later than 210 days following final enactment, the payer must pay employees
69.5amounts that past permanent total disability benefits were underpaid.
69.6(3) No later than 270 days following final enactment, the payer must pay the employees'
69.7dependents or legal heirs the amounts that permanent total disability benefits were
69.8(4) The commissioner may waive payment under paragraphs (b) and (c) or extend these
69.9time frames if the payer, after making a good-faith effort, is unable to: locate an
69.10identify or locate the dependents or legal heirs of a deceased employee; or locate
69.11documentation to determine the amount of an underpayment.
69.12(e) Paragraphs (a) to (d) do not apply if:
69.13(1) the employee died before January 1, 2008;
69.14(2) the employee's last permanent total disability benefit was paid before January
69.16(3) the employee's last permanent total disability benefit would have been paid before
69.17January 1, 2000, if it had not been reduced by his or her retirement benefits;
69.18(4) a stipulation for settlement, signed by the employee and approved by a compensation
69.19judge, provided for a full, final, and complete settlement of permanent total disability
69.20under this chapter in exchange for a lump sum payment amount or a lump sum converted
69.21to a structured annuity;
69.22(5) a final court order, or a stipulation for settlement signed by the employee and
69.23by a compensation judge, explicitly states the employee's permanent total disability
69.24may be reduced by specified retirement benefits. Paragraphs (a) to (d) apply if a
69.25or stipulation for settlement is ambiguous about whether the employee's permanent
69.26disability benefits could be reduced by retirement benefits; or
69.27(6) a final court order or a stipulation for settlement described in clause (4) or
69.28vacated after the effective date of this section.
69.29 Subd. 3. Reimbursement of supplementary benefits. (a) Except as provided in
69.30subdivision 9, paragraph (a), clause (2), a payer that has complied with the requirements
69.31subdivision 2, paragraphs (a) to (d):
70.1(1) is not required to repay supplementary benefits for any claim that the special
70.2compensation fund over reimbursed due to the payer's reduction of any employee's permanent
70.3total disability benefits by retirement benefits received by the employee;
70.4(2) is entitled to reimbursement of supplementary benefits paid or payable before
70.513, 2014, to the extent the special compensation fund denied reimbursement due to
70.6payer's reduction of any employee's permanent total disability benefits by the employee's
70.7retirement benefits; and
70.8(3) is entitled to reimbursement of supplementary benefits the special compensation
70.9fund withheld under section 176.129, subdivision 13, paragraph (a), to offset supplementary
70.10benefits that were over reimbursed due to the payer's reduction of any employee's
70.11total disability benefits by the employee's retirement benefits.
70.12(b) Paragraph (a) does not preclude the special compensation fund from denying
70.13reimbursement of supplementary benefits, or adjusting the reimbursement amount, for
70.14reason other than reduction of permanent total disability benefits by the employee's
70.16 Subd. 4. Assessments. (a) Except as provided in subdivision 6, paragraph (b), clause
70.17(2), and subdivision 9, paragraph (a), clause (2), a payer that has complied with
70.18requirements of subdivision 2, paragraphs (a) to (d), is not required to pay past
70.19assessments under section 176.129 on the amount of increased or additional permanent
70.20disability benefits paid, or on supplementary benefits that are appropriately characterized
70.21as permanent total disability benefits, due to the elimination of the retirement benefit
70.23(b) The special compensation fund shall not recalculate assessments previously paid
70.24any payer because of the assessment adjustments in paragraph (a).
70.25(c) The assessment adjustments described in paragraph (a) do not apply to permanent
70.26total disability benefits paid to employees with dates of injury on or after August
70.27Payers must pay full assessments according to section 176.129 on permanent total disability
70.28benefits calculated without a reduction for retirement benefits for these employees.
70.29 Subd. 5. Refunds. (a) A payer is entitled to a refund from the special compensation fund
70.31(1) the payer complies with the requirements of subdivision 2, paragraphs (a) to (d);
70.32(2) due to the elimination of the retirement benefit reduction, the payer repaid the
70.33compensation fund for over reimbursement of supplementary benefits, or paid assessments
71.1on the increased permanent total disability benefits for employees with dates of injury
71.2August 13, 2014.
71.3(b) The special compensation fund must issue a refund within 30 days after receiving
71.4the payer's documentation of compliance with subdivision 2, paragraphs (a) to (d),
71.5itemization by claim of the amount repaid or paid to the special compensation fund
71.6described in paragraph (a), clause (2).
71.7(c) The special compensation fund must pay interest on any refunded amount under this
71.8section to the payer at an annual rate of four percent, calculated from the date the
71.9repaid or paid the special compensation fund as described in paragraph (a), clause
71.10 Subd. 6. Applicability. (a) This section does not preclude any employee, dependent, or
71.11legal heir from pursuing additional benefits beyond those paid under subdivision 2,
71.12paragraphs (b) to (d); however, the payments under subdivision 2, paragraphs (b) to
71.13not to be construed as an admission of liability by the payer in any proceeding. The
71.14cannot be used to justify additional claims; they represent a compromise between the
71.15and the special compensation fund on supplementary benefits and assessments. Payers
71.16reserve any and all defenses to claims to which this section does not apply.
71.17(b) If an employee, dependent, or legal heir pursues additional benefits, claims,
71.18penalties related to the benefits paid or payable under subdivision 2, paragraphs
(b) to (d),
71.19payers may assert any and all defenses including, but not limited to, those specified
71.20subdivision 2, paragraph (e), clauses (4) and (5), with respect to the additional
71.21claims, and penalties, and any future permanent total disability benefits payable,
71.22the following conditions:
71.23(1) if it is determined by a compensation judge, the Workers' Compensation Court of
71.24Appeals, or the Minnesota Supreme Court that the payer is entitled to reduce the employee's
71.25permanent total disability benefits by retirement benefits received by the employee,
71.26payer shall not recover any overpayment that results from benefits the employee, dependent,
71.27or legal heir has already received under subdivision 2, paragraphs (b) to (d). Notwithstanding
71.28section 176.129, the payer shall not take a credit against an employee's future benefits
71.29any such overpayment; and
71.30(2) if it is determined by a compensation judge, the Workers' Compensation Court of
71.31Appeals, or the Minnesota Supreme Court that the payer is not entitled to reduce the
71.32employee's permanent total disability benefits by retirement benefits received by
71.33employee, the payer is not entitled to the relief provided in subdivision 4 as applied
71.34claim of the specific employee, dependent, or legal heir.
72.1(c) A payer shall not assert defenses related to the offset of retirement benefits
72.2an employee's future permanent total disability benefits if the only additional claims
72.3by the employee under paragraph (b) are for attorney fees, costs and disbursements,
72.4additional award pursuant to section 176.081, subdivision 7.
72.5 Subd. 7. Procedure. No later than 60 days after final enactment, in consultation with
72.6affected payers, the commissioner must establish a procedure, which may include forms,
72.7to implement this section.
72.8 Subd. 8. Reporting. This section does not affect a payer's obligation to report the full
72.9amount of permanent total disability benefits paid to the extent required by this
72.10other law. A payer must report supplementary benefits as permanent total disability
72.11if the supplementary benefits were paid because the permanent total disability benefits
72.12reduced by retirement benefits received by the employee.
72.13 Subd. 9. Failure to comply. (a) If a payer reports to the department that it has complied
72.14with the requirements of subdivision 2, paragraphs (a) to (d), but the payer has not
72.15employee, dependent, or legal heir, as required by subdivision 2, the payer is subject
72.17(1) the payer must issue payment to the employee, dependent, or legal heir within
72.18days of the date the payer discovers the noncompliance or the date the department
72.19the payer of the noncompliance;
72.20(2) the payer is not entitled to the relief provided in subdivisions 3 and 4 as applied
72.21the claim of the specific employee, dependent, or legal heir who was not paid as required
72.22by subdivision 2;
72.23(3) the special compensation fund may immediately begin collection of any assessments
72.24or over-reimbursement owed for the claim;
72.25(4) if the commissioner determines that a payer's failure to comply under this subdivision
72.26was not in good faith, the commissioner may assess a penalty, payable to the employee,
72.27dependent, or legal heir, of up to 25 percent of the total permanent total disability
72.29(5) if the payer is found after a hearing to be liable for increased or additional
72.30total disability benefits because the employee's permanent total disability benefits
72.31improperly reduced by his or her retirement benefits, the compensation judge shall
72.32a penalty against the payer, payable to the employee or dependent, up to the total
72.33of the permanent total disability benefits that were not paid pursuant to subdivision
73.1compensation judge may issue a penalty against the payer, up to the total amount of
73.2permanent total disability benefits underpaid, payable to a legal heir.
73.3(b) The penalties assessed under this subdivision are in addition to any other penalty
73.4that may be, or is required to be, assessed under this chapter; however, the commissioner
73.5shall not assess a penalty against a payer for late payment of permanent total disability
73.6benefits if the employee's benefits have been paid and documented in accordance with
73.8(c) If a payer and the special compensation fund have agreed to a list of employees
73.9required to be paid under subdivision 2, this subdivision does not apply to any claim
73.10a date of injury before October 1, 1995, that is not on the agreed-upon list.
73.11EFFECTIVE DATE.This section is effective the day after final enactment.
73.13WORKERS' COMPENSATION ADVISORY COUNCIL; WORKERS'
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
to an employee or an insurer who has paid benefits under section
, shall submit a
timely written motion to intervene to the commissioner, the office, or to the court
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
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
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
extinguished and the potential intervenor may not collect, or attempt to collect,
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
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
(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
submitted, the period of treatment or rehabilitation covered by that bill, the amount
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
except for other intervenors;
(8) at the option of the intervenor, a proposed stipulation which states that all
payments for which reimbursement is claimed are related to the injury or condition
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
stipulation to the intervenor who must file it with the division or judge or serve
intervenor and all other parties and file with the division specific and detailed
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.
a party has not returned the signed stipulation or filed specific and detailed objections
30 days of service of the motion to intervene, the intervenor's right to reimbursement
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
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
75.8 Subd. 2b. Partial settlement. (a) The parties may file a partial stipulation for settlement
75.9which resolves the claims of the employee and reserves the claims of one or more intervenors.
75.10If the partial stipulation, or a letter of agreement attached to the partial stipulation,
75.11signed by an intervenor, the partial stipulation must include a statement that the
75.13(1) obtain a response from the nonsigning intervenor regarding clarification or
75.14confirmation of its interest or an offer of settlement within a reasonable time despite
75.15good-faith efforts to obtain a response;
75.16(2) reach agreement with the nonsigning intervenor despite the belief that the parties
75.17negotiated with the intervenor in good faith and made a reasonable offer to settle
75.18intervention claim; or
75.19(3) obtain the nonsigning intervenor's signature within a reasonable time after an
75.20agreement was reached with the intervenor.
75.21The partial stipulation must include detailed and case-specific support for the parties'
75.22statements. In addition, the partial stipulation must reserve the nonsigning intervenor's
75.23interests to pursue its claim at a hearing on the merits, and must contain a statement
75.24the employee will cooperate at the hearing.
75.25(b) Prior to filing the partial stipulation for approval, a copy of the partial stipulation
75.26must be served on all parties, including the nonsigning intervenor, together with
75.27notification that the settling parties intend to file the partial stipulation for
approval by a
75.28compensation judge and of the nonsigning intervenor's right to request a hearing on
75.29merits of the intervenor's claim.
75.30(c) Within ten days after service of a partial stipulation for settlement and notice
75.31intent to file for approval by a compensation judge, a nonsigning intervenor may serve
75.32file a written objection to approval of the partial stipulation, which filing must
76.1detailed and case-specific factual basis establishing that approval of the partial
76.2will adversely impact the rights of the intervenor.
76.3(d) After expiration of the ten-day period within which a nonsigning intervenor may
76.4serve and file its written objection, any party may file for approval a partial stipulation
76.5settlement which conforms with this section. An affidavit of service must accompany
76.6partial stipulation when it is filed for approval.
76.7(e) Unless the compensation judge has a reasonable belief that approval of the partial
76.8stipulation will adversely impact the rights of the nonsigning intervenor, the compensation
76.9judge shall immediately issue the award and file it with the commissioner. The issuance
76.10the award shall be accompanied by notice to the intervenors and other parties of their
76.11to request amended findings within a period of 30 days following the date of issuance
76.12conformity with applicable law.
76.13(f) If the compensation judge has a reasonable belief that approval of the partial
76.14will adversely impact the rights of the intervenor, the compensation judge shall disapprove
76.15the stipulation by written order detailing a factual basis for the determination of
Sec. 4. RULEMAKING.
76.18The Office of Administrative Hearings is directed to use the expedited rulemaking
76.19provisions of Minnesota Statutes, section 14.389, to amend Minnesota Rules, part 1420.1850,
76.20to conform to the amendments of Minnesota Statutes, section 176.361, subdivision 3.
76.22EMPLOYMENT AND ECONOMIC DEVELOPMENT
Section 1. [116J.4221] RURAL POLICY AND DEVELOPMENT CENTER FUND.
76.24(a) A rural policy and development center fund is established as an account in the
76.25revenue fund in the state treasury. The commissioner of management and budget shall
76.26to the account the amounts authorized under this section and appropriations and transfers
76.27to the account. The State Board of Investment shall ensure that account money is invested
76.28under section 11A.24. All money earned by the account must be credited to the account.
76.29The principal of the account and any unexpended earnings must be invested and reinvested
76.30by the State Board of Investment.
76.31(b) Gifts and donations, including land or interests in land, may be made to the account.
76.32Noncash gifts and donations must be disposed of for cash as soon as the board prudently
77.1can maximize the value of the gift or donation. Gifts and donations of marketable
77.2may be held or be disposed of for cash at the option of the board. The cash receipts
77.3and donations of cash or capital assets and marketable securities disposed of for
77.4be credited immediately to the principal of the account. The value of marketable securities
77.5at the time the gift or donation is made must be credited to the principal of the
77.6any earnings from the marketable securities are earnings of the account. The earnings
77.7the account are annually appropriated to the board of the Center for Rural Policy
77.8Development to carry out the duties of the center.
77.9EFFECTIVE 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
purpose local government are eligible applicants for Minnesota investment funds. The
commissioner may provide forgivable loans directly to a private enterprise and not
a local community or recognized Indian tribal government application other than a
supporting the assistance.
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.
77.23A local government entity may receive more than one award in a fiscal year.
commissioner may also make funds available within the department for eligible expenditures
under subdivision 3, clause (2).
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
the commissioner, to capitalize or to provide the local match required for capitalization
a regional or statewide revolving loan fund.
Sec. 3. Minnesota Statutes 2016, section 116J.8731, is amended by adding a subdivision
78.3 Subd. 10. Transfer. The commissioner may transfer up to $2,000,000 of a fiscal year's
78.4appropriation between the Minnesota job creation fund program and Minnesota investment
78.5fund 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
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
the agreement, construction and other investment goals and a timeline for achieving
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
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
improving real fixed property where employees under paragraphs (g) and (h) are or
employed and also includes construction materials, services, and supplies, and the
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
commissioner under subdivision 3.
78.27(g) "Minority person" means a person belonging to a racial or ethnic minority as defined
78.28in Code of Federal Regulations, title 49, section 23.5.
"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.
79.1(i) "Persons with disabilities" means an individual with a disability, as defined
79.2the Americans with Disabilities Act, United States Code, title 42, section 12102.
"Retained job" means a full-time position:
(1) that existed at the facility prior to the designation as a job creation fund business;
(2) has expected work hours of at least 2,080 hours annually.
79.7(k) "Veteran" means a veteran as defined in section 197.447.
"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.
receive designation as a Minnesota job creation fund business, a business must satisfy
of the following conditions:
(1) the business is or will be engaged in, within Minnesota, one of the following
primary business activity:
(iv) information technology;
(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
by attorneys, accountants, business consultants, physicians, or health care consultants,
primarily engaged in making retail sales to purchasers who are physically present
(3) the business must enter into a binding construction and job creation business
agreement with the commissioner to expend directly, or ensure expenditure by or in
79.29partnership 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,
facility within one year following designation as a Minnesota job creation fund business
80.2$250,000 if the project is located outside the metropolitan area as defined in section
80.3subdivision 24, or if 51 percent of the business is cumulatively owned by minorities,
80.4women, or persons with a disability;
(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
80.7employee positions within two years of the benefit date if the project is located
80.8metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of
80.9is cumulatively owned by minorities, veterans, women, or persons with a disability
(ii) expend at least $25,000,000, which may include the installation and purchase
machinery and equipment, in capital investment and retain at least 200 employees for
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
working hours of an employee for the purpose of hiring an individual to satisfy job
goals under this subdivision.
(b) Prior to approving the proposed designation of a business under this subdivision,
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
(3) how the business will build on existing regional, national, and international
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
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
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
the original agreement.
(f) A business may apply to be designated as a Minnesota job creation fund business
the same location more than once only if all goals under a previous Minnesota job
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
and (c) when the business has achieved its job creation and capital investment goals
in its agreement under subdivision 3.
(b) A qualified Minnesota job creation fund business may be certified eligible for
benefits in this paragraph for up to five years for projects located in the metropolitan
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
of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a),
81.25clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects
81.26outside 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
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
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
are allowable for projects that have at least $25,000,000 in capital investment and
employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75
82.6new employees for projects located outside the metropolitan area
(4) up to $1,000,000 in capital investment rebates are allowable for projects that
at least $25,000,000 in capital investment and 200 retained employees for projects
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
include the installation and purchases of machinery and equipment. These expenditures
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
in its agreement under subdivision 3 and the total award does not exceed $500,000
as provided under paragraph (b), clauses (3) and (4).
(d) No rebates or award may be provided until the Minnesota job creation fund business
82.19or 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
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
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
the commissioner. The forms shall include documentation and certification by the business
that it is in compliance with the business subsidy agreement, sections
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,
on an annualized basis is equal to at least 110 percent of the federal poverty level
family of four.
(g) A Minnesota job creation fund business must demonstrate reasonable progress on
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
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
unit to resubmit a new application and request to be a Minnesota job creation fund
Notwithstanding the goals noted in its agreement under subdivision 1, this action
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
the following schedule: $1,000 for each job position paying annual wages at least
but less than $35,000; $2,000 for each job position paying at least $35,000 but less
$45,000; and $3,000 for each job position paying at least $45,000; and as noted in
under the agreement provided under subdivision 1. These awards are increased by $1,000
83.16if the business is located outside the metropolitan area as defined in section 200.02,
83.17subdivision 24, or if 51 percent of the business is cumulatively owned by minorities,
83.18women, 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.
83.25 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
83.26the meanings given.
83.27(b) "Commissioner" means the commissioner of employment and economic development.
83.28(c) "Community initiative" means a nonprofit organization which provides services
83.29central Minnesota communities of color in one or more of the program areas listed
83.30subdivision 4, paragraph (a).
83.31(d) "Foundation" means the Central Minnesota Community Foundation.
84.1 Subd. 2. Establishment. The commissioner shall establish a central Minnesota
84.2opportunity grant program, administered by the foundation, to identify and support
84.3community initiatives in the St. Cloud area that enhance long-term economic self-sufficiency
84.4by improving education, housing, and economic outcomes for central Minnesota communities
84.6 Subd. 3. Grant to the Central Minnesota Community Foundation. The commissioner
84.7shall award all grant funds to the foundation, which shall administer the central
84.8opportunity grant program. The foundation may use up to five percent of grant funds
84.10 Subd. 4. Grants to community initiatives. (a) The foundation must award funds through
84.11a competitive grant process to community initiatives that will provide services, either
84.12or in partnership with another nonprofit organization, in one or more of the following
84.13(1) economic development, including but not limited to programs to foster
84.14entrepreneurship or small business development;
84.15(2) education, including but not limited to programs to encourage civic engagement
84.16provide youth after-school or recreation programs; or
84.17(3) housing, including but not limited to, programs to prevent and respond to
84.18homelessness or to provide access to loans or grants for housing stability and affordability.
84.19(b) To receive grant funds, a community initiative must submit a written application
84.20the foundation, using a form developed by the foundation. This grant application must
84.22(1) a description of the activities that will be funded by the grant;
84.23(2) an estimate of the cost of each grant activity;
84.24(3) the total cost of the project;
84.25(4) the sources and amounts of nonstate funds supplementing the grant;
84.26(5) how the project aims to achieve stated outcomes in areas including improved job
84.27training; workforce development; small business support; early childhood, kindergarten
84.28through grade 12, and higher education achievement; and access to housing, including
84.30(6) any additional information requested by the foundation.
84.31(c) In awarding grants under this subdivision, the foundation shall give weight to
84.32applications from organizations that demonstrate:
85.1(1) a history of successful provision of the services listed in paragraph (a); and
85.2(2) a history of successful fund-raising from private sources for such services.
85.3(d) In evaluating grant applications, the foundation shall not consider the composition
85.4of a community initiative's governing board.
85.5(e) Grant funds may be used by a community initiative for the following purposes:
85.6 (1) operating costs, including but not limited to staff, office space, computers,
85.7and Web development and maintenance services;
85.8(2) program costs;
85.9(3) travel within Minnesota;
85.10(4) consultants directly related to and necessary for delivering services listed in
85.12(5) capacity building.
85.13 Subd. 5. Reports to the legislature. By January 15, 2019, and each January 15 thereafter
85.14through 2022, the commissioner must submit a report to the chairs and ranking minority
85.15members of the house of representatives and the senate committees with jurisdiction
85.16economic development that details the use of grant funds. This report must include
85.17the number of individuals served and, to the extent practical, measures of progress
85.18achieving 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
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
including older individuals who may have substantial barriers to employment by reason
(3) has been terminated or has received a notice of termination of employment as a
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
because of natural disasters;
(5) MS 2011 Supp [Expired, 2011 c 84 art 3 s 1]
86.7 (6) (5)
is a veteran as defined by section
, has been discharged or released from
active duty under honorable conditions within the last 36 months, and (i) is unemployed
(ii) is employed in a job verified to be below the skill level and earning capacity
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
2331, as amended; or
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)
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)
substantial share of support from public assistance on account of dependents in the
and no longer receives such support. To be eligible under this clause, the support
ceased while the worker resided in Minnesota.
86.21For the purposes of this section, "dislocated worker" does not include an individual
86.22was an employee, at the time employment ceased, of a political committee, political
86.23principal campaign committee, or party unit, as those terms are used in chapter 10A,
86.24organization 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
(f) "Substantial layoff" means a permanent reduction in the workforce, which is not
result of a plant closing, and which results in an employment loss at a single site
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:
87.2116L.665 WORKFORCE DEVELOPMENT
Subdivision 1. Creation.
The governor's Workforce Development
Council is created
87.4 under the authority of the Workforce Investment Act, United States Code, title 29,
87.5 2801, et seq. Local workforce development councils are authorized under the Workforce
87.6 Investment Act. The governor's Workforce Development Council serves as Minnesota's
87.7 Workforce Investment Board for the purposes of the federal Workforce Investment Act.
87.8Board serves as Minnesota's state workforce development board for the purposes of
87.9federal Workforce Innovation and Opportunity Act, United States Code, title 29, section
87.103111, and must perform the duties under that act.
Subd. 2. Membership. (a)
The governor's Workforce Development
members appointed by the governor.
The members may be removed pursuant
87.13 to section
In selecting the representatives of the
, the governor shall
50 percent a majority
of the members come from
nominations provided by local
87.15 workforce councils. Local education representatives shall come from nominations provided
87.16 by local education to employment partnerships. The 31 members shall represent the
87.17 sectors: the private sector, pursuant to United States Code, title 29, section 3111. For the
87.18public members, membership terms, compensation of members, and removal of members
87.19are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable,
87.20membership should be balanced as to gender and ethnic diversity.
87.21 (a) State agencies: the following individuals shall serve on the council:
87.22 (1) commissioner of the Minnesota Department of Employment and Economic
87.24 (2) commissioner of the Minnesota Department of Education; and
87.25 (3) commissioner of the Minnesota Department of Human Services.
87.26 (b) Business and industry: six individuals shall represent the business and industry
87.27 of Minnesota.
87.28 (c) Organized labor: six individuals shall represent labor organizations of Minnesota.
87.29 (d) Community-based organizations: four individuals shall represent community-based
87.30 organizations of Minnesota. Community-based organizations are defined by the Workforce
87.31 Investment Act as private nonprofit organizations that are representative of communities
87.32 or significant segments of communities and that have demonstrated expertise and
87.33 effectiveness in the field of workforce investment and may include entities that provide
88.1 training services, serve youth, serve individuals with disabilities, serve displaced
88.2 homemakers, union-related organizations, employer-related nonprofit organizations,
88.3 organizations serving nonreservation Indians and tribal governments.
88.4 (e) Education: six individuals shall represent the education sector of Minnesota as
88.5 (1) one individual shall represent local public secondary education;
88.6 (2) one individual shall have expertise in design and implementation of school-based
88.8 (3) one individual shall represent leadership of the University of Minnesota;
88.9 (4) one individual shall represent secondary/postsecondary vocational institutions;
88.10 (5) the chancellor of the Board of Trustees of the Minnesota State Colleges and
88.11 Universities; and
88.12 (6) one individual shall have expertise in agricultural education.
88.13 (f) Other: two individuals shall represent other constituencies including:
88.14 (1) units of local government; and
88.15 (2) applicable state or local programs.
88.16 The speaker and the minority leader of the house of representatives shall each appoint
88.17 a representative to serve as an ex officio member of the council. The majority and
88.18 leaders of the senate shall each appoint a senator to serve as an ex officio member
88.20 The governor shall appoint one individual representing public libraries, one individual
88.21 with expertise in assisting women in obtaining employment in high-wage, high-demand,
88.22 nontraditional occupations, and one individual representing adult basic education
88.23 to serve as nonvoting advisors to the council.
88.24(b) No person shall serve as a member of more than one category described in paragraph
88.26(c) Voting members shall consist of the following:
88.27(1) the governor or the governor's designee;
88.28(2) two members of the house of representatives, one appointed by the speaker of the
88.29house and one appointed by the minority leader of the house of representatives;
89.1(3) two members of the senate, one appointed by the senate majority leader and one
89.2appointed by the senate minority leader;
89.3(4) a majority of the members must be representatives of businesses in the state appointed
89.4by the governor who:
89.5(i) are owners of businesses, chief executives, or operating officers of businesses,
89.6other business executives or employers with optimum policy-making or hiring authority
89.7and who, in addition, may be members of a local board under United States Code, title
89.9(ii) represent businesses, including small businesses, or organizations representing
89.10businesses that provide employment opportunities that, at a minimum, include high-quality,
89.11work-relevant training and development in in-demand industry sectors or occupations
89.12the state; and
89.13(iii) are appointed from individuals nominated by state business organizations and
89.14business trade associations;
89.15(5) six representatives of labor organizations appointed by the governor, including:
89.16(i) representatives of labor organizations who have been nominated by state labor
89.18(ii) a member of a labor organization or a training director from a joint labor organization;
89.19(6) commissioners of the state agencies with primary responsibility for core programs
89.20identified within the state plan including:
89.21(i) the Department of Employment and Economic Development;
89.22(ii) the Department of Education; and
89.23(iii) the Department of Human Services;
89.24(7) two chief elected officials, appointed by the governor, collectively representing
89.26(8) two representatives who are people of color or people with disabilities, appointed
89.27by the governor, of community-based organizations that have demonstrated experience
89.28expertise in addressing the employment, training, or education needs of individuals
89.29barriers to employment; and
90.1(9) four officials responsible for education programs in the state, appointed by the
90.2governor, including chief executive officers of community colleges and other institutions
90.3of higher education, including:
90.4(i) the chancellor of the Minnesota State Colleges and Universities;
90.5(ii) the president of the University of Minnesota;
90.6(iii) a president from a private postsecondary school; and
90.7(iv) a representative of career and technical education.
90.8(d) The nonvoting members of the board shall be appointed by the governor and consist
90.9of one of each of the following:
90.10(1) a representative of Adult Basic Education;
90.11(2) a representative of public libraries;
90.12(3) a person with expertise in women's economic security;
90.13(4) the chair or executive director of the Minnesota Workforce Council Association;
90.14(5) the commissioner of labor and industry;
90.15(6) the commissioner of the Office of Higher Education;
90.16(7) the commissioner of corrections;
90.17(8) the commissioner of management and budget;
90.18(9) two representatives of community-based organizations who are people of color or
90.19people with disabilities who have demonstrated experience and expertise in addressing
90.20employment, training, and education needs of individuals with barriers to employment;
90.21(10) a representative of secondary, postsecondary, or career-technical education;
90.22(11) a representative of school-based service learning;
90.23(12) a representative of the Council on Asian-Pacific Minnesotans;
90.24(13) a representative of the Minnesota Council on Latino Affairs;
90.25(14) a representative of the Council for Minnesotans of African Heritage;
90.26(15) a representative of the Minnesota Indian Affairs Council;
90.27(16) a representative of the Minnesota State Council on Disability; and
90.28(17) a representative of the Office on the Economic Status of Women.
91.1 (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
forfeit their appointment if they cease to serve in elected office.
(h) Members of the council are compensated as provided in section
Council Board meetings; chair. (a) If compliance with section
91.7 impractical, the Governor's Workforce Development Council may conduct a meeting of
91.8 members by telephone or other electronic means so long as the following conditions
91.10 (1) all members of the council participating in the meeting, wherever their physical
91.11 location, can hear one another and can hear all discussion and testimony;
91.12 (2) members of the public present at the regular meeting location of the council can
91.13 clearly all discussion and testimony and all votes of members of the council and,
91.14 receive those services required by sections
91.15 (3) at least one member of the council is physically present at the regular meeting
91.17 (4) all votes are conducted by roll call, so each member's vote on each issue can
91.18 identified and recorded.
91.19 (b) Each member of the council participating in a meeting by telephone or other electronic
91.20 means is considered present at the meeting for purposes of determining a quorum and
91.21 participating in all proceedings.
91.22 (c) If telephone or other electronic means is used to conduct a meeting, the council,
91.23 the extent practical, shall allow a person to monitor the meeting electronically from
91.24 location. The council may require the person making such a connection to pay for
91.25 documented marginal costs that the council incurs as a result of the additional connection.
91.26 (d) If telephone or other electronic means is used to conduct a regular, special,
91.27 emergency meeting, the council shall provide notice of the regular meeting location,
91.28 fact that some members may participate by telephone or other electronic means, and
91.29 provisions of paragraph (c). The timing and method of providing notice is governed
91.31(a) The board shall hold regular in-person meetings at least quarterly and as often
91.32necessary to perform the duties outlined in the statement of authority and the board's
92.1Meetings shall be called by the chair. Special meetings may be called as needed. Notices
92.2of all meetings shall be made at least 48 hours before the meeting date.
92.3(b) The governor shall designate a chair from among the appointed business representative
92.4voting members. The chair shall approve an agenda for each meeting. Members shall
92.5a written request for consideration of an agenda item no less than 24 hours in advance
92.6the meeting. Members of the public may submit a written request within 48 hours of
92.7meeting to be considered for inclusion in the agenda. Members of the public attending
92.8meeting of the board may address the board only with the approval or at the request
92.10(c) All meeting notices must be posted on the board's Web site. All meetings of the
92.11and committees must be open to the public. The board must make available to the public,
92.12on a regular basis through electronic means and open meetings, information regarding
92.13activities of the board, information regarding membership, and, on request, minutes
92.14formal meetings of the board.
92.15(d) For the purpose of conducting business before the board at a duly called meeting,
92.16simple majority of the voting members, excluding any vacancies, constitutes a quorum.
92.17 Subd. 3. Purpose; duties. The governor's Workforce Development Council shall replace
92.18 the governor's Job Training Council and assume all of its requirements, duties, and
92.19 responsibilities under the Workforce Investment Act. Additionally, the Workforce
92.20 Development Council shall assume the following duties and responsibilities:
92.21 (a) Review the provision of services and the use of funds and resources under applicable
92.22 federal human resource programs and advise the governor on methods of coordinating
92.23 provision of services and the use of funds and resources consistent with the laws
92.24 regulations governing the programs. For purposes of this section, applicable federal
92.25 state human resource programs mean the:
92.26 (1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.;
92.27 (2) Carl D. Perkins Vocational and Applied Technology Education Act, United States
92.28 Code, title 20, section 2301, et seq.;
92.29 (3) Adult Education Act, United States Code, title 20, section 1201, et seq.;
92.30 (4) Wagner-Peyser Act, United States Code, title 29, section 49;
92.31 (5) Personal Responsibility and Work Opportunities Act of 1996 (TANF);
93.1 (6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp
93.2 Employment and Training Program, United States Code, title 7, section 2015(d)(4);
93.3 (7) programs defined in section
116L.19, subdivision 5 .
93.4 Additional federal and state programs and resources can be included within the scope
93.5 of the council's duties if recommended by the governor after consultation with the
93.6 (b) Review federal, state, and local education, postsecondary, job skills training,
93.7 youth employment programs, and make recommendations to the governor and the legislature
93.8 for establishing an integrated seamless system for providing education and work skills
93.9 development services to learners and workers of all ages.
93.10 (c) Advise the governor on the development and implementation of statewide and local
93.11 performance standards and measures relating to applicable federal human resource programs
93.12 and the coordination of performance standards and measures among programs.
93.13 (d) Promote education and employment transitions programs and knowledge and skills
93.14 of entrepreneurship among employers, workers, youth, and educators, and encourage
93.15 employers to provide meaningful work-based learning opportunities.
93.16 (e) Evaluate and identify exemplary education and employment transitions programs
93.17 and provide technical assistance to local partnerships to replicate the programs throughout
93.18 the state.
93.19 (f) Advise the governor on methods to evaluate applicable federal human resource
93.21 (g) Sponsor appropriate studies to identify human investment needs in Minnesota and
93.22 recommend to the governor goals and methods for meeting those needs.
93.23 (h) Recommend to the governor goals and methods for the development and coordination
93.24 of a human resource system in Minnesota.
93.25 (i) Examine federal and state laws, rules, and regulations to assess whether they
93.26 barriers to achieving the development of a coordinated human resource system.
93.27 (j) Recommend to the governor and to the federal government changes in state or federal
93.28 laws, rules, or regulations concerning employment and training programs that present
93.29 to achieving the development of a coordinated human resource system.
93.30 (k) Recommend to the governor and to the federal government waivers of laws and
93.31 regulations to promote coordinated service delivery.
94.1 (l) Sponsor appropriate studies and prepare and recommend to the governor a strategic
94.2 plan which details methods for meeting Minnesota's human investment needs and for
94.3 developing and coordinating a state human resource system.
94.4 (m) Provide the commissioner of employment and economic development and the
94.5 committees of the legislature with responsibility for economic development with
94.6 recommendations provided to the governor under this subdivision.
94.7 (n) In consultation with local workforce councils and the Department of Employment
94.8 and Economic Development, develop an ongoing process to identify and address local
94.9 in workforce services.
Subd. 4. Executive committee duties.
The executive committee must, with advice and
input of local workforce
and other stakeholders as appropriate, develop
performance standards for the state workforce centers. By January 15,
, and each
odd-numbered year thereafter, the executive committee shall submit a report to the
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
establish subcommittees in order to carry out the duties and responsibilities of the
Subd. 6. Staffing.
Department of commissioner of
employment and economic
development must provide staff
, including but not limited to professional, technical, and
94.23 clerical staff to the board
perform the duties assigned to the Minnesota
94.24 Workforce Development Council. All staff report to the commissioner carry out the duties
94.25of the board
The council may ask for assistance from other units of At the request of the
government as departments and agencies must provide the board with the
to fulfill its duties and responsibilities.
Subd. 7. Expiration.
expires if there is no federal funding for the
human resource programs within the scope of the
Subd. 8. Funding.
shall develop recommendations on a funding
94.31 formula for allocating Workforce Investment Act funds to the council with a minimum
of employment and economic development must provide at least
. The commissioner shall report the funding formula recommendations to
95.1 the legislature by January 15, 2011 from existing agency resources to the board for staffing
95.2and 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
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
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.
shall submit an annual report to the legislature
of an accounting of loans made under section
, 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
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
the metropolitan area as in the nonmetropolitan area. After
September 30 March 31
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
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
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
(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.
96.7(h) Up to ten percent of a loan's principal amount may be forgiven if the department
96.8approves and the borrower has met lender criteria including being current with all
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
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.
96.18(b) Up to ten percent of a loan's principal amount may be forgiven if the department
96.19approves and the borrower has met lender criteria including being current with all
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
(1) submit an annual report to the
March 30 February 15
each year that includes a description of businesses supported by the grant program,
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
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
, 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
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
created under Minnesota Statutes, section
, the commissioner of management and
budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each
to the Minnesota minerals 21st century fund under Minnesota Statutes, section
This transfer occurs prior to any transfer under Minnesota Statutes, section
, paragraph (a), clause (1), but after the
(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
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
, 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
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
fund in fiscal year 2015 to the commissioner of labor and industry for the purposes
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
, 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
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
fund in fiscal year 2016 to the commissioner of labor and industry for the purposes
15. Both the transfer and appropriation under this paragraph are onetime.
(e) Notwithstanding Minnesota Statutes, section
, 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,
the date the commissioner of commerce determines that an excess surplus in the assigned
risk plan does not exist, whichever occurs earlier.
98.13(f) By June 30, 2017, and each year thereafter, if the commissioner of commerce
98.14determines on the basis of an audit that there is an excess surplus in the assigned
98.15created under Minnesota Statutes, section 79.252, the commissioner of management and
98.16budget shall transfer the amount of the excess surplus, not to exceed $2,000,000 each
98.17to the rural policy and development center fund under Minnesota Statutes, section
98.18This transfer occurs prior to any transfer under paragraph (b) or under Minnesota
98.19section 79.251, subdivision 1, paragraph (a), clause (1). The total amount authorized
98.20transfers under this paragraph must not exceed $2,000,000. This paragraph expires
98.21following the transfer in which the total amount transferred under this paragraph
to the rural
98.22policy and development center fund equals $2,000,000.
98.23EFFECTIVE 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
(a) $10,800,000 each year is from the general
fund for the state's vocational rehabilitation
program under Minnesota Statutes, chapter
(b) $2,261,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
(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
(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
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,
(f) $1,000,000 each year is from the workforce
development fund for grants under Minnesota
, 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
100.2 technology and to work in tandem with
100.3 individuals using this technology to create
100.4 career paths Assistive Technology of
100.5Minnesota must use the funds to provide
100.6low-interest loans to individuals of all ages
100.7and types of disabilities to purchase assistive
100.8technology and employment-related
. This is a onetime appropriation
100.10and 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,
100.16EFFECTIVE 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
(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
(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township
Malmo, or township of Lakeside; or
(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township
East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
(2) document a reduction of at least
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
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
professional membership, movies, or nonstore retailer, as determined by Mille Lacs
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
This section, except for subdivision 4, is effective July 1, 2016,
and expires June 30,
. 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
101.10All unspent funds, estimated to be $376,000, appropriated in Laws 2016, chapter 189,
101.11article 7, section 2, subdivision 2, paragraph (h), clause (7), and Laws 2016, chapter
101.12article 12, section 2, subdivision 2, paragraph (p), are canceled to the general fund.
101.13EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 22. GREATER MINNESOTA COMMUNITY DESIGN PILOT PROJECT.
101.15 Subdivision 1. Creation. The Minnesota Design Center at the University of Minnesota
101.16shall partner with relevant organizations in selected communities within greater Minnesota
101.17to establish a pilot project for community design. The pilot project shall identify
101.18and future opportunities for rural development, create designs, seek funding from
101.19sources, and assist with the implementation of economically, environmentally, and
101.20sensitive projects that respond to current community conditions, needs, capabilities,
101.21aspirations in support of the selected communities. For the purposes of this section,
101.22Minnesota" is limited to the following counties: Blue Earth, Brown, Dodge, Faribault,
101.23Fillmore, Freeborn, Goodhue, Houston, Le Sueur, Martin, Mower, Olmsted, Rice, Sibley,
101.24Steele, Wabasha, Waseca, Watonwan, and Winona.
101.25 Subd. 2. Community selection. In order to be considered for inclusion in the pilot
101.26project, communities with fewer than 12,000 residents within the counties listed in
101.27subdivision 1 must submit a letter of interest to the Minnesota Design Center. The
101.28Design Center may choose up to ten communities for participation in the pilot project.
101.29 Subd. 3. Pilot project activities. Among other activities, the Minnesota Design Center,
101.30in partnership with relevant organizations within the selected communities, shall:
101.31(1) assess community capacity to engage in design, development, and implementation;
102.1(2) create community and project designs that respond to a community's culture and
102.2needs, reinforce its identity as a special place, and support its future aspirations;
102.3(3) create an implementation strategy; and
102.4(4) build capacity to implement design work by identifying potential funding strategies
102.5and sources and assisting in grant writing to secure funding.
Sec. 23. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT;
102.7MANDATED REPORT HOLIDAY.
102.8(a) Notwithstanding any law to the contrary, any report required by state law from
102.9Department of Employment and Economic Development that is due in fiscal year 2018
102.102019 is optional. The commissioner of employment and economic development may produce
102.11any reports at the commissioner's discretion or as may be required by federal law.
102.12(b) This section does not apply to workforce programs outcomes reporting under
102.13Minnesota Statutes, section 116L.98, or the agency activity and expenditure report
102.14article 12, section 3.
Sec. 24. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA
102.16INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
102.17(a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or
102.18statutory city, county, or town that has uncommitted money received from repayment
102.19funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer
102.20percent of the balance of that money to the state general fund before June 30, 2018.
102.21local entity that does so may then use the remaining 80 percent of the uncommitted
102.22as a general purpose aid for any lawful expenditure.
102.23(b) By February 15, 2019, a home rule charter or statutory city, county, or town that
102.24exercises the option under paragraph (a) shall submit to the chairs of the legislative
102.25committees with jurisdiction over economic development policy and finance an accounting
102.26and explanation of the use and distribution of the funds.
Sec. 25. GETTING TO WORK GRANT PROGRAM.
102.28 Subdivision 1. Creation. The commissioner of employment and economic development
102.29shall make grants to nonprofit organizations to establish and operate programs under
102.30section that provide, repair, or maintain motor vehicles to assist eligible individuals
102.31or maintain employment.
103.1 Subd. 2. Qualified grantee. A grantee must:
103.2(1) qualify under section 501(c)(3) of the Internal Revenue Code; and
103.3(2) at the time of application offer, or have the demonstrated capacity to offer,
103.4vehicle program that provides the services required under subdivision 3.
103.5 Subd. 3. Program requirements. (a) A program must offer one or more of the following
103.7(1) provision of new or used motor vehicles by gift, sale, or lease;
103.8(2) motor vehicle repair and maintenance services; or
103.9(3) motor vehicle loans.
103.10(b) In addition to the requirements of paragraph (a), a program must offer one or
103.11of the following services:
103.12(1) financial literacy education;
103.13(2) education on budgeting for vehicle ownership;
103.14(3) car maintenance and repair instruction;
103.15(4) credit counseling; or
103.16(5) job training related to motor vehicle maintenance and repair.
103.17 Subd. 4. Application. Applications for a grant must be on a form provided by the
103.18commissioner and on a schedule set by the commissioner. Applications must, in addition
103.19to any other information required by the commissioner, include the following:
103.20(1) a detailed description of all services to be offered;
103.21(2) the area to be served;
103.22(3) the estimated number of program participants to be served by the grant; and
103.23(4) a plan for leveraging resources from partners that may include, but are not limited
103.25(i) automobile dealers;
103.26(ii) automobile parts dealers;
103.27(iii) independent local mechanics and automobile repair facilities;
103.28(iv) banks and credit unions;
104.1(vi) employment and training agencies;
104.2(vii) insurance companies and agents;
104.3(viii) local workforce centers; and
104.4(ix) educational institutions including vocational institutions and jobs or skills
104.6 Subd. 5. Participant eligibility. (a) To be eligible to receive program services, a person
104.8(1) have a household income at or below 200 percent of the federal poverty level;
104.9(2) be at least 22 years of age;
104.10(3) have a valid driver's license;
104.11(4) provide the grantee with proof of motor vehicle insurance; and
104.12(5) demonstrate to the grantee that a motor vehicle is required by the person to obtain
104.13or maintain employment.
104.14(b) This subdivision does not preclude a grantee from imposing additional requirements,
104.15not inconsistent with paragraph (a), for the receipt of program services.
104.16 Subd. 6. Report to legislature. By February 15, 2019, the commissioner shall submit
104.17a report to the chairs of the house of representatives and senate committees with
104.18over workforce and economic development on program outcomes. At a minimum, the report
104.20(1) the total number of program participants;
104.21(2) the number of program participants who received each of the following:
104.22(i) provision of a motor vehicle;
104.23(ii) motor vehicle repair services; and
104.24(iii) motor vehicle loans;
104.25(3) the number of program participants who report that they or their children were
104.26to increase their participation in community activities such as after school programs,
104.27youth programs, church or civic groups, or library services as a result of participation
104.29(4) an analysis of the impact of the getting to work grant program on the employment
104.30rate and wages of program participants.
Sec. 26. ECONOMIC IMPACT STUDY OF BIOMASS FACILITY CLOSURE.
105.2The commissioner of employment and economic development shall conduct a study to
105.3examine the economic impact of the closure of a biomass facility located in the city
105.4Benson that uses poultry litter to generate electricity. In conducting the study,
105.5commissioner must analyze the impact of the closure of the biomass facility on employment
105.6and income in the local economy, including impacts on ancillary providers of goods
105.7services to the biomass facility. The commissioner must report study findings to the
105.8legislature by February 15, 2018.
Sec. 27. USE OF UNALLOCATED FUNDS.
105.10(a) Notwithstanding Minnesota Statutes, sections 116L.05, subdivision 5, and 116L.20,
105.11subdivision 2, in fiscal years 2018 and 2019 only, the unallocated workforce development
105.12funds appropriated to the Job Skills Partnership Board under Minnesota Statutes, section
105.13116L.20, subdivision 2, paragraph (b), may be used for other job creation and economic
105.14enhancement opportunities in Minnesota at the discretion of the commissioner.
105.15(b) Notwithstanding Minnesota Statutes, section 116J.8731, in fiscal years 2018 and
105.162019 only, funds appropriated to the commissioner for the Minnesota investment fund
105.17be used for other job creation and economic enhancement opportunities in Minnesota
105.18discretion of the commissioner. Grants under this paragraph are not subject to the
105.19amount limitation under Minnesota Statutes, section 116J.8731.
105.20(c) Notwithstanding Minnesota Statutes, section 116J.748, in fiscal years 2018 and
105.21only, funds appropriated to the commissioner for the job creation fund may be used
105.22other job creation and economic enhancement opportunities in Minnesota at the discretion
105.23of the commissioner.
Sec. 28. REPEALER.
105.25Minnesota Statutes 2016, section 116J.549, and Minnesota Rules, parts 4355.0100;
105.264355.0200; 4355.0300; 4355.0400; and 4355.0500, are repealed.
105.28IRON 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
the terms defined
in this section have the meanings given them.
(1) "State" includes each of the departments, boards, agencies, commissions, courts,
officers in the executive, legislative, and judicial branches of the state of Minnesota
includes but is not limited to the Housing Finance Agency, the Minnesota Office of
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
, 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
county, school district, or other local governmental body corporate and politic.
(2) "Employee of the state" means all present or former officers, members, directors,
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
when engaged in the disposal or neutralization of bombs or other
similar hazardous explosives, as defined in section
, outside the jurisdiction of the
municipality but within the state, or persons acting on behalf of the state in an
capacity, temporarily or permanently, with or without compensation. It does not include
either an independent contractor except, for purposes of this section and section
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
section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
, for purposes of this section and section
of the state" includes a district public defender or assistant district public defender
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
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
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
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
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
(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,
means land that the state has not improved, state land that contains idled or abandoned
pits or shafts, and appurtenances, fixtures, and attachments to land that the state
affixed nor improved;
(h) a loss involving or arising out of the use or operation of a recreational motor
as defined in section
84.90, subdivision 1
, within the right-of-way of a trunk highway, as
defined in section
, 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
the outdoor recreation system, as defined in section
, or for a loss arising from the
construction, operation, maintenance, or administration of grants-in-aid trails as
, 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
, 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
or created by the commissioner of
Iron Range resources and rehabilitation
, that provides access to an idled, water filled mine pit, also includes the entire
filled area of the pit and, further, includes losses caused by the caving or slumping
mine pit walls;
(j) a loss of benefits or compensation due under a program of public assistance or
welfare, except if state compensation for loss is expressly required by federal law
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
at a state hospital or state corrections facility where reasonable use of available
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
(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
increase dissolved oxygen or maintain open water on the ice of public waters, that
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
is liable for conduct that would entitle a trespasser to damages against a private
(q) a loss arising out of a person's use of a logging road on public land that is
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
Minnesota National Guard or the Department of Military Affairs, except that the state
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:
108.2215.01 DEPARTMENTS OF THE STATE.
The following agencies are designated as the departments of the state government:
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;
108.27the 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
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
109.3seeking a recommendation from the Iron Range Resources and Rehabilitation Board,
Iron Range resources and rehabilitation
may purchase insurance
109.5 considers the commissioner deems
necessary and appropriate to insure facilities operated
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
on January 1. The new limit must equal the limit for the prior year increased by the
increase, if any, in the Consumer Price Index for all urban consumers from October
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;
Iron Range resources and rehabilitation
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
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.
executive branch also includes employees of the Department of
Iron Range Resources and
. 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
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
(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
(7) a designee of the commissioner of
Iron Range resources and rehabilitation
(8) a designee of the local business community selected by the area chambers of
(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
(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
(c) "Environmental assessment worksheet" means a brief document which is designed
to set out the basic facts necessary to determine whether an environmental impact
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
of government in the state including, but not limited to, watershed districts organized
chapter 103D, counties, towns, cities, port authorities, housing authorities, and
development authorities established under sections
, 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
111.17including forgivable loans,
equity investments, or grants for infrastructure
in mineral, steel,
or any other industry processing, production, manufacturing, or technology project
would enhance the economic diversification and that is located within the taconite
111.20 tax assistance
area as defined under section
. The commissioner must,
prior to making any loans or equity investments and after consultation with industry
public officials, develop a strategy for making loans
equity investments, or grants for
that assists the taconite
area in retaining and enhancing its
economic competitiveness. Money in the fund may also be used to pay for the costs
carrying out the commissioner's due diligence duties under this section.
111.26EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2016, section 116J.424, is amended to read:
111.28116J.424 IRON RANGE RESOURCES AND REHABILITATION
The commissioner of
Iron Range resources and rehabilitation
Board with approval
111.31 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
tax relief taconite assistance
area defined in section
273.134 , paragraph (b) 273.1341
by the Minnesota 21st century fund created by section
. The match may be in the
form of a loan or equity investment, notwithstanding whether the fund makes a loan
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
112.6Iron Range resources and rehabilitation and the commissioner of Iron Range resources
112.7rehabilitation, after consultation with the advisory board, shall have sole discretion
it the fund
acquires in a project. The commissioner of employment and
economic development may require a commitment from the
board commissioner of Iron
112.10Range resources and rehabilitation
to make the match prior to disbursing money from the
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
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
(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.
other types of business subsidies, the agreement must state the fair market value
subsidy to the recipient, including the value of conveying property at less than a
price, or other in-kind benefits to the recipient.
(c) If a business subsidy benefits more than one recipient, the grantor must assign
proportion of the business subsidy to each recipient that signs a subsidy agreement.
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
by the local elected governing body, except for the St. Paul Port Authority and a
(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
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
"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,
grantor must provide public notice and a hearing on the subsidy. A public hearing
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
, 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
resources and rehabilitation
must be published in a local newspaper of general
circulation. The public notice must identify the location at which information about
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
from the surrounding text. The grantor must make the information available in printed
copies and, if possible, on the Internet. The government agency must provide at least
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
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
paragraph, "nonstate grantor" includes the commissioner of
Iron Range resources and
(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
with residence in or the owner of taxable property in the granting jurisdiction may
written complaint with the grantor if the grantor fails to comply with sections
, 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
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
The information must be filed on forms developed by the commissioner in cooperation
representatives of local government. Copies of the completed forms must be sent to
local government agency that provided the subsidy or to the commissioner if the grantor
a state agency. If the commissioner of
Iron Range resources and rehabilitation
grantor, the copies must be sent to the
board commissioner of Iron Range resources and
. The report must include:
(1) the type, public purpose, and amount of subsidies and type of district, if the
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
their previous location, if the recipient was previously located at another site in
(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
agency and the commissioner of
Iron Range resources and rehabilitation
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"
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
(1) the type, public purpose, and amount of the financial assistance, and type of
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
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
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
pay to the grantor a penalty of $100 for each subsequent day until the report is filed.
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,
that charges may be reduced from the base rate as agreed upon by the utility and the
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
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
; a housing and redevelopment authority established under sections
; a port authority established under sections
economic development authority established under sections
redevelopment agency as defined in sections
; the commissioner of
Range resources and rehabilitation
established under section
; a municipality
that is administering a development district created under sections
any special law; a municipality that undertakes a project under sections
except a town located outside the metropolitan area as defined in section
, or with a population of 5,000 persons or less; or a municipality that exercises
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
, "municipality" has the meaning given in
, and, with respect to a project undertaken under sections
or a county or multicounty project undertaken under sections
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
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
dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional
(2) that the project developer or owner certifies is a project capable of offering
supply contract at a hedged, predictable cost; and
(3) that is designated by the commissioner of
Iron Range resources and rehabilitation
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
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 references in sections
to property or any portion thereof subject to
taxation or taxing jurisdiction within the municipality are to the property or portion
that is located in that portion of the municipality within the area, except that the
capacity of the municipality must be computed upon the basis of the valuation and
of the entire municipality. A municipality shall be excluded from the area if its
comprehensive zoning and planning policies conscientiously exclude most
commercial-industrial development, for reasons other than preserving an agricultural
The commissioner of
Iron Range resources and rehabilitation
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
the following year. Before making the determination, the commissioner of Iron Range
117.21resources and rehabilitation must consult the Iron Range Resources and Rehabilitation
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
Board, after consultation with the Iron Range Resources and Rehabilitation
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
117.31Resources 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
subdivision 3, clause (1), including the school fund allocation within the county
total tax on contribution value pursuant to subdivision 7, within the county. On or
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
the administrative auditor shall certify to those county auditors for whose county
tax on contribution value exceeds the total levy on distribution value the settlement
county is to make to the other counties of the excess of the total tax on contribution
over the total levy on distribution value in the county. On or before June 15 and
15 of each year, each county treasurer in a county having a total tax on contribution
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
and November 15 of each year, each county treasurer shall pay to the administrative
that county's share of the school fund allocation. On or before December 1 of each
the administrative auditor shall pay the school fund allocation to the commissioner of
Range resources and rehabilitation
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
, clause (5), item (i), or
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
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
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
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
119.4298.297, "commissioner" means the commissioner of Iron Range resources and rehabilitation
Sec. 22. Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision
119.7 Subd. 12. Advisory board. "Advisory board" means the Iron Range Resources and
119.8Rehabilitation Board, as established under section 298.22. The acronym "IRRRB" means
119.9the 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
on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section
, shall be allocated as follows:
(1) five percent to the city or town within which the minerals or energy resources
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
district, the commissioner shall apportion equitably the proceeds among the cities
by attributing 50 percent of the proceeds of the tax to the operation of mining or
and the remainder to the concentrating plant and to the processes of concentration,
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
(3) ten percent to the school district within which the minerals or energy resources
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
district, distribution among the school districts must be based on the apportionment
prescribed in clause (1);
(4) 20 percent to a group of school districts comprised of those school districts
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
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
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
portion of the distribution which its index bears to the sum of the indices for all
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
provided that any county receiving distributions under this clause shall pay one percent
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
(7) five percent to the commissioner of
Iron Range resources and rehabilitation
for the purposes of section
(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:
120.21298.17 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
be apportioned and distributed in accordance with the Constitution of the state of
article X, section 3, in the manner following: 90 percent shall be deposited in the
treasury and credited to the general fund of which four-ninths shall be used for the
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
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
revenue fund an amount equal to that which would have been generated by a 2-1/2 cent
imposed by section
on each taxable ton produced in the preceding calendar year.
Money in the mining environmental and regulatory account is appropriated annually
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
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
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
on each taxable
ton produced in the preceding calendar year, to be expended for the purposes of section
; and (3) there is annually appropriated and credited to the Iron Range resources
account in the special revenue fund for transfer to the Iron Range school
consolidation and cooperatively operated school account under section
, an amount equal to that which would have been generated by a six cent tax imposed
on each taxable ton produced in the preceding calendar year. Payment to the
Iron Range resources and rehabilitation
account shall be made by May 15 annually.
(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i)
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,
which does not contain a municipality qualifying pursuant to section
, 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
county board to provide recommendations on economic development shall make
recommendations to the commissioner of
Iron Range resources and rehabilitation
regarding the loans. Payment to the Iron Range resources and rehabilitation
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:
The Office of Commissioner Department of Iron Range Resources
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
. The commissioner may expend amounts appropriated
122.4to the commissioner for projects after consultation with the advisory board created
(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
appropriated by section
or otherwise made available by law to the commissioner.
Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
options available under section
when the commissioner determines it is in the best
interest of the agency. The agency is not subject to sections
122.14commissioner has the authority to reimburse any nongovernmental manager operating
122.15state-owned facilities within the Giants Ridge Recreation Area for purchasing materials,
122.16supplies, 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
limited use of natural resources in the future and any resulting decrease in employment,
commissioner may use whatever amounts of the appropriation made to the commissioner
of revenue in section
that are determined to be necessary and proper in the
development of the remaining resources of the county and in the vocational training
rehabilitation of its residents
, except that the amount needed to cover cost overruns awarded
122.24 to a contractor by an arbitrator in relation to a contract awarded by the commissioner
122.25 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
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
from state senatorial or legislative districts in which one-third or more of the residents
in a taconite assistance area as defined in section
. One additional state senator
shall also be appointed by the senate Subcommittee on Committees of the Committee
Rules and Administration. All expenditures and projects made by the commissioner shall
first be submitted to the advisory
. The advisory board shall recommend
123.2approval or disapproval or modification of the expenditures and projects.
The expenses of
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
3.099, subdivision 1
, and may receive per diem payments during the
interims between legislative sessions in the manner provided in section
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
same manner as original members were chosen.
123.11(b) The advisory board must develop procedures to elect a chair who shall preside
123.12and convene meetings as often as necessary to conduct duties prescribed by this chapter.
123.13The advisory board must meet at least two times per year to review the actions of
Sec. 27. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
123.17 Subd. 1b. Evaluation of programs. (a) In evaluating programs proposed by the
123.18commissioner, the advisory board must consider factors, including but not limited
123.19extent to which the program:
123.20(1) contributes to increasing the effectiveness of promoting or managing Iron Range
123.21economic and workforce development, community development, minerals and natural
123.22resources development, and any other issue as determined by the advisory board; and
123.23(2) advances the strategic plan adopted under subdivision 1c.
123.24(b) In evaluating programs proposed by the commissioner, the advisory board must
123.25consider factors, including but not limited to:
123.26(1) job creation or retention goals for the program, including but not limited to
123.27and benefits; whether the jobs created are full time, part time, temporary, or permanent;
123.28whether the stated job creation or retention goals in the program proposal can be
123.29measured using methods established by the commissioner;
123.30(2) how and to what extent the program is expected to impact the economic climate
123.31the Iron Range resources and rehabilitation services area;
123.32(3) how the program would meet match requirements, if any; and
124.1(4) whether the program meets the written objectives, priorities, and policies established
124.2by the commissioner.
Sec. 28. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
124.5 Subd. 1c. Strategic plan required. The commissioner, in consultation with the advisory
124.6board, shall adopt a four-year strategic plan for making expenditures, including identifying
124.7the priority areas for funding for the term of the commissioner's appointment. The
124.8plan must be reviewed annually. The strategic plan must have clearly stated short-
124.9long-term goals and strategies for expenditures, provide measurable outcomes for
124.10expenditures, 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.
upon approval by the board after consultation
124.13with the advisory board
, may purchase forest lands in the taconite assistance area defined
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
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,
124.18 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
from the sale of timber or removal of gravel or other minerals from these forest lands
be deposited into an Iron Range Miners' Memorial Forest account that is established
the state financial accounts. Funds may be expended from the account
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,
124.26After 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
. 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
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
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
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
Discovery Center or
Giants Ridge Golf and Ski Resort without prior approval by the advisory
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,
submit it to the Iron Range Resources and Rehabilitation Board. After the budget is
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
125.22 Subd. 13. Grants and loans for economic development projects; requirements. (a)
125.23Prior to awarding any grants or approving loans from any fund or account from which
125.24commissioner has the authority under law to expend money, the commissioner must evaluate
125.25applications based on criteria including, but not limited to:
125.26(1) job creation or retention goals for the project, including but not limited to
125.27benefits, and whether the jobs created are full time, part time, temporary, or permanent;
125.28(2) whether the applicant's stated job creation or retention goals can be adequately
125.29measured using methods established by the commissioner;
125.30(3) how and to what extent the project proposed by the applicant is expected to impact
125.31the economic climate of the Iron Range resources and rehabilitation services area;
126.1(4) how the applicant would meet match requirements, if any; and
126.2(5) whether the project for which a grant or loan application has been submitted meets
126.3the written objectives, priorities, and policies established by the commissioner.
126.4(b) The commissioner, if appropriate, may include incentives in loan and grant award
126.5agreements to promote and assist grant recipients in achieving the stated job creation
126.6retention objectives established by the commissioner.
126.7(c) For all loans and grants awarded from funds under the commissioner's authority
126.8pursuant to this chapter, the commissioner must:
126.9(1) maintain a database for tracking loan and grant awards;
126.10(2) maintain an objective mechanism for measuring job creation and retention;
126.11(3) verify achievement of job creation and retention goals by grant and loan recipients;
126.12(4) monitor grant and loan awards to ensure that projects comply with applicable Iron
126.13Range resources and rehabilitation policies; and
126.14(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:
126.16298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
to the terms of any contract entered into by the state under authority of section
any fees which may, in the discretion of the commissioner of Iron Range resources
rehabilitation, be charged in connection with any project pursuant to that section
shall be deposited in the state treasury to the credit of the Iron Range resources
account in the special revenue fund and are hereby appropriated for
the purposes of section
(b) Notwithstanding section
, merchandise may be accepted by the commissioner
of the Iron Range resources and rehabilitation
for payment of advertising contracts
if the commissioner determines that the merchandise can be used for special event
or mementos at facilities operated by the
. Nothing in this paragraph
authorizes the commissioner or a member of the advisory
board to receive merchandise for
(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
by the commissioner from the operation or lease of those facilities and from the lease,
or other disposition of undeveloped lands at the Giants Ridge Recreation Area must
deposited into an Iron Range resources and rehabilitation
account that is created
within the state enterprise fund. All funds deposited in the enterprise fund account
appropriated to the commissioner
to be expended, subject to approval by the board
127.6may only be used, after consultation with the advisory board,
(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
associated with the financing of the facilities; and
(3) to pay the costs of any other project authorized under section
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
127.14 by the commissioner to the Iron Range Resources and Rehabilitation Board for approval
127.15 by the board The commissioner may authorize a project under this section only after
127.16consulting the advisory board
. Prior to the commencement of a project involving the exercise
by the commissioner of any authority of sections
, the governing body
of each municipality in which any part of the project is located and the county board
county containing portions of the project not located in an incorporated area shall
vote approve or disapprove the project. Any project approved by the
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,
approve, disapprove, or return the proposal for additional consideration within 30
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
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
Iron Range resources and rehabilitation
that have been established
according to prevailing market conditions and to recover operating costs need not
be set by
Sec. 37. Minnesota Statutes 2016, section 298.2212, is amended to read:
128.2298.2212 INVESTMENT OF FUNDS.
All funds credited to the Iron Range resources and rehabilitation
account in the
special revenue fund for the purposes of section
must be invested pursuant to law.
The net interest and dividends from the investments are included and become part of
funds available for purposes of section
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
Minnesota located within the taconite assistance area defined in section
, 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
shall be used for the following purposes:
(1) to initiate investigations into matters the commissioner of
Iron Range resources and
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
by state law;
(3) local economic development projects
but only if those projects are approved by the
and public works, including construction of sewer and water systems located within
the taconite assistance area defined in section
(4) monitoring of mineral industry related health problems among mining employees;
(5) local public works projects under section
, paragraph (c).
Sec. 39. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:
Subd. 2. Administration.
The taconite area environmental protection fund shall be
administered by the commissioner
of the Iron Range Resources and Rehabilitation Board,
128.29who must consult with the advisory board before expending any funds
128.30 shall by September 1 of each year submit to the board a list of projects to be funded
129.1 the taconite area environmental protection fund, with such supporting information
129.2 description of the projects, plans, and cost estimates as may be necessary.
129.3 (b) Each year no less than one-half of the amounts deposited into the taconite
129.4 environmental protection fund must be used for public works projects, including construction
129.5 of sewer and water systems, as specified under subdivision 1, clause (3). the Iron
129.6 Resources and Rehabilitation Board may waive the requirements of this paragraph.
129.7 (c) Upon approval by the board, the list of projects approved under this subdivision
129.8 be submitted to the governor by November 1 of each year. By December 1 of each year,
129.9 the governor shall approve or disapprove, or return for further consideration, each
129.10 Funds for a project may be expended only upon approval of the project by the board
129.11 the governor. The commissioner may submit supplemental projects to the board and governor
129.12 for approval at any time.
Sec. 40. Minnesota Statutes 2016, section 298.227, is amended to read:
129.14298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
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
Iron Range resources and rehabilitation
in a separate taconite
economic development fund for each taconite and direct reduced ore producer. Money
the fund for each producer shall be released by the commissioner after review by a
committee consisting of an equal number of representatives of the salaried employees
the nonsalaried production and maintenance employees of that producer. The District
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.
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
be released only for workforce development and associated public facility improvement,
or for acquisition of plant and stationary mining equipment and facilities for the
or for research and development in Minnesota on new mining, or taconite, iron, or
production technology, but only if the producer provides a matching expenditure equal
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
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
130.1consultation with the advisory
board, the funds must be deposited in the Taconite
Environmental Protection Fund under sections
If a producer uses money
130.3 which has been released from the fund prior to May 26, 2007 to procure haulage trucks,
130.4 mobile equipment, or mining shovels, and the producer removes the piece of equipment
130.5 from the taconite tax relief area defined in section
273.134 within ten years from the date
130.6 of receipt of the money from the fund, a portion of the money granted from the fund
130.7 be repaid to the taconite economic development fund. The portion of the money to be
130.8 is 100 percent of the grant if the equipment is removed from the taconite tax relief
130.9 within 12 months after receipt of the money from the fund, declining by ten percent
130.10 each of the subsequent nine years during which the equipment remains within the taconite
130.11 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
purchaser of the facility on the terms otherwise applicable to the former producer
section. If a producer fails to provide matching funds for a proposed expenditure
months after the commissioner approves release of the funds, the funds are available
release to another producer in proportion to the distribution provided and under the
of this section. Any portion of the fund which is not released by the commissioner
one year of its deposit in the fund shall be divided between the taconite environmental
protection fund created in section
and the Douglas J. Johnson economic protection
trust fund created in section
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
(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
130.24 distributions and the review process, an amount equal to ten cents per taxable ton
130.25 production in 2007, for distribution in 2008 only, that would otherwise be distributed
130.26 paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
130.27 wood product facility located in the taconite tax relief area and in a county that
130.28 city of the first class. This amount must be deducted from the distribution under
130.29 (a) for which a matching expenditure by the producer is not required. The granting
130.30 loan or grant is subject to approval by the board. If the money is provided as a loan,
130.31 must be payable on the loan at the rate prescribed in section
298.2213, subdivision 3 . (ii)
130.32 Repayments of the loan and interest, if any, must be deposited in the taconite environment
130.33 protection fund under sections
298.225 . If a loan or grant is not made under this
130.34 paragraph by July 1, 2012, the amount that had been made available for the loan under
130.35 paragraph must be transferred to the taconite environment protection fund under sections
298.225 . (iii) Money distributed in 2008 to the fund established under this section
131.1 that exceeds ten cents per ton is available to qualifying producers under paragraph
(a) on a
131.2 pro rata basis.
131.3 (c) Repayment or transfer of money to the taconite environmental protection fund under
131.4 paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
131.5 Board for public works projects in house legislative districts in the same proportion
131.6 taxable tonnage of production in 2007 in each house legislative district, for distribution
131.7 2008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
131.8 Notwithstanding any other law to the contrary, expenditures under this paragraph do
131.9 require approval by the governor. For purposes of this paragraph, "house legislative
131.10 means the legislative districts in existence on May 15, 2009.
Sec. 41. Minnesota Statutes 2016, section 298.27, is amended to read:
131.12298.27 COLLECTION AND PAYMENT OF TAX.
The taxes provided by section
shall be paid directly to each eligible county and
the commissioner of
Iron Range resources and rehabilitation
. The commissioner of
revenue shall notify each producer of the amount to be paid each recipient prior to
15. Every person subject to taxes imposed by section
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
paid on or before February 24. A remittance equal to the remaining total tax required
paid hereunder shall be paid on or before August 24. On or before February 25 and
25, the county auditor shall make distribution of the payments previously received
county in the manner provided by section
. 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
may be reasonably necessary or convenient for the determination and apportionment
tax. All the provisions of the occupation tax law with reference to the assessment
determination of the occupation tax, including all provisions for appeals from or
the orders of the commissioner of revenue relative thereto, but not including provisions
refunds, are applicable to the taxes imposed by section
except in so far as inconsistent
herewith. If any person subject to section
shall fail to make the report provided for
in this section at the time and in the manner herein provided, the commissioner of
shall in such case, upon information possessed or obtained, ascertain the kind and
of ore mined or produced and thereon find and determine the amount of the tax due
such person. There shall be added to the amount of tax due a penalty for failure to
on or before February 1, which penalty shall equal ten percent of the tax imposed
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
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
A person having a liability of $120,000 or more during a calendar year must remit
liabilities by means of a funds transfer as defined in section
, paragraph (a). The
funds transfer payment date, as defined in section
, 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,
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
For the 1998
distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources
for the purposes of section
. 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
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
No part of the fund provided in this subdivision may be used to provide loans
132.26 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
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
(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
(2) the amount as determined under section
, 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
133.8298.24, 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
133.12298.24, 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
133.16298.24, 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;
(4) any other amount as provided by law.
(b) Expenditures from this account may be approved as ongoing annual expenditures
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
Iron Range Resources and Rehabilitation Board. For purposes of this section,
"qualified school projects" means school projects within the taconite assistance area
defined in section
, that were (1) approved, by referendum, after April 3, 2006;
and (2) approved by the commissioner of education pursuant to section
(c) Beginning in fiscal year 2019, the disbursement to school districts for payments
bonds issued under section
, 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
134.2 of the commissioner of Iron Range resources and rehabilitation after consultation with
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
Hockey Hall of Fame, provided that it continues to operate in that city, and provided
the city of Eveleth certifies to the St. Louis County auditor that it has received
for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of
ceases to operate in the city of Eveleth prior to receipt of the distribution in any
the governing body of the city determines that it is unlikely to resume operation
a six-month period, the distribution under this subdivision shall be made to the commissioner
Iron Range resources and rehabilitation
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
. The Iron Range Higher Education committee under section
and the commissioner of
Iron Range resources and rehabilitation
Board, after consultation
134.21with 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
remain after the distributions and payments in subdivisions 2 to 10a, as certified
commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together
interest earned on all money distributed under this section prior to distribution,
divided between the taconite environmental protection fund created in section
the Douglas J. Johnson economic protection trust fund created in section
Two-thirds to the taconite environmental protection fund and one-third to the Douglas
Johnson economic protection trust fund. The proceeds shall be placed in the respective
(b) There shall be distributed to each city, town, and county the amount that it received
under Minnesota Statutes 1978,
in calendar year 1977; provided, however,
that the amount distributed in 1981 to the unorganized territory number 2 of Lake
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
Lake County and the towns of Beaver Bay and Stony River based on the miles of track
Erie Mining Company in each taxing district.
(c) There shall be distributed to the Iron Range resources and rehabilitation
the amounts it received in 1977 under Minnesota Statutes 1978,
. The amount
distributed under this paragraph shall be expended within or for the benefit of the
assistance area defined in section
(d) There shall be distributed to each school district 62 percent of the amount that
received under Minnesota Statutes 1978,
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
amount not to exceed one-half of the cost of the project for which financing is sought,
the rate of interest on a loan to a private enterprise shall be no less than the lesser
percent or an interest rate three percentage points less than a full faith and credit
of the United States government of comparable maturity, at the time that the loan
(2) to fund reserve accounts established to secure the payment when due of the principal
of and interest on bonds issued pursuant to section
(3) to pay in periodic payments or in a lump-sum payment any or all of the interest
bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
retrofitting heating facilities in connection with district heating systems or systems
alternative energy sources;
(4) to invest in a venture capital fund or enterprise that will provide capital to
entities that are engaging in, or that will engage in, projects or programs that have
purposes set forth in subdivision 1. No investments may be made in a venture capital
or enterprise unless at least two other unrelated investors make investments of at
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
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
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
value of the entity, in any of the following relationships: spouse, parent, child,
employee, or owner of an interest in the entity that exceeds ten percent of the value
interests in it. For purposes of determining the limitations under this clause, the
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
the period beginning one year before the date of the investment by the Douglas J.
economic protection trust fund; and
(5) to purchase forest land in the taconite assistance area defined in section
be held and managed as a public trust for the benefit of the area for the purposes
298.22, subdivision 5a
. Property purchased under this section may be sold by the
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
Sec. 48. Minnesota Statutes 2016, section 298.296, is amended to read:
136.20298.296 OPERATION OF FUND.
Subdivision 1. Project approval.
The board and commissioner shall by August 1 of
136.22 each year prepare a list of projects to be funded from the Douglas J. Johnson economic
136.23 protection trust with necessary supporting information including description of the
136.24 plans, and cost estimates. These
Projects shall be consistent with the priorities established
and shall not be approved by the
board unless it commissioner unless
136.26the commissioner, after consultation with the advisory board,
(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
Each project must be approved by over one-half of all of the members of the board
136.33 the commissioner of Iron Range resources and rehabilitation. The list of projects
137.1 submitted to the governor, who shall, by November 15 of each year, approve or disapprove,
137.2 or return for further consideration, each project. The money for a project may be
137.3 only upon approval of the project by the governor. The board may submit supplemental
137.4 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,
dividends arising from the investment of the trust at any time, including net interest,
and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available
use in fiscal year 1983, except that any amount required to be paid out of the trust
provide the property tax relief specified in Laws 1977, chapter 423, article X, section
to make school bond payments and payments to recipients of taconite production tax
pursuant to section
, may be taken from the corpus of the trust.
(b) Additionally, upon recommendation by the board, up to $13,000,000 from the corpus
137.14 of the trust may be made available for use as provided in subdivision 4, and up to
137.15 from the corpus of the trust may be made available for use as provided in section
137.16 (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
be expended expend
for projects under this paragraph only if
(1) the project
is for the purposes established under section
298.292, subdivision 1
clause (1) or (2); and
is approved by two-thirds of all of the members of the board the commissioner has
137.24consulted with the advisory board
No money made available under this paragraph or paragraph
can be used for
administrative or operating expenses of the Department of
Iron Range Resources and
or expenses relating to any facilities owned or operated by the
on May 18, 2002.
(d) Upon recommendation by a unanimous vote of all members of the board, (c) The
137.30commissioner may spend
amounts in addition to those authorized under paragraphs (a)
, and (c) may be expended
on projects described in section
298.292, subdivision 1, only
137.32after consultation with the advisory board
Annual administrative costs, not including detailed engineering expenses for the
projects, shall not exceed five percent of the net interest, dividends, and earnings
from the trust in the preceding fiscal year.
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
appropriated to the board for the purposes of sections
Additionally, notwithstanding section
upon the approval of the board,
138.9the 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
, subdivision 5a, and
298.292, subdivision 2
, clause (5).
Subd. 3. Administration.
Iron Range resources and
shall administer the program under which funds are expended pursuant
Subd. 4. Temporary loan authority.
The board may recommend that After
138.16consultation 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
equipping of facilities constituting (1) a value added iron products plant, which
either a new plant or a facility incorporated into an existing plant that produces
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
to the net proceeds tax imposed under section
. 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,
138.26 and earnings arising from the investment of the trust after June 30, 1996, to be used
138.27 grants, loans, loan guarantees, or equity investments for the purposes set forth in
138.28 (a). This amount must be reserved until it is used as described in this subdivision.
138.29 (c) (b)
the board may recommend that the commissioner, after consultation
138.30with 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
in paragraph (a).
board commissioner, after consultation with the advisory board,
it the fund
receive an equity percentage in any project to which it contributes under this
Sec. 49. Minnesota Statutes 2016, section 298.2961, is amended to read:
139.5298.2961 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
(b) The proceeds of the tax designated under section
298.28, subdivision 9b
appropriated for grants to producers on a project-by-project basis as provided in
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
To be proposed by the board, a project must be approved by the board. The money
139.17 for a project may be spent only upon approval of the project by the governor. The
139.18 may submit supplemental projects for approval at any time The commissioner may approve
139.19a project only after consultation with the advisory board
(c) The commissioner, after consultation with the advisory
may require that
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
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
divided between the taconite environmental protection fund created in section
the Douglas J. Johnson economic protection trust fund created in section
placement in their respective special accounts. Two-thirds of the unreleased funds
distributed to the taconite environmental protection fund and one-third to the Douglas
Johnson economic protection trust fund.
Subd. 4. Grant and loan fund.
(a) A fund is established to receive distributions under
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
140.4consultation with the advisory
board, established under section
(b) All distributions received in 2009 and subsequent years are allocated for projects
, subdivision 1.
Sec. 50. Minnesota Statutes 2016, section 298.297, is amended to read:
140.8298.297 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
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
. 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
have elapsed since the proposal was transmitted to the advisory committee, whichever
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
ore located in such district, these authorities may petition the commissioner of
resources and rehabilitation
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
with established engineering and geological exploration methods, in order that such
district may be able to forecast in a proper manner its future economic and fiscal
140.25The commissioner of Iron Range resources and rehabilitation may grant the authority
140.26petition 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
by the commissioner of
Iron Range resources and rehabilitation
that board the commissioner of Iron Range resources and rehabilitation
. The commissioner of
Iron Range resources and rehabilitation
shall be reimbursed for one-half of the amounts thus expended. Such reimbursement
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
made to the commissioner of
Iron Range resources and rehabilitation
in the manner
provided by section
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
is hereby authorized to reduce payments required to be made by the county to such
district under other provisions of law. Thereafter the auditor shall draw a warrant,
shall be deposited with the state treasury in accordance with section
, to the credit
of the commissioner of
Iron Range resources and rehabilitation
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
Range resources and rehabilitation
. A water access site under this subdivision that
provides access to an idled, water filled mine pit also includes the entire water
of the pit, and, further, claims related to a mine pit water access site under this
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
, regional development commission, or a federally designated economic development
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
identify the proposed project, and disclose the proposed amount of qualified bonds
issued. Preliminary resolutions for mortgage bonds and student loan bonds need not
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,
, 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
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
account enterprise fund created under the provisions of Minnesota
, paragraph (c), and must be dedicated and expended by the
Iron Range resources and rehabilitation
Board, upon approval by the
142.15 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,
and maintenance of public recreational facilities located in those portions of the
the Giants Ridge Recreation Area as defined in Minnesota Statutes, section
, or to pay any principal, interest, or premium on any bond issued to finance
the construction, renovation, improvement, or expansion of such public recreational
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
gross receipts subject to the lodging tax under Minnesota Statutes, section
tax is in addition to any tax imposed under Minnesota Statutes, section
, 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
142.28(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of
142.29imposed under paragraph (a), the change must be approved by both the governing body
142.30the city of Biwabik and the commissioner of Iron Range resources and rehabilitation,
142.31the commissioner of Iron Range resources and rehabilitation consults with the Iron
142.32Resources 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
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
rental of recreation equipment, at sites within the Giants Ridge Recreation Area as
in Minnesota Statutes, section
298.22, subdivision 7
. The provisions of Minnesota Statutes,
, except for subdivisions 2 and 3, govern the imposition, administration,
collection, and enforcement of the tax authorized in this subdivision.
(b) If the city imposes the tax under paragraph (a), it must include in the ordinance
exemption for purchases of season tickets or passes.
143.11(c) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of
143.12imposed under paragraph (a), the change must be approved by both the governing body
143.13the city of Biwabik and the commissioner of Iron Range resources and rehabilitation,
143.14the commissioner of Iron Range resources and rehabilitation consults with the Iron
143.15Resources and Rehabilitation Board.
Subd. 5. Food and beverage 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
Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more
one percent on gross receipts of food and beverages sold whether it is consumed on
the premises by restaurants and places of refreshment as defined by resolution of
within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section
. The provisions of Minnesota Statutes, section
, except for subdivisions
2 and 3, govern the imposition, administration, collection, and enforcement of the
authorized in this subdivision.
143.25(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of
143.26imposed under paragraph (a), the change must be approved by both the governing body
143.27the city of Biwabik and the commissioner of Iron Range resources and rehabilitation,
143.28the commissioner of Iron Range resources and rehabilitation consults with the Iron
143.29Resources and Rehabilitation Board.
143.30EFFECTIVE DATE.This section is effective August 1, 2017, without local approval
143.31pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
Sec. 58. DEPARTMENT OF IRON RANGE RESOURCES AND
144.2REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM
144.4(a) "Commissioner" as used in this section means the commissioner of Iron Range
144.5resources and rehabilitation unless otherwise specified.
144.6(b) Notwithstanding any law to the contrary, the commissioner, in consultation with
144.7commissioner of management and budget, shall offer a targeted early separation incentive
144.8program for employees of the commissioner who have attained the age of 60 years or
144.9have received credit for at least 30 years of allowable service under the provisions
144.10Minnesota Statutes, chapter 352. The commissioner shall also offer a targeted separation
144.11incentive program for employees of the commissioner whose positions are in support
144.12operations at Giants Ridge and will be eliminated if the department no longer directly
144.13manages Giants Ridge operations.
144.14(c) The early separation incentive program may include one or more of the following:
144.15(1) employer-paid postseparation health, medical, and dental insurance until age 65;
144.16(2) cash incentives that may, but are not required to be, used to purchase additional
144.17of service credit through the Minnesota State Retirement System, to the extent that
144.18purchases are otherwise authorized by law.
144.19(d) The commissioner shall establish eligibility requirements for employees to receive
144.20an incentive. The commissioner must exclude from eligibility for the incentive program
144.21employees having less than 20 years of allowable service who would otherwise qualify
144.22the incentive program.
144.23(e) The commissioner, consistent with the established program provisions under paragraph
144.24(b), and with the eligibility requirements under paragraph (f), may designate specific
144.25programs or employees as eligible to be offered the incentive program.
144.26(f) Acceptance of the offered incentive must be voluntary on the part of the employee
144.27and must be in writing. The incentive may only be offered at the sole discretion of
144.29(g) The cost of the incentive is payable solely by funds made available to the
144.30commissioner by law, but only on prior approval of the expenditures by the commissioner,
144.31after consultation with the Iron Range Resources and Rehabilitation Board.
144.32(h) Unilateral implementation of this section by the commissioner is not an unfair
144.33practice under Minnesota Statutes, chapter 179A.
145.1EFFECTIVE DATE.This section is effective the day following final enactment. This
145.2section expires July 30, 2018.
Sec. 59. REVISOR'S INSTRUCTION.
145.4The revisor of statutes, with cooperation from the House Research Department and the
145.5Senate Counsel, Research and Fiscal Analysis Office, shall prepare legislation that
145.6conforming changes in accordance with the provisions of this article. The revisor
145.7submit the proposal, in a form ready for introduction, during the 2018 regular legislative
145.8session to the chairs and ranking minority members of the senate and house of representatives
145.9committees with jurisdiction over jobs and economic development.
Sec. 60. REPEALER.
145.11Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, are
Section 1. Minnesota Statutes 2016, section 45.0135, subdivision 6, is amended to read:
Subd. 6. Insurance fraud prevention account.
The insurance fraud prevention account
is created in the state treasury. Money received from assessments under subdivision
transferred from the automobile theft prevention account in
, and 297I.11, subdivision 2
, is deposited in the account. Money in this fund
is appropriated to the commissioner of commerce for the purposes specified in this
Sec. 2. Minnesota Statutes 2016, section 46.131, subdivision 7, is amended to read:
Subd. 7. Fiscal year assessments.
Such assessments shall be levied on July 1, 1965,
at prior to
the beginning of each fiscal period beginning July 1 and ending June 30
thereafter, and shall be based on the total estimated expense as herein referred to
such period. Assessment revenue will be remitted to the commissioner for deposit in the
145.27financial institutions account on or before July 1 of each year
Sec. 3. Minnesota Statutes 2016, section 46.131, is amended by adding a subdivision to
146.3 Subd. 11. Financial institutions account; appropriation. (a) The financial institutions
146.4account is created as a separate account in the special revenue fund. The account
146.5of funds received from assessments under subdivision 7 and examination fees under
146.6subdivision 8. Earnings, including interest, dividends, and any other earnings arising
146.7account assets, must be credited to the account.
146.8(b) Funds in the account are annually appropriated to the commissioner of commerce
146.9for activities under this section.
146.10EFFECTIVE DATE.This section is effective July 1, 2017.
Sec. 4. Minnesota Statutes 2016, section 65B.84, subdivision 1, is amended to read:
Subdivision 1. Program described; commissioner's duties; appropriation.
commissioner of commerce shall:
(1) develop and sponsor the implementation of statewide plans, programs, and strategies
to combat automobile theft, improve the administration of the automobile theft laws,
provide a forum for identification of critical problems for those persons dealing
(2) coordinate the development, adoption, and implementation of plans, programs, and
strategies relating to interagency and intergovernmental cooperation with respect
automobile theft enforcement;
(3) annually audit the plans and programs that have been funded in whole or in part
evaluate the effectiveness of the plans and programs and withdraw funding should the
commissioner determine that a plan or program is ineffective or is no longer in need
further financial support from the fund;
(4) develop a plan of operation including:
(i) an assessment of the scope of the problem of automobile theft, including areas
state where the problem is greatest;
(ii) an analysis of various methods of combating the problem of automobile theft;
(iii) a plan for providing financial support to combat automobile theft;
(iv) a plan for eliminating car hijacking; and
(v) an estimate of the funds required to implement the plan; and
(5) distribute money, in consultation with the commissioner of public safety, pursuant
to subdivision 3 from the automobile theft prevention special revenue account for
theft prevention activities, including:
(i) paying the administrative costs of the program;
(ii) providing financial support to the State Patrol and local law enforcement agencies
for automobile theft enforcement teams;
(iii) providing financial support to state or local law enforcement agencies for programs
designed to reduce the incidence of automobile theft and for improved equipment and
techniques for responding to automobile thefts;
(iv) providing financial support to local prosecutors for programs designed to reduce
the incidence of automobile theft;
(v) providing financial support to judicial agencies for programs designed to reduce
incidence of automobile theft;
(vi) providing financial support for neighborhood or community organizations or business
organizations for programs designed to reduce the incidence of automobile theft and
educate people about the common methods of automobile theft, the models of automobiles
most likely to be stolen, and the times and places automobile theft is most likely
(vii) providing financial support for automobile theft educational and training programs
for state and local law enforcement officials, driver and vehicle services exam and
staff, and members of the judiciary.
(b) The commissioner may not spend in any fiscal year more than ten percent of the
money in the fund for the program's administrative and operating costs. The commissioner
is annually appropriated and must distribute the amount of the proceeds credited to
automobile theft prevention special revenue account each year, less the transfer of
each year to the
general fund insurance fraud prevention account
described in section
(c) At the end of each fiscal year, the commissioner may transfer any unobligated
in the auto theft prevention account to the insurance fraud prevention account under
147.3045.0135, subdivision 6
Sec. 5. [72A.328] AFFINITY GROUP.
148.2 Subdivision 1. Definitions. (a) For purposes of this section the following terms have
148.3the meanings given.
148.4(b) "Affinity program" means a group of individuals who are members of an entity that
148.5offers individuals benefits based on their membership in that entity. Affinity program
148.6not include an entity that obtains group insurance, as defined in section 60A.02,
148.728, or risk retention groups as defined in section 60E.02, subdivision 12.
148.8(c) "Policy" means an individually underwritten policy of private passenger vehicle
148.9insurance, as defined in section 65B.001, subdivision 2, or an individually underwritten
148.10policy of homeowner's insurance, as defined in section 65A.27, subdivision 4.
148.11 Subd. 2. Discount. An insurance company may offer an individual a discount or other
148.12benefit relating to a policy based on the individual's membership in an affinity program
148.13(1) the benefit or discount is based on an actuarial justification; and
148.14(2) the insurance company offers the benefit or discount to all members of the affinity
148.15program eligible for the discount or benefit.
Sec. 6. Minnesota Statutes 2016, section 80A.61, is amended to read:
148.1780A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT,
148.18FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER
(a) Application for initial registration by broker-dealer, agent,
or investment adviser,
148.21or investment adviser representative.
A person shall register as a broker-dealer, agent,
investment adviser, or investment adviser representative
by filing an application and a
consent to service of process complying with section 80A.88, and paying the fee specified
in section 80A.65 and any reasonable fees charged by the designee of the administrator
processing the filing. The application must contain:
(1) the information or record required for the filing of a uniform application; and
(2) upon request by the administrator, any other financial or other information or
that the administrator determines is appropriate.
If the information or record contained in an application filed under
subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant
shall promptly file a correcting amendment.
(c) Effectiveness of registration.
If an order is not in effect and a proceeding is not
pending under section 80A.67, registration becomes effective at noon on the 45th day
a completed application is filed, unless the registration is denied. A rule adopted
issued under this chapter may set an earlier effective date or may defer the effective
until noon on the 45th day after the filing of any amendment completing the application.
(d) Registration renewal.
A registration is effective until midnight on December 31 of
the year for which the application for registration is filed. Unless an order is in
section 80A.67, a registration may be automatically renewed each year by filing such
as are required by rule adopted or order issued under this chapter, by paying the
in section 80A.65, and by paying costs charged by the designee of the administrator
processing the filings.
(e) Additional conditions or waivers.
A rule adopted or order issued under this chapter
may impose such other conditions, not inconsistent with the National Securities Markets
Improvement Act of 1996. An order issued under this chapter may waive, in whole or
part, specific requirements in connection with registration as are in the public interest
for the protection of investors.
(f) Funding portal registration.
A funding portal that has its principal place of business
in the state of Minnesota shall register with the state of Minnesota by filing with
administrator a copy of the information or record required for the filing of an application
for registration as a funding portal in the manner established by the Securities and
Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with
any rule adopted or order issued, and any amendments thereto.
(g) Application for investment adviser representative registration.
(1) The application for initial registration as an investment adviser representative
is made by completing Form U-4 (Uniform Application for Securities
Industry Registration or Transfer) in accordance with the form instructions and by
the form U-4 with the IARD. The application for initial registration must also include
(i) proof of compliance by the investment adviser representative with the examination
(A) the Uniform Investment Adviser Law Examination (Series 65); or
(B) the General Securities Representative Examination (Series 7) and the Uniform
Combined State Law Examination (Series 66);
(ii) any other information the administrator may reasonably require.
(2) The application for the annual renewal registration as an investment adviser
representative shall be filed with the IARD.
(3)(i) The investment adviser representative is under a continuing obligation to update
information required by Form U-4 as changes occur;
(ii) An investment adviser representative and the investment adviser must file promptly
with the IARD any amendments to the representative's Form U-4; and
(iii) An amendment will be considered to be filed promptly if the amendment is filed
within 30 days of the event that requires the filing of the amendment.
(4) An application for initial or renewal of registration is not considered filed
until the required fee and all required submissions have been received
by the administrator.
(5) The application for withdrawal of registration as an investment adviser representative
pursuant to section
shall be completed by following the instructions on Form U-5
(Uniform Termination Notice for Securities Industry Registration) and filed upon Form
with the IARD.
Sec. 7. Minnesota Statutes 2016, section 80A.65, subdivision 2, is amended to read:
Subd. 2. Registration application and renewal filing fee.
Every applicant for an initial
or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer,
in the case of an agent,
$100 in the case of an investment adviser, and $50 in the case
150.21of an investment adviser representative
. When an application is denied or withdrawn, the
filing fee shall be retained. A registered agent who has terminated employment with
broker-dealer shall, before beginning employment with another broker-dealer, pay a
fee of $25.
Sec. 8. Minnesota Statutes 2016, section 216B.62, subdivision 3b, is amended to read:
Subd. 3b. Assessment for department regional and national duties.
In addition to
other assessments in subdivision 3, the department may assess up to
per fiscal year for performing its duties under section
216A.07, subdivision 3a
. The amount
in this subdivision shall be assessed to energy utilities in proportion to their respective
operating revenues from retail sales of gas or electric service within the state during
calendar year and shall be deposited into an account in the special revenue fund and
appropriated to the commissioner of commerce for the purposes of section
. An assessment made under this subdivision is not subject to the cap on
assessments provided in subdivision 3 or any other law. For the purpose of this subdivision,
an "energy utility" means public utilities, generation and transmission cooperative
associations, and municipal power agencies providing natural gas or electric service
state. This subdivision expires June 30,
Sec. 9. [239.7511] GAS TAX SIGN ON PETROLEUM DISPENSER.
151.7(a) The director must ensure that signs having 12-point font or greater are affixed
151.8retail petroleum dispensers as follows:
151.9(1) for regular or premium gasoline, a sign that reads: "The price for each gallon
151.10gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal
151.11tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for
151.12bridges, according to the Minnesota Constitution."; and
151.13(2) for diesel fuel, a sign that reads: "The price for each gallon of diesel fuel
151.14the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of
151.15per gallon. Revenue from the state fuel tax may be used only for roads and bridges,
151.16to the Minnesota Constitution."
151.17(b) The director must distribute the signs under this section to the owner or operator
151.18retail petroleum dispensers. To the extent possible, the director must coordinate
151.19distribution of signs with other duties the director may have involving retail petroleum
151.21(c) If the amount of the gasoline tax described in paragraph (a), clauses (1) and
151.22changes, the director must distribute revised signs to reflect the updated gasoline
151.23within 12 calendar months of the change.
151.24 (d) The director is prohibited from assessing any penalty, fine, or fee on the owner
151.25operator of a retail petroleum dispenser that has a missing, destroyed, defaced, or
151.26damaged gas tax sign.
Sec. 10. Minnesota Statutes 2016, section 297I.11, subdivision 2, is amended to read:
Subd. 2. Automobile theft prevention account.
A special revenue account in the state
treasury shall be credited with the proceeds of the surcharge imposed under subdivision
Of the revenue in the account, $1,300,000 each year must be transferred to the
151.31insurance fraud prevention account under section 45.0135, subdivision 6
. Revenues in excess
of $1,300,000 each year may be used only for the automobile theft prevention program
described in section
Sec. 11. Minnesota Statutes 2016, section 325J.06, is amended to read:
152.4325J.06 EFFECT OF NONREDEMPTION.
(a) A pledgor shall have no obligation to redeem pledged goods or make any payment
on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date
the pawn transaction
, renewal, or extension
shall automatically be forfeited to the
pawnbroker, and qualified right, title, and interest in and to the goods shall automatically
vest in the pawnbroker.
(b) The pawnbroker's right, title, and interest in the pledged goods under paragraph
is qualified only by the pledgor's right, while the pledged goods remain in possession
pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus
and/or interest accrued up to the date of redemption.
(c) A pawn transaction that involves holding only the title to property is subject
168A or 336.
Sec. 12. Minnesota Statutes 2016, section 345.42, is amended by adding a subdivision to
152.18 Subd. 1a. Required lists. (a) Beginning January 1, 2018, and annually thereafter, and
152.19provided that a member has requested it, the commissioner shall provide to each member
152.20of the legislature a list in electronic form of all persons appearing to be owners
152.21property whose last known address is located in the legislator's respective legislative
152.22(b) Beginning July 1, 2017, and every six months thereafter, and provided that a county
152.23has requested it, the commissioner shall provide to the county a list in electronic
152.24all persons appearing to be owners of abandoned property whose last known address
152.25located in the county. A request under this paragraph must be made in writing by a
152.26authorized by the county to make the request and is good until canceled.
152.27EFFECTIVE DATE.This section is effective January 1, 2018.
Sec. 13. Minnesota Statutes 2016, section 345.49, is amended to read:
152.29345.49 CLAIM FOR ABANDONED PROPERTY PAID OR DELIVERED.
Subdivision 1. Filing. (a)
Any person claiming an interest in any property delivered to
the state under sections
may file a claim thereto or to the proceeds from
the sale thereof on the form prescribed by the commissioner.
153.4(b) Any person claiming an interest in property evidenced by a will or trust document,
153.5or court order, may submit to the commissioner only such portions of the document
153.6necessary to establish a claim.
Subd. 2. Appropriation.
There is hereby appropriated to the persons entitled to a refund,
from the fund in the state treasury to which the money was credited, an amount sufficient
to make the refund and payment.
153.10 Subd. 3. Data. Government data received by the commissioner pursuant to this section
153.11is nonpublic data or private data on individuals, as defined in section 13.02, subdivisions
153.13EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 14. [471.9998] MERCHANT BAGS.
153.15 Subdivision 1. Merchant option. All merchants, itinerant vendors, and peddlers doing
153.16business in this state shall have the option to provide customers a paper, plastic,
153.17bag for the packaging of any item or good purchased, provided such purchase is of
153.18and manner commensurate with the use of paper, plastic, or reusable bags.
153.19 Subd. 2. Prohibition; bag ban. Notwithstanding any other provision of law, no political
153.20subdivision shall impose any ban upon the use of paper, plastic, or reusable bags
153.21packaging of any item or good purchased from a merchant, itinerant vendor, or peddler.
153.22EFFECTIVE DATE.This section is effective May 31, 2017. Ordinances existing on
153.23the effective date of this section that would be prohibited under this section are
153.24of the effective date of this section.
Sec. 15. REPORT ON UNCLAIMED PROPERTY DIVISION.
153.26The commissioner shall report by February 15, 2018, to the chairs and ranking minority
153.27members of the standing committees of the house of representatives and senate having
153.28jurisdiction over commerce regarding the process owners of abandoned property must
153.29comply with in order to file an allowed claim under Minnesota Statutes, chapter 345.
153.30report shall include information regarding the documentation and identification necessary
153.31for owners of each type of abandoned property under Minnesota Statutes, chapter 345,
153.32file an allowed claim.
154.1EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 16. REPEALER.
154.3Minnesota Statutes 2016, section 46.131, subdivision 5, is repealed.
Section 1. Minnesota Statutes 2016, section 237.162, subdivision 2, is amended to read:
Subd. 2. Local government unit.
"Local government unit" means a county, home rule
charter or statutory city,
town, or the Metropolitan Council
154.9EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2016, section 237.162, subdivision 4, is amended to read:
Subd. 4. Telecommunications right-of-way user. (a)
user" means a person owning or controlling a facility in the public right-of-way,
to own or control a facility in the public right-of-way, that is used or is intended
to be used
for providing wireless service, or
transporting telecommunications or other voice or data
A cable communication system defined and regulated under chapter 238, and
telecommunications activities related to providing natural gas or electric energy
whether provided by,
a public utility as defined in section
, a municipality, a
municipal gas or power agency organized under chapter 453 or 453A, or a cooperative
electric association organized under chapter 308A, are not telecommunications right-of-way
users for the purposes of this section and section
237.163, except to the extent these entities
154.22are offering wireless services
154.23EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2016, section 237.162, subdivision 9, is amended to read:
Subd. 9. Management costs or rights-of-way management costs. (a)
costs" or "rights-of-way management costs" means the actual costs a local government
incurs in managing its public rights-of-way, and includes such costs, if incurred,
associated with registering applicants; issuing, processing, and verifying right-of-way
154.29small wireless facility
permit applications; inspecting job sites and restoration projects;
maintaining, supporting, protecting, or moving user equipment during public right-of-way
work; determining the adequacy of right-of-way restoration; restoring work inadequately
performed after providing notice and the opportunity to correct the work; and revoking
right-of-way or small wireless facility
Management costs do not include:
payment by a telecommunications right-of-way user for the use of the public
155.7(2) unreasonable fees of a third-party contractor used by a local government unit
155.8of managing its public rights-of-way, including but not limited to any third-party
155.9fee tied to or based upon customer counts, access lines, revenue generated by the
155.10telecommunications right-of-way user, or revenue generated for a local government
the fees and cost of litigation relating to the interpretation of this section or
or any ordinance enacted under those sections, or the local unit of government's
fees and costs related to appeals taken pursuant to section
237.163, subdivision 5
155.15EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
155.18 Subd. 10. Collocate. "Collocate" or "collocation" means to install, mount, maintain,
155.19modify, operate, or replace a small wireless facility on, under, within, or adjacent
155.20existing wireless support structure that is owned privately or by a local government
155.21EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
155.24 Subd. 11. Small wireless facility. "Small wireless facility" means:
155.25(1) a wireless facility that meets both of the following qualifications:
155.26(i) each antenna is located inside an enclosure of no more than six cubic feet in
155.27or, in the case of an antenna that has exposed elements, the antenna and all its exposed
155.28elements could fit within an enclosure of no more than six cubic feet; and
155.29(ii) all other wireless equipment associated with the small wireless facility, excluding
155.30electric meters, concealment elements, telecommunications demarcation boxes, battery
155.31backup power systems, grounding equipment, power transfer switches, cutoff switches,
156.1cable, conduit, vertical cable runs for the connection of power and other services,
156.2equipment concealed from public view within or behind an existing structure or concealment,
156.3is in aggregate no more than 28 cubic feet in volume; or
156.4(2) a micro wireless facility.
156.5EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
156.8 Subd. 12. Utility pole. "Utility pole" means a pole that is used in whole or in part to
156.9facilitate telecommunications or electric service.
156.10EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 7. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
156.13 Subd. 13. Wireless facility. (a) "Wireless facility" means equipment at a fixed location
156.14that enables the provision of wireless services between user equipment and a wireless
156.16(1) equipment associated with wireless service;
156.17(2) a radio transceiver, antenna, coaxial or fiber-optic cable, regular and backup
156.18supplies, and comparable equipment, regardless of technological configuration; and
156.19(3) a small wireless facility.
156.20(b) "Wireless facility" does not include:
156.21(1) wireless support structures;
156.22(2) wireline backhaul facilities; or
156.23(3) coaxial or fiber-optic cables (i) between utility poles or wireless support structures,
156.24or (ii) that are not otherwise immediately adjacent to or directly associated with
156.26EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
157.3 Subd. 14. Micro wireless facility. "Micro wireless facility" means a small wireless
157.4facility that is no larger than 24 inches long, 15 inches wide, and 12 inches high,
157.5exterior antenna, if any, is no longer than 11 inches.
157.6EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
157.9 Subd. 15. Wireless service. "Wireless service" means any service using licensed or
157.10unlicensed wireless spectrum, including the use of Wi-Fi, whether at a fixed location
157.11means of a mobile device, that is provided using wireless facilities. Wireless service
157.12not include services regulated under Title VI of the Communications Act of 1934, as
157.13amended, including a cable service under United States Code, title 47, section 522,
157.15EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision
157.18 Subd. 16. Wireless support structure. "Wireless support structure" means a new or
157.19existing structure in a public right-of-way designed to support or capable of supporting
157.20small wireless facilities, as reasonably determined by a local government unit.
157.21EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 11. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision
157.24 Subd. 17. Wireline backhaul facility. "Wireline backhaul facility" means a facility
157.25used to transport communications data by wire from a wireless facility to a communications
157.27EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 12. Minnesota Statutes 2016, section 237.163, subdivision 2, is amended to read:
Subd. 2. Generally.
(a) Subject to this section, a telecommunications right-of-way user
authorized to do business under the laws of this state or by license of the Federal
Communications Commission may construct, maintain, and operate small wireless facilities,
conduit, cable, switches, and related appurtenances and facilities along, across,
and under any public right-of-way.
(b) Subject to this section, a local government unit has the authority to manage its
rights-of-way and to recover its rights-of-way management costs. Except as provided in
158.6subdivisions 3a, 3b, and 3c,
the authority defined in this section may be exercised at the
option of the local government unit
. The exercise of this authority and
is not mandated under
this section. A local government unit may, by ordinance:
(1) require a telecommunications right-of-way user seeking to excavate or obstruct
public right-of-way for the purpose of providing telecommunications services to obtain
right-of-way permit to do so and to impose permit conditions consistent with the local
government unit's management of the right-of-way;
(2) require a telecommunications right-of-way user using, occupying, or seeking to
or occupy a public right-of-way for the purpose of providing telecommunications services
to register with the local government unit by providing the local government unit
(i) the applicant's name, gopher state one-call registration number under section
address, and telephone and facsimile numbers;
(ii) the name, address, and telephone and facsimile numbers of the applicant's local
(iii) proof of adequate insurance; and
(iv) other information deemed reasonably necessary by the local government unit for
the efficient administration of the public right-of-way; and
(3) require telecommunications right-of-way users to submit to the local government
unit plans for construction and major maintenance that provide reasonable notice to
local government unit of projects that the telecommunications right-of-way user expects
undertake that may require excavation and obstruction of public rights-of-way.
(c) A local government unit may also require a telecommunications right-of-way user
that is registered with the local government unit pursuant to paragraph (b), clause
periodically update the information in its registration application.
158.31(d) Notwithstanding sections 394.34 and 462.355, or any other law, a local government
158.32unit must not establish a moratorium with respect to:
159.1(1) filing, receiving, or processing applications for right-of-way or small wireless
159.3(2) issuing or approving right-of-way or small wireless facility permits.
159.4(e) A telecommunications right-of-way user may place a new wireless support structure
159.5or collocate small wireless facilities on wireless support structures located within
159.6right-of-way, subject to the approval procedures under this section and, for collocation
159.7wireless support structures owned by a local government unit, the reasonable terms,
159.8conditions, and rates set forth under this section. A local government unit may prohibit,
159.9regulate, or charge a fee to install wireless support structures or to collocate small
159.10facilities only as provided in this section.
159.11(f) The placement of small wireless facilities and wireless support structures to
159.12accommodate small wireless facilities are a permitted use in a public right-of-way,
159.13that a local government unit may require a person to obtain a special or conditional
159.14use permit to install a new wireless support structure for the siting of a small wireless
159.15in a right-of-way in a district or area zoned for single-family residential use or
159.16historic district established by federal or state law or city ordinance as of the
159.17application for a small wireless facility permit. This paragraph does not apply to
159.18outside a public right-of-way that are zoned and used exclusively for single-family
159.20EFFECTIVE DATE.This section is effective the day following final enactment, except
159.21that paragraph (d) is effective January 1, 2018, for a local government unit that
159.22enacted an ordinance regulating public rights-of-way as of May 18, 2017.
Sec. 13. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
159.25 Subd. 3a. Small wireless facility permits; general. (a) A local government unit:
159.26(1) may require a telecommunications right-of-way user to obtain a permit or permits
159.27under this section to place a new wireless support structure or collocate a small
159.28facility in a public right-of-way managed by the local government unit;
159.29(2) must not require an applicant for a small wireless facility permit to provide
159.31(i) has previously been provided to the local government unit by the applicant in
159.32application for a small wireless permit, which specific reference shall be provided
159.33local government unit by the applicant; and
160.1(ii) is not reasonably necessary to review a permit application for compliance with
160.2generally applicable and reasonable health, safety, and welfare regulations, and to
160.3demonstrate compliance with applicable Federal Communications Commission regulations
160.4governing radio frequency exposure, or other information required by this section;
160.5(3) must ensure that any application for a small wireless facility permit is processed
160.6a nondiscriminatory basis; and
160.7(4) must specify that the term of a small wireless facility permit is equal to the
160.8of time that the small wireless facility is in use, unless the permit is revoked under
160.10(b) An applicant may file a consolidated permit application to collocate up to 15
160.11wireless facilities, or a greater number if agreed to by a local government unit,
160.12that all the small wireless facilities in the application:
160.13(1) are located within a two-mile radius;
160.14(2) consist of substantially similar equipment; and
160.15(3) are to be placed on similar types of wireless support structures.
160.16In rendering a decision on a consolidated permit application, a local government unit
160.17approve a permit for some small wireless facilities and deny a permit for others,
160.18not use denial of one or more permits as a basis to deny all the small wireless facilities
160.20(c) If a local government unit receives applications within a single seven-day period
160.21from one or more applicants seeking approval of permits for more than 30 small wireless
160.22facilities, the local government unit may extend the 90-day deadline imposed in subdivision
160.233c by an additional 30 days. If a local government unit elects to invoke this extension,
160.24must inform in writing any applicant to whom the extension will be applied.
160.25(d) A local government unit is prohibited from requiring a person to pay a small wireless
160.26facility permit fee, obtain a small wireless facility permit, or enter into a small
160.27facility collocation agreement solely in order to conduct any of the following activities:
160.28(1) routine maintenance of a small wireless facility;
160.29(2) replacement of a small wireless facility with a new facility that is substantially
160.30or smaller in size, weight, height, and wind or structural loading than the small
160.31facility being replaced; or
161.1(3) installation, placement, maintenance, operation, or replacement of micro wireless
161.2facilities that are suspended on cables strung between existing utility poles in compliance
161.3with national safety codes.
161.4A local government unit may require advance notification of these activities if the
161.5will obstruct a public right-of-way.
161.6(e) Nothing in this subdivision affects the need for an entity seeking to place a
161.7wireless facility on a wireless support structure that is not owned by a local government
161.8unit to obtain from the owner of the wireless support structure any necessary authority
161.9place the small wireless facility, nor shall any provision of this chapter be deemed
161.10the rates, terms, and conditions for access to or placement of a small wireless facility
161.11wireless support structure not owned by a local government unit. This subdivision
161.12affect any existing agreement between a local government unit and an entity concerning
161.13the placement of small wireless facilities on local government unit-owned wireless
161.15(f) No later than six months after the effective date of this act or three months
161.16receiving a small wireless facility permit application from a wireless service provider,
161.17local government unit that has elected to set forth terms and conditions of collocation
161.18standard small wireless facility collocation agreement shall develop and make available
161.19agreement that complies with the requirements of this section and section 237.162.
161.20standard small wireless facility collocation agreement shall be substantially complete.
161.21Notwithstanding any law to the contrary, the parties to a small wireless facility
161.22agreement may incorporate additional terms and conditions mutually agreed upon into
161.23small wireless facility collocation agreement. A small wireless facility collocation
161.24between a local government unit and a wireless service provider is considered public
161.25not on individuals and is accessible to the public under section 13.03.
161.26(g) An approval of a small wireless facility permit under this section authorizes
161.27installation, placement, maintenance, or operation of a small wireless facility to
161.28wireless service and shall not be construed to confer authorization to (1) provide
161.29other than a wireless service, or (2) install, place, maintain, or operate a wireline
161.30facility in the right-of-way.
161.31(h) The terms and conditions of collocation under this subdivision:
161.32(1) may be set forth in a small wireless facility collocation agreement, if a local
161.33government unit elects to utilize such an agreement;
161.34(2) must be nondiscriminatory, competitively neutral, and commercially reasonable;
162.1(3) must comply with this section and section 237.162.
162.2EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 14. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
162.5 Subd. 3b. Small wireless facility permits; placement. (a) A local government unit may
162.6not require the placement of small wireless facilities on any specific wireless support
162.7other than the wireless support structure proposed in the permit application.
162.8(b) A local government unit must not limit the placement of small wireless facilities,
162.9either by minimum separation distances between small wireless facilities or maximum
162.10height limitations, except that each wireless support structure installed in the right-of-way
162.11after the effective date of this act shall not exceed 50 feet above ground level,
162.12local government unit agrees to a greater height, subject to local zoning regulations,
162.13may be subject to separation requirements in relation to other wireless support structures.
162.14(c) Notwithstanding paragraph (b), a wireless support structure that replaces an existing
162.15wireless support structure that is higher than 50 feet above ground level may be placed
162.16the height of the existing wireless support structure, unless the local government
162.17to a greater height, subject to local zoning regulations.
162.18(d) Wireless facilities constructed in the right-of-way after the effective date of
162.19may not extend more than ten feet above an existing wireless support structure in
162.20of the effective date of this act.
162.21EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 15. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
162.24 Subd. 3c. Small wireless facility permits; approval. (a) Except as provided in
162.25subdivision 4, a local government unit shall issue a small wireless facility permit
162.26telecommunications right-of-way user seeking to install a new or replacement wireless
162.27support structure for a small wireless facility, or to collocate a small wireless
facility on a
162.28wireless support structure in a public right-of-way. In processing and approving a
162.29wireless facility permit, a local government unit may condition its approval on compliance
162.31(1) generally applicable and reasonable health, safety, and welfare regulations consistent
162.32with the local government unit's public right-of-way management;
163.1(2) reasonable accommodations for decorative wireless support structures or signs;
163.2(3) any reasonable restocking, replacement, or relocation requirements when a new
163.3wireless support structure is placed in a public right-of-way.
163.4(b) A local government unit has 90 days after the date a small wireless facility permit
163.5application is filed to issue or deny the permit, or the permit is automatically issued.
163.6the 90-day clock, the local government unit must provide a written notice of incompleteness
163.7to the applicant within 30 days of receipt of the application, clearly and specifically
163.8delineating all missing documents or information. Information delineated in the notice
163.9limited to documents or information publicly required as of the date of application
163.10reasonably related to a local government unit's determination whether the proposed
163.11falls within the definition of a small wireless facility and whether the proposed
163.12satisfies all health, safety, and welfare regulations applicable to the small wireless
163.13permit request. Upon an applicant's submittal of additional documents or information
163.14response to a notice of incompleteness, the local government unit has ten days to
163.15applicant in writing of any information requested in the initial notice of incompleteness
163.16is still missing. Second or subsequent notices of incompleteness may not specify documents
163.17or information that were not delineated in the original notice of incompleteness.
163.18for information not requested in the initial notice of incompleteness do not toll
163.19clock. Parties can mutually agree in writing to toll the 90-day clock at any time.
163.2015.99 does not apply to this paragraph or paragraph (c).
163.21For the purposes of this subdivision, "toll the 90-day clock" means to halt the progression
163.22of days that count towards the 90-day deadline.
163.23(c) Except as provided in subdivision 3a, paragraph (c), a small wireless facility
163.24and any associated encroachment or building permit required by a local government
163.25are deemed approved if the local government unit fails to approve or deny the application
163.26within 90 days after the permit application has been filed, unless the applicant and
163.27government unit have mutually agreed in writing to extend the 90-day deadline.
163.28(d) Nothing in this subdivision precludes a local government unit from applying generally
163.29applicable and reasonable health, safety, and welfare regulations when evaluating
163.30deciding to approve or deny a small wireless facility permit.
163.31EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 16. Minnesota Statutes 2016, section 237.163, subdivision 4, is amended to read:
Subd. 4. Permit denial or revocation.
(a) A local government unit may deny any
application for a right-of-way or small wireless facility
permit if the telecommunications
right-of-way user does not comply with a provision of this section.
(b) A local government unit may deny an application for a right-of-way permit if the
local government unit determines that the denial is necessary to protect the health,
and welfare or when necessary to protect the public right-of-way and its current use.
(c) A local government unit may revoke a right-of-way or small wireless facility
granted to a telecommunications right-of-way user, with or without fee refund, in
of a substantial breach of the terms and conditions of statute, ordinance, rule, or
or any material condition of the permit. A substantial breach by a permittee includes,
is not limited to, the following:
(1) a material violation of a provision of the right-of-way or small wireless facility
(2) an evasion or attempt to evade any material provision of the right-of-way or small
permit, or the perpetration or attempt to perpetrate any fraud or deceit upon
the local government unit or its citizens;
(3) a material misrepresentation of fact in the right-of-way or small wireless facility
(4) a failure to complete work in a timely manner, unless a permit extension is obtained
or unless the failure to complete work is due to reasons beyond the permittee's control;
(5) a failure to correct, in a timely manner, work that does not conform to applicable
standards, conditions, or codes, upon inspection and notification by the local government
unit of the faulty condition.
(d) Subject to this subdivision, a local government unit may not deny an application
a right-of-way or small wireless facility
permit for failure to include a project in a plan
submitted to the local government unit under subdivision 2, paragraph (b), clause
the telecommunications right-of-way user has used commercially reasonable efforts
anticipate and plan for the project.
(e) In no event may a local government unit unreasonably withhold approval of an
application for a right-of-way or small wireless facility
permit, or unreasonably revoke a
165.1(f) Any denial or revocation of a right-of-way or small wireless facility permit must
165.2made in writing and must document the basis for the denial. The local government unit
165.3notify the telecommunications right-of-way user in writing within three business days
165.4the decision to deny or revoke a permit. If a permit application is denied, the
165.5telecommunications right-of-way user may cure the deficiencies identified by the local
165.6government unit and resubmit its application. If the telecommunications right-of-way
165.7resubmits the application within 30 days of receiving written notice of the denial,
165.8not be charged an additional filing or processing fee. The local government unit must
165.9or deny the revised application within 30 days after the revised application is submitted.
165.10EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 17. Minnesota Statutes 2016, section 237.163, subdivision 6, is amended to read:
Subd. 6. Fees.
(a) A local government unit may recover its right-of-way management
costs by imposing a fee for registration, a fee for each right-of-way or small wireless facility
permit, or, when appropriate, a fee applicable to a particular telecommunications
user when that user causes the local government unit to incur costs as a result of
inactions of that user. A local government unit may not recover costs
telecommunications right-of-way user
costs or an owner of a cable communications system
165.18awarded a franchise under chapter 238
caused by another entity's activity in the right-of-way.
(b) Fees, or other right-of-way obligations, imposed by a local government unit on
telecommunications right-of-way users under this section must be:
(1) based on the actual costs incurred by the local government unit in managing the
(2) based on an allocation among all users of the public right-of-way, including the
government unit itself, which shall reflect the proportionate costs imposed on the
government unit by each of the various types of uses of the public rights-of-way;
(3) imposed on a competitively neutral basis; and
(4) imposed in a manner so that aboveground uses of public rights-of-way do not bear
costs incurred by the local government unit to regulate underground uses of public
(c) The rights, duties, and obligations regarding the use of the public right-of-way
imposed under this section must be applied to all users of the public right-of-way,
the local government unit while recognizing regulation must reflect the distinct engineering,
construction, operation, maintenance and public and worker safety requirements, and
standards applicable to various users of the public rights-of-way. For users subject
franchising authority of a local government unit, to the extent those rights, duties,
obligations are addressed in the terms of an applicable franchise agreement, the terms
the franchise shall prevail over any conflicting provision in an ordinance.
166.5(d) A wireless service provider may collocate small wireless facilities on wireless
166.6structures owned or controlled by a local government unit and located within the public
166.7roads or rights-of-way without being required to apply for or enter into any individual
166.8license, franchise, or other agreement with the local government unit or any other
166.9other than a standard small wireless facility collocation agreement under subdivision
166.10paragraph (f), if the local unit of government elects to utilize such an agreement.
166.11(e) Any initial engineering survey and preparatory construction work associated with
166.12collocation must be paid by the cost causer in the form of a onetime, nonrecurring,
166.13commercially reasonable, nondiscriminatory, and competitively neutral charge to recover
166.14the costs associated with a proposed attachment.
166.15(f) Total application fees for a small wireless facility permit must comply with this
166.16subdivision with respect to costs related to the permit.
166.17(g) A local government unit may elect to charge each small wireless facility attached
166.18a wireless support structure owned by the local government unit a fee, in addition
166.19fees or charges allowed under this subdivision, consisting of:
166.20(1) up to $150 per year for rent to occupy space on a wireless support structure;
166.21(2) up to $25 per year for maintenance associated with the space occupied on a wireless
166.22support structure; and
166.23(3) a monthly fee for electricity used to operate a small wireless facility, if not
166.24directly from a utility, at the rate of:
166.25(i) $73 per radio node less than or equal to 100 max watts;
166.26(ii) $182 per radio node over 100 max watts; or
166.27(iii) the actual costs of electricity, if the actual costs exceed the amount in item
166.29EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 18. Minnesota Statutes 2016, section 237.163, subdivision 7, is amended to read:
Subd. 7. Additional right-of-way provisions.
(a) In managing the public rights-of-way
and in imposing fees under this section, no local government unit may:
(1) unlawfully discriminate among telecommunications right-of-way users;
(2) grant a preference to any telecommunications right-of-way user;
(3) create or erect any unreasonable requirement for entry to the public rights-of-way
by telecommunications right-of-way users; or
(4) require a telecommunications right-of-way user to obtain a franchise or pay for
use of the right-of-way.
(b) A telecommunications right-of-way user need not apply for or obtain right-of-way
permits for facilities that are located in public rights-of-way on May 10, 1997, for
the user has obtained the required consent of the local government unit, or that are
lawfully occupying the public right-of-way. However, the telecommunications right-of-way
user may be required to register and to obtain a right-of-way permit for an excavation
obstruction of existing facilities within the public right-of-way after May 10, 1997.
(c) Data and documents exchanged between a local government unit and a
telecommunications right-of-way user are subject to the terms of chapter 13. A local
government unit not complying with this paragraph is subject to the penalties set
(d) A local government unit may not collect a fee imposed under this section through
the provision of in-kind services by a telecommunications right-of-way user, nor may
local government unit require the provision of in-kind services as a condition of
use the local government unit's public right-of-way or to obtain a small wireless facility
167.25(e) Except as provided in this chapter or required by federal law, a local government
167.26unit shall not adopt or enforce any regulation on the placement or operation of
167.27communications facilities in the right-of-way where the entity is already authorized
167.28operate in the right-of-way, and shall not regulate or impose or collect fees on
167.29communications services except to the extent specifically provided for in the existing
167.30authorization, and unless expressly required by state or federal statute.
Sec. 19. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
168.3 Subd. 9. Authorized contractors. (a) Nothing in this section precludes a
168.4telecommunications right-of-way user from authorizing another entity or individual
168.5on its behalf to install, construct, maintain, or repair a facility or facilities
owned or controlled
168.6by the telecommunications right-of-way user.
168.7(b) A local government unit is prohibited from imposing fees or requirements on an
168.8authorized entity or individual for actions on behalf of a telecommunications right-of-way
168.9user that are in addition to or different from the fees and requirements it is authorized
168.10impose on the telecommunications right-of-way user under this section.
168.11EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 20. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
168.14 Subd. 10. Exemptions. (a) Notwithstanding any other provision in this chapter, this
168.15section does not apply to a wireless support structure owned, operated, maintained,
168.16by a municipal electric utility.
168.17(b) Subdivisions 3a, 3b, 3c, and subdivision 6, paragraphs (d) through (g), and subdivision
168.187, paragraph (e), do not apply to the collocation or regulation of small wireless
168.19issued a permit by a local government unit before the effective date of this act under
168.20ordinance enacted before May 18, 2017, that regulates the collocation of small wireless
168.22EFFECTIVE DATE.This section is effective the day following final enactment.
Section 1. Minnesota Statutes 2016, section 3.8851, subdivision 1, is amended to read:
Subdivision 1. Establishment.
(a) There is established a Legislative Energy Commission
to study and to make recommendations for legislation concerning issues related to
under subdivision 3.
(b) The commission consists of:
members of the house of representatives, five of whom are
the speaker of the house
four of whom
must be from are appointed by the leader of
, and including the chair of the committee with primary jurisdiction over
169.2 energy policy; the chair or another member of each of the committees with primary
169.3 jurisdiction over environmental policy, agricultural policy, and transportation policy
members of the senate
to be, five of whom are
appointed by the
169.5 on Committees, leader of the majority caucus and
four of whom
must be from are appointed
169.6by the leader of
the minority caucus
, and including the chair of the committee with primary
169.7 jurisdiction over energy policy; and the chair or another member of each of the committees
169.8 with primary jurisdiction over environmental policy, agricultural policy, and transportation
(c) The commission may employ full-time and part-time staff, contract for consulting
services, and may reimburse the expenses of persons requested to assist it in its
director of the Legislative Coordinating Commission shall assist the commission in
administrative matters. The commission shall elect cochairs, one member of the house
representatives and one member of the senate from among the committee and subcommittee
chairs named to the commission. The commission members from the house of representatives
shall elect the house of representatives cochair, and the commission members from
senate shall elect the senate cochair.
169.18EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2016, section 16B.323, is amended to read:
169.2016B.323 SOLAR ENERGY IN STATE BUILDINGS.
Subdivision 1. Definitions.
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Made in Minnesota" means the manufacture in this state of:
169.24 (1) components of a solar thermal system certified by the Solar Rating and Certification
169.25 Corporation; or
169.26 (2) solar photovoltaic modules that:
169.27 (i) are manufactured at a manufacturing facility in Minnesota that is registered and
169.28 authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory,
169.29 CSA International, Intertek, or an equivalent independent testing agency;
169.30 (ii) bear certification marks from Underwriters Laboratory, CSA International, Intertek,
169.31 or an equivalent independent testing agency; and
170.1 (iii) meet the requirements of section
116C.7791, subdivision 3 , paragraph (a), clauses
170.2 (1), (5), and (6).
170.3 For the purposes of clause (2), "manufactured" has the meaning given in section
170.4 116C.7791, subdivision 1
, paragraph (b), clauses (1) and (2).
170.5 (c) (b)
"Major renovation" means a substantial addition to an existing building, or a
substantial change to the interior configuration or the energy system of an existing
"Solar energy system" means
alone or installed
in conjunction with a solar thermal system.
(e) "Solar Photovoltaic module (d) "Photovoltaic device
" has the meaning given in
116C.7791, subdivision 1 , paragraph (e) 216C.06, subdivision 16
"Solar thermal system" has the meaning given "qualifying solar thermal project"
216B.2411, subdivision 2
, paragraph (e).
"State building" means a building whose construction or renovation is paid wholly
or in part by the state from the bond proceeds fund.
Subd. 2. Solar energy system.
(a) As provided in paragraphs (b) and (c), a project for
the construction or major renovation of a state building, after the completion of
analysis, may include installation of
"Made in Minnesota"
solar energy systems of
kilowatts capacity on, adjacent, or in proximity to the state building.
(b) The capacity of a solar energy
system must be less than
kilowatts to the extent
necessary to match the electrical load of the building,
to the extent the capacity must be
170.21no more than
necessary to keep the costs for the installation below the five percent maximum
set by paragraph (c).
(c) The cost of the solar energy
system must not exceed five percent of the appropriations
from the bond proceeds fund for the construction or renovation of the state building.
and installation of a solar thermal system may account for no more than 25 percent
cost of a solar energy
(d) A project subject to this section is ineligible to receive a rebate for the installation
of a solar energy system under section
or from any utility.
170.29EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2016, section 116C.779, subdivision 1, is amended to read:
Subdivision 1. Renewable development account.
(a) The renewable development
171.3account is established as a separate account in the special revenue fund in the state
171.4Appropriations and transfers to the account shall be credited to the account. Earnings,
171.5as interest, dividends, and any other earnings arising from assets of the account,
171.6credited to the account. Funds remaining in the account at the end of a fiscal year
171.7canceled to the general fund but remain in the account until expended. The account
171.8be administered by the commissioner of management and budget as provided under this
171.10(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
171.11plant must transfer all funds in the renewable development account previously established
171.12under this subdivision and managed by the public utility to the renewable development
171.13account established in paragraph (a). Funds awarded to grantees in previous grant
171.14that have not yet been expended and unencumbered funds required to be paid in calendar
171.15year 2017 under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not
171.16to transfer under this paragraph.
171.17 (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
171.18each January 15 thereafter,
the public utility that owns the Prairie Island nuclear generating
plant must transfer to
a renewable development the renewable development
each year for each dry cask containing spent fuel that is located at the Prairie Island
plant for each year the plant is in operation, and $7,500,000 each year the plant
is not in
operation if ordered by the commission pursuant to paragraph
. The fund transfer must
be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage
at Prairie Island for any part of a year.
(b) (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
171.26each January 15 thereafter,
the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each
cask containing spent fuel that is located at the Monticello nuclear power plant for
year the plant is in operation, and $5,250,000 each year the plant is not in operation
by the commission pursuant to paragraph
. The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello
any part of a year.
172.1 (e) Each year, the public utility shall withhold from the funds transferred to the
172.2development account under paragraphs (c) and (d) the amount necessary to pay its obligations
172.3under paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar
172.4 (f) If the commission approves a new or amended power purchase agreement, the
172.5termination of a power purchase agreement, or the purchase and closure of a facility
172.6section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate
172.7the public utility subject to this section shall enter into a contract with the city
in which the
172.8poultry litter plant is located to provide grants to the city for the purposes of
172.9development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000
172.10fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall
172.11by the public utility from funds withheld from the transfer to the renewable development
172.12account, as provided in paragraphs (b) and (e).
172.13(g) If the commission approves a new or amended power purchase agreement, or the
172.14termination of a power purchase agreement under section 216B.2424, subdivision 9,
172.15an entity owned or controlled, directly or indirectly, by two municipal utilities
172.16of Constitutional Route No. 8, that was previously used to meet the biomass mandate
172.17section 216B.2424, the public utility that owns a nuclear generating plant shall enter
172.18grant contract with such entity to provide $6,800,000 per year for five years, commencing
172.1930 days after the commission approves the new or amended power purchase agreement,
172.20the termination of the power purchase agreement, and on each June 1 thereafter through
172.212021, to assist the transition required by the new, amended, or terminated power purchase
172.22agreement. The grant shall be paid by the public utility from funds withheld from
172.23to the renewable development account as provided in paragraphs (b) and (e).
172.24(h) The collective amount paid under the grant contracts awarded under paragraphs
172.25and (g) is limited to the amount deposited into the renewable development account,
172.26predecessor, the renewable development account, established under this section, that
172.27not required to be deposited into the account under Laws 1994, chapter 641, article
After discontinuation of operation of the Prairie Island nuclear plant or the
Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at
discontinued facility, the commission shall require the public utility to pay $7,500,000
the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
facility for any year in which the commission finds, by the preponderance of the evidence,
that the public utility did not make a good faith effort to remove the spent nuclear
at the facility to a permanent or interim storage site out of the state. This determination
be made at least every two years.
Funds in the account may be expended only for any of the following purposes:
to increase the market penetration within the state of renewable electric energy
173.5 resources at reasonable costs;
173.6 (2) to promote the start-up, expansion, and attraction of renewable electric energy
173.7 and companies within the state;
to stimulate research and development
within the state into of
173.10 (4) to develop near-commercial and demonstration scale renewable electric projects
173.11 near-commercial and demonstration scale electric infrastructure delivery projects
173.12 delivery projects enhance the delivery of renewable electric energy
173.13(2) to encourage grid modernization, including, but not limited to, projects that
173.14electricity storage, load control, and smart meter technology; and
173.15(3) to stimulate other innovative energy projects that reduce demand and increase
173.16efficiency and flexibility
173.17Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
173.18from the utility that owns a nuclear-powered electric generating plant in this state
173.19Prairie Island Indian community or its members.
The utility that owns a nuclear generating plant is eligible to apply for
grants under this subdivision
173.22(k) For the purposes of paragraph (j), the following terms have the meanings given:
173.23 (1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
173.24(c), clauses (1), (2), (4), and (5); and
173.25 (2) "grid modernization" means:
173.26(i) enhancing the reliability of the electrical grid;
173.27(ii) improving the security of the electrical grid against cyberthreats and physical
173.29(iii) increasing energy conservation opportunities by facilitating communication between
173.30the utility and its customers through the use of two-way meters, control technologies,
174.1storage and microgrids, technologies to enable demand response, and other innovative
(e) Expenditures authorized by this subdivision from the account may be made only
174.4 after approval by order of the Public Utilities Commission upon a petition by the
174.5 utility. The commission may approve proposed expenditures, may disapprove proposed
174.6 expenditures that it finds to be not in compliance with this subdivision or otherwise
174.7 the public interest, and may, if agreed to by the public utility, modify proposed
174.8 The commission may approve reasonable and necessary expenditures for administering
174.9 account in an amount not to exceed five percent of expenditures. Commission approval
174.10 not required for expenditures required under subdivisions 2 and 3, section
116C.7791 , or
174.11 other law.
174.12 (f) The account shall be managed by the public utility but the public utility must
174.13 about account expenditures with an (l) A renewable development account
that includes, among others, representatives of the public utility and
its ratepayers, and
174.15includes at least one representative of the Prairie Island Indian community appointed
174.16that community's tribal council, shall develop recommendations on account expenditures
The commission may require that other interests be represented on the advisory group.
advisory group must
be consulted with respect to the general scope of expenditures in
174.19 designing design
a request for proposal and
in evaluating evaluate
projects submitted in
response to a request for proposals.
In addition to consulting with
The advisory group
174.21 public utility
must utilize an independent third-party expert to evaluate proposals submitted
in response to a request for proposal, including all proposals made by the public
request for proposal for research and development under paragraph
may be limited to or include a request to higher education institutions located in
for multiple projects authorized under paragraph
. The request for
multiple projects may include a provision that exempts the projects from the third-party
expert review and instead provides for project evaluation and selection by a merit
review grant system.
The utility should attempt to reach agreement with the advisory group
174.29 after consulting with it but the utility has full and sole authority to determine which
174.30 expenditures shall be submitted to the commission for commission approval .
In the process
of determining request for proposal scope and subject and in evaluating responses
for proposals, the
public utility advisory group
must strongly consider, where reasonable,
potential benefit to Minnesota citizens and businesses and the utility's ratepayers.
174.34(m) The advisory group shall submit funding recommendations to the public utility,
174.35which has full and sole authority to determine which expenditures shall be submitted
175.1the advisory group to the legislature. The commission may approve proposed expenditures,
175.2may disapprove proposed expenditures that it finds not to be in compliance with this
175.3subdivision or otherwise not in the public interest, and may, if agreed to by the
175.4modify proposed expenditures. The commission shall, by order, submit its funding
175.5recommendations to the legislature as provided under paragraph (n).
(g) Funds in (n) The commission shall present its recommended appropriations from
175.7the account to the senate and house of representatives committees with jurisdiction
175.8energy policy and finance annually by February 15. Expenditures from
175.9 not must
the legislature by a
enacted after January 1, 2012,
175.10 and unless appropriated by a law enacted prior to that date may be expended only pursuant
175.11 to an order of the commission according to this subdivision
. In enacting appropriations from
175.12the account, the legislature:
175.13(1) may approve or disapprove, but may not modify, the amount of an appropriation
175.14a project recommended by the commission; and
175.15(2) may not appropriate money for a project the commission has not recommended
A request for proposal for renewable energy generation projects must, when
feasible and reasonable, give preference to projects that are most cost-effective
for a particular
public utility advisory group
must annually, by February 15, report to the
chairs and ranking minority members of the legislative committees with jurisdiction
energy policy on projects funded by the account for the prior year and all previous
The report must, to the extent possible and reasonable, itemize the actual and projected
financial benefit to the public utility's ratepayers of each project.
175.25(p) By February 1, 2018, and each February 1 thereafter, the commissioner of
175.26management and budget shall submit a written report regarding the availability of
175.27and obligations of the account to the chairs and ranking minority members of the senate
175.28and house committees with jurisdiction over energy policy and finance, the public
175.29and the advisory group.
A project receiving funds from the account must produce a written final report
that includes sufficient detail for technical readers and a clearly written summary
nontechnical readers. The report must include an evaluation of the project's financial,
environmental, and other benefits to the state and the public utility's ratepayers.
Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public Web site designated by the
176.3commissioner of commerce
All final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development
, noting that the
is financed by the public utility's ratepayers.
176.7(t) Of the amount in the renewable development account, priority must be given to
176.8making the payments required under section 216C.417.
176.9EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 4. Minnesota Statutes 2016, section 116C.7792, is amended to read:
176.11116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
The utility subject to section
shall operate a program to provide solar energy
production incentives for solar energy systems of no more than a total nameplate capacity
of 20 kilowatts direct current. The program shall be operated for
calendar years commencing in 2014. $5,000,000 shall be allocated
each of the
years, $15,000,000 in the fifth year, $10,000,000 in each of the sixth and seventh
176.17years, and $5,000,000 in the eighth year
from funds withheld from transfer to
established in section
116C.779 to a separate under section 116C.779,
176.19subdivision 1, paragraphs (b) and (e), and placed in a separate
account for the purpose of
the solar production incentive program. The solar system must be sized to less than
percent of the customer's on-site annual energy consumption. The production incentive
must be paid for ten years commencing with the commissioning of the system. The utility
must file a plan to operate the program with the commissioner of commerce. The utility
may not operate the program until it is approved by the commissioner.
176.25EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 5. Minnesota Statutes 2016, section 216B.164, subdivision 2, is amended to read:
Subd. 2. Applicability; rights maintained. (a)
This section as well as any rules
promulgated by the commission to implement this section or the Public Utility Regulatory
Policies Act of 1978, Public Law 95-617, Statutes at Large, volume 92, page 3117,
and the Federal Energy Regulatory Commission regulations thereunder, Code of
Federal Regulations, title 18, part 292, as amended,
shall, unless otherwise provided in this
section, apply to all Minnesota electric utilities, including cooperative electric
and municipal electric utilities.
177.3(b) Nothing in this section shall be construed to alter the rights and duties of any
177.4pursuant to the Public Utility Regulatory Policies Act of 1978, Public Law 95-617,
177.5at Large, volume 92, page 3117, as amended, and the Federal Energy Regulatory Commission
177.6regulations thereunder, Code of Federal Regulations, title 18, part 292, as amended.
Sec. 6. Minnesota Statutes 2016, section 216B.164, subdivision 5, is amended to read:
Subd. 5. Dispute; resolution. (a)
In the event of disputes between
an electric a public
utility and a qualifying facility, either party may request a determination of the
issue by the
commission. In any such determination, the burden of proof shall be on the public
The commission in its order resolving each such dispute shall require payments to
prevailing party of the prevailing party's costs, disbursements, and reasonable attorneys'
fees, except that the qualifying facility will be required to pay the costs, disbursements,
attorneys' fees of the public
utility only if the commission finds that the claims of the
qualifying facility in the dispute have been made in bad faith, or are a sham, or
177.16(b) Notwithstanding subdivisions 9 and 11, a qualifying facility over 20 megawatts
177.17until December 31, 2022, request that the commission resolve a dispute with any utility,
177.18including a cooperative electric association or municipal utility, under paragraph
177.19EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 7. Minnesota Statutes 2016, section 216B.164, subdivision 9, is amended to read:
Subd. 9. Municipal electric utility.
For purposes of this section only
, except subdivision
and with respect to municipal electric utilities only, the term "commission" means
governing body of each municipal electric utility that adopts and has in effect rules
implementing this section which are consistent with the rules adopted by the Minnesota
Public Utilities Commission under subdivision 6. As used in this subdivision, the
body of a municipal electric utility means the city council of that municipality;
if another board, commission, or body is empowered by law or resolution of the city
or by its charter to establish and regulate rates and days for the distribution of
within the service area of the city, that board, commission, or body shall be considered
governing body of the municipal electric utility.
177.31EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2016, section 216B.164, is amended by adding a subdivision
178.3 Subd. 11. Cooperative electric association. (a) For purposes of this section only, the
178.4term "commission" means the board of directors of a cooperative association that (1)
178.5by resolution, to assume the authority delegated to the Public Utilities Commission
178.6cooperative electric associations under this section, and (2) adopts and has in effect
178.7implementing this section. The rules must provide for a process to resolve disputes
178.8arise under this section, and must include a provision that a request by either party
178.9mediation of the dispute by an independent third party must be implemented in accordance
178.10with paragraph (b). A cooperative electric association that has adopted a resolution
178.11rules under this subdivision is exempt from regulation by the Public Utilities Commission
178.12under this section.
178.13(b) In the event of a dispute between a cooperative electric association and one or
178.14of its members, either party may request mediation of the dispute only after all attempts
178.15settle the dispute under the cooperative electric association's dispute resolution
178.16been exhausted. The parties must mutually agree upon the selection of a mediator,
178.17must be listed on the roster of neutrals for civil matters established by the state
178.18administrator under Rule 114.12 of Minnesota's General Rules of Practice for the District
178.19Courts. The cooperative electric association shall pay 90 percent of the cost of mediation,
178.20and the member or members who initiated the dispute shall pay ten percent of the cost
178.22(c) Except as provided in paragraph (d), any proceedings concerning the activities
178.23cooperative electric association under this section that are pending at the Public
178.24Commission on the effective date of this section are terminated on that date.
178.25(d) The Public Utilities Commission may complete its investigation in Docket No. 16-512
178.26to assess whether the methodology used by cooperative associations to establish a
178.27section 216B.164, subdivision 3, paragraph (a), complies with state law if the commission
178.28determines that completing the investigation is necessary to protect the public interest,
178.29which case it shall complete the investigation no later than December 31, 2017. A
178.30methodology that the commission determines complies with state law may not be challenged
178.31in a dispute under this section. If the commission determines that a methodology does
178.32comply with state law, it shall clearly state the changes necessary to bring the methodology
178.33into compliance, and a cooperative electric association shall modify its methodology
178.34accordance with the commission's directives.
179.1(e) For a cooperative electric association that elects to operate under the provisions
179.2paragraph (a), disputes arising under this section subsequent to a cooperative electric
179.3association's modification of its methodology under paragraph (d) shall be addressed
179.4the cooperative association's rules and paragraph (b), as applicable.
179.5EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2016, section 216B.1691, subdivision 2f, is amended to read:
Subd. 2f. Solar energy standard.
(a) In addition to the requirements of subdivisions 2a
and 2b, each public utility shall generate or procure sufficient electricity generated
energy to serve its retail electricity customers in Minnesota so that by the end of
least 1.5 percent of the utility's total retail electric sales to retail customers
in Minnesota is
generated by solar energy.
179.12(b) For a public utility with more than 200,000 retail electric customers,
at least ten
percent of the 1.5 percent goal must be met by solar energy generated by or procured
solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less.
179.15(c) A public utility with between 50,000 and 200,000 retail electric customers:
179.16(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated
179.17or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts
179.19(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
179.20of 40 kilowatts or less to a community solar garden program operated by the public
179.21that has been approved by the commission.
The solar energy standard established in this subdivision is subject to all the
provisions of this section governing a utility's standard obligation under subdivision
It is an energy goal of the state of Minnesota that, by 2030, ten percent of the
retail electric sales in Minnesota be generated by solar energy.
For the purposes of calculating the total retail electric sales of a public utility
under this subdivision, there shall be excluded retail electric sales to customers
(1) an iron mining extraction and processing facility, including a scram mining facility
as defined in Minnesota Rules, part 6130.0100, subpart 16; or
(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
Those customers may not have included in the rates charged to them by the public utility
any costs of satisfying the solar standard specified by this subdivision.
A public utility may not use energy used to satisfy the solar energy standard under
this subdivision to satisfy its standard obligation under subdivision 2a. A public
not use energy used to satisfy the standard obligation under subdivision 2a to satisfy
solar standard under this subdivision.
Notwithstanding any law to the contrary, a solar renewable energy credit associated
with a solar photovoltaic device installed and generating electricity in Minnesota
August 1, 2013, but before 2020 may be used to meet the solar energy standard established
under this subdivision.
Beginning July 1, 2014, and each July 1 through 2020, each public utility shall
file a report with the commission reporting its progress in achieving the solar energy
established under this subdivision.
180.14EFFECTIVE DATE.This section is effective July 1, 2017.
Sec. 10. Minnesota Statutes 2016, section 216B.1694, subdivision 3, is amended to read:
Subd. 3. Staging and permitting.
(a) A natural gas-fired plant that is located on one
site designated as an innovative energy project site under subdivision 1, clause (3),
accorded the regulatory incentives granted to an innovative energy project under subdivision
2, clauses (1) to (3), and may exercise the authorities therein.
(b) Following issuance of a final state or federal environmental impact statement
innovative energy project that was a subject of contested case proceedings before
administrative law judge:
(1) site and route permits and water appropriation approvals for an innovative energy
project must also be deemed valid for a plant meeting the requirements of paragraph
and shall remain valid until the
of (i) four years from the date the final required
state or federal preconstruction permit is issued or (ii) June 30,
(2) no air, water, or other permit issued by a state agency that is necessary for
an innovative energy project may be the subject of contested case hearings, notwithstanding
Minnesota Rules, parts 7000.1750 to 7000.2200.
Sec. 11. Minnesota Statutes 2016, section 216B.241, subdivision 1b, is amended to read:
Subd. 1b. Conservation improvement by cooperative association or municipality.
(a) This subdivision applies to:
(1) a cooperative electric association that provides retail service to
its more than 5,000
(2) a municipality that provides electric service to more than 1,000
retail customers; and
(3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales
to natural gas
(b) Each cooperative electric association and municipality subject to this subdivision
shall spend and invest for energy conservation improvements under this subdivision
(1) for a municipality, 0.5 percent of its gross operating revenues from the sale
and 1.5 percent of its gross operating revenues from the sale of electricity, excluding
operating revenues from electric and gas service provided in the state to large electric
customer facilities; and
(2) for a cooperative electric association, 1.5 percent of its gross operating revenues
from service provided in the state, excluding gross operating revenues from service
in the state to large electric customer facilities indirectly through a distribution
(c) Each municipality and cooperative electric association subject to this subdivision
shall identify and implement energy conservation improvement spending and investments
that are appropriate for the municipality or association, except that a municipality
association may not spend or invest for energy conservation improvements that directly
benefit a large energy facility or a large electric customer facility for which the
has issued an exemption under subdivision 1a, paragraph (b).
(d) Each municipality and cooperative electric association subject to this subdivision
may spend and invest annually up to ten percent of the total amount required to be
and invested on energy conservation improvements under this subdivision on research
development projects that meet the definition of energy conservation improvement in
subdivision 1 and that are funded directly by the municipality or cooperative electric
(e) Load-management activities may be used to meet 50 percent of the conservation
investment and spending requirements of this subdivision.
(f) A generation and transmission cooperative electric association that provides energy
services to cooperative electric associations that provide electric service at retail
may invest in energy conservation improvements on behalf of the associations it serves
may fulfill the conservation, spending, reporting, and energy-savings goals on an
basis. A municipal power agency or other not-for-profit entity that provides energy
to municipal utilities that provide electric service at retail may invest in energy
improvements on behalf of the municipal utilities it serves and may fulfill the conservation,
spending, reporting, and energy-savings goals on an aggregate basis, under an agreement
between the municipal power agency or not-for-profit entity and each municipal utility
funding the investments.
(g) Each municipality or cooperative shall file energy conservation improvement plans
by June 1 on a schedule determined by order of the commissioner, but at least every
years. Plans received by June 1 must be approved or approved as modified by the
commissioner by December 1 of the same year. The municipality or cooperative shall
provide an evaluation to the commissioner detailing its energy conservation improvement
spending and investments for the previous period. The evaluation must briefly describe
each conservation program and must specify the energy savings or increased efficiency
the use of energy within the service territory of the utility or association that
is the result of
the spending and investments. The evaluation must analyze the cost-effectiveness of
utility's or association's conservation programs, using a list of baseline energy
savings assumptions developed in consultation with the department. The commissioner
shall review each evaluation and make recommendations, where appropriate, to the
municipality or association to increase the effectiveness of conservation improvement
(h) MS 2010 [Expired, 1Sp2003 c 11 art 3 s 4; 2007 c 136 art 2 s 5]
182.26 (i) (h)
The commissioner shall consider and may require a utility, association, or other
entity providing energy efficiency and conservation services under this section to
a program suggested by an outside source, including a political subdivision, nonprofit
corporation, or community organization.
182.30EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 12. Minnesota Statutes 2016, section 216B.241, subdivision 1c, is amended to read:
Subd. 1c. Energy-saving goals.
(a) The commissioner shall establish energy-saving
goals for energy conservation improvement expenditures and shall evaluate an energy
conservation improvement program on how well it meets the goals set.
(b) Each individual utility and association shall have an annual energy-savings goal
equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
commissioner under paragraph (d). The savings goals must be calculated based on the
recent three-year weather-normalized average. A utility or association may elect to
forward energy savings in excess of 1.5 percent for a year to the succeeding three
years, except that savings from electric utility infrastructure projects allowed under
(d) may be carried forward for five years. A particular energy savings can be used
one year's goal.
(c) The commissioner must adopt a filing schedule that is designed to have all utilities
and associations operating under an energy-savings plan by calendar year 2010.
(d) In its energy conservation improvement plan filing, a utility or association may
request the commissioner to adjust its annual energy-savings percentage goal based
historical conservation investment experience, customer class makeup, load growth,
conservation potential study, or other factors the commissioner determines warrants
adjustment. The commissioner may not approve a plan of a public utility that provides
an annual energy-savings goal of less than one percent of gross annual retail energy
from energy conservation improvements.
A utility or association may include in its energy conservation plan energy savings
electric utility infrastructure projects approved by the commission under section
or waste heat recovery converted into electricity projects that may count as energy
in addition to a minimum energy-savings goal of at least one percent for energy conservation
improvements. Energy savings from electric utility infrastructure projects, as defined
, may be included in the energy conservation plan of a municipal utility
or cooperative electric association. Electric utility infrastructure projects must
increased energy efficiency greater than that which would have occurred through normal
(e) An energy-savings goal is not satisfied by attaining the revenue expenditure
requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
energy-savings goal established in this subdivision.
(f) An association or utility is not required to make energy conservation investments
attain the energy-savings goals of this subdivision that are not cost-effective even
investment is necessary to attain the energy-savings goals. For the purpose of this
in determining cost-effectiveness, the commissioner shall consider the costs and benefits
to ratepayers, the utility, participants, and society. In addition, the commissioner
consider the rate at which an association or municipal utility is increasing its energy
and its expenditures on energy conservation.
(g) On an annual basis, the commissioner shall produce and make publicly available
report on the annual energy savings and estimated carbon dioxide reductions achieved
the energy conservation improvement programs for the two most recent years for which
data is available. The commissioner shall report on program performance both in the
aggregate and for each entity filing an energy conservation improvement plan for approval
or review by the commissioner.
(h) By January 15, 2010, the commissioner shall report to the legislature whether
spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.
184.12(i) This subdivision does not apply to:
184.13(1) a cooperative electric association with fewer than 5,000 members;
184.14(2) a municipal utility with fewer than 1,000 retail electric customers; or
184.15(3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput
184.16to retail natural gas customers.
184.17EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 13. Minnesota Statutes 2016, section 216B.241, subdivision 1d, is amended to read:
Subd. 1d. Technical assistance.
(a) The commissioner shall evaluate energy conservation
improvement programs on the basis of cost-effectiveness and the reliability of the
technologies employed. The commissioner shall, by order, establish, maintain, and
energy-savings assumptions that must be used when filing energy conservation improvement
programs. The commissioner shall establish an inventory of the most effective energy
conservation programs, techniques, and technologies, and encourage all Minnesota utilities
to implement them, where appropriate, in their service territories. The commissioner
describe these programs in sufficient detail to provide a utility reasonable guidance
concerning implementation. The commissioner shall prioritize the opportunities in
potential energy savings and in order of cost-effectiveness. The commissioner may
with a third party to carry out any of the commissioner's duties under this subdivision,
to obtain technical assistance to evaluate the effectiveness of any conservation improvement
program. The commissioner may assess up to $850,000 annually for the purposes of this
subdivision. The assessments must be deposited in the state treasury and credited
energy and conservation account created under subdivision 2a. An assessment made under
this subdivision is not subject to the cap on assessments provided by section
any other law.
(b) Of the assessment authorized under paragraph (a), the commissioner may expend
up to $400,000 annually for the purpose of developing, operating, maintaining, and
technical support for a uniform electronic data reporting and tracking system available
all utilities subject to this section, in order to enable accurate measurement of
the cost and
energy savings of the energy conservation improvements required by this section. This
paragraph expires June 30,
2017, and may be used for no more than three annual assessments
185.9 occurring prior to that date 2018
185.10EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 14. Minnesota Statutes 2016, section 216B.241, subdivision 2, is amended to read:
Subd. 2. Programs.
(a) The commissioner may require public utilities to make
investments and expenditures in energy conservation improvements, explicitly setting
the interest rates, prices, and terms under which the improvements must be offered
customers. The required programs must cover no more than a three-year period. Public
utilities shall file conservation improvement plans by June 1, on a schedule determined
order of the commissioner, but at least every three years. Plans received by a public
by June 1 must be approved or approved as modified by the commissioner by December
of that same year. The commissioner shall evaluate the program on the basis of
cost-effectiveness and the reliability of technologies employed. The commissioner's
must provide to the extent practicable for a free choice, by consumers participating
program, of the device, method, material, or project constituting the energy conservation
improvement and for a free choice of the seller, installer, or contractor of the energy
conservation improvement, provided that the device, method, material, or project seller,
installer, or contractor is duly licensed, certified, approved, or qualified, including
the residential conservation services program, where applicable.
(b) The commissioner may require a utility subject to subdivision 1c
to make an energy
conservation improvement investment or expenditure whenever the commissioner finds
that the improvement will result in energy savings at a total cost to the utility
less than the
cost to the utility to produce or purchase an equivalent amount of new supply of energy.
The commissioner shall nevertheless ensure that every public utility operate one or
programs under periodic review by the department.
(c) Each public utility subject to subdivision 1a may spend and invest annually up
percent of the total amount required to be spent and invested on energy conservation
improvements under this section by the utility on research and development projects
meet the definition of energy conservation improvement in subdivision 1 and that are
directly by the public utility.
(d) A public utility may not spend for or invest in energy conservation improvements
that directly benefit a large energy facility or a large electric customer facility
for which the
commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The
commissioner shall consider and may require a utility to undertake a program suggested
an outside source, including a political subdivision, a nonprofit corporation, or
(e) A utility, a political subdivision, or a nonprofit or community organization that
suggested a program, the attorney general acting on behalf of consumers and small
interests, or a utility customer that has suggested a program and is not represented
attorney general under section
may petition the commission to modify or revoke a
department decision under this section, and the commission may do so if it determines
the program is not cost-effective, does not adequately address the residential conservation
improvement needs of low-income persons, has a long-range negative effect on one or
classes of customers, or is otherwise not in the public interest. The commission shall
a petition that, on its face, fails to make a reasonable argument that a program is
not in the
(f) The commissioner may order a public utility to include, with the filing of the
annual status report, the results of an independent audit of the utility's conservation
improvement programs and expenditures performed by the department or an auditor with
experience in the provision of energy conservation and energy efficiency services
by the commissioner and chosen by the utility. The audit must specify the energy savings
or increased efficiency in the use of energy within the service territory of the utility
the result of the spending and investments. The audit must evaluate the cost-effectiveness
of the utility's conservation programs.
(g) A gas utility may not spend for or invest in energy conservation improvements
directly benefit a large customer facility or commercial gas customer facility for
commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c),
(e). The commissioner shall consider and may require a utility to undertake a program
suggested by an outside source, including a political subdivision, a nonprofit corporation,
or a community organization.
186.34EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 15. Minnesota Statutes 2016, section 216B.241, subdivision 5, is amended to read:
Subd. 5. Efficient lighting program.
(a) Each public utility, cooperative electric
association, and municipal utility that provides electric service to retail customers and is
187.4subject to subdivision 1c
shall include as part of its conservation improvement activities a
program to strongly encourage the use of fluorescent and high-intensity discharge
The program must include at least a public information campaign to encourage use of
lamps and proper management of spent lamps by all customer classifications.
(b) A public utility that provides electric service at retail to 200,000 or more customers
shall establish, either directly or through contracts with other persons, including
manufacturers, distributors, wholesalers, and retailers and local government units,
to collect for delivery to a reclamation or recycling facility spent fluorescent and
high-intensity discharge lamps from households and from small businesses as defined
that generate an average of fewer than ten spent lamps per year.
(c) A collection system must include establishing reasonably convenient locations
collecting spent lamps from households and financial incentives sufficient to encourage
spent lamp generators to take the lamps to the collection locations. Financial incentives
include coupons for purchase of new fluorescent or high-intensity discharge lamps,
back system, or any other financial incentive or group of incentives designed to collect
maximum number of spent lamps from households and small businesses that is reasonably
(d) A public utility that provides electric service at retail to fewer than 200,000
a cooperative electric association, or a municipal utility that provides electric
retail to customers may establish a collection system under paragraphs (b) and (c)
of conservation improvement activities required under this section.
(e) The commissioner of the Pollution Control Agency may not, unless clearly required
by federal law, require a public utility, cooperative electric association, or municipality
establishes a household fluorescent and high-intensity discharge lamp collection system
under this section to manage the lamps as hazardous waste as long as the lamps are
to avoid breakage and are delivered to a recycling or reclamation facility that removes
mercury and other toxic materials contained in the lamps prior to placement of the
in solid waste.
(f) If a public utility, cooperative electric association, or municipal utility contracts
a local government unit to provide a collection system under this subdivision, the
must provide for payment to the local government unit of all the unit's incremental
collecting and managing spent lamps.
(g) All the costs incurred by a public utility, cooperative electric association,
utility for promotion and collection of fluorescent and high-intensity discharge lamps
this subdivision are conservation improvement spending under this section.
188.6EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 16. Minnesota Statutes 2016, section 216B.241, subdivision 5d, is amended to read:
Subd. 5d. On-bill repayment programs.
(a) For the purposes of this subdivision:
(1) "utility" means a public utility, municipal utility, or cooperative electric association
188.10subject to subdivision 1c
that provides electric or natural gas service to retail customers;
(2) "on-bill repayment program" means a program in which a utility collects on a
customer's bill repayment of a loan to the customer by an eligible lender to finance
customer's investment in eligible energy conservation or renewable energy projects,
remits loan repayments to the lender.
(b) A utility may include as part of its conservation improvement plan an on-bill
repayment program to enable a customer to finance eligible projects with installment
originated by an eligible lender. An eligible project is one that is either an energy
improvement, or a project installed on the customer's site that uses an eligible renewable
energy source as that term is defined in section
216B.2411, subdivision 2
, paragraph (b),
but does not include mixed municipal solid waste or refuse-derived fuel from mixed
municipal solid waste. An eligible renewable energy source also includes solar thermal
technology that collects the sun's radiant energy and uses that energy to heat or
cool air or
water, and meets the requirements of section
. To be an eligible lender, a lender
(1) have a federal or state charter and be eligible for federal deposit insurance;
(2) be a government entity, including an entity established under chapter 469, that
authority to provide financial assistance for energy efficiency and renewable energy
(3) be a joint venture by utilities established under section
(4) be licensed, certified, or otherwise have its lending activities overseen by a
federal government agency.
The commissioner must allow a utility broad discretion in designing and implementing
on-bill repayment program, provided that the program complies with this subdivision.
(c) A utility may establish an on-bill repayment program for all customer classes
a specific customer class.
(d) A public utility that implements an on-bill repayment program under this subdivision
must enter into a contract with one or more eligible lenders that complies with the
requirements of this subdivision and contains provisions addressing capital commitments,
loan origination, transfer of loans to the public utility for on-bill repayment, and
of loans returned due to delinquency or default.
(e) A public utility's contract with a lender must require the lender to comply with
applicable federal and state laws, rules, and regulations related to lending practices
consumer protection; to conform to reasonable and prudent lending standards; and to
businesses that sell, maintain, and install eligible projects the ability to participate
on-bill repayment program under this subdivision on a nondiscriminatory basis.
(f) A public utility's contract with a lender may provide:
(1) for the public utility to purchase loans from the lender with a condition that
must purchase back loans in delinquency or default; or
(2) for the lender to retain ownership of loans with the public utility servicing
through on-bill repayment as long as payments are current.
The risk of default must remain with the lender. The lender shall not have recourse
the public utility except in the event of negligence or breach of contract by the
(g) If a public utility customer makes a partial payment on a utility bill that includes
loan installment, the partial payment must be credited first to the amount owed for
service, including taxes and fees. A public utility may not suspend or terminate a
utility service for delinquency or default on a loan that is being serviced through
utility's on-bill repayment program.
(h) An outstanding balance on a loan being repaid under this subdivision is a financial
obligation only of the customer who is signatory to the loan, and not to any subsequent
customer occupying the property associated with the loan. If the public utility purchases
loans from the lender as authorized under paragraph (f), clause (1), the public utility
return to the lender a loan not repaid when a customer borrower no longer occupies
(i) Costs incurred by a public utility under this subdivision are recoverable as provided
216B.16, subdivision 6b
, paragraph (c), including reasonable incremental costs
for billing system modifications necessary to implement and operate an on-bill repayment
program and for ongoing costs to operate the program. Costs in a plan approved by
commissioner may be counted toward a utility's conservation spending requirements
subdivisions 1a and 1b. Energy savings from energy conservation improvements resulting
from this section may be counted toward satisfying a utility's energy-savings goals
(j) This subdivision does not require a utility to terminate or modify an existing
program and does not prohibit a utility from establishing an on-bill financing program
which the utility provides the financing capital.
(k) A municipal utility or cooperative electric association that implements an on-bill
repayment program shall design the program to address the issues identified in paragraphs
(d) through (h) as determined by the governing board of the utility or association.
190.15EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 17. Minnesota Statutes 2016, section 216B.241, subdivision 7, is amended to read:
Subd. 7. Low-income programs.
(a) The commissioner shall ensure that each utility
and association subject to subdivision 1c
provides low-income programs. When approving
spending and energy-savings goals for low-income programs, the commissioner shall
consider historic spending and participation levels, energy savings for low-income
and the number of low-income persons residing in the utility's service territory.
utility that furnishes gas service must spend at least 0.2 percent, and a public utility
gas service must spend at least 0.4 percent, of its most recent three-year average
operating revenue from residential customers in the state on low-income programs.
or association that furnishes electric service must spend at least 0.1 percent of
operating revenue from residential customers in the state on low-income programs.
generation and transmission cooperative association, this requirement shall apply
association's members' aggregate gross operating revenue from sale of electricity
customers in the state. Beginning in 2010, a utility or association that furnishes
service must spend 0.2 percent of its gross operating revenue from residential customers
the state on low-income programs.
(b) To meet the requirements of paragraph (a), a utility or association may contribute
money to the energy and conservation account. An energy conservation improvement plan
must state the amount, if any, of low-income energy conservation improvement funds
utility or association will contribute to the energy and conservation account. Contributions
must be remitted to the commissioner by February 1 of each year.
(c) The commissioner shall establish low-income programs to utilize money contributed
to the energy and conservation account under paragraph (b). In establishing low-income
programs, the commissioner shall consult political subdivisions, utilities, and nonprofit
community organizations, especially organizations engaged in providing energy and
weatherization assistance to low-income persons. Money contributed to the energy and
conservation account under paragraph (b) must provide programs for low-income persons,
including low-income renters, in the service territory of the utility or association
the money. The commissioner shall record and report expenditures and energy savings
achieved as a result of low-income programs funded through the energy and conservation
account in the report required under subdivision 1c, paragraph (g). The commissioner
contract with a political subdivision, nonprofit or community organization, public
municipality, or cooperative electric association to implement low-income programs
through the energy and conservation account.
(d) A utility or association may petition the commissioner to modify its required
under paragraph (a) if the utility or association and the commissioner have been unable
expend the amount required under paragraph (a) for three consecutive years.
(e) The costs and benefits associated with any approved low-income gas or electric
conservation improvement program that is not cost-effective when considering the costs
and benefits to the utility may, at the discretion of the utility, be excluded from
of net economic benefits for purposes of calculating the financial incentive to the
The energy and demand savings may, at the discretion of the utility, be applied toward
calculation of overall portfolio energy and demand savings for purposes of determining
progress toward annual goals and in the financial incentive mechanism.
191.26EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 18. Minnesota Statutes 2016, section 216B.2422, subdivision 2, is amended to read:
Subd. 2. Resource plan filing and approval. (a)
A utility shall file a resource plan with
the commission periodically in accordance with rules adopted by the commission. The
commission shall approve, reject, or modify the plan of a public utility, as defined
191.31216B.02, subdivision 4
, consistent with the public interest.
In the resource plan proceedings of all other utilities, the commission's order shall
be advisory and the order's findings and conclusions shall constitute prima facie
which may be rebutted by substantial evidence in all other proceedings. With respect
utilities other than those defined in section
216B.02, subdivision 4
, the commission shall
consider the filing requirements and decisions in any comparable proceedings in another
As a part of its resource plan filing, a utility shall include the least cost plan
meeting 50 and 75 percent of all energy needs from both
new and refurbished
192.7 needs generating facilities
through a combination of conservation and renewable energy
192.9EFFECTIVE DATE.This section is effective the day following final enactment.
192.10Paragraph (c) applies to resource plans filed with the commission on or after July
Sec. 19. Minnesota Statutes 2016, section 216B.2422, subdivision 4, is amended to read:
Subd. 4. Preference for renewable energy facility.
The commission shall not approve
a new or refurbished nonrenewable energy facility in an integrated resource plan or
certificate of need, pursuant to section
, nor shall the commission allow rate
recovery pursuant to section
for such a nonrenewable energy facility, unless the
utility has demonstrated that a renewable energy facility is not in the public interest.
the public interest determination, the commission
whether the resource plan helps the utility achieve the greenhouse gas reduction
goals under section
, the renewable energy standard under section
the solar energy standard under section
, subdivision 2f
192.21(2) impacts on local and regional grid reliability;
192.22(3) utility and ratepayer impacts resulting from the intermittent nature of renewable
192.23energy facilities, including but not limited to the costs of purchasing wholesale
192.24in the market and the costs of providing ancillary services; and
192.25(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility,
192.26changes in transmission costs, portfolio diversification, and environmental compliance
192.28EFFECTIVE DATE.This section is effective July 1, 2017.
Sec. 20. Minnesota Statutes 2016, section 216B.2424, is amended by adding a subdivision
193.3 Subd. 9. Adjustment of biomass fuel requirement. (a) Notwithstanding any provision
193.4in this section, the public utility subject to this section may, with respect to a
193.5under this section, file a petition with the commission for approval of:
193.6(1) a new or amended power purchase agreement;
193.7(2) the early termination of a power purchase agreement; or
193.8(3) the purchase and closure of the facility.
193.9(b) The commission may approve a new or amended power purchase agreement under
193.10this subdivision, notwithstanding the fuel requirements of this section, if the commission
193.12(1) all parties to the original power purchase agreement, or their successors or assigns,
193.13as applicable, agree to the terms and conditions of the new or amended power purchase
193.15(2) the new or amended power purchase agreement is in the best interest of the customers
193.16of the public utility subject to this section, taking into consideration any savings
193.17by customers in the new or amended power purchase agreement and any costs imposed
193.18customers under paragraph (e). A new or amended power purchase agreement approved
193.19under this paragraph may be for any term agreed to by the parties and may govern the
193.20purchase of any amount of energy.
193.21(c) The commission may approve the early termination of a power purchase agreement
193.22or the purchase and closure of a facility under this subdivision if it determines
193.23(1) all parties to the power purchase agreement, or their successors or assigns, as
193.24applicable, agree to the early termination of the power purchase agreement or the
193.25and closure of the facility; and
193.26(2) the early termination of the power purchase agreement or the purchase and closure
193.27of the facility is in the best interest of the customers of the public utility subject
193.28section, taking into consideration any savings realized by customers as a result of
193.29termination of the power purchase agreement or the purchase and closure of the facility
193.30any costs imposed on the customers under paragraph (e).
193.31(d) The commission's approval of a new or amended power purchase agreement under
193.32paragraph (b) or of the termination of a power purchase agreement or the purchase
194.1closure of a facility under paragraph (c), shall not require the public utility subject
194.2section to purchase replacement amounts of biomass energy to fulfill the requirements
194.4(e) A utility may petition the commission to approve a rate schedule that provides
194.5the automatic adjustment of charges to recover investments, expenses and costs, and
194.6on the investments associated with a new or amended power purchase agreement, the
194.7termination of a power purchase agreement, or the purchase and closure of a facility.
194.8commission may approve the rate schedule upon a showing that the recovery of investments,
194.9expenses and costs, and earnings on the investments is less than the costs that would
194.10been recovered from customers had the utility continued to purchase energy under the
194.11purchase agreement in effect before any option available under this section is approved
194.12the commission. If approved by the commission, cost recovery under this paragraph
194.13include all cost recovery allowed for renewable facilities under section 216B.1645,
194.14subdivisions 2 and 2a.
194.15(f) This subdivision does not apply to a St. Paul district heating and cooling system
194.16cogeneration facility, and nothing in this subdivision precludes a public utility
194.17a nuclear-power electric generating plant from filing a petition with the commission
194.18approval of a new or amended power purchase agreement with such a facility.
194.19(g) For the purposes of this subdivision, "facility" means a biomass facility previously
194.20approved by the commission to satisfy a portion of the biomass mandate in this section.
194.21EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 21. Minnesota Statutes 2016, section 216C.05, subdivision 2, is amended to read:
Subd. 2. Energy policy goals.
It is the energy policy of the state of Minnesota that:
(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales
electricity and natural gas be achieved through cost-effective energy efficiency;
(2) the per capita use of fossil fuel as an energy input be reduced by 15 percent
year 2015, through increased reliance on energy efficiency and renewable energy alternatives;
(3) 25 percent of the total energy used in the state be derived from renewable energy
resources by the year 2025
194.31 (4) retail electricity rates for each customer class be at least five percent below
195.1EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 22. [216C.417] PROGRAM ADMINISTRATION; "MADE IN MINNESOTA"
195.3SOLAR ENERGY PRODUCTION INCENTIVES.
195.4 Subdivision 1. General provisions. Payment of a "Made in Minnesota" solar energy
195.5production incentive to an owner whose application was approved by the commissioner
195.6commerce under section 216C.415, by May 1, 2017, must be administered under the
195.7provisions of Minnesota Statutes 2016, sections 216C.411; 216C.413; 216C.414, subdivisions
195.81 to 3 and 5; and 216C.415. No incentive payments may be made under this section to
195.9owner whose application was approved by the commissioner after May 1, 2017.
195.10 Subd. 2. Appropriation. (a) Unspent money remaining in the account established under
195.11Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to
195.12renewable development account in the special revenue fund established under Minnesota
195.13Statutes, section 116C.779, subdivision 1.
195.14(b) There is annually appropriated from the renewable development account in the special
195.15revenue fund established in Minnesota Statutes, section 116C.779, to the commissioner
195.16commerce money sufficient to make the incentive payments required under Minnesota
195.17Statutes 2016, section 216C.415. Any funds appropriated under this paragraph that
195.18unexpended at the end of a fiscal year cancel to the renewable development account.
195.19(c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none
195.20this appropriation may be used for administrative costs.
195.21 Subd. 3. Eligibility window; payment duration. (a) Payments may be made under this
195.22subdivision only for solar photovoltaic module installations that meet the requirements
195.23subdivision 1 and that first begin generating electricity between January 1, 2014,
195.25(b) The payment eligibility window of the incentive begins and runs consecutively
195.26the date the solar photovoltaic modules first begins generating electricity.
195.27(c) An owner of solar photovoltaic modules may receive payments under this section
195.28for a particular module for a period of ten years, provided that sufficient funds
195.29in the account.
195.30(d) No payment may be made under this section for electricity generated after October
195.32EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 23. Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision
196.3 Subd. 7a. Multifamily residential dwelling. "Multifamily residential dwelling" means
196.4a residential dwelling containing five or more units intended for use as a residence
196.5or lessees of the owner.
Sec. 24. Minnesota Statutes 2016, section 216H.03, subdivision 3, is amended to read:
Subd. 3. Long-term increased emissions from power plants prohibited.
preempted by federal law, until a comprehensive and enforceable state law or rule
to greenhouse gases that directly limits and substantially reduces, over time, statewide
sector carbon dioxide emissions is enacted and in effect, and except as allowed in
subdivisions 4 to 7, on and after August 1, 2009, no person shall
construct within the state a new large energy facility that would contribute to statewide
power sector carbon dioxide emissions
196.14 (2) import or commit to import from outside the state power from a new large energy
196.15 facility that would contribute to statewide power sector carbon dioxide emissions;
196.16 (3) enter into a new long-term power purchase agreement that would increase statewide
196.17 power sector carbon dioxide emissions. For purposes of this section, a long-term power
196.18 purchase agreement means an agreement to purchase 50 megawatts of capacity or more
196.19 a term exceeding five years.
196.20EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 25. Minnesota Statutes 2016, section 216H.03, subdivision 4, is amended to read:
Subd. 4. Exception for facilities that offset emissions.
prohibitions in prohibition
not apply if the project proponent demonstrates to the Public
Utilities Commission's satisfaction that it will offset the new contribution to statewide
sector carbon dioxide emissions with a carbon dioxide reduction project identified
paragraph (b) and in compliance with paragraph (c).
(b) A project proponent may offset in an amount equal to or greater than the proposed
new contribution to statewide power sector carbon dioxide emissions in either, or
combination of both, of the following ways:
(1) by reducing an existing facility's contribution to statewide power sector carbon
dioxide emissions; or
(2) by purchasing carbon dioxide allowances from a state or group of states that has
carbon dioxide cap and trade system in place that produces verifiable emissions reductions.
(c) The Public Utilities Commission shall not find that a proposed carbon dioxide
reduction project identified in paragraph (b) acceptably offsets a new contribution
power sector carbon dioxide emissions unless the proposed offsets are permanent,
quantifiable, verifiable, enforceable, and would not have otherwise occurred. This
does not exempt emissions that have been offset under this subdivision and emissions
exempted under subdivisions 5 to 7 from a cap and trade system if adopted by the state.
197.9EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 26. Minnesota Statutes 2016, section 216H.03, subdivision 7, is amended to read:
Subd. 7. Other exemptions.
prohibitions in prohibition under
not apply to:
(1) a new large energy facility under consideration by the Public Utilities Commission
pursuant to proposals or applications filed with the Public Utilities Commission before
1, 2007, or to any power purchase agreement related to a facility described in this
The exclusion of pending proposals and applications from the prohibitions in subdivision
3 does not limit the applicability of any other law and is not an expression of legislative
intent regarding whether any pending proposal or application should be approved or
(2) a contract not subject to commission approval that was entered into prior to April
2007, to purchase power from a new large energy facility that was approved by a comparable
authority in another state prior to that date, for which municipal or public power
bonds have been issued, and on which construction has begun;
(3) a new large energy facility
or a power purchase agreement between a Minnesota
197.24 utility and a new large energy facility
Minnesota that the Public
Utilities Commission has determined is essential to ensure the long-term reliability
Minnesota's electric system, to allow electric service for increased industrial demand,
avoid placing a substantial financial burden on Minnesota ratepayers. An order of
commission granting an exemption under this clause is stayed until the June 1 following
the next regular or annual session of the legislature that begins after the date of
commission's final order; or
(4) a new large energy facility with a combined electric generating capacity of less
100 megawatts, which did not require a Minnesota certificate of need, which received
air pollution control permit to construct from an adjoining state before January 1,
on which construction began before July 1, 2008, or to any power purchase agreement
related to a facility described in this clause.
198.3EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 27. RESIDENTIAL PACE CONSUMER PROTECTION LEGISLATION TASK
198.6 Subdivision 1. Establishment. The Residential PACE Consumer Protection Legislation
198.7Task Force shall develop recommendations for consumer protection legislation for any
198.8energy improvements financing program implemented under Minnesota Statutes, sections
198.9216C.435 to 216C.436, for single-family residential dwellings. For purposes of this
198.10"residential PACE" or "PACE" means energy improvement financing programs for
198.11single-family residential dwellings authorized under Minnesota Statutes, sections
198.13 Subd. 2. Task force. (a) The task force consists of 16 members as follows:
198.14(1) one member appointed by the Minnesota Association of Realtors;
198.15(2) one member appointed by the Center for Energy and Environment;
198.16(3) one member appointed by the Minnesota Bankers Association;
198.17(4) one member appointed by the Legal Services Advocacy Project;
198.18(5) one member appointed by the Minnesota Credit Union Network;
198.19(6) one member appointed by the Minnesota Solar Energy Industry Association;
198.20(7) one member appointed by the St. Paul Port Authority;
198.21(8) one member appointed by the League of Minnesota Cities;
198.22(9) one member appointed by the Association of Minnesota Counties;
198.23(10) one member appointed by AARP Minnesota;
198.24(11) one member appointed by Fresh Energy;
198.25(12) one member appointed by the Citizens Utility Board of Minnesota;
198.26(13) one member appointed by Clean Energy Economy Minnesota;
198.27(14) one member appointed by the Minnesota Land Title Association;
198.28(15) one member appointed by an organization with experience implementing residential
198.29PACE programs in other states; and
199.1(16) the commissioner of commerce or a designee.
199.2(b) Any public member can designate a substitute from the same organization to replace
199.3that member at a meeting of the task force.
199.4 Subd. 3. Duties. The task force must develop recommendations to:
199.5(1) address concerns regarding the possible constraints on free alienation of residential
199.6property caused by existence and amount of the PACE liens;
199.7(2) reduce and minimize any point-of-sale confusion in transactions involving
199.9(3) ensure conspicuous and meaningful disclosure of, among other things:
199.10(i) all costs and fees of a residential PACE loan; and
199.11(ii) the risks, such as foreclosure and higher costs, that may be associated with
199.12PACE loans relative to other financing mechanisms;
199.13(4) ensure that the ability to repay standard uses commonly accepted underwriting
199.15(5) ensure that consumer provisions required of and protections that apply to conventional
199.16loans and other financing options, including but not limited to the Truth in Lending
199.17the Real Estate Settlement Procedures Act, are required of and apply to PACE financing;
199.18(6) address any unique protections necessary for elderly, low-income homeowners and
199.19other financially vulnerable homeowners;
199.20(7) establish criteria to ensure the cost-effectiveness of PACE-enabled clean energy
199.22(8) address any other issues the task force identifies that are necessary to protect
199.24 Subd. 4. Administrative support. The commissioner of commerce shall provide
199.25administrative support and meeting space for the task force.
199.26 Subd. 5. Compensation. Members serve without compensation and shall not be
199.27reimbursed for expenses.
199.28 Subd. 6. Chair. The commissioner of commerce or the commissioner's designee shall
199.29serve as chair.
199.30 Subd. 7. Meetings. The task force shall meet regularly, at the call of the chair. Meetings
199.31of the task force are subject to Minnesota Statutes, chapter 13D.
200.1 Subd. 8. Appointments; first meeting. Appointments must be made by June 1, 2017.
200.2The commissioner of commerce must convene the first meeting by July 15, 2017.
200.3 Subd. 9. Report to legislature. By January 15, 2018, the commissioner shall submit a
200.4report detailing the task force's findings and recommendations to the chairs and ranking
200.5minority members of the senate and house of representatives committees with jurisdiction
200.6over energy and consumer protection policy and finance. The report must include any
200.7legislation necessary to implement the recommendations of the task force.
200.8 Subd. 10. Suspension of residential PACE. Until legislation is enacted establishing
200.9consumer protections that address, but are not limited to, the concerns identified
200.10subdivision 3, no programs for the financing of energy improvements on a single-family
200.11residential property dwelling under Minnesota Statutes, sections 216C.435 to 216C.436,
200.12may be operated after the effective date of this section.
200.13 Subd. 11. Expiration. The task force expires January 15, 2018, or after submitting the
200.14report required in this section, whichever is earlier.
200.15EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 28. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR
200.18(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner
200.19of a solar thermal system whose application was approved by the commissioner of commerce
200.20after the effective date of this act.
200.21(b) Unspent money remaining in the account established under Minnesota Statutes 2014,
200.22section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF account established
200.23under Minnesota Statutes 2016, section 116C.779, subdivision 1.
200.24EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 29. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF
200.26UNEXPENDED GRANT FUNDS.
200.27(a) No later than 30 days after the effective date of this section, the utility subject
200.28Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person
200.29who received a grant funded from the renewable development account previously established
200.30under that subdivision:
200.31(1) after January 1, 2012; and
201.1(2) before January 1, 2012, if the funded project remains incomplete as of the effective
201.2date of this section.
201.3The notice must contain the provisions of this section and instructions directing
201.4recipients how unexpended funds can be transferred to the clean energy advancement
201.6(b) A recipient of a grant from the renewable development account previously established
201.7under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30
201.8receiving the notice required under paragraph (a), transfer any grant funds that remain
201.9unexpended as of the effective date of this section to the clean energy advancement
201.10account if, by that effective date, all of the following conditions are met:
201.11(1) the grant was awarded more than five years before the effective date of this section;
201.12(2) the grant recipient has failed to obtain control of the site on which the project
201.14(3) the grant recipient has failed to secure all necessary permits or approvals from
201.15unit of government with respect to the project; and
201.16(4) construction of the project has not begun.
201.17(c) A recipient of a grant from the renewable development account previously established
201.18under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant
201.19that remain unexpended five years after the grant funds are received by the grant
201.20if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met.
201.21recipient must transfer the unexpended funds no later than 30 days after the fifth
201.22of the receipt of the grant funds.
201.23(d) A person who transfers funds to the clean energy advancement fund account under
201.24this section is eligible to apply for funding from the clean energy advancement fund
201.25EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 30. REPEALER.
201.27(a) Laws 2013, chapter 85, article 6, section 11, is repealed.
201.28(b) Minnesota Statutes 2016, sections 216B.8109; 216B.811; 216B.812; 216B.813; and
201.29216B.815, are repealed.
201.30(c) Minnesota Statutes 2016, sections 3.8852; and 116C.779, subdivision 3, are repealed.
202.1(d) Minnesota Statutes 2016, sections 174.187; 216C.411; 216C.412; 216C.413;
202.2216C.414; 216C.415; and 216C.416, are repealed.
202.3EFFECTIVE DATE.This section is effective the day following final enactment.
Section 1. Minnesota Statutes 2016, section 327C.01, is amended by adding a subdivision
202.8 Subd. 13. Class I manufactured home park. A "class I manufactured home park"
202.9means a park that complies with the provisions of section 327C.16.
202.10EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 2. [327C.16] CLASS I MANUFACTURED HOME PARK.
202.12 Subdivision 1. Qualifications. (a) To qualify as a class I manufactured home park, as
202.13defined in section 327C.01, subdivision 13, a park owner, or on-site attendant as
202.14of the manufactured home park, must satisfy 12 hours of qualifying education courses
202.15three years, as prescribed in this subdivision. Park owners or on-site attendants
202.16accumulating qualifying hours to qualify as a class I manufactured home park beginning
202.18(b) The qualifying education courses required for classification under this subdivision
202.19must be continuing education courses approved by the Department of Labor and Industry
202.20or the Department of Commerce for:
202.21(1) continuing education in real estate; or
202.22(2) continuing education for residential contractors and manufactured home installers.
202.23(c) The qualifying education courses must include:
202.24(1) two hours on fair housing, approved for real estate licensure or residential contractor
202.26(2) one hour on the Americans with Disabilities Act, approved for real estate licensure
202.27or residential contractor licensure;
202.28(3) four hours on legal compliance related to any of the following: landlord/tenant,
202.29licensing requirements, or home financing under chapters 58, 327, 327B, 327C, and
202.30and Minnesota Rules, chapter 1350 or 4630;
203.1(4) three hours of general education approved for real estate, residential contractors,
203.2manufactured home installers; and
203.3(5) two hours of HUD-specific manufactured home installer courses as required under
203.5(d) If the qualifying owner or employee attendant is no longer the person meeting
203.6requirements under this subdivision, but did qualify during the current assessment
203.7then the manufactured home park shall still qualify for the class rate provided for
203.8property classified under section 273.13, subdivision 25, paragraph (d), clause (5),
203.10 Subd. 2. Proof of compliance. (a) A park owner that has met the requirements of
203.11subdivision 1 shall provide an affidavit to the park owner's county assessor certifying
203.12the park owner, corporate officer, or on-site attendant has complied with subdivision
203.13that the park meets the definition of a class I manufactured home park as defined
203.14section, and is entitled to the property tax classification rate for class I manufactured
203.15parks in section 273.13, subdivision 25. The park owner shall retain the original
203.16completion certificates issued by the course sponsor under this section for three
203.17upon written request for verification, provide these to the county assessor within
203.18(b) A park owner must provide the county assessor written notice of any change in
203.19compliance status of the manufactured home park no later than December 15 of the
203.21EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2016, section 462.355, subdivision 4, is amended to read:
Subd. 4. Interim ordinance.
(a) If a municipality is conducting studies or has authorized
a study to be conducted or has held or has scheduled a hearing for the purpose of
adoption or amendment of a comprehensive plan or official controls as defined in section
203.26462.352, subdivision 15
, or if new territory for which plans or controls have not been adopted
is annexed to a municipality, the governing body of the municipality may adopt an
ordinance applicable to all or part of its jurisdiction for the purpose of protecting
process and the health, safety and welfare of its citizens. The interim ordinance
restrict, or prohibit any use, development, or subdivision within the jurisdiction
or a portion
thereof for a period not to exceed one year from the date it is effective.
(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities
relating to livestock production, a public hearing must be held following a ten-day
given by publication in a newspaper of general circulation in the municipality before
interim ordinance takes effect.
204.3(c)(1) A statutory or home rule charter city may adopt an interim ordinance that regulates,
204.4restricts, or prohibits a housing proposal only if the ordinance is approved by majority
204.5of all members of the city council.
204.6(2) Before adopting the interim ordinance, the city council must hold a public hearing
204.7after providing written notice to any person who has submitted a housing proposal,
204.8pending housing proposal, or has provided a written request to be notified of interim
204.9ordinances related to housing proposals. The written notice must be provided at least
204.10business days before the public hearing. Notice also must be posted on the city's
204.11Web site, if the city has an official Web site.
204.12(3) The date of the public hearing shall be the earlier of the next regularly scheduled
204.13city council meeting after the notice period or within ten days of the notice.
204.14(4) The activities proposed to be restricted by the proposed interim ordinance may
204.15be undertaken before the public hearing.
204.16(5) For the purposes of this paragraph, "housing proposal" means a written request
204.17city approval of a project intended primarily to provide residential dwellings, either
204.18family or multi-family, and involves the subdivision or development of land or the
204.19demolition, construction, reconstruction, alteration, repair, or occupancy of residential
The period of an interim ordinance applicable to an area that is affected by a city's
master plan for a municipal airport may be extended for such additional periods as
municipality may deem appropriate, not exceeding a total additional period of 18 months.
In all other cases, no interim ordinance may halt, delay, or impede a subdivision
been given preliminary approval, nor may any interim ordinance extend the time deadline
for agency action set forth in section
with respect to any application filed prior to the
effective date of the interim ordinance. The governing body of the municipality may
the interim ordinance after a public hearing and written findings have been adopted
upon one or more of the conditions in clause (1), (2), or (3). The public hearing
held at least 15 days but not more than 30 days before the expiration of the interim
and notice of the hearing must be published at least ten days before the hearing.
ordinance may be extended for the following conditions and durations, but, except
provided in clause (3), an interim ordinance may not be extended more than an additional
(1) up to an additional 120 days following the receipt of the final approval or review
a federal, state, or metropolitan agency when the approval is required by law and
or approval has not been completed and received by the municipality at least 30 days
the expiration of the interim ordinance;
(2) up to an additional 120 days following the completion of any other process required
by a state statute, federal law, or court order, when the process is not completed
at least 30
days before the expiration of the interim ordinance; or
(3) up to an additional one year if the municipality has not adopted a comprehensive
plan under this section at the time the interim ordinance is enacted.
205.10EFFECTIVE DATE.This section is effective for interim ordinances proposed on or
205.11after August 1, 2017.
Sec. 4. Minnesota Statutes 2016, section 462A.201, subdivision 2, is amended to read:
Subd. 2. Low-income housing.
(a) The agency may use money from the housing trust
fund account to provide loans or grants for:
(1) projects for the development, construction, acquisition, preservation, and rehabilitation
of low-income rental and limited equity cooperative housing units, including temporary
and transitional housing;
(2) the costs of operating rental housing, as determined by the agency, that are unique
to the operation of low-income rental housing or supportive housing;
(3) rental assistance, either project-based or tenant-based; and
205.21(4) projects to secure stable housing for families with children eligible for enrollment
205.22in a prekindergarten through grade 12 academic program
For purposes of this section, "transitional housing" has the meaning given by the
States Department of Housing and Urban Development. Loans or grants for residential
housing for migrant farmworkers may be made under this section.
(b) The housing trust fund account must be used for the benefit of persons and families
whose income, at the time of initial occupancy, does not exceed 60 percent of median
as determined by the United States Department of Housing and Urban Development for
metropolitan area. At least 75 percent of the funds in the housing trust fund account
be used for the benefit of persons and families whose income, at the time of initial
does not exceed 30 percent of the median family income for the metropolitan area as
473.121, subdivision 2
. For purposes of this section, a household with a housing
assistance voucher under Section 8 of the United States Housing Act of 1937, as amended,
is deemed to meet the income requirements of this section.
The median family income may be adjusted for families of five or more.
(c) Rental assistance under this section must be provided by governmental units which
administer housing assistance supplements or by for-profit or nonprofit organizations
experienced in housing management. Rental assistance shall be limited to households
income at the time of initial receipt of rental assistance does not exceed 60 percent
income, as determined by the United States Department of Housing and Urban Development
for the metropolitan area. Priority among comparable applications for tenant-based
assistance will be given to proposals that will serve households whose income at the
of initial application for rental assistance does not exceed 30 percent of median
determined by the United States Department of Housing and Urban Development for the
metropolitan area. Rental assistance must be terminated when it is determined that
of a household's monthly income for four consecutive months equals or exceeds the
rent for the unit in which the household resides plus utilities for which the tenant
responsible. Rental assistance may only be used for rental housing units that meet
maintenance code of the local unit of government in which the unit is located, if
such a code
has been adopted, or the housing quality standards adopted by the United States Department
of Housing and Urban Development, if no local housing maintenance code has been adopted.
(d) In making the loans or grants, the agency shall determine the terms and conditions
of repayment and the appropriate security, if any, should repayment be required. To
the geographic distribution of grants and loans, the agency may designate a portion
grant or loan awards to be set aside for projects located in specified congressional
or other geographical regions specified by the agency. The agency may adopt rules
awarding grants and loans under this subdivision.
Sec. 5. Minnesota Statutes 2016, section 462A.2035, is amended to read:
206.27462A.2035 MANUFACTURED HOME PARK REDEVELOPMENT PROGRAM.
Subdivision 1. Establishment.
The agency shall establish a manufactured home park
redevelopment program for the purpose of making manufactured home park redevelopment
grants or loans to cities, counties,
community action programs, nonprofit organizations,
206.31and cooperatives created under chapter 308A or 308B
206.32 Subd. 1a. Individual assistance grants.
Cities, counties, and community action programs
may use individual assistance
grants and loans under this program to:
(1) provide current residents of manufactured home parks with buy-out assistance not
to exceed $4,000 per home with preference given to older manufactured homes; and
(2) provide down-payment assistance for the purchase of new and preowned manufactured
homes that comply with the current version of the State Building Code in effect at
of the sale, not to exceed $10,000 per home
207.6 (3) make improvements in manufactured home parks as requested by the grant recipient.
207.7 Subd. 1b. Park infrastructure grants. Eligible recipients may use park infrastructure
207.8grants under this program for:
207.9(1) improvements in manufactured home parks; and
207.10(2) infrastructure, including storm shelters and community facilities.
Subd. 2. Eligibility requirements. For individual assistance grants under subdivision
under this section
must have an annual household income at or
below 80 percent of the area median household income. Cities, counties, or community
action programs receiving funds under the program must give preference to households
or below 50 percent of the area median household income. Participation in the program
voluntary and no park resident shall be required to participate.
207.17 Subd. 3. Statewide program.
The agency shall attempt to make grants and loans in
approximately equal amounts to applicants outside and within the metropolitan area.
207.19and loans under this section shall be provided in a manner consistent with the agency's
207.20policies and purposes in section 462A.02.
207.21 Subd. 4. Infrastructure repair and replacement fund. Each recipient receiving a grant
207.22under subdivision 1b shall provide from year to year, on a cumulative basis, for adequate
207.23reserve funds to cover the repair and replacement of the private infrastructure systems
207.24serving the community.
Sec. 6. Minnesota Statutes 2016, section 462A.204, subdivision 8, is amended to read:
Subd. 8. School stability.
(a) The agency in consultation with the Interagency
207.27 Force Council
on Homelessness may establish a school stability project under the family
homeless prevention and assistance program. The purpose of the project is to secure
housing for families with school-age children who have moved frequently and for
unaccompanied youth. For purposes of this subdivision, "unaccompanied youth" are minors
who are leaving foster care or juvenile correctional facilities, or minors who meet
definition of a child in need of services or protection under section
, but for whom no court finding has been made pursuant to that statute.
(b) The agency shall make grants to family homeless prevention and assistance projects
in communities with a school or schools that have a significant degree of student
(c) Each project must be designed to reduce school absenteeism; stabilize children
one home setting or, at a minimum, in one school setting; and reduce shelter usage.
project must include plans for the following:
(1) targeting of families with children
under age 12 who, in the last 12 months have
208.9 either: changed schools or homes at least once or been absent from school at least
208.10 of the school year and who have either been evicted from their housing; who are eligible
208.11for a prekindergarten through grade 12 academic program and
are living in overcrowded
conditions in their current housing;
are paying more than 50 percent of their income for
rent; or who lack a fixed, regular, and adequate nighttime residence;
(2) targeting of unaccompanied youth in need of an alternative residential setting;
(3) connecting families with the social services necessary to maintain the families'
stability in their home, including but not limited to housing navigation, legal representation,
208.17and family outreach
(4) one or more of the following:
(i) provision of rental assistance for a specified period of time, which may exceed
development of permanent supportive housing or transitional housing provision of
208.22support and case management services to improve housing stability, including but not
208.23to housing navigation and family outreach
Notwithstanding subdivision 2, grants under this section may be used to acquire,
208.25 rehabilitate, or construct transitional or permanent housing In selecting projects for funding
208.26under this subdivision, preference shall be given to organizations granted funding
208.27section 462A.201, subdivision 2, paragraph (a), clause (4)
Each grantee under the project must include representatives of the local school district
208.29 or targeted schools, or both, and of the local community correction agencies on its
208.30 committee No grantee under this subdivision is required to have an advisory committee as
208.31described in subdivision 6
Sec. 7. [462A.39] WORKFORCE HOUSING DEVELOPMENT PROGRAM.
209.2 Subdivision 1. Establishment. The commissioner of Minnesota housing finance shall
209.3establish a workforce housing development program to award grants or deferred loans
209.4eligible project areas to be used for qualified expenditures. Grants or deferred loans
209.5authorized under this section may be made without limitations relating to the maximum
209.6incomes of the renters.
209.7 Subd. 2. Definitions. (a) For purposes of this section, the following terms have the
209.9(b) "Eligible project area" means a home rule charter or statutory city located outside
209.10of the metropolitan area as defined in section 473.121, subdivision 2, with a population
209.11exceeding 500; a community that has a combined population of 1,500 residents located
209.12within 15 miles of a home rule charter or statutory city located outside the metropolitan
209.13area as defined in section
473.121, subdivision 2; or an area served by a joint county-city
209.14economic development authority.
209.15(c) "Joint county-city economic development authority" means an economic development
209.16authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between
209.17a city and county and excluding those established by the county only.
209.18(d) "Market rate residential rental properties" means properties that are rented at
209.19value, including new modular homes, new manufactured homes, and new manufactured
209.20homes on leased land or in a manufactured home park, and may include rental developments
209.21that have a portion of income-restricted units.
209.22(e) "Qualified expenditure" means expenditures for market rate residential rental
209.23properties including acquisition of property; construction of improvements; and provisions
209.24of loans or subsidies, grants, interest rate subsidies, public infrastructure, and
209.26 Subd. 3. Application. The commissioner shall develop forms and procedures for soliciting
209.27and reviewing application for grants or deferred loans under this section. At a minimum,
209.28city must include in its application a resolution of its governing body certifying
209.29matching amount as required under this section is available and committed.
209.30 Subd. 4. Program requirements. (a) The commissioner must not award a grant or
209.31deferred loans to an eligible project area under this section until the following
210.1(1) the average vacancy rate for rental housing located in the eligible project area,
210.2in any other city located within 15 miles or less of the boundaries of the area, has
210.3percent or less for at least the prior two-year period;
210.4(2) one or more businesses located in the eligible project area, or within 25 miles
210.5area, that employs a minimum of 20 full-time equivalent employees in aggregate have
210.6provided a written statement to the eligible project area indicating that the lack
210.7rental housing has impeded their ability to recruit and hire employees; and
210.8(3) the eligible project area has certified that the grants or deferred loans will
210.9for qualified expenditures for the development of rental housing to serve employees
210.10businesses located in the eligible project area or surrounding area.
210.11(b) Preference for grants or deferred loans awarded under this section shall be given
210.12eligible project areas with less than 30,000 people.
210.13(c) Among comparable proposals, preference must be given to projects with a higher
210.14proportion of units that are not income-restricted.
210.15 Subd. 5. Allocation. The amount of a grant or deferred loans may not exceed 25 percent
210.16of the rental housing development project cost. The commissioner shall not award a
210.17or deferred loans to a city without certification by the city that the amount of the
210.18deferred loans shall be matched by a local unit of government, business, or nonprofit
210.19organization with $1 for every $2 provided in grant or deferred loans funds.
210.20 Subd. 6. Report. Beginning January 15, 2018, the commissioner must annually submit
210.21a report to the chairs and ranking minority members of the senate and house of representatives
210.22committees having jurisdiction over taxes and workforce development specifying the
210.23that received grants or deferred loans under this section and the specific purposes
210.24the grant funds were used.
Sec. 8. [462C.16] HOUSING TRUST FUNDS FOR LOCAL HOUSING
210.27 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have