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SF 1937

2nd Unofficial Engrossment - 90th Legislature (2017 - 2018) Posted on 06/21/2017 11:01am

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A bill for an act
relating to state government; appropriating money for jobs and economic
development; appropriating money for the Department of Employment and
Economic Development, Housing Finance Agency, Department of Labor and
Industry, Bureau of Mediation Services, Workers' Compensation Court of Appeals,
Department of Commerce, Public Utilities Commission, Public Facilities Authority,
and the Department of Iron Range Resources and Rehabilitation; making policy
and housekeeping changes to labor and industry provisions; making policy changes
to employment, economic development, and workforce development provisions;
making policy changes to the Department of Iron Range Resources and
Rehabilitation; making policy, housekeeping, and technical changes regarding
unemployment insurance; making changes to commerce, telecommunications, and
energy policy; making other miscellaneous policy changes; allocating workforce
housing tax-exempt bonds; modifying fees; modifying rulemaking procedures;
modifying criminal penalties; requiring reports; amending Minnesota Statutes
2016, sections 3.732, subdivision 1; 3.736, subdivision 3; 3.8851, subdivision 1;
15.01; 15.38, subdivision 7; 15A.0815, subdivision 3; 16B.323; 43A.02, subdivision
22; 45.013; 45.0135, subdivision 6; 65B.84, subdivision 1; 85.0146, subdivision
1; 116.03, by adding a subdivision; 116C.779, subdivision 1, by adding a
subdivision; 116C.7792; 116D.04, subdivision 1a; 116J.01, subdivision 5; 116J.013;
116J.423, subdivision 2; 116J.424; 116J.994, subdivisions 3, 5, 7; 116L.17,
subdivision 1; 175.45; 216A.03, subdivision 1, by adding a subdivision; 216B.03;
216B.16, subdivisions 1a, 6; 216B.161, subdivision 1; 216B.1691, subdivision 2f;
216B.1694, subdivision 1; 216B.241, subdivisions 1b, 1c, 2, 5, 5d, 7; 216B.2422,
subdivisions 2, 3, 4; 216B.243, subdivision 8; 216C.05, subdivision 2; 216C.41,
subdivisions 2, 5a; 216C.435, by adding a subdivision; 216E.03, subdivisions 3,
9; 216E.04, subdivision 7; 216F.01, subdivision 2; 216F.011; 216F.04; 216H.03,
subdivisions 3, 4, 7; 237.01, by adding subdivisions; 268.031, subdivision 1;
268.035, subdivisions 15, 20, 21d, 23, 30; 268.042, subdivision 1; 268.046,
subdivision 3; 268.051, subdivisions 1, 9; 268.065, subdivision 2; 268.07,
subdivisions 2, 3a, 3b; 268.085, subdivisions 1, 6, 7, 12, 13, 13a; 268.0865,
subdivision 5; 268.095, subdivisions 1, 2, 5; 268.101, subdivision 2; 268.105,
subdivision 2; 268.131; 268.18, subdivisions 2, 2b, 5; 268.182; 268.184; 268.194,
subdivisions 1, 4; 276A.01, subdivisions 8, 17; 276A.06, subdivision 8; 282.38,
subdivisions 1, 3; 297I.11, subdivision 2; 298.001, subdivision 8, by adding a
subdivision; 298.018, subdivision 1; 298.17; 298.22, subdivisions 1, 1a, 5a, 6, 10,
11, by adding subdivisions; 298.221; 298.2211, subdivisions 3, 6; 298.2212;
298.2214, subdivision 2; 298.223; 298.227; 298.27; 298.28, subdivisions 7, 7a,
9c, 9d, 11; 298.292, subdivision 2; 298.296; 298.2961; 298.297; 298.46,
subdivisions 2, 5, 6; 325J.06; 326B.092, subdivision 7; 326B.153, subdivision 1;
326B.37, by adding subdivisions; 326B.435, subdivision 2; 326B.50, subdivision
3, by adding subdivisions; 326B.55, subdivisions 2, 4; 326B.805, subdivision 3;
326B.89, subdivisions 1, 5; 345.42, subdivision 1, by adding a subdivision; 345.49;
462.355, subdivision 4; 462A.201, subdivision 2; 462A.204, subdivision 8; 466.03,
subdivision 6c; 469.310, subdivision 9; 473.145; 473.254, subdivisions 2, 3a;
474A.02, subdivision 21; Laws 2010, chapter 389, article 5, section 7; Laws 2014,
chapter 211, section 13, as amended; Laws 2014, chapter 312, article 2, section
14, as amended; Laws 2015, First Special Session chapter 1, article 1, sections 2,
subdivision 6; 5, subdivision 2; Laws 2016, chapter 189, article 7, section 46;
proposing coding for new law in Minnesota Statutes, chapters 14; 116C; 116J;
175; 216B; 216C; 216G; 237; 239; 326B; 462A; 462C; 471; 474A; repealing
Minnesota Statutes 2016, sections 3.8852; 116C.779, subdivision 3; 116J.549;
174.187; 216B.8109; 216B.811; 216B.812; 216B.813; 216B.815; 216C.29;
216C.411; 216C.412; 216C.413; 216C.414; 216C.415; 216C.416; 298.22,
subdivision 8; 298.2213; 298.298; 326B.89, subdivision 14; Laws 2005, chapter
112, article 1, section 14; Laws 2013, chapter 85, article 6, section 11.

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

ARTICLE 1

APPROPRIATIONS

Section 1. JOBS AND ECONOMIC DEVELOPMENT.

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

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

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

Subdivision 1.

Total Appropriation

$
128,211,000
$
111,024,000
Appropriations by Fund
2018
2019
General
93,997,000
84,160,000
Remediation
700,000
700,000
Workforce
Development
26,164,000
26,164,000
Special Revenue
7,350,000
0

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

(b) Notwithstanding Minnesota Statutes,
section 16A.285, the commissioner of
employment and economic development must
not allow transfers of money appropriated in
this section between divisions or programs of
the Department of Employment and Economic
Development.

(c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the
commissioner of employment and economic
development must not allow billing between
divisions or programs within the Department
of Employment and Economic Development,
or otherwise use any "Internal Billing
Expenditures."

(d) Notwithstanding Minnesota Statutes,
sections 16B.37, subdivision 4, and 471.59,
except for work performed by MN.IT under
Minnesota Statutes, chapter 16E, the
commissioner of employment and economic
development must not allow billing or
transfers between other executive branch
agencies or departments and the Department
of Employment and Economic Development.

Subd. 2.

Business and Community Development

48,084,000
38,834,000
Appropriations by Fund
General
39,134,000
37,234,000
Remediation
700,000
700,000
Workforce
Development
900,000
900,000
Special Revenue
7,350,000
0

(a) Of the amounts appropriated in this
subdivision, no more than $4,154,000 in fiscal
year 2018 and $4,219,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 40.2 full-time
equivalent positions in fiscal year 2018 and
40.2 full-time equivalent positions in fiscal
year 2019.

(b)(1) $12,000,000 the first year and
$11,000,000 the second year are for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administrative expenses and
technology upgrades. This appropriation is
available until June 30, 2021.

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

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

(c) $5,000,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until expended.

(d) $1,272,000 in fiscal year 2018 and
$2,272,000 in fiscal year 2019 are for
contaminated site cleanup and development
grants under Minnesota Statutes, sections
116J.551 to 116J.558. This appropriation is
available until expended. In fiscal year 2020
and beyond, the base amount is $1,272,000.

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

(f) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until June 30, 2021.

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

(h) $750,000 each year is for a grant to the
Minnesota Film and TV Board for the film
production jobs program under Minnesota
Statutes, section 116U.26. This appropriation
is available until June 30, 2021.

(i) $875,000 each year is for the Host
Community Economic Development Program
established in Minnesota Statutes, section
116J.548.

(j) $300,000 each year is for grants to the
Rural Policy and Development Center under
Minnesota Statutes, section 116J.421.

(k)(1) $2,300,000 the first year and $1,300,000
the second year are for the greater Minnesota
business development public infrastructure
grant program under Minnesota Statutes,
section 116J.431. This appropriation is
available until spent. Funds available under
this paragraph may be used for site preparation
of property owned and to be used by private
entities.

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

(l)(1) $500,000 in fiscal year 2018 is for grants
to local communities to increase the supply of
quality child care providers in order to support
economic development. At least 60 percent of
grant funds must go to communities located
outside of the seven-county metropolitan area,
as defined under Minnesota Statutes, section
473.121, subdivision 2. Grant recipients must
obtain a 50 percent nonstate match to grant
funds in either cash or in-kind contributions.
Grant funds available under this paragraph
must be used to implement solutions to reduce
the child care shortage in the state, including
but not limited to funding for child care
business start-ups or expansion, training,
facility modifications or improvements
required for licensing, and assistance with
licensing and other regulatory requirements.
In awarding grants, the commissioner must
give priority to communities that have
documented a shortage of child care providers
in the area.

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

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

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

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

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

(p) $1,375,000 in fiscal year 2018 and
$1,575,000 in fiscal year 2019 are for grants
to Enterprise Minnesota, Inc.

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

(r) $225,000 in fiscal year 2018 is for a grant
to WomenVenture to provide business
training, mentoring, technical assistance, and
loans in order to establish two pilot
women-run cooperative child care businesses
in low-income urban areas. The commissioner
shall report data on outcomes and
recommendations for replication of this pilot
program throughout Minnesota to the governor
and the legislative committees with
jurisdiction over child care by January 31,
2020. Funds are available until June 30, 2019.

(s) $125,000 in fiscal year 2018 is for a grant
to WomenVenture to operate a business
training program for child care providers and
to create materials that could be used, free of
charge, for start-up, expansion, and operation
of child care businesses statewide, with the
goal of helping new and existing child care
businesses in underserved areas of the state
become profitable and sustainable. The
commissioner shall report data on outcomes
and recommendations for replication of this
training program throughout Minnesota to the
governor and the committees of the house of
representatives and the senate with jurisdiction
over child care by December 15, 2019. Funds
are available until June 30, 2019.

(t)(1) $125,000 each year is for small business
development center (SBDC) services to
support business transition planning. In fiscal
year 2020 and beyond, the base amount is $0.
For purposes of this paragraph, business
transition planning includes, but is not limited
to:

(i) succession planning for next generation
proprietors. For purposes of this item, next
generation proprietors do not include
immediate family members of the current
business owner;

(ii) providing business owners seeking to sell
existing businesses and aspiring business
owners with a venue and opportunity to
exchange information. Such services under
this clause may be targeted to small businesses
located in economically disadvantaged
communities or areas of declining population.
For purposes of this item, "economically
disadvantaged communities" means
communities in which average household
income is less than 80 percent of statewide
median household income as measured by the
United States Census Bureau; or communities
that contain two or more contiguous census
tracts in which average household income is
less than 80 percent of the statewide median
household income as measured by the United
States Census Bureau; and

(iii) providing information and counseling
services to business owners, prospective
owners, and others regarding the importance
of business transition and succession planning,
the transition and succession process, and
financing options and requirements related to
the business transition and succession process.

(2) Funds available under this paragraph may
be used to:

(i) provide the necessary information and
services under clause (1);

(ii) build small business development center
staff capacity to provide business transition
and succession planning services; and

(iii) match funds under the federal Small
Business Development Center Program under
United States Code, title 15, section 648, and
other federal, state, or local funds available
for the purposes of this paragraph.

(u) $350,000 in fiscal year 2018 is for a grant
to the Hallie Q. Brown Community Center,
Inc., for youth intervention services through
the community ambassadors and youth
employment program.

(v)(1) $500,000 in fiscal year 2018 is for a
grant to East Side Enterprise Center (ESEC)
to expand culturally tailored resources that
address small business growth and job
creation. This appropriation is onetime and is
available until June 30, 2021. The
appropriation shall fund the work of African
Economic Development Solutions, the Asian
Economic Development Association, the
Dayton's Bluff Community Council, and the
Latino Economic Development Center in a
collaborative approach to economic
development that is effective with smaller,
culturally diverse communities that seek to
increase the productivity and success of new
immigrant and minority populations living
and working in the community. Programs shall
provide minority business growth and capacity
building that generate wealth and jobs creation
for local residents and business owners on the
East Side of St. Paul.

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

(w) $100,000 in fiscal year 2018 is for a grant
to the city of Virginia to be used for grants to
city businesses for infrastructure revitalization
and code compliance. In making grants, the
city must give preference to projects that
promote economic development and that
include private dollar contributions.

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

(y) $1,000,000 each year is for the central
Minnesota opportunity grant program
established under Minnesota Statutes, section
116J.9922. These appropriations are available
until June 30, 2022. Starting in fiscal year
2020, the base amount for this program shall
be $0.

(z) $75,000 each year is for grants to the state's
recipient of funding from the Federal and State
Technology (FAST) Partnership Program to
strengthen the technological competitiveness
of small businesses.

(aa) $900,000 each year is from the workforce
development fund and $461,000 in fiscal year
2018 and $1,461,000 in fiscal year 2019 are
for job training grants under Minnesota
Statutes, section 116L.42.

(bb) $700,000 each year is from the
remediation fund for contaminated site cleanup
and development grants under Minnesota
Statutes, sections 116J.551 to 116J.558. This
appropriation is available until June 30, 2021.

(cc) $350,000 in fiscal year 2018 is from the
energy fund account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for a grant to the
East Phillips Improvement Coalition to create
the East Phillips Neighborhood Institute
(EPNI) to expand culturally tailored resources
that address small business growth and job
creation. The grant shall fund the collaborative
work of Tamales y Bicicletas, Little Earth of
the United Tribes, a nonprofit serving East
Africans, and other coalition members towards
developing EPNI as a community space to
host activities including, but not limited to,
creation and expansion of small businesses,
culturally specific entrepreneurial activities,
indoor urban farming, job training, education,
and skills development. Eligible uses for grant
funds include, but are not limited to, planning
and start-up costs, staff and consultant costs,
building improvements, rent, supplies, utilities,
vehicles, marketing, and program activities.
The commissioner shall submit a report on
grant activities and quantifiable outcomes to
the committees of the house of representatives
and the senate with jurisdiction over economic
development by December 15, 2020. Funds
are available until June 30, 2020.

(dd) $2,000,000 in fiscal year 2018 is from
the energy fund account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for a grant to the city
of Duluth to upgrade the municipal district
heating facility and systems, including
conversion of the distribution system along
Superior Street from steam with no condensate
return to closed-loop hot water. This
appropriation is for one or more of the project
elements or phases: predesign, design,
engineering, renovation, construction,
furnishing, and equipping the facility, systems,
and infrastructure.

(ee) $5,000,000 in fiscal year 2018 is from the
energy fund account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for a grant to Dakota
County under Minnesota Statutes, sections
103G.511 and 103G.515, to design and
construct capital improvements to the
hydroelectric generating facility, including
replacement of obsolete turbines, at the
Byllesby Dam, located on the Cannon River.

Subd. 3.

Workforce Development

31,829,000
30,829,000
Appropriations by Fund
General
14,412,000
13,475,000
Workforce
Development
17,417,000
17,417,000

(a) Of the amounts appropriated in this
subdivision, no more than $773,000 in fiscal
year 2018 and $780,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 16.1 full-time
equivalent positions in fiscal year 2018 and
16.1 full-time equivalent positions in fiscal
year 2019.

(b) $600,000 each year is for performance
grants under Minnesota Statutes, section
116J.8747, to Twin Cities R!SE to provide
training to hard-to-train individuals.

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

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

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

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

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

(3) increase the number of summer internship
opportunities;

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

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

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

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

(f) $5,000,000 each year is from the general
fund and $4,604,000 each year is from the
workforce development fund for the Pathways
to Prosperity adult workforce development
competitive grant program. Of this amount,
up to three percent is for administration and
monitoring of the program. When awarding
grants under this paragraph, the commissioner
of employment and economic development
may give preference to any previous grantee
with demonstrated success in job training and
placement for hard-to-train individuals. Grants
may be used for:

(1) grants under the FastTRAC - Adult Career
Pathways Program;

(2) competitive grants to organizations
providing services to relieve economic
disparities in the Southeast Asian community
through workforce recruitment, development,
job creation, assistance of smaller
organizations to increase capacity, and
outreach;

(3) the high-wage, high-demand,
nontraditional jobs grant program under
Minnesota Statutes, section 116L.99;

(4) the youth-at-work competitive grant
program under Minnesota Statutes, section
116L.562, subdivision 3;

(5) the Minnesota emerging entrepreneur
program under Minnesota Statutes, section
116M.18;

(6) the capacity building grant program to
assist nonprofit organizations offering or
seeking to offer workforce development and
economic development programming; and

(7) competitive grants to organizations that
provide support services for individuals, such
as job training, employment preparation,
internships, job assistance to fathers, financial
literacy, academic and behavioral interventions
for low-performing students, and youth
intervention. Grants made under this clause
must focus on low-income communities,
young adults from families with a history of
intergenerational poverty, and communities
of color.

(g) $250,000 each year is for grants to YWCA
St. Paul to provide job training services and
workforce development programs and
services, including job skills training and
counseling.

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

(i) $1,000,000 each year is for grants to the
Minneapolis Foundation for a strategic
intervention program designed to target and
connect program participants to meaningful,
sustainable living-wage employment.

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

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

(1) student tutoring and testing support
services;

(2) training in information technology;

(3) assistance in obtaining a GED;

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

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

(6) contextualized adult basic education.

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

(l) $600,000 each year is for grants to Ujamaa
Place for job training, employment
preparation, internships, education, training
in the construction trades, housing, and
organizational capacity building.

(m) $375,000 each year is for grants to the
YWCA of Minneapolis to provide
economically challenged individuals the job
skills training, career counseling, and job
placement assistance necessary to secure a
child development associate credential and to
have a career path in early childhood
education.

(n) $250,000 in fiscal year 2018 is for a grant
to the Bois Forte Tribal Employment Rights
Office for an American Indian workforce
development training pilot project.

(o) $750,000 each year is for grants to Summit
Academy OIC to expand their contextualized
GED and employment placement program.

(p) $600,000 in fiscal year 2018 and $750,000
in fiscal year 2019 are for grants to Goodwill
Easter Seals Minnesota and its partners. The
grant shall be used to continue the FATHER
Project in Rochester, Park Rapids, St. Cloud,
Minneapolis, and the surrounding areas to
assist fathers in overcoming barriers that
prevent fathers from supporting their children
economically and emotionally.

(q) $200,000 each year is for displaced
homemaker programs under Minnesota
Statutes, section 116L.96. The commissioner,
through the adult career pathways program,
shall distribute the funds to existing nonprofit
and state displaced homemaker programs. In
fiscal year 2020 and beyond, the base amount
is $0.

(r) $190,000 in fiscal year 2018 is for transfer
to the Cook County Higher Education Board
to provide educational programming and
academic support services to remote regions
in northeastern Minnesota. This amount is in
addition to other funds previously transferred
by the commissioner.

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

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

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

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

(t) $497,000 in fiscal year 2018 is for grants
to Twin Cities R!SE, in collaboration with
Metro Transit and Hennepin Technical College
for the Metro Transit technician training
program. Funds are available until June 30,
2020.

(u) $200,000 each year is for grants to the
Minnesota Alliance of Boys and Girls Clubs
to administer a statewide project of youth job
skills and career development. This project,
which may have career guidance components
including health and life skills, is designed to
encourage, train, and assist youth in early
access to education and job-seeking skills,
work-based learning experience including
career pathways in STEM learning, career
exploration and matching, and first job
placement through local community
partnerships and on-site job opportunities. This
grant requires a 25 percent match from
nonstate resources. In fiscal year 2020 and
beyond, the base amount is $0.

(v) $150,000 each year is from the workforce
development fund for grants to the YWCA of
Minneapolis to provide economically
challenged individuals the job skills training,
career counseling, and job placement
assistance necessary to secure a child
development associate credential and to have
a career path in early childhood education.

(w) $4,050,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561, to
provide employment and career advising to
youth, including career guidance in secondary
schools, to address the youth career advising
deficiency, to carry out activities outlined in
Minnesota Statutes, section 116L.561, to
provide support services, and to provide work
experience to youth in the workforce service
areas. The funds in this paragraph may be used
for expansion of the pilot program combining
career and higher education advising in Laws
2013, chapter 85, article 3, section 27.
Activities in workforce services areas under
this paragraph may serve all youth up to age
24.

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

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

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

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

(bb) $750,000 each year is from the workforce
development fund for grants to the Minnesota
Alliance of Boys and Girls Clubs to administer
a statewide project of youth job skills
development. This project, which may have
career guidance components, including health
and life skills, is to encourage, train, and assist
youth in job-seeking skills, workplace
orientation, and job-site knowledge through
coaching. This grant requires a 25 percent
match from nonstate resources.

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

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

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

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

Subd. 4.

General Support Services

2,670,000
2,670,000
Appropriations by Fund
General Fund
2,653,000
2,653,000
Workforce
Development
17,000
17,000

(a) Of the amounts appropriated in this
subdivision, no more than $1,027,000 in fiscal
year 2018 and $1,027,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 9.7 full-time
equivalent positions in fiscal year 2018 and
9.7 full-time equivalent positions in fiscal year
2019.

(b) $1,269,000 each year is for operating the
Olmstead Implementation Office.

Subd. 5.

Minnesota Trade Office

1,762,000
1,762,000

(a) Of the amounts appropriated in this
subdivision, no more than $1,319,000 in fiscal
year 2018 and $1,332,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 12.9 full-time
equivalent positions in fiscal year 2018 and
12.9 full-time equivalent positions in fiscal
year 2019.

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

Subd. 6.

Vocational Rehabilitation

30,191,000
30,191,000
Appropriations by Fund
General
22,361,000
22,361,000
Workforce
Development
7,830,000
7,830,000

(a) Of the amounts appropriated in this
subdivision, no more than $524,000 in fiscal
year 2018 and $524,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 5.1 full-time
equivalent positions in fiscal year 2018 and
5.1 full-time equivalent positions in fiscal year
2019.

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

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

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

(e) $5,995,000 each year from the general fund
and $6,830,000 each year from the workforce
development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15.

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

Subd. 7.

Competitive Grant Limitations

An organization that receives a direct
appropriation under this section is not eligible
to participate in competitive grant programs
under this section, either directly or by
receiving funds from a third party that received
a competitive grant under this section, during
the fiscal years in which the direct
appropriations are received.

Subd. 8.

Services for the Blind

6,425,000
6,425,000

Of the amounts appropriated in this
subdivision, no more than $3,209,000 in fiscal
year 2018 and $3,224,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 45 full-time
equivalent positions in fiscal year 2018 and
45 full-time equivalent positions in fiscal year
2019.

Subd. 9.

Broadband Development

7,250,000
250,000

(a) Of the amounts appropriated in this
subdivision, no more than $174,000 in fiscal
year 2018 and $177,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 1.5 full-time
equivalent positions in fiscal year 2018 and
1.5 full-time equivalent positions in fiscal year
2019.

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

(c) $7,000,000 in fiscal year 2018 is for
deposit in the border-to-border broadband fund
account in the special revenue fund established
under Minnesota Statutes, section 116J.396.

Sec. 3. HOUSING FINANCE AGENCY

Subdivision 1.

Total Appropriation

$
56,798,000
$
39,873,000

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

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

Subd. 2.

Challenge Program

18,925,000
2,000,000

(a) Beginning in fiscal year 2020, the base
amount for the challenge program is
$11,717,000.

(b) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
The agency must continue to strengthen its
efforts to address the disparity rate between
white households and indigenous American
Indians and communities of color. Of this
amount, $1,208,000 in fiscal year 2018 shall
be made available during the first 11 months
of the fiscal year exclusively for housing
projects for American Indians. Any funds not
committed to housing projects for American
Indians in the first 11 months of fiscal year
2018 shall be available for any eligible activity
under Minnesota Statutes, section 462A.33.
In fiscal year 2020 and beyond, the base
amount is $1,208,000.

(c) $4,000,000 in fiscal year 2018 is for the
purposes of the workforce housing
development program under Minnesota
Statutes, section 462A.39. Notwithstanding
article 11, section 13, the commissioner of
housing finance may hire staff sufficient for
the purposes of this paragraph. In fiscal year
2020 and beyond, the base amount is $0.

(d) $250,000 each year is for grants to
programs under Minnesota Statutes, section
462A.204, subdivision 8. In fiscal year 2020
and beyond, the base amount is $250,000.

(e) $1,750,000 each year is to the housing trust
fund for the rental assistance to highly mobile
students program under Minnesota Statutes,
section 462A.201, subdivision 2, paragraph
(a), clause (4). In fiscal year 2020 and beyond,
the base amount is $1,750,000.

Subd. 3.

Housing Trust Fund

11,471,000
11,471,000

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

Subd. 4.

Rental Assistance for Mentally Ill

4,088,000
4,088,000

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

Subd. 5.

Family Homeless Prevention

8,519,000
8,519,000

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

Subd. 6.

Home Ownership Assistance Fund

885,000
885,000

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

Subd. 7.

Affordable Rental Investment Fund

4,218,000
4,218,000

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

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

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

Subd. 8.

Housing Rehabilitation

6,515,000
6,515,000

This appropriation is for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14. Of
this amount, $2,772,000 each year is for the
rehabilitation of owner-occupied housing,
$3,743,000 each year is for the rehabilitation
of eligible rental housing, and $1,000,000 in
fiscal year 2018 is prioritized to complete
interim controls or lead abatement measures
to reduce the risk of lead exposure in rental
housing statewide. Any funds not committed
in the first 11 months of 2018 shall be
available for any eligible activity under this
section. In administering a rehabilitation
program for rental housing, the agency may
apply the processes and priorities adopted for
administration of the economic development
and housing challenge program under
Minnesota Statutes, section 462A.33.

Subd. 9.

Homeownership Education, Counseling,
and Training

857,000
857,000

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

Subd. 10.

Capacity Building Grants

875,000
875,000

This appropriation is for nonprofit capacity
building grants under Minnesota Statutes,
section 462A.21, subdivision 3b. Of this
amount:

(1) $125,000 each year is for support of the
Homeless Management Information System
(HMIS); and

(2) $500,000 each year is for grants to Build
Wealth MN to provide a family stabilization
plan program including program outreach,
financial literacy education, and budget and
debt counseling.

Sec. 4. DEPARTMENT OF LABOR AND
INDUSTRY

Subdivision 1.

Total Appropriation

$
27,934,000
$
27,934,000
Appropriations by Fund
2018
2019
General
1,652,000
1,652,000
Workers'
Compensation
24,975,000
24,975,000
Workforce
Development
1,307,000
1,307,000

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

(b) Notwithstanding Minnesota Statutes,
section 16A.285, the commissioner of labor
and industry must not allow transfers of
money appropriated in this section between
divisions or programs of the Department of
Labor and Industry.

(c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the
commissioner of labor and industry must not
allow billing between divisions or programs
of amounts appropriated within the
Department of Labor and Industry, or
otherwise use any "Internal Billing
Expenditures" of amounts appropriated.

(d) Notwithstanding Minnesota Statutes,
sections 16B.37, subdivision 4, and 471.59,
except for work performed by MN.IT under
Minnesota Statutes, chapter 16E, the
commissioner of labor and industry must not
allow billing or transfers between other
executive branch agencies or departments and
the Department of Labor and Industry.

Subd. 2.

Workers' Compensation

14,782,000
14,782,000

(a) This appropriation is from the workers'
compensation fund. Of the amount
appropriated in this subdivision, and any fees
collected, no more than $10,791,000 in fiscal
year 2018 and $10,797,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 109.6
full-time equivalent positions in fiscal year
2018 and 109.6 full-time equivalent positions
in fiscal year 2019.

(b)(1) $3,000,000 each year is for workers'
compensation system upgrades. This amount
is available until June 30, 2021. The base
amount for fiscal year 2020 and beyond is $0.

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

Subd. 3.

Labor Standards and Apprenticeship

2,759,000
2,759,000
Appropriations by Fund
General
1,452,000
1,452,000
Workforce
Development
1,307,000
1,307,000

(a) Of the amounts appropriated in this
subdivision, and any fees collected, no more
than $2,304,000 in fiscal year 2018 and
$2,238,000 in fiscal year 2019 may be
expended on full-time equivalent positions,
totaling no more than 21.7 full-time equivalent
positions in fiscal year 2018 and 19.7 full-time
equivalent positions in fiscal year 2019.

(b) $1,202,000 each year is from the general
fund for the labor standards and apprenticeship
program.

(c) $125,000 each year is from the general
fund for wage theft prevention under the
division of labor standards.

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

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

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

Subd. 4.

Workplace Safety

4,154,000
4,154,000

This appropriation is from the workers'
compensation fund. Of the amount
appropriated, and any fees collected, not more
than $3,970,000 in fiscal year 2018 and
$3,970,000 in fiscal year 2019 may be
expended on full-time equivalent positions,
totaling no more than 82.6 full-time equivalent
positions in fiscal year 2018 and 82.6 full-time
equivalent positions in fiscal year 2019.

Subd. 5.

General Support

6,239,000
6,239,000
Appropriations by Fund
General Fund
200,000
200,000
Workers'
Compensation
6,039,000
6,039,000

(a) Of the amount appropriated in this
subdivision, and any fees collected, no more
than $5,875,000 in fiscal year 2018 and
$6,039,000 in fiscal year 2019 may be
expended on full-time equivalent positions,
totaling no more than 57.1 full-time equivalent
positions in fiscal year 2018 and 57.1 full-time
equivalent positions in fiscal year 2019.

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

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

Sec. 5. BUREAU OF MEDIATION SERVICES

$
1,853,000
$
1,853,000

(a) Notwithstanding Minnesota Statutes,
section 16A.285, the commissioner of
mediation services must not allow transfers
of money appropriated in this section between
divisions or programs of the Bureau of
Mediation Services.

(b) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the
commissioner of mediation services must not
allow billing between divisions or programs
within the Bureau of Mediation Services, or
otherwise use any "Internal Billing
Expenditures."

(c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, and Minnesota
Statutes, section 471.59, except for work
performed by MN.IT under Minnesota
Statutes, chapter 16E, the commissioner of
mediation services must not allow billing or
transfers between other executive branch
agencies or departments and the Bureau of
Mediation Services.

(d) Of the amounts appropriated in this
section, no more than $1,639,000 in fiscal year
2018 and $1,639,000 in fiscal year 2019 may
be expended on full-time equivalent positions,
totaling no more than 15.1 full-time equivalent
positions in fiscal year 2018 and 15.1 full-time
equivalent positions in fiscal year 2019.

(e) $68,0000 each year is from the general
fund for grants to area labor management
committees. Grants may be awarded for a
12-month period beginning July 1 each year.
Any unencumbered balance remaining at the
end of the first year does not cancel but is
available for the second year.

Sec. 6. WORKERS' COMPENSATION COURT
OF APPEALS

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

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

(b) Of the amounts appropriated in this
section, no more than $1,683,000 in fiscal year
2018 and $1,683,000 in fiscal year 2019 may
be expended on full-time equivalent positions,
totaling no more than 12 full-time equivalent
positions in fiscal year 2018 and 12 full-time
equivalent positions in fiscal year 2019.

Sec. 7. DEPARTMENT OF COMMERCE

Subdivision 1.

Total Appropriation

$
30,795,000
$
30,601,000
Appropriations by Fund
General
27,032,000
26,838,000
Special Revenue
1,960,000
1,960,000
Petroleum Tank
1,052,000
1,052,000
Workers'
Compensation
751,000
751,000

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

(b) Notwithstanding Minnesota Statutes,
section 16A.285, the commissioner of
commerce must not allow transfers of money
appropriated in this section between divisions
or programs of the Department of Commerce.

(c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the
commissioner of commerce must not allow
billing between divisions or programs within
the Department of Commerce, or otherwise
use any "Internal Billing Expenditures."

(d) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, and Minnesota
Statutes, section 471.59, except for work
performed by MN.IT under Minnesota
Statutes, chapter 16E, the commissioner of
commerce must not allow billing or transfers
between other executive branch agencies or
departments and the Department of
Commerce.

Subd. 2.

Financial Institutions

5,285,000
5,410,000

(a) Of the amounts appropriated in this
subdivision, no more than $4,343,000 in fiscal
year 2018 and $4,343,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 45.3 full-time
equivalent positions in fiscal year 2018 and
45.3 full-time equivalent positions in fiscal
year 2019.

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

Subd. 3.

Petroleum Tank Release Compensation
Board

1,052,000
1,052,000

(a) This appropriation is from the petroleum
tank fund.

(b) Of the amounts appropriated in this
subdivision, no more than $710,000 in fiscal
year 2018 and $710,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 6.9 full-time
equivalent positions in fiscal year 2018 and
6.9 full-time equivalent positions in fiscal year
2019.

Subd. 4.

Administrative Services

7,603,000
7,353,000
Appropriations by Fund
General
7,353,000
7,103,000
Special Revenue
250,000
250,000

(a) Of the amounts appropriated in this
subdivision, no more than $4,709,000 in fiscal
year 2018 and $4,709,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 49.9 full-time
equivalent positions in fiscal year 2018 and
49.9 full-time equivalent positions in fiscal
year 2019.

(b) $625,000 in fiscal year 2018 and $375,000
in fiscal year 2019 are to fund Minnesota
Statutes, section 345.42, subdivision 1a,
paragraph (b).

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

(d) $250,000 each year is from the energy fund
account in the special revenue fund established
in Minnesota Statutes, section 116C.779,
subdivision 1, for transfer to the Board of
Regents of the University of Minnesota for
operations and maintenance of the Natural
Resources Research Institute at the University
of Minnesota Duluth. The funds shall be used
for operations, maintenance, research, and
staff support to strengthen applied research
activities and accelerate innovation and
economic development in key areas such as
minerals, mining and water, energy and the
environment, and forest products and
bioeconomy. In fiscal year 2020 and beyond,
the base amount is $0.

Subd. 5.

Telecommunications

2,589,000
2,520,000
Appropriations by Fund
General
979,000
910,000
Special Revenue
1,610,000
1,610,000

(a) For the general fund appropriations under
this subdivision, the base amount in fiscal year
2020 is $546,000, and the base amount in
fiscal year 2021 is $431,000.

(b) Of the amounts appropriated in this
subdivision, no more than $759,000 in fiscal
year 2018 and $759,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than seven
full-time equivalent positions in fiscal year
2018 and seven full-time equivalent positions
in fiscal year 2019.

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

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

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

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

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

Subd. 6.

Enforcement

5,299,000
5,099,000
Appropriations by Fund
General
5,101,000
4,901,000
Workers'
Compensation
198,000
198,000

(a) Of the amounts appropriated in this
subdivision, no more than $4,732,000 in fiscal
year 2018 and $4,732,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 48.5 full-time
equivalent positions in fiscal year 2018 and
48.5 full-time equivalent positions in fiscal
year 2019.

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

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

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

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

Subd. 7.

Energy Resources

4,099,000
4,299,000
Appropriations by Fund
General
3,999,000
4,199,000
Special Revenue
100,000
100,000

(a) Of the amounts appropriated in this
subdivision, no more than $3,689,000 in fiscal
year 2018 and $3,689,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 26.8 full-time
equivalent positions in fiscal year 2018 and
26.8 full-time equivalent positions in fiscal
year 2019.

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

(c) $200,000 in fiscal year 2019 is to remediate
insulation from households that are eligible
for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services. This is a onetime
appropriation.

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

Subd. 8.

Insurance

4,868,000
4,868,000
Appropriations by Fund
General
4,315,000
4,315,000
Workers'
Compensation
553,000
553,000

(a) Of the amounts appropriated in this
subdivision, no more than $4,431,000 in fiscal
year 2018 and $4,431,000 in fiscal year 2019
may be expended on full-time equivalent
positions, totaling no more than 37.3 full-time
equivalent positions in fiscal year 2018 and
37.3 full-time equivalent positions in fiscal
year 2019.

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

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

Sec. 8. PUBLIC UTILITIES COMMISSION

$
7,242,000
$
7,030,000

(a) For the general fund appropriations under
this section, the base amount in fiscal year
2020 is $6,774,000, and the base amount in
fiscal year 2021 is $6,649,000.

(b) Notwithstanding Minnesota Statutes,
section 16A.285, the Public Utilities
Commission and its members must not allow
transfers of money appropriated in this section
between divisions or programs of the Public
Utilities Commission.

(c) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, the Public
Utilities Commission and its members must
not allow billing between divisions or
programs within the Public Utilities
Commission, or otherwise use any "Internal
Billing Expenditures."

(d) Notwithstanding Minnesota Statutes,
section 16B.37, subdivision 4, and section
471.59, or any other law to the contrary,
except for work performed by MN.IT, under
Minnesota Statutes, chapter 16E, the Public
Utilities Commission and its members must
not allow billing or transfers between other
executive branch agencies or departments and
the Public Utilities Commission.

(e) Of the amount appropriated in this section,
no more than $6,072,000 in fiscal year 2018
and $6,072,000 in fiscal year 2019 may be
expended on full-time equivalent positions,
totaling no more than 55 full-time equivalent
positions in fiscal year 2018 and 55 full-time
equivalent positions in fiscal year 2019.

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

Sec. 9. PUBLIC FACILITIES AUTHORITY

$
7,450,000
$
0

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

(b) $3,500,000 in fiscal year 2018 is for a
grant for land acquisition, design, engineering,
and construction of facilities and infrastructure
necessary for Phase 3 of the Lewis and Clark
Regional Water System project. Phase 3
includes extension of the project from the
Lincoln-Pipestone Rural Water System
connection near Adrian to Worthington,
construction of a reservoir in Nobles County
and a meter building in Worthington, and
acquisition and installation of a supervisory
control and data acquisition system.

(c) $1,200,000 in fiscal year 2018 is for a grant
to the Clear Lake-Clearwater Sewer Authority
to remove and replace the existing wastewater
treatment facility. This project is intended to
prevent the discharge of phosphorus into the
Mississippi River. This appropriation is not
available until the commissioner of
management and budget determines that at
least $200,000 is committed to the project
from nonstate sources and the authority has
applied for at least two grants to offset the
cost. An amount equal to any grant money
received by the authority must be returned to
the general fund.

(d) $1,200,000 in fiscal year 2018 is for a
grant to the Ramsey/Washington Recycling
and Energy Board to design, construct, and
equip capital improvements to the
Ramsey/Washington Recycling and Energy
Center in Newport.

(e) $750,000 in fiscal year 2018 is for a grant
to the city of Cold Spring to acquire land,
predesign, design, engineer, construct, furnish,
and equip water infrastructure, including
drilling new wells, a water treatment plant,
and piping for water distribution.

(f) $500,000 in fiscal year 2018 is for a grant
to the Big Lake Area Sanitary District to
construct a pressure sewer system and force
main to convey sewage to the Western Lake
Superior Sanitary District connection in the
city of Cloquet. This appropriation is in
addition to the appropriation in Laws 2014,
chapter 294, article 1, section 22, subdivision
4.

Sec. 10. DEPARTMENT OF IRON RANGE
RESOURCES AND REHABILITATION.

$
1,500,000
$
0

This appropriation is from the energy fund
account in the special revenue fund established
in Minnesota Statutes, section 116C.779,
subdivision 1, for grants for innovative energy
solutions on the Iron Range.

Sec. 11. GENERAL FUND TRANSFER TO ENERGY FUND ACCOUNT.

The commissioner of management and budget must transfer $500,000 in fiscal year
2018 and $3,500,000 in fiscal year 2019 from the general fund to the energy fund account
in the special revenue fund established in Minnesota Statutes, section 116C.779, subdivision
1. In fiscal year 2020 and beyond, the base amount is $4,000,000.

Sec. 12. MINNESOTA FILM AND TV BOARD APPROPRIATION
CANCELLATION.

All unspent funds, estimated to be $350,000, appropriated for the film production jobs
program under Minnesota Statutes, section 116U.26, under Laws 2016, chapter 189, article
7, section 2, subdivision 2, are canceled to the general fund the day following final enactment
of this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 2

DEPARTMENT OF LABOR AND INDUSTRY POLICY

Section 1.

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


175.45 COMPETENCY STANDARDS FOR DUAL TRAINING.

Subdivision 1.

Duties; goal.

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

Subd. 2.

Definition; competency standards Definitions.

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

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

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

Subd. 3.

Competency standards identification process.

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

Subd. 4.

Duties.

The commissioner shall:

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

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

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

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

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

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

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

Subd. 5.

Notification.

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

Sec. 2.

[175.46] YOUTH SKILLS TRAINING PROGRAM.

Subdivision 1.

Program established; grants authorized.

The commissioner shall
approve youth skills training programs established for the purpose of providing work-based
skills training for student learners ages 16 and older.

Subd. 2.

Definitions.

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

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

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

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

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

Subd. 3.

Duties.

(a) The commissioner shall:

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

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

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

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

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

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

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

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

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

(4) develop model program guides;

(5) monitor youth skills training programs;

(6) provide technical assistance to local partnership grantees;

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

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

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

Subd. 4.

Training agreement.

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

Subd. 5.

Program approval.

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

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

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

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

Subd. 6.

Interactions with education finance.

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

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

Subd. 7.

Academic credit.

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

Subd. 8.

Postsecondary credit.

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

Subd. 9.

Work-based learning program.

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

Subd. 10.

School coordinator.

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

Subd. 11.

Other apprenticeship programs.

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

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

Subd. 12.

Outcomes.

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

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

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

Subd. 13.

Reporting.

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

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

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

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

Sec. 3.

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


Subd. 7.

License fees and license renewal fees.

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

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

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

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

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

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

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

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

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

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

Sec. 4.

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

Subdivision 1.

Definition.

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

Subd. 2.

Application.

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

Subd. 3.

Enforcement.

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

Sec. 5.

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


Subdivision 1.

Building permits.

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

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

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

(b) The total valuation and fee schedule is:

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

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

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

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

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

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

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

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

(c) Other inspections and fees are:

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

(2) reinspection fees, $63.25 per hour;

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

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

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

EFFECTIVE DATE.

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

Sec. 6.

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


Subd. 16.

Wind electric systems.

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

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

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

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

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

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

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

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

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

Sec. 7.

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


Subd. 17.

Solar photovoltaic systems.

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

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

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

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

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

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

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

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

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

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

Sec. 8.

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


Subd. 2.

Powers; duties; administrative support.

(a) The board shall have the power
to:

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

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

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

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

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

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

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

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

(9) approve license reciprocity agreements;

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

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

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

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

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

Sec. 9.

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


Subd. 3.

Water conditioning installation.

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

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

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

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

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

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

Sec. 10.

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


Subd. 5.

Direct supervision.

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

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

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

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

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

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

Sec. 11.

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


Subd. 6.

Direct supervisor.

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

Sec. 12.

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


Subd. 2.

Qualifications for licensing.

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

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

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

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

Sec. 13.

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


Subd. 4.

Plumber's apprentices.

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

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

Sec. 14.

[326B.555] REGISTERED UNLICENSED INDIVIDUALS.

Subdivision 1.

Registration; supervision; records.

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

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

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

Subd. 2.

Journeyman exam.

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

Subd. 3.

Registration, renewals, and fees.

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

Sec. 15.

Minnesota Statutes 2016, section 326B.805, subdivision 3, is amended to read:


Subd. 3.

Prohibition.

Except as provided in subdivision 6, no persons required to be
licensed by subdivision 1 may act or hold themselves out as a residential building contractor,
residential remodeler, residential roofer, or manufactured home installer for compensation
without a license issued by the commissioner. Unlicensed residential building contractor,
residential remodeler, or residential roofer activity is a gross misdemeanor.

Sec. 16.

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


Subdivision 1.

Definitions.

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

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

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

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

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

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

Sec. 17.

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


Subd. 5.

Payment limitations.

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

Sec. 18.

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


Subd. 2.

Workers' Compensation

15,226,000
17,782,000

This appropriation is from the workers'
compensation fund.

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

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

Sec. 19. RULEMAKING.

The commissioner of labor and industry shall amend Minnesota Rules, part 1309.0313,
IRC sections R313.1 to R313.3, to establish that one- and two-family dwellings and two-unit
townhouses are not required to have installed automatic fire sprinkler systems. The
commissioner may use the exempt provisions of Minnesota Statutes, section 14.386, except
that paragraph (b) shall not apply.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 20. REPEALER.

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

ARTICLE 3

EMPLOYMENT, ECONOMIC DEVELOPMENT, AND WORKFORCE
DEVELOPMENT POLICY

Section 1.

Minnesota Statutes 2016, section 116J.01, subdivision 5, is amended to read:


Subd. 5.

Departmental organization.

(a) The commissioner shall organize the
department as provided in section 15.06.

(b) The commissioner may establish divisions and offices within the department. The
commissioner may employ four one deputy commissioners commissioner in the unclassified
service.

(c) The commissioner shall:

(1) employ assistants and other officers, employees, and agents that the commissioner
considers necessary to discharge the functions of the commissioner's office;

(2) define the duties of the officers, employees, and agents, and delegate to them any of
the commissioner's powers, duties, and responsibilities, subject to the commissioner's control
and under conditions prescribed by the commissioner.

(d) The commissioner shall ensure that there are at least three employment and economic
development officers in state offices in nonmetropolitan areas of the state who will work
with local units of government on developing local employment and economic development.

Sec. 2.

Minnesota Statutes 2016, section 116J.013, is amended to read:


116J.013 COST-OF-LIVING STUDY; ANNUAL REPORT.

(a) The commissioner shall conduct an annual cost-of-living study in Minnesota. The
study shall include:

(1) a calculation of the statewide basic needs cost of living, including reasonable
retirement and long-term care savings,
adjusted for family size;

(2) a calculation of the basic needs cost of living, including reasonable retirement and
long-term care savings,
adjusted for family size, for each county;

(3) an analysis of statewide and county cost-of-living data, employment data, and job
vacancy data; and

(4) recommendations to aid in the assessment of employment and economic development
planning needs throughout the state.

(b) The commissioner shall report on the cost-of-living study and recommendations by
February 1 of each year to the governor and to the chairs of the standing committees of the
house of representatives and the senate having jurisdiction over employment and economic
development issues.

Sec. 3.

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

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

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

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

Subdivision 1.

Definitions.

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

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

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

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

Subd. 2.

Establishment.

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

Subd. 3.

Grant to the Central Minnesota Community Foundation.

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

Subd. 4.

Grants to community initiatives.

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

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

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

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

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

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

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

(3) the total cost of the project;

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

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

(6) any additional information requested by the foundation.

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

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

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

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

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

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

(2) program costs;

(3) travel within Minnesota;

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

(5) capacity building.

Subd. 5.

Reports to the legislature.

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

Sec. 5.

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


Subdivision 1.

Definitions.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 6.

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


Sec. 14. ASSIGNED RISK TRANSFER.

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

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

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

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

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

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

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


Subd. 6.

Vocational Rehabilitation

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

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

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

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

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

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

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

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

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

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2015.

Sec. 8.

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


Subd. 3.

Qualification requirements.

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

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

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

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

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

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

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

Sec. 9.

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


EFFECTIVE DATE.

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

Sec. 10. GREATER MINNESOTA COMMUNITY DESIGN PILOT PROJECT.

Subdivision 1.

Creation.

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

Subd. 2.

Community selection.

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

Subd. 3.

Pilot project activities.

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

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

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

(3) create an implementation strategy; and

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

Sec. 11. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT;
MANDATED REPORT HOLIDAY.

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

(b) This section does not apply to workforce programs outcomes reporting under
Minnesota Statutes, section 116L.98.

Sec. 12. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA
INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.

Notwithstanding Minnesota Statutes, section 116J.8731, subdivision 2, a home rule
charter or statutory city, county, or town that has uncommitted money received from
repayment of funds awarded under Minnesota Statutes, section 116J.8731, may choose to
transfer 20 percent of the balance of that money to the state general fund before June 30,
2018. A home rule charter or statutory city, county, or town that does so may then use the
remaining 80 percent of the uncommitted money for any purposes not otherwise forbidden
by law other than Minnesota Statutes, section 116J.8731, but must submit a report by January
20, 2020, to the chairs and ranking minority members of the house of representatives and
the senate committees with jurisdiction over economic development that details how the
money was used.

Sec. 13. EXISTING DEPUTY COMMISSIONERS MAY SERVE UNTIL JANUARY
1, 2019.

All existing deputy commissioners under Minnesota Statutes, section 116J.01, may serve
until January 1, 2019. Vacancies that occur in these positions before January 1, 2019, must
not be filled.

Sec. 14. REPEALER.

Minnesota Statutes 2016, section 116J.549, is repealed.

ARTICLE 4

IRON RANGE RESOURCES AND REHABILITATION POLICY

Section 1.

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


Subdivision 1.

Definitions.

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

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

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

(3) "Scope of office or employment" means that the employee was acting on behalf of
the state in the performance of duties or tasks lawfully assigned by competent authority.

(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

Sec. 2.

Minnesota Statutes 2016, section 3.736, subdivision 3, is amended to read:


Subd. 3.

Exclusions.

Without intent to preclude the courts from finding additional cases
where the state and its employees should not, in equity and good conscience, pay
compensation for personal injuries or property losses, the legislature declares that the state
and its employees are not liable for the following losses:

(a) a loss caused by an act or omission of a state employee exercising due care in the
execution of a valid or invalid statute or rule;

(b) a loss caused by the performance or failure to perform a discretionary duty, whether
or not the discretion is abused;

(c) a loss in connection with the assessment and collection of taxes;

(d) a loss caused by snow or ice conditions on a highway or public sidewalk that does
not abut a publicly owned building or a publicly owned parking lot, except when the condition
is affirmatively caused by the negligent acts of a state employee;

(e) a loss caused by wild animals in their natural state, except as provided in section
3.7371;

(f) a loss other than injury to or loss of property or personal injury or death;

(g) a loss caused by the condition of unimproved real property owned by the state, which
means land that the state has not improved, state land that contains idled or abandoned mine
pits or shafts, and appurtenances, fixtures, and attachments to land that the state has neither
affixed nor improved;

(h) a loss involving or arising out of the use or operation of a recreational motor vehicle,
as defined in section 84.90, subdivision 1, within the right-of-way of a trunk highway, as
defined in section 160.02, except that the state is liable for conduct that would entitle a
trespasser to damages against a private person;

(i) a loss incurred by a user arising from the construction, operation, or maintenance of
the outdoor recreation system, as defined in section 86A.04, or for a loss arising from the
construction, operation, maintenance, or administration of grants-in-aid trails as defined in
section 85.018, or for a loss arising from the construction, operation, or maintenance of a
water access site created by the Department of Iron Range Resources and Rehabilitation
Board, except that the state is liable for conduct that would entitle a trespasser to damages
against a private person. For the purposes of this clause, a water access site, as defined in
section 86A.04 or created by the commissioner of Iron Range resources and rehabilitation
Board, that provides access to an idled, water filled mine pit, also includes the entire water
filled area of the pit and, further, includes losses caused by the caving or slumping of the
mine pit walls;

(j) a loss of benefits or compensation due under a program of public assistance or public
welfare, except if state compensation for loss is expressly required by federal law in order
for the state to receive federal grants-in-aid;

(k) a loss based on the failure of a person to meet the standards needed for a license,
permit, or other authorization issued by the state or its agents;

(l) a loss based on the usual care and treatment, or lack of care and treatment, of a person
at a state hospital or state corrections facility where reasonable use of available appropriations
has been made to provide care;

(m) loss, damage, or destruction of property of a patient or inmate of a state institution
except as provided under section 3.7381;

(n) a loss for which recovery is prohibited by section 169A.48, subdivision 2;

(o) a loss caused by an aeration, bubbler, water circulation, or similar system used to
increase dissolved oxygen or maintain open water on the ice of public waters, that is operated
under a permit issued by the commissioner of natural resources;

(p) a loss incurred by a visitor to the Minnesota Zoological Garden, except that the state
is liable for conduct that would entitle a trespasser to damages against a private person;

(q) a loss arising out of a person's use of a logging road on public land that is maintained
exclusively to provide access to timber on that land by harvesters of the timber, and is not
signed or otherwise held out to the public as a public highway; and

(r) a loss incurred by a user of property owned, leased, or otherwise controlled by the
Minnesota National Guard or the Department of Military Affairs, except that the state is
liable for conduct that would entitle a trespasser to damages against a private person.

The state will not pay punitive damages.

Sec. 3.

Minnesota Statutes 2016, section 15.01, is amended to read:


15.01 DEPARTMENTS OF THE STATE.

The following agencies are designated as the departments of the state government: the
Department of Administration; the Department of Agriculture; the Department of Commerce;
the Department of Corrections; the Department of Education; the Department of Employment
and Economic Development; the Department of Health; the Department of Human Rights;
the Department of Iron Range Resources and Rehabilitation;
the Department of Labor and
Industry; the Department of Management and Budget; the Department of Military Affairs;
the Department of Natural Resources; the Department of Public Safety; the Department of
Human Services; the Department of Revenue; the Department of Transportation; the
Department of Veterans Affairs; and their successor departments.

Sec. 4.

Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:


Subd. 7.

Department of Iron Range Resources and Rehabilitation Board.

After
seeking a recommendation from the Legislative Commission on Iron Range Resources and
Rehabilitation,
the commissioner of Iron Range resources and rehabilitation Board may
purchase insurance it considers the commissioner deems necessary and appropriate to insure
facilities operated by the board commissioner.

Sec. 5.

Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:


Subd. 3.

Group II salary limits.

The salary for a position listed in this subdivision shall
not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
on January 1. The new limit must equal the limit for the prior year increased by the percentage
increase, if any, in the Consumer Price Index for all urban consumers from October of the
second prior year to October of the immediately prior year. The commissioner of management
and budget must publish the limit on the department's Web site. This subdivision applies
to the following positions:

Executive director of Gambling Control Board;

Commissioner, of Iron Range resources and rehabilitation Board;

Commissioner, Bureau of Mediation Services;

Ombudsman for Mental Health and Developmental Disabilities;

Chair, Metropolitan Council;

School trust lands director;

Executive director of pari-mutuel racing; and

Commissioner, Public Utilities Commission.

Sec. 6.

Minnesota Statutes 2016, section 43A.02, subdivision 22, is amended to read:


Subd. 22.

Executive branch.

"Executive branch" means heads of all agencies of state
government, elective or appointive, established by statute or Constitution and all employees
of those agency heads who have within their particular field of responsibility statewide
jurisdiction and who are not within the legislative or judicial branches of government. The
executive branch also includes employees of the Department of Iron Range Resources and
Rehabilitation Board. The executive branch does not include agencies with jurisdiction in
specifically defined geographical areas, such as regions, counties, cities, towns,
municipalities, or school districts, the University of Minnesota, the Public Employees
Retirement Association, the Minnesota State Retirement System, the Teachers Retirement
Association, the Minnesota Historical Society, and all of their employees, and any other
entity which is incorporated, even though it receives state funds.

Sec. 7.

Minnesota Statutes 2016, section 85.0146, subdivision 1, is amended to read:


Subdivision 1.

Advisory council created.

The Cuyuna Country State Recreation Area
Citizens Advisory Council is established. Membership on the advisory council shall include:

(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board;

(2) a representative of the Croft Mine Historical Park Joint Powers Board;

(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked
as a miner in the local area;

(4) a representative of the Crow Wing County Board;

(5) an elected state official;

(6) a representative of the Grand Rapids regional office of the Department of Natural
Resources;

(7) a designee of the commissioner of Iron Range resources and rehabilitation Board;

(8) a designee of the local business community selected by the area chambers of
commerce;

(9) a designee of the local environmental community selected by the Crow Wing County
District 5 commissioner;

(10) a designee of a local education organization selected by the Crosby-Ironton School
Board;

(11) a designee of one of the recreation area user groups selected by the Cuyuna Range
Chamber of Commerce; and

(12) a member of the Cuyuna Country Heritage Preservation Society.

Sec. 8.

Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read:


Subd. 1a.

Definitions.

For the purposes of this chapter, the following terms have the
meanings given to them in this subdivision.

(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4.

(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02,
subdivision 5
.

(c) "Environmental assessment worksheet" means a brief document which is designed
to set out the basic facts necessary to determine whether an environmental impact statement
is required for a proposed action.

(d) "Governmental action" means activities, including projects wholly or partially
conducted, permitted, assisted, financed, regulated, or approved by units of government
including the federal government.

(e) "Governmental unit" means any state agency and any general or special purpose unit
of government in the state including, but not limited to, watershed districts organized under
chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic
development authorities established under sections 469.090 to 469.108, but not including
courts, school districts, the Department of Iron Range Resources and Rehabilitation, and
regional development commissions other than the Metropolitan Council.

Sec. 9.

Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:


Subd. 2.

Use of fund.

The commissioner shall use money in the fund to make loans or
equity investments in mineral, steel, or any other industry processing, production,
manufacturing, or technology project that would enhance the economic diversification and
that is located within the taconite relief tax relief area as defined under section 273.134.
The commissioner must, prior to making any loans or equity investments and after
consultation with industry and public officials, develop a strategy for making loans and
equity investments that assists the taconite relief area in retaining and enhancing its economic
competitiveness. Money in the fund may also be used to pay for the costs of carrying out
the commissioner's due diligence duties under this section.

Sec. 10.

Minnesota Statutes 2016, section 116J.424, is amended to read:


116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
CONTRIBUTION.

The commissioner of the Iron Range resources and rehabilitation Board with approval
by the board
, after consultation with the Legislative Commission on Iron Range Resources
and Rehabilitation and complying with the requirements for expenditures under section
298.22,
may provide an equal match for any loan or equity investment made for a project
located in the tax relief area defined in section 273.134, paragraph (b), by the Minnesota
21st century fund created by section 116J.423. The match may be in the form of a loan or
equity investment, notwithstanding whether the fund makes a loan or equity investment.
The state shall not acquire an equity interest because of an equity investment or loan by the
board and the board at its sole discretion shall commissioner of Iron Range resources and
rehabilitation and the commissioner, after consultation with the commission, shall have sole
discretion to
decide what interest it the fund acquires in a project. The commissioner of
employment and economic development may require a commitment from the board
commissioner of Iron Range resources and rehabilitation
to make the match prior to
disbursing money from the fund.

Sec. 11.

Minnesota Statutes 2016, section 116J.994, subdivision 3, is amended to read:


Subd. 3.

Subsidy agreement.

(a) A recipient must enter into a subsidy agreement with
the grantor of the subsidy that includes:

(1) a description of the subsidy, including the amount and type of subsidy, and type of
district if the subsidy is tax increment financing;

(2) a statement of the public purposes for the subsidy;

(3) measurable, specific, and tangible goals for the subsidy;

(4) a description of the financial obligation of the recipient if the goals are not met;

(5) a statement of why the subsidy is needed;

(6) a commitment to continue operations in the jurisdiction where the subsidy is used
for at least five years after the benefit date;

(7) the name and address of the parent corporation of the recipient, if any; and

(8) a list of all financial assistance by all grantors for the project.

(b) Business subsidies in the form of grants must be structured as forgivable loans. For
other types of business subsidies, the agreement must state the fair market value of the
subsidy to the recipient, including the value of conveying property at less than a fair market
price, or other in-kind benefits to the recipient.

(c) If a business subsidy benefits more than one recipient, the grantor must assign a
proportion of the business subsidy to each recipient that signs a subsidy agreement. The
proportion assessed to each recipient must reflect a reasonable estimate of the recipient's
share of the total benefits of the project.

(d) The state or local government agency and the recipient must both sign the subsidy
agreement and, if the grantor is a local government agency, the agreement must be approved
by the local elected governing body, except for the St. Paul Port Authority and a seaway
port authority.

(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be
authorized to move from the jurisdiction where the subsidy is used within the five-year
period after the benefit date if, after a public hearing, the grantor approves the recipient's
request to move. For the purpose of this paragraph, if the grantor is a state government
agency other than the Department of Iron Range Resources and Rehabilitation Board,
"jurisdiction" means a city or township.

Sec. 12.

Minnesota Statutes 2016, section 116J.994, subdivision 5, is amended to read:


Subd. 5.

Public notice and hearing.

(a) Before granting a business subsidy that exceeds
$500,000 for a state government grantor and $150,000 for a local government grantor, the
grantor must provide public notice and a hearing on the subsidy. A public hearing and notice
under this subdivision is not required if a hearing and notice on the subsidy is otherwise
required by law.

(b) Public notice of a proposed business subsidy under this subdivision by a state
government grantor, other than the commissioner of Iron Range resources and rehabilitation
Board, must be published in the State Register. Public notice of a proposed business subsidy
under this subdivision by a local government grantor or the commissioner of Iron Range
resources and rehabilitation Board must be published in a local newspaper of general
circulation. The public notice must identify the location at which information about the
business subsidy, including a summary of the terms of the subsidy, is available. Published
notice should be sufficiently conspicuous in size and placement to distinguish the notice
from the surrounding text. The grantor must make the information available in printed paper
copies and, if possible, on the Internet. The government agency must provide at least a
ten-day notice for the public hearing.

(c) The public notice must include the date, time, and place of the hearing.

(d) The public hearing by a state government grantor other than the commissioner of
Iron Range resources and rehabilitation Board must be held in St. Paul.

(e) If more than one nonstate grantor provides a business subsidy to the same recipient,
the nonstate grantors may designate one nonstate grantor to hold a single public hearing
regarding the business subsidies provided by all nonstate grantors. For the purposes of this
paragraph, "nonstate grantor" includes the commissioner of Iron Range resources and
rehabilitation Board.

(f) The public notice of any public meeting about a business subsidy agreement, including
those required by this subdivision and by subdivision 4, must include notice that a person
with residence in or the owner of taxable property in the granting jurisdiction may file a
written complaint with the grantor if the grantor fails to comply with sections 116J.993 to
116J.995, and that no action may be filed against the grantor for the failure to comply unless
a written complaint is filed.

Sec. 13.

Minnesota Statutes 2016, section 116J.994, subdivision 7, is amended to read:


Subd. 7.

Reports by recipients to grantors.

(a) A business subsidy grantor must monitor
the progress by the recipient in achieving agreement goals.

(b) A recipient must provide information regarding goals and results for two years after
the benefit date or until the goals are met, whichever is later. If the goals are not met, the
recipient must continue to provide information on the subsidy until the subsidy is repaid.
The information must be filed on forms developed by the commissioner in cooperation with
representatives of local government. Copies of the completed forms must be sent to the
local government agency that provided the subsidy or to the commissioner if the grantor is
a state agency. If the commissioner of Iron Range resources and rehabilitation Board is the
grantor, the copies must be sent to the board. The report must include:

(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy
is tax increment financing;

(2) the hourly wage of each job created with separate bands of wages;

(3) the sum of the hourly wages and cost of health insurance provided by the employer
with separate bands of wages;

(4) the date the job and wage goals will be reached;

(5) a statement of goals identified in the subsidy agreement and an update on achievement
of those goals;

(6) the location of the recipient prior to receiving the business subsidy;

(7) the number of employees who ceased to be employed by the recipient when the
recipient relocated to become eligible for the business subsidy;

(8) why the recipient did not complete the project outlined in the subsidy agreement at
their previous location, if the recipient was previously located at another site in Minnesota;

(9) the name and address of the parent corporation of the recipient, if any;

(10) a list of all financial assistance by all grantors for the project; and

(11) other information the commissioner may request.

A report must be filed no later than March 1 of each year for the previous year. The local
agency and the commissioner of Iron Range resources and rehabilitation Board must forward
copies of the reports received by recipients to the commissioner by April 1.

(c) Financial assistance that is excluded from the definition of "business subsidy" by
section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting
requirements of this subdivision, except that the report of the recipient must include instead:

(1) the type, public purpose, and amount of the financial assistance, and type of district
if the assistance is tax increment financing;

(2) progress towards meeting goals stated in the assistance agreement and the public
purpose of the assistance;

(3) if the agreement includes job creation, the hourly wage of each job created with
separate bands of wages;

(4) if the agreement includes job creation, the sum of the hourly wages and cost of health
insurance provided by the employer with separate bands of wages;

(5) the location of the recipient prior to receiving the assistance; and

(6) other information the grantor requests.

(d) If the recipient does not submit its report, the local government agency must mail
the recipient a warning within one week of the required filing date. If, after 14 days of the
postmarked date of the warning, the recipient fails to provide a report, the recipient must
pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The
maximum penalty shall not exceed $1,000.

Sec. 14.

Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

(b) "Area development rate" means a rate schedule established by a utility that provides
customers within an area development zone service under a base utility rate schedule, except
that charges may be reduced from the base rate as agreed upon by the utility and the customer
consistent with this section.

(c) "Area development zone" means a contiguous or noncontiguous area designated by
an authority or municipality for development or redevelopment and within which one of
the following conditions exists:

(1) obsolete buildings not suitable for improvement or conversion or other identified
hazards to the health, safety, and general well-being of the community;

(2) buildings in need of substantial rehabilitation or in substandard condition; or

(3) low values and damaged investments.

(d) "Authority" means a rural development financing authority established under sections
469.142 to 469.151; a housing and redevelopment authority established under sections
469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an
economic development authority established under sections 469.090 to 469.108; a
redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron
Range resources and rehabilitation Board established under section 298.22; a municipality
that is administering a development district created under sections 469.124 to 469.133 or
any special law; a municipality that undertakes a project under sections 469.152 to 469.165,
except a town located outside the metropolitan area as defined in section 473.121, subdivision
2
, or with a population of 5,000 persons or less; or a municipality that exercises the powers
of a port authority under any general or special law.

(e) "Municipality" means a city, however organized, and, with respect to a project
undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008,
also includes any county.

Sec. 15.

Minnesota Statutes 2016, section 216B.1694, subdivision 1, is amended to read:


Subdivision 1.

Definition.

For the purposes of this section, the term "innovative energy
project" means a proposed energy-generation facility or group of facilities which may be
located on up to three sites:

(1) that makes use of an innovative generation technology utilizing coal as a primary
fuel in a highly efficient combined-cycle configuration with significantly reduced sulfur
dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional
technologies;

(2) that the project developer or owner certifies is a project capable of offering a long-term
supply contract at a hedged, predictable cost; and

(3) that is designated by the commissioner of the Iron Range resources and rehabilitation
Board as a project that is located in the taconite tax relief area on a site that has substantial
real property with adequate infrastructure to support new or expanded development and
that has received prior financial and other support from the board.

Sec. 16.

Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:


Subd. 8.

Municipality.

"Municipality" means a city, town, or township located in whole
or part within the area. If a municipality is located partly within and partly without the area,
the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to
taxation or taxing jurisdiction within the municipality are to the property or portion thereof
that is located in that portion of the municipality within the area, except that the fiscal
capacity of the municipality must be computed upon the basis of the valuation and population
of the entire municipality. A municipality shall be excluded from the area if its municipal
comprehensive zoning and planning policies conscientiously exclude most
commercial-industrial development, for reasons other than preserving an agricultural use.
The commissioner of Iron Range resources and rehabilitation Board and the commissioner
of revenue shall jointly make this determination annually and shall notify those municipalities
that are ineligible to participate in the tax base sharing program provided in this chapter for
the following year. Before making the determination, the commissioner of Iron Range
resources and rehabilitation must consult the Legislative Commission on Iron Range
Resources and Rehabilitation.

Sec. 17.

Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:


Subd. 17.

School fund allocation.

(a) "School fund allocation" means an amount up to
25 percent of the areawide levy certified by the commissioner of Iron Range resources and
rehabilitation Board , after consultation with the Legislative Commission on Iron Range
Resources and Rehabilitation,
to be used for the purposes of the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a
.

(b) The allocation under paragraph (a) shall only be made after the commissioner of
Iron Range resources and rehabilitation Board , after consultation with the Legislative
Commission on Iron Range Resources and Rehabilitation,
has certified by June 30 that the
Iron Range school consolidation and cooperatively operated account has insufficient funds
to make payments as authorized under section 298.28, subdivision 7a.

Sec. 18.

Minnesota Statutes 2016, section 276A.06, subdivision 8, is amended to read:


Subd. 8.

Certification of values; payment.

The administrative auditor shall determine
for each county the difference between the total levy on distribution value pursuant to
subdivision 3, clause (1), including the school fund allocation within the county and the
total tax on contribution value pursuant to subdivision 7, within the county. On or before
May 16 of each year, the administrative auditor shall certify the differences so determined
and the county's portion of the school fund allocation to each county auditor. In addition,
the administrative auditor shall certify to those county auditors for whose county the total
tax on contribution value exceeds the total levy on distribution value the settlement the
county is to make to the other counties of the excess of the total tax on contribution value
over the total levy on distribution value in the county. On or before June 15 and November
15 of each year, each county treasurer in a county having a total tax on contribution value
in excess of the total levy on distribution value shall pay one-half of the excess to the other
counties in accordance with the administrative auditor's certification. On or before June 15
and November 15 of each year, each county treasurer shall pay to the administrative auditor
that county's share of the school fund allocation. On or before December 1 of each year,
the administrative auditor shall pay the school fund allocation to the commissioner of Iron
Range resources and rehabilitation Board for deposit in the Iron Range school consolidation
and cooperatively operated account.

Sec. 19.

Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:


Subdivision 1.

Development.

In any county where the county board by proper resolution
sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or
section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation
with the approval of the board , after consultation with the Legislative Commission on Iron
Range Resources and Rehabilitation,
may upon request of the county board assist said
county in carrying out any project for the long range development of its forest resources
through matching of funds or otherwise.

Sec. 20.

Minnesota Statutes 2016, section 282.38, subdivision 3, is amended to read:


Subd. 3.

Not to affect commissioner of Iron Range resources and rehabilitation.

Nothing herein shall be construed to limit or abrogate the authority of the commissioner of
Iron Range resources and rehabilitation to give temporary assistance to any county in the
development of its land use program.

Sec. 21.

Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:


Subd. 8.

Commissioner.

"Commissioner" means the commissioner of revenue of the
state of Minnesota, except that when used in sections 298.22 to 298.227 and 298.291 to
298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation
.

Sec. 22.

Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision
to read:


Subd. 11.

Commission.

"Commission" means the Legislative Commission on Iron
Range Resources and Rehabilitation, as established under section 298.22.

Sec. 23.

Minnesota Statutes 2016, section 298.018, subdivision 1, is amended to read:


Subdivision 1.

Within taconite assistance area.

The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:

(1) five percent to the city or town within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one taxing
district, the commissioner shall apportion equitably the proceeds among the cities and towns
by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction,
and the remainder to the concentrating plant and to the processes of concentration, and with
respect to each thereof giving due consideration to the relative extent of the respective
operations performed in each taxing district;

(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282;

(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);

(4) 20 percent to a group of school districts comprised of those school districts wherein
the mineral or energy resource was mined or extracted or in which there is a qualifying
municipality as defined by section 273.134, paragraph (b), in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions;

(5) 20 percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;

(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;

(7) five percent to the commissioner of Iron Range resources and rehabilitation Board
for the purposes of section 298.22;

(8) three percent to the Douglas J. Johnson economic protection trust fund; and

(9) seven percent to the taconite environmental protection fund.

The proceeds of the tax shall be distributed on July 15 each year.

Sec. 24.

Minnesota Statutes 2016, section 298.17, is amended to read:


298.17 OCCUPATION TAXES TO BE APPORTIONED.

(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
companies, corporations, and associations, however or for whatever purpose organized,
engaged in the business of mining or producing iron ore or other ores, when collected shall
be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
article X, section 3, in the manner following: 90 percent shall be deposited in the state
treasury and credited to the general fund of which four-ninths shall be used for the support
of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
by this section shall be deposited in the state treasury and credited to the general fund for
the general support of the university.

(b) Of the money apportioned to the general fund by this section: (1) there is annually
appropriated and credited to the mining environmental and regulatory account in the special
revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax
imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
Money in the mining environmental and regulatory account is appropriated annually to the
commissioner of natural resources to fund agency staff to work on environmental issues
and provide regulatory services for ferrous and nonferrous mining operations in this state.
Payment to the mining environmental and regulatory account shall be made by July 1
annually. The commissioner of natural resources shall execute an interagency agreement
with the Pollution Control Agency to assist with the provision of environmental regulatory
services such as monitoring and permitting required for ferrous and nonferrous mining
operations; (2) there is annually appropriated and credited to the Iron Range resources and
rehabilitation Board account in the special revenue fund an amount equal to that which
would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable
ton produced in the preceding calendar year, to be expended for the purposes of section
298.22; and (3) there is annually appropriated and credited to the Iron Range resources and
rehabilitation Board account in the special revenue fund for transfer to the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a
, an amount equal to that which would have been generated by a six cent tax imposed by
section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the
Iron Range resources and rehabilitation Board account shall be made by May 15 annually.

(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
which does not contain a municipality qualifying pursuant to section 273.134, paragraph
(b)
, or (ii) to provide economic development loans or grants to businesses located within
any such county, provided that the county board or an advisory group appointed by the
county board to provide recommendations on economic development shall make
recommendations to the commissioner of Iron Range resources and rehabilitation Board
regarding the loans. Payment to the Iron Range resources and rehabilitation Board account
shall be made by May 15 annually.

(d) Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commission.

Sec. 25.

Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:


Subdivision 1.

The Office of Commissioner Department of Iron Range Resources
and Rehabilitation.

(a) The Office of the Commissioner Department of Iron Range
Resources and Rehabilitation is created as an agency in the executive branch of state
government. The governor shall appoint the commissioner of Iron Range resources and
rehabilitation under section 15.06.

(b) The commissioner may hold other positions or appointments that are not incompatible
with duties as commissioner of Iron Range resources and rehabilitation. The commissioner
may appoint a deputy commissioner. All expenses of the commissioner, including the
payment of staff and other assistance as may be necessary, must be paid out of the amounts
appropriated by section 298.28 or otherwise made available by law to the commissioner.
Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
options available under section 471.345 when the commissioner determines it is in the best
interest of the agency. The agency is not subject to sections 16E.016 and 16C.05.

(c) When the commissioner determines that distress and unemployment exists or may
exist in the future in any county by reason of the removal of natural resources or a possibly
limited use of natural resources in the future and any resulting decrease in employment, the
commissioner may use whatever amounts of the appropriation made to the commissioner
of revenue in section 298.28 that are determined to be necessary and proper in the
development of the remaining resources of the county and in the vocational training and
rehabilitation of its residents, except that the amount needed to cover cost overruns awarded
to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in
effect after July 1, 1985, is appropriated from the general fund
. For the purposes of this
section, "development of remaining resources" includes, but is not limited to, the promotion
of tourism.

(d) The commissioner shall annually submit a budget proposal to the Legislative
Commission on Iron Range Resources and Rehabilitation. The commission must review
and make recommendations on the commissioner's budget proposal and the governor must
approve the commissioner's budget proposal as provided in subdivisions 1b, 1c, and 11.
This paragraph applies to transfers and expenditures from the following funds or accounts:

(1) the taconite area environmental protection fund under section 298.223, including
grants under section 298.2961;

(2) the Douglas J. Johnson economic protection trust fund under sections 298.291 to
298.298, including grants under section 298.2961;

(3) the Iron Range resources and rehabilitation account in the special revenue fund;

(4) the Iron Range school consolidation and cooperatively operated school account under
section 298.28, subdivision 7a, except as provided under paragraph (e);

(5) the Minnesota 21st century fund match requirements under section 116J.424; and

(6) the Iron Range higher education account under section 298.28, subdivision 9d.

(e) Paragraph (d) does not apply to expenditures for:

(1) the commissioner's obligations under sections 298.221; 298.2211, subdivision 4;
298.225, subdivision 2; and 298.292, subdivision 2, clause (3);

(2) payments of amounts authorized under section 298.28, subdivisions 2, 3, 4, 5, 6, 7a,
clause (4), and 9a; or

(3) other expenditures required to pay bonds or binding contracts entered into prior to
the effective date of this section.

Sec. 26.

Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:


Subd. 1a.

Legislative Commission on Iron Range Resources and Rehabilitation
Board.

(a) The Legislative Commission on Iron Range Resources and Rehabilitation Board
is created in the legislative branch. The commissioner shall consult the commission before
making expenditures or undertaking projects authorized under this chapter. The commission

consists of the state senators and representatives elected from state senatorial or legislative
districts in which one-third or more of the residents reside in a taconite assistance area as
defined in section 273.1341. One additional state senator shall also be appointed by the
senate Subcommittee on Committees of the Committee on Rules and Administration. All
expenditures and projects made by the commissioner shall first be submitted to the board
for approval. The expenses of the board shall be paid by the state from the funds raised
pursuant to this section.
Members of the board may be reimbursed for expenses in the
manner provided in sections 3.099, subdivision 1, and 3.101, and may receive per diem
payments during the interims between legislative sessions in the manner provided in section
3.099, subdivision 1.

The members shall be appointed in January of every odd-numbered year, and shall serve
until January of the next odd-numbered year. Vacancies on the board shall be filled in the
same manner as original members were chosen.

(b) The most senior legislator will serve as temporary chair for the purposes of convening
the first meeting, at which members shall develop procedures to elect a chair. The chair
shall preside and convene meetings as often as necessary to conduct duties prescribed by
this chapter. The commission must meet at least quarterly to review the actions of the
commissioner.

(c) The appointed legislative member shall serve on the commission for a two-year term,
beginning January 1 of each odd-numbered year. The appointed legislative member serves
until their successor is appointed and qualified.

EFFECTIVE DATE.

This section is effective the day following final enactment. The
additional state senator shall be appointed under this section no later than July 1, 2018.

Sec. 27.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 1b.

Evaluation of proposed budgets and projects.

(a) In evaluating budgets
proposed by the commissioner, the commission must consider factors including but not
limited to the extent to which the proposed budget:

(1) contributes to increasing the effectiveness of promoting or managing Iron Range
economic and workforce development, community development, minerals and natural
resources development, and any other issue as determined by the commission; and

(2) advances the strategic plan adopted under subdivision 1c.

(b) In evaluating projects proposed by the commissioner, the commission must consider
factors including but not limited to:

(1) whether, and the extent to which, an applicant could complete the proposed project
without funding from the commissioner;

(2) job creation or retention goals for the proposed project, including but not limited to
wages and benefits; whether the jobs created are full time, part time, temporary, or permanent;
and whether the stated job creation or retention goals in the proposal can be adequately
measured using methods established by the commissioner;

(3) how and to what extent the proposed project is expected to impact the economic
climate of the Iron Range resources and rehabilitation services area;

(4) how the proposed project would meet match requirements, if any; and

(5) whether the proposed project meets the written objectives, priorities, and policies
established by the commissioner.

Sec. 28.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 1c.

Strategic plan required.

The commissioner, in consultation with the
commission, shall adopt a strategic plan for making expenditures including identifying the
priority areas for funding for the next six years. The strategic plan must be reviewed every
two years. The strategic plan must have clearly stated short- and long-term goals and
strategies for expenditures, provide measurable outcomes for expenditures, and determine
areas of emphasis for funding.

Sec. 29.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 1d.

Administrative and staff assistance.

The Legislative Coordinating
Commission shall provide administrative and staff support to the commission. The
commissioner shall provide additional information and research assistance to the commission,
as requested by the commission.

Sec. 30.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 1e.

Expenses of the commission.

All expenses of the commission, including the
payment of per diems and expenses under subdivision 1a must be paid out of the amounts
appropriated by section 298.28 or otherwise made available by law to the commissioner.

Sec. 31.

Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:


Subd. 5a.

Forest trust.

The commissioner, upon approval by the board after consultation
with the commission
, may purchase forest lands in the taconite assistance area defined in
under section 273.1341 with funds specifically authorized for the purchase. The acquired
forest lands must be held in trust for the benefit of the citizens of the taconite assistance
area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed
and developed for recreation and economic development purposes. The commissioner, upon
approval by the board
after consultation with the commission, may sell forest lands purchased
under this subdivision if the board finds commissioner determines that the sale advances
the purposes of the trust. Proceeds derived from the management or sale of the lands and
from the sale of timber or removal of gravel or other minerals from these forest lands shall
be deposited into an Iron Range Miners' Memorial Forest account that is established within
the state financial accounts. Funds may be expended from the account upon approval by
the board
by the commissioner, after consultation with the commission, to purchase, manage,
administer, convey interests in, and improve the forest lands. With approval by the board,
After consultation with the commission, the commissioner may transfer
money in the Iron
Range Miners' Memorial Forest account may be transferred into the corpus of the Douglas
J. Johnson economic protection trust fund established under sections 298.291 to 298.294.
The property acquired under the authority granted by this subdivision and income derived
from the property or the operation or management of the property are exempt from taxation
by the state or its political subdivisions while held by the forest trust. The commissioner's
actions under this subdivision must at all times comply with the requirements for expenditures
under subdivisions 1, 1b, 1c, and 11.

Sec. 32.

Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:


Subd. 6.

Private entity participation.

The board commissioner, after consultation with
the commission,
may acquire an equity interest in any project for which it the commissioner
provides funding. The commissioner may, after consultation with the commission, establish,
participate in the management of, and dispose of the assets of charitable foundations,
nonprofit limited liability companies, and nonprofit corporations associated with any project
for which it the commissioner provides funding, including specifically, but without limitation,
a corporation within the meaning of section 317A.011, subdivision 6. The commissioner's
actions under this subdivision must at all times comply with the requirements for expenditures
under subdivisions 1, 1b, 1c, and 11.

Sec. 33.

Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:


Subd. 10.

Sale or privatization of functions.

The commissioner of Iron Range resources
and rehabilitation
may not sell or privatize the Ironworld Discovery Center or Giants Ridge
Golf and Ski Resort without prior approval by the board first seeking the recommendation
of the commission
.

Sec. 34.

Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:


Subd. 11.

Budgeting.

The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget for operational expenditures, programs, and projects, and
submit it to the Iron Range Resources and Rehabilitation Board commission. After the
commission has been consulted, its recommendations and the commissioner's budget shall
be submitted to the governor. Once
the budget is approved by the board and the governor,
the commissioner may spend money in accordance with the approved budget. If unanticipated
needs for funds arise outside of the annual budget process, the commissioner must consult
the commission and receive the governor's approval before spending the funds.

Sec. 35.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 13.

Grants and loans; requirements.

(a) Prior to awarding any grants or approving
loans from any fund or account from which the commissioner has the authority under law
to expend money, the commissioner must evaluate applications based on criteria including,
but not limited to:

(1) whether, and the extent to which, an applicant could complete a project without
funding from the commissioner;

(2) job creation or retention goals for the project, including but not limited to wages and
benefits, and whether the jobs created are full time, part time, temporary, or permanent;

(3) whether the applicant's stated job creation or retention goals can be adequately
measured using methods established by the commissioner;

(4) how and to what extent the project proposed by the applicant is expected to impact
the economic climate of the Iron Range resources and rehabilitation services area;

(5) how the applicant would meet match requirements, if any; and

(6) whether the project for which a grant or loan application has been submitted meets
the written objectives, priorities, and policies established by the commissioner.

(b) The commissioner, if appropriate, must include incentives in loan and grant award
agreements to promote and assist grant recipients in achieving the stated job creation and
retention objectives established by the commissioner.

(c) For all loans and grants awarded from funds under the commissioner's authority
pursuant to this chapter, the commissioner must:

(1) create and maintain a database for tracking loan and grant awards;

(2) create and maintain an objective mechanism for measuring job creation and retention;

(3) verify achievement of job creation and retention goals by grant and loan recipients;

(4) monitor grant and loan awards to ensure that projects comply with applicable Iron
Range resources and rehabilitation policies; and

(5) verify that grant or loan recipients have met applicable matching fund requirements.

Sec. 36.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 14.

Expenditures; taconite assistance area.

Expenditures subject to the
requirements of this section may be expended only within or for the benefit of the taconite
assistance area defined in section 273.1341.

Sec. 37.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


Subd. 15.

Reports to the legislature.

The commissioner shall submit to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over economic development policy an annual report of expenditures
under this section.

Sec. 38.

Minnesota Statutes 2016, section 298.221, is amended to read:


298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.

(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant
to the terms of any contract entered into by the state under authority of section 298.22 and
any fees which may, in the discretion of the commissioner of Iron Range resources and
rehabilitation, be charged in connection with any project pursuant to that section as amended,
shall be deposited in the state treasury to the credit of the Iron Range resources and
rehabilitation Board account in the special revenue fund and are hereby appropriated for
the purposes of section 298.22.

(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner
of the Iron Range resources and rehabilitation Board for payment of advertising contracts
if the commissioner determines that the merchandise can be used for special event prizes
or mementos at facilities operated by the board commissioner. Nothing in this paragraph
authorizes the commissioner or a member of the board commission to receive merchandise
for personal use.

(c) All fees charged by the commissioner in connection with public use of the state-owned
ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived
by the commissioner from the operation or lease of those facilities and from the lease, sale,
or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be
deposited into an Iron Range resources and rehabilitation Board account that is created
within the state enterprise fund. All funds deposited in the enterprise fund account are
appropriated to the commissioner to be expended, subject to approval by the board, and
may only be used,
as follows:

(1) to pay costs associated with the construction, equipping, operation, repair, or
improvement of the Giants Ridge Recreation Area facilities or lands;

(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs
associated with the financing of the facilities; and

(3) to pay the costs of any other project authorized under section 298.22.

Sec. 39.

Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:


Subd. 3.

Project approval.

All projects authorized by this section shall be submitted
by the commissioner to the Iron Range Resources and Rehabilitation Board for approval
by the board
To get approval of a project under this section, the commissioner must comply
with all the requirements for expenditures under section 298.22
. Prior to the commencement
of a project involving the exercise by the commissioner of any authority of sections 469.174
to 469.179, the governing body of each municipality in which any part of the project is
located and the county board of any county containing portions of the project not located
in an incorporated area shall by majority vote approve or disapprove the project. Any project
approved by the board and the applicable governing bodies, if any, together with detailed
information concerning the project, its costs, the sources of its funding, and the amount of
any bonded indebtedness to be incurred in connection with the project, shall be transmitted
to the governor, who shall approve, disapprove, or return the proposal for additional
consideration within 30 days of receipt. No project authorized under this section shall be
undertaken, and no obligations shall be issued and no tax increments shall be expended for
a project authorized under this section until the project has been approved by the governor.

Sec. 40.

Minnesota Statutes 2016, section 298.2211, subdivision 6, is amended to read:


Subd. 6.

Fee setting.

Fees for admission to or use of facilities operated by the
commissioner of Iron Range resources and rehabilitation Board that have been established
according to prevailing market conditions and to recover operating costs need not be set by
rule.

Sec. 41.

Minnesota Statutes 2016, section 298.2212, is amended to read:


298.2212 INVESTMENT OF FUNDS.

All funds credited to the Iron Range resources and rehabilitation Board account in the
special revenue fund for the purposes of section 298.22 must be invested pursuant to law.
The net interest and dividends from the investments are included and become part of the
funds available for purposes of section 298.22.

Sec. 42.

Minnesota Statutes 2016, section 298.2214, subdivision 2, is amended to read:


Subd. 2.

Iron Range Higher Education Committee; membership.

The members of
the committee shall consist of:

(1) one member appointed by the governor;

(2) one member appointed by the president of the University of Minnesota;

(3) four members of the Legislative Commission on Iron Range Resources and
Rehabilitation Board appointed by the chair;

(4) the commissioner of Iron Range resources and rehabilitation; and

(5) the president of the Northeast Higher Education District or its successor.

Sec. 43.

Minnesota Statutes 2016, section 298.223, is amended to read:


298.223 TACONITE AREA ENVIRONMENTAL PROTECTION FUND.

Subdivision 1.

Creation; purposes.

A fund called the taconite environmental protection
fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast
Minnesota located within the taconite assistance area defined in section 273.1341, that are
adversely affected by the environmentally damaging operations involved in mining taconite
and iron ore and producing iron ore concentrate and for the purpose of promoting the
economic development of northeast Minnesota. The taconite environmental protection fund
shall be used for the following purposes:

(1) to initiate investigations into matters the commissioner of Iron Range resources and
rehabilitation Board determines are in need of study and which will determine the
environmental problems requiring remedial action;

(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for
by state law;

(3) local economic development projects but only if those projects are approved by the
board,
and public works, including construction of sewer and water systems located within
the taconite assistance area defined in section 273.1341;

(4) monitoring of mineral industry related health problems among mining employees;
and

(5) local public works projects under section 298.227, paragraph (c).

Subd. 2.

Administration.

(a) The taconite area environmental protection fund shall be
administered by the commissioner of the Iron Range resources and rehabilitation Board.
The commissioner shall by September 1 of each year submit to the board a list of projects
to be funded from the taconite area environmental protection fund, with such supporting
information including description of the projects, plans, and cost estimates as may be
necessary.
in compliance with the requirements for expenditures under section 298.22.

(b) Each year no less than one-half of the amounts deposited into the taconite
environmental protection fund must be used for public works projects, including construction
of sewer and water systems, as specified under subdivision 1, clause (3). The Iron Range
Resources and Rehabilitation Board may waive the requirements of this paragraph.

(c) Upon approval by the board, the list of projects approved under this subdivision shall
be submitted to the governor by November 1 of each year. By December 1 of each year,
the governor shall approve or disapprove, or return for further consideration, each project.
Funds for a project may be expended only upon approval of the project by the board and
the governor. The commissioner may submit supplemental projects to the board and governor
for approval at any time.

Subd. 3.

Appropriation.

There is annually appropriated to the commissioner of Iron
Range resources and rehabilitation taconite area environmental protection funds necessary
to carry out approved projects and programs and the funds necessary for administration of
this section. Annual administrative costs, not including detailed engineering expenses for
the projects, shall not exceed five percent of the amount annually expended from the fund.

Funds for the purposes of this section are provided by section 298.28, subdivision 11,
relating to the taconite area environmental protection fund.

Sec. 44.

Minnesota Statutes 2016, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

(a) An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
commissioner of Iron Range resources and rehabilitation Board in a separate taconite
economic development fund for each taconite and direct reduced ore producer. Money from
the fund for each producer shall be released by the commissioner after review by a joint
committee consisting of an equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that producer. The District 11
director of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized operations, the employee
committee shall be elected by the nonsalaried production and maintenance employees. The
review must be completed no later than six months after the producer presents a proposal
for expenditure of the funds to the committee. The funds held pursuant to this section may
be released only for workforce development and associated public facility improvement,
or for acquisition of plant and stationary mining equipment and facilities for the producer
or for research and development in Minnesota on new mining, or taconite, iron, or steel
production technology, but only if the producer provides a matching expenditure equal to
the amount of the distribution to be used for the same purpose beginning with distributions
in 2014. Effective for proposals for expenditures of money from the fund beginning May
26, 2007, the commissioner may not release the funds before the next scheduled meeting
of the board. If a proposed expenditure is not approved by the board under the requirements
for expenditures under section 298.22
, the funds must be deposited in the Taconite
Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses money
which has been released from the fund prior to May 26, 2007 to procure haulage trucks,
mobile equipment, or mining shovels, and the producer removes the piece of equipment
from the taconite tax relief area defined in section 273.134 within ten years from the date
of receipt of the money from the fund, a portion of the money granted from the fund must
be repaid to the taconite economic development fund. The portion of the money to be repaid
is 100 percent of the grant if the equipment is removed from the taconite tax relief area
within 12 months after receipt of the money from the fund, declining by ten percent for
each of the subsequent nine years during which the equipment remains within the taconite
tax relief area.
If a taconite production facility is sold after operations at the facility had
ceased, any money remaining in the fund for the former producer may be released to the
purchaser of the facility on the terms otherwise applicable to the former producer under this
section. If a producer fails to provide matching funds for a proposed expenditure within six
months after the commissioner approves release of the funds, the funds are available for
release to another producer in proportion to the distribution provided and under the conditions
of this section. Any portion of the fund which is not released by the commissioner within
one year of its deposit in the fund shall be divided between the taconite environmental
protection fund created in section 298.223 and the Douglas J. Johnson economic protection
trust fund created in section 298.292 for placement in their respective special accounts.
Two-thirds of the unreleased funds shall be distributed to the taconite environmental
protection fund and one-third to the Douglas J. Johnson economic protection trust fund.

(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed under
paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
wood product facility located in the taconite tax relief area and in a county that contains a
city of the first class. This amount must be deducted from the distribution under paragraph
(a) for which a matching expenditure by the producer is not required. The granting of the
loan or grant is subject to approval by the board. If the money is provided as a loan, interest
must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii)
Repayments of the loan and interest, if any, must be deposited in the taconite environment
protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this
paragraph by July 1, 2012, the amount that had been made available for the loan under this
paragraph must be transferred to the taconite environment protection fund under sections
298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section
that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a
pro rata basis.

(c) Repayment or transfer of money to the taconite environmental protection fund under
paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
Board for public works projects in house legislative districts in the same proportion as
taxable tonnage of production in 2007 in each house legislative district, for distribution in
2008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
Notwithstanding any other law to the contrary, expenditures under this paragraph do not
require approval by the governor. For purposes of this paragraph, "house legislative districts"
means the legislative districts in existence on May 15, 2009.

Sec. 45.

Minnesota Statutes 2016, section 298.27, is amended to read:


298.27 COLLECTION AND PAYMENT OF TAX.

The taxes provided by section 298.24 shall be paid directly to each eligible county and
the commissioner of Iron Range resources and rehabilitation Board. The commissioner of
revenue shall notify each producer of the amount to be paid each recipient prior to February
15. Every person subject to taxes imposed by section 298.24 shall file a correct report
covering the preceding year. The report must contain the information required by the
commissioner of revenue. The report shall be filed by each producer on or before February
1. A remittance equal to 50 percent of the total tax required to be paid hereunder shall be
paid on or before February 24. A remittance equal to the remaining total tax required to be
paid hereunder shall be paid on or before August 24. On or before February 25 and August
25, the county auditor shall make distribution of the payments previously received by the
county in the manner provided by section 298.28. Reports shall be made and hearings held
upon the determination of the tax in accordance with procedures established by the
commissioner of revenue. The commissioner of revenue shall have authority to make
reasonable rules as to the form and manner of filing reports necessary for the determination
of the tax hereunder, and by such rules may require the production of such information as
may be reasonably necessary or convenient for the determination and apportionment of the
tax. All the provisions of the occupation tax law with reference to the assessment and
determination of the occupation tax, including all provisions for appeals from or review of
the orders of the commissioner of revenue relative thereto, but not including provisions for
refunds, are applicable to the taxes imposed by section 298.24 except in so far as inconsistent
herewith. If any person subject to section 298.24 shall fail to make the report provided for
in this section at the time and in the manner herein provided, the commissioner of revenue
shall in such case, upon information possessed or obtained, ascertain the kind and amount
of ore mined or produced and thereon find and determine the amount of the tax due from
such person. There shall be added to the amount of tax due a penalty for failure to report
on or before February 1, which penalty shall equal ten percent of the tax imposed and be
treated as a part thereof.

If any person responsible for making a tax payment at the time and in the manner herein
provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount
so due, which penalty shall be treated as part of the tax due.

In the case of any underpayment of the tax payment required herein, there may be added
and be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid.

A person having a liability of $120,000 or more during a calendar year must remit all
liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336.4A-401, must be on or before the
date the tax is due. If the date the tax is due is not a funds transfer business day, as defined
in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the
funds transfer business day next following the date the tax is due.

Sec. 46.

Minnesota Statutes 2016, section 298.28, subdivision 7, is amended to read:


Subd. 7.

Iron Range resources and rehabilitation Board account.

For the 1998
distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources and
rehabilitation Board account for the purposes of section 298.22. That amount shall be
increased for distribution years 1999 through 2014 and for distribution in 2018 and
subsequent years in the same proportion as the increase in the implicit price deflator as
provided in section 298.24, subdivision 1. The amount distributed pursuant to this subdivision
shall be expended within or for the benefit of the taconite assistance area defined in section
273.1341 and in compliance with the requirements for expenditures under section 298.22.
No part of the fund provided in this subdivision may be used to provide loans for the
operation of private business unless the loan is approved by the governor.

Sec. 47.

Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:


Subd. 7a.

Iron Range school consolidation and cooperatively operated school account.

(a) The following amounts must be allocated to the Iron Range resources and rehabilitation
Board
account to be deposited in the Iron Range school consolidation and cooperatively
operated school account that is hereby created:

(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed
under section 298.24; and

(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
under section 298.24;

(2) the amount as determined under section 298.17, paragraph (b), clause (3);

(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;

(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third
to be distributed to the Douglas J. Johnson economic protection trust fund; and

(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased
tax proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining
one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and

(4) any other amount as provided by law.

(b) Expenditures from this account shall be made only to provide disbursements to assist
school districts with the payment of bonds that were issued for qualified school projects,
or for any other school disbursement as approved by the commissioner of Iron Range
resources and rehabilitation Board , after consultation with the commission. For purposes
of this section, "qualified school projects" means school projects within the taconite assistance
area as defined in section 273.1341, that were (1) approved, by referendum, after April 3,
2006; and (2) approved by the commissioner of education pursuant to section 123B.71.

(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.

(d) No expenditure under this section shall be made unless approved by seven members
of the Iron Range Resources and Rehabilitation Board
the commissioner has complied with
the requirements for expenditures under section 298.22
.

Sec. 48.

Minnesota Statutes 2016, section 298.28, subdivision 9c, is amended to read:


Subd. 9c.

Distribution; city of Eveleth.

0.20 cent per taxable ton must be paid to the
city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the
Hockey Hall of Fame, provided that it continues to operate in that city, and provided that
the city of Eveleth certifies to the St. Louis County auditor that it has received donations
for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of Fame
ceases to operate in the city of Eveleth prior to receipt of the distribution in any year, and
the governing body of the city determines that it is unlikely to resume operation there within
a six-month period, the distribution under this subdivision shall be made to the commissioner
of
Iron Range resources and rehabilitation Board.

Sec. 49.

Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:


Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton must be
allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron
Range higher education account that is hereby created, to be used for higher education
programs conducted at educational institutions in the taconite assistance area defined in
section 273.1341. The Iron Range Higher Education committee under section 298.2214,
and the commissioner of Iron Range resources and rehabilitation Board , after complying
with all the requirements for expenditures under section 298.22,
must approve all
expenditures from the account.

Sec. 50.

Minnesota Statutes 2016, section 298.28, subdivision 11, is amended to read:


Subd. 11.

Remainder.

(a) The proceeds of the tax imposed by section 298.24 which
remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
interest earned on all money distributed under this section prior to distribution, shall be
divided between the taconite environmental protection fund created in section 298.223 and
the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows:
Two-thirds to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund. The proceeds shall be placed in the respective
special accounts.

(b) There shall be distributed to each city, town, and county the amount that it received
under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however,
that the amount distributed in 1981 to the unorganized territory number 2 of Lake County
and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company
will be distributed in 1982 and subsequent years to the unorganized territory number 2 of
Lake County and the towns of Beaver Bay and Stony River based on the miles of track of
Erie Mining Company in each taxing district.

(c) There shall be distributed to the Iron Range resources and rehabilitation Board account
the amounts it received in 1977 under Minnesota Statutes 1978, section 298.22. The amount
distributed under this paragraph shall be expended within or for the benefit of the taconite
assistance area defined in section 273.1341.

(d) There shall be distributed to each school district 62 percent of the amount that it
received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

Sec. 51.

Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:


Subd. 2.

Use of money.

Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
with private sources of financing, but a loan to a private enterprise shall be for a principal
amount not to exceed one-half of the cost of the project for which financing is sought, and
the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
percent or an interest rate three percentage points less than a full faith and credit obligation
of the United States government of comparable maturity, at the time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the principal
of and interest on bonds issued pursuant to section 298.2211;

(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
retrofitting heating facilities in connection with district heating systems or systems utilizing
alternative energy sources;

(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
Johnson economic protection trust fund may not exceed the amount of the largest investment
by an unrelated investor in the venture capital fund or enterprise. For purposes of this
subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
which the investment is made or to any individual who owns more than 40 percent of the
value of the entity, in any of the following relationships: spouse, parent, child, sibling,
employee, or owner of an interest in the entity that exceeds ten percent of the value of all
interests in it. For purposes of determining the limitations under this clause, the amount of
investments made by an investor other than the Douglas J. Johnson economic protection
trust fund is the sum of all investments made in the venture capital fund or enterprise during
the period beginning one year before the date of the investment by the Douglas J. Johnson
economic protection trust fund; and

(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
be held and managed as a public trust for the benefit of the area for the purposes authorized
in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
commissioner upon approval by the board , after consultation with the commission. The net
proceeds must be deposited in the trust fund for the purposes and uses of this section.

Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.

Sec. 52.

Minnesota Statutes 2016, section 298.296, is amended to read:


298.296 OPERATION OF FUND.

Subdivision 1.

Project approval.

The board and commissioner shall by August 1 of
each year prepare a list of projects to be funded from the Douglas J. Johnson economic
protection trust with necessary supporting information including description of the projects,
plans, and cost estimates
must comply with the requirements for expenditures under section
298.22
. These Projects shall be consistent with the priorities established in section 298.292
and shall not be approved by the board unless it proposed by the commissioner unless the
commissioner
finds that:

(a) the project will materially assist, directly or indirectly, the creation of additional
long-term employment opportunities;

(b) the prospective benefits of the expenditure exceed the anticipated costs; and

(c) in the case of assistance to private enterprise, the project will serve a sound business
purpose.

Each project must be approved by over one-half of all of the members of the board and
the commissioner of Iron Range resources and rehabilitation. The list of projects shall be
submitted to the governor, who shall, by November 15 of each year, approve or disapprove,
or return for further consideration, each project. The money for a project may be expended
only upon approval of the project by the governor. The board may submit supplemental
projects for approval at any time.

Subd. 2.

Expenditure of funds.

(a) Before January 1, 2028, funds may be expended on
projects and for administration of the trust fund only from the net interest, earnings, and
dividends arising from the investment of the trust at any time, including net interest, earnings,
and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for
use in fiscal year 1983, except that any amount required to be paid out of the trust fund to
provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and
to make school bond payments and payments to recipients of taconite production tax proceeds
pursuant to section 298.225, may be taken from the corpus of the trust.

(b) Additionally, upon recommendation by the board, the commissioner, after consulting
the commission, may choose to make
up to $13,000,000 from the corpus of the trust may
be made
available for use as provided in subdivision 4, and up to $10,000,000 from the
corpus of the trust may be made available for use as provided in section 298.2961.

(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8,
section 17, may be expended on projects. Funds The commissioner may be expended expend
funds
for projects under this paragraph only if the project:

(1) the project is for the purposes established under section 298.292, subdivision 1,
clause (1) or (2); and

(2) is approved by two-thirds of all of the members of the board the commissioner
complied with the requirements for expenditures under section 298.22
.

No money made available under this paragraph or paragraph (d) can be used for
administrative or operating expenses of the Department of Iron Range resources and
rehabilitation Board or expenses relating to any facilities owned or operated by the board
commissioner
on May 18, 2002.

(d) Upon recommendation by a unanimous vote of all members of the board, The
commissioner may spend
amounts in addition to those authorized under paragraphs (a), (b),
and (c) may be expended on projects described in section 298.292, subdivision 1 , if the
commissioner complies with the requirements for expenditures under section 298.22
.

(e) Annual administrative costs, not including detailed engineering expenses for the
projects, shall not exceed five percent of the net interest, dividends, and earnings arising
from the trust in the preceding fiscal year.

(f) Principal and interest received in repayment of loans made pursuant to this section,
and earnings on other investments made under section 298.292, subdivision 2, clause (4),
shall be deposited in the state treasury and credited to the trust. These receipts are
appropriated to the board for the purposes of sections 298.291 to 298.298.

(g) Additionally, notwithstanding section 298.293, upon the approval of the board if the
commissioner complies with the requirements for expenditures under section 298.22
, money
from the corpus of the trust may be expanded to purchase forest lands within the taconite
assistance area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2,
clause (5).

Subd. 3.

Administration.

The commissioner and staff of the Iron Range resources and
rehabilitation Board shall administer the program under which funds are expended pursuant
to sections 298.292 to 298.298.

Subd. 4.

Temporary loan authority.

(a) The board may recommend that If the
commissioner complies with the requirements for expenditures under section 298.22, the
commissioner may use
up to $7,500,000 from the corpus of the trust may be used for loans,
loan guarantees, grants, or equity investments as provided in this subdivision. The money
would be available for loans for construction and equipping of facilities constituting (1) a
value added iron products plant, which may be either a new plant or a facility incorporated
into an existing plant that produces iron upgraded to a minimum of 75 percent iron content
or any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine or
minerals processing plant for any mineral subject to the net proceeds tax imposed under
section 298.015. A loan or loan guarantee under this paragraph may not exceed $5,000,000
for any facility.

(b) Additionally, the board must reserve the first $2,000,000 of the net interest, dividends,
and earnings arising from the investment of the trust after June 30, 1996, to be used must
be reserved
for grants, loans, loan guarantees, or equity investments for the purposes set
forth in paragraph (a). This amount must be reserved until it is used as described in this
subdivision.

(c) Additionally, the board may recommend that up to $5,500,000 from the corpus of
the trust may be used for additional grants, loans, loan guarantees, or equity investments
for the purposes set forth in paragraph (a).

(d) The board commissioner, after consultation with the commission, may require that
it
the fund receive an equity percentage in any project to which it contributes under this
section.

Sec. 53.

Minnesota Statutes 2016, section 298.2961, is amended to read:


298.2961 PRODUCER GRANTS.

Subdivision 1.

Appropriation.

(a) $10,000,000 is appropriated from the Douglas J.
Johnson economic protection trust fund to a special account in the taconite area environmental
protection fund for grants to producers on a project-by-project basis as provided in this
section.

(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are
appropriated for grants to producers on a project-by-project basis as provided in this section.

Subd. 2.

Projects; approval.

(a) Projects funded must be for:

(1) environmentally unique reclamation projects; or

(2) pit or plant repairs, expansions, or modernizations other than for a value added iron
products plant.

(b) To be proposed by the board, a project must be approved by the board. The money
for a project may be spent only upon approval of the project by the governor. The board
may submit supplemental projects for approval at any time
For all such projects, the
commissioner must comply with the requirements for expenditures under section 298.22
.

(c) The board commissioner, after consultation with the commission, may require that
it the fund receive an equity percentage in any project to which it contributes under this
section.

Subd. 3.

Redistribution.

(a) If a taconite production facility is sold after operations at
the facility had ceased, any money remaining in the taconite environmental fund for the
former producer may be released to the purchaser of the facility on the terms otherwise
applicable to the former producer under this section.

(b) Any portion of the taconite environmental fund that is not released by the
commissioner within three years of its deposit in the taconite environmental fund shall be
divided between the taconite environmental protection fund created in section 298.223 and
the Douglas J. Johnson economic protection trust fund created in section 298.292 for
placement in their respective special accounts. Two-thirds of the unreleased funds must be
distributed to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund.

Subd. 4.

Grant and loan fund.

(a) A fund is established to receive distributions under
section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision.
Any grant or loan made under this subdivision must be approved by the board, established
under section 298.22
comply with the requirements for expenditures under section 298.22.

(b) All distributions received in 2009 and subsequent years are allocated for projects
under section 298.223, subdivision 1.

Sec. 54.

Minnesota Statutes 2016, section 298.297, is amended to read:


298.297 ADVISORY COMMITTEES.

Before submission of a project to the board commission, the commissioner of Iron Range
resources and rehabilitation shall appoint a technical advisory committee consisting of one
or more persons who are knowledgeable in areas related to the objectives of the proposal.
Members of the committees shall be compensated as provided in section 15.059, subdivision
3
. The board shall not act commission shall not make recommendations on a proposal until
it has received the evaluation and recommendations of the technical advisory committee or
until 15 days have elapsed since the proposal was transmitted to the advisory committee,
whichever occurs first.

Sec. 55.

Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:


Subd. 2.

Unmined iron ore; valuation petition.

When in the opinion of the duly
constituted authorities of a taxing district there are in existence reserves of unmined iron
ore located in such district, these authorities may petition the commissioner of Iron Range
resources and rehabilitation Board for authority to petition the county assessor to verify the
existence of such reserves and to ascertain the value thereof by drilling in a manner consistent
with established engineering and geological exploration methods, in order that such taxing
district may be able to forecast in a proper manner its future economic and fiscal potentials.
The commissioner may grant the authority to petition only after consultation with the
commission.

Sec. 56.

Minnesota Statutes 2016, section 298.46, subdivision 5, is amended to read:


Subd. 5.

Payment of costs; reimbursement.

The cost of such exploration or drilling
plus any damages to the property which may be assessed by the district court shall be paid
by the commissioner of Iron Range resources and rehabilitation Board from amounts
appropriated to that board the commissioner under section 298.22. The commissioner of
Iron Range resources and rehabilitation Board shall be reimbursed for one-half of the
amounts thus expended. Such reimbursement shall be made by the taxing districts in the
proportion that each such taxing district's levy on the property involved bears to the total
levy on such property. Such reimbursement shall be made to the commissioner of Iron
Range resources and rehabilitation Board in the manner provided by section 298.221.

Sec. 57.

Minnesota Statutes 2016, section 298.46, subdivision 6, is amended to read:


Subd. 6.

Refusal to reimburse; reduction of other payments.

If any taxing district
refuses to pay its share of the reimbursement as provided in subdivision 5, the county auditor
is hereby authorized to reduce payments required to be made by the county to such taxing
district under other provisions of law. Thereafter the auditor shall draw a warrant, which
shall be deposited with the state treasury in accordance with section 298.221, to the credit
of the commissioner of Iron Range resources and rehabilitation Board.

Sec. 58.

Minnesota Statutes 2016, section 466.03, subdivision 6c, is amended to read:


Subd. 6c.

Water access sites.

Any claim based upon the construction, operation, or
maintenance by a municipality of a water access site created by the commissioner of Iron
Range resources and rehabilitation Board. A water access site under this subdivision that
provides access to an idled, water filled mine pit also includes the entire water filled area
of the pit, and, further, claims related to a mine pit water access site under this subdivision
include those based upon the caving or slumping of mine pit walls.

Sec. 59.

Minnesota Statutes 2016, section 469.310, subdivision 9, is amended to read:


Subd. 9.

Local government unit.

"Local government unit" means a statutory or home
rule charter city, county, town, the Department of Iron Range Resources and Rehabilitation
agency, regional development commission, or a federally designated economic development
district.

Sec. 60.

Minnesota Statutes 2016, section 474A.02, subdivision 21, is amended to read:


Subd. 21.

Preliminary resolution.

"Preliminary resolution" means a resolution adopted
by the governing body or board of the issuer, or in the case of the by the commissioner of
Iron Range resources and rehabilitation Board by the commissioner. The resolution must
express a preliminary intention of the issuer to issue obligations for a specific project,
identify the proposed project, and disclose the proposed amount of qualified bonds to be
issued. Preliminary resolutions for mortgage bonds and student loan bonds need not identify
a specific project.

Sec. 61.

Laws 2010, chapter 389, article 5, section 7, is amended to read:


Sec. 7. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY.

Subdivision 1.

Additional taxes authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or charter provision to the contrary, the city
of Biwabik, upon approval both by its governing body and by the vote of at least seven
members of the Iron Range Resources and Rehabilitation Board, may impose any or all of
the taxes described in this section.

Subd. 2.

Use of proceeds.

The proceeds of any taxes imposed under this section, less
refunds and costs of collection, must be deposited into the Iron Range Resources and
Rehabilitation Board account enterprise fund created under the provisions of Minnesota
Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the
commissioner of the Iron Range resources and rehabilitation Board, upon approval by the
vote of at least seven members of
after consultation with the Legislative Commission on
Iron Range Resources and Rehabilitation Board, to pay costs for the construction, renovation,
improvement, expansion, and maintenance of public recreational facilities located in those
portions of the city within the Giants Ridge Recreation Area as defined in Minnesota Statutes,
section 298.22, subdivision 7, or to pay any principal, interest, or premium on any bond
issued to finance the construction, renovation, improvement, or expansion of such public
recreational facilities.

Subd. 3.

Lodging tax.

(a) The city of Biwabik, upon approval both by its governing
body and by the vote of at least seven members of the Iron Range Resources and
Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the
gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This
tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may
be imposed only on gross lodging receipts generated within the Giants Ridge Recreation
Area as defined in Minnesota Statutes, section 298.22, subdivision 7.

(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner consults with the Legislative Commission on Iron Range Resources and
Rehabilitation.

Subd. 4.

Admissions and recreation tax.

(a) The city of Biwabik, upon approval both
by its governing body and by the vote of at least seven members of the Iron Range Resources
and Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent
on admission receipts to entertainment and recreational facilities and on receipts from the
rental of recreation equipment, at sites within the Giants Ridge Recreation Area as defined
in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota Statutes,
section 297A.99, except for subdivisions 2 and 3, govern the imposition, administration,
collection, and enforcement of the tax authorized in this subdivision.

(b) If the city imposes the tax under paragraph (a), it must include in the ordinance an
exemption for purchases of season tickets or passes.

(c) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner consults with the Legislative Commission on Iron Range Resources and
Rehabilitation.

Subd. 5.

Food and beverage tax.

(a) The city of Biwabik, upon approval both by its
governing body and by the vote of at least seven members of the Iron Range Resources and
Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more than
one percent on gross receipts of food and beverages sold whether it is consumed on or off
the premises by restaurants and places of refreshment as defined by resolution of the city
within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
subdivision 7
. The provisions of Minnesota Statutes, section 297A.99, except for subdivisions
2 and 3, govern the imposition, administration, collection, and enforcement of the tax
authorized in this subdivision.

(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner consults with the Legislative Commission on Iron Range Resources and
Rehabilitation.

EFFECTIVE DATE.

This section is effective August 1, 2017, without local approval
pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

Sec. 62. REVISOR'S INSTRUCTION.

The revisor of statutes, with cooperation from the House Research Department and the
Office of Senate Counsel, Research, and Fiscal Analysis, shall prepare legislation that makes
conforming changes in accordance with the provisions of this article. The revisor shall
submit the proposal, in a form ready for introduction, during the 2018 regular legislative
session to the chairs and ranking minority members of the senate and house of representatives
committees with jurisdiction over taxes.

Sec. 63. REPEALER.

Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, are
repealed.

ARTICLE 5

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
POLICY

Section 1.

Minnesota Statutes 2016, section 268.046, subdivision 3, is amended to read:


Subd. 3.

Penalties; application.

(a) Any person that violates the requirements of this
section and any taxpaying employer that violates subdivision 1, paragraph (b), or any
nonprofit or government employer that violates subdivision 2, paragraph (b), is subject to
the penalties under section 268.184, subdivision 1a. Penalties are credited to the trust fund.

(b) Section 268.051, subdivision 4, does not apply to contracts under this section. This
section does not limit or prevent the application of section 268.051, subdivision 4, to any
other transactions or acquisitions involving the taxpaying employer. This section does not
limit or prevent the application of section 268.051, subdivision 4a.

(c) An assignment of an account upon the execution of a contract under this section and
a termination of a contract with the corresponding assignment of the account is not considered
a separation from employment of any worker covered by the contract. Nothing under this
subdivision causes the person to be liable for any amounts past due under this chapter from
the taxpaying employer or the nonprofit or government employer.

(d) This section applies to, but is not limited to, persons registered under section 79.255,
but does not apply to persons that obtain
An exemption from registration under section
79.255, subdivision 9 , does not determine the application of this section.

Sec. 2.

Minnesota Statutes 2016, section 268.065, subdivision 2, is amended to read:


Subd. 2.

Employee leasing company, professional employer organization, or similar
person.

(a) A person whose work force consists of 50 percent or more of workers provided
by an employee leasing company, professional employer organization, or similar person
for a fee, is jointly and severally liable for the unpaid amounts that are due under this chapter
or section 116L.20 on the wages paid on the contract with the employee leasing company,
professional employer organization, or similar person.

(b) This subdivision applies to, but is not limited to, persons registered under section
79.255, but does not apply to agreements with persons that obtain
An exemption from
registration under section 79.255, subdivision 9 , does not determine the application of this
section
.

Sec. 3.

Minnesota Statutes 2016, section 268.085, subdivision 13, is amended to read:


Subd. 13.

Suspension from employment.

(a) An applicant who has been suspended
from employment without pay for 30 calendar days or less, as a result of employment
misconduct or aggravated employment misconduct as defined under section 268.095,
subdivision 6,
is ineligible for unemployment benefits beginning the Sunday of the week
that the applicant was suspended and continuing for the duration of the suspension.

(b) A suspension from employment without pay that is of indefinite duration or is for
more than 30 calendar days is considered, at the time the suspension begins, a discharge
from employment under subject to section 268.095, subdivision 5 .

(c) A suspension from employment with pay, regardless of duration, is not considered
a separation from employment and the applicant is ineligible for unemployment benefits
for the duration of the suspension with pay.

Sec. 4.

Minnesota Statutes 2016, section 268.095, subdivision 5, is amended to read:


Subd. 5.

Discharge defined.

(a) A discharge from employment occurs when any words
or actions by an employer would lead a reasonable employee to believe that the employer
will no longer allow the employee to work for the employer in any capacity. A layoff because
of lack of work is a discharge.

(b) A suspension from employment without pay that is of an indefinite duration or is
for
more than 30 calendar days is considered a discharge at the time the suspension begins.

(b) (c) When determining if an applicant was discharged, the theory of a constructive
discharge does not apply.

(c) (d) An employee who gives notice of intention to quit the employment and is not
allowed by the employer to work the entire notice period is discharged from the employment
as of the date the employer will no longer allow the employee to work. If the discharge
occurs within 30 calendar days before the intended date of quitting, then, as of the intended
date of quitting, the separation from employment is a quit from employment subject to
subdivision 1.

(d) (e) The end of a job assignment with the client of a staffing service is a discharge
from employment with the staffing service unless subdivision 2, paragraph (e), applies.

Sec. 5.

Minnesota Statutes 2016, section 268.101, subdivision 2, is amended to read:


Subd. 2.

Determination.

(a) The commissioner must determine any issue of ineligibility
raised by information required from an applicant under subdivision 1, paragraph (a) or (c),
and send to the applicant and any involved employer, by mail or electronic transmission, a
document titled a determination of eligibility or a determination of ineligibility, as is
appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge
of the applicant must state the effect on the employer under section 268.047. A determination
must be made in accordance with this paragraph even if a notified employer has not raised
the issue of ineligibility.

(b) The commissioner must determine any issue of ineligibility raised by an employer
and send to the applicant and that employer, by mail or electronic transmission, a document
titled a determination of eligibility or a determination of ineligibility as is appropriate. The
determination on an issue of ineligibility as a result of a quit or discharge of the applicant
must state the effect on the employer under section 268.047.

If a base period employer:

(1) was not the applicant's most recent employer before the application for unemployment
benefits;

(2) did not employ the applicant during the six calendar months before the application
for unemployment benefits; and

(3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant
within ten calendar days of notification under subdivision 1, paragraph (b);

then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
weeks following the week that the issue of ineligibility as a result of a quit or discharge of
the applicant was raised by the employer.

A communication from an employer must specifically set out why the applicant should
be determined ineligible for unemployment benefits for that communication to be considered
to have raised an issue of ineligibility for purposes of this section. A statement of "protest"
or a similar term without more information does not constitute raising an issue of ineligibility
for purposes of this section.

(c) Subject to section 268.031, an issue of ineligibility is determined based upon that
information required of an applicant, any information that may be obtained from an applicant
or employer, and information from any other source.

(d) Regardless of the requirements of this subdivision, the commissioner is not required
to send to an applicant a copy of the determination where the applicant has satisfied a period
of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.

(e) The commissioner may department is authorized to issue a determination on an issue
of ineligibility within 24 months from the establishment of a benefit account based upon
information from any source, even if the issue of ineligibility was not raised by the applicant
or an employer.

If an applicant obtained unemployment benefits through fraud misrepresentation under
section 268.18, subdivision 2, the department is authorized to issue a determination of
ineligibility may be issued within 48 months of the establishment of the benefit account.

If the department has filed an intervention in a worker's compensation matter under
section 176.361, the department is authorized to issue a determination of ineligibility within
48 months of the establishment of the benefit account.

(f) A determination of eligibility or determination of ineligibility is final unless an appeal
is filed by the applicant or employer within 20 calendar days after sending. The determination
must contain a prominent statement indicating the consequences of not appealing.
Proceedings on the appeal are conducted in accordance with section 268.105.

(g) An issue of ineligibility required to be determined under this section includes any
question regarding the denial or allowing of unemployment benefits under this chapter
except for issues under section 268.07. An issue of ineligibility for purposes of this section
includes any question of effect on an employer under section 268.047.

ARTICLE 6

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
HOUSEKEEPING

Section 1.

Minnesota Statutes 2016, section 268.035, subdivision 20, is amended to read:


Subd. 20.

Noncovered employment.

"Noncovered employment" means:

(1) employment for the United States government or an instrumentality thereof, including
military service;

(2) employment for a state, other than Minnesota, or a political subdivision or
instrumentality thereof;

(3) employment for a foreign government;

(4) employment covered under the federal Railroad Unemployment Insurance Act;

(5) employment for a church or convention or association of churches, or a nonprofit
organization operated primarily for religious purposes that is operated, supervised, controlled,
or principally supported by a church or convention or association of churches;

(6) employment for an elementary or secondary school with a curriculum that includes
religious education that is operated by a church, a convention or association of churches,
or a nonprofit organization that is operated, supervised, controlled, or principally supported
by a church or convention or association of churches;

(6) (7) employment for Minnesota or a political subdivision, or a nonprofit organization,
of a duly ordained or licensed minister of a church in the exercise of a ministry or by a
member of a religious order in the exercise of duties required by the order;

(7) (8) employment for Minnesota or a political subdivision, or a nonprofit organization,
of an individual receiving rehabilitation of "sheltered" work in a facility conducted for the
purpose of carrying out a program of rehabilitation for individuals whose earning capacity
is impaired by age or physical or mental deficiency or injury or a program providing
"sheltered" work for individuals who because of an impaired physical or mental capacity
cannot be readily absorbed in the competitive labor market. This clause applies only to
services performed in a facility certified by the Rehabilitation Services Branch of the
department or in a day training or habilitation program licensed by the Department of Human
Services;

(8) (9) employment for Minnesota or a political subdivision, or a nonprofit organization,
of an individual receiving work relief or work training as part of an unemployment work
relief or work training program assisted or financed in whole or in part by any federal agency
or an agency of a state or political subdivision thereof. This clause does not apply to programs
that require unemployment benefit coverage for the participants;

(9) (10) employment for Minnesota or a political subdivision, as an elected official, a
member of a legislative body, or a member of the judiciary;

(10) (11) employment as a member of the Minnesota National Guard or Air National
Guard;

(11) (12) employment for Minnesota or a political subdivision, or instrumentality thereof,
of an individual serving on a temporary basis in case of fire, flood, tornado, or similar
emergency;

(12) (13) employment as an election official or election worker for Minnesota or a
political subdivision, if the compensation for that employment was less than $1,000 in a
calendar year;

(13) (14) employment for Minnesota that is a major policy-making or advisory position
in the unclassified service;

(14) (15) employment for Minnesota in an unclassified position established under section
43A.08, subdivision 1a;

(15) (16) employment for a political subdivision of Minnesota that is a nontenured major
policy making or advisory position;

(16) (17) domestic employment in a private household, local college club, or local chapter
of a college fraternity or sorority, if the wages paid in any calendar quarter in either the
current or prior calendar year to all individuals in domestic employment totaled less than
$1,000.

"Domestic employment" includes all service in the operation and maintenance of a
private household, for a local college club, or local chapter of a college fraternity or sorority
as distinguished from service as an employee in the pursuit of an employer's trade or business;

(17) (18) employment of an individual by a son, daughter, or spouse, and employment
of a child under the age of 18 by the child's father or mother;

(18) (19) employment of an inmate of a custodial or penal institution;

(19) (20) employment for a school, college, or university, by a student who is enrolled
and whose primary relation to the school, college, or university is as a student. This does
not include an individual whose primary relation to the school, college, or university is as
an employee who also takes courses;

(20) (21) employment of an individual who is enrolled as a student in a full-time program
at a nonprofit or public educational institution that maintains a regular faculty and curriculum
and has a regularly organized body of students in attendance at the place where its educational
activities are carried on, taken for credit at the institution, that combines academic instruction
with work experience, if the employment is an integral part of the program, and the institution
has so certified to the employer, except that this clause does not apply to employment in a
program established for or on behalf of an employer or group of employers;

(21) (22) employment of university, college, or professional school students in an
internship or other training program with the city of St. Paul or the city of Minneapolis
under Laws 1990, chapter 570, article 6, section 3;

(22) (23) employment for a hospital by a patient of the hospital. "Hospital" means an
institution that has been licensed by the Department of Health as a hospital;

(23) (24) employment as a student nurse for a hospital or a nurses' training school by
an individual who is enrolled and is regularly attending classes in an accredited nurses'
training school;

(24) (25) employment as an intern for a hospital by an individual who has completed a
four-year course in an accredited medical school;

(25) (26) employment as an insurance salesperson, by other than a corporate officer, if
all the wages from the employment is solely by way of commission. The word "insurance"
includes an annuity and an optional annuity;

(26) (27) employment as an officer of a township mutual insurance company or farmer's
mutual insurance company under chapter 67A;

(27) (28) employment of a corporate officer, if the officer directly or indirectly, including
through a subsidiary or holding company, owns 25 percent or more of the employer
corporation, and employment of a member of a limited liability company, if the member
directly or indirectly, including through a subsidiary or holding company, owns 25 percent
or more of the employer limited liability company;

(28) (29) employment as a real estate salesperson, other than a corporate officer, if all
the wages from the employment is solely by way of commission;

(29) (30) employment as a direct seller as defined in United States Code, title 26, section
3508;

(30) (31) employment of an individual under the age of 18 in the delivery or distribution
of newspapers or shopping news, not including delivery or distribution to any point for
subsequent delivery or distribution;

(31) (32) casual employment performed for an individual, other than domestic
employment under clause (16) (17), that does not promote or advance that employer's trade
or business;

(32) (33) employment in "agricultural employment" unless it is "covered agricultural
employment" under subdivision 11; or

(33) (34) if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period is covered employment; but if during
more than one-half of any pay period the employment was noncovered employment, then
all of the employment for the pay period is noncovered employment. "Pay period" means
a period of not more than a calendar month for which a payment or compensation is ordinarily
made to the employee by the employer.

Sec. 2.

Minnesota Statutes 2016, section 268.035, subdivision 21d, is amended to read:


Subd. 21d.

Staffing service.

A "staffing service" is an employer whose business involves
employing individuals directly for the purpose of furnishing temporary assignment workers
to clients support or supplement the workforce of the business that is a client of the staffing
service.

Sec. 3.

Minnesota Statutes 2016, section 268.051, subdivision 9, is amended to read:


Subd. 9.

Assessments, fees, and surcharges; treatment.

Any assessment, fee, or
surcharge imposed under the Minnesota Unemployment Insurance Law is treated the same
as, and considered as, a tax.
Any assessment, fee, or surcharge is subject to the same
collection procedures that apply to past due taxes.

Sec. 4.

Minnesota Statutes 2016, section 268.07, subdivision 3b, is amended to read:


Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for
unemployment benefits is effective the Sunday of the calendar week that the application
was filed. An application for unemployment benefits may be backdated one calendar week
before the Sunday of the week the application was actually filed if the applicant requests
the backdating within seven calendar days of the date the application is filed. An application
may be backdated only if the applicant was unemployed during the period of the backdating.
If an individual attempted to file an application for unemployment benefits, but was prevented
from filing an application by the department, the application is effective the Sunday of the
calendar week the individual first attempted to file an application.

(b) A benefit account established under subdivision 2 is effective the date the application
for unemployment benefits was effective.

(c) A benefit account, once established, may later be withdrawn only if:

(1) the applicant has not been paid any unemployment benefits on that benefit account;
and

(2) a new application for unemployment benefits is filed and a new benefit account is
established at the time of the withdrawal.

A benefit account may be withdrawn after the expiration of the benefit year, and the
new work requirements of subdivision 2, paragraph (b), do not apply if the applicant was
not paid any unemployment benefits on the benefit account that is being withdrawn.

A determination or amended determination of eligibility or ineligibility issued under
section 268.101, that was sent before the withdrawal of the benefit account, remains in
effect and is not voided by the withdrawal of the benefit account.

(d) An application for unemployment benefits is not allowed before the Sunday following
the expiration of the benefit year on a prior benefit account. Except as allowed under
paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks.
This paragraph applies to benefit accounts established under any federal law or the law of
any other state.

Sec. 5.

Minnesota Statutes 2016, section 268.085, subdivision 1, is amended to read:


Subdivision 1.

Eligibility conditions.

An applicant may be eligible to receive
unemployment benefits for any week if:

(1) the applicant has filed a continued request for unemployment benefits for that week
under section 268.0865;

(2) the week for which unemployment benefits are requested is in the applicant's benefit
year;

(3) the applicant was unemployed as defined in section 268.035, subdivision 26;

(4) the applicant was available for suitable employment as defined in subdivision 15.
The applicant's weekly unemployment benefit amount is reduced one-fifth for each day the
applicant is unavailable for suitable employment. This clause does not apply to an applicant
who is in reemployment assistance training, or each day the applicant is on jury duty or
serving as an election judge;

(5) the applicant was actively seeking suitable employment as defined in subdivision
16. This clause does not apply to an applicant who is in reemployment assistance training
or who was on jury duty throughout the week;

(6) the applicant has served a nonpayable period of one week that the applicant is
otherwise eligible for some amount of unemployment benefits. This clause does not apply
if the applicant would have been eligible for federal disaster unemployment assistance
because of a disaster in Minnesota, but for the applicant's establishment of a benefit account
under section 268.07; and

(7) the applicant has been participating in reemployment assistance services, such as
development of, and adherence to, a work search plan, if the applicant has been directed to
participate by the commissioner. This clause does not apply if the applicant has good cause
for failing to participate. "Good cause" is a reason that would have prevented a reasonable
person acting with due diligence from participating.

Sec. 6.

Minnesota Statutes 2016, section 268.085, subdivision 13a, is amended to read:


Subd. 13a.

Leave of absence.

(a) An applicant on a voluntary leave of absence is
ineligible for unemployment benefits for the duration of the leave of absence. An applicant
on an involuntary leave of absence is not ineligible under this subdivision.

A leave of absence is voluntary when work that the applicant can then perform is available
with the applicant's employer but the applicant chooses not to work. A medical leave of
absence is not presumed to be voluntary.

(b) A period of vacation requested by the applicant, paid or unpaid, is considered a
voluntary leave of absence. A vacation period assigned by an employer under: (1) a uniform
vacation shutdown; (2) a collective bargaining agreement; or (3) an established employer
policy, is considered an involuntary leave of absence.

(c) A leave of absence is a temporary stopping of work that has been approved by the
employer.
A voluntary leave of absence is not considered a quit and an involuntary leave
of absence is not considered a discharge from employment for purposes of section 268.095.

(d) An applicant who is on a paid leave of absence, whether the leave of absence is
voluntary or involuntary, is ineligible for unemployment benefits for the duration of the
leave.

(e) This subdivision applies to a leave of absence from a base period employer, an
employer during the period between the end of the base period and the effective date of the
benefit account, or an employer during the benefit year.

Sec. 7.

Minnesota Statutes 2016, section 268.105, subdivision 2, is amended to read:


Subd. 2.

Request for reconsideration.

(a) Any party, or the commissioner, may within
20 calendar days of the sending of the unemployment law judge's decision under subdivision
1a, file a request for reconsideration asking the judge to reconsider that decision.

(b) Upon a request for reconsideration having been filed, the chief unemployment law
judge must send a notice, by mail or electronic transmission, to all parties that a request for
reconsideration has been filed. The notice must inform the parties:

(1) that reconsideration is the procedure for the unemployment law judge to correct any
factual or legal mistake in the decision, or to order an additional hearing when appropriate;

(2) of the opportunity to provide comment on the request for reconsideration, and the
right under subdivision 5 to obtain a copy of any recorded testimony and exhibits offered
or received into evidence at the hearing;

(3) that providing specific comments as to a perceived factual or legal mistake in the
decision, or a perceived mistake in procedure during the hearing, will assist the
unemployment law judge in deciding the request for reconsideration;

(4) of the right to obtain any comments and submissions provided by any other party
regarding the request for reconsideration; and

(5) of the provisions of paragraph (c) regarding additional evidence.

This paragraph does not apply if paragraph (d) is applicable. Sending the notice does not
mean the unemployment law judge has decided the request for reconsideration was timely
filed.

(c) In deciding a request for reconsideration, the unemployment law judge must not
consider any evidence that was not submitted at the hearing, except for purposes of
determining whether to order an additional hearing.

The unemployment law judge must order an additional hearing if a party shows that
evidence which was not submitted at the hearing:

(1) would likely change the outcome of the decision and there was good cause for not
having previously submitted that evidence; or

(2) would show that the evidence that was submitted at the hearing was likely false and
that the likely false evidence had an effect on the outcome of the decision.

"Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from submitting the evidence.

(d) If the party who filed the request for reconsideration failed to participate in the
hearing, the unemployment law judge must issue an order setting aside the decision and
ordering an additional hearing if the party who failed to participate had good cause for
failing to do so. The party who failed to participate in the hearing must be informed of the
requirement to show good cause for failing to participate. If the unemployment law judge
determines that good cause for failure to participate has not been shown, the judge must
state that in the decision issued under paragraph (f).

Submission of a written statement at the hearing does not constitute participation for
purposes of this paragraph.

"Good cause" for purposes of this paragraph is a reason that would have prevented a
reasonable person acting with due diligence from participating in the hearing.

(e) A request for reconsideration must be decided by the unemployment law judge who
issued the decision under subdivision 1a unless that judge:

(1) is no longer employed by the department;

(2) is on an extended or indefinite leave; or

(3) has been removed from the proceedings by the chief unemployment law judge.

(f) If a request for reconsideration is timely filed, the unemployment law judge must
issue:

(1) a decision affirming the findings of fact, reasons for decision, and decision issued
under subdivision 1a;

(2) a decision modifying the findings of fact, reasons for decision, and decision under
subdivision 1a; or

(3) an order setting aside the findings of fact, reasons for decision, and decision issued
under subdivision 1a, and ordering an additional hearing.

The unemployment law judge must issue a decision dismissing the request for
reconsideration as untimely if the judge decides the request for reconsideration was not
filed within 20 calendar days after the sending of the decision under subdivision 1a.

The unemployment law judge must send to all parties, by mail or electronic transmission,
the decision or order issued under this subdivision. A decision affirming or modifying the
previously issued findings of fact, reasons for decision, and decision, or a decision dismissing
the request for reconsideration as untimely, is the final decision on the matter and is binding
on the parties unless judicial review is sought under subdivision 7.

ARTICLE 7

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
TECHNICAL

Section 1.

Minnesota Statutes 2016, section 268.031, subdivision 1, is amended to read:


Subdivision 1.

Standard of proof.

All issues of fact under the Minnesota Unemployment
Insurance Law are determined by a preponderance of the evidence.

Sec. 2.

Minnesota Statutes 2016, section 268.035, subdivision 15, is amended to read:


Subd. 15.

Employment.

(a) "Employment" means service performed by:

(1) an individual who is considered an employee under the common law of
employer-employee and not considered an independent contractor;

(2) an officer of a corporation;

(3) a member of a limited liability company who is considered an employee under the
common law of employer-employee; or

(4) product demonstrators in retail stores or other locations to aid in the sale of products.
The person that pays the wages is considered the employer; or .

(5) an individual who performs services for a person for compensation, as:

(i) an agent-driver or commission-driver engaged in distributing meat products, vegetable
products, fruit products, beverages, or laundry or dry cleaning services; or

(ii) a traveling or city salesperson, other than as an agent-driver or commission-driver,
engaged full-time in the solicitation on behalf of the person, of orders from wholesalers,
retailers, contractors, or operators of hotels, restaurants, or other similar establishments for
merchandise for resale or supplies for use in their business operations.

This clause applies only if the contract of service provides that substantially all of the
services are to be performed personally by the individual, and the services are part of a
continuing relationship with the person for whom the services are performed, and the
individual does not have a substantial investment in facilities used in connection with the
performance of the services, other than facilities for transportation.

(b) Employment does not include service as a juror.

(c) Construction industry employment is defined in subdivision 9a. Trucking and
messenger/courier industry employment is defined in subdivision 25b. Rules on determining
worker employment status are described under Minnesota Rules, chapter 3315.

Sec. 3.

Minnesota Statutes 2016, section 268.035, subdivision 23, is amended to read:


Subd. 23.

State's average annual and average weekly wage.

(a) On or before June 30
of each year, the commissioner must calculate, from wage detail reports under section
268.044,
the state's average annual wage and the state's average weekly wage in the following
manner:

(1) the sum of the total monthly covered employment reported by all employers for the
prior calendar year is divided by 12 to calculate the average monthly covered employment. ;

(2) the sum of the total wages paid for all covered employment reported by all employers
for the prior calendar year is divided by the average monthly covered employment to calculate
the state's average annual wage. ; and

(3) the state's average annual wage is divided by 52 to calculate the state's average weekly
wage.

(b) For purposes of calculating the amount of taxable wages under subdivision 24, the
state's average annual wage applies to the calendar year following the calculation.

(c) For purposes of calculating (1) the state's maximum weekly unemployment benefit
amount available on any benefit account under section 268.07, subdivision 2a, and (2) the
state's average weekly wage applies to the one-year period beginning the last Sunday in
October of the calendar year of the calculation.

(d) For purposes of calculating the wage credits necessary to establish a benefit account
under section 268.07, subdivision 2, the state's average weekly wage applies to the one-year
period beginning the last Sunday in October of the calendar year of the calculation.

Sec. 4.

Minnesota Statutes 2016, section 268.035, subdivision 30, is amended to read:


Subd. 30.

Wages paid.

(a) "Wages paid" means the amount of wages:

(1) that have been actually paid; or

(2) that have been credited to or set apart so that payment and disposition is under the
control of the employee.

(b) Wage payments delayed beyond the regularly scheduled pay date are considered
"wages paid" on the missed pay date. Back pay is considered "wages paid" on the date of
actual payment. Any wages earned but not paid with no scheduled date of payment is
considered
are "wages paid" on the last day of employment.

(c) Wages paid does not include wages earned but not paid except as provided for in
this subdivision.

Sec. 5.

Minnesota Statutes 2016, section 268.042, subdivision 1, is amended to read:


Subdivision 1.

Employer registration.

(a) Each employer must, upon or before the
submission of its first wage detail report under section 268.044, register with the
commissioner for a tax account or a reimbursable account, by electronic transmission in a
format prescribed by the commissioner. The employer must provide all required information
for registration, including the actual physical street and city address of the employer.

(b) Within 30 calendar days, each employer must notify the commissioner by electronic
transmission, in a format prescribed, of a change in legal entity, of the transfer, sale, or
acquisition of a business conducted in Minnesota, in whole or in part, if the transaction
results in the creation of a new or different employer or affects the establishment of employer
accounts, the assignment of tax rates, or the transfer of experience rating history.

(c) Except as provided in subdivision 3, any person that is or becomes an employer
subject to the Minnesota Unemployment Insurance Law with covered employment within
any calendar year is considered to be subject to this chapter the entire calendar year.

(d) Within 30 calendar days of the termination of business, an employer that has been
assigned a tax account or reimbursable account must notify the commissioner by electronic
transmission, in a format prescribed by the commissioner, if that employer does not intend
or expect to pay wages to any employees in covered employment during the current or the
next calendar year. Upon notification, the employer is no longer required to file wage detail
reports under section 268.044, subdivision 1, paragraph (d), and the employer's account
must be terminated.

(e) An employer that has its account terminated regains its previous tax account under
section 268.045, with the experience rating history of that account, if the employer again
commences business and again pays wages in covered employment if:

(1) less than 14 calendar quarters have elapsed in which no wages were paid for covered
employment;

(2) the experience rating history regained contains taxable wages; and

(3) the experience rating history has not been transferred to a successor under section
268.051, subdivision 4.

Sec. 6.

Minnesota Statutes 2016, section 268.051, subdivision 1, is amended to read:


Subdivision 1.

Payments.

(a) Unemployment insurance taxes and any special
assessments, fees, or surcharges
accrue and become payable by each employer for each
calendar year on the taxable wages that the employer paid to employees in covered
employment, except for:

(1) nonprofit organizations that elect to make reimbursements as provided in section
268.053; and

(2) the state of Minnesota and political subdivisions that make reimbursements, unless
they elect to pay taxes as provided in section 268.052.

Each employer must pay taxes quarterly, at the employer's assigned tax rate under
subdivision 6, on the taxable wages paid to each employee. The commissioner must compute
the tax due from the wage detail report required under section 268.044 and notify the
employer of the tax due. The taxes and any special assessments, fees, or surcharges must
be paid to the trust fund and must be received by the department on or before the last day
of the month following the end of the calendar quarter.

(b) If for any reason the wages on the wage detail report under section 268.044 are
adjusted for any quarter, the commissioner must recompute the taxes due for that quarter
and assess the employer for any amount due or credit the employer as appropriate.

Sec. 7.

Minnesota Statutes 2016, section 268.07, subdivision 2, is amended to read:


Subd. 2.

Benefit account requirements.

(a) Unless paragraph (b) applies, to establish
a benefit account an applicant must have total wage credits in the applicant's four quarter
base period
of at least 5.3 percent of the state's average annual wage rounded down to the
next lower $100.

(b) To establish a new benefit account following the expiration of the benefit year on a
prior benefit account, an applicant must have performed actual work in subsequent covered
employment and have been paid wages in one or more completed calendar quarters that
started after the effective date of the prior benefit account. The wages paid for that
employment must be at least enough to meet the requirements of paragraph (a). A benefit
account under this paragraph may not be established effective earlier than the Sunday
following the end of the most recent completed calendar quarter in which the requirements
of paragraph (a) were met. An applicant may not establish a second benefit account as a
result of one loss of employment.

Sec. 8.

Minnesota Statutes 2016, section 268.07, subdivision 3a, is amended to read:


Subd. 3a.

Right of appeal.

(a) A determination or amended determination of benefit
account is final unless an applicant or base period employer within 20 calendar days after
the sending of the determination or amended determination files an appeal. Every
determination or amended determination of benefit account must contain a prominent
statement indicating in clear language the consequences of not appealing. Proceedings on
the appeal are conducted in accordance with section 268.105.

(b) Any applicant or base period employer may appeal from a determination or amended
determination of benefit account on the issue of whether services performed constitute
employment, whether the employment is considered covered employment, and whether
money paid constitutes wages. Proceedings on the appeal are conducted in accordance with
section 268.105.

Sec. 9.

Minnesota Statutes 2016, section 268.085, subdivision 6, is amended to read:


Subd. 6.

Receipt of back pay.

(a) Back pay received by an applicant within 24 months
of the establishment of the benefit account with respect to any week must be deducted from
unemployment benefits paid for that week, and the applicant is considered to have been
overpaid the unemployment benefits under section 268.18, subdivision 1.

If the back pay is not paid with respect to a specific period, the back pay must be applied
to the period immediately following the last day of employment.

(b) If the back pay is reduced by the amount of unemployment benefits that have been
paid, the amount of back pay withheld and not paid the applicant must be:

(1) paid by the taxpaying or reimbursing employer to the trust fund within 30 calendar
days and is subject to the same collection procedures that apply to past due taxes and
reimbursements; and

(2) when received by the trust fund:

(i) an overpayment of unemployment benefits must be created which, under section
268.047, subdivision 2, clause (8), clears the employer's tax or reimbursable account of any
effect; and

(ii) the back pay must then be applied to the unemployment benefit overpayment,
eliminating any effect on the applicant.

(c) The following must result when applying paragraph (b):

(1) an employer neither overpays nor underpays the employer's proper portion of the
unemployment benefit costs; and

(2) the applicant is placed in the same position as never having been paid the
unemployment benefits.

(d) This subdivision applies to payments labeled front pay, settlement pay, and other
terms describing or dealing with wage loss.

Sec. 10.

Minnesota Statutes 2016, section 268.085, subdivision 7, is amended to read:


Subd. 7.

School employees; between terms denial.

(a) No Wage credits in any amount
from any employment with any an educational institution or institutions earned in any
capacity
may not be used for unemployment benefit purposes for any week during the period
between two successive academic years or terms if:

(1) the applicant had employment for any an educational institution or institutions in the
prior academic year or term; and

(2) there is a reasonable assurance that the applicant will have employment for any an
educational institution or institutions in the following academic year or term, unless that .

This paragraph applies to a vacation period or holiday recess if the applicant was
employed immediately before the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately following the vacation period
or holiday recess. This paragraph also applies to the period between two regular but not
successive terms if there is an agreement for that schedule between the applicant and the
educational institution.

This paragraph does not apply if the subsequent employment is substantially less
favorable than the employment of the prior academic year or term, or the employment prior
to the vacation period or holiday recess
.

(b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic
year or term, had an agreement for a definite period of employment between academic years
or terms in other than an instructional, research, or principal administrative capacity and
the educational institution or institutions failed to provide that employment.

(c) If unemployment benefits are denied to any applicant under paragraph (a) who was
employed in the prior academic year or term in other than an instructional, research, or
principal administrative capacity and who was not offered an opportunity to perform the
employment in the following academic year or term, the applicant is entitled to retroactive
unemployment benefits for each week during the period between academic years or terms
that the applicant filed a timely continued request for unemployment benefits, but
unemployment benefits were denied solely because of paragraph (a).

(d) An educational assistant is not considered to be in an instructional, research, or
principal administrative capacity.

(e) Paragraph (a) applies to any vacation period or holiday recess if the applicant was
employed immediately before the vacation period or holiday recess, and there is a reasonable
assurance that the applicant will be employed immediately following the vacation period
or holiday recess.

(f) (d) This subdivision applies to employment with an educational service agency if the
applicant performed the services at an educational institution or institutions. "Educational
service agency" means a governmental agency or entity established and operated exclusively
for the purpose of providing services to one or more educational institutions.

(e) This subdivision also applies to employment with Minnesota or , a political
subdivision, or a nonprofit organization, if the services are provided to or on behalf of an
educational institution or institutions.

(g) Paragraphs (a) and (e) apply (f) Paragraph (a) applies beginning the Sunday of the
week that there is a reasonable assurance of employment.

(h) (g) Employment and a reasonable assurance with multiple education institutions
must be aggregated for purposes of application of this subdivision.

(i) (h) If all of the applicant's employment with any educational institution or institutions
during the prior academic year or term consisted of on-call employment, and the applicant
has a reasonable assurance of any on-call employment with any educational institution or
institutions for the following academic year or term, it is not considered substantially less
favorable employment.

(j) Paragraph (a) also applies to the period between two regular but not successive terms.

(k) (i) A "reasonable assurance" may be written, oral, implied, or established by custom
or practice.

(l) (j) An "educational institution" is an a school, college, university, or other educational
entity operated by Minnesota or , a political subdivision or an instrumentality thereof, or an
educational
a nonprofit organization described in United States Code, title 26, section
501(c)(3) of the federal Internal Revenue Code, and exempt from income tax under section
501(a)
.

(k) An "instructional, research, or principal administrative capacity" does not include
an educational assistant.

Sec. 11.

Minnesota Statutes 2016, section 268.085, subdivision 12, is amended to read:


Subd. 12.

Aliens.

(a) An alien is ineligible for unemployment benefits for any week the
alien is not authorized to work in the United States under federal law. Information from the
Bureau of Citizenship and Immigration Services is considered conclusive, absent specific
evidence that the information was erroneous. Under the existing agreement between the
United States and Canada, this paragraph does not apply to an applicant who is a Canadian
citizen and has returned to and is living in Canada each week unemployment benefits are
requested.

(b) Unemployment benefits must not be paid on the basis of An alien's wage credits
earned by an alien may not be used for unemployment benefit purposes unless the alien
was:

(1) was lawfully admitted for permanent residence at the time of the employment, ;

(2) was lawfully present for the purposes of the employment, ; or

(3) was permanently residing in the United States under color of law at the time of the
employment.

(c) Any Information required of applicants applying for unemployment benefits to
determine eligibility because of their alien status must be required from of all applicants.

Sec. 12.

Minnesota Statutes 2016, section 268.0865, subdivision 5, is amended to read:


Subd. 5.

Good cause defined.

(a) "Good cause" for purposes of this section is a
compelling substantial reason that would have prevented a reasonable person acting with
due diligence from filing a continued request for unemployment benefits within the time
periods required.

(b) "Good cause" does not include forgetfulness, loss of the continued request form if
filing by mail, having returned to work, having an appeal pending, or inability to file a
continued request for unemployment benefits by the method designated if the applicant was
aware of the inability and did not make diligent effort to have the method of filing a continued
request changed by the commissioner. "Good cause" does not include having previously
made an attempt to file a continued request for unemployment benefits but where the
communication was not considered a continued request because the applicant failed to
submit all required information.

Sec. 13.

Minnesota Statutes 2016, section 268.095, subdivision 1, is amended to read:


Subdivision 1.

Quit.

An applicant who quit employment is ineligible for all
unemployment benefits according to subdivision 10 except when:

(1) the applicant quit the employment because of a good reason caused by the employer
as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment that provided
equal to or better terms and conditions of employment, but the applicant did not work long
enough at the second employment to have sufficient subsequent wages paid to satisfy the
period of ineligibility that would otherwise be imposed under subdivision 10 for quitting
the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the
employment and the employment was unsuitable;

(4) the employment was unsuitable and the applicant quit to enter reemployment
assistance training;

(5) the employment was part time and the applicant also had full-time employment in
the base period, from which full-time employment the applicant separated because of reasons
for which the applicant is would not be ineligible, and the wage credits from the full-time
employment are sufficient to meet the minimum requirements to establish a benefit account
under section 268.07;

(6) the applicant quit because the employer notified the applicant that the applicant was
going to be laid off because of lack of work within 30 calendar days. An applicant who quit
employment within 30 calendar days of a notified date of layoff because of lack of work is
ineligible for unemployment benefits through the end of the week that includes the scheduled
date of layoff;

(7) the applicant quit the employment (i) because the applicant's serious illness or injury
made it medically necessary that the applicant quit; or (ii) in order to provide necessary care
because of the illness, injury, or disability of an immediate family member of the applicant.
This exception only applies if the applicant informs the employer of the medical problem
and requests accommodation and no reasonable accommodation is made available.

If the applicant's serious illness is chemical dependency, this exception does not apply
if the applicant was previously diagnosed as chemically dependent or had treatment for
chemical dependency, and since that diagnosis or treatment has failed to make consistent
efforts to control the chemical dependency.

This exception raises an issue of the applicant's being available for suitable employment
under section 268.085, subdivision 1, that the commissioner must determine;

(8) the applicant's loss of child care for the applicant's minor child caused the applicant
to quit the employment, provided the applicant made reasonable effort to obtain other child
care and requested time off or other accommodation from the employer and no reasonable
accommodation is available.

This exception raises an issue of the applicant's being available for suitable employment
under section 268.085, subdivision 1, that the commissioner must determine;

(9) the applicant quit because domestic abuse, sexual assault, or stalking of the applicant
or an immediate family member of the applicant, necessitated the applicant's quitting the
employment.

For purposes of this subdivision:

(i) "domestic abuse" has the meaning given in section 518B.01;

(ii) "sexual assault" means an act that would constitute a violation of sections 609.342
to 609.3453 or 609.352; and

(iii) "stalking" means an act that would constitute a violation of section 609.749; or

(10) the applicant quit in order to relocate to accompany a spouse:

(1) (i) who is in the military; or

(2) (ii) whose job was transferred by the spouse's employer to a new location making it
impractical for the applicant to commute.

Sec. 14.

Minnesota Statutes 2016, section 268.095, subdivision 2, is amended to read:


Subd. 2.

Quit defined.

(a) A quit from employment occurs when the decision to end
the employment was, at the time the employment ended, the employee's.

(b) When determining if an applicant quit, the theory of a constructive quit does not
apply.

(c) An employee who has been notified that the employee will be discharged in the
future, who chooses to end the employment while employment in any capacity is still
available, has quit the employment.

(d) A notice of quitting in the future does not constitute a quit at the time the notice is
given.
An employee who seeks to withdraw a previously submitted notice of quitting in the
future
has quit the employment, as of the intended date of quitting, if the employer does not
agree that the notice may be withdrawn.

(e) An applicant has quit employment with a staffing service if, within five calendar
days after completion of a suitable job assignment from a staffing service, the applicant:

(1) fails without good cause to affirmatively request an additional suitable job assignment;

(2) refuses without good cause an additional suitable job assignment offered; or

(3) accepts employment with the client of the staffing service. Accepting employment
with the client of the staffing service meets the requirements of the exception to ineligibility
under subdivision 1, clause (2).

This paragraph applies only if, at the time of beginning of employment with the staffing
service, the applicant signed and was provided a copy of a separate document written in
clear and concise language that informed the applicant of this paragraph and that
unemployment benefits may be affected.

For purposes of this paragraph, "good cause" is a reason that would compel an average,
reasonable worker, who would otherwise want an additional suitable job assignment with
the staffing service (1) to fail to contact the staffing service, or (2) to refuse an offered
assignment.

Sec. 15.

Minnesota Statutes 2016, section 268.131, is amended to read:


268.131 RECIPROCAL UNEMPLOYMENT BENEFIT COMBINED WAGE
ARRANGEMENTS FOR WORK IN MULTIPLE STATES.

Subdivision 1.

Cooperation with other states on combining wages.

(a) In accordance
with the requirements of United States Code, title 26, section 3304(a)(9)(B), the Federal
Unemployment Tax Act, the commissioner must participate in reciprocal arrangements with
other states for the payment of unemployment benefits on the basis of combining an
applicant's wages from multiple states for the purposes of collecting unemployment benefits
from a single state. The reciprocal agreement must include provisions for applying the base
period of a single state law to a benefit account involving the combining of an applicant's
wages and employment and avoiding the duplicate use of wages by reason of such combining.

The commissioner may not enter into any reciprocal arrangement unless it contains provisions
for
only pay unemployment benefits from the trust fund under this section if:

(1) there are reimbursements to the trust fund, by the other state, for unemployment
benefits paid from the trust fund to applicants based upon wages and employment covered
under the laws of the other state. ; and

(b) The commissioner is authorized to pay unemployment benefits based upon an
applicant's wages paid in covered employment in another state only if
(2) the applicant is
combining Minnesota wage credits with the wages paid in covered employment from another
state or states.

(c) Section 268.23 does not apply to this subdivision.

(d) On any reciprocal arrangement, (b) Under this section, the wages paid an applicant
from employment covered under an unemployment insurance program of another state are
considered wages from covered employment for the purpose of determining the applicant's
rights to unemployment benefits under the Minnesota Unemployment Insurance Law.

Subd. 2.

Cooperation with foreign governments.

The commissioner is authorized to
enter into or cooperate in arrangements whereby facilities and services provided under the
Minnesota Unemployment Insurance Law and facilities and services provided under the
unemployment insurance program of any foreign government, may be used for the taking
of applications for unemployment benefits and continued requests and the payment of
unemployment benefits under this law or under a similar law of a foreign government.

Sec. 16.

Minnesota Statutes 2016, section 268.18, subdivision 2, is amended to read:


Subd. 2.

Overpayment because of fraud misrepresentation.

(a) An applicant has
committed fraud misrepresentation if the applicant is overpaid unemployment benefits by:

(1) knowingly misrepresenting, misstating, or failing to disclose any material fact; or

(2) making a false statement or representation without a good faith belief as to the
correctness of the statement or representation.

After the discovery of facts indicating fraud misrepresentation, the commissioner must
issue a determination of overpayment penalty assessing a penalty equal to 40 percent of the
amount overpaid. This penalty is in addition to penalties under section 268.182.

(b) Unless the applicant files an appeal within 20 calendar days after the sending of a
determination of overpayment penalty to the applicant by mail or electronic transmission,
the determination is final. Proceedings on the appeal are conducted in accordance with
section 268.105.

(c) A determination of overpayment penalty must state the methods of collection the
commissioner may use to recover the overpayment, penalty, and interest assessed. Money
received in repayment of overpaid unemployment benefits, penalties, and interest is first
applied to the benefits overpaid, then to the penalty amount due, then to any interest due.
62.5 percent of the payments made toward the penalty are credited to the contingent account
and 37.5 percent credited to the trust fund.

(d) The department is authorized to issue a determination of overpayment penalty under
this subdivision may be issued within 48 months of the establishment of the benefit account
upon which the unemployment benefits were obtained through fraud misrepresentation.

Sec. 17.

Minnesota Statutes 2016, section 268.18, subdivision 2b, is amended to read:


Subd. 2b.

Interest.

On any unemployment benefits fraudulently obtained by
misrepresentation
, and any penalty amounts assessed under subdivision 2, the commissioner
must assess interest at the rate of one percent per month on any amount that remains unpaid
beginning 30 calendar days after the date of a determination of overpayment penalty. A
determination of overpayment penalty must state that interest will be assessed. Interest is
assessed in the same manner as on employer debt under section 268.057, subdivision 5.
Interest payments collected under this subdivision are credited to the trust fund.

Sec. 18.

Minnesota Statutes 2016, section 268.18, subdivision 5, is amended to read:


Subd. 5.

Remedies.

(a) Any method undertaken to recover an overpayment of
unemployment benefits, including any penalties and interest, is not considered an election
of a method of recovery.

(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter
under section 176.361 is not considered an election of a remedy and does not prevent the
commissioner from determining any an applicant ineligible for unemployment benefits
overpaid under subdivision 1 or 2 or taking action under section 268.182.

Sec. 19.

Minnesota Statutes 2016, section 268.182, is amended to read:


268.182 APPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF
FACTS
FRAUD; CRIMINAL PENALTY.

Subdivision 1.

Criminal penalties.

Whoever An individual has committed fraud and is
guilty of theft and must be sentenced under section 609.52 if the individual
obtains, or
attempts to obtain, or aids or abets any other individual to obtain, by means of an intentional
false statement or representation, by intentional concealment of a material fact, or by
impersonation or other fraudulent means, unemployment benefits that the individual is not
entitled or unemployment benefits greater than the individual is entitled to under this chapter,
or under the federal law of any state or of the federal government, either personally or for
any other individual, is guilty of theft and must be sentenced under section 609.52
.

Subd. 2.

Administrative penalties.

(a) Any applicant who knowingly makes a false
statement or representation, who knowingly fails to disclose a material fact, or who
makes
a false statement or representation without a good faith belief as to the correctness of the
statement or representation, in order to obtain or in an attempt to obtain unemployment
benefits may be assessed, in addition to any other penalties, an administrative penalty of
being ineligible for unemployment benefits for 13 to 104 weeks.

(b) A determination of ineligibility setting out the weeks the applicant is ineligible must
be sent to the applicant by mail or electronic transmission. The department is authorized to
issue
a determination of ineligibility under this subdivision may be issued within 48 months
of the establishment of the benefit account upon which the unemployment benefits were
obtained, or attempted to be obtained. Unless an appeal is filed within 20 calendar days of
sending, the determination is final. Proceedings on the appeal are conducted in accordance
with section 268.105.

Sec. 20.

Minnesota Statutes 2016, section 268.184, is amended to read:


268.184 EMPLOYER MISCONDUCT; PENALTY MISREPRESENTATION AND
MISREPORTING; ADMINISTRATIVE PENALTIES
.

Subdivision 1.

Misrepresentation; administrative penalties.

(a) The commissioner
must penalize an employer if that employer or any employee, officer, or agent of that
employer, is in collusion with any applicant for the purpose of assisting the applicant to
receive unemployment benefits fraudulently. The penalty is $500 or the amount of
unemployment benefits determined to be overpaid, whichever is greater.

(b) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer: (1) made a false statement or representation knowing it
to be false; (2)
made a false statement or representation without a good faith belief as to
correctness of the statement or representation; (3) or knowingly failed to disclose a material
fact; or (4) made an offer of employment to an applicant when, in fact, the employer had
no employment available.
in order to:

(1) assist an applicant to receive unemployment benefits to which the applicant is not
entitled;

(2) prevent or reduce the payment of unemployment benefits to an applicant; or

(3) avoid or reduce any payment required from an employer under this chapter or section
116L.20.

The penalty is the greater of $500 or 50 percent of the following resulting from the employer's
action:

(i) the amount of any overpaid unemployment benefits to an applicant;

(ii) the amount of unemployment benefits not paid to an applicant that would otherwise
have been paid; or

(iii) the amount of any payment required from the employer under this chapter or section
116L.20 that was not paid.

(c) (b) The commissioner must penalize an employer if that employer failed or refused
to honor a subpoena issued under section 268.188. The penalty is $500 and any costs of
enforcing the subpoena, including attorney fees.

(d) (c) Penalties under this subdivision and under section 268.047, subdivision 4,
paragraph (b), are in addition to any other penalties and subject to the same collection
procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of
issuance of the determination of penalty and credited to the trust fund.

(e) (d) The determination of penalty is final unless the employer files an appeal within
20 calendar days after the sending of the determination of penalty to the employer by mail
or electronic transmission. Proceedings on the appeal are conducted in accordance with
section 268.105.

Subd. 1a.

Notification and misreporting penalties.

(a) If the commissioner finds that
any employer or agent of an employer failed to meet the notification requirements of section
268.051, subdivision 4, the employer must be assessed a penalty of $5,000 or two percent
of the first full quarterly payroll acquired, whichever is higher. Payroll is wages paid as
defined in section 268.035, subdivision 30. The penalty under this paragraph must be
canceled if the commissioner determines that the failure occurred because of ignorance or
inadvertence.

(b) If the commissioner finds that any individual advised an employer to violate the
employer's notification requirements under section 268.051, subdivision 4, the individual,
and that individual's employer, must each be assessed the penalty in paragraph (a).

(c) If the commissioner finds that any person or agent of a person violated the reporting
requirements of section 268.046, the person must be assessed a penalty of $5,000 or two
percent of the quarterly payroll reported in violation of section 268.046, whichever is higher.
Payroll is wages paid as defined in section 268.035, subdivision 30.

(d) Penalties under this subdivision are in addition to any other penalties and subject to
the same collection procedures that apply to past due amounts from an employer. Penalties
must be paid within 30 calendar days after sending of the determination of penalty and
credited to the trust fund.

(e) The determination of penalty is final unless the person assessed files an appeal within
20 calendar days after sending of the determination of penalty by mail or electronic
transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

Subd. 2.

Criminal penalties.

Any employer or any officer or agent of an employer or
any other individual who has committed fraud and is guilty of a crime, if in order to avoid
or reduce any payment required from an employer under this chapter or section 116L.20,
or to prevent or reduce the payment of unemployment benefits to an applicant
:

(1) makes a false statement or representation knowing it to be false;

(2) knowingly fails to disclose a material fact, including notification required under
section 268.051, subdivision 4; or

(3) knowingly advises or assists an employer in violating clause (1) or (2), to avoid or
reduce any payment required from an employer under this chapter or section 116L.20, or
to prevent or reduce the payment of unemployment benefits to any applicant,
.

The individual is guilty of a gross misdemeanor unless if the underpayment exceeds is $500,
in that case
or less. The individual is guilty of a felony if the underpayment exceeds $500.

Sec. 21.

Minnesota Statutes 2016, section 268.194, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

There is established as a special state trust fund, separate
and apart from all other public money or funds of this state, an unemployment insurance
trust fund, that is administered by the commissioner exclusively for the payment of
unemployment benefits. This trust fund consists of:

(1) all taxes collected;

(2) interest earned upon any money in the trust fund;

(3) reimbursements paid by nonprofit organizations, and the state and political
subdivisions;

(4) tax rate buydown payments under section 268.051, subdivision 7;

(5) any money received as a loan from the federal unemployment trust fund in accordance
with United States Code, title 42, section 1321, of the Social Security Act;

(6) any other money received under a reciprocal unemployment benefit combined wage
arrangement with the federal government or any other state;

(7) money received from the federal government for unemployment benefits paid under
a federal program;

(7) (8) money recovered on overpaid unemployment benefits;

(8) (9) all money credited to the account under this chapter;

(9) (10) all money credited to the account of Minnesota in the federal unemployment
trust fund under United States Code, title 42, section 1103, of the Social Security Act, also
known as the Reed Act; and

(10) (11) all money received for the trust fund from any other source.

Sec. 22.

Minnesota Statutes 2016, section 268.194, subdivision 4, is amended to read:


Subd. 4.

Reimbursements.

The commissioner is authorized to make to other state or
federal agencies and to receive from other state or federal agencies, reimbursements from
or to the trust fund, in accordance with reciprocal combined wage arrangements entered
into under section 268.131.

Money received under a reciprocal agreement combined wage arrangement must be
placed directly in the unemployment benefit payment account of the trust fund.

Sec. 23. REVISOR'S INSTRUCTION.

In the following sections of Minnesota Statutes, the revisor of statutes shall delete the
term "considered": Minnesota Statutes, sections 268.035, subdivisions 21c and 26; 268.07,
subdivision 1; 268.085, subdivisions 4a, 13c, 15, and 16; 268.095, subdivision 3; 268.101,
subdivision 6; and 268.105, subdivisions 3a and 7.

Sec. 24. REVISOR'S INSTRUCTION.

(a) In Minnesota Statutes, section 268.18, the revisor of statutes shall change the term
"fraud" to "misrepresentation" and "nonfraud" to "nonmisrepresentation."

(b) The revisor of statutes shall renumber Minnesota Statutes, section 268.184,
subdivision 2, as Minnesota Statutes, section 268.182, subdivision 1, paragraph (b).

(c) The revisor of statutes shall renumber Minnesota Statutes, section 268.182, subdivision
2, as Minnesota Statutes, section 268.183.

(d) The revisor of statutes shall make cross-reference changes needed arising out of the
renumbering in Minnesota Statutes, section 268.032, subdivision 20.

Sec. 25. REPEALER.

Laws 2005, chapter 112, article 1, section 14, is repealed.

ARTICLE 8

COMMERCE POLICY

Section 1.

Minnesota Statutes 2016, section 45.013, is amended to read:


45.013 POWER TO APPOINT STAFF.

The commissioner of commerce may appoint four one deputy commissioners
commissioner
, four assistant commissioners, and an assistant to the commissioner. Those
positions, as well as that of a confidential secretary, are unclassified. The commissioner
may appoint other employees necessary to carry out the duties and responsibilities entrusted
to the commissioner.

Sec. 2.

Minnesota Statutes 2016, section 45.0135, subdivision 6, is amended to read:


Subd. 6.

Insurance fraud prevention account.

The insurance fraud prevention account
is created in the state treasury. Money received from assessments under subdivision 7 and
transferred from the automobile theft prevention account in section sections 65B.84,
subdivision 1
, and 297I.11, subdivision 2, is deposited in the account. Money in this fund
is appropriated to the commissioner of commerce for the purposes specified in this section
and sections <