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Minnesota Legislature

Office of the Revisor of Statutes

SF 1456

Conference Committee Report - 90th Legislature (2017 - 2018) Posted on 05/22/2017 06:10am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 1456
1.2A bill for an act
1.3relating to economic development; temporarily modifying the restrictions on use
1.4of Minnesota investment fund local government loan repayment funds.
1.5May 22, 2017
1.6The Honorable Michelle L. Fischbach
1.7President of the Senate
1.8The Honorable Kurt L. Daudt
1.9Speaker of the House of Representatives
1.10We, the undersigned conferees for S.F. No. 1456 report that we have agreed upon the
1.11items in dispute and recommend as follows:
1.12That the House recede from its amendment and that S.F. No. 1456 be further amended
1.13as follows:
1.14Delete everything after the enacting clause and insert:

1.15"ARTICLE 1
1.16APPROPRIATIONS

1.17
Section 1. JOBS AND ECONOMIC DEVELOPMENT.
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 the
1.20general fund, or another named fund, and are available for the fiscal years indicated for
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 30, 2019,
1.23respectively. "The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The
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.
2.1
APPROPRIATIONS
2.2
Available for the Year
2.3
Ending June 30
2.4
2018
2019

2.5
2.6
Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
2.7
Subdivision 1.Total Appropriation
$
145,400,000
$
119,478,000
2.8
Appropriations by Fund
2.9
2018
2019
2.10
General
$109,565,000
$84,747,000
2.11
Remediation
$700,000
$700,000
2.12
2.13
Workforce
Development
$34,985,000
$34,031,000
2.14
Special Revenue
$150,000
-0-
2.15The amounts that may be spent for each
2.16purpose are specified in the following
2.17subdivisions.
2.18
Subd. 2.Business and Community Development
$
46,074,000
$
40,935,000
2.19
Appropriations by Fund
2.20
General
$43,363,000
$38,424,000
2.21
Remediation
$700,000
$700,000
2.22
2.23
Workforce
Development
$1,861,000
$1,811,000
2.24
Special Revenue
$150,000
-0-
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
2.34business programs:
2.35(1) training, lending, and business services;
3.1(2) model outreach and training in greater
3.2Minnesota; and
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
3.29until spent.
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
4.1930, 2021.
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,
5.162021.
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
5.31entities.
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,
8.4section 116J.548.
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
8.13onetime appropriation.
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
8.17appropriation.
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
8.25116L.42.
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
9.27to date.
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
10.27impact study.
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
12.32issues.
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.
13.3
Subd. 3.Workforce Development
$
31,498,000
$
30,231,000
13.4
Appropriations by Fund
13.5
General
$6,239,000
$5,889,000
13.6
13.7
Workforce
Development
$25,259,000
$24,342,000
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
14.5used to:
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
14.17curriculum;
14.18(3) increase the number of summer internship
14.19opportunities;
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
14.26workforce; and
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
16.25services;
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,
17.72021.
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
18.31onetime appropriation.
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
19.26appropriation.
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
20.20onetime appropriation.
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
22.15sources;
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
24.2onetime appropriation.
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
24.15knowledge.
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
24.25individuals served.
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.
25.35
Subd. 4.General Support Services
$
4,170,000
$
4,654,000
26.1
Appropriations by Fund
26.2
General Fund
$4,135,000
$4,606,000
26.3
26.4
Workforce
Development
$35,000
$48,000
26.5(a) $250,000 each year is for the publication,
26.6dissemination, and use of labor market
26.7information under Minnesota Statutes, section
26.8116J.401.
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
27.17469.47.
27.18
Subd. 5.Minnesota Trade Office
$
2,292,000
$
2,292,000
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,
27.26section 116J.978.
27.27(d) $50,000 each year is for the Trade Policy
27.28Advisory Council under Minnesota Statutes,
27.29section 116J.9661.
27.30
Subd. 6.Vocational Rehabilitation
$
34,691,000
$
34,691,000
27.31
Appropriations by Fund
27.32
General
$26,861,000
$26,861,000
27.33
27.34
Workforce
Development
$7,830,000
$7,830,000
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
28.5$10,800,000.
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
28.31268A.14.
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.
29.5
Subd. 7.Services for the Blind
$
6,425,000
$
6,425,000
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
29.14homes.
29.15
Subd. 8.Broadband Development
$
20,250,000
$
250,000
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
29.21Development Office.
29.22
Subd. 9.Reporting
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,
29.29section 11.
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,
30.2section 116L.98.

30.3
Sec. 3. HOUSING FINANCE AGENCY
30.4
Subdivision 1.Total Appropriation
$
54,798,000
$
52,798,000
30.5The amounts that may be spent for each
30.6purpose are specified in the following
30.7subdivisions.
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.
30.13
Subd. 2.Challenge Program
14,925,000
14,925,000
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
31.16benefits.
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.
31.23
Subd. 3.Housing Trust Fund
13,396,000
11,646,000
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
31.32(4).
31.33
Subd. 4.Rental Assistance for Mentally Ill
4,088,000
4,088,000
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,
32.9community-based settings.
32.10
Subd. 5.Family Homeless Prevention
8,769,000
8,519,000
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.
32.17
Subd. 6.Home Ownership Assistance Fund
885,000
885,000
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.
32.26
Subd. 7.Affordable Rental Investment Fund
4,218,000
4,218,000
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.
33.29
Subd. 8.Housing Rehabilitation
6,515,000
6,515,000
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.
34.7
34.8
Subd. 9.Homeownership Education, Counseling,
and Training
857,000
857,000
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
34.15communities.
34.16
Subd. 10.Capacity Building Grants
645,000
645,000
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
34.22System (HMIS).
34.23
Subd. 11.Build Wealth MN
500,000
500,000
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
34.28debt counseling.

34.29
34.30
Sec. 4. DEPARTMENT OF LABOR AND
INDUSTRY
34.31
Subdivision 1.Total Appropriation
$
28,820,000
$
29,143,000
34.32
Appropriations by Fund
34.33
2018
2019
34.34
General
1,776,000
1,790,000
35.1
35.2
Workers'
Compensation
24,975,000
24,975,000
35.3
35.4
Workforce
Development
2,069,000
2,378,000
35.5The amounts that may be spent for each
35.6purpose are specified in the following
35.7subdivisions.
35.8
Subd. 2.Workers' Compensation
14,782,000
14,782,000
35.9(a) This appropriation is from the workers'
35.10compensation fund.
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
35.14onetime appropriation.
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.
35.25
Subd. 3.Labor Standards and Apprenticeship
3,645,000
3,668,000
35.26
Appropriations by Fund
35.27
General
1,776,000
1,790,000
35.28
35.29
Workforce
Development
1,869,000
1,878,000
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
36.27178.
36.28(f) $150,000 each year is from the workforce
36.29development fund for prevailing wage
36.30enforcement.
36.31
Subd. 4.Workplace Safety
4,154,000
4,154,000
36.32This appropriation is from the workers'
36.33compensation fund.
36.34
Subd. 5.General Support
6,239,000
6,539,000
37.1
Appropriations by Fund
37.2
37.3
Workforce
Development Fund
200,000
500,000
37.4
37.5
Workers'
Compensation
6,039,000
6,039,000
37.6(a) Except as provided in paragraphs (b) and
37.7(c), this appropriation is from the workers'
37.8compensation fund.
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
37.282020.

37.29
Sec. 5. BUREAU OF MEDIATION SERVICES
$
2,446,000
$
2,522,000
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

38.10
38.11
Sec. 6. WORKERS' COMPENSATION COURT
OF APPEALS
$
1,913,000
$
1,913,000
38.12This appropriation is from the workers'
38.13compensation fund.

38.14
Sec. 7. DEPARTMENT OF COMMERCE
38.15
Subdivision 1.Total Appropriation
$
27,485,000
$
27,165,000
38.16
Appropriations by Fund
38.17
General
23,472,000
23,152,000
38.18
Special Revenue
2,210,000
2,210,000
38.19
Petroleum Tank
1,052,000
1,052,000
38.20
38.21
Workers'
Compensation
751,000
751,000
38.22The amounts that may be spent for each
38.23purpose are specified in the following
38.24subdivisions.
38.25
Subd. 2.Financial Institutions
920,000
820,000
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.
39.8
39.9
Subd. 3.Petroleum Tank Release Compensation
Board
1,052,000
1,052,000
39.10This appropriation is from the petroleum tank
39.11fund.
39.12
Subd. 4.Administrative Services
7,386,000
7,386,000
39.13(a) $384,000 each year is for additional
39.14compliance efforts with unclaimed property.
39.15The commissioner may issue contracts for
39.16these services.
39.17(b) $100,000 each year is for the support of
39.18broadband development.
39.19(c) $33,000 each year is for rulemaking and
39.20administration under Minnesota Statutes,
39.21section 80A.461.
39.22
Subd. 5.Telecommunications
2,619,000
2,619,000
39.23
Appropriations by Fund
39.24
General
1,009,000
1,009,000
39.25
Special Revenue
1,610,000
1,610,000
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
40.2Hard-of-Hearing Minnesotans;
40.3(2) $290,000 each year is to the chief
40.4information officer for the purpose of
40.5coordinating technology accessibility and
40.6usability;
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.
40.15
Subd. 6.Enforcement
5,672,000
5,472,000
40.16
Appropriations by Fund
40.17
General
5,474,000
5,274,000
40.18
40.19
Workers'
Compensation
198,000
198,000
40.20(a) $279,000 each year is for health care
40.21enforcement.
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
40.29exploitation.
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.
41.21
Subd. 7.Energy Resources
4,847,000
4,847,000
41.22
Appropriations by Fund
41.23
General
4,247,000
4,247,000
41.24
Special Revenue
600,000
600,000
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
42.10biennium.
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
42.25development account.
42.26
Subd. 8.Insurance
4,989,000
4,969,000
42.27
Appropriations by Fund
42.28
General
4,436,000
4,416,000
42.29
42.30
Workers'
Compensation
553,000
553,000
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
42.35principle-based reserves.
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
43.5appropriation.

43.6
Sec. 8. PUBLIC UTILITIES COMMISSION
$
7,465,000
$
7,465,000
43.7$21,000 each year is for the purposes of
43.8Minnesota Statutes, section 237.045.

43.9
Sec. 9. PUBLIC FACILITIES AUTHORITY
$
1,800,000
$
-0-
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
43.18contribution.
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.

44.6ARTICLE 2
44.7LABOR AND INDUSTRY

44.8    Section 1. Minnesota Statutes 2016, section 175.45, is amended to read:
44.9175.45 COMPETENCY STANDARDS FOR DUAL TRAINING.
44.10    Subdivision 1. Duties; goal. The commissioner of labor and industry shall convene
44.11industry representatives, identify occupational competency standards for dual training, and
44.12provide technical assistance to develop dual-training programs. The goal of dual training
44.13is to provide employees of an employer with training to acquire competencies that the
44.14employer requires. The competency standards shall be identified for employment in
44.15occupations in advanced manufacturing, health care services, information technology, and
44.16agriculture. Competency standards are not rules and are exempt from the rulemaking
44.17provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do
44.18not apply.
44.19    Subd. 2. Definition; competency standards Definitions. For purposes of this section,
44.20the following terms have the meanings given them:
44.21(1) "competency standards" means the specific knowledge and skills necessary for a
44.22particular occupation.; and
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 on-the-job
44.25training and technical instruction in accordance with the competency standards.
44.26    Subd. 3. Competency standards identification process. In identifying competency
44.27standards, the commissioner shall consult with the commissioner of the Office of Higher
44.28Education and the commissioner of employment and economic development and convene
44.29recognized industry experts, representative employers, higher education institutions,
44.30representatives of the disabled community, and representatives of labor to assist in identifying
44.31credible competency standards. Competency standards must be consistent with, to the extent
44.32available and practical, recognized international and national standards.
45.1    Subd. 4. Duties. The commissioner shall:
45.2(1) convene industry representatives to identify, develop, and implement dual-training
45.3programs;
45.4(2) identify competency standards for entry level entry-level and higher skill levels;
45.5(2) (3) verify the competency standards and skill levels and their transferability by subject
45.6matter expert representatives of each respective industry;
45.7(3) (4) develop models for Minnesota educational institutions to engage in providing
45.8education and training to meet the competency standards established;
45.9(4) (5) encourage participation by employers and labor in the competency standard
45.10identification process for occupations in their industry; and
45.11(5) (6) align dual training competency standards dual-training programs with other
45.12workforce initiatives.; and
45.13(7) provide technical assistance to develop dual-training programs.
45.14    Subd. 5. Notification. The commissioner must communicate identified competency
45.15standards to the commissioner of the Office of Higher Education for the purpose of the dual
45.16training dual-training competency grant program under section 136A.246. The commissioner
45.17of labor and industry shall maintain the competency standards on the department's Web
45.18site.

45.19    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 grants
45.23to local partnerships for the implementation and coordination of local youth skills training
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, nonpublic
45.30schools, intermediate school districts, postsecondary institutions, workforce development
45.31authorities, economic development authorities, nonprofit organizations, labor unions, or
46.1individuals who have an agreement with one or more local employers to be responsible for
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 a public
46.4or nonpublic school to obtain related instruction for academic credit and is employed under
46.5a written agreement to obtain on-the-job skills training under a youth skills training program
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
46.10that provide:
46.11(i) that the work of the student learner in the occupations declared particularly hazardous
46.12shall be incidental to the training;
46.13(ii) that the work shall be intermittent and for short periods of time, and under the direct
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 given by
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 job;
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
46.22this section;
46.23(3) issue requests for proposals for grants;
46.24(4) work with individuals representing industry and labor to develop new youth skills
46.25training programs;
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 to,
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
47.6training programs.
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 the
47.9student learner, and be signed by the employer, the school coordinator or administrator, and
47.10the student learner, or if the student learner is a minor, by the student's parent or legal
47.11guardian. Copies of each agreement shall be kept on file by both the school and the employer.
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 programs
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 may
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 suitable
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 daily
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 local
47.29requirements.
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 education
48.3program and is supervised by a qualified teacher with appropriate licensure for a work-based
48.4learning teacher-coordinator.
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 of a
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 individual
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 the
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 in
48.21this subdivision; and
48.22(4) the identity of a fiscal agent responsible for receiving, managing, and accounting for
48.23the grant.
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 activities:
48.26(1) recruiting additional employers to provide on-the-job training and supervision for
48.27student learners and providing technical assistance to those employers;
48.28(2) recruiting students to participate in the local youth skills training program, monitoring
48.29the progress of student learners participating in the program, and monitoring program
48.30outcomes;
48.31(3) coordinating youth skills training activities within participating school districts and
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 the
49.3local youth skills training program;
49.4(5) coordinating transportation for student learners participating in the local youth skills
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
49.9learner.
49.10    Subd. 14. Outcomes. The following outcomes are expected of a local youth skills training
49.11program:
49.12(1) at least 80 percent of the student learners who participate in a youth skills training
49.13program receive a high school diploma when eligible upon completion of the training
49.14program; and
49.15(2) at least 60 percent of the student learners who participate in a youth skills training
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 policy
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 the
49.25state and federal systems in child safety standards.

49.26    Sec. 3. Minnesota Statutes 2016, section 326B.092, subdivision 7, is amended to read:
49.27    Subd. 7. License fees and license renewal fees. (a) The license fee for each license is
49.28the base license fee plus any applicable board fee, continuing education fee, and contractor
49.29recovery fund fee and additional assessment, as set forth in this subdivision.
50.1(b) For purposes of this section, "license duration" means the number of years for which
50.2the license is issued except that if the initial license is not issued for a whole number of
50.3years, the license duration shall be rounded up to the next whole number.
50.4(c) The base license fee shall depend on whether the license is classified as an entry
50.5level, master, journeyman, or business license, and on the license duration. The base license
50.6fee shall be:
50.7
License Classification
License Duration
50.8
1 year
2 years
50.9
Entry level
$10
$20
50.10
Journeyworker
$20
$40
50.11
Master
$40
$80
50.12
Business
$180
50.13(d) If there is a continuing education requirement for renewal of the license, then a
50.14continuing education fee must be included in the renewal license fee. The continuing
50.15education fee for all license classifications shall be: $10 if the renewal license duration is
50.16one year; and $20 if the renewal license duration is two years.
50.17(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925,
50.18then a board fee must be included in the license fee and the renewal license fee. The board
50.19fee for all license classifications shall be: $4 if the license duration is one year; and $8 if
50.20the license duration is two years.
50.21(f) If the application is for the renewal of a license issued under sections 326B.802 to
50.22326B.885 , then the contractor recovery fund fee required under section 326B.89, subdivision
50.233, and any additional assessment required under section 326B.89, subdivision 16, must be
50.24included in the license renewal fee.
50.25(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period
50.26July 1, 2015 2017, through June 30, 2017 September 30, 2021, the following fees apply:
50.27
License Classification
License Duration
50.28
1 year
2 years
50.29
Entry level
$10
$20
50.30
50.31
Journeyworker
$15
$35
$30
50.32
50.33
Master
$30
$75
$60
50.34
50.35
Business
$160
$120
51.1If there is a continuing education requirement for renewal of the license, then a continuing
51.2education fee must be included in the renewal license fee. The continuing education fee for
51.3all license classifications shall be $5.

51.4    Sec. 4. [326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO
51.5CODE.
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 or more
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 swimming
51.10pool.
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 in
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.

51.19    Sec. 5. Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:
51.20    Subdivision 1. Building permits. (a) Fees for building permits submitted as required
51.21in section 326B.106 326B.107 include:
51.22(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality;
51.23and
51.24(2) the surcharge required by section 326B.148.
51.25(b) The total valuation and fee schedule is:
51.26(1) $1 to $500, $29.50 $21;
51.27(2) $501 to $2,000, $28 $21 for the first $500 plus $3.70 $2.75 for each additional $100
51.28or fraction thereof, to and including $2,000;
51.29(3) $2,001 to $25,000, $83.50 $62.25 for the first $2,000 plus $16.55 $12.50 for each
51.30additional $1,000 or fraction thereof, to and including $25,000;
52.1(4) $25,001 to $50,000, $464.15 $349.75 for the first $25,000 plus $12 $9 for each
52.2additional $1,000 or fraction thereof, to and including $50,000;
52.3(5) $50,001 to $100,000, $764.15 $574.75 for the first $50,000 plus $8.45 $6.25 for
52.4each additional $1,000 or fraction thereof, to and including $100,000;
52.5(6) $100,001 to $500,000, $1,186.65 $887.25 for the first $100,000 plus $6.75 $5 for
52.6each additional $1,000 or fraction thereof, to and including $500,000;
52.7(7) $500,001 to $1,000,000, $3,886.65 $2,887.25 for the first $500,000 plus $5.50 $4.25
52.8for each additional $1,000 or fraction thereof, to and including $1,000,000; and
52.9(8) $1,000,001 and up, $6,636.65 $5,012.25 for the first $1,000,000 plus $4.50 $2.75
52.10for each additional $1,000 or fraction thereof.
52.11(c) Other inspections and fees are:
52.12(1) inspections outside of normal business hours (minimum charge two hours), $63.25
52.13per hour;
52.14(2) reinspection fees, $63.25 per hour;
52.15(3) inspections for which no fee is specifically indicated (minimum charge one-half
52.16hour), $63.25 per hour; and
52.17(4) additional plan review required by changes, additions, or revisions to approved plans
52.18(minimum charge one-half hour), $63.25 per hour.
52.19(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25,
52.20then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment,
52.21hourly 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.

52.24    Sec. 6. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to
52.25read:
52.26    Subd. 16. Wind electric systems. (a) The inspection fee for the installation of a wind
52.27turbine is:
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.

53.7    Sec. 7. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to
53.8read:
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 watts
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
53.215,000,000 watts.
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.

53.24    Sec. 8. Minnesota Statutes 2016, section 326B.435, subdivision 2, is amended to read:
53.25    Subd. 2. Powers; duties; administrative support. (a) The board shall have the power
53.26to:
53.27    (1) elect its chair, vice-chair, and secretary;
54.1    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the board,
54.2and containing such other provisions as may be useful and necessary for the efficient conduct
54.3of the business of the board;
54.4    (3) adopt the Plumbing Code that must be followed in this state and any Plumbing Code
54.5amendments thereto. The Plumbing Code shall include the minimum standards described
54.6in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board shall adopt the
54.7Plumbing Code and any amendments thereto pursuant to chapter 14 and as provided in
54.8subdivision 6, paragraphs (b), (c), and (d);
54.9    (4) review requests for final interpretations and issue final interpretations as provided
54.10in section 326B.127, subdivision 5;
54.11    (5) adopt rules that regulate the licensure, certification, or registration of plumbing
54.12contractors, journeymen, unlicensed individuals, master plumbers, restricted master plumbers,
54.13restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders and
54.14testers, water conditioning contractors, and water conditioning installers, and other persons
54.15engaged in the design, installation, and alteration of plumbing systems or engaged in or
54.16working at the business of water conditioning installation or service, or engaged in or
54.17working at the business of medical gas system installation, maintenance, or repair, except
54.18for those individuals licensed under section 326.02, subdivisions 2 and 3. The board shall
54.19adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e)
54.20and (f);
54.21(6) adopt rules that regulate continuing education for individuals licensed as master
54.22plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers,
54.23registered unlicensed individuals, water conditioning contractors masters, and water
54.24conditioning installers journeymen, and for individuals certified under sections 326B.437
54.25and 326B.438. The board shall adopt these rules pursuant to chapter 14 and as provided in
54.26subdivision 6, paragraphs (e) and (f);
54.27    (7) refer complaints or other communications to the commissioner, whether oral or
54.28written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or
54.29order that the commissioner has the authority to enforce pertaining to code compliance,
54.30licensure, or an offering to perform or performance of unlicensed plumbing services;
54.31    (8) approve per diem and expenses deemed necessary for its members as provided in
54.32subdivision 3;
54.33    (9) approve license reciprocity agreements;
55.1    (10) select from its members individuals to serve on any other state advisory council,
55.2board, or committee; and
55.3    (11) recommend the fees for licenses, registrations, and certifications.
55.4Except for the powers granted to the Plumbing Board, the Board of Electricity, and the
55.5Board of High Pressure Piping Systems, the commissioner of labor and industry shall
55.6administer and enforce the provisions of this chapter and any rules promulgated pursuant
55.7thereto.
55.8    (b) The board shall comply with section 15.0597, subdivisions 2 and 4.
55.9    (c) The commissioner shall coordinate the board's rulemaking and recommendations
55.10with the recommendations and rulemaking conducted by the other boards created pursuant
55.11to this chapter. The commissioner shall provide staff support to the board. The support
55.12includes professional, legal, technical, and clerical staff necessary to perform rulemaking
55.13and other duties assigned to the board. The commissioner of labor and industry shall supply
55.14necessary office space and supplies to assist the board in its duties.

55.15    Sec. 9. Minnesota Statutes 2016, section 326B.50, subdivision 3, is amended to read:
55.16    Subd. 3. Water conditioning installation. "Water conditioning installation" means the
55.17installation of appliances, appurtenances, and fixtures designed to treat water so as to alter,
55.18modify, add or remove mineral, chemical or bacterial content, said installation to be made
55.19in a water distribution system serving:
55.20    (1) a single family residential unit, which has been initially established by a licensed
55.21plumber, and does not involve a direct connection without an air gap to a soil or waste pipe.;
55.22or
55.23(2) a multifamily or nonresidential building, where the plumbing installation has been
55.24initially established by a licensed plumber. Isolation valves shall be required for all water
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.

56.1    Sec. 10. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision
56.2to read:
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 unlicensed
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
56.11present;
56.12(4) the direct supervisor reviews the water conditioning installation work performed by
56.13the registered unlicensed individual before the water conditioning installation is operated;
56.14and
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 sections
56.17326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code,
56.18and all orders issued under section 326B.082.

56.19    Sec. 11. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision
56.20to read:
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 of
56.24a registered unlicensed individual.

56.25    Sec. 12. Minnesota Statutes 2016, section 326B.55, subdivision 2, is amended to read:
56.26    Subd. 2. Qualifications for licensing. (a) A water conditioning master license shall be
56.27issued only to an individual who has demonstrated skill in planning, superintending, and
56.28servicing, and installing water conditioning installations, and has successfully passed the
56.29examination for water conditioning masters. A water conditioning journeyman license shall
56.30only be issued to an individual other than a water conditioning master who has demonstrated
56.31practical knowledge of water conditioning installation, and has successfully passed the
56.32examination for water conditioning journeymen. A water conditioning journeyman must
57.1successfully pass the examination for water conditioning masters before being licensed as
57.2a water conditioning master.
57.3(b) Each water conditioning contractor must designate a responsible licensed master
57.4plumber or a responsible licensed water conditioning master, who shall be responsible for
57.5the performance of all water conditioning installation and servicing in accordance with the
57.6requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to
57.7326B.59 , the Minnesota Plumbing Code, and all orders issued under section 326B.082. If
57.8the water conditioning contractor is an individual or sole proprietorship, the responsible
57.9licensed master must be the individual, proprietor, or managing employee. If the water
57.10conditioning contractor is a partnership, the responsible licensed master must be a general
57.11partner or managing employee. If the water conditioning contractor is a limited liability
57.12company, the responsible licensed master must be a chief manager or managing employee.
57.13If the water conditioning contractor is a corporation, the responsible licensed master must
57.14be an officer or managing employee. If the responsible licensed master is a managing
57.15employee, the responsible licensed master must be actively engaged in performing water
57.16conditioning work on behalf of the water conditioning contractor and cannot be employed
57.17in any capacity as a water conditioning master or water conditioning journeyman for any
57.18other water conditioning contractor. An individual must not be the responsible licensed
57.19master for more than one water conditioning contractor.
57.20(c) All applications and renewals for water conditioning contractor licenses shall include
57.21a verified statement that the applicant or licensee has complied with paragraph (b).
57.22(d) Each application and renewal for a water conditioning master license, water
57.23conditioning journeyman license, or a water conditioning contractor license shall be
57.24accompanied by all fees required by section 326B.092.

57.25    Sec. 13. Minnesota Statutes 2016, section 326B.55, subdivision 4, is amended to read:
57.26    Subd. 4. Plumber's apprentices. (a) A plumber's apprentice who is registered under
57.27section 326B.47 is authorized to assist in water conditioning installation and water
57.28conditioning servicing only while under the direct supervision of a master plumber,
57.29journeyman plumber, restricted master plumber, restricted journeyman plumber, water
57.30conditioning master, or water conditioning journeyman. The master or journeyman is
57.31responsible for ensuring that all water conditioning work performed by the plumber's
57.32apprentice complies with the plumbing code and rules adopted under sections 326B.50 to
57.33326B.59 . The supervising master or journeyman must be licensed and must be employed
57.34by the same employer as the plumber's apprentice. Licensed individuals shall not permit
58.1plumber's apprentices to perform water conditioning work except under the direct supervision
58.2of an individual actually licensed to perform such work. Plumber's apprentices shall not
58.3supervise the performance of plumbing work or make assignments of plumbing work to
58.4unlicensed individuals.
58.5(b) Water conditioning contractors employing plumber's apprentices to perform water
58.6conditioning work shall maintain records establishing compliance with this subdivision that
58.7shall identify all plumber's apprentices performing water conditioning work, and shall permit
58.8the department to examine and copy all such records.

58.9    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 that all
58.16water conditioning installation work performed by the unlicensed individual complies with
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 water
58.20conditioning master.
58.21(c) Water conditioning contractors employing registered unlicensed individuals to perform
58.22water conditioning installation work shall maintain records establishing compliance with
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 eligible to
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 unlicensed
58.29individual may be applied to the practical experience requirement. However, none of this
58.30practical experience may be applied if the unlicensed individual did not have any practical
58.31experience in the 12-month period immediately prior to becoming a registered unlicensed
58.32individual.
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, and
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. Applications
59.7for initial registration may be submitted at any time. Registration must be renewed annually
59.8and shall be for the period from July 1 of each year to June 30 of the following year.

59.9    Sec. 15. Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:
59.10    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
59.11the meanings given them.
59.12    (b) "Gross annual receipts" means the total amount derived from residential contracting
59.13or residential remodeling activities, regardless of where the activities are performed, and
59.14must not be reduced by costs of goods sold, expenses, losses, or any other amount.
59.15    (c) "Licensee" means a person licensed as a residential contractor or residential remodeler.
59.16    (d) "Residential real estate" means a new or existing building constructed for habitation
59.17by one to four families, and includes detached garages intended for storage of vehicles
59.18associated with the residential real estate.
59.19    (e) "Fund" means the contractor recovery fund.
59.20(f) "Owner" when used in connection with real property, means a person who has any
59.21legal or equitable interest in real property and includes a condominium or townhome
59.22association that owns common property located in a condominium building or townhome
59.23building or an associated detached garage. Owner does not include any real estate developer
59.24or any owner using, or intending to use, the property for a business purpose and not as
59.25owner-occupied residential real estate.

59.26    Sec. 16. Minnesota Statutes 2016, section 326B.89, subdivision 5, is amended to read:
59.27    Subd. 5. Payment limitations. The commissioner shall not pay compensation from the
59.28fund to an owner or a lessee in an amount greater than $75,000 per licensee. The
59.29commissioner shall not pay compensation from the fund to owners and lessees in an amount
59.30that totals more than $150,000 $300,000 per licensee. The commissioner shall only pay
59.31compensation from the fund for a final judgment that is based on a contract directly between
60.1the licensee and the homeowner or lessee that was entered into prior to the cause of action
60.2and that requires licensure as a residential building contractor or residential remodeler.

60.3    Sec. 17. Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is
60.4amended to read:
60.5
Subd. 2.Workers' Compensation
15,226,000
17,782,000
60.6This appropriation is from the workers'
60.7compensation fund.
60.8$4,000,000 in fiscal year 2016 and $6,000,000
60.9in fiscal year 2017 are for workers'
60.10compensation system upgrades and are
60.11available through June 30, 2021. The base
60.12appropriation for this purpose is $3,000,000
60.13in fiscal year 2018 and $3,000,000 in fiscal
60.14year 2019. The base appropriation for fiscal
60.15year 2020 and beyond is zero.
60.16This appropriation includes funds for
60.17information technology project services and
60.18support subject to the provisions of Minnesota
60.19Statutes, section 16E.0466. Any ongoing
60.20information technology costs will be
60.21incorporated into the service level agreement
60.22and will be paid to the Office of MN.IT
60.23Services by the commissioner of labor and
60.24industry under the rates and mechanism
60.25specified in that agreement.

60.26    Sec. 18. Laws 2017, chapter 68, article 1, section 1, is amended to read:
60.27    Section 1. Minnesota Statutes 2016, section 181A.04, subdivision 6, is amended to read:
60.28    Subd. 6. Time of day, high school students. A high school student must not be permitted
60.29to work after 11:00 p.m. on an evening before a school day or before 5:00 a.m. on a school
60.30day, except:
60.31(1) as permitted by section 181A.07, subdivisions 1, 2, 3, and 4; or
61.1(2) for this subdivision does not apply to a high school student age 18 or older, if unless
61.2the student provides a written request for the hours restrictions to the employer to work
61.3during the restricted hours. at least two weeks before any restricted hours begin; or
61.4(3) if a high school student under the age of 18 has supplied the employer with a note
61.5signed by the parent or guardian of the student, the student may be permitted to work until
61.611:30 p.m. on the evening before a school day and beginning at 4:30 a.m. on a school day.
61.7For the purpose of this subdivision, a high school student does not include a student
61.8enrolled in an alternative education program approved by the commissioner of education
61.9or an area learning center, including area learning centers under sections 123A.05 to 123A.08
61.10or according to section 122A.163.

61.11    Sec. 19. REPEALER.
61.12Minnesota Statutes 2016, section 326B.89, subdivision 14, is repealed.

61.13ARTICLE 3
61.14WORKERS' COMPENSATION ADVISORY COUNCIL; DEPARTMENT
61.15PROPOSALS

61.16    Section 1. Minnesota Statutes 2016, section 176.135, is amended by adding a subdivision
61.17to read:
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 this
61.31chapter; and
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 chapter.
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, and
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. The
62.10department must post a directory of the designated employees on the department's Web site.
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 any
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 provided
62.20in clauses (1) to (3):
62.21(1) for failure to comply with the requirements in paragraph (b), the commissioner may
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, or
62.26hospital's designated employee that required training is available, the commissioner may
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 assess
62.30a penalty of $3,000. The commissioner shall not assess a penalty under both this clause and
62.31section 176.194, subdivision 3, clause (6), for failure to respond to the same department
62.32inquiry.
62.33EFFECTIVE DATE.This section is effective October 1, 2017.

63.1    Sec. 2. Minnesota Statutes 2016, section 176.1362, subdivision 1, is amended to read:
63.2    Subdivision 1. Payment based on Medicare MS-DRG system. (a) Except as provided
63.3in subdivisions 2 and 3, the maximum reimbursement for inpatient hospital services, articles,
63.4and supplies is 200 percent of the amount calculated for each hospital under the federal
63.5Inpatient Prospective Payment System developed for Medicare, using the inpatient Medicare
63.6PC-Pricer program for the applicable MS-DRG as provided in paragraph (b) this subdivision.
63.7All adjustments included in the PC-Pricer program are included in the amount calculated,
63.8including but not limited to any outlier payments.
63.9(b) Payment under this section is effective for services, articles, and supplies provided
63.10to patients discharged from the hospital on or after January 1, 2016. Payment for services,
63.11articles, and supplies provided to patients discharged on January 1, 2016, through December
63.1231, 2016, must be based on the Medicare PC-Pricer program in effect on January 1, 2016.
63.13(c) For patients discharged on or after the effective date of this section, payment for
63.14inpatient services, articles, and supplies for patients discharged in each calendar year
63.15thereafter must be based on calculated according to the PC-Pricer program in effect on
63.16January 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 on the
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. If no
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.
63.30(c) (f) Hospitals must bill workers' compensation insurers using the same codes, formats,
63.31and details that are required for billing for hospital inpatient services by the Medicare
63.32program. The bill must be submitted to the insurer within the time period required by section
64.162Q.75, subdivision 3 . For purposes of this section, "insurer" includes both workers'
64.2compensation insurers and self-insured employers.
64.3EFFECTIVE DATE.This section is effective the day following final enactment.

64.4    Sec. 3. Minnesota Statutes 2016, section 176.1362, subdivision 2, is amended to read:
64.5    Subd. 2. Payment for catastrophic, high-cost injuries. (a) If the hospital's total usual
64.6and customary charges for services, articles, and supplies for a patient's hospitalization
64.7exceed a threshold of $175,000, annually adjusted as provided in paragraph (b),
64.8reimbursement must not be based on the MS-DRG system, but must instead be paid at 75
64.9percent 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.
64.11(b) Beginning On January 1, 2017, and each January 1 thereafter, the commissioner
64.12must adjust the previous year's threshold by the percent change in average total charges per
64.13inpatient case, using data available as of October 1 for non-Critical Access Hospitals from
64.14the Health Care Cost Information System maintained by the Department of Health pursuant
64.15to 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 1. The
64.17commissioner must annually publish notice of the updated threshold in the State Register.
64.18EFFECTIVE DATE.This section is effective the day following final enactment.

64.19    Sec. 4. Minnesota Statutes 2016, section 176.275, subdivision 1, is amended to read:
64.20    Subdivision 1. Filing. If a document is required to be filed by this chapter or any rules
64.21adopted pursuant to authority granted by this chapter, the filing shall be completed by the
64.22receipt of the document at the division, department, office, or the court of appeals. The
64.23division, department, office, and the court of appeals shall accept any document which has
64.24been delivered to it for legal filing, but may refuse to accept any form or document that
64.25lacks the name of the injured employee, employer, or insurer, the date of injury, or the
64.26injured employee's Social Security number information required by statute or rule. The
64.27division, department, office, and court of appeals are not required to maintain, and may
64.28destroy, a duplicate of a form or document that has already been filed. If a workers'
64.29compensation identification number has been assigned by the department, it may be
64.30substituted for the Social Security number on a form or document. If the injured employee
64.31has fewer than three days of lost time from work, the party submitting the required document
64.32must attach to it, at the time of filing, a copy of the first report of injury.
65.1A notice or other document required to be served or filed at either the department, the
65.2office, or the court of appeals which is inadvertently served or filed at the wrong one of
65.3these agencies shall be deemed to have been served or filed with the proper agency. The
65.4receiving agency shall note the date of receipt of a document and shall forward the documents
65.5to the proper agency no later than two working days following receipt.

65.6    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
65.9otherwise as the commissioner or the chief administrative law judge may by rule direct.
65.10Where service is by mail, service is effected at the time mailed if properly addressed and
65.11stamped. If it is so mailed, it is presumed the paper or notice reached the party to be served.
65.12However, a party may show by competent evidence that that party did not receive it or that
65.13it had been delayed in transit for an unusual or unreasonable period of time. In case of
65.14nonreceipt or delay, an allowance shall be made for the party's failure to assert a right within
65.15the prescribed time.
65.16    Subd. 2. Electronic service and filing. (a) Where a statute or rule authorizes or requires
65.17a document to be filed with or served on an agency, the document may be filed electronically
65.18if electronic filing is authorized by the agency and if the document is transmitted in the
65.19manner 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 be provided
65.21or served on another person or party, the document filed electronically with the agency and
65.22provided or served on the other person or party must contain the same information in the
65.23format required by the commissioner.
65.24(b) Where a statute or rule authorizes or requires a person's signature on a document to
65.25be 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
65.27signature is transmitted in the manner and format specified by the agency. The commissioner
65.28may require that a document authorized or required to be filed with the commissioner,
65.29department, or division be filed electronically in the manner and format specified by the
65.30commissioner, except that an employee must not be required to file a document electronically
65.31unless the document is filed by an attorney on behalf of an employee. An agency may serve
65.32a document electronically if the recipient agrees to receive it in an electronic format. The
65.33department 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 to
66.3receive it in an electronic format. The date of electronic service of a document is the date
66.4the recipient is sent a document electronically, or the date the recipient is notified that the
66.5document is available on a Web site, whichever occurs first.
66.6(d) When the electronic filing of a legal document with the department marks the
66.7beginning of a prescribed time for another party to assert a right, the prescribed time for
66.8another party to assert a right shall be lengthened by two calendar days when it can be shown
66.9that service to the other party was by mail.
66.10    Subd. 3. Proof of service. The commissioner and the chief administrative law judge
66.11shall ensure that proof of service of all papers and notices served by their respective agencies
66.12is placed in the official file of the case.
66.13    Subd. 4. Definitions; applicability. (a) For purposes of this section, "agency" means
66.14the workers' compensation division, the Department of Labor and Industry, the commissioner
66.15of the Department of Labor and Industry, the Office of Administrative Hearings, the chief
66.16administrative law judge, or the Workers' Compensation Court of Appeals. "Document"
66.17includes documents, reports, notices, orders, papers, forms, information, and data elements
66.18that are authorized or required to be filed with an agency or the commissioner or that are
66.19authorized 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.
66.21(b) Except as otherwise modified by this section, the provisions of chapter 325L apply
66.22to electronic signatures and the electronic transmission of documents under this section.

66.23    Sec. 6. Minnesota Statutes 2016, section 176.541, subdivision 1, is amended to read:
66.24    Subdivision 1. Application of chapter to state employees. This chapter applies to the
66.25employees of any department of this state as defined in section 3.732, subdivision 1, clause
66.26(1).

66.27    Sec. 7. Minnesota Statutes 2016, section 176.541, is amended by adding a subdivision to
66.28read:
66.29    Subd. 7a. Exceptions. This section does not apply to the University of Minnesota.

67.1    Sec. 8. Minnesota Statutes 2016, section 176.541, subdivision 8, is amended to read:
67.2    Subd. 8. State may insure. The state of Minnesota may elect to insure its liability under
67.3the workers' compensation law for persons employed under the federal Emergency
67.4Employment Act of 1971, as amended, and the Comprehensive Employment and Training
67.5Act of 1973, as amended Workforce Innovation and Opportunity Act, and similar programs,
67.6with an insurer properly licensed in Minnesota.

67.7    Sec. 9. Minnesota Statutes 2016, section 176.611, subdivision 2, is amended to read:
67.8    Subd. 2. State departments. Every department of the state, including the University of
67.9Minnesota, shall reimburse the fund for money paid for its claims and the costs of
67.10administering the revolving fund at such times and in such amounts as the commissioner
67.11of administration shall certify has been paid out of the fund on its behalf. The heads of the
67.12departments shall anticipate these payments by including them in their budgets. In addition,
67.13the commissioner of administration, with the approval of the commissioner of management
67.14and budget, may require an agency to make advance payments to the fund sufficient to
67.15cover the agency's estimated obligation for a period of at least 60 days. Reimbursements
67.16and other money received by the commissioner of administration under this subdivision
67.17must be credited to the state compensation revolving fund.

67.18    Sec. 10. REPEALER.
67.19Minnesota Statutes 2016, section 176.541, subdivision 7, is repealed.

67.20    Sec. 11. EFFECTIVE DATE.
67.21This article is effective the day following final enactment.

67.22ARTICLE 4
67.23WORKERS' COMPENSATION ADVISORY COUNCIL; SPECIAL
67.24COMPENSATION FUND

67.25    Section 1. [176.1292] FORBEARANCE OF AMOUNTS OWED TO THE SPECIAL
67.26COMPENSATION FUND.
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 42, sections
68.4401 to 434. Retirement benefits include retirement annuities, optional annuities received in
68.5lieu of retirement benefits, and any other benefit or annuity paid by a government benefit
68.6program that is not clearly identified as a disability benefit or disability annuity in the
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 total
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, past
68.18and future permanent total disability benefits calculated without any reduction for retirement
68.19benefits received by the employees, from the date the employees' benefits were first reduced;
68.20and
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 have
68.23received if the benefits had been calculated without any reduction for retirement benefits
68.24received by the employees.
68.25    (c) A payer may take a credit against its obligations under paragraph (b), clauses (2) and
68.26(3), for:
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 time frame
68.32may apply to a claim.
69.1(1) No later than 150 days following final enactment, the payer must begin paying the
69.2recalculated permanent total disability benefit amounts to employees who are entitled to
69.3ongoing permanent total disability benefits.
69.4(2) No later than 210 days following final enactment, the payer must pay employees the
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 underpaid.
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 employee;
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 1,
69.152000;
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 benefits
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 approved
69.23by a compensation judge, explicitly states the employee's permanent total disability benefits
69.24may be reduced by specified retirement benefits. Paragraphs (a) to (d) apply if a court order
69.25or stipulation for settlement is ambiguous about whether the employee's permanent total
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 (5) was
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 of
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 August
70.513, 2014, to the extent the special compensation fund denied reimbursement due to the
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 permanent
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 any
70.14reason other than reduction of permanent total disability benefits by the employee's retirement
70.15benefits.
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 the
70.18requirements of subdivision 2, paragraphs (a) to (d), is not required to pay past or future
70.19assessments under section 176.129 on the amount of increased or additional permanent total
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
70.22reduction.
70.23(b) The special compensation fund shall not recalculate assessments previously paid by
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 13, 2014.
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
70.30if:
70.31(1) the payer complies with the requirements of subdivision 2, paragraphs (a) to (d); and
70.32(2) due to the elimination of the retirement benefit reduction, the payer repaid the special
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 before
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), and an
71.5itemization by claim of the amount repaid or paid to the special compensation fund as
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 payer
71.9repaid or paid the special compensation fund as described in paragraph (a), clause (2).
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 (d), are
71.13not to be construed as an admission of liability by the payer in any proceeding. The payments
71.14cannot be used to justify additional claims; they represent a compromise between the payer
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, or
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 in
71.20subdivision 2, paragraph (e), clauses (4) and (5), with respect to the additional benefits,
71.21claims, and penalties, and any future permanent total disability benefits payable, subject to
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, the
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 for
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 the
71.33employee, the payer is not entitled to the relief provided in subdivision 4 as applied to the
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 against
72.2an employee's future permanent total disability benefits if the only additional claims asserted
72.3by the employee under paragraph (b) are for attorney fees, costs and disbursements, and an
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 chapter or
72.10other law. A payer must report supplementary benefits as permanent total disability benefits
72.11if the supplementary benefits were paid because the permanent total disability benefits were
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 paid an
72.15employee, dependent, or legal heir, as required by subdivision 2, the payer is subject to the
72.16following:
72.17(1) the payer must issue payment to the employee, dependent, or legal heir within 14
72.18days of the date the payer discovers the noncompliance or the date the department notifies
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 to
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 benefits
72.28underpaid; and
72.29(5) if the payer is found after a hearing to be liable for increased or additional permanent
72.30total disability benefits because the employee's permanent total disability benefits were
72.31improperly reduced by his or her retirement benefits, the compensation judge shall assess
72.32a penalty against the payer, payable to the employee or dependent, up to the total amount
72.33of the permanent total disability benefits that were not paid pursuant to subdivision 2. The
73.1compensation judge may issue a penalty against the payer, up to the total amount of the
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
73.7subdivision 2.
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 with
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.

73.12ARTICLE 5
73.13WORKERS' COMPENSATION ADVISORY COUNCIL; WORKERS'
73.14COMPENSATION INTERVENTION

73.15    Section 1. Minnesota Statutes 2016, section 176.361, subdivision 2, is amended to read:
73.16    Subd. 2. Written motion. A person desiring to intervene in a workers' compensation
73.17case as a party, including but not limited to a health care provider who has rendered services
73.18to an employee or an insurer who has paid benefits under section 176.191, shall submit a
73.19timely written motion to intervene to the commissioner, the office, or to the court of appeals,
73.20whichever is applicable.
73.21    (a) The motion must be served on all parties, except for other intervenors, either
73.22personally, by first class mail, or by registered mail, return receipt requested. A motion to
73.23intervene must be served and filed within 60 days after a potential intervenor has been
73.24served with notice of a right to intervene or within 30 days of notice of an administrative
73.25conference or expedited hearing. Upon the filing of a timely motion to intervene, the potential
73.26intervenor shall be granted intervenor status without the need for an order. Objections to
73.27the intervention may be subsequently addressed by a compensation judge. Where a motion
73.28to intervene is not timely filed under this section, the potential intervenor interest shall be
73.29extinguished and the potential intervenor may not collect, or attempt to collect, the
73.30extinguished interest from the employee, employer, insurer, or any government program.
73.31    (b) The motion must show how the applicant's legal rights, duties, or privileges may be
73.32determined or affected by the case; state the grounds and purposes for which intervention
74.1is sought; and indicate the statutory right to intervene. The motion must be accompanied
74.2by the following:
74.3    (1) an itemization of disability payments showing the period during which the payments
74.4were or are being made; the weekly or monthly rate of the payments; and the amount of
74.5reimbursement claimed;
74.6    (2) a summary of the medical or treatment payments, or rehabilitation services provided
74.7by the Vocational Rehabilitation Unit, broken down by creditor, showing the total bill
74.8submitted, the period of treatment or rehabilitation covered by that bill, the amount of
74.9payment on that bill, and to whom the payment was made;
74.10    (3) copies of all medical or treatment bills for which payment is sought;
74.11    (4) copies of the work sheets or other information stating how the payments on medical
74.12or treatment bills were calculated;
74.13    (5) a copy of the relevant policy or contract provisions upon which the claim for
74.14reimbursement is based;
74.15    (6) the name and telephone number of the person representing the intervenor who has
74.16authority to represent the intervenor, including but not limited to the authority to reach a
74.17settlement of the issues in dispute;
74.18    (7) proof of service or copy of the registered mail receipt evidencing service on all parties
74.19except for other intervenors;
74.20    (8) at the option of the intervenor, a proposed stipulation which states that all of the
74.21payments for which reimbursement is claimed are related to the injury or condition in dispute
74.22in the case and that, if the petitioner is successful in proving the compensability of the claim,
74.23it is agreed that the sum be reimbursed to the intervenor; and
74.24    (9) if represented by an attorney, the name, address, telephone number, and Minnesota
74.25Supreme Court license number of the attorney.

74.26    Sec. 2. Minnesota Statutes 2016, section 176.361, subdivision 3, is amended to read:
74.27    Subd. 3. Stipulation. If the person submitting the filing a timely motion to intervene
74.28has included a proposed stipulation, all parties shall either execute and return the signed
74.29stipulation to the intervenor who must file it with the division or judge or serve upon the
74.30intervenor and all other parties and file with the division specific and detailed objections to
74.31any services rendered or payments made by the intervenor which are not conceded to be
74.32correct and related to the injury or condition the petitioner has asserted is compensable. If
75.1a party has not returned the signed stipulation or filed specific and detailed objections within
75.230 days of service of the motion to intervene, the intervenor's right to reimbursement for
75.3the amount sought is deemed established provided that the petitioner's claim is determined
75.4to be compensable. The office may establish procedures for filing objections if a timely
75.5motion to intervene is filed less than 30 days before a scheduled hearing.

75.6    Sec. 3. Minnesota Statutes 2016, section 176.521, is amended by adding a subdivision to
75.7read:
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, is not
75.11signed by an intervenor, the partial stipulation must include a statement that the parties were
75.12unable to:
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 the
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 that
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 a written
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 the
75.29merits of the intervenor's claim.
75.30(c) Within ten days after service of a partial stipulation for settlement and notice of an
75.31intent to file for approval by a compensation judge, a nonsigning intervenor may serve and
75.32file a written objection to approval of the partial stipulation, which filing must provide a
76.1detailed and case-specific factual basis establishing that approval of the partial stipulation
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 for
76.5settlement which conforms with this section. An affidavit of service must accompany the
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 of
76.10the award shall be accompanied by notice to the intervenors and other parties of their right
76.11to request amended findings within a period of 30 days following the date of issuance in
76.12conformity with applicable law.
76.13(f) If the compensation judge has a reasonable belief that approval of the partial stipulation
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 adverse
76.16impact.

76.17    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.

76.21ARTICLE 6
76.22EMPLOYMENT AND ECONOMIC DEVELOPMENT

76.23    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 special
76.25revenue fund in the state treasury. The commissioner of management and budget shall credit
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 securities
77.2may be held or be disposed of for cash at the option of the board. The cash receipts of gifts
77.3and donations of cash or capital assets and marketable securities disposed of for cash must
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 account and
77.6any earnings from the marketable securities are earnings of the account. The earnings in
77.7the account are annually appropriated to the board of the Center for Rural Policy and
77.8Development to carry out the duties of the center.
77.9EFFECTIVE DATE.This section is effective the day following final enactment.

77.10    Sec. 2. Minnesota Statutes 2016, section 116J.8731, subdivision 2, is amended to read:
77.11    Subd. 2. Administration. (a) Except as otherwise provided in this section, the
77.12commissioner shall administer the fund as part of the Small Cities Development Block
77.13Grant Program and funds shall be made available to local communities and recognized
77.14Indian tribal governments in accordance with the rules adopted for economic development
77.15grants in the small cities community development block grant program. All units of general
77.16purpose local government are eligible applicants for Minnesota investment funds. The
77.17commissioner may provide forgivable loans directly to a private enterprise and not require
77.18a local community or recognized Indian tribal government application other than a resolution
77.19supporting the assistance.
77.20(b) Eligible applicants for the state-funded portion of the fund also include development
77.21authorities as defined in section 116J.552, subdivision 4, provided that the governing body
77.22of 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. The
77.24commissioner may also make funds available within the department for eligible expenditures
77.25under subdivision 3, clause (2).
77.26(c) A home rule charter or statutory city, county, or town may loan or grant money
77.27received from repayment of funds awarded under this section to a regional development
77.28commission, other regional entity, or statewide community capital fund as determined by
77.29the commissioner, to capitalize or to provide the local match required for capitalization of
77.30a regional or statewide revolving loan fund.

78.1    Sec. 3. Minnesota Statutes 2016, section 116J.8731, is amended by adding a subdivision
78.2to read:
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.

78.6    Sec. 4. Minnesota Statutes 2016, section 116J.8748, subdivision 1, is amended to read:
78.7    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
78.8the meanings given.
78.9(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement
78.10under section 116J.994 that must include, but is not limited to: specification of the duration
78.11of the agreement, job goals and a timeline for achieving those goals over the duration of
78.12the agreement, construction and other investment goals and a timeline for achieving those
78.13goals over the duration of the agreement, and the value of benefits the firm may receive
78.14following achievement of capital investment and employment goals. The local government
78.15and business must report to the commissioner on the business performance using the forms
78.16developed by the commissioner.
78.17(c) "Business" means an individual, corporation, partnership, limited liability company,
78.18association, or other entity.
78.19(d) "Capital investment" means money that is expended for the purpose of building or
78.20improving real fixed property where employees under paragraphs (g) and (h) are or will be
78.21employed and also includes construction materials, services, and supplies, and the purchase
78.22and installation of equipment and machinery as provided under subdivision 4, paragraph
78.23(b), clause (5).
78.24(e) "Commissioner" means the commissioner of employment and economic development.
78.25(f) "Minnesota job creation fund business" means a business that is designated by the
78.26commissioner 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.
78.29(g) (h) "New full-time employee" means an employee who:
78.30(1) begins work at a Minnesota job creation fund business facility noted in a business
78.31subsidy agreement and following the designation as a job creation fund business; and
78.32(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 under
79.2the Americans with Disabilities Act, United States Code, title 42, section 12102.
79.3(h) (j) "Retained job" means a full-time position:
79.4(1) that existed at the facility prior to the designation as a job creation fund business;
79.5and
79.6(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.
79.8(i) (l) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).

79.9    Sec. 5. Minnesota Statutes 2016, section 116J.8748, subdivision 3, is amended to read:
79.10    Subd. 3. Minnesota job creation fund business designation; requirements. (a) To
79.11receive designation as a Minnesota job creation fund business, a business must satisfy all
79.12of the following conditions:
79.13(1) the business is or will be engaged in, within Minnesota, one of the following as its
79.14primary business activity:
79.15(i) manufacturing;
79.16(ii) warehousing;
79.17(iii) distribution;
79.18(iv) information technology;
79.19(v) finance;
79.20(vi) insurance; or
79.21(vii) professional or technical services;
79.22(2) the business must not be primarily engaged in lobbying; gambling; entertainment;
79.23professional sports; political consulting; leisure; hospitality; or professional services provided
79.24by attorneys, accountants, business consultants, physicians, or health care consultants, or
79.25primarily engaged in making retail sales to purchasers who are physically present at the
79.26business's location;
79.27(3) the business must enter into a binding construction and job creation business subsidy
79.28agreement 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
79.30capital investment in a capital investment project that includes a new, expanded, or remodeled
80.1facility within one year following designation as a Minnesota job creation fund business or
80.2$250,000 if the project is located outside the metropolitan area as defined in section 200.02,
80.3subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans,
80.4women, or persons with a disability; and:
80.5(i) create at least ten new full-time employee positions within two years of the benefit
80.6date 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 outside the
80.8metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business
80.9is cumulatively owned by minorities, veterans, women, or persons with a disability; or
80.10(ii) expend at least $25,000,000, which may include the installation and purchase of
80.11machinery and equipment, in capital investment and retain at least 200 employees for projects
80.12located in the metropolitan area as defined in section 200.02, subdivision 24, and 75
80.13employees for projects located outside the metropolitan area;
80.14(4) positions or employees moved or relocated from another Minnesota location of the
80.15Minnesota job creation fund business must not be included in any calculation or determination
80.16of job creation or new positions under this paragraph; and
80.17(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the
80.18working hours of an employee for the purpose of hiring an individual to satisfy job creation
80.19goals under this subdivision.
80.20(b) Prior to approving the proposed designation of a business under this subdivision, the
80.21commissioner shall consider the following:
80.22(1) the economic outlook of the industry in which the business engages;
80.23(2) the projected sales of the business that will be generated from outside the state of
80.24Minnesota;
80.25(3) how the business will build on existing regional, national, and international strengths
80.26to diversify the state's economy;
80.27(4) whether the business activity would occur without financial assistance;
80.28(5) whether the business is unable to expand at an existing Minnesota operation due to
80.29facility or land limitations;
80.30(6) whether the business has viable location options outside Minnesota;
80.31(7) the effect of financial assistance on industry competitors in Minnesota;
80.32(8) financial contributions to the project made by local governments; and
81.1(9) any other criteria the commissioner deems necessary.
81.2(c) Upon receiving notification of local approval under subdivision 2, the commissioner
81.3shall review the determination by the local government and consider the conditions listed
81.4in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local
81.5area to designate a business as a Minnesota job creation fund business.
81.6(d) If the commissioner designates a business as a Minnesota job creation fund business,
81.7the business subsidy agreement shall include the performance outcome commitments and
81.8the expected financial value of any Minnesota job creation fund benefits.
81.9(e) The commissioner may amend an agreement once, upon request of a local government
81.10on behalf of a business, only if the performance is expected to exceed thresholds stated in
81.11the original agreement.
81.12(f) A business may apply to be designated as a Minnesota job creation fund business at
81.13the same location more than once only if all goals under a previous Minnesota job creation
81.14fund agreement have been met and the agreement is completed.

81.15    Sec. 6. Minnesota Statutes 2016, section 116J.8748, subdivision 4, is amended to read:
81.16    Subd. 4. Certification; benefits. (a) The commissioner may certify a Minnesota job
81.17creation fund business as eligible to receive a specific value of benefit under paragraphs (b)
81.18and (c) when the business has achieved its job creation and capital investment goals noted
81.19in its agreement under subdivision 3.
81.20(b) A qualified Minnesota job creation fund business may be certified eligible for the
81.21benefits in this paragraph for up to five years for projects located in the metropolitan area
81.22as defined in section 200.02, subdivision 24, and seven years for projects located outside
81.23the metropolitan area, as determined by the commissioner when considering the best interests
81.24of 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 located
81.26outside the metropolitan area may be for up to seven years in length. The eligibility for the
81.27following benefits begins the date the commissioner certifies the business as a qualified
81.28Minnesota job creation fund business under this subdivision:
81.29(1) up to five percent rebate for projects located in the metropolitan area as defined in
81.30section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan
81.31area, on capital investment on qualifying purchases as provided in subdivision 5 with the
81.32total rebate for a project not to exceed $500,000;
82.1(2) an award of up to $500,000 based on full-time job creation and wages paid as provided
82.2in subdivision 6 with the total award not to exceed $500,000;
82.3(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards
82.4are allowable for projects that have at least $25,000,000 in capital investment and 200 new
82.5employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75
82.6new employees for projects located outside the metropolitan area;
82.7(4) up to $1,000,000 in capital investment rebates are allowable for projects that have
82.8at least $25,000,000 in capital investment and 200 retained employees for projects located
82.9in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for
82.10projects located outside the metropolitan area; and
82.11(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
82.12include the installation and purchases of machinery and equipment. These expenditures are
82.13not eligible for the capital investment rebate provided under subdivision 5.
82.14(c) The job creation award may be provided in multiple years as long as the qualified
82.15Minnesota job creation fund business continues to meet the job creation goals provided for
82.16in its agreement under subdivision 3 and the total award does not exceed $500,000 except
82.17as provided under paragraph (b), clauses (3) and (4).
82.18(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
82.20investment in the project and at least ten full-time jobs have been created and maintained
82.21for at least one year or the retained employees, as provided in paragraph (b), clause (4),
82.22remain for at least one year. The agreement may require additional performance outcomes
82.23that need to be achieved before rebates and awards are provided. If fewer retained jobs are
82.24maintained, but still above the minimum under this subdivision, the capital investment
82.25award shall be reduced on a proportionate basis.
82.26(e) The forms needed to be submitted to document performance by the Minnesota job
82.27creation fund business must be in the form and be made under the procedures specified by
82.28the commissioner. The forms shall include documentation and certification by the business
82.29that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66,
82.30and other provisions as specified by the commissioner.
82.31(f) Minnesota job creation fund businesses must pay each new full-time employee added
82.32pursuant to the agreement total compensation, including benefits not mandated by law, that
82.33on an annualized basis is equal to at least 110 percent of the federal poverty level for a
82.34family of four.
83.1(g) A Minnesota job creation fund business must demonstrate reasonable progress on
83.2its capital investment expenditures within six months following designation as a Minnesota
83.3job creation fund business to ensure that the capital investment goal in the agreement under
83.4subdivision 1 will be met. Businesses not making reasonable progress will not be eligible
83.5for benefits under the submitted application and will need to work with the local government
83.6unit to resubmit a new application and request to be a Minnesota job creation fund business.
83.7Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not
83.8be considered a default of the business subsidy agreement.

83.9    Sec. 7. Minnesota Statutes 2016, section 116J.8748, subdivision 6, is amended to read:
83.10    Subd. 6. Job creation award. (a) A qualified Minnesota job creation fund business is
83.11eligible for an annual award for each new job created and maintained by the business using
83.12the following schedule: $1,000 for each job position paying annual wages at least $26,000
83.13but less than $35,000; $2,000 for each job position paying at least $35,000 but less than
83.14$45,000; and $3,000 for each job position paying at least $45,000; and as noted in the goals
83.15under 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, veterans,
83.18women, or persons with a disability.
83.19(b) The job creation award schedule must be adjusted annually using the percentage
83.20increase in the federal poverty level for a family of four.
83.21(c) Minnesota job creation fund businesses seeking an award credit provided under
83.22subdivision 4 must submit forms and applications to the Department of Employment and
83.23Economic Development as prescribed by the commissioner.

83.24    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 to
83.29central Minnesota communities of color in one or more of the program areas listed in
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
84.5of color.
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 Minnesota
84.8opportunity grant program. The foundation may use up to five percent of grant funds for
84.9administrative costs.
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 alone
84.12or in partnership with another nonprofit organization, in one or more of the following areas:
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 or
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 to
84.20the foundation, using a form developed by the foundation. This grant application must
84.21include:
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 loans;
84.29and
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, software,
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 paragraph
85.11(a); and
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 over
85.16economic development that details the use of grant funds. This report must include data on
85.17the number of individuals served and, to the extent practical, measures of progress toward
85.18achieving the outcomes stated in subdivision 4, paragraph (b), clause (5).

85.19    Sec. 9. Minnesota Statutes 2016, section 116L.17, subdivision 1, is amended to read:
85.20    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
85.21the meanings given them in this subdivision.
85.22    (b) "Commissioner" means the commissioner of employment and economic development.
85.23    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the time
85.24employment ceased or was working in the state at the time employment ceased and:
85.25    (1) has been permanently separated or has received a notice of permanent separation
85.26from public or private sector employment and is eligible for or has exhausted entitlement
85.27to unemployment benefits, and is unlikely to return to the previous industry or occupation;
85.28    (2) has been long-term unemployed and has limited opportunities for employment or
85.29reemployment in the same or a similar occupation in the area in which the individual resides,
85.30including older individuals who may have substantial barriers to employment by reason of
85.31age;
86.1    (3) has been terminated or has received a notice of termination of employment as a result
86.2of a plant closing or a substantial layoff at a plant, facility, or enterprise;
86.3    (4) has been self-employed, including farmers and ranchers, and is unemployed as a
86.4result of general economic conditions in the community in which the individual resides or
86.5because of natural disasters;
86.6    (5) MS 2011 Supp [Expired, 2011 c 84 art 3 s 1]
86.7    (6) (5) is a veteran as defined by section 197.447, has been discharged or released from
86.8active duty under honorable conditions within the last 36 months, and (i) is unemployed or
86.9(ii) is employed in a job verified to be below the skill level and earning capacity of the
86.10veteran;
86.11(7) (6) is an individual determined by the United States Department of Labor to be
86.12covered by trade adjustment assistance under United States Code, title 19, sections 2271 to
86.132331, as amended; or
86.14    (8) (7) is a displaced homemaker. A "displaced homemaker" is an individual who has
86.15spent a substantial number of years in the home providing homemaking service and (i) has
86.16been dependent upon the financial support of another; and now due to divorce, separation,
86.17death, or disability of that person, must find employment to self support; or (ii) derived the
86.18substantial share of support from public assistance on account of dependents in the home
86.19and no longer receives such support. To be eligible under this clause, the support must have
86.20ceased while the worker resided in Minnesota.
86.21For the purposes of this section, "dislocated worker" does not include an individual who
86.22was an employee, at the time employment ceased, of a political committee, political fund,
86.23principal campaign committee, or party unit, as those terms are used in chapter 10A, or an
86.24organization required to file with the federal elections commission.
86.25    (d) "Eligible organization" means a state or local government unit, nonprofit organization,
86.26community action agency, business organization or association, or labor organization.
86.27    (e) "Plant closing" means the announced or actual permanent shutdown of a single site
86.28of employment, or one or more facilities or operating units within a single site of
86.29employment.
86.30    (f) "Substantial layoff" means a permanent reduction in the workforce, which is not a
86.31result of a plant closing, and which results in an employment loss at a single site of
86.32employment during any 30-day period for at least 50 employees excluding those employees
86.33that work less than 20 hours per week.

87.1    Sec. 10. Minnesota Statutes 2016, section 116L.665, is amended to read:
87.2116L.665 WORKFORCE DEVELOPMENT COUNCIL BOARD.
87.3    Subdivision 1. Creation. The governor's Workforce Development Council is created
87.4under the authority of the Workforce Investment Act, United States Code, title 29, section
87.52801, et seq. Local workforce development councils are authorized under the Workforce
87.6Investment Act. The governor's Workforce Development Council serves as Minnesota's
87.7Workforce 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 the
87.9federal Workforce Innovation and Opportunity Act, United States Code, title 29, section
87.103111, and must perform the duties under that act.
87.11    Subd. 2. Membership. (a) The governor's Workforce Development Council Board is
87.12composed of 31 members appointed by the governor. The members may be removed pursuant
87.13to section 15.059. In selecting the representatives of the council board, the governor shall
87.14ensure that 50 percent a majority of the members come from nominations provided by local
87.15workforce councils. Local education representatives shall come from nominations provided
87.16by local education to employment partnerships. The 31 members shall represent the following
87.17sectors: 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, the
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
87.23Development;
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 sectors
87.27of 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
87.30organizations of Minnesota. Community-based organizations are defined by the Workforce
87.31Investment Act as private nonprofit organizations that are representative of communities
87.32or significant segments of communities and that have demonstrated expertise and
87.33effectiveness in the field of workforce investment and may include entities that provide job
88.1training services, serve youth, serve individuals with disabilities, serve displaced
88.2homemakers, union-related organizations, employer-related nonprofit organizations, and
88.3organizations serving nonreservation Indians and tribal governments.
88.4(e) Education: six individuals shall represent the education sector of Minnesota as follows:
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
88.7service-learning;
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
88.11Universities; 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.
88.16The speaker and the minority leader of the house of representatives shall each appoint
88.17a representative to serve as an ex officio member of the council. The majority and minority
88.18leaders of the senate shall each appoint a senator to serve as an ex officio member of the
88.19council.
88.20The governor shall appoint one individual representing public libraries, one individual
88.21with expertise in assisting women in obtaining employment in high-wage, high-demand,
88.22nontraditional occupations, and one individual representing adult basic education programs
88.23to 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
88.25(c).
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, or
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 29,
89.8section 3122(b)(2)(A)(i);
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 in
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
89.17federations; and
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 cities
89.25and counties;
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 and
89.28expertise in addressing the employment, training, or education needs of individuals with
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 the
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
91.2first day of January or July immediately following their appointment. Elected officials shall
91.3forfeit their appointment if they cease to serve in elected office.
91.4(h) Members of the council are compensated as provided in section 15.059, subdivision
91.53
.
91.6    Subd. 2a. Council Board meetings; chair. (a) If compliance with section 13D.02 is
91.7impractical, the Governor's Workforce Development Council may conduct a meeting of its
91.8members by telephone or other electronic means so long as the following conditions are
91.9met:
91.10(1) all members of the council participating in the meeting, wherever their physical
91.11location, 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 hear
91.13clearly all discussion and testimony and all votes of members of the council and, if needed,
91.14receive those services required by sections 15.44 and 15.441;
91.15(3) at least one member of the council is physically present at the regular meeting location;
91.16and
91.17(4) all votes are conducted by roll call, so each member's vote on each issue can be
91.18identified and recorded.
91.19(b) Each member of the council participating in a meeting by telephone or other electronic
91.20means is considered present at the meeting for purposes of determining a quorum and
91.21participating in all proceedings.
91.22(c) If telephone or other electronic means is used to conduct a meeting, the council, to
91.23the extent practical, shall allow a person to monitor the meeting electronically from a remote
91.24location. The council may require the person making such a connection to pay for
91.25documented 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, or
91.27emergency meeting, the council shall provide notice of the regular meeting location, of the
91.28fact that some members may participate by telephone or other electronic means, and of the
91.29provisions of paragraph (c). The timing and method of providing notice is governed by
91.30section 13D.04.
91.31(a) The board shall hold regular in-person meetings at least quarterly and as often as
91.32necessary to perform the duties outlined in the statement of authority and the board's bylaws.
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 submit
92.5a written request for consideration of an agenda item no less than 24 hours in advance of
92.6the meeting. Members of the public may submit a written request within 48 hours of a
92.7meeting to be considered for inclusion in the agenda. Members of the public attending a
92.8meeting of the board may address the board only with the approval or at the request of the
92.9chair.
92.10(c) All meeting notices must be posted on the board's Web site. All meetings of the board
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 the
92.13activities of the board, information regarding membership, and, on request, minutes of
92.14formal meetings of the board.
92.15(d) For the purpose of conducting business before the board at a duly called meeting, a
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
92.18the governor's Job Training Council and assume all of its requirements, duties, and
92.19responsibilities under the Workforce Investment Act. Additionally, the Workforce
92.20Development 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
92.22federal human resource programs and advise the governor on methods of coordinating the
92.23provision of services and the use of funds and resources consistent with the laws and
92.24regulations governing the programs. For purposes of this section, applicable federal and
92.25state 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
92.28Code, 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
93.2Employment and Training Program, United States Code, title 7, section 2015(d)(4); and
93.3(7) programs defined in section 116L.19, subdivision 5.
93.4Additional federal and state programs and resources can be included within the scope
93.5of the council's duties if recommended by the governor after consultation with the council.
93.6(b) Review federal, state, and local education, postsecondary, job skills training, and
93.7youth employment programs, and make recommendations to the governor and the legislature
93.8for establishing an integrated seamless system for providing education and work skills
93.9development services to learners and workers of all ages.
93.10(c) Advise the governor on the development and implementation of statewide and local
93.11performance standards and measures relating to applicable federal human resource programs
93.12and the coordination of performance standards and measures among programs.
93.13(d) Promote education and employment transitions programs and knowledge and skills
93.14of entrepreneurship among employers, workers, youth, and educators, and encourage
93.15employers to provide meaningful work-based learning opportunities.
93.16(e) Evaluate and identify exemplary education and employment transitions programs
93.17and provide technical assistance to local partnerships to replicate the programs throughout
93.18the state.
93.19(f) Advise the governor on methods to evaluate applicable federal human resource
93.20programs.
93.21(g) Sponsor appropriate studies to identify human investment needs in Minnesota and
93.22recommend 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
93.24of a human resource system in Minnesota.
93.25(i) Examine federal and state laws, rules, and regulations to assess whether they present
93.26barriers 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
93.28laws, rules, or regulations concerning employment and training programs that present barriers
93.29to 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
93.31regulations to promote coordinated service delivery.
94.1(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic
94.2plan which details methods for meeting Minnesota's human investment needs and for
94.3developing and coordinating a state human resource system.
94.4(m) Provide the commissioner of employment and economic development and the
94.5committees of the legislature with responsibility for economic development with
94.6recommendations provided to the governor under this subdivision.
94.7(n) In consultation with local workforce councils and the Department of Employment
94.8and Economic Development, develop an ongoing process to identify and address local gaps
94.9in workforce services.
94.10    Subd. 4. Executive committee duties. The executive committee must, with advice and
94.11input of local workforce councils boards and other stakeholders as appropriate, develop
94.12performance standards for the state workforce centers. By January 15, 2002 2019, and each
94.13odd-numbered year thereafter, the executive committee shall submit a report to the senate
94.14and house of representatives committees with jurisdiction over workforce development
94.15programs regarding the performance and outcomes of the workforce centers. The report
94.16must provide recommendations regarding workforce center funding levels and sources,
94.17program changes, and administrative changes.
94.18    Subd. 5. Subcommittees. The chair of the Workforce Development Council Board may
94.19establish subcommittees in order to carry out the duties and responsibilities of the council
94.20board.
94.21    Subd. 6. Staffing. The Department of commissioner of employment and economic
94.22development must provide staff, including but not limited to professional, technical, and
94.23clerical staff to the board necessary to perform the duties assigned to the Minnesota
94.24Workforce 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
94.26board, state government as departments and agencies must provide the board with the
94.27assistance it requires in order to fulfill its duties and responsibilities.
94.28    Subd. 7. Expiration. The council board expires if there is no federal funding for the
94.29human resource programs within the scope of the council's board's duties.
94.30    Subd. 8. Funding. The commissioner shall develop recommendations on a funding
94.31formula for allocating Workforce Investment Act funds to the council with a minimum
94.32allocation of employment and economic development must provide at least $350,000 per
94.33each fiscal year. The commissioner shall report the funding formula recommendations to
95.1the legislature by January 15, 2011 from existing agency resources to the board for staffing
95.2and administrative expenses.

95.3    Sec. 11. Minnesota Statutes 2016, section 116M.14, subdivision 4, is amended to read:
95.4    Subd. 4. Low-income area. "Low-income area" means:
95.5(1) Minneapolis, St. Paul;
95.6(2) those cities in the metropolitan area as defined in section 473.121, subdivision 2,
95.7that have an average income a median income for a family of four that is below 80 percent
95.8of the median income for a four-person family as of the latest report by the United States
95.9Census Bureau; and
95.10(3) the area outside the metropolitan area.

95.11    Sec. 12. Minnesota Statutes 2016, section 116M.17, subdivision 4, is amended to read:
95.12    Subd. 4. Reports. The board department shall submit an annual report to the legislature
95.13of an accounting of loans made under section 116M.18, including information on loans
95.14made, the number of jobs created by the program, the impact on low-income areas, and
95.15recommendations concerning minority business development and jobs for persons in
95.16low-income areas.

95.17    Sec. 13. Minnesota Statutes 2016, section 116M.18, subdivision 1a, is amended to read:
95.18    Subd. 1a. Statewide loans. To the extent there is sufficient eligible demand, loans shall
95.19be made so that an approximately equal dollar amount of loans are made to businesses in
95.20the metropolitan area as in the nonmetropolitan area. After September 30 March 31 of each
95.21calendar fiscal year, the department may allow loans to be made anywhere in the state
95.22without regard to geographic area.

95.23    Sec. 14. Minnesota Statutes 2016, section 116M.18, subdivision 4, is amended to read:
95.24    Subd. 4. Business loan criteria. (a) The criteria in this subdivision apply to loans made
95.25by nonprofit corporations under the program.
95.26(b) Loans must be made to businesses that are not likely to undertake a project for which
95.27loans are sought without assistance from the program.
95.28(c) A loan must be used to support a business owned by a minority or a low-income
95.29person, woman, veteran, or a person with disabilities. Priority must be given for loans to
95.30the lowest income areas.
96.1(d) The minimum state contribution to a loan is $5,000 and the maximum is $150,000.
96.2(e) The state contribution must be matched by at least an equal amount of new private
96.3investment.
96.4(f) A loan may not be used for a retail development project.
96.5(g) The business must agree to work with job referral networks that focus on minority
96.6and 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 payments.

96.9    Sec. 15. Minnesota Statutes 2016, section 116M.18, subdivision 4a, is amended to read:
96.10    Subd. 4a. Microenterprise loan. (a) Program grants may be used to make microenterprise
96.11loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans
96.12are subject to this section except that:
96.13(1) they may also be made to qualified retail businesses;
96.14(2) they may be made for a minimum of $5,000 and a maximum of $35,000;
96.15(3) in a low-income area, they may be made for a minimum of $5,000 and a maximum
96.16of $50,000; and
96.17(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 payments.

96.20    Sec. 16. Minnesota Statutes 2016, section 116M.18, subdivision 8, is amended to read:
96.21    Subd. 8. Reporting requirements. A nonprofit corporation that receives a program
96.22grant shall:
96.23(1) submit an annual report to the board and department by March 30 February 15 of
96.24each year that includes a description of businesses supported by the grant program, an
96.25account of loans made during the calendar year, the program's impact on minority business
96.26enterprises and job creation for minority persons and low-income persons, the source and
96.27amount of money collected and distributed by the program, the program's assets and
96.28liabilities, and an explanation of administrative expenses; and
97.1(2) provide for an independent annual audit to be performed in accordance with generally
97.2accepted accounting practices and auditing standards and submit a copy of each annual
97.3audit report to the department.

97.4    Sec. 17. Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter
97.5189, article 7, section 8, is amended to read:
97.6    Sec. 14. ASSIGNED RISK TRANSFER.
97.7(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an
97.8audit that there is an excess surplus in the assigned risk plan created under Minnesota
97.9Statutes, section 79.252, the commissioner of management and budget shall transfer the
97.10amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer
97.11occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
97.12paragraph (a), clause (1). This is a onetime transfer.
97.13(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce
97.14determines on the basis of an audit that there is an excess surplus in the assigned risk plan
97.15created under Minnesota Statutes, section 79.252, the commissioner of management and
97.16budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year,
97.17to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423.
97.18This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251,
97.19subdivision 1
, paragraph (a), clause (1), but after the transfer transfers authorized in paragraph
97.20paragraphs (a) and (f). The total amount authorized for all transfers under this paragraph
97.21must not exceed $24,100,000. This paragraph expires the day following the transfer in which
97.22the total amount transferred under this paragraph to the Minnesota minerals 21st century
97.23fund equals $24,100,000.
97.24(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an
97.25audit that there is an excess surplus in the assigned risk plan created under Minnesota
97.26Statutes, section 79.252, the commissioner of management and budget shall transfer the
97.27amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
97.28occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
97.29paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a
97.30transfer occurs under this paragraph, the amount transferred is appropriated from the general
97.31fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section
97.3215. Both the transfer and appropriation under this paragraph are onetime.
97.33(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an
97.34audit that there is an excess surplus in the assigned risk plan created under Minnesota
98.1Statutes, section 79.252, the commissioner of management and budget shall transfer the
98.2amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
98.3occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
98.4paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a
98.5transfer occurs under this paragraph, the amount transferred is appropriated from the general
98.6fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section
98.715. Both the transfer and appropriation under this paragraph are onetime.
98.8(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of
98.9management and budget shall transfer to the general fund, any unencumbered or unexpended
98.10balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or
98.11the date the commissioner of commerce determines that an excess surplus in the assigned
98.12risk 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 risk plan
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 year,
98.17to the rural policy and development center fund under Minnesota Statutes, section 116J.4221.
98.18This transfer occurs prior to any transfer under paragraph (b) or under Minnesota Statutes,
98.19section 79.251, subdivision 1, paragraph (a), clause (1). The total amount authorized for all
98.20transfers under this paragraph must not exceed $2,000,000. This paragraph expires the day
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.

98.24    Sec. 18. Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 6, is
98.25amended to read:
98.26
Subd. 6.Vocational Rehabilitation
98.27
Appropriations by Fund
98.28
General
22,611,000
21,611,000
98.29
98.30
Workforce
Development
7,830,000
7,830,000
98.31(a) $10,800,000 each year is from the general
98.32fund for the state's vocational rehabilitation
98.33program under Minnesota Statutes, chapter
98.34268A.
99.1(b) $2,261,000 each year is from the general
99.2fund for grants to centers for independent
99.3living under Minnesota Statutes, section
99.4268A.11 .
99.5(c) $5,745,000 each year from the general fund
99.6and $6,830,000 each year from the workforce
99.7development fund are for extended
99.8employment services for persons with severe
99.9disabilities under Minnesota Statutes, section
99.10268A.15 .
99.11(d) $250,000 in fiscal year 2016 and $250,000
99.12in fiscal year 2017 are for rate increases to
99.13providers of extended employment services
99.14for persons with severe disabilities under
99.15Minnesota Statutes, section 268A.15. This
99.16appropriation is added to the agency's base.
99.17(e) $2,555,000 each year is from the general
99.18fund for grants to programs that provide
99.19employment support services to persons with
99.20mental illness under Minnesota Statutes,
99.21sections 268A.13 and 268A.14.
99.22(f) $1,000,000 each year is from the workforce
99.23development fund for grants under Minnesota
99.24Statutes, section 268A.16, for employment
99.25services for persons, including transition-aged
99.26youth, who are deaf, deafblind, or
99.27hard-of-hearing. If the amount in the first year
99.28is insufficient, the amount in the second year
99.29is available in the first year.
99.30(g) $1,000,000 in fiscal year 2016 is for a
99.31grant to Assistive Technology of Minnesota,
99.32a statewide nonprofit organization that is
99.33exclusively dedicated to the issues of access
99.34to and the acquisition of assistive technology.
100.1The purpose of the grant is to acquire assistive
100.2technology and to work in tandem with
100.3individuals using this technology to create
100.4career 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
100.9equipment. This is a onetime appropriation
100.10and is available until June 30, 2019.
100.11(h) For purposes of this subdivision,
100.12Minnesota Diversified Industries, Inc. is an
100.13eligible provider of services for persons with
100.14severe disabilities under Minnesota Statutes,
100.15section 268A.15.
100.16EFFECTIVE DATE.This section is effective retroactively from July 1, 2015.

100.17    Sec. 19. Laws 2016, chapter 189, article 7, section 46, subdivision 3, is amended to read:
100.18    Subd. 3. Qualification requirements. To qualify for assistance under this section, a
100.19business must:
100.20(1) be located within one of the following municipalities surrounding Lake Mille Lacs:
100.21(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
100.22Roosevelt;
100.23(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of
100.24Malmo, or township of Lakeside; or
100.25(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of
100.26East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
100.27(2) document a reduction of at least ten five percent in gross receipts in any two-year
100.28period since 2010; and
100.29(3) be a business in one of the following industries, as defined within the North American
100.30Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
100.31food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
100.32historical sites, health and personal care, gas station, general merchandise, business and
101.1professional membership, movies, or nonstore retailer, as determined by Mille Lacs County
101.2in consultation with the commissioner of employment and economic development.

101.3    Sec. 20. Laws 2016, chapter 189, article 7, section 46, the effective date, is amended to
101.4read:
101.5EFFECTIVE DATE.This section, except for subdivision 4, is effective July 1, 2016,
101.6and expires June 30, 2017 2018. Subdivision 4 is effective July 1, 2016, and expires on the
101.7date the last loan is repaid or forgiven as provided under this section.

101.8    Sec. 21. EMERGING ENTREPRENEUR PROGRAM APPROPRIATIONS
101.9CANCELLATIONS.
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 189,
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.

101.14    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 current
101.18and future opportunities for rural development, create designs, seek funding from existing
101.19sources, and assist with the implementation of economically, environmentally, and culturally
101.20sensitive projects that respond to current community conditions, needs, capabilities, and
101.21aspirations in support of the selected communities. For the purposes of this section, "greater
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 Minnesota
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.

102.6    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 the
102.9Department of Employment and Economic Development that is due in fiscal year 2018 or
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 under
102.14article 12, section 3.

102.15    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 of
102.19funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20
102.20percent of the balance of that money to the state general fund before June 30, 2018. Any
102.21local entity that does so may then use the remaining 80 percent of the uncommitted money
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.

102.27    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 this
102.30section that provide, repair, or maintain motor vehicles to assist eligible individuals to obtain
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, a motor
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
103.6services:
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 more
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
103.24to:
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;
103.29(v) employers;
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 training
104.5programs.
104.6    Subd. 5. Participant eligibility. (a) To be eligible to receive program services, a person
104.7must:
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 jurisdiction
104.18over workforce and economic development on program outcomes. At a minimum, the report
104.19must include:
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 able
104.26to increase their participation in community activities such as after school programs, other
104.27youth programs, church or civic groups, or library services as a result of participation in the
104.28program; and
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.

105.1    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 of
105.4Benson that uses poultry litter to generate electricity. In conducting the study, the
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 and
105.7services to the biomass facility. The commissioner must report study findings to the
105.8legislature by February 15, 2018.

105.9    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 may
105.17be used for other job creation and economic enhancement opportunities in Minnesota at the
105.18discretion of the commissioner. Grants under this paragraph are not subject to the grant
105.19amount limitation under Minnesota Statutes, section 116J.8731.
105.20(c) Notwithstanding Minnesota Statutes, section 116J.748, in fiscal years 2018 and 2019
105.21only, funds appropriated to the commissioner for the job creation fund may be used for
105.22other job creation and economic enhancement opportunities in Minnesota at the discretion
105.23of the commissioner.

105.24    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.

105.27ARTICLE 7
105.28IRON RANGE RESOURCES AND REHABILITATION POLICY

105.29    Section 1. Minnesota Statutes 2016, section 3.732, subdivision 1, is amended to read:
105.30    Subdivision 1. Definitions. As used in this section and section 3.736 the terms defined
105.31in this section have the meanings given them.
106.1    (1) "State" includes each of the departments, boards, agencies, commissions, courts, and
106.2officers in the executive, legislative, and judicial branches of the state of Minnesota and
106.3includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
106.4Education, the Higher Education Facilities Authority, the Health Technology Advisory
106.5Committee, the Armory Building Commission, the Zoological Board, the Department of
106.6Iron Range Resources and Rehabilitation Board, the Minnesota Historical Society, the State
106.7Agricultural Society, the University of Minnesota, the Minnesota State Colleges and
106.8Universities, state hospitals, and state penal institutions. It does not include a city, town,
106.9county, school district, or other local governmental body corporate and politic.
106.10    (2) "Employee of the state" means all present or former officers, members, directors, or
106.11employees of the state, members of the Minnesota National Guard, members of a bomb
106.12disposal unit approved by the commissioner of public safety and employed by a municipality
106.13defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
106.14similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
106.15municipality but within the state, or persons acting on behalf of the state in an official
106.16capacity, temporarily or permanently, with or without compensation. It does not include
106.17either an independent contractor except, for purposes of this section and section 3.736 only,
106.18a guardian ad litem acting under court appointment, or members of the Minnesota National
106.19Guard while engaged in training or duty under United States Code, title 10, or title 32,
106.20section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
106.21sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
106.22of the state" includes a district public defender or assistant district public defender in the
106.23Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
106.24and any officer, agent, or employee of the state of Wisconsin performing work for the state
106.25of Minnesota pursuant to a joint state initiative.
106.26    (3) "Scope of office or employment" means that the employee was acting on behalf of
106.27the state in the performance of duties or tasks lawfully assigned by competent authority.
106.28    (4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

106.29    Sec. 2. Minnesota Statutes 2016, section 3.736, subdivision 3, is amended to read:
106.30    Subd. 3. Exclusions. Without intent to preclude the courts from finding additional cases
106.31where the state and its employees should not, in equity and good conscience, pay
106.32compensation for personal injuries or property losses, the legislature declares that the state
106.33and its employees are not liable for the following losses:
107.1(a) a loss caused by an act or omission of a state employee exercising due care in the
107.2execution of a valid or invalid statute or rule;
107.3(b) a loss caused by the performance or failure to perform a discretionary duty, whether
107.4or not the discretion is abused;
107.5(c) a loss in connection with the assessment and collection of taxes;
107.6(d) a loss caused by snow or ice conditions on a highway or public sidewalk that does
107.7not abut a publicly owned building or a publicly owned parking lot, except when the condition
107.8is affirmatively caused by the negligent acts of a state employee;
107.9(e) a loss caused by wild animals in their natural state, except as provided in section
107.103.7371 ;
107.11(f) a loss other than injury to or loss of property or personal injury or death;
107.12(g) a loss caused by the condition of unimproved real property owned by the state, which
107.13means land that the state has not improved, state land that contains idled or abandoned mine
107.14pits or shafts, and appurtenances, fixtures, and attachments to land that the state has neither
107.15affixed nor improved;
107.16(h) a loss involving or arising out of the use or operation of a recreational motor vehicle,
107.17as defined in section 84.90, subdivision 1, within the right-of-way of a trunk highway, as
107.18defined in section 160.02, except that the state is liable for conduct that would entitle a
107.19trespasser to damages against a private person;
107.20(i) a loss incurred by a user arising from the construction, operation, or maintenance of
107.21the outdoor recreation system, as defined in section 86A.04, or for a loss arising from the
107.22construction, operation, maintenance, or administration of grants-in-aid trails as defined in
107.23section 85.018, or for a loss arising from the construction, operation, or maintenance of a
107.24water access site created by the Department of Iron Range Resources and Rehabilitation
107.25Board, except that the state is liable for conduct that would entitle a trespasser to damages
107.26against a private person. For the purposes of this clause, a water access site, as defined in
107.27section 86A.04 or created by the commissioner of Iron Range resources and rehabilitation
107.28Board, that provides access to an idled, water filled mine pit, also includes the entire water
107.29filled area of the pit and, further, includes losses caused by the caving or slumping of the
107.30mine pit walls;
107.31(j) a loss of benefits or compensation due under a program of public assistance or public
107.32welfare, except if state compensation for loss is expressly required by federal law in order
107.33for the state to receive federal grants-in-aid;
108.1(k) a loss based on the failure of a person to meet the standards needed for a license,
108.2permit, or other authorization issued by the state or its agents;
108.3(l) a loss based on the usual care and treatment, or lack of care and treatment, of a person
108.4at a state hospital or state corrections facility where reasonable use of available appropriations
108.5has been made to provide care;
108.6(m) loss, damage, or destruction of property of a patient or inmate of a state institution
108.7except as provided under section 3.7381;
108.8(n) a loss for which recovery is prohibited by section 169A.48, subdivision 2;
108.9(o) a loss caused by an aeration, bubbler, water circulation, or similar system used to
108.10increase dissolved oxygen or maintain open water on the ice of public waters, that is operated
108.11under a permit issued by the commissioner of natural resources;
108.12(p) a loss incurred by a visitor to the Minnesota Zoological Garden, except that the state
108.13is liable for conduct that would entitle a trespasser to damages against a private person;
108.14(q) a loss arising out of a person's use of a logging road on public land that is maintained
108.15exclusively to provide access to timber on that land by harvesters of the timber, and is not
108.16signed or otherwise held out to the public as a public highway; and
108.17(r) a loss incurred by a user of property owned, leased, or otherwise controlled by the
108.18Minnesota National Guard or the Department of Military Affairs, except that the state is
108.19liable for conduct that would entitle a trespasser to damages against a private person.
108.20The state will not pay punitive damages.

108.21    Sec. 3. Minnesota Statutes 2016, section 15.01, is amended to read:
108.2215.01 DEPARTMENTS OF THE STATE.
108.23The following agencies are designated as the departments of the state government: the
108.24Department of Administration; the Department of Agriculture; the Department of Commerce;
108.25the Department of Corrections; the Department of Education; the Department of Employment
108.26and 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
108.28Industry; the Department of Management and Budget; the Department of Military Affairs;
108.29the Department of Natural Resources; the Department of Public Safety; the Department of
108.30Human Services; the Department of Revenue; the Department of Transportation; the
108.31Department of Veterans Affairs; and their successor departments.

109.1    Sec. 4. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:
109.2    Subd. 7. Department of Iron Range Resources and Rehabilitation Board. After
109.3seeking a recommendation from the Iron Range Resources and Rehabilitation Board, the
109.4commissioner of Iron Range resources and rehabilitation Board may purchase insurance it
109.5considers the commissioner deems necessary and appropriate to insure facilities operated
109.6by the board commissioner.

109.7    Sec. 5. Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:
109.8    Subd. 3. Group II salary limits. The salary for a position listed in this subdivision shall
109.9not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
109.10on January 1. The new limit must equal the limit for the prior year increased by the percentage
109.11increase, if any, in the Consumer Price Index for all urban consumers from October of the
109.12second prior year to October of the immediately prior year. The commissioner of management
109.13and budget must publish the limit on the department's Web site. This subdivision applies
109.14to the following positions:
109.15    Executive director of Gambling Control Board;
109.16    Commissioner, of Iron Range resources and rehabilitation Board;
109.17    Commissioner, Bureau of Mediation Services;
109.18    Ombudsman for Mental Health and Developmental Disabilities;
109.19    Chair, Metropolitan Council;
109.20    School trust lands director;
109.21    Executive director of pari-mutuel racing; and
109.22    Commissioner, Public Utilities Commission.

109.23    Sec. 6. Minnesota Statutes 2016, section 43A.02, subdivision 22, is amended to read:
109.24    Subd. 22. Executive branch. "Executive branch" means heads of all agencies of state
109.25government, elective or appointive, established by statute or Constitution and all employees
109.26of those agency heads who have within their particular field of responsibility statewide
109.27jurisdiction and who are not within the legislative or judicial branches of government. The
109.28executive branch also includes employees of the Department of Iron Range Resources and
109.29Rehabilitation Board. The executive branch does not include agencies with jurisdiction in
109.30specifically defined geographical areas, such as regions, counties, cities, towns,
109.31municipalities, or school districts, the University of Minnesota, the Public Employees
110.1Retirement Association, the Minnesota State Retirement System, the Teachers Retirement
110.2Association, the Minnesota Historical Society, and all of their employees, and any other
110.3entity which is incorporated, even though it receives state funds.

110.4    Sec. 7. Minnesota Statutes 2016, section 85.0146, subdivision 1, is amended to read:
110.5    Subdivision 1. Advisory council created. The Cuyuna Country State Recreation Area
110.6Citizens Advisory Council is established. Membership on the advisory council shall include:
110.7    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board;
110.8    (2) a representative of the Croft Mine Historical Park Joint Powers Board;
110.9    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked
110.10as a miner in the local area;
110.11    (4) a representative of the Crow Wing County Board;
110.12    (5) an elected state official;
110.13    (6) a representative of the Grand Rapids regional office of the Department of Natural
110.14Resources;
110.15    (7) a designee of the commissioner of Iron Range resources and rehabilitation Board;
110.16    (8) a designee of the local business community selected by the area chambers of
110.17commerce;
110.18    (9) a designee of the local environmental community selected by the Crow Wing County
110.19District 5 commissioner;
110.20    (10) a designee of a local education organization selected by the Crosby-Ironton School
110.21Board;
110.22    (11) a designee of one of the recreation area user groups selected by the Cuyuna Range
110.23Chamber of Commerce; and
110.24    (12) a member of the Cuyuna Country Heritage Preservation Society.

110.25    Sec. 8. Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read:
110.26    Subd. 1a. Definitions. For the purposes of this chapter, the following terms have the
110.27meanings given to them in this subdivision.
110.28(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4.
111.1(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02,
111.2subdivision 5
.
111.3(c) "Environmental assessment worksheet" means a brief document which is designed
111.4to set out the basic facts necessary to determine whether an environmental impact statement
111.5is required for a proposed action.
111.6(d) "Governmental action" means activities, including projects wholly or partially
111.7conducted, permitted, assisted, financed, regulated, or approved by units of government
111.8including the federal government.
111.9(e) "Governmental unit" means any state agency and any general or special purpose unit
111.10of government in the state including, but not limited to, watershed districts organized under
111.11chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic
111.12development authorities established under sections 469.090 to 469.108, but not including
111.13courts, school districts, the Department of Iron Range Resources and Rehabilitation, and
111.14regional development commissions other than the Metropolitan Council.

111.15    Sec. 9. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:
111.16    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans or,
111.17including forgivable loans, equity investments, or grants for infrastructure in mineral, steel,
111.18or any other industry processing, production, manufacturing, or technology project that
111.19would enhance the economic diversification and that is located within the taconite relief
111.20tax assistance area as defined under section 273.134 273.1341. The commissioner must,
111.21prior to making any loans or equity investments and after consultation with industry and
111.22public officials, develop a strategy for making loans and, equity investments, or grants for
111.23infrastructure that assists the taconite relief assistance area in retaining and enhancing its
111.24economic competitiveness. Money in the fund may also be used to pay for the costs of
111.25carrying out the commissioner's due diligence duties under this section.
111.26EFFECTIVE DATE.This section is effective the day following final enactment.

111.27    Sec. 10. Minnesota Statutes 2016, section 116J.424, is amended to read:
111.28116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
111.29CONTRIBUTION.
111.30The commissioner of the Iron Range resources and rehabilitation Board with approval
111.31by the board, after consultation with the Iron Range Resources and Rehabilitation Board,
111.32may provide an equal match for any loan or equity investment made for a project located
112.1in the tax relief taconite assistance area defined in section 273.134, paragraph (b) 273.1341,
112.2by the Minnesota 21st century fund created by section 116J.423. The match may be in the
112.3form of a loan or equity investment, notwithstanding whether the fund makes a loan or
112.4equity investment. The state shall not acquire an equity interest because of an equity
112.5investment 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 and
112.7rehabilitation, after consultation with the advisory board, shall have sole discretion to decide
112.8what interest it the fund acquires in a project. The commissioner of employment and
112.9economic 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
112.11fund.

112.12    Sec. 11. Minnesota Statutes 2016, section 116J.994, subdivision 3, is amended to read:
112.13    Subd. 3. Subsidy agreement. (a) A recipient must enter into a subsidy agreement with
112.14the grantor of the subsidy that includes:
112.15(1) a description of the subsidy, including the amount and type of subsidy, and type of
112.16district if the subsidy is tax increment financing;
112.17(2) a statement of the public purposes for the subsidy;
112.18(3) measurable, specific, and tangible goals for the subsidy;
112.19(4) a description of the financial obligation of the recipient if the goals are not met;
112.20(5) a statement of why the subsidy is needed;
112.21(6) a commitment to continue operations in the jurisdiction where the subsidy is used
112.22for at least five years after the benefit date;
112.23(7) the name and address of the parent corporation of the recipient, if any; and
112.24(8) a list of all financial assistance by all grantors for the project.
112.25(b) Business subsidies in the form of grants must be structured as forgivable loans. For
112.26other types of business subsidies, the agreement must state the fair market value of the
112.27subsidy to the recipient, including the value of conveying property at less than a fair market
112.28price, or other in-kind benefits to the recipient.
112.29(c) If a business subsidy benefits more than one recipient, the grantor must assign a
112.30proportion of the business subsidy to each recipient that signs a subsidy agreement. The
112.31proportion assessed to each recipient must reflect a reasonable estimate of the recipient's
112.32share of the total benefits of the project.
113.1(d) The state or local government agency and the recipient must both sign the subsidy
113.2agreement and, if the grantor is a local government agency, the agreement must be approved
113.3by the local elected governing body, except for the St. Paul Port Authority and a seaway
113.4port authority.
113.5(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be
113.6authorized to move from the jurisdiction where the subsidy is used within the five-year
113.7period after the benefit date if, after a public hearing, the grantor approves the recipient's
113.8request to move. For the purpose of this paragraph, if the grantor is a state government
113.9agency other than the Department of Iron Range Resources and Rehabilitation Board,
113.10"jurisdiction" means a city or township.

113.11    Sec. 12. Minnesota Statutes 2016, section 116J.994, subdivision 5, is amended to read:
113.12    Subd. 5. Public notice and hearing. (a) Before granting a business subsidy that exceeds
113.13$500,000 for a state government grantor and $150,000 for a local government grantor, the
113.14grantor must provide public notice and a hearing on the subsidy. A public hearing and notice
113.15under this subdivision is not required if a hearing and notice on the subsidy is otherwise
113.16required by law.
113.17    (b) Public notice of a proposed business subsidy under this subdivision by a state
113.18government grantor, other than the commissioner of Iron Range resources and rehabilitation
113.19Board, must be published in the State Register. Public notice of a proposed business subsidy
113.20under this subdivision by a local government grantor or the commissioner of Iron Range
113.21resources and rehabilitation Board must be published in a local newspaper of general
113.22circulation. The public notice must identify the location at which information about the
113.23business subsidy, including a summary of the terms of the subsidy, is available. Published
113.24notice should be sufficiently conspicuous in size and placement to distinguish the notice
113.25from the surrounding text. The grantor must make the information available in printed paper
113.26copies and, if possible, on the Internet. The government agency must provide at least a
113.27ten-day notice for the public hearing.
113.28    (c) The public notice must include the date, time, and place of the hearing.
113.29    (d) The public hearing by a state government grantor other than the commissioner of
113.30Iron Range resources and rehabilitation Board must be held in St. Paul.
113.31    (e) If more than one nonstate grantor provides a business subsidy to the same recipient,
113.32the nonstate grantors may designate one nonstate grantor to hold a single public hearing
113.33regarding the business subsidies provided by all nonstate grantors. For the purposes of this
114.1paragraph, "nonstate grantor" includes the commissioner of Iron Range resources and
114.2rehabilitation Board.
114.3    (f) The public notice of any public meeting about a business subsidy agreement, including
114.4those required by this subdivision and by subdivision 4, must include notice that a person
114.5with residence in or the owner of taxable property in the granting jurisdiction may file a
114.6written complaint with the grantor if the grantor fails to comply with sections 116J.993 to
114.7116J.995 , and that no action may be filed against the grantor for the failure to comply unless
114.8a written complaint is filed.

114.9    Sec. 13. Minnesota Statutes 2016, section 116J.994, subdivision 7, is amended to read:
114.10    Subd. 7. Reports by recipients to grantors. (a) A business subsidy grantor must monitor
114.11the progress by the recipient in achieving agreement goals.
114.12(b) A recipient must provide information regarding goals and results for two years after
114.13the benefit date or until the goals are met, whichever is later. If the goals are not met, the
114.14recipient must continue to provide information on the subsidy until the subsidy is repaid.
114.15The information must be filed on forms developed by the commissioner in cooperation with
114.16representatives of local government. Copies of the completed forms must be sent to the
114.17local government agency that provided the subsidy or to the commissioner if the grantor is
114.18a state agency. If the commissioner of Iron Range resources and rehabilitation Board is the
114.19grantor, the copies must be sent to the board commissioner of Iron Range resources and
114.20rehabilitation. The report must include:
114.21(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy
114.22is tax increment financing;
114.23(2) the hourly wage of each job created with separate bands of wages;
114.24(3) the sum of the hourly wages and cost of health insurance provided by the employer
114.25with separate bands of wages;
114.26(4) the date the job and wage goals will be reached;
114.27(5) a statement of goals identified in the subsidy agreement and an update on achievement
114.28of those goals;
114.29(6) the location of the recipient prior to receiving the business subsidy;
114.30(7) the number of employees who ceased to be employed by the recipient when the
114.31recipient relocated to become eligible for the business subsidy;
115.1(8) why the recipient did not complete the project outlined in the subsidy agreement at
115.2their previous location, if the recipient was previously located at another site in Minnesota;
115.3(9) the name and address of the parent corporation of the recipient, if any;
115.4(10) a list of all financial assistance by all grantors for the project; and
115.5(11) other information the commissioner may request.
115.6A report must be filed no later than March 1 of each year for the previous year. The local
115.7agency and the commissioner of Iron Range resources and rehabilitation Board must forward
115.8copies of the reports received by recipients to the commissioner by April 1.
115.9(c) Financial assistance that is excluded from the definition of "business subsidy" by
115.10section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting
115.11requirements of this subdivision, except that the report of the recipient must include instead:
115.12(1) the type, public purpose, and amount of the financial assistance, and type of district
115.13if the assistance is tax increment financing;
115.14(2) progress towards meeting goals stated in the assistance agreement and the public
115.15purpose of the assistance;
115.16(3) if the agreement includes job creation, the hourly wage of each job created with
115.17separate bands of wages;
115.18(4) if the agreement includes job creation, the sum of the hourly wages and cost of health
115.19insurance provided by the employer with separate bands of wages;
115.20(5) the location of the recipient prior to receiving the assistance; and
115.21(6) other information the grantor requests.
115.22(d) If the recipient does not submit its report, the local government agency must mail
115.23the recipient a warning within one week of the required filing date. If, after 14 days of the
115.24postmarked date of the warning, the recipient fails to provide a report, the recipient must
115.25pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The
115.26maximum penalty shall not exceed $1,000.

115.27    Sec. 14. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:
115.28    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
115.29the meanings given them in this subdivision.
115.30(b) "Area development rate" means a rate schedule established by a utility that provides
115.31customers within an area development zone service under a base utility rate schedule, except
116.1that charges may be reduced from the base rate as agreed upon by the utility and the customer
116.2consistent with this section.
116.3(c) "Area development zone" means a contiguous or noncontiguous area designated by
116.4an authority or municipality for development or redevelopment and within which one of
116.5the following conditions exists:
116.6(1) obsolete buildings not suitable for improvement or conversion or other identified
116.7hazards to the health, safety, and general well-being of the community;
116.8(2) buildings in need of substantial rehabilitation or in substandard condition; or
116.9(3) low values and damaged investments.
116.10(d) "Authority" means a rural development financing authority established under sections
116.11469.142 to 469.151; a housing and redevelopment authority established under sections
116.12469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an
116.13economic development authority established under sections 469.090 to 469.108; a
116.14redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron
116.15Range resources and rehabilitation Board established under section 298.22; a municipality
116.16that is administering a development district created under sections 469.124 to 469.133 or
116.17any special law; a municipality that undertakes a project under sections 469.152 to 469.165,
116.18except a town located outside the metropolitan area as defined in section 473.121, subdivision
116.192
, or with a population of 5,000 persons or less; or a municipality that exercises the powers
116.20of a port authority under any general or special law.
116.21(e) "Municipality" means a city, however organized, and, with respect to a project
116.22undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
116.23sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
116.24to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008,
116.25also includes any county.

116.26    Sec. 15. Minnesota Statutes 2016, section 216B.1694, subdivision 1, is amended to read:
116.27    Subdivision 1. Definition. For the purposes of this section, the term "innovative energy
116.28project" means a proposed energy-generation facility or group of facilities which may be
116.29located on up to three sites:
116.30(1) that makes use of an innovative generation technology utilizing coal as a primary
116.31fuel in a highly efficient combined-cycle configuration with significantly reduced sulfur
116.32dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional
116.33technologies;
117.1(2) that the project developer or owner certifies is a project capable of offering a long-term
117.2supply contract at a hedged, predictable cost; and
117.3(3) that is designated by the commissioner of the Iron Range resources and rehabilitation
117.4Board as a project that is located in the taconite tax relief area on a site that has substantial
117.5real property with adequate infrastructure to support new or expanded development and
117.6that has received prior financial and other support from the board.

117.7    Sec. 16. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:
117.8    Subd. 8. Municipality. "Municipality" means a city, town, or township located in whole
117.9or part within the area. If a municipality is located partly within and partly without the area,
117.10the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to
117.11taxation or taxing jurisdiction within the municipality are to the property or portion thereof
117.12that is located in that portion of the municipality within the area, except that the fiscal
117.13capacity of the municipality must be computed upon the basis of the valuation and population
117.14of the entire municipality. A municipality shall be excluded from the area if its municipal
117.15comprehensive zoning and planning policies conscientiously exclude most
117.16commercial-industrial development, for reasons other than preserving an agricultural use.
117.17The commissioner of Iron Range resources and rehabilitation Board and the commissioner
117.18of revenue shall jointly make this determination annually and shall notify those municipalities
117.19that are ineligible to participate in the tax base sharing program provided in this chapter for
117.20the following year. Before making the determination, the commissioner of Iron Range
117.21resources and rehabilitation must consult the Iron Range Resources and Rehabilitation
117.22Board.

117.23    Sec. 17. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:
117.24    Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up to
117.2525 percent of the areawide levy certified by the commissioner of Iron Range resources and
117.26rehabilitation Board, after consultation with the Iron Range Resources and Rehabilitation
117.27Board, to be used for the purposes of the Iron Range school consolidation and cooperatively
117.28operated school account under section 298.28, subdivision 7a.
117.29(b) The allocation under paragraph (a) shall only be made after the commissioner of
117.30Iron 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
117.32consolidation and cooperatively operated account has insufficient funds to make payments
117.33as authorized under section 298.28, subdivision 7a.

118.1    Sec. 18. Minnesota Statutes 2016, section 276A.06, subdivision 8, is amended to read:
118.2    Subd. 8. Certification of values; payment. The administrative auditor shall determine
118.3for each county the difference between the total levy on distribution value pursuant to
118.4subdivision 3, clause (1), including the school fund allocation within the county and the
118.5total tax on contribution value pursuant to subdivision 7, within the county. On or before
118.6May 16 of each year, the administrative auditor shall certify the differences so determined
118.7and the county's portion of the school fund allocation to each county auditor. In addition,
118.8the administrative auditor shall certify to those county auditors for whose county the total
118.9tax on contribution value exceeds the total levy on distribution value the settlement the
118.10county is to make to the other counties of the excess of the total tax on contribution value
118.11over the total levy on distribution value in the county. On or before June 15 and November
118.1215 of each year, each county treasurer in a county having a total tax on contribution value
118.13in excess of the total levy on distribution value shall pay one-half of the excess to the other
118.14counties in accordance with the administrative auditor's certification. On or before June 15
118.15and November 15 of each year, each county treasurer shall pay to the administrative auditor
118.16that county's share of the school fund allocation. On or before December 1 of each year,
118.17the administrative auditor shall pay the school fund allocation to the commissioner of Iron
118.18Range resources and rehabilitation Board for deposit in the Iron Range school consolidation
118.19and cooperatively operated account.

118.20    Sec. 19. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:
118.21    Subdivision 1. Development. In any county where the county board by proper resolution
118.22sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or
118.23section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation
118.24with the approval of the board, after consultation with the Iron Range Resources and
118.25Rehabilitation Board, may upon request of the county board assist said county in carrying
118.26out any project for the long range development of its forest resources through matching of
118.27funds or otherwise.

118.28    Sec. 20. Minnesota Statutes 2016, section 282.38, subdivision 3, is amended to read:
118.29    Subd. 3. Not to affect commissioner of Iron Range resources and rehabilitation.
118.30Nothing herein shall be construed to limit or abrogate the authority of the commissioner of
118.31Iron Range resources and rehabilitation to give temporary assistance to any county in the
118.32development of its land use program.

119.1    Sec. 21. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:
119.2    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue of the
119.3state 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.

119.5    Sec. 22. Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision
119.6to read:
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.

119.10    Sec. 23. Minnesota Statutes 2016, section 298.018, subdivision 1, is amended to read:
119.11    Subdivision 1. Within taconite assistance area. The proceeds of the tax paid under
119.12sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
119.13taconite assistance area defined in section 273.1341, shall be allocated as follows:
119.14    (1) five percent to the city or town within which the minerals or energy resources are
119.15mined or extracted, or within which the concentrate was produced. If the mining and
119.16concentration, or different steps in either process, are carried on in more than one taxing
119.17district, the commissioner shall apportion equitably the proceeds among the cities and towns
119.18by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction,
119.19and the remainder to the concentrating plant and to the processes of concentration, and with
119.20respect to each thereof giving due consideration to the relative extent of the respective
119.21operations performed in each taxing district;
119.22    (2) ten percent to the taconite municipal aid account to be distributed as provided in
119.23section 298.282;
119.24    (3) ten percent to the school district within which the minerals or energy resources are
119.25mined or extracted, or within which the concentrate was produced. If the mining and
119.26concentration, or different steps in either process, are carried on in more than one school
119.27district, distribution among the school districts must be based on the apportionment formula
119.28prescribed in clause (1);
119.29    (4) 20 percent to a group of school districts comprised of those school districts wherein
119.30the mineral or energy resource was mined or extracted or in which there is a qualifying
119.31municipality as defined by section 273.134, paragraph (b), in direct proportion to school
119.32district indexes as follows: for each school district, its pupil units determined under section
120.1126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
120.2net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
120.3pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
120.4to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
120.5portion of the distribution which its index bears to the sum of the indices for all school
120.6districts that receive the distributions;
120.7    (5) 20 percent to the county within which the minerals or energy resources are mined
120.8or extracted, or within which the concentrate was produced. If the mining and concentration,
120.9or different steps in either process, are carried on in more than one county, distribution
120.10among the counties must be based on the apportionment formula prescribed in clause (1),
120.11provided that any county receiving distributions under this clause shall pay one percent of
120.12its proceeds to the Range Association of Municipalities and Schools;
120.13    (6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed
120.14as provided in sections 273.134 to 273.136;
120.15    (7) five percent to the commissioner of Iron Range resources and rehabilitation Board
120.16for the purposes of section 298.22;
120.17    (8) three percent to the Douglas J. Johnson economic protection trust fund; and
120.18    (9) seven percent to the taconite environmental protection fund.
120.19    The proceeds of the tax shall be distributed on July 15 each year.

120.20    Sec. 24. Minnesota Statutes 2016, section 298.17, is amended to read:
120.21298.17 OCCUPATION TAXES TO BE APPORTIONED.
120.22(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
120.23companies, corporations, and associations, however or for whatever purpose organized,
120.24engaged in the business of mining or producing iron ore or other ores, when collected shall
120.25be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
120.26article X, section 3, in the manner following: 90 percent shall be deposited in the state
120.27treasury and credited to the general fund of which four-ninths shall be used for the support
120.28of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
120.29by this section shall be deposited in the state treasury and credited to the general fund for
120.30the general support of the university.
120.31(b) Of the money apportioned to the general fund by this section: (1) there is annually
120.32appropriated and credited to the mining environmental and regulatory account in the special
121.1revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax
121.2imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
121.3Money in the mining environmental and regulatory account is appropriated annually to the
121.4commissioner of natural resources to fund agency staff to work on environmental issues
121.5and provide regulatory services for ferrous and nonferrous mining operations in this state.
121.6Payment to the mining environmental and regulatory account shall be made by July 1
121.7annually. The commissioner of natural resources shall execute an interagency agreement
121.8with the Pollution Control Agency to assist with the provision of environmental regulatory
121.9services such as monitoring and permitting required for ferrous and nonferrous mining
121.10operations; (2) there is annually appropriated and credited to the Iron Range resources and
121.11rehabilitation Board account in the special revenue fund an amount equal to that which
121.12would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable
121.13ton produced in the preceding calendar year, to be expended for the purposes of section
121.14298.22 ; and (3) there is annually appropriated and credited to the Iron Range resources and
121.15rehabilitation Board account in the special revenue fund for transfer to the Iron Range school
121.16consolidation and cooperatively operated school account under section 298.28, subdivision
121.177a
, an amount equal to that which would have been generated by a six cent tax imposed by
121.18section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the
121.19Iron Range resources and rehabilitation Board account shall be made by May 15 annually.
121.20(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
121.21provide environmental development grants to local governments located within any county
121.22in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
121.23which does not contain a municipality qualifying pursuant to section 273.134, paragraph
121.24(b)
, or (ii) to provide economic development loans or grants to businesses located within
121.25any such county, provided that the county board or an advisory group appointed by the
121.26county board to provide recommendations on economic development shall make
121.27recommendations to the commissioner of Iron Range resources and rehabilitation Board
121.28regarding the loans. Payment to the Iron Range resources and rehabilitation Board account
121.29shall be made by May 15 annually.
121.30(d) Of the money allocated to Koochiching County, one-third must be paid to the
121.31Koochiching County Economic Development Commission.

121.32    Sec. 25. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:
121.33    Subdivision 1. The Office of Commissioner Department of Iron Range Resources
121.34and Rehabilitation. (a) The Office of the Commissioner Department of Iron Range
122.1Resources and Rehabilitation is created as an agency in the executive branch of state
122.2government. The governor shall appoint the commissioner of Iron Range resources and
122.3rehabilitation under section 15.06. The commissioner may expend amounts appropriated
122.4to the commissioner for projects after consultation with the advisory board created under
122.5subdivision 1a.
122.6(b) The commissioner may hold other positions or appointments that are not incompatible
122.7with duties as commissioner of Iron Range resources and rehabilitation. The commissioner
122.8may appoint a deputy commissioner. All expenses of the commissioner, including the
122.9payment of staff and other assistance as may be necessary, must be paid out of the amounts
122.10appropriated by section 298.28 or otherwise made available by law to the commissioner.
122.11Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
122.12options available under section 471.345 when the commissioner determines it is in the best
122.13interest of the agency. The agency is not subject to sections 16E.016 and 16C.05. The
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.
122.17(c) When the commissioner determines that distress and unemployment exists or may
122.18exist in the future in any county by reason of the removal of natural resources or a possibly
122.19limited use of natural resources in the future and any resulting decrease in employment, the
122.20commissioner may use whatever amounts of the appropriation made to the commissioner
122.21of revenue in section 298.28 that are determined to be necessary and proper in the
122.22development of the remaining resources of the county and in the vocational training and
122.23rehabilitation of its residents, except that the amount needed to cover cost overruns awarded
122.24to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in
122.25effect after July 1, 1985, is appropriated from the general fund. For the purposes of this
122.26section, "development of remaining resources" includes, but is not limited to, the promotion
122.27of tourism.

122.28    Sec. 26. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:
122.29    Subd. 1a. Iron Range Resources and Rehabilitation Board. (a) The Iron Range
122.30Resources and Rehabilitation Board consists of the state senators and representatives elected
122.31from state senatorial or legislative districts in which one-third or more of the residents reside
122.32in a taconite assistance area as defined in section 273.1341. One additional state senator
122.33shall also be appointed by the senate Subcommittee on Committees of the Committee on
122.34Rules and Administration. All expenditures and projects made by the commissioner shall
123.1first be submitted to the advisory board for approval. The advisory board shall recommend
123.2approval or disapproval or modification of the expenditures and projects. The expenses of
123.3the advisory board shall be paid by the state from the funds raised pursuant to this section.
123.4Members of the advisory board may be reimbursed for expenses in the manner provided in
123.5sections 3.099, subdivision 1, and 3.101, and may receive per diem payments during the
123.6interims between legislative sessions in the manner provided in section 3.099, subdivision
123.71
.
123.8The members shall be appointed in January of every odd-numbered year, and shall serve
123.9until January of the next odd-numbered year. Vacancies on the board shall be filled in the
123.10same manner as original members were chosen.
123.11(b) The advisory board must develop procedures to elect a chair who shall preside over
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 the
123.14commissioner.

123.15    Sec. 27. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
123.16read:
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 to the
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 wages
123.27and benefits; whether the jobs created are full time, part time, temporary, or permanent; and
123.28whether the stated job creation or retention goals in the program proposal can be adequately
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 of
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.

124.3    Sec. 28. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
124.4read:
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 strategic
124.8plan must be reviewed annually. The strategic plan must have clearly stated short- and
124.9long-term goals and strategies for expenditures, provide measurable outcomes for
124.10expenditures, and determine areas of emphasis for funding.

124.11    Sec. 29. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:
124.12    Subd. 5a. Forest trust. The commissioner, upon approval by the board after consultation
124.13with the advisory board, may purchase forest lands in the taconite assistance area defined
124.14in under section 273.1341 with funds specifically authorized for the purchase. The acquired
124.15forest lands must be held in trust for the benefit of the citizens of the taconite assistance
124.16area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed
124.17and developed for recreation and economic development purposes. The commissioner, upon
124.18approval by the after consultation with the advisory board, may sell forest lands purchased
124.19under this subdivision if the board finds commissioner determines that the sale advances
124.20the purposes of the trust. Proceeds derived from the management or sale of the lands and
124.21from the sale of timber or removal of gravel or other minerals from these forest lands shall
124.22be deposited into an Iron Range Miners' Memorial Forest account that is established within
124.23the state financial accounts. Funds may be expended from the account upon approval by
124.24the commissioner, after consultation with the advisory board, to purchase, manage,
124.25administer, 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
124.27Iron Range Miners' Memorial Forest account may be transferred into the corpus of the
124.28Douglas J. Johnson economic protection trust fund established under sections 298.291 to
124.29298.294 . The property acquired under the authority granted by this subdivision and income
124.30derived from the property or the operation or management of the property are exempt from
124.31taxation by the state or its political subdivisions while held by the forest trust.

125.1    Sec. 30. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:
125.2    Subd. 6. Private entity participation. The commissioner, after consultation with the
125.3advisory board, may acquire an equity interest in any project for which it the commissioner
125.4provides funding. The commissioner may, after consultation with the advisory board,
125.5establish, participate in the management of, and dispose of the assets of charitable
125.6foundations, nonprofit limited liability companies, and nonprofit corporations associated
125.7with any project for which it the commissioner provides funding, including specifically,
125.8but without limitation, a corporation within the meaning of section 317A.011, subdivision
125.96
.

125.10    Sec. 31. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:
125.11    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range resources
125.12and rehabilitation may not sell or privatize the Ironworld Minnesota Discovery Center or
125.13Giants Ridge Golf and Ski Resort without prior approval by the advisory board.

125.14    Sec. 32. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:
125.15    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
125.16shall annually prepare a budget for operational expenditures, programs, and projects, and
125.17submit it to the Iron Range Resources and Rehabilitation Board. After the budget is approved
125.18by the advisory board and the governor, the commissioner may spend money in accordance
125.19with the approved budget.

125.20    Sec. 33. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
125.21read:
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 the
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 wages and
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 and
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.

126.15    Sec. 34. Minnesota Statutes 2016, section 298.221, is amended to read:
126.16298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
126.17(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant
126.18to the terms of any contract entered into by the state under authority of section 298.22 and
126.19any fees which may, in the discretion of the commissioner of Iron Range resources and
126.20rehabilitation, be charged in connection with any project pursuant to that section as amended,
126.21shall be deposited in the state treasury to the credit of the Iron Range resources and
126.22rehabilitation Board account in the special revenue fund and are hereby appropriated for
126.23the purposes of section 298.22.
126.24(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner
126.25of the Iron Range resources and rehabilitation Board for payment of advertising contracts
126.26if the commissioner determines that the merchandise can be used for special event prizes
126.27or mementos at facilities operated by the board commissioner. Nothing in this paragraph
126.28authorizes the commissioner or a member of the advisory board to receive merchandise for
126.29personal use.
126.30(c) All fees charged by the commissioner in connection with public use of the state-owned
126.31ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived
127.1by the commissioner from the operation or lease of those facilities and from the lease, sale,
127.2or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be
127.3deposited into an Iron Range resources and rehabilitation Board account that is created
127.4within the state enterprise fund. All funds deposited in the enterprise fund account are
127.5appropriated to the commissioner to be expended, subject to approval by the board, and
127.6may only be used, after consultation with the advisory board, as follows:
127.7(1) to pay costs associated with the construction, equipping, operation, repair, or
127.8improvement of the Giants Ridge Recreation Area facilities or lands;
127.9(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs
127.10associated with the financing of the facilities; and
127.11(3) to pay the costs of any other project authorized under section 298.22.

127.12    Sec. 35. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:
127.13    Subd. 3. Project approval. All projects authorized by this section shall be submitted
127.14by the commissioner to the Iron Range Resources and Rehabilitation Board for approval
127.15by 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
127.17by the commissioner of any authority of sections 469.174 to 469.179, the governing body
127.18of each municipality in which any part of the project is located and the county board of any
127.19county containing portions of the project not located in an incorporated area shall by majority
127.20vote approve or disapprove the project. Any project approved by the board commissioner
127.21and the applicable governing bodies, if any, together with detailed information concerning
127.22the project, its costs, the sources of its funding, and the amount of any bonded indebtedness
127.23to be incurred in connection with the project, shall be transmitted to the governor, who shall
127.24approve, disapprove, or return the proposal for additional consideration within 30 days of
127.25receipt. No project authorized under this section shall be undertaken, and no obligations
127.26shall be issued and no tax increments shall be expended for a project authorized under this
127.27section until the project has been approved by the governor.

127.28    Sec. 36. Minnesota Statutes 2016, section 298.2211, subdivision 6, is amended to read:
127.29    Subd. 6. Fee setting. Fees for admission to or use of facilities operated by the
127.30commissioner of Iron Range resources and rehabilitation Board that have been established
127.31according to prevailing market conditions and to recover operating costs need not be set by
127.32rule.

128.1    Sec. 37. Minnesota Statutes 2016, section 298.2212, is amended to read:
128.2298.2212 INVESTMENT OF FUNDS.
128.3All funds credited to the Iron Range resources and rehabilitation Board account in the
128.4special revenue fund for the purposes of section 298.22 must be invested pursuant to law.
128.5The net interest and dividends from the investments are included and become part of the
128.6funds available for purposes of section 298.22.

128.7    Sec. 38. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:
128.8    Subdivision 1. Creation; purposes. A fund called the taconite environmental protection
128.9fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast
128.10Minnesota located within the taconite assistance area defined in section 273.1341, that are
128.11adversely affected by the environmentally damaging operations involved in mining taconite
128.12and iron ore and producing iron ore concentrate and for the purpose of promoting the
128.13economic development of northeast Minnesota. The taconite environmental protection fund
128.14shall be used for the following purposes:
128.15(1) to initiate investigations into matters the commissioner of Iron Range resources and
128.16rehabilitation Board determines are in need of study and which will determine the
128.17environmental problems requiring remedial action;
128.18(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for
128.19by state law;
128.20(3) local economic development projects but only if those projects are approved by the
128.21board, and public works, including construction of sewer and water systems located within
128.22the taconite assistance area defined in section 273.1341;
128.23(4) monitoring of mineral industry related health problems among mining employees;
128.24and
128.25(5) local public works projects under section 298.227, paragraph (c).

128.26    Sec. 39. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:
128.27    Subd. 2. Administration. (a) The taconite area environmental protection fund shall be
128.28administered by the commissioner of the Iron Range Resources and Rehabilitation Board,
128.29who must consult with the advisory board before expending any funds. The commissioner
128.30shall by September 1 of each year submit to the board a list of projects to be funded from
129.1the taconite area environmental protection fund, with such supporting information including
129.2description 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
129.4environmental protection fund must be used for public works projects, including construction
129.5of sewer and water systems, as specified under subdivision 1, clause (3). the Iron Range
129.6Resources 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 shall
129.8be submitted to the governor by November 1 of each year. By December 1 of each year,
129.9the governor shall approve or disapprove, or return for further consideration, each project.
129.10Funds for a project may be expended only upon approval of the project by the board and
129.11the governor. The commissioner may submit supplemental projects to the board and governor
129.12for approval at any time.

129.13    Sec. 40. Minnesota Statutes 2016, section 298.227, is amended to read:
129.14298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
129.15    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
129.16production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
129.17commissioner of Iron Range resources and rehabilitation Board in a separate taconite
129.18economic development fund for each taconite and direct reduced ore producer. Money from
129.19the fund for each producer shall be released by the commissioner after review by a joint
129.20committee consisting of an equal number of representatives of the salaried employees and
129.21the nonsalaried production and maintenance employees of that producer. The District 11
129.22director of the United States Steelworkers of America, on advice of each local employee
129.23president, shall select the employee members. In nonorganized operations, the employee
129.24committee shall be elected by the nonsalaried production and maintenance employees. The
129.25review must be completed no later than six months after the producer presents a proposal
129.26for expenditure of the funds to the committee. The funds held pursuant to this section may
129.27be released only for workforce development and associated public facility improvement,
129.28or for acquisition of plant and stationary mining equipment and facilities for the producer
129.29or for research and development in Minnesota on new mining, or taconite, iron, or steel
129.30production technology, but only if the producer provides a matching expenditure equal to
129.31the amount of the distribution to be used for the same purpose beginning with distributions
129.32in 2014. Effective for proposals for expenditures of money from the fund beginning May
129.3326, 2007, the commissioner may not release the funds before the next scheduled meeting
129.34of 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
130.2Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses money
130.3which has been released from the fund prior to May 26, 2007 to procure haulage trucks,
130.4mobile equipment, or mining shovels, and the producer removes the piece of equipment
130.5from the taconite tax relief area defined in section 273.134 within ten years from the date
130.6of receipt of the money from the fund, a portion of the money granted from the fund must
130.7be repaid to the taconite economic development fund. The portion of the money to be repaid
130.8is 100 percent of the grant if the equipment is removed from the taconite tax relief area
130.9within 12 months after receipt of the money from the fund, declining by ten percent for
130.10each of the subsequent nine years during which the equipment remains within the taconite
130.11tax relief area. If a taconite production facility is sold after operations at the facility had
130.12ceased, any money remaining in the fund for the former producer may be released to the
130.13purchaser of the facility on the terms otherwise applicable to the former producer under this
130.14section. If a producer fails to provide matching funds for a proposed expenditure within six
130.15months after the commissioner approves release of the funds, the funds are available for
130.16release to another producer in proportion to the distribution provided and under the conditions
130.17of this section. Any portion of the fund which is not released by the commissioner within
130.18one year of its deposit in the fund shall be divided between the taconite environmental
130.19protection fund created in section 298.223 and the Douglas J. Johnson economic protection
130.20trust fund created in section 298.292 for placement in their respective special accounts.
130.21Two-thirds of the unreleased funds shall be distributed to the taconite environmental
130.22protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
130.23    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
130.24distributions and the review process, an amount equal to ten cents per taxable ton of
130.25production in 2007, for distribution in 2008 only, that would otherwise be distributed under
130.26paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
130.27wood product facility located in the taconite tax relief area and in a county that contains a
130.28city of the first class. This amount must be deducted from the distribution under paragraph
130.29(a) for which a matching expenditure by the producer is not required. The granting of the
130.30loan or grant is subject to approval by the board. If the money is provided as a loan, interest
130.31must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii)
130.32Repayments of the loan and interest, if any, must be deposited in the taconite environment
130.33protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this
130.34paragraph by July 1, 2012, the amount that had been made available for the loan under this
130.35paragraph must be transferred to the taconite environment protection fund under sections
130.36298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section
131.1that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a
131.2pro rata basis.
131.3(c) Repayment or transfer of money to the taconite environmental protection fund under
131.4paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
131.5Board for public works projects in house legislative districts in the same proportion as
131.6taxable tonnage of production in 2007 in each house legislative district, for distribution in
131.72008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
131.8Notwithstanding any other law to the contrary, expenditures under this paragraph do not
131.9require approval by the governor. For purposes of this paragraph, "house legislative districts"
131.10means the legislative districts in existence on May 15, 2009.

131.11    Sec. 41. Minnesota Statutes 2016, section 298.27, is amended to read:
131.12298.27 COLLECTION AND PAYMENT OF TAX.
131.13The taxes provided by section 298.24 shall be paid directly to each eligible county and
131.14the commissioner of Iron Range resources and rehabilitation Board. The commissioner of
131.15revenue shall notify each producer of the amount to be paid each recipient prior to February
131.1615. Every person subject to taxes imposed by section 298.24 shall file a correct report
131.17covering the preceding year. The report must contain the information required by the
131.18commissioner of revenue. The report shall be filed by each producer on or before February
131.191. A remittance equal to 50 percent of the total tax required to be paid hereunder shall be
131.20paid on or before February 24. A remittance equal to the remaining total tax required to be
131.21paid hereunder shall be paid on or before August 24. On or before February 25 and August
131.2225, the county auditor shall make distribution of the payments previously received by the
131.23county in the manner provided by section 298.28. Reports shall be made and hearings held
131.24upon the determination of the tax in accordance with procedures established by the
131.25commissioner of revenue. The commissioner of revenue shall have authority to make
131.26reasonable rules as to the form and manner of filing reports necessary for the determination
131.27of the tax hereunder, and by such rules may require the production of such information as
131.28may be reasonably necessary or convenient for the determination and apportionment of the
131.29tax. All the provisions of the occupation tax law with reference to the assessment and
131.30determination of the occupation tax, including all provisions for appeals from or review of
131.31the orders of the commissioner of revenue relative thereto, but not including provisions for
131.32refunds, are applicable to the taxes imposed by section 298.24 except in so far as inconsistent
131.33herewith. If any person subject to section 298.24 shall fail to make the report provided for
131.34in this section at the time and in the manner herein provided, the commissioner of revenue
132.1shall in such case, upon information possessed or obtained, ascertain the kind and amount
132.2of ore mined or produced and thereon find and determine the amount of the tax due from
132.3such person. There shall be added to the amount of tax due a penalty for failure to report
132.4on or before February 1, which penalty shall equal ten percent of the tax imposed and be
132.5treated as a part thereof.
132.6If any person responsible for making a tax payment at the time and in the manner herein
132.7provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount
132.8so due, which penalty shall be treated as part of the tax due.
132.9In the case of any underpayment of the tax payment required herein, there may be added
132.10and be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid.
132.11A person having a liability of $120,000 or more during a calendar year must remit all
132.12liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The
132.13funds transfer payment date, as defined in section 336.4A-401, must be on or before the
132.14date the tax is due. If the date the tax is due is not a funds transfer business day, as defined
132.15in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the
132.16funds transfer business day next following the date the tax is due.

132.17    Sec. 42. Minnesota Statutes 2016, section 298.28, subdivision 7, is amended to read:
132.18    Subd. 7. Iron Range resources and rehabilitation Board account. For the 1998
132.19distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources and
132.20rehabilitation Board account for the purposes of section 298.22. That amount shall be
132.21increased for distribution years 1999 through 2014 and for distribution in 2018 and
132.22subsequent years in the same proportion as the increase in the implicit price deflator as
132.23provided in section 298.24, subdivision 1. The amount distributed pursuant to this subdivision
132.24shall be expended within or for the benefit of the taconite assistance area defined in section
132.25273.1341 . No part of the fund provided in this subdivision may be used to provide loans
132.26for the operation of private business unless the loan is approved by the governor.

132.27    Sec. 43. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:
132.28    Subd. 7a. Iron Range school consolidation and cooperatively operated school account.
132.29(a) The following amounts must be allocated to the commissioner of Iron Range resources
132.30and rehabilitation Board to be deposited in the Iron Range school consolidation and
132.31cooperatively operated school account that is hereby created:
133.1(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed
133.2under section 298.24; and
133.3(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
133.4under section 298.24;
133.5(2) the amount as determined under section 298.17, paragraph (b), clause (3);
133.6(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
133.7proceeds attributable to the increase in the implicit price deflator as provided in section
133.8298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J.
133.9Johnson economic protection trust fund;
133.10(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
133.11tax proceeds attributable to the increase in the implicit price deflator as provided in section
133.12298.24, subdivision 1 , for distribution years 2015 and 2016, with the remaining one-third
133.13to be distributed to the Douglas J. Johnson economic protection trust fund; and
133.14(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased
133.15tax proceeds attributable to the increase in the implicit price deflator as provided in section
133.16298.24, subdivision 1 , for distribution years 2015, 2016, and 2017, with the remaining
133.17one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
133.18(4) any other amount as provided by law.
133.19(b) Expenditures from this account may be approved as ongoing annual expenditures
133.20and shall be made only to provide disbursements to assist school districts with the payment
133.21of bonds that were issued for qualified school projects, or for any other school disbursement
133.22as approved by the commissioner of Iron Range resources and rehabilitation after consultation
133.23with the Iron Range Resources and Rehabilitation Board. For purposes of this section,
133.24"qualified school projects" means school projects within the taconite assistance area as
133.25defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006;
133.26and (2) approved by the commissioner of education pursuant to section 123B.71.
133.27(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
133.28bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
133.29any reduction in debt service equalization aid that the school district qualifies for in that
133.30year, under section 123B.53, subdivision 6, compared with the amount the school district
133.31qualified for in fiscal year 2018.
134.1(d) No expenditure under this section shall be made unless approved by seven members
134.2of the commissioner of Iron Range resources and rehabilitation after consultation with the
134.3Iron Range Resources and Rehabilitation Board.

134.4    Sec. 44. Minnesota Statutes 2016, section 298.28, subdivision 9c, is amended to read:
134.5    Subd. 9c. Distribution; city of Eveleth. 0.20 cent per taxable ton must be paid to the
134.6city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the
134.7Hockey Hall of Fame, provided that it continues to operate in that city, and provided that
134.8the city of Eveleth certifies to the St. Louis County auditor that it has received donations
134.9for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of Fame
134.10ceases to operate in the city of Eveleth prior to receipt of the distribution in any year, and
134.11the governing body of the city determines that it is unlikely to resume operation there within
134.12a six-month period, the distribution under this subdivision shall be made to the commissioner
134.13of Iron Range resources and rehabilitation Board.

134.14    Sec. 45. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:
134.15    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must be
134.16allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron
134.17Range higher education account that is hereby created, to be used for higher education
134.18programs conducted at educational institutions in the taconite assistance area defined in
134.19section 273.1341. The Iron Range Higher Education committee under section 298.2214,
134.20and the commissioner of Iron Range resources and rehabilitation Board, after consultation
134.21with the advisory board, must approve all expenditures from the account.

134.22    Sec. 46. Minnesota Statutes 2016, section 298.28, subdivision 11, is amended to read:
134.23    Subd. 11. Remainder. (a) The proceeds of the tax imposed by section 298.24 which
134.24remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
134.25commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
134.26interest earned on all money distributed under this section prior to distribution, shall be
134.27divided between the taconite environmental protection fund created in section 298.223 and
134.28the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows:
134.29Two-thirds to the taconite environmental protection fund and one-third to the Douglas J.
134.30Johnson economic protection trust fund. The proceeds shall be placed in the respective
134.31special accounts.
135.1(b) There shall be distributed to each city, town, and county the amount that it received
135.2under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however,
135.3that the amount distributed in 1981 to the unorganized territory number 2 of Lake County
135.4and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company
135.5will be distributed in 1982 and subsequent years to the unorganized territory number 2 of
135.6Lake County and the towns of Beaver Bay and Stony River based on the miles of track of
135.7Erie Mining Company in each taxing district.
135.8(c) There shall be distributed to the Iron Range resources and rehabilitation Board account
135.9the amounts it received in 1977 under Minnesota Statutes 1978, section 298.22. The amount
135.10distributed under this paragraph shall be expended within or for the benefit of the taconite
135.11assistance area defined in section 273.1341.
135.12(d) There shall be distributed to each school district 62 percent of the amount that it
135.13received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

135.14    Sec. 47. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:
135.15    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
135.16fund may be used for the following purposes:
135.17    (1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
135.18with private sources of financing, but a loan to a private enterprise shall be for a principal
135.19amount not to exceed one-half of the cost of the project for which financing is sought, and
135.20the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
135.21percent or an interest rate three percentage points less than a full faith and credit obligation
135.22of the United States government of comparable maturity, at the time that the loan is approved;
135.23    (2) to fund reserve accounts established to secure the payment when due of the principal
135.24of and interest on bonds issued pursuant to section 298.2211;
135.25    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
135.26bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
135.27retrofitting heating facilities in connection with district heating systems or systems utilizing
135.28alternative energy sources;
135.29    (4) to invest in a venture capital fund or enterprise that will provide capital to other
135.30entities that are engaging in, or that will engage in, projects or programs that have the
135.31purposes set forth in subdivision 1. No investments may be made in a venture capital fund
135.32or enterprise unless at least two other unrelated investors make investments of at least
135.33$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
136.1Johnson economic protection trust fund may not exceed the amount of the largest investment
136.2by an unrelated investor in the venture capital fund or enterprise. For purposes of this
136.3subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
136.4which the investment is made or to any individual who owns more than 40 percent of the
136.5value of the entity, in any of the following relationships: spouse, parent, child, sibling,
136.6employee, or owner of an interest in the entity that exceeds ten percent of the value of all
136.7interests in it. For purposes of determining the limitations under this clause, the amount of
136.8investments made by an investor other than the Douglas J. Johnson economic protection
136.9trust fund is the sum of all investments made in the venture capital fund or enterprise during
136.10the period beginning one year before the date of the investment by the Douglas J. Johnson
136.11economic protection trust fund; and
136.12    (5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
136.13be held and managed as a public trust for the benefit of the area for the purposes authorized
136.14in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
136.15commissioner upon approval by the, after consultation with the advisory board. The net
136.16proceeds must be deposited in the trust fund for the purposes and uses of this section.
136.17    Money from the trust fund shall be expended only in or for the benefit of the taconite
136.18assistance area defined in section 273.1341.

136.19    Sec. 48. Minnesota Statutes 2016, section 298.296, is amended to read:
136.20298.296 OPERATION OF FUND.
136.21    Subdivision 1. Project approval. The board and commissioner shall by August 1 of
136.22each year prepare a list of projects to be funded from the Douglas J. Johnson economic
136.23protection trust with necessary supporting information including description of the projects,
136.24plans, and cost estimates. These Projects shall be consistent with the priorities established
136.25in section 298.292 and shall not be approved by the board unless it commissioner unless
136.26the commissioner, after consultation with the advisory board, finds that:
136.27(a) the project will materially assist, directly or indirectly, the creation of additional
136.28long-term employment opportunities;
136.29(b) the prospective benefits of the expenditure exceed the anticipated costs; and
136.30(c) in the case of assistance to private enterprise, the project will serve a sound business
136.31purpose.
136.32Each project must be approved by over one-half of all of the members of the board and
136.33the commissioner of Iron Range resources and rehabilitation. The list of projects shall be
137.1submitted to the governor, who shall, by November 15 of each year, approve or disapprove,
137.2or return for further consideration, each project. The money for a project may be expended
137.3only upon approval of the project by the governor. The board may submit supplemental
137.4projects for approval at any time.
137.5    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended on
137.6projects and for administration of the trust fund only from the net interest, earnings, and
137.7dividends arising from the investment of the trust at any time, including net interest, earnings,
137.8and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for
137.9use in fiscal year 1983, except that any amount required to be paid out of the trust fund to
137.10provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and
137.11to make school bond payments and payments to recipients of taconite production tax proceeds
137.12pursuant to section 298.225, may be taken from the corpus of the trust.
137.13    (b) Additionally, upon recommendation by the board, up to $13,000,000 from the corpus
137.14of the trust may be made available for use as provided in subdivision 4, and up to $10,000,000
137.15from the corpus of the trust may be made available for use as provided in section 298.2961.
137.16    (c) (b) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
137.17on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
137.18made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8,
137.19section 17, may be expended on projects. Funds The commissioner may be expended expend
137.20funds for projects under this paragraph only if the project:
137.21    (1) the project is for the purposes established under section 298.292, subdivision 1,
137.22clause (1) or (2); and
137.23    (2) is approved by two-thirds of all of the members of the board the commissioner has
137.24consulted with the advisory board.
137.25No money made available under this paragraph or paragraph (d) (c) can be used for
137.26administrative or operating expenses of the Department of Iron Range Resources and
137.27Rehabilitation Board or expenses relating to any facilities owned or operated by the board
137.28commissioner on May 18, 2002.
137.29    (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
137.31(b), and (c) may be expended on projects described in section 298.292, subdivision 1, only
137.32after consultation with the advisory board.
138.1    (e) (d) Annual administrative costs, not including detailed engineering expenses for the
138.2projects, shall not exceed five percent of the net interest, dividends, and earnings arising
138.3from the trust in the preceding fiscal year.
138.4    (f) (e) Principal and interest received in repayment of loans made pursuant to this section,
138.5and earnings on other investments made under section 298.292, subdivision 2, clause (4),
138.6shall be deposited in the state treasury and credited to the trust. These receipts are
138.7appropriated to the board for the purposes of sections 298.291 to 298.298 298.297.
138.8    (g) (f) Additionally, notwithstanding section 298.293, upon the approval of the board,
138.9the commissioner, after consultation with the advisory board, may expend money from the
138.10corpus of the trust may be expanded to purchase forest lands within the taconite assistance
138.11area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2, clause (5).
138.12    Subd. 3. Administration. The commissioner and staff of the Iron Range resources and
138.13rehabilitation Board shall administer the program under which funds are expended pursuant
138.14to sections 298.292 to 298.298 298.297.
138.15    Subd. 4. Temporary loan authority. (a) The board may recommend that After
138.16consultation with the advisory board, the commissioner may use up to $7,500,000 from the
138.17corpus of the trust may be used for loans, loan guarantees, grants, or equity investments as
138.18provided in this subdivision. The money would be available for loans for construction and
138.19equipping of facilities constituting (1) a value added iron products plant, which may be
138.20either a new plant or a facility incorporated into an existing plant that produces iron upgraded
138.21to a minimum of 75 percent iron content or any iron alloy with a total minimum metallic
138.22content of 90 percent; or (2) a new mine or minerals processing plant for any mineral subject
138.23to the net proceeds tax imposed under section 298.015. A loan or loan guarantee under this
138.24paragraph may not exceed $5,000,000 for any facility.
138.25(b) Additionally, the board must reserve the first $2,000,000 of the net interest, dividends,
138.26and earnings arising from the investment of the trust after June 30, 1996, to be used for
138.27grants, loans, loan guarantees, or equity investments for the purposes set forth in paragraph
138.28(a). This amount must be reserved until it is used as described in this subdivision.
138.29(c) (b) Additionally, 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
138.31for additional grants, loans, loan guarantees, or equity investments for the purposes set forth
138.32in paragraph (a).
139.1(d) (c) The board commissioner, after consultation with the advisory board, may require
139.2that it the fund receive an equity percentage in any project to which it contributes under this
139.3section.

139.4    Sec. 49. Minnesota Statutes 2016, section 298.2961, is amended to read:
139.5298.2961 PRODUCER GRANTS.
139.6    Subdivision 1. Appropriation. (a) $10,000,000 is appropriated from the Douglas J.
139.7Johnson economic protection trust fund to a special account in the taconite area environmental
139.8protection fund for grants to producers on a project-by-project basis as provided in this
139.9section.
139.10(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are
139.11appropriated for grants to producers on a project-by-project basis as provided in this section.
139.12    Subd. 2. Projects; approval. (a) Projects funded must be for:
139.13    (1) environmentally unique reclamation projects; or
139.14    (2) pit or plant repairs, expansions, or modernizations other than for a value added iron
139.15products plant.
139.16    (b) To be proposed by the board, a project must be approved by the board. The money
139.17for a project may be spent only upon approval of the project by the governor. The board
139.18may submit supplemental projects for approval at any time The commissioner may approve
139.19a project only after consultation with the advisory board.
139.20    (c) The commissioner, after consultation with the advisory board, may require that it
139.21the fund receive an equity percentage in any project to which it contributes under this section.
139.22    Subd. 3. Redistribution. (a) If a taconite production facility is sold after operations at
139.23the facility had ceased, any money remaining in the taconite environmental fund for the
139.24former producer may be released to the purchaser of the facility on the terms otherwise
139.25applicable to the former producer under this section.
139.26(b) Any portion of the taconite environmental fund that is not released by the
139.27commissioner within three years of its deposit in the taconite environmental fund shall be
139.28divided between the taconite environmental protection fund created in section 298.223 and
139.29the Douglas J. Johnson economic protection trust fund created in section 298.292 for
139.30placement in their respective special accounts. Two-thirds of the unreleased funds must be
139.31distributed to the taconite environmental protection fund and one-third to the Douglas J.
139.32Johnson economic protection trust fund.
140.1    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions under
140.2section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision.
140.3Any grant or loan made under this subdivision must be approved by the commissioner, after
140.4consultation with the advisory board, established under section 298.22.
140.5    (b) All distributions received in 2009 and subsequent years are allocated for projects
140.6under section 298.223, subdivision 1.

140.7    Sec. 50. Minnesota Statutes 2016, section 298.297, is amended to read:
140.8298.297 ADVISORY COMMITTEES.
140.9Before submission of a project to the advisory board, the commissioner of Iron Range
140.10resources and rehabilitation shall appoint a technical advisory committee consisting of one
140.11or more persons who are knowledgeable in areas related to the objectives of the proposal.
140.12Members of the committees shall be compensated as provided in section 15.059, subdivision
140.133
. The advisory board shall not act make recommendations on a proposal until it has received
140.14the evaluation and recommendations of the technical advisory committee or until 15 days
140.15have elapsed since the proposal was transmitted to the advisory committee, whichever
140.16occurs first.

140.17    Sec. 51. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:
140.18    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly
140.19constituted authorities of a taxing district there are in existence reserves of unmined iron
140.20ore located in such district, these authorities may petition the commissioner of Iron Range
140.21resources and rehabilitation Board for authority to petition the county assessor to verify the
140.22existence of such reserves and to ascertain the value thereof by drilling in a manner consistent
140.23with established engineering and geological exploration methods, in order that such taxing
140.24district may be able to forecast in a proper manner its future economic and fiscal potentials.
140.25The commissioner of Iron Range resources and rehabilitation may grant the authority to
140.26petition only after consultation with the advisory board.

140.27    Sec. 52. Minnesota Statutes 2016, section 298.46, subdivision 5, is amended to read:
140.28    Subd. 5. Payment of costs; reimbursement. The cost of such exploration or drilling
140.29plus any damages to the property which may be assessed by the district court shall be paid
140.30by the commissioner of Iron Range resources and rehabilitation Board from amounts
140.31appropriated to that board the commissioner of Iron Range resources and rehabilitation
140.32under section 298.22. The commissioner of Iron Range resources and rehabilitation Board
141.1shall be reimbursed for one-half of the amounts thus expended. Such reimbursement shall
141.2be made by the taxing districts in the proportion that each such taxing district's levy on the
141.3property involved bears to the total levy on such property. Such reimbursement shall be
141.4made to the commissioner of Iron Range resources and rehabilitation Board in the manner
141.5provided by section 298.221.

141.6    Sec. 53. Minnesota Statutes 2016, section 298.46, subdivision 6, is amended to read:
141.7    Subd. 6. Refusal to reimburse; reduction of other payments. If any taxing district
141.8refuses to pay its share of the reimbursement as provided in subdivision 5, the county auditor
141.9is hereby authorized to reduce payments required to be made by the county to such taxing
141.10district under other provisions of law. Thereafter the auditor shall draw a warrant, which
141.11shall be deposited with the state treasury in accordance with section 298.221, to the credit
141.12of the commissioner of Iron Range resources and rehabilitation Board.

141.13    Sec. 54. Minnesota Statutes 2016, section 466.03, subdivision 6c, is amended to read:
141.14    Subd. 6c. Water access sites. Any claim based upon the construction, operation, or
141.15maintenance by a municipality of a water access site created by the commissioner of Iron
141.16Range resources and rehabilitation Board. A water access site under this subdivision that
141.17provides access to an idled, water filled mine pit also includes the entire water filled area
141.18of the pit, and, further, claims related to a mine pit water access site under this subdivision
141.19include those based upon the caving or slumping of mine pit walls.

141.20    Sec. 55. Minnesota Statutes 2016, section 469.310, subdivision 9, is amended to read:
141.21    Subd. 9. Local government unit. "Local government unit" means a statutory or home
141.22rule charter city, county, town, the Department of Iron Range Resources and Rehabilitation
141.23agency, regional development commission, or a federally designated economic development
141.24district.

141.25    Sec. 56. Minnesota Statutes 2016, section 474A.02, subdivision 21, is amended to read:
141.26    Subd. 21. Preliminary resolution. "Preliminary resolution" means a resolution adopted
141.27by the governing body or board of the issuer, or in the case of the by the commissioner of
141.28Iron Range resources and rehabilitation Board by the commissioner. The resolution must
141.29express a preliminary intention of the issuer to issue obligations for a specific project,
141.30identify the proposed project, and disclose the proposed amount of qualified bonds to be
142.1issued. Preliminary resolutions for mortgage bonds and student loan bonds need not identify
142.2a specific project.

142.3    Sec. 57. Laws 2010, chapter 389, article 5, section 7, is amended to read:
142.4    Sec. 7. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY.
142.5    Subdivision 1. Additional taxes authorized. Notwithstanding Minnesota Statutes,
142.6section 477A.016, or any other law, ordinance, or charter provision to the contrary, the city
142.7of Biwabik, upon approval both by its governing body and by the vote of at least seven
142.8members of the Iron Range Resources and Rehabilitation Board, may impose any or all of
142.9the taxes described in this section.
142.10    Subd. 2. Use of proceeds. The proceeds of any taxes imposed under this section, less
142.11refunds and costs of collection, must be deposited into the Iron Range Resources and
142.12Rehabilitation Board account enterprise fund created under the provisions of Minnesota
142.13Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the
142.14commissioner of the Iron Range resources and rehabilitation Board, upon approval by the
142.15vote of at least seven members of after consultation with the Iron Range Resources and
142.16Rehabilitation Board, to pay costs for the construction, renovation, improvement, expansion,
142.17and maintenance of public recreational facilities located in those portions of the city within
142.18the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
142.19subdivision 7
, or to pay any principal, interest, or premium on any bond issued to finance
142.20the construction, renovation, improvement, or expansion of such public recreational facilities.
142.21    Subd. 3. Lodging tax. (a) The city of Biwabik, upon approval both by its governing
142.22body and by the vote of at least seven members of the Iron Range Resources and
142.23Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the
142.24gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This
142.25tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may
142.26be imposed only on gross lodging receipts generated within the Giants Ridge Recreation
142.27Area 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 the tax
142.29imposed under paragraph (a), the change must be approved by both the governing body of
142.30the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
142.31the commissioner of Iron Range resources and rehabilitation consults with the Iron Range
142.32Resources and Rehabilitation Board.
143.1    Subd. 4. Admissions and recreation tax. (a) The city of Biwabik, upon approval both
143.2by its governing body and by the vote of at least seven members of the Iron Range Resources
143.3and Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent
143.4on admission receipts to entertainment and recreational facilities and on receipts from the
143.5rental of recreation equipment, at sites within the Giants Ridge Recreation Area as defined
143.6in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota Statutes,
143.7section 297A.99, except for subdivisions 2 and 3, govern the imposition, administration,
143.8collection, and enforcement of the tax authorized in this subdivision.
143.9(b) If the city imposes the tax under paragraph (a), it must include in the ordinance an
143.10exemption 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 the tax
143.12imposed under paragraph (a), the change must be approved by both the governing body of
143.13the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
143.14the commissioner of Iron Range resources and rehabilitation consults with the Iron Range
143.15Resources and Rehabilitation Board.
143.16    Subd. 5. Food and beverage tax. (a) The city of Biwabik, upon approval both by its
143.17governing body and by the vote of at least seven members of the Iron Range Resources and
143.18Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more than
143.19one percent on gross receipts of food and beverages sold whether it is consumed on or off
143.20the premises by restaurants and places of refreshment as defined by resolution of the city
143.21within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
143.22subdivision 7
. The provisions of Minnesota Statutes, section 297A.99, except for subdivisions
143.232 and 3, govern the imposition, administration, collection, and enforcement of the tax
143.24authorized in this subdivision.
143.25(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
143.26imposed under paragraph (a), the change must be approved by both the governing body of
143.27the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
143.28the commissioner of Iron Range resources and rehabilitation consults with the Iron Range
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).

144.1    Sec. 58. DEPARTMENT OF IRON RANGE RESOURCES AND
144.2REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM
144.3AUTHORIZATION.
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 the
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 who
144.9have received credit for at least 30 years of allowable service under the provisions of
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 of
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; and
144.16(2) cash incentives that may, but are not required to be, used to purchase additional years
144.17of service credit through the Minnesota State Retirement System, to the extent that the
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 for
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 the
144.28commissioner.
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 labor
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.

145.3    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 makes
145.6conforming changes in accordance with the provisions of this article. The revisor shall
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.

145.10    Sec. 60. REPEALER.
145.11Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, are
145.12repealed.

145.13ARTICLE 8
145.14COMMERCE POLICY

145.15    Section 1. Minnesota Statutes 2016, section 45.0135, subdivision 6, is amended to read:
145.16    Subd. 6. Insurance fraud prevention account. The insurance fraud prevention account
145.17is created in the state treasury. Money received from assessments under subdivision 7 and
145.18transferred from the automobile theft prevention account in section sections 65B.84,
145.19subdivision 1
, and 297I.11, subdivision 2, is deposited in the account. Money in this fund
145.20is appropriated to the commissioner of commerce for the purposes specified in this section
145.21and sections 60A.951 to 60A.956.

145.22    Sec. 2. Minnesota Statutes 2016, section 46.131, subdivision 7, is amended to read:
145.23    Subd. 7. Fiscal year assessments. Such assessments shall be levied on July 1, 1965,
145.24and at prior to the beginning of each fiscal period beginning July 1 and ending June 30
145.25thereafter, and shall be based on the total estimated expense as herein referred to during
145.26such 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.

146.1    Sec. 3. Minnesota Statutes 2016, section 46.131, is amended by adding a subdivision to
146.2read:
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 consists
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 from
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.

146.11    Sec. 4. Minnesota Statutes 2016, section 65B.84, subdivision 1, is amended to read:
146.12    Subdivision 1. Program described; commissioner's duties; appropriation. (a) The
146.13commissioner of commerce shall:
146.14(1) develop and sponsor the implementation of statewide plans, programs, and strategies
146.15to combat automobile theft, improve the administration of the automobile theft laws, and
146.16provide a forum for identification of critical problems for those persons dealing with
146.17automobile theft;
146.18(2) coordinate the development, adoption, and implementation of plans, programs, and
146.19strategies relating to interagency and intergovernmental cooperation with respect to
146.20automobile theft enforcement;
146.21(3) annually audit the plans and programs that have been funded in whole or in part to
146.22evaluate the effectiveness of the plans and programs and withdraw funding should the
146.23commissioner determine that a plan or program is ineffective or is no longer in need of
146.24further financial support from the fund;
146.25(4) develop a plan of operation including:
146.26(i) an assessment of the scope of the problem of automobile theft, including areas of the
146.27state where the problem is greatest;
146.28(ii) an analysis of various methods of combating the problem of automobile theft;
146.29(iii) a plan for providing financial support to combat automobile theft;
146.30(iv) a plan for eliminating car hijacking; and
146.31(v) an estimate of the funds required to implement the plan; and
147.1(5) distribute money, in consultation with the commissioner of public safety, pursuant
147.2to subdivision 3 from the automobile theft prevention special revenue account for automobile
147.3theft prevention activities, including:
147.4(i) paying the administrative costs of the program;
147.5(ii) providing financial support to the State Patrol and local law enforcement agencies
147.6for automobile theft enforcement teams;
147.7(iii) providing financial support to state or local law enforcement agencies for programs
147.8designed to reduce the incidence of automobile theft and for improved equipment and
147.9techniques for responding to automobile thefts;
147.10(iv) providing financial support to local prosecutors for programs designed to reduce
147.11the incidence of automobile theft;
147.12(v) providing financial support to judicial agencies for programs designed to reduce the
147.13incidence of automobile theft;
147.14(vi) providing financial support for neighborhood or community organizations or business
147.15organizations for programs designed to reduce the incidence of automobile theft and to
147.16educate people about the common methods of automobile theft, the models of automobiles
147.17most likely to be stolen, and the times and places automobile theft is most likely to occur;
147.18and
147.19(vii) providing financial support for automobile theft educational and training programs
147.20for state and local law enforcement officials, driver and vehicle services exam and inspections
147.21staff, and members of the judiciary.
147.22(b) The commissioner may not spend in any fiscal year more than ten percent of the
147.23money in the fund for the program's administrative and operating costs. The commissioner
147.24is annually appropriated and must distribute the amount of the proceeds credited to the
147.25automobile theft prevention special revenue account each year, less the transfer of $1,300,000
147.26each year to the general fund insurance fraud prevention account described in section 297I.11,
147.27subdivision 2
.
147.28(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances
147.29in the auto theft prevention account to the insurance fraud prevention account under section
147.3045.0135, subdivision 6 .

148.1    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 does
148.6not include an entity that obtains group insurance, as defined in section 60A.02, subdivision
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 if:
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.

148.16    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
148.19REPRESENTATIVE.
148.20    (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,
148.22or investment adviser, or investment adviser representative by filing an application and a
148.23consent to service of process complying with section 80A.88, and paying the fee specified
148.24in section 80A.65 and any reasonable fees charged by the designee of the administrator for
148.25processing the filing. The application must contain:
148.26    (1) the information or record required for the filing of a uniform application; and
148.27    (2) upon request by the administrator, any other financial or other information or record
148.28that the administrator determines is appropriate.
148.29    (b) Amendment. If the information or record contained in an application filed under
148.30subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant
148.31shall promptly file a correcting amendment.
149.1    (c) Effectiveness of registration. If an order is not in effect and a proceeding is not
149.2pending under section 80A.67, registration becomes effective at noon on the 45th day after
149.3a completed application is filed, unless the registration is denied. A rule adopted or order
149.4issued under this chapter may set an earlier effective date or may defer the effective date
149.5until noon on the 45th day after the filing of any amendment completing the application.
149.6    (d) Registration renewal. A registration is effective until midnight on December 31 of
149.7the year for which the application for registration is filed. Unless an order is in effect under
149.8section 80A.67, a registration may be automatically renewed each year by filing such records
149.9as are required by rule adopted or order issued under this chapter, by paying the fee specified
149.10in section 80A.65, and by paying costs charged by the designee of the administrator for
149.11processing the filings.
149.12    (e) Additional conditions or waivers. A rule adopted or order issued under this chapter
149.13may impose such other conditions, not inconsistent with the National Securities Markets
149.14Improvement Act of 1996. An order issued under this chapter may waive, in whole or in
149.15part, specific requirements in connection with registration as are in the public interest and
149.16for the protection of investors.
149.17(f) Funding portal registration. A funding portal that has its principal place of business
149.18in the state of Minnesota shall register with the state of Minnesota by filing with the
149.19administrator a copy of the information or record required for the filing of an application
149.20for registration as a funding portal in the manner established by the Securities and Exchange
149.21Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with
149.22any rule adopted or order issued, and any amendments thereto.
149.23    (g) Application for investment adviser representative registration.
149.24    (1) The application for initial registration as an investment adviser representative pursuant
149.25to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities
149.26Industry Registration or Transfer) in accordance with the form instructions and by filing
149.27the form U-4 with the IARD. The application for initial registration must also include the
149.28following:
149.29    (i) proof of compliance by the investment adviser representative with the examination
149.30requirements of:
149.31    (A) the Uniform Investment Adviser Law Examination (Series 65); or
149.32    (B) the General Securities Representative Examination (Series 7) and the Uniform
149.33Combined State Law Examination (Series 66);
150.1    (ii) any other information the administrator may reasonably require.
150.2    (2) The application for the annual renewal registration as an investment adviser
150.3representative shall be filed with the IARD.
150.4    (3)(i) The investment adviser representative is under a continuing obligation to update
150.5information required by Form U-4 as changes occur;
150.6    (ii) An investment adviser representative and the investment adviser must file promptly
150.7with the IARD any amendments to the representative's Form U-4; and
150.8    (iii) An amendment will be considered to be filed promptly if the amendment is filed
150.9within 30 days of the event that requires the filing of the amendment.
150.10    (4) An application for initial or renewal of registration is not considered filed for purposes
150.11of section 80A.58 until the required fee and all required submissions have been received
150.12by the administrator.
150.13    (5) The application for withdrawal of registration as an investment adviser representative
150.14pursuant to section 80A.58 shall be completed by following the instructions on Form U-5
150.15(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5
150.16with the IARD.

150.17    Sec. 7. Minnesota Statutes 2016, section 80A.65, subdivision 2, is amended to read:
150.18    Subd. 2. Registration application and renewal filing fee. Every applicant for an initial
150.19or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, $50 $65
150.20in the case of an agent, and $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
150.22filing fee shall be retained. A registered agent who has terminated employment with one
150.23broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer
150.24fee of $25.

150.25    Sec. 8. Minnesota Statutes 2016, section 216B.62, subdivision 3b, is amended to read:
150.26    Subd. 3b. Assessment for department regional and national duties. In addition to
150.27other assessments in subdivision 3, the department may assess up to $1,000,000 $500,000
150.28per fiscal year for performing its duties under section 216A.07, subdivision 3a. The amount
150.29in this subdivision shall be assessed to energy utilities in proportion to their respective gross
150.30operating revenues from retail sales of gas or electric service within the state during the last
150.31calendar year and shall be deposited into an account in the special revenue fund and is
150.32appropriated to the commissioner of commerce for the purposes of section 216A.07,
151.1subdivision 3a
. An assessment made under this subdivision is not subject to the cap on
151.2assessments provided in subdivision 3 or any other law. For the purpose of this subdivision,
151.3an "energy utility" means public utilities, generation and transmission cooperative electric
151.4associations, and municipal power agencies providing natural gas or electric service in the
151.5state. This subdivision expires June 30, 2017 2018.

151.6    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 on
151.8retail petroleum dispensers as follows:
151.9(1) for regular or premium gasoline, a sign that reads: "The price for each gallon of
151.10gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline
151.11tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and
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 includes
151.14the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents
151.15per gallon. Revenue from the state fuel tax may be used only for roads and bridges, according
151.16to the Minnesota Constitution."
151.17(b) The director must distribute the signs under this section to the owner or operator of
151.18retail petroleum dispensers. To the extent possible, the director must coordinate the
151.19distribution of signs with other duties the director may have involving retail petroleum
151.20dispensers.
151.21(c) If the amount of the gasoline tax described in paragraph (a), clauses (1) and (2),
151.22changes, the director must distribute revised signs to reflect the updated gasoline tax amounts
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 or
151.25operator of a retail petroleum dispenser that has a missing, destroyed, defaced, or otherwise
151.26damaged gas tax sign.

151.27    Sec. 10. Minnesota Statutes 2016, section 297I.11, subdivision 2, is amended to read:
151.28    Subd. 2. Automobile theft prevention account. A special revenue account in the state
151.29treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1.
151.30Of the revenue in the account, $1,300,000 each year must be transferred to the general fund
151.31insurance fraud prevention account under section 45.0135, subdivision 6. Revenues in excess
152.1of $1,300,000 each year may be used only for the automobile theft prevention program
152.2described in section 65B.84.

152.3    Sec. 11. Minnesota Statutes 2016, section 325J.06, is amended to read:
152.4325J.06 EFFECT OF NONREDEMPTION.
152.5(a) A pledgor shall have no obligation to redeem pledged goods or make any payment
152.6on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of
152.7the pawn transaction, renewal, or extension shall automatically be forfeited to the
152.8pawnbroker, and qualified right, title, and interest in and to the goods shall automatically
152.9vest in the pawnbroker.
152.10(b) The pawnbroker's right, title, and interest in the pledged goods under paragraph (a)
152.11is qualified only by the pledgor's right, while the pledged goods remain in possession of the
152.12pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees
152.13and/or interest accrued up to the date of redemption.
152.14(c) A pawn transaction that involves holding only the title to property is subject to chapter
152.15168A or 336.

152.16    Sec. 12. Minnesota Statutes 2016, section 345.42, is amended by adding a subdivision to
152.17read:
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 of abandoned
152.21property whose last known address is located in the legislator's respective legislative district.
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 form of
152.24all persons appearing to be owners of abandoned property whose last known address is
152.25located in the county. A request under this paragraph must be made in writing by a person
152.26authorized by the county to make the request and is good until canceled.
152.27EFFECTIVE DATE.This section is effective January 1, 2018.

152.28    Sec. 13. Minnesota Statutes 2016, section 345.49, is amended to read:
152.29345.49 CLAIM FOR ABANDONED PROPERTY PAID OR DELIVERED.
153.1    Subdivision 1. Filing. (a) Any person claiming an interest in any property delivered to
153.2the state under sections 345.31 to 345.60 may file a claim thereto or to the proceeds from
153.3the 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 or order
153.6necessary to establish a claim.
153.7    Subd. 2. Appropriation. There is hereby appropriated to the persons entitled to a refund,
153.8from the fund in the state treasury to which the money was credited, an amount sufficient
153.9to 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 9
153.12and 12.
153.13EFFECTIVE DATE.This section is effective the day following final enactment.

153.14    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, or reusable
153.17bag for the packaging of any item or good purchased, provided such purchase is of a size
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 for
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 invalid as
153.24of the effective date of this section.

153.25    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. The
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, to
153.32file an allowed claim.
154.1EFFECTIVE DATE.This section is effective the day following final enactment.

154.2    Sec. 16. REPEALER.
154.3Minnesota Statutes 2016, section 46.131, subdivision 5, is repealed.

154.4ARTICLE 9
154.5TELECOMMUNICATIONS

154.6    Section 1. Minnesota Statutes 2016, section 237.162, subdivision 2, is amended to read:
154.7    Subd. 2. Local government unit. "Local government unit" means a county, home rule
154.8charter or statutory city, or town, or the Metropolitan Council.
154.9EFFECTIVE DATE.This section is effective the day following final enactment.

154.10    Sec. 2. Minnesota Statutes 2016, section 237.162, subdivision 4, is amended to read:
154.11    Subd. 4. Telecommunications right-of-way user. (a) "Telecommunications right-of-way
154.12user" means a person owning or controlling a facility in the public right-of-way, or seeking
154.13to own or control a facility in the public right-of-way, that is used or is intended to be used
154.14for providing wireless service, or transporting telecommunications or other voice or data
154.15information.
154.16(b) A cable communication system defined and regulated under chapter 238, and
154.17telecommunications activities related to providing natural gas or electric energy services
154.18whether provided by, a public utility as defined in section 216B.02, a municipality, a
154.19municipal gas or power agency organized under chapter 453 or 453A, or a cooperative
154.20electric association organized under chapter 308A, are not telecommunications right-of-way
154.21users 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.

154.24    Sec. 3. Minnesota Statutes 2016, section 237.162, subdivision 9, is amended to read:
154.25    Subd. 9. Management costs or rights-of-way management costs. (a) "Management
154.26costs" or "rights-of-way management costs" means the actual costs a local government unit
154.27incurs in managing its public rights-of-way, and includes such costs, if incurred, as those
154.28associated with registering applicants; issuing, processing, and verifying right-of-way or
154.29small wireless facility permit applications; inspecting job sites and restoration projects;
154.30maintaining, supporting, protecting, or moving user equipment during public right-of-way
155.1work; determining the adequacy of right-of-way restoration; restoring work inadequately
155.2performed after providing notice and the opportunity to correct the work; and revoking
155.3right-of-way or small wireless facility permits.
155.4(b) Management costs do not include:
155.5(1) payment by a telecommunications right-of-way user for the use of the public
155.6right-of-way,;
155.7(2) unreasonable fees of a third-party contractor used by a local government unit as part
155.8of managing its public rights-of-way, including but not limited to any third-party contractor
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 unit;
155.11or
155.12(3) the fees and cost of litigation relating to the interpretation of this section or section
155.13237.163 or any ordinance enacted under those sections, or the local unit of government's
155.14fees 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.

155.16    Sec. 4. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
155.17read:
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 to an
155.20existing wireless support structure that is owned privately or by a local government unit.
155.21EFFECTIVE DATE.This section is effective the day following final enactment.

155.22    Sec. 5. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
155.23read:
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 volume
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, and any
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.

156.6    Sec. 6. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
156.7read:
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.

156.11    Sec. 7. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
156.12read:
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 service
156.15network, including:
156.16(1) equipment associated with wireless service;
156.17(2) a radio transceiver, antenna, coaxial or fiber-optic cable, regular and backup power
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 a specific
156.25antenna.
156.26EFFECTIVE DATE.This section is effective the day following final enactment.

157.1    Sec. 8. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
157.2read:
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, and whose
157.5exterior antenna, if any, is no longer than 11 inches.
157.6EFFECTIVE DATE.This section is effective the day following final enactment.

157.7    Sec. 9. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision to
157.8read:
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 or by
157.11means of a mobile device, that is provided using wireless facilities. Wireless service does
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, clause
157.14(6).
157.15EFFECTIVE DATE.This section is effective the day following final enactment.

157.16    Sec. 10. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision
157.17to read:
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.

157.22    Sec. 11. Minnesota Statutes 2016, section 237.162, is amended by adding a subdivision
157.23to read:
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
157.26network.
157.27EFFECTIVE DATE.This section is effective the day following final enactment.

157.28    Sec. 12. Minnesota Statutes 2016, section 237.163, subdivision 2, is amended to read:
157.29    Subd. 2. Generally. (a) Subject to this section, a telecommunications right-of-way user
157.30authorized to do business under the laws of this state or by license of the Federal
158.1Communications Commission may construct, maintain, and operate small wireless facilities,
158.2conduit, cable, switches, and related appurtenances and facilities along, across, upon, above,
158.3and under any public right-of-way.
158.4(b) Subject to this section, a local government unit has the authority to manage its public
158.5rights-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
158.7option of the local government unit. The exercise of this authority and is not mandated under
158.8this section. A local government unit may, by ordinance:
158.9(1) require a telecommunications right-of-way user seeking to excavate or obstruct a
158.10public right-of-way for the purpose of providing telecommunications services to obtain a
158.11right-of-way permit to do so and to impose permit conditions consistent with the local
158.12government unit's management of the right-of-way;
158.13(2) require a telecommunications right-of-way user using, occupying, or seeking to use
158.14or occupy a public right-of-way for the purpose of providing telecommunications services
158.15to register with the local government unit by providing the local government unit with the
158.16following information:
158.17(i) the applicant's name, gopher state one-call registration number under section 216D.03,
158.18address, and telephone and facsimile numbers;
158.19(ii) the name, address, and telephone and facsimile numbers of the applicant's local
158.20representative;
158.21(iii) proof of adequate insurance; and
158.22(iv) other information deemed reasonably necessary by the local government unit for
158.23the efficient administration of the public right-of-way; and
158.24(3) require telecommunications right-of-way users to submit to the local government
158.25unit plans for construction and major maintenance that provide reasonable notice to the
158.26local government unit of projects that the telecommunications right-of-way user expects to
158.27undertake that may require excavation and obstruction of public rights-of-way.
158.28(c) A local government unit may also require a telecommunications right-of-way user
158.29that is registered with the local government unit pursuant to paragraph (b), clause (2), to
158.30periodically 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 facility
159.2permits; or
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 a public
159.6right-of-way, subject to the approval procedures under this section and, for collocation on
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 wireless
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, except
159.13that a local government unit may require a person to obtain a special or conditional land
159.14use permit to install a new wireless support structure for the siting of a small wireless facility
159.15in a right-of-way in a district or area zoned for single-family residential use or within a
159.16historic district established by federal or state law or city ordinance as of the date of
159.17application for a small wireless facility permit. This paragraph does not apply to areas
159.18outside a public right-of-way that are zoned and used exclusively for single-family residential
159.19use.
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 has not
159.22enacted an ordinance regulating public rights-of-way as of May 18, 2017.

159.23    Sec. 13. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
159.24to read:
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 wireless
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 any
159.30information that:
159.31(i) has previously been provided to the local government unit by the applicant in an
159.32application for a small wireless permit, which specific reference shall be provided to the
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 on
160.6a nondiscriminatory basis; and
160.7(4) must specify that the term of a small wireless facility permit is equal to the length
160.8of time that the small wireless facility is in use, unless the permit is revoked under this
160.9section.
160.10(b) An applicant may file a consolidated permit application to collocate up to 15 small
160.11wireless facilities, or a greater number if agreed to by a local government unit, provided
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 may
160.17approve a permit for some small wireless facilities and deny a permit for others, but may
160.18not use denial of one or more permits as a basis to deny all the small wireless facilities in
160.19the application.
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, it
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 wireless
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 similar
160.30or smaller in size, weight, height, and wind or structural loading than the small wireless
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 work
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 small
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 to
161.9place the small wireless facility, nor shall any provision of this chapter be deemed to affect
161.10the rates, terms, and conditions for access to or placement of a small wireless facility or a
161.11wireless support structure not owned by a local government unit. This subdivision does not
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 support
161.14structures.
161.15(f) No later than six months after the effective date of this act or three months after
161.16receiving a small wireless facility permit application from a wireless service provider, a
161.17local government unit that has elected to set forth terms and conditions of collocation in a
161.18standard small wireless facility collocation agreement shall develop and make available an
161.19agreement that complies with the requirements of this section and section 237.162. A
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 collocation
161.22agreement may incorporate additional terms and conditions mutually agreed upon into a
161.23small wireless facility collocation agreement. A small wireless facility collocation agreement
161.24between a local government unit and a wireless service provider is considered public data
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 the
161.27installation, placement, maintenance, or operation of a small wireless facility to provide
161.28wireless service and shall not be construed to confer authorization to (1) provide any service
161.29other than a wireless service, or (2) install, place, maintain, or operate a wireline backhaul
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; and
162.1(3) must comply with this section and section 237.162.
162.2EFFECTIVE DATE.This section is effective the day following final enactment.

162.3    Sec. 14. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
162.4to read:
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 structure
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, unless the
162.12local government unit agrees to a greater height, subject to local zoning regulations, and
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 at
162.16the height of the existing wireless support structure, unless the local government unit agrees
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 this act
162.19may not extend more than ten feet above an existing wireless support structure in place as
162.20of the effective date of this act.
162.21EFFECTIVE DATE.This section is effective the day following final enactment.

162.22    Sec. 15. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
162.23to read:
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 to a
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 small
162.29wireless facility permit, a local government unit may condition its approval on compliance
162.30with:
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; and
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. To toll
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 is
163.9limited to documents or information publicly required as of the date of application and
163.10reasonably related to a local government unit's determination whether the proposed equipment
163.11falls within the definition of a small wireless facility and whether the proposed deployment
163.12satisfies all health, safety, and welfare regulations applicable to the small wireless facility
163.13permit request. Upon an applicant's submittal of additional documents or information in
163.14response to a notice of incompleteness, the local government unit has ten days to notify the
163.15applicant in writing of any information requested in the initial notice of incompleteness that
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. Requests
163.18for information not requested in the initial notice of incompleteness do not toll the 90-day
163.19clock. Parties can mutually agree in writing to toll the 90-day clock at any time. Section
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 permit
163.24and any associated encroachment or building permit required by a local government unit,
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 the local
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 and
163.30deciding to approve or deny a small wireless facility permit.
163.31EFFECTIVE DATE.This section is effective the day following final enactment.

164.1    Sec. 16. Minnesota Statutes 2016, section 237.163, subdivision 4, is amended to read:
164.2    Subd. 4. Permit denial or revocation. (a) A local government unit may deny any
164.3application for a right-of-way or small wireless facility permit if the telecommunications
164.4right-of-way user does not comply with a provision of this section.
164.5(b) A local government unit may deny an application for a right-of-way permit if the
164.6local government unit determines that the denial is necessary to protect the health, safety,
164.7and welfare or when necessary to protect the public right-of-way and its current use.
164.8(c) A local government unit may revoke a right-of-way or small wireless facility permit
164.9granted to a telecommunications right-of-way user, with or without fee refund, in the event
164.10of a substantial breach of the terms and conditions of statute, ordinance, rule, or regulation
164.11or any material condition of the permit. A substantial breach by a permittee includes, but
164.12is not limited to, the following:
164.13(1) a material violation of a provision of the right-of-way or small wireless facility
164.14permit;
164.15(2) an evasion or attempt to evade any material provision of the right-of-way or small
164.16wireless facility permit, or the perpetration or attempt to perpetrate any fraud or deceit upon
164.17the local government unit or its citizens;
164.18(3) a material misrepresentation of fact in the right-of-way or small wireless facility
164.19permit application;
164.20(4) a failure to complete work in a timely manner, unless a permit extension is obtained
164.21or unless the failure to complete work is due to reasons beyond the permittee's control; and
164.22(5) a failure to correct, in a timely manner, work that does not conform to applicable
164.23standards, conditions, or codes, upon inspection and notification by the local government
164.24unit of the faulty condition.
164.25(d) Subject to this subdivision, a local government unit may not deny an application for
164.26a right-of-way or small wireless facility permit for failure to include a project in a plan
164.27submitted to the local government unit under subdivision 2, paragraph (b), clause (3), when
164.28the telecommunications right-of-way user has used commercially reasonable efforts to
164.29anticipate and plan for the project.
164.30(e) In no event may a local government unit unreasonably withhold approval of an
164.31application for a right-of-way or small wireless facility permit, or unreasonably revoke a
164.32permit.
165.1(f) Any denial or revocation of a right-of-way or small wireless facility permit must be
165.2made in writing and must document the basis for the denial. The local government unit must
165.3notify the telecommunications right-of-way user in writing within three business days of
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 user
165.7resubmits the application within 30 days of receiving written notice of the denial, it may
165.8not be charged an additional filing or processing fee. The local government unit must approve
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.

165.11    Sec. 17. Minnesota Statutes 2016, section 237.163, subdivision 6, is amended to read:
165.12    Subd. 6. Fees. (a) A local government unit may recover its right-of-way management
165.13costs by imposing a fee for registration, a fee for each right-of-way or small wireless facility
165.14permit, or, when appropriate, a fee applicable to a particular telecommunications right-of-way
165.15user when that user causes the local government unit to incur costs as a result of actions or
165.16inactions of that user. A local government unit may not recover costs from a
165.17telecommunications 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.
165.19(b) Fees, or other right-of-way obligations, imposed by a local government unit on
165.20telecommunications right-of-way users under this section must be:
165.21(1) based on the actual costs incurred by the local government unit in managing the
165.22public right-of-way;
165.23(2) based on an allocation among all users of the public right-of-way, including the local
165.24government unit itself, which shall reflect the proportionate costs imposed on the local
165.25government unit by each of the various types of uses of the public rights-of-way;
165.26(3) imposed on a competitively neutral basis; and
165.27(4) imposed in a manner so that aboveground uses of public rights-of-way do not bear
165.28costs incurred by the local government unit to regulate underground uses of public
165.29rights-of-way.
165.30(c) The rights, duties, and obligations regarding the use of the public right-of-way
165.31imposed under this section must be applied to all users of the public right-of-way, including
165.32the local government unit while recognizing regulation must reflect the distinct engineering,
165.33construction, operation, maintenance and public and worker safety requirements, and
166.1standards applicable to various users of the public rights-of-way. For users subject to the
166.2franchising authority of a local government unit, to the extent those rights, duties, and
166.3obligations are addressed in the terms of an applicable franchise agreement, the terms of
166.4the franchise shall prevail over any conflicting provision in an ordinance.
166.5(d) A wireless service provider may collocate small wireless facilities on wireless support
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 entity,
166.9other than a standard small wireless facility collocation agreement under subdivision 3a,
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 to
166.18a wireless support structure owned by the local government unit a fee, in addition to other
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 purchased
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 (i) or
166.28(ii).
166.29EFFECTIVE DATE.This section is effective the day following final enactment.

167.1    Sec. 18. Minnesota Statutes 2016, section 237.163, subdivision 7, is amended to read:
167.2    Subd. 7. Additional right-of-way provisions. (a) In managing the public rights-of-way
167.3and in imposing fees under this section, no local government unit may:
167.4(1) unlawfully discriminate among telecommunications right-of-way users;
167.5(2) grant a preference to any telecommunications right-of-way user;
167.6(3) create or erect any unreasonable requirement for entry to the public rights-of-way
167.7by telecommunications right-of-way users; or
167.8(4) require a telecommunications right-of-way user to obtain a franchise or pay for the
167.9use of the right-of-way.
167.10(b) A telecommunications right-of-way user need not apply for or obtain right-of-way
167.11permits for facilities that are located in public rights-of-way on May 10, 1997, for which
167.12the user has obtained the required consent of the local government unit, or that are otherwise
167.13lawfully occupying the public right-of-way. However, the telecommunications right-of-way
167.14user may be required to register and to obtain a right-of-way permit for an excavation or
167.15obstruction of existing facilities within the public right-of-way after May 10, 1997.
167.16(c) Data and documents exchanged between a local government unit and a
167.17telecommunications right-of-way user are subject to the terms of chapter 13. A local
167.18government unit not complying with this paragraph is subject to the penalties set forth in
167.19section 13.08.
167.20(d) A local government unit may not collect a fee imposed under this section through
167.21the provision of in-kind services by a telecommunications right-of-way user, nor may a
167.22local government unit require the provision of in-kind services as a condition of consent to
167.23use the local government unit's public right-of-way or to obtain a small wireless facility
167.24permit.
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 to
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.

168.1    Sec. 19. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
168.2to read:
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 to act
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 to
168.10impose on the telecommunications right-of-way user under this section.
168.11EFFECTIVE DATE.This section is effective the day following final enactment.

168.12    Sec. 20. Minnesota Statutes 2016, section 237.163, is amended by adding a subdivision
168.13to read:
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, or served
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 facilities
168.19issued a permit by a local government unit before the effective date of this act under an
168.20ordinance enacted before May 18, 2017, that regulates the collocation of small wireless
168.21facilities.
168.22EFFECTIVE DATE.This section is effective the day following final enactment.

168.23ARTICLE 10
168.24ENERGY POLICY

168.25    Section 1. Minnesota Statutes 2016, section 3.8851, subdivision 1, is amended to read:
168.26    Subdivision 1. Establishment. (a) There is established a Legislative Energy Commission
168.27to study and to make recommendations for legislation concerning issues related to its duties
168.28under subdivision 3.
168.29    (b) The commission consists of:
168.30    (1) ten nine members of the house of representatives, five of whom are appointed by
168.31the speaker of the house, and four of whom must be from are appointed by the leader of the
169.1minority caucus, and including the chair of the committee with primary jurisdiction over
169.2energy policy; the chair or another member of each of the committees with primary
169.3jurisdiction over environmental policy, agricultural policy, and transportation policy; and
169.4    (2) ten nine members of the senate to be, five of whom are appointed by the Subcommittee
169.5on 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
169.7jurisdiction over energy policy; and the chair or another member of each of the committees
169.8with primary jurisdiction over environmental policy, agricultural policy, and transportation
169.9policy.
169.10    (c) The commission may employ full-time and part-time staff, contract for consulting
169.11services, and may reimburse the expenses of persons requested to assist it in its duties. The
169.12director of the Legislative Coordinating Commission shall assist the commission in
169.13administrative matters. The commission shall elect cochairs, one member of the house of
169.14representatives and one member of the senate from among the committee and subcommittee
169.15chairs named to the commission. The commission members from the house of representatives
169.16shall elect the house of representatives cochair, and the commission members from the
169.17senate shall elect the senate cochair.
169.18EFFECTIVE DATE.This section is effective the day following final enactment.

169.19    Sec. 2. Minnesota Statutes 2016, section 16B.323, is amended to read:
169.2016B.323 SOLAR ENERGY IN STATE BUILDINGS.
169.21    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
169.22the meanings given.
169.23(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
169.25Corporation; or
169.26(2) solar photovoltaic modules that:
169.27(i) are manufactured at a manufacturing facility in Minnesota that is registered and
169.28authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory,
169.29CSA International, Intertek, or an equivalent independent testing agency;
169.30(ii) bear certification marks from Underwriters Laboratory, CSA International, Intertek,
169.31or 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).
170.3For the purposes of clause (2), "manufactured" has the meaning given in section
170.4116C.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
170.6substantial change to the interior configuration or the energy system of an existing building.
170.7(d) (c) "Solar energy system" means solar photovoltaic modules devices alone or installed
170.8in conjunction with a solar thermal system.
170.9(e) "Solar Photovoltaic module (d) "Photovoltaic device" has the meaning given in
170.10section 116C.7791, subdivision 1, paragraph (e) 216C.06, subdivision 16.
170.11(f) (e) "Solar thermal system" has the meaning given "qualifying solar thermal project"
170.12in section 216B.2411, subdivision 2, paragraph (e).
170.13(g) (f) "State building" means a building whose construction or renovation is paid wholly
170.14or in part by the state from the bond proceeds fund.
170.15    Subd. 2. Solar energy system. (a) As provided in paragraphs (b) and (c), a project for
170.16the construction or major renovation of a state building, after the completion of a cost-benefit
170.17analysis, may include installation of "Made in Minnesota" solar energy systems of 40 up
170.18to 300 kilowatts capacity on, adjacent, or in proximity to the state building.
170.19(b) The capacity of a solar energy system must be less than 40 300 kilowatts to the extent
170.20necessary to match the electrical load of the building, or to the extent the capacity must be
170.21no more than necessary to keep the costs for the installation below the five percent maximum
170.22set by paragraph (c).
170.23(c) The cost of the solar energy system must not exceed five percent of the appropriations
170.24from the bond proceeds fund for the construction or renovation of the state building. Purchase
170.25and installation of a solar thermal system may account for no more than 25 percent of the
170.26cost of a solar energy system installation.
170.27(d) A project subject to this section is ineligible to receive a rebate for the installation
170.28of a solar energy system under section 116C.7791 or from any utility.
170.29EFFECTIVE DATE.This section is effective the day following final enactment.

171.1    Sec. 3. Minnesota Statutes 2016, section 116C.779, subdivision 1, is amended to read:
171.2    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 treasury.
171.4Appropriations and transfers to the account shall be credited to the account. Earnings, such
171.5as interest, dividends, and any other earnings arising from assets of the account, shall be
171.6credited to the account. Funds remaining in the account at the end of a fiscal year are not
171.7canceled to the general fund but remain in the account until expended. The account shall
171.8be administered by the commissioner of management and budget as provided under this
171.9section.
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 cycles
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 subject
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
171.19plant must transfer to a renewable development the renewable development account $500,000
171.20each year for each dry cask containing spent fuel that is located at the Prairie Island power
171.21plant for each year the plant is in operation, and $7,500,000 each year the plant is not in
171.22operation if ordered by the commission pursuant to paragraph (c) (i). The fund transfer must
171.23be made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility
171.24at Prairie Island for any part of a year.
171.25    (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
171.27plant must transfer to the renewable development account $350,000 each year for each dry
171.28cask containing spent fuel that is located at the Monticello nuclear power plant for each
171.29year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
171.30by the commission pursuant to paragraph (c) (i). The fund transfer must be made if nuclear
171.31waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
171.32any part of a year.
172.1    (e) Each year, the public utility shall withhold from the funds transferred to the renewable
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 year.
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 under
172.6section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
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 economic
172.9development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
172.10fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
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, with
172.15an entity owned or controlled, directly or indirectly, by two municipal utilities located north
172.16of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
172.17section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
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, or
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 the transfer
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 (f)
172.25and (g) is limited to the amount deposited into the renewable development account, and its
172.26predecessor, the renewable development account, established under this section, that was
172.27not required to be deposited into the account under Laws 1994, chapter 641, article 1, section
172.2810.
172.29    (c) (i) After discontinuation of operation of the Prairie Island nuclear plant or the
172.30Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
172.31discontinued facility, the commission shall require the public utility to pay $7,500,000 for
172.32the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
172.33facility for any year in which the commission finds, by the preponderance of the evidence,
172.34that the public utility did not make a good faith effort to remove the spent nuclear fuel stored
173.1at the facility to a permanent or interim storage site out of the state. This determination shall
173.2be made at least every two years.
173.3(d) (j) Funds in the account may be expended only for any of the following purposes:
173.4(1) to increase the market penetration within the state of renewable electric energy
173.5resources at reasonable costs;
173.6(2) to promote the start-up, expansion, and attraction of renewable electric energy projects
173.7and companies within the state;
173.8(3) to stimulate research and development within the state into of renewable electric
173.9energy technologies; and
173.10(4) to develop near-commercial and demonstration scale renewable electric projects or
173.11near-commercial and demonstration scale electric infrastructure delivery projects if those
173.12delivery projects enhance the delivery of renewable electric energy
173.13(2) to encourage grid modernization, including, but not limited to, projects that implement
173.14electricity storage, load control, and smart meter technology; and
173.15(3) to stimulate other innovative energy projects that reduce demand and increase system
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 or the
173.19Prairie Island Indian community or its members.
173.20The utility that owns a nuclear generating plant is eligible to apply for renewable development
173.21account 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 threats;
173.28and
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, energy
174.1storage and microgrids, technologies to enable demand response, and other innovative
174.2technologies.
174.3(e) Expenditures authorized by this subdivision from the account may be made only
174.4after approval by order of the Public Utilities Commission upon a petition by the public
174.5utility. The commission may approve proposed expenditures, may disapprove proposed
174.6expenditures that it finds to be not in compliance with this subdivision or otherwise not in
174.7the public interest, and may, if agreed to by the public utility, modify proposed expenditures.
174.8The commission may approve reasonable and necessary expenditures for administering the
174.9account in an amount not to exceed five percent of expenditures. Commission approval is
174.10not required for expenditures required under subdivisions 2 and 3, section 116C.7791, or
174.11other law.
174.12(f) The account shall be managed by the public utility but the public utility must consult
174.13about account expenditures with an (l) A renewable development account advisory group
174.14that 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 by
174.16that community's tribal council, shall develop recommendations on account expenditures.
174.17The commission may require that other interests be represented on the advisory group. The
174.18advisory group must be consulted with respect to the general scope of expenditures in
174.19designing design a request for proposal and in evaluating evaluate projects submitted in
174.20response to a request for proposals. In addition to consulting with The advisory group, the
174.21public utility must utilize an independent third-party expert to evaluate proposals submitted
174.22in response to a request for proposal, including all proposals made by the public utility. A
174.23request for proposal for research and development under paragraph (d) (j), clause (3) (1),
174.24may be limited to or include a request to higher education institutions located in Minnesota
174.25for multiple projects authorized under paragraph (d) (j), clause (3) (1). The request for
174.26multiple projects may include a provision that exempts the projects from the third-party
174.27expert review and instead provides for project evaluation and selection by a merit peer
174.28review grant system. The utility should attempt to reach agreement with the advisory group
174.29after consulting with it but the utility has full and sole authority to determine which
174.30expendituresshall be submitted to the commission for commission approval. In the process
174.31of determining request for proposal scope and subject and in evaluating responses to request
174.32for proposals, the public utility advisory group must strongly consider, where reasonable,
174.33potential 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 by
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 public utility,
175.4modify proposed expenditures. The commission shall, by order, submit its funding
175.5recommendations to the legislature as provided under paragraph (n).
175.6(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 over
175.8energy policy and finance annually by February 15. Expenditures from the account may
175.9not must be directly appropriated by the legislature by a law enacted after January 1, 2012,
175.10and unless appropriated by a law enacted prior to that date may be expended only pursuant
175.11to 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 for
175.14a project recommended by the commission; and
175.15(2) may not appropriate money for a project the commission has not recommended
175.16funding.
175.17(h) (n) A request for proposal for renewable energy generation projects must, when
175.18feasible and reasonable, give preference to projects that are most cost-effective for a particular
175.19energy source.
175.20(i) (o) The public utility advisory group must annually, by February 15, report to the
175.21chairs and ranking minority members of the legislative committees with jurisdiction over
175.22energy policy on projects funded by the account for the prior year and all previous years.
175.23The report must, to the extent possible and reasonable, itemize the actual and projected
175.24financial 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 funds in
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 utility,
175.29and the advisory group.
175.30(j) (q) A project receiving funds from the account must produce a written final report
175.31that includes sufficient detail for technical readers and a clearly written summary for
175.32nontechnical readers. The report must include an evaluation of the project's financial,
175.33environmental, and other benefits to the state and the public utility's ratepayers.
176.1(k) (r) Final reports, any mid-project status reports, and renewable development account
176.2financial reports must be posted online on a public Web site designated by the commission
176.3commissioner of commerce.
176.4(l) (s) All final reports must acknowledge that the project was made possible in whole
176.5or part by the Minnesota renewable development fund account, noting that the fund account
176.6is 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.

176.10    Sec. 4. Minnesota Statutes 2016, section 116C.7792, is amended to read:
176.11116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
176.12The utility subject to section 116C.779 shall operate a program to provide solar energy
176.13production incentives for solar energy systems of no more than a total nameplate capacity
176.14of 20 kilowatts direct current. The program shall be operated for five eight consecutive
176.15calendar years commencing in 2014. $5,000,000 shall be allocated for in each of the five
176.16first four 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 the renewable
176.18development account 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
176.20the solar production incentive program. The solar system must be sized to less than 120
176.21percent of the customer's on-site annual energy consumption. The production incentive
176.22must be paid for ten years commencing with the commissioning of the system. The utility
176.23must file a plan to operate the program with the commissioner of commerce. The utility
176.24may not operate the program until it is approved by the commissioner.
176.25EFFECTIVE DATE.This section is effective the day following final enactment.

176.26    Sec. 5. Minnesota Statutes 2016, section 216B.164, subdivision 2, is amended to read:
176.27    Subd. 2. Applicability; rights maintained. (a) This section as well as any rules
176.28promulgated by the commission to implement this section or the Public Utility Regulatory
176.29Policies Act of 1978, Public Law 95-617, Statutes at Large, volume 92, page 3117, as
176.30amended, and the Federal Energy Regulatory Commission regulations thereunder, Code of
176.31Federal Regulations, title 18, part 292, as amended, shall, unless otherwise provided in this
177.1section, apply to all Minnesota electric utilities, including cooperative electric associations
177.2and municipal electric utilities.
177.3(b) Nothing in this section shall be construed to alter the rights and duties of any person
177.4pursuant to the Public Utility Regulatory Policies Act of 1978, Public Law 95-617, Statutes
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.

177.7    Sec. 6. Minnesota Statutes 2016, section 216B.164, subdivision 5, is amended to read:
177.8    Subd. 5. Dispute; resolution. (a) In the event of disputes between an electric a public
177.9utility and a qualifying facility, either party may request a determination of the issue by the
177.10commission. In any such determination, the burden of proof shall be on the public utility.
177.11The commission in its order resolving each such dispute shall require payments to the
177.12prevailing party of the prevailing party's costs, disbursements, and reasonable attorneys'
177.13fees, except that the qualifying facility will be required to pay the costs, disbursements, and
177.14attorneys' fees of the public utility only if the commission finds that the claims of the
177.15qualifying facility in the dispute have been made in bad faith, or are a sham, or are frivolous.
177.16(b) Notwithstanding subdivisions 9 and 11, a qualifying facility over 20 megawatts may,
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 (a).
177.19EFFECTIVE DATE.This section is effective the day following final enactment.

177.20    Sec. 7. Minnesota Statutes 2016, section 216B.164, subdivision 9, is amended to read:
177.21    Subd. 9. Municipal electric utility. For purposes of this section only, except subdivision
177.225, and with respect to municipal electric utilities only, the term "commission" means the
177.23governing body of each municipal electric utility that adopts and has in effect rules
177.24implementing this section which are consistent with the rules adopted by the Minnesota
177.25Public Utilities Commission under subdivision 6. As used in this subdivision, the governing
177.26body of a municipal electric utility means the city council of that municipality; except that,
177.27if another board, commission, or body is empowered by law or resolution of the city council
177.28or by its charter to establish and regulate rates and days for the distribution of electric energy
177.29within the service area of the city, that board, commission, or body shall be considered the
177.30governing body of the municipal electric utility.
177.31EFFECTIVE DATE.This section is effective the day following final enactment.

178.1    Sec. 8. Minnesota Statutes 2016, section 216B.164, is amended by adding a subdivision
178.2to read:
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) elects,
178.5by resolution, to assume the authority delegated to the Public Utilities Commission over
178.6cooperative electric associations under this section, and (2) adopts and has in effect rules
178.7implementing this section. The rules must provide for a process to resolve disputes that
178.8arise under this section, and must include a provision that a request by either party for
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 and
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 more
178.14of its members, either party may request mediation of the dispute only after all attempts to
178.15settle the dispute under the cooperative electric association's dispute resolution process have
178.16been exhausted. The parties must mutually agree upon the selection of a mediator, who
178.17must be listed on the roster of neutrals for civil matters established by the state court
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 of
178.21mediation.
178.22(c) Except as provided in paragraph (d), any proceedings concerning the activities of a
178.23cooperative electric association under this section that are pending at the Public Utilities
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 fee under
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, in
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 not
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 in
178.34accordance with the commission's directives.
179.1(e) For a cooperative electric association that elects to operate under the provisions of
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 under
179.4the cooperative association's rules and paragraph (b), as applicable.
179.5EFFECTIVE DATE.This section is effective the day following final enactment.

179.6    Sec. 9. Minnesota Statutes 2016, section 216B.1691, subdivision 2f, is amended to read:
179.7    Subd. 2f. Solar energy standard. (a) In addition to the requirements of subdivisions 2a
179.8and 2b, each public utility shall generate or procure sufficient electricity generated by solar
179.9energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at
179.10least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is
179.11generated by solar energy.
179.12(b) For a public utility with more than 200,000 retail electric customers, at least ten
179.13percent of the 1.5 percent goal must be met by solar energy generated by or procured from
179.14solar 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 by
179.17or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
179.18less; and
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 utility
179.21that has been approved by the commission.
179.22(b) (d) The solar energy standard established in this subdivision is subject to all the
179.23provisions of this section governing a utility's standard obligation under subdivision 2a.
179.24(c) (e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the
179.25retail electric sales in Minnesota be generated by solar energy.
179.26(d) (f) For the purposes of calculating the total retail electric sales of a public utility
179.27under this subdivision, there shall be excluded retail electric sales to customers that are:
179.28(1) an iron mining extraction and processing facility, including a scram mining facility
179.29as defined in Minnesota Rules, part 6130.0100, subpart 16; or
179.30(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
179.31manufacturer.
180.1Those customers may not have included in the rates charged to them by the public utility
180.2any costs of satisfying the solar standard specified by this subdivision.
180.3(e) (g) A public utility may not use energy used to satisfy the solar energy standard under
180.4this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
180.5not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
180.6solar standard under this subdivision.
180.7(f) (h) Notwithstanding any law to the contrary, a solar renewable energy credit associated
180.8with a solar photovoltaic device installed and generating electricity in Minnesota after
180.9August 1, 2013, but before 2020 may be used to meet the solar energy standard established
180.10under this subdivision.
180.11(g) (i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall
180.12file a report with the commission reporting its progress in achieving the solar energy standard
180.13established under this subdivision.
180.14EFFECTIVE DATE.This section is effective July 1, 2017.

180.15    Sec. 10. Minnesota Statutes 2016, section 216B.1694, subdivision 3, is amended to read:
180.16    Subd. 3. Staging and permitting. (a) A natural gas-fired plant that is located on one
180.17site designated as an innovative energy project site under subdivision 1, clause (3), is
180.18accorded the regulatory incentives granted to an innovative energy project under subdivision
180.192, clauses (1) to (3), and may exercise the authorities therein.
180.20(b) Following issuance of a final state or federal environmental impact statement for an
180.21innovative energy project that was a subject of contested case proceedings before an
180.22administrative law judge:
180.23(1) site and route permits and water appropriation approvals for an innovative energy
180.24project must also be deemed valid for a plant meeting the requirements of paragraph (a)
180.25and shall remain valid until the earlier later of (i) four years from the date the final required
180.26state or federal preconstruction permit is issued or (ii) June 30, 2019 2025; and
180.27(2) no air, water, or other permit issued by a state agency that is necessary for constructing
180.28an innovative energy project may be the subject of contested case hearings, notwithstanding
180.29Minnesota Rules, parts 7000.1750 to 7000.2200.

181.1    Sec. 11. Minnesota Statutes 2016, section 216B.241, subdivision 1b, is amended to read:
181.2    Subd. 1b. Conservation improvement by cooperative association or municipality.
181.3    (a) This subdivision applies to:
181.4    (1) a cooperative electric association that provides retail service to its more than 5,000
181.5members;
181.6    (2) a municipality that provides electric service to more than 1,000 retail customers; and
181.7    (3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales
181.8to natural gas to retail customers.
181.9    (b) Each cooperative electric association and municipality subject to this subdivision
181.10shall spend and invest for energy conservation improvements under this subdivision the
181.11following amounts:
181.12    (1) for a municipality, 0.5 percent of its gross operating revenues from the sale of gas
181.13and 1.5 percent of its gross operating revenues from the sale of electricity, excluding gross
181.14operating revenues from electric and gas service provided in the state to large electric
181.15customer facilities; and
181.16    (2) for a cooperative electric association, 1.5 percent of its gross operating revenues
181.17from service provided in the state, excluding gross operating revenues from service provided
181.18in the state to large electric customer facilities indirectly through a distribution cooperative
181.19electric association.
181.20    (c) Each municipality and cooperative electric association subject to this subdivision
181.21shall identify and implement energy conservation improvement spending and investments
181.22that are appropriate for the municipality or association, except that a municipality or
181.23association may not spend or invest for energy conservation improvements that directly
181.24benefit a large energy facility or a large electric customer facility for which the commissioner
181.25has issued an exemption under subdivision 1a, paragraph (b).
181.26    (d) Each municipality and cooperative electric association subject to this subdivision
181.27may spend and invest annually up to ten percent of the total amount required to be spent
181.28and invested on energy conservation improvements under this subdivision on research and
181.29development projects that meet the definition of energy conservation improvement in
181.30subdivision 1 and that are funded directly by the municipality or cooperative electric
181.31association.
181.32    (e) Load-management activities may be used to meet 50 percent of the conservation
181.33investment and spending requirements of this subdivision.
182.1    (f) A generation and transmission cooperative electric association that provides energy
182.2services to cooperative electric associations that provide electric service at retail to consumers
182.3may invest in energy conservation improvements on behalf of the associations it serves and
182.4may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate
182.5basis. A municipal power agency or other not-for-profit entity that provides energy service
182.6to municipal utilities that provide electric service at retail may invest in energy conservation
182.7improvements on behalf of the municipal utilities it serves and may fulfill the conservation,
182.8spending, reporting, and energy-savings goals on an aggregate basis, under an agreement
182.9between the municipal power agency or not-for-profit entity and each municipal utility for
182.10funding the investments.
182.11    (g) Each municipality or cooperative shall file energy conservation improvement plans
182.12by June 1 on a schedule determined by order of the commissioner, but at least every three
182.13years. Plans received by June 1 must be approved or approved as modified by the
182.14commissioner by December 1 of the same year. The municipality or cooperative shall
182.15provide an evaluation to the commissioner detailing its energy conservation improvement
182.16spending and investments for the previous period. The evaluation must briefly describe
182.17each conservation program and must specify the energy savings or increased efficiency in
182.18the use of energy within the service territory of the utility or association that is the result of
182.19the spending and investments. The evaluation must analyze the cost-effectiveness of the
182.20utility's or association's conservation programs, using a list of baseline energy and capacity
182.21savings assumptions developed in consultation with the department. The commissioner
182.22shall review each evaluation and make recommendations, where appropriate, to the
182.23municipality or association to increase the effectiveness of conservation improvement
182.24activities.
182.25    (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
182.27entity providing energy efficiency and conservation services under this section to undertake
182.28a program suggested by an outside source, including a political subdivision, nonprofit
182.29corporation, or community organization.
182.30EFFECTIVE DATE.This section is effective the day following final enactment.

182.31    Sec. 12. Minnesota Statutes 2016, section 216B.241, subdivision 1c, is amended to read:
182.32    Subd. 1c. Energy-saving goals. (a) The commissioner shall establish energy-saving
182.33goals for energy conservation improvement expenditures and shall evaluate an energy
182.34conservation improvement program on how well it meets the goals set.
183.1    (b) Each individual utility and association shall have an annual energy-savings goal
183.2equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
183.3commissioner under paragraph (d). The savings goals must be calculated based on the most
183.4recent three-year weather-normalized average. A utility or association may elect to carry
183.5forward energy savings in excess of 1.5 percent for a year to the succeeding three calendar
183.6years, except that savings from electric utility infrastructure projects allowed under paragraph
183.7(d) may be carried forward for five years. A particular energy savings can be used only for
183.8one year's goal.
183.9    (c) The commissioner must adopt a filing schedule that is designed to have all utilities
183.10and associations operating under an energy-savings plan by calendar year 2010.
183.11    (d) In its energy conservation improvement plan filing, a utility or association may
183.12request the commissioner to adjust its annual energy-savings percentage goal based on its
183.13historical conservation investment experience, customer class makeup, load growth, a
183.14conservation potential study, or other factors the commissioner determines warrants an
183.15adjustment. The commissioner may not approve a plan of a public utility that provides for
183.16an annual energy-savings goal of less than one percent of gross annual retail energy sales
183.17from energy conservation improvements.
183.18    A utility or association may include in its energy conservation plan energy savings from
183.19electric utility infrastructure projects approved by the commission under section 216B.1636
183.20or waste heat recovery converted into electricity projects that may count as energy savings
183.21in addition to a minimum energy-savings goal of at least one percent for energy conservation
183.22improvements. Energy savings from electric utility infrastructure projects, as defined in
183.23section 216B.1636, may be included in the energy conservation plan of a municipal utility
183.24or cooperative electric association. Electric utility infrastructure projects must result in
183.25increased energy efficiency greater than that which would have occurred through normal
183.26maintenance activity.
183.27    (e) An energy-savings goal is not satisfied by attaining the revenue expenditure
183.28requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
183.29energy-savings goal established in this subdivision.
183.30    (f) An association or utility is not required to make energy conservation investments to
183.31attain the energy-savings goals of this subdivision that are not cost-effective even if the
183.32investment is necessary to attain the energy-savings goals. For the purpose of this paragraph,
183.33in determining cost-effectiveness, the commissioner shall consider the costs and benefits
183.34to ratepayers, the utility, participants, and society. In addition, the commissioner shall
184.1consider the rate at which an association or municipal utility is increasing its energy savings
184.2and its expenditures on energy conservation.
184.3    (g) On an annual basis, the commissioner shall produce and make publicly available a
184.4report on the annual energy savings and estimated carbon dioxide reductions achieved by
184.5the energy conservation improvement programs for the two most recent years for which
184.6data is available. The commissioner shall report on program performance both in the
184.7aggregate and for each entity filing an energy conservation improvement plan for approval
184.8or review by the commissioner.
184.9    (h) By January 15, 2010, the commissioner shall report to the legislature whether the
184.10spending requirements under subdivisions 1a and 1b are necessary to achieve the
184.11energy-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 sales
184.16to retail natural gas customers.
184.17EFFECTIVE DATE.This section is effective the day following final enactment.

184.18    Sec. 13. Minnesota Statutes 2016, section 216B.241, subdivision 1d, is amended to read:
184.19    Subd. 1d. Technical assistance. (a) The commissioner shall evaluate energy conservation
184.20improvement programs on the basis of cost-effectiveness and the reliability of the
184.21technologies employed. The commissioner shall, by order, establish, maintain, and update
184.22energy-savings assumptions that must be used when filing energy conservation improvement
184.23programs. The commissioner shall establish an inventory of the most effective energy
184.24conservation programs, techniques, and technologies, and encourage all Minnesota utilities
184.25to implement them, where appropriate, in their service territories. The commissioner shall
184.26describe these programs in sufficient detail to provide a utility reasonable guidance
184.27concerning implementation. The commissioner shall prioritize the opportunities in order of
184.28potential energy savings and in order of cost-effectiveness. The commissioner may contract
184.29with a third party to carry out any of the commissioner's duties under this subdivision, and
184.30to obtain technical assistance to evaluate the effectiveness of any conservation improvement
184.31program. The commissioner may assess up to $850,000 annually for the purposes of this
184.32subdivision. The assessments must be deposited in the state treasury and credited to the
184.33energy and conservation account created under subdivision 2a. An assessment made under
185.1this subdivision is not subject to the cap on assessments provided by section 216B.62, or
185.2any other law.
185.3    (b) Of the assessment authorized under paragraph (a), the commissioner may expend
185.4up to $400,000 annually for the purpose of developing, operating, maintaining, and providing
185.5technical support for a uniform electronic data reporting and tracking system available to
185.6all utilities subject to this section, in order to enable accurate measurement of the cost and
185.7energy savings of the energy conservation improvements required by this section. This
185.8paragraph expires June 30, 2017, and may be used for no more than three annual assessments
185.9occurring prior to that date 2018.
185.10EFFECTIVE DATE.This section is effective the day following final enactment.

185.11    Sec. 14. Minnesota Statutes 2016, section 216B.241, subdivision 2, is amended to read:
185.12    Subd. 2. Programs. (a) The commissioner may require public utilities to make
185.13investments and expenditures in energy conservation improvements, explicitly setting forth
185.14the interest rates, prices, and terms under which the improvements must be offered to the
185.15customers. The required programs must cover no more than a three-year period. Public
185.16utilities shall file conservation improvement plans by June 1, on a schedule determined by
185.17order of the commissioner, but at least every three years. Plans received by a public utility
185.18by June 1 must be approved or approved as modified by the commissioner by December 1
185.19of that same year. The commissioner shall evaluate the program on the basis of
185.20cost-effectiveness and the reliability of technologies employed. The commissioner's order
185.21must provide to the extent practicable for a free choice, by consumers participating in the
185.22program, of the device, method, material, or project constituting the energy conservation
185.23improvement and for a free choice of the seller, installer, or contractor of the energy
185.24conservation improvement, provided that the device, method, material, or project seller,
185.25installer, or contractor is duly licensed, certified, approved, or qualified, including under
185.26the residential conservation services program, where applicable.
185.27    (b) The commissioner may require a utility subject to subdivision 1c to make an energy
185.28conservation improvement investment or expenditure whenever the commissioner finds
185.29that the improvement will result in energy savings at a total cost to the utility less than the
185.30cost to the utility to produce or purchase an equivalent amount of new supply of energy.
185.31The commissioner shall nevertheless ensure that every public utility operate one or more
185.32programs under periodic review by the department.
185.33    (c) Each public utility subject to subdivision 1a may spend and invest annually up to ten
185.34percent of the total amount required to be spent and invested on energy conservation
186.1improvements under this section by the utility on research and development projects that
186.2meet the definition of energy conservation improvement in subdivision 1 and that are funded
186.3directly by the public utility.
186.4    (d) A public utility may not spend for or invest in energy conservation improvements
186.5that directly benefit a large energy facility or a large electric customer facility for which the
186.6commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The
186.7commissioner shall consider and may require a utility to undertake a program suggested by
186.8an outside source, including a political subdivision, a nonprofit corporation, or community
186.9organization.
186.10    (e) A utility, a political subdivision, or a nonprofit or community organization that has
186.11suggested a program, the attorney general acting on behalf of consumers and small business
186.12interests, or a utility customer that has suggested a program and is not represented by the
186.13attorney general under section 8.33 may petition the commission to modify or revoke a
186.14department decision under this section, and the commission may do so if it determines that
186.15the program is not cost-effective, does not adequately address the residential conservation
186.16improvement needs of low-income persons, has a long-range negative effect on one or more
186.17classes of customers, or is otherwise not in the public interest. The commission shall reject
186.18a petition that, on its face, fails to make a reasonable argument that a program is not in the
186.19public interest.
186.20    (f) The commissioner may order a public utility to include, with the filing of the utility's
186.21annual status report, the results of an independent audit of the utility's conservation
186.22improvement programs and expenditures performed by the department or an auditor with
186.23experience in the provision of energy conservation and energy efficiency services approved
186.24by the commissioner and chosen by the utility. The audit must specify the energy savings
186.25or increased efficiency in the use of energy within the service territory of the utility that is
186.26the result of the spending and investments. The audit must evaluate the cost-effectiveness
186.27of the utility's conservation programs.
186.28(g) A gas utility may not spend for or invest in energy conservation improvements that
186.29directly benefit a large customer facility or commercial gas customer facility for which the
186.30commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or
186.31(e). The commissioner shall consider and may require a utility to undertake a program
186.32suggested by an outside source, including a political subdivision, a nonprofit corporation,
186.33or a community organization.
186.34EFFECTIVE DATE.This section is effective the day following final enactment.

187.1    Sec. 15. Minnesota Statutes 2016, section 216B.241, subdivision 5, is amended to read:
187.2    Subd. 5. Efficient lighting program. (a) Each public utility, cooperative electric
187.3association, 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
187.5program to strongly encourage the use of fluorescent and high-intensity discharge lamps.
187.6The program must include at least a public information campaign to encourage use of the
187.7lamps and proper management of spent lamps by all customer classifications.
187.8    (b) A public utility that provides electric service at retail to 200,000 or more customers
187.9shall establish, either directly or through contracts with other persons, including lamp
187.10manufacturers, distributors, wholesalers, and retailers and local government units, a system
187.11to collect for delivery to a reclamation or recycling facility spent fluorescent and
187.12high-intensity discharge lamps from households and from small businesses as defined in
187.13section 645.445 that generate an average of fewer than ten spent lamps per year.
187.14    (c) A collection system must include establishing reasonably convenient locations for
187.15collecting spent lamps from households and financial incentives sufficient to encourage
187.16spent lamp generators to take the lamps to the collection locations. Financial incentives may
187.17include coupons for purchase of new fluorescent or high-intensity discharge lamps, a cash
187.18back system, or any other financial incentive or group of incentives designed to collect the
187.19maximum number of spent lamps from households and small businesses that is reasonably
187.20feasible.
187.21    (d) A public utility that provides electric service at retail to fewer than 200,000 customers,
187.22a cooperative electric association, or a municipal utility that provides electric service at
187.23retail to customers may establish a collection system under paragraphs (b) and (c) as part
187.24of conservation improvement activities required under this section.
187.25    (e) The commissioner of the Pollution Control Agency may not, unless clearly required
187.26by federal law, require a public utility, cooperative electric association, or municipality that
187.27establishes a household fluorescent and high-intensity discharge lamp collection system
187.28under this section to manage the lamps as hazardous waste as long as the lamps are managed
187.29to avoid breakage and are delivered to a recycling or reclamation facility that removes
187.30mercury and other toxic materials contained in the lamps prior to placement of the lamps
187.31in solid waste.
187.32    (f) If a public utility, cooperative electric association, or municipal utility contracts with
187.33a local government unit to provide a collection system under this subdivision, the contract
188.1must provide for payment to the local government unit of all the unit's incremental costs of
188.2collecting and managing spent lamps.
188.3    (g) All the costs incurred by a public utility, cooperative electric association, or municipal
188.4utility for promotion and collection of fluorescent and high-intensity discharge lamps under
188.5this subdivision are conservation improvement spending under this section.
188.6EFFECTIVE DATE.This section is effective the day following final enactment.

188.7    Sec. 16. Minnesota Statutes 2016, section 216B.241, subdivision 5d, is amended to read:
188.8    Subd. 5d. On-bill repayment programs. (a) For the purposes of this subdivision:
188.9(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;
188.11and
188.12(2) "on-bill repayment program" means a program in which a utility collects on a
188.13customer's bill repayment of a loan to the customer by an eligible lender to finance the
188.14customer's investment in eligible energy conservation or renewable energy projects, and
188.15remits loan repayments to the lender.
188.16(b) A utility may include as part of its conservation improvement plan an on-bill
188.17repayment program to enable a customer to finance eligible projects with installment loans
188.18originated by an eligible lender. An eligible project is one that is either an energy conservation
188.19improvement, or a project installed on the customer's site that uses an eligible renewable
188.20energy source as that term is defined in section 216B.2411, subdivision 2, paragraph (b),
188.21but does not include mixed municipal solid waste or refuse-derived fuel from mixed
188.22municipal solid waste. An eligible renewable energy source also includes solar thermal
188.23technology that collects the sun's radiant energy and uses that energy to heat or cool air or
188.24water, and meets the requirements of section 216C.25. To be an eligible lender, a lender
188.25must:
188.26(1) have a federal or state charter and be eligible for federal deposit insurance;
188.27(2) be a government entity, including an entity established under chapter 469, that has
188.28authority to provide financial assistance for energy efficiency and renewable energy projects;
188.29(3) be a joint venture by utilities established under section 452.25; or
188.30(4) be licensed, certified, or otherwise have its lending activities overseen by a state or
188.31federal government agency.
189.1The commissioner must allow a utility broad discretion in designing and implementing an
189.2on-bill repayment program, provided that the program complies with this subdivision.
189.3(c) A utility may establish an on-bill repayment program for all customer classes or for
189.4a specific customer class.
189.5(d) A public utility that implements an on-bill repayment program under this subdivision
189.6must enter into a contract with one or more eligible lenders that complies with the
189.7requirements of this subdivision and contains provisions addressing capital commitments,
189.8loan origination, transfer of loans to the public utility for on-bill repayment, and acceptance
189.9of loans returned due to delinquency or default.
189.10(e) A public utility's contract with a lender must require the lender to comply with all
189.11applicable federal and state laws, rules, and regulations related to lending practices and
189.12consumer protection; to conform to reasonable and prudent lending standards; and to provide
189.13businesses that sell, maintain, and install eligible projects the ability to participate in an
189.14on-bill repayment program under this subdivision on a nondiscriminatory basis.
189.15(f) A public utility's contract with a lender may provide:
189.16(1) for the public utility to purchase loans from the lender with a condition that the lender
189.17must purchase back loans in delinquency or default; or
189.18(2) for the lender to retain ownership of loans with the public utility servicing the loans
189.19through on-bill repayment as long as payments are current.
189.20The risk of default must remain with the lender. The lender shall not have recourse against
189.21the public utility except in the event of negligence or breach of contract by the utility.
189.22(g) If a public utility customer makes a partial payment on a utility bill that includes a
189.23loan installment, the partial payment must be credited first to the amount owed for utility
189.24service, including taxes and fees. A public utility may not suspend or terminate a customer's
189.25utility service for delinquency or default on a loan that is being serviced through the public
189.26utility's on-bill repayment program.
189.27(h) An outstanding balance on a loan being repaid under this subdivision is a financial
189.28obligation only of the customer who is signatory to the loan, and not to any subsequent
189.29customer occupying the property associated with the loan. If the public utility purchases
189.30loans from the lender as authorized under paragraph (f), clause (1), the public utility must
189.31return to the lender a loan not repaid when a customer borrower no longer occupies the
189.32property.
190.1(i) Costs incurred by a public utility under this subdivision are recoverable as provided
190.2in section 216B.16, subdivision 6b, paragraph (c), including reasonable incremental costs
190.3for billing system modifications necessary to implement and operate an on-bill repayment
190.4program and for ongoing costs to operate the program. Costs in a plan approved by the
190.5commissioner may be counted toward a utility's conservation spending requirements under
190.6subdivisions 1a and 1b. Energy savings from energy conservation improvements resulting
190.7from this section may be counted toward satisfying a utility's energy-savings goals under
190.8subdivision 1c.
190.9(j) This subdivision does not require a utility to terminate or modify an existing financing
190.10program and does not prohibit a utility from establishing an on-bill financing program in
190.11which the utility provides the financing capital.
190.12(k) A municipal utility or cooperative electric association that implements an on-bill
190.13repayment program shall design the program to address the issues identified in paragraphs
190.14(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.

190.16    Sec. 17. Minnesota Statutes 2016, section 216B.241, subdivision 7, is amended to read:
190.17    Subd. 7. Low-income programs. (a) The commissioner shall ensure that each utility
190.18and association subject to subdivision 1c provides low-income programs. When approving
190.19spending and energy-savings goals for low-income programs, the commissioner shall
190.20consider historic spending and participation levels, energy savings for low-income programs,
190.21and the number of low-income persons residing in the utility's service territory. A municipal
190.22utility that furnishes gas service must spend at least 0.2 percent, and a public utility furnishing
190.23gas service must spend at least 0.4 percent, of its most recent three-year average gross
190.24operating revenue from residential customers in the state on low-income programs. A utility
190.25or association that furnishes electric service must spend at least 0.1 percent of its gross
190.26operating revenue from residential customers in the state on low-income programs. For a
190.27generation and transmission cooperative association, this requirement shall apply to each
190.28association's members' aggregate gross operating revenue from sale of electricity to residential
190.29customers in the state. Beginning in 2010, a utility or association that furnishes electric
190.30service must spend 0.2 percent of its gross operating revenue from residential customers in
190.31the state on low-income programs.
190.32    (b) To meet the requirements of paragraph (a), a utility or association may contribute
190.33money to the energy and conservation account. An energy conservation improvement plan
190.34must state the amount, if any, of low-income energy conservation improvement funds the
191.1utility or association will contribute to the energy and conservation account. Contributions
191.2must be remitted to the commissioner by February 1 of each year.
191.3    (c) The commissioner shall establish low-income programs to utilize money contributed
191.4to the energy and conservation account under paragraph (b). In establishing low-income
191.5programs, the commissioner shall consult political subdivisions, utilities, and nonprofit and
191.6community organizations, especially organizations engaged in providing energy and
191.7weatherization assistance to low-income persons. Money contributed to the energy and
191.8conservation account under paragraph (b) must provide programs for low-income persons,
191.9including low-income renters, in the service territory of the utility or association providing
191.10the money. The commissioner shall record and report expenditures and energy savings
191.11achieved as a result of low-income programs funded through the energy and conservation
191.12account in the report required under subdivision 1c, paragraph (g). The commissioner may
191.13contract with a political subdivision, nonprofit or community organization, public utility,
191.14municipality, or cooperative electric association to implement low-income programs funded
191.15through the energy and conservation account.
191.16    (d) A utility or association may petition the commissioner to modify its required spending
191.17under paragraph (a) if the utility or association and the commissioner have been unable to
191.18expend the amount required under paragraph (a) for three consecutive years.
191.19(e) The costs and benefits associated with any approved low-income gas or electric
191.20conservation improvement program that is not cost-effective when considering the costs
191.21and benefits to the utility may, at the discretion of the utility, be excluded from the calculation
191.22of net economic benefits for purposes of calculating the financial incentive to the utility.
191.23The energy and demand savings may, at the discretion of the utility, be applied toward the
191.24calculation of overall portfolio energy and demand savings for purposes of determining
191.25progress toward annual goals and in the financial incentive mechanism.
191.26EFFECTIVE DATE.This section is effective the day following final enactment.

191.27    Sec. 18. Minnesota Statutes 2016, section 216B.2422, subdivision 2, is amended to read:
191.28    Subd. 2. Resource plan filing and approval. (a) A utility shall file a resource plan with
191.29the commission periodically in accordance with rules adopted by the commission. The
191.30commission shall approve, reject, or modify the plan of a public utility, as defined in section
191.31216B.02, subdivision 4 , consistent with the public interest.
191.32(b) In the resource plan proceedings of all other utilities, the commission's order shall
191.33be advisory and the order's findings and conclusions shall constitute prima facie evidence
192.1which may be rebutted by substantial evidence in all other proceedings. With respect to
192.2utilities other than those defined in section 216B.02, subdivision 4, the commission shall
192.3consider the filing requirements and decisions in any comparable proceedings in another
192.4jurisdiction.
192.5(c) As a part of its resource plan filing, a utility shall include the least cost plan for
192.6meeting 50 and 75 percent of all energy needs from both new and refurbished capacity
192.7needs generating facilities through a combination of conservation and renewable energy
192.8resources.
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 1, 2017.

192.11    Sec. 19. Minnesota Statutes 2016, section 216B.2422, subdivision 4, is amended to read:
192.12    Subd. 4. Preference for renewable energy facility. The commission shall not approve
192.13a new or refurbished nonrenewable energy facility in an integrated resource plan or a
192.14certificate of need, pursuant to section 216B.243, nor shall the commission allow rate
192.15recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the
192.16utility has demonstrated that a renewable energy facility is not in the public interest. When
192.17making the public interest determination, the commission must include consider:
192.18(1) whether the resource plan helps the utility achieve the greenhouse gas reduction
192.19goals under section 216H.02, the renewable energy standard under section 216B.1691, or
192.20the solar energy standard under section 216B.1691, 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 electricity
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
192.27costs.
192.28EFFECTIVE DATE.This section is effective July 1, 2017.

193.1    Sec. 20. Minnesota Statutes 2016, section 216B.2424, is amended by adding a subdivision
193.2to read:
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 facility approved
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
193.11determines that:
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
193.14agreement; and
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 realized
193.17by customers in the new or amended power purchase agreement and any costs imposed on
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 that:
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 purchase
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 to this
193.28section, taking into consideration any savings realized by customers as a result of the early
193.29termination of the power purchase agreement or the purchase and closure of the facility and
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 and
194.1closure of a facility under paragraph (c), shall not require the public utility subject to this
194.2section to purchase replacement amounts of biomass energy to fulfill the requirements of
194.3this section.
194.4(e) A utility may petition the commission to approve a rate schedule that provides for
194.5the automatic adjustment of charges to recover investments, expenses and costs, and earnings
194.6on the investments associated with a new or amended power purchase agreement, the early
194.7termination of a power purchase agreement, or the purchase and closure of a facility. The
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 have
194.10been recovered from customers had the utility continued to purchase energy under the power
194.11purchase agreement in effect before any option available under this section is approved by
194.12the commission. If approved by the commission, cost recovery under this paragraph may
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 that operates
194.17a nuclear-power electric generating plant from filing a petition with the commission for
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.

194.22    Sec. 21. Minnesota Statutes 2016, section 216C.05, subdivision 2, is amended to read:
194.23    Subd. 2. Energy policy goals. It is the energy policy of the state of Minnesota that:
194.24(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of
194.25electricity and natural gas be achieved through cost-effective energy efficiency;
194.26    (2) the per capita use of fossil fuel as an energy input be reduced by 15 percent by the
194.27year 2015, through increased reliance on energy efficiency and renewable energy alternatives;
194.28and
194.29    (3) 25 percent of the total energy used in the state be derived from renewable energy
194.30resources by the year 2025.; and
194.31    (4) retail electricity rates for each customer class be at least five percent below the
194.32national average.
195.1EFFECTIVE DATE.This section is effective the day following final enactment.

195.2    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 of
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 an
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 the
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 of
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 are
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 of
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 of
195.23subdivision 1 and that first begin generating electricity between January 1, 2014, and October
195.2431, 2018.
195.25(b) The payment eligibility window of the incentive begins and runs consecutively from
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 are available
195.29in the account.
195.30(d) No payment may be made under this section for electricity generated after October
195.3131, 2028.
195.32EFFECTIVE DATE.This section is effective the day following final enactment.

196.1    Sec. 23. Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision
196.2to read:
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 by tenants
196.5or lessees of the owner.

196.6    Sec. 24. Minnesota Statutes 2016, section 216H.03, subdivision 3, is amended to read:
196.7    Subd. 3. Long-term increased emissions from power plants prohibited. Unless
196.8preempted by federal law, until a comprehensive and enforceable state law or rule pertaining
196.9to greenhouse gases that directly limits and substantially reduces, over time, statewide power
196.10sector carbon dioxide emissions is enacted and in effect, and except as allowed in
196.11subdivisions 4 to 7, on and after August 1, 2009, no person shall:
196.12    (1) construct within the state a new large energy facility that would contribute to statewide
196.13power sector carbon dioxide emissions;.
196.14    (2) import or commit to import from outside the state power from a new large energy
196.15facility that would contribute to statewide power sector carbon dioxide emissions; or
196.16    (3) enter into a new long-term power purchase agreement that would increase statewide
196.17power sector carbon dioxide emissions. For purposes of this section, a long-term power
196.18purchase agreement means an agreement to purchase 50 megawatts of capacity or more for
196.19a term exceeding five years.
196.20EFFECTIVE DATE.This section is effective the day following final enactment.

196.21    Sec. 25. Minnesota Statutes 2016, section 216H.03, subdivision 4, is amended to read:
196.22    Subd. 4. Exception for facilities that offset emissions. (a) The prohibitions in prohibition
196.23under subdivision 3 do does not apply if the project proponent demonstrates to the Public
196.24Utilities Commission's satisfaction that it will offset the new contribution to statewide power
196.25sector carbon dioxide emissions with a carbon dioxide reduction project identified in
196.26paragraph (b) and in compliance with paragraph (c).
196.27    (b) A project proponent may offset in an amount equal to or greater than the proposed
196.28new contribution to statewide power sector carbon dioxide emissions in either, or a
196.29combination of both, of the following ways:
196.30    (1) by reducing an existing facility's contribution to statewide power sector carbon
196.31dioxide emissions; or
197.1    (2) by purchasing carbon dioxide allowances from a state or group of states that has a
197.2carbon dioxide cap and trade system in place that produces verifiable emissions reductions.
197.3    (c) The Public Utilities Commission shall not find that a proposed carbon dioxide
197.4reduction project identified in paragraph (b) acceptably offsets a new contribution to statewide
197.5power sector carbon dioxide emissions unless the proposed offsets are permanent,
197.6quantifiable, verifiable, enforceable, and would not have otherwise occurred. This section
197.7does not exempt emissions that have been offset under this subdivision and emissions
197.8exempted 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.

197.10    Sec. 26. Minnesota Statutes 2016, section 216H.03, subdivision 7, is amended to read:
197.11    Subd. 7. Other exemptions. The prohibitions in prohibition under subdivision 3 do does
197.12not apply to:
197.13    (1) a new large energy facility under consideration by the Public Utilities Commission
197.14pursuant to proposals or applications filed with the Public Utilities Commission before April
197.151, 2007, or to any power purchase agreement related to a facility described in this clause.
197.16The exclusion of pending proposals and applications from the prohibitions in subdivision
197.173 does not limit the applicability of any other law and is not an expression of legislative
197.18intent regarding whether any pending proposal or application should be approved or denied;
197.19    (2) a contract not subject to commission approval that was entered into prior to April 1,
197.202007, to purchase power from a new large energy facility that was approved by a comparable
197.21authority in another state prior to that date, for which municipal or public power district
197.22bonds have been issued, and on which construction has begun;
197.23    (3) a new large energy facility or a power purchase agreement between a Minnesota
197.24utility and a new large energy facility located outside within Minnesota that the Public
197.25Utilities Commission has determined is essential to ensure the long-term reliability of
197.26Minnesota's electric system, to allow electric service for increased industrial demand, or to
197.27avoid placing a substantial financial burden on Minnesota ratepayers. An order of the
197.28commission granting an exemption under this clause is stayed until the June 1 following
197.29the next regular or annual session of the legislature that begins after the date of the
197.30commission's final order; or
197.31(4) a new large energy facility with a combined electric generating capacity of less than
197.32100 megawatts, which did not require a Minnesota certificate of need, which received an
197.33air pollution control permit to construct from an adjoining state before January 1, 2008, and
198.1on which construction began before July 1, 2008, or to any power purchase agreement
198.2related to a facility described in this clause.
198.3EFFECTIVE DATE.This section is effective the day following final enactment.

198.4    Sec. 27. RESIDENTIAL PACE CONSUMER PROTECTION LEGISLATION TASK
198.5FORCE.
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 section,
198.10"residential PACE" or "PACE" means energy improvement financing programs for
198.11single-family residential dwellings authorized under Minnesota Statutes, sections 216C.435
198.12to 216C.436.
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
199.8PACE-encumbered homes;
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 residential
199.12PACE loans relative to other financing mechanisms;
199.13(4) ensure that the ability to repay standard uses commonly accepted underwriting
199.14principles;
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 Act and
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
199.21improvements; and
199.22(8) address any other issues the task force identifies that are necessary to protect
199.23consumers.
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 draft
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 in
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.

200.16    Sec. 28. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR
200.17THERMAL REBATES.
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.

200.25    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 to
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 grant
201.4recipients how unexpended funds can be transferred to the clean energy advancement fund
201.5account.
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 days after
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 fund
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 is to
201.13be constructed;
201.14(3) the grant recipient has failed to secure all necessary permits or approvals from any
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 funds
201.19that remain unexpended five years after the grant funds are received by the grant recipient
201.20if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant
201.21recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary
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 account.
201.25EFFECTIVE DATE.This section is effective the day following final enactment.

201.26    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.

202.4ARTICLE 11
202.5HOUSING POLICY

202.6    Section 1. Minnesota Statutes 2016, section 327C.01, is amended by adding a subdivision
202.7to read:
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.

202.11    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 an employee
202.14of the manufactured home park, must satisfy 12 hours of qualifying education courses every
202.15three years, as prescribed in this subdivision. Park owners or on-site attendants may begin
202.16accumulating qualifying hours to qualify as a class I manufactured home park beginning in
202.172017.
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
202.25licensure;
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 504B,
202.30and Minnesota Rules, chapter 1350 or 4630;
203.1(4) three hours of general education approved for real estate, residential contractors, or
203.2manufactured home installers; and
203.3(5) two hours of HUD-specific manufactured home installer courses as required under
203.4section 327B.041.
203.5(d) If the qualifying owner or employee attendant is no longer the person meeting the
203.6requirements under this subdivision, but did qualify during the current assessment year,
203.7then the manufactured home park shall still qualify for the class rate provided for class 4c
203.8property classified under section 273.13, subdivision 25, paragraph (d), clause (5), item
203.9(iii).
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 that
203.12the park owner, corporate officer, or on-site attendant has complied with subdivision 1 and
203.13that the park meets the definition of a class I manufactured home park as defined in this
203.14section, and is entitled to the property tax classification rate for class I manufactured home
203.15parks in section 273.13, subdivision 25. The park owner shall retain the original course
203.16completion certificates issued by the course sponsor under this section for three years and,
203.17upon written request for verification, provide these to the county assessor within 30 days.
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
203.20assessment year.
203.21EFFECTIVE DATE.This section is effective the day following final enactment.

203.22    Sec. 3. Minnesota Statutes 2016, section 462.355, subdivision 4, is amended to read:
203.23    Subd. 4. Interim ordinance. (a) If a municipality is conducting studies or has authorized
203.24a study to be conducted or has held or has scheduled a hearing for the purpose of considering
203.25adoption 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
203.27is annexed to a municipality, the governing body of the municipality may adopt an interim
203.28ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning
203.29process and the health, safety and welfare of its citizens. The interim ordinance may regulate,
203.30restrict, or prohibit any use, development, or subdivision within the jurisdiction or a portion
203.31thereof for a period not to exceed one year from the date it is effective.
203.32(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities
203.33relating to livestock production, a public hearing must be held following a ten-day notice
204.1given by publication in a newspaper of general circulation in the municipality before the
204.2interim 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 vote
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, has a
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 three
204.10business days before the public hearing. Notice also must be posted on the city's official
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 not
204.15be undertaken before the public hearing.
204.16(5) For the purposes of this paragraph, "housing proposal" means a written request for
204.17city approval of a project intended primarily to provide residential dwellings, either single
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
204.20dwellings.
204.21(c) (d) The period of an interim ordinance applicable to an area that is affected by a city's
204.22master plan for a municipal airport may be extended for such additional periods as the
204.23municipality may deem appropriate, not exceeding a total additional period of 18 months.
204.24In all other cases, no interim ordinance may halt, delay, or impede a subdivision that has
204.25been given preliminary approval, nor may any interim ordinance extend the time deadline
204.26for agency action set forth in section 15.99 with respect to any application filed prior to the
204.27effective date of the interim ordinance. The governing body of the municipality may extend
204.28the interim ordinance after a public hearing and written findings have been adopted based
204.29upon one or more of the conditions in clause (1), (2), or (3). The public hearing must be
204.30held at least 15 days but not more than 30 days before the expiration of the interim ordinance,
204.31and notice of the hearing must be published at least ten days before the hearing. The interim
204.32ordinance may be extended for the following conditions and durations, but, except as
204.33provided in clause (3), an interim ordinance may not be extended more than an additional
204.3418 months:
205.1(1) up to an additional 120 days following the receipt of the final approval or review by
205.2a federal, state, or metropolitan agency when the approval is required by law and the review
205.3or approval has not been completed and received by the municipality at least 30 days before
205.4the expiration of the interim ordinance;
205.5(2) up to an additional 120 days following the completion of any other process required
205.6by a state statute, federal law, or court order, when the process is not completed at least 30
205.7days before the expiration of the interim ordinance; or
205.8(3) up to an additional one year if the municipality has not adopted a comprehensive
205.9plan 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.

205.12    Sec. 4. Minnesota Statutes 2016, section 462A.201, subdivision 2, is amended to read:
205.13    Subd. 2. Low-income housing. (a) The agency may use money from the housing trust
205.14fund account to provide loans or grants for:
205.15(1) projects for the development, construction, acquisition, preservation, and rehabilitation
205.16of low-income rental and limited equity cooperative housing units, including temporary
205.17and transitional housing;
205.18(2) the costs of operating rental housing, as determined by the agency, that are unique
205.19to the operation of low-income rental housing or supportive housing; and
205.20(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.
205.23For purposes of this section, "transitional housing" has the meaning given by the United
205.24States Department of Housing and Urban Development. Loans or grants for residential
205.25housing for migrant farmworkers may be made under this section.
205.26(b) The housing trust fund account must be used for the benefit of persons and families
205.27whose income, at the time of initial occupancy, does not exceed 60 percent of median income
205.28as determined by the United States Department of Housing and Urban Development for the
205.29metropolitan area. At least 75 percent of the funds in the housing trust fund account must
205.30be used for the benefit of persons and families whose income, at the time of initial occupancy,
205.31does not exceed 30 percent of the median family income for the metropolitan area as defined
205.32in section 473.121, subdivision 2. For purposes of this section, a household with a housing
206.1assistance voucher under Section 8 of the United States Housing Act of 1937, as amended,
206.2is deemed to meet the income requirements of this section.
206.3The median family income may be adjusted for families of five or more.
206.4(c) Rental assistance under this section must be provided by governmental units which
206.5administer housing assistance supplements or by for-profit or nonprofit organizations
206.6experienced in housing management. Rental assistance shall be limited to households whose
206.7income at the time of initial receipt of rental assistance does not exceed 60 percent of median
206.8income, as determined by the United States Department of Housing and Urban Development
206.9for the metropolitan area. Priority among comparable applications for tenant-based rental
206.10assistance will be given to proposals that will serve households whose income at the time
206.11of initial application for rental assistance does not exceed 30 percent of median income, as
206.12determined by the United States Department of Housing and Urban Development for the
206.13metropolitan area. Rental assistance must be terminated when it is determined that 30 percent
206.14of a household's monthly income for four consecutive months equals or exceeds the market
206.15rent for the unit in which the household resides plus utilities for which the tenant is
206.16responsible. Rental assistance may only be used for rental housing units that meet the housing
206.17maintenance code of the local unit of government in which the unit is located, if such a code
206.18has been adopted, or the housing quality standards adopted by the United States Department
206.19of Housing and Urban Development, if no local housing maintenance code has been adopted.
206.20(d) In making the loans or grants, the agency shall determine the terms and conditions
206.21of repayment and the appropriate security, if any, should repayment be required. To promote
206.22the geographic distribution of grants and loans, the agency may designate a portion of the
206.23grant or loan awards to be set aside for projects located in specified congressional districts
206.24or other geographical regions specified by the agency. The agency may adopt rules for
206.25awarding grants and loans under this subdivision.

206.26    Sec. 5. Minnesota Statutes 2016, section 462A.2035, is amended to read:
206.27462A.2035 MANUFACTURED HOME PARK REDEVELOPMENT PROGRAM.
206.28    Subdivision 1. Establishment. The agency shall establish a manufactured home park
206.29redevelopment program for the purpose of making manufactured home park redevelopment
206.30grants or loans to cities, counties, or 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
206.33Eligible recipients may use individual assistance grants and loans under this program to:
207.1(1) provide current residents of manufactured home parks with buy-out assistance not
207.2to exceed $4,000 per home with preference given to older manufactured homes; and
207.3(2) provide down-payment assistance for the purchase of new and preowned manufactured
207.4homes that comply with the current version of the State Building Code in effect at the time
207.5of the sale, not to exceed $10,000 per home; and.
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.
207.11    Subd. 2. Eligibility requirements. For individual assistance grants under subdivision
207.121a, households assisted under this section must have an annual household income at or
207.13below 80 percent of the area median household income. Cities, counties, or community
207.14action programs receiving funds under the program must give preference to households at
207.15or below 50 percent of the area median household income. Participation in the program is
207.16voluntary 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
207.18approximately equal amounts to applicants outside and within the metropolitan area. Grants
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.

207.25    Sec. 6. Minnesota Statutes 2016, section 462A.204, subdivision 8, is amended to read:
207.26    Subd. 8. School stability. (a) The agency in consultation with the Interagency Task
207.27Force Council on Homelessness may establish a school stability project under the family
207.28homeless prevention and assistance program. The purpose of the project is to secure stable
207.29housing for families with school-age children who have moved frequently and for
207.30unaccompanied youth. For purposes of this subdivision, "unaccompanied youth" are minors
207.31who are leaving foster care or juvenile correctional facilities, or minors who meet the
208.1definition of a child in need of services or protection under section 260C.007, subdivision
208.26
, but for whom no court finding has been made pursuant to that statute.
208.3(b) The agency shall make grants to family homeless prevention and assistance projects
208.4in communities with a school or schools that have a significant degree of student mobility.
208.5(c) Each project must be designed to reduce school absenteeism; stabilize children in
208.6one home setting or, at a minimum, in one school setting; and reduce shelter usage. Each
208.7project must include plans for the following:
208.8(1) targeting of families with children under age 12 who, in the last 12 months have
208.9either: changed schools or homes at least once or been absent from school at least 15 percent
208.10of 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
208.12conditions in their current housing; or are paying more than 50 percent of their income for
208.13rent; or who lack a fixed, regular, and adequate nighttime residence;
208.14(2) targeting of unaccompanied youth in need of an alternative residential setting;
208.15(3) connecting families with the social services necessary to maintain the families'
208.16stability in their home, including but not limited to housing navigation, legal representation,
208.17and family outreach; and
208.18(4) one or more of the following:
208.19(i) provision of rental assistance for a specified period of time, which may exceed 24
208.20months; or
208.21(ii) development of permanent supportive housing or transitional housing provision of
208.22support and case management services to improve housing stability, including but not limited
208.23to housing navigation and family outreach.
208.24(d) Notwithstanding subdivision 2, grants under this section may be used to acquire,
208.25rehabilitate, or construct transitional or permanent housing In selecting projects for funding
208.26under this subdivision, preference shall be given to organizations granted funding under
208.27section 462A.201, subdivision 2, paragraph (a), clause (4).
208.28(e) Each grantee under the project must include representatives of the local school district
208.29or targeted schools, or both, and of the local community correction agencies on its advisory
208.30committee No grantee under this subdivision is required to have an advisory committee as
208.31described in subdivision 6.

209.1    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 to
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
209.8meanings given.
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 market
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 related financing
209.25costs.
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, a
209.28city must include in its application a resolution of its governing body certifying that the
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 determinations
209.32are made:
210.1(1) the average vacancy rate for rental housing located in the eligible project area, and
210.2in any other city located within 15 miles or less of the boundaries of the area, has been five
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 of the
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 of available
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 be used
210.9for qualified expenditures for the development of rental housing to serve employees of
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 to
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 grant
210.17or deferred loans to a city without certification by the city that the amount of the grant or
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 projects
210.23that received grants or deferred loans under this section and the specific purposes for which
210.24the grant funds were used.

210.25    Sec. 8. [462C.16] HOUSING TRUST FUNDS FOR LOCAL HOUSING
210.26DEVELOPMENT.
210.27    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
210.28the meanings given to them.
210.29(b) "Commissioner" means the commissioner of the Minnesota Housing Finance Agency.
210.30(c) "Fund" means a local housing trust fund or a regional housing trust fund.
210.31(d) "Local government" means any statutory or home rule charter city or a county.
211.1(e) "Local housing trust fund" means a fund established by a local government with one
211.2or more dedicated sources of public revenue for housing.
211.3(f) "Regional housing trust fund" means a fund established and administered under a
211.4joint powers agreement entered into by two or more local governments with one or more
211.5dedicated sources of public revenue for housing.
211.6    Subd. 2. Creation and administration. (a) A local government may establish a local
211.7housing trust fund by ordinance or participate in a joint powers agreement to establish a
211.8regional housing trust fund.
211.9(b) A local or regional housing trust fund may be, but is not required to be, administered
211.10through a nonprofit organization. If administered through a nonprofit organization, that
211.11organization shall encourage private charitable donations to the fund.
211.12    Subd. 3. Authorized expenditures. Money in a local or regional housing trust fund may
211.13be used only to:
211.14(1) pay for administrative expenses, but not more than ten percent of the balance of the
211.15fund may be spent on administration;
211.16(2) make grants, loans, and loan guarantees for the development, rehabilitation, or
211.17financing of housing;
211.18(3) match other funds from federal, state, or private resources for housing projects; or
211.19(4) provide down payment assistance, rental assistance, and homebuyer counseling
211.20services.
211.21    Subd. 4. Funding. (a) A local government may finance its local or regional housing
211.22trust fund with any money available to the local government, unless expressly prohibited
211.23by state law. Sources of these funds include, but are not limited to:
211.24(1) donations;
211.25(2) bond proceeds;
211.26(3) grants and loans from a state, federal, or private source;
211.27(4) appropriations by a local government to the fund;
211.28(5) investment earnings of the fund; and
211.29(6) housing and redevelopment authority levies.
212.1(b) The local government may alter a source of funding for the local or regional housing
212.2trust fund, but only if, once altered, sufficient funds will exist to cover the projected debts
212.3or expenditures authorized by the fund in its budget.
212.4    Subd. 5. Reports. A local or regional housing trust fund established under this section
212.5must report annually to the local government that created the fund. The local government
212.6or governments must post this report on its public Web site.
212.7    Subd. 6. Effect of legislation on existing local or regional housing trust funds. A
212.8local or regional housing trust fund existing on the effective date of this section is not
212.9required to alter the existing terms of its governing documents or take any additional
212.10authorizing actions required by subdivision 2.

212.11    Sec. 9. MINNESOTA HOUSING FINANCE AGENCY REPORT.
212.12By September 30, 2017, and September 30, 2018, the Housing Finance Agency shall
212.13provide to the chairs and ranking minority members of the house of representatives and
212.14senate committees with jurisdiction over the agency a draft and final version of its affordable
212.15housing plan before and after it has been submitted to the agency board for consideration.
212.16The affordable housing plan must include information on the availability of funds within
212.17the Housing Affordability Fund, or Pool 3, the anticipated uses of those funds, and the prior
212.18year's actual uses of those funds.

212.19ARTICLE 12
212.20MISCELLANEOUS POLICY

212.21    Section 1. Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special
212.22Session chapter 1, article 7, section 1, and Laws 2016, chapter 189, article 7, section 42, is
212.23amended to read:
212.24    Sec. 13. EFFECTIVE DATE.
212.25    Sections 1 to 3 and 6 to 11 are effective July 1, 2017 2020. Sections 4, 5, and 12 are
212.26effective July 1, 2014.
212.27EFFECTIVE DATE.This section is effective the day following final enactment. Until
212.28July 1, 2020, any employee, employer, employee or employer organization, exclusive
212.29representative, or any other person or organization aggrieved by an unfair labor practice as
212.30defined in Minnesota Statutes, section 179A.13, may bring an action for injunctive relief
212.31and for damages caused by the unfair labor practice in the district court of the county in
212.32which the practice is alleged to have occurred.

213.1    Sec. 2. AGENCY ACTIVITY AND EXPENDITURE REPORTS.
213.2(a) The commissioners of employment and economic development, housing finance,
213.3labor and industry, and commerce, as well as the Public Utilities Commission, must each
213.4submit a report, as described in paragraph (b), to the chairs and ranking minority members
213.5of the house of representatives and senate committees and divisions with jurisdiction over
213.6their budget appropriations by October 15, 2018.
213.7(b) The reports must include:
213.8(1) the number of employees in each operational division and descriptions of the work
213.9of each employee;