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Minnesota Legislature

Office of the Revisor of Statutes

SF 1937

Conference Committee Report - 90th Legislature (2017 - 2018) Posted on 05/09/2017 05:12pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 1937
1.2A bill for an act
1.3relating to state government; appropriating money for commerce, energy, labor
1.4and industry, and employment and economic development; making policy and
1.5technical changes; modifying fees; requiring reports; amending regulation of
1.6municipal electric utilities and rural electric cooperatives; modifying
1.7telecommunications provisions; modifying the solar energy standard; amending
1.8resource planning requirements; establishing a task force; establishing a youth
1.9skills training program; modifying water conditioning installation requirements;
1.10modifying job creation fund requirements for certain businesses; providing a
1.11onetime exception to restrictions on use of Minnesota investment fund repayments;
1.12creating the getting to work grant program;amending Minnesota Statutes 2016,
1.13sections 45.0135, subdivision 6; 46.131, subdivision 7, by adding a subdivision;
1.1453B.11, subdivision 1; 58.10, subdivision 1; 65B.84, subdivision 1; 80A.65,
1.15subdivision 2; 116J.395, subdivision 7; 116J.8731, subdivision 2, by adding a
1.16subdivision; 116J.8748, subdivisions 1, 3, 4, 6; 116L.17, subdivision 1; 116L.665;
1.17116M.14, subdivision 4; 116M.17, subdivision 4; 116M.18, subdivisions 1a, 4,
1.184a, 8; 175.45; 216B.164, subdivisions 5, 9, by adding a subdivision; 216B.1691,
1.19subdivision 2f; 216B.1694, subdivision 3; 216B.2422, subdivisions 2, 4; 216B.62,
1.20subdivision 3b; 216C.435, by adding a subdivision; 237.01, by adding subdivisions;
1.21237.295, by adding a subdivision; 239.101, subdivision 2; 297I.11, subdivision 2;
1.22326B.092, subdivision 7; 326B.153, subdivision 1; 326B.37, by adding
1.23subdivisions; 326B.435, subdivision 2; 326B.50, subdivision 3, by adding
1.24subdivisions; 326B.55, subdivisions 2, 4; 326B.89, subdivisions 1, 5; Laws 2015,
1.25First Special Session chapter 1, article 1, sections 2, subdivision 6; 5, subdivision
1.262; Laws 2016, chapter 189, article 7, section 2, subdivision 2; proposing coding
1.27for new law in Minnesota Statutes, chapters 175; 237; 326B; repealing Minnesota
1.28Statutes 2016, sections 46.131, subdivision 5; 326B.89, subdivision 14; Minnesota
1.29Rules, parts 4355.0100; 4355.0200; 4355.0300; 4355.0400; 4355.0500.
1.30May 8, 2017
1.31The Honorable Michelle L. Fischbach
1.32President of the Senate
1.33The Honorable Kurt L. Daudt
1.34Speaker of the House of Representatives
1.35We, the undersigned conferees for S.F. No. 1937 report that we have agreed upon the
1.36items in dispute and recommend as follows:
1.37That the House recede from its amendments and that S.F. No. 1937 be further amended
1.38as follows:
2.1Delete everything after the enacting clause and insert:

2.2"ARTICLE 1
2.3APPROPRIATIONS

2.4
Section 1. JOBS AND ECONOMIC DEVELOPMENT.
2.5    (a) The sums shown in the columns marked "Appropriations" are appropriated to the
2.6agencies and for the purposes specified in this article. The appropriations are from the
2.7general fund, or another named fund, and are available for the fiscal years indicated for
2.8each purpose. The figures "2018" and "2019" used in this article mean that the appropriations
2.9listed under them are available for the fiscal year ending June 30, 2018, or June 30, 2019,
2.10respectively. "The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The
2.11biennium" is fiscal years 2018 and 2019.
2.12    (b) If an appropriation in this article is enacted more than once in the 2017 legislative
2.13session, the appropriation must be given effect only once.
2.14
APPROPRIATIONS
2.15
Available for the Year
2.16
Ending June 30
2.17
2018
2019

2.18
2.19
Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
2.20
Subdivision 1.Total Appropriation
$
132,032,000
$
113,011,000
2.21
Appropriations by Fund
2.22
2018
2019
2.23
General
$96,365,000
$78,311,000
2.24
Remediation
$700,000
$700,000
2.25
2.26
Workforce
Development
$34,967,000
$34,000,000
2.27(a) The amounts that may be spent for each
2.28purpose are specified in the following
2.29subdivisions.
2.30(b) Notwithstanding Minnesota Statutes,
2.31section 16A.285, the commissioner of
2.32employment and economic development must
2.33not allow transfers of money appropriated in
3.1this section between divisions or programs of
3.2the Department of Employment and Economic
3.3Development.
3.4(c) Notwithstanding Minnesota Statutes,
3.5section 16B.37, subdivision 4, the
3.6commissioner of employment and economic
3.7development must not allow billing between
3.8divisions or programs within the Department
3.9of Employment and Economic Development,
3.10or otherwise use any "Internal Billing
3.11Expenditures."
3.12(d) Notwithstanding Minnesota Statutes,
3.13sections 16B.37, subdivision 4, and 471.59,
3.14except for work performed by MN.IT under
3.15Minnesota Statutes, chapter 16E, the
3.16commissioner of employment and economic
3.17development must not allow billing or
3.18transfers between other executive branch
3.19agencies or departments and the Department
3.20of Employment and Economic Development.
3.21
Subd. 2.Business and Community Development
$
42,536,000
$
39,435,000
3.22
Appropriations by Fund
3.23
General
$39,975,000
$36,924,000
3.24
Remediation
$700,000
$700,000
3.25
3.26
Workforce
Development
$1,861,000
$1,811,000
3.27(a) $4,195,000 each year is for the Minnesota
3.28job skills partnership program under
3.29Minnesota Statutes, sections 116L.01 to
3.30116L.17. If the appropriation for either year
3.31is insufficient, the appropriation for the other
3.32year is available. This appropriation is
3.33available until spent.
4.1(b) $750,000 each year is for grants to the
4.2Neighborhood Development Center for small
4.3business programs:
4.4(1) training, lending, and business services;
4.5(2) model outreach and training in greater
4.6Minnesota; and
4.7(3) development of new business incubators.
4.8This is a onetime appropriation.
4.9(c) $1,175,000 each year is for a grant to the
4.10Metropolitan Economic Development
4.11Association (MEDA) for statewide business
4.12development and assistance services, including
4.13services to entrepreneurs with businesses that
4.14have the potential to create job opportunities
4.15for unemployed and underemployed people,
4.16with an emphasis on minority-owned
4.17businesses. This is a onetime appropriation.
4.18(d) $125,000 each year is for a grant to the
4.19White Earth Nation for the White Earth Nation
4.20Integrated Business Development System to
4.21provide business assistance with workforce
4.22development, outreach, technical assistance,
4.23infrastructure and operational support,
4.24financing, and other business development
4.25activities. This is a onetime appropriation.
4.26(e)(1) $12,000,000 each year is for the
4.27Minnesota investment fund under Minnesota
4.28Statutes, section 116J.8731. Of this amount,
4.29the commissioner of employment and
4.30economic development may use up to three
4.31percent for administration and monitoring of
4.32the program. This appropriation is available
4.33until spent. In fiscal year 2020 and beyond,
4.34the base amount is $12,500,000.
5.1(2) Of the amount appropriated in fiscal year
5.22018, $4,000,000 is for a loan to construct and
5.3equip a wholesale electronic component
5.4distribution center investing a minimum of
5.5$200,000,000 and constructing a facility at
5.6least 700,000 square feet in size. Loan funds
5.7may be used for purchases of materials,
5.8supplies, and equipment for the construction
5.9of the facility and are available from July 1,
5.102017, to June 30, 2021. The commissioner of
5.11employment and economic development shall
5.12forgive the loan after verification that the
5.13project has satisfied performance goals and
5.14contractual obligations as required under
5.15Minnesota Statutes, section 116J.8731.
5.16(3) Of the amount appropriated in fiscal year
5.172018, $700,000 is for a loan to extend an
5.18effluent pipe that will deliver reclaimed water
5.19to an innovative waste-to-biofuel project
5.20investing a minimum of $150,000,000 and
5.21constructing a facility that is designed to
5.22process approximately 400,000 tons of waste
5.23annually. Loan funds are available until June
5.2430, 2021.
5.25(f) $7,500,000 each year is for the Minnesota
5.26job creation fund under Minnesota Statutes,
5.27section 116J.8748. Of this amount, the
5.28commissioner of employment and economic
5.29development may use up to three percent for
5.30administrative expenses. This appropriation
5.31is available until June 30, 2021. In fiscal year
5.322018 and beyond, the base amount is
5.33$8,000,000.
5.34(g) $1,647,000 each year is for contaminated
5.35site cleanup and development grants under
6.1Minnesota Statutes, sections 116J.551 to
6.2116J.558. This appropriation is available until
6.3spent. In fiscal year 2020 and beyond, the base
6.4amount is $1,772,000.
6.5(h) $12,000 each year is for a grant to the
6.6Upper Minnesota Film Office.
6.7(i) $163,000 each year is for the Minnesota
6.8Film and TV Board. The appropriation in each
6.9year is available only upon receipt by the
6.10board of $1 in matching contributions of
6.11money or in-kind contributions from nonstate
6.12sources for every $3 provided by this
6.13appropriation, except that each year up to
6.14$50,000 is available on July 1 even if the
6.15required matching contribution has not been
6.16received by that date.
6.17(j) $500,000 each year is from the general fund
6.18for a grant to the Minnesota Film and TV
6.19Board for the film production jobs program
6.20under Minnesota Statutes, section 116U.26.
6.21This appropriation is available until June 30,
6.222021.
6.23(k) $139,000 each year is for a grant to the
6.24Rural Policy and Development Center under
6.25Minnesota Statutes, section 116J.421.
6.26(l)(1) $1,300,000 each year is for the greater
6.27Minnesota business development public
6.28infrastructure grant program under Minnesota
6.29Statutes, section 116J.431. This appropriation
6.30is available until spent. If the appropriation
6.31for either year is insufficient, the appropriation
6.32for the other year is available. In fiscal year
6.332020 and beyond, the base amount is
6.34$2,545,000. Funds available under this
7.1paragraph may be used for site preparation of
7.2property owned and to be used by private
7.3entities.
7.4(2) Of the amounts appropriated, $1,600,000
7.5in fiscal year 2018 is for a grant to the city of
7.6Thief River Falls to support utility extensions,
7.7roads, and other public improvements related
7.8to the construction of a wholesale electronic
7.9component distribution center at least 700,000
7.10square feet in size and investing a minimum
7.11of $200,000,000. Notwithstanding Minnesota
7.12Statutes, section 116J.431, a local match is
7.13not required. Grant funds are available from
7.14July 1, 2017, to June 30, 2021.
7.15(m) $876,000 the first year and $500,000 the
7.16second year are for the Minnesota emerging
7.17entrepreneur loan program under Minnesota
7.18Statutes, section 116M.18. Funds available
7.19under this paragraph are for transfer into the
7.20emerging entrepreneur program special
7.21revenue fund account created under Minnesota
7.22Statutes, chapter 116M, and are available until
7.23spent. Of this amount, up to four percent is for
7.24administration and monitoring of the program.
7.25In fiscal year 2020 and beyond, the base
7.26amount is $1,000,000.
7.27(n) $875,000 each year is for a grant to
7.28Enterprise Minnesota, Inc. for the small
7.29business growth acceleration program under
7.30Minnesota Statutes, section 116O.115. This
7.31is a onetime appropriation.
7.32(o) $250,000 in fiscal year 2018 is for a grant
7.33to the Minnesota Design Center at the
7.34University of Minnesota for the greater
7.35Minnesota community design pilot project.
8.1(p) $275,000 in fiscal year 2018 is from the
8.2general fund to the commissioner of
8.3employment and economic development for
8.4a grant to Community and Economic
8.5Development Associates (CEDA) for an
8.6economic development study and analysis of
8.7the effects of current and projected economic
8.8growth in southeast Minnesota. CEDA shall
8.9report on the findings and recommendations
8.10of the study to the committees of the house of
8.11representatives and senate with jurisdiction
8.12over economic development and workforce
8.13issues by February 15, 2019. All results and
8.14information gathered from the study shall be
8.15made available for use by cities in southeast
8.16Minnesota by March 15, 2019. This
8.17appropriation is available until June 30, 2020.
8.18(q) $2,000,000 in fiscal year 2018 is for a
8.19grant to Pillsbury United Communities for
8.20construction and renovation of a building in
8.21north Minneapolis for use as the "North
8.22Market" grocery store and wellness center,
8.23focused on offering healthy food, increasing
8.24health care access, and providing job creation
8.25and economic opportunities in one place for
8.26children and families living in the area. To the
8.27extent possible, Pillsbury United Communities
8.28shall employ individuals who reside within a
8.29five mile radius of the grocery store and
8.30wellness center. This appropriation is not
8.31available until at least an equal amount of
8.32money is committed from nonstate sources.
8.33This appropriation is available until the project
8.34is completed or abandoned, subject to
8.35Minnesota Statutes, section 16A.642.
9.1(r) $1,425,000 each year is for the business
9.2development competitive grant program. Of
9.3this amount, up to five percent is for
9.4administration and monitoring of the business
9.5development competitive grant program. All
9.6grant awards shall be for two consecutive
9.7years. Grants shall be awarded in the first year.
9.8(s) $150,000 in fiscal year 2018 is for a grant
9.9to Mille Lacs County for the Lake Mille Lacs
9.10area economic relief program under Laws
9.112016, chapter 189, article 7, section 46.
9.12(t) $875,000 each year is for the host
9.13community economic development grant
9.14program established in Minnesota Statutes,
9.15section 116J.548.
9.16(u) $700,000 each year is from the remediation
9.17fund for contaminated site cleanup and
9.18development grants under Minnesota Statutes,
9.19sections 116J.551 to 116J.558. This
9.20appropriation is available until spent.
9.21(v) $161,000 each year is from the workforce
9.22development fund for transfer to the rural
9.23policy and development center fund account
9.24in the special revenue fund under Minnesota
9.25Statutes, section 116J.4221. This is a onetime
9.26transfer.
9.27(w) $300,000 each year is from the workforce
9.28development fund for a grant to Enterprise
9.29Minnesota, Inc. This is a onetime
9.30appropriation.
9.31(x) $50,000 in fiscal year 2018 is from the
9.32workforce development fund for a grant to
9.33Fighting Chance for behavioral intervention
9.34programs for at-risk youth.
10.1(y) $1,350,000 each year is from the
10.2workforce development fund for job training
10.3grants under Minnesota Statutes, section
10.4116L.42.
10.5
Subd. 3.Workforce Development
$
31,148,000
$
30,228,000
10.6
Appropriations by Fund
10.7
General
$5,889,000
$5,886,000
10.8
10.9
Workforce
Development
$25,259,000
$24,342,000
10.10(a) $500,000 each year is for the
10.11youth-at-work competitive grant program
10.12under Minnesota Statutes, section 116L.562.
10.13Of this amount, up to five percent is for
10.14administration and monitoring of the youth
10.15workforce development competitive grant
10.16program. All grant awards shall be for two
10.17consecutive years. Grants shall be awarded in
10.18the first year. In fiscal year 2020 and beyond,
10.19the base amount is $750,000.
10.20(b) $250,000 each year is for pilot programs
10.21in the workforce service areas to combine
10.22career and higher education advising.
10.23(c) $500,000 each year is for rural career
10.24counseling coordinator positions in the
10.25workforce service areas and for the purposes
10.26specified in Minnesota Statutes, section
10.27116L.667. The commissioner of employment
10.28and economic development, in consultation
10.29with local workforce investment boards and
10.30local elected officials in each of the service
10.31areas receiving funds, shall develop a method
10.32of distributing funds to provide equitable
10.33services across workforce service areas.
10.34(d) $1,000,000 each year is for a grant to the
10.35Construction Careers Foundation for the
11.1construction career pathway initiative to
11.2provide year-round educational and
11.3experiential learning opportunities for teens
11.4and young adults under the age of 21 that lead
11.5to careers in the construction industry. This is
11.6a onetime appropriation. Grant funds must be
11.7used to:
11.8(1) increase construction industry exposure
11.9activities for middle school and high school
11.10youth, parents, and counselors to reach a more
11.11diverse demographic and broader statewide
11.12audience. This requirement includes, but is
11.13not limited to, an expansion of programs to
11.14provide experience in different crafts to youth
11.15and young adults throughout the state;
11.16(2) increase the number of high schools in
11.17Minnesota offering construction classes during
11.18the academic year that utilize a multicraft
11.19curriculum;
11.20(3) increase the number of summer internship
11.21opportunities;
11.22(4) enhance activities to support graduating
11.23seniors in their efforts to obtain employment
11.24in the construction industry;
11.25(5) increase the number of young adults
11.26employed in the construction industry and
11.27ensure that they reflect Minnesota's diverse
11.28workforce; and
11.29(6) enhance an industrywide marketing
11.30campaign targeted to youth and young adults
11.31about the depth and breadth of careers within
11.32the construction industry.
11.33Programs and services supported by grant
11.34funds must give priority to individuals and
12.1groups that are economically disadvantaged
12.2or historically underrepresented in the
12.3construction industry, including but not limited
12.4to women, veterans, and members of minority
12.5and immigrant groups.
12.6(e) $500,000 each year is from the general
12.7fund for the Pathways to Prosperity adult
12.8workforce development competitive grant
12.9program. Of this amount, up to four percent
12.10is for administration and monitoring of the
12.11program. When awarding grants under this
12.12paragraph, the commissioner of employment
12.13and economic development may give
12.14preference to any previous grantee with
12.15demonstrated success in job training and
12.16placement for hard-to-train individuals. In
12.17fiscal year 2020 and beyond, the base amount
12.18for this program is $3,500,000.
12.19(f) $750,000 each year is for a competitive
12.20grant program to provide grants to
12.21organizations that provide support services for
12.22individuals, such as job training, employment
12.23preparation, internships, job assistance to
12.24fathers, financial literacy, academic and
12.25behavioral interventions for low-performing
12.26students, and youth intervention. Grants made
12.27under this section must focus on low-income
12.28communities, young adults from families with
12.29a history of intergenerational poverty, and
12.30communities of color. Of this amount, up to
12.31four percent is for administration and
12.32monitoring of the program. The base amount
12.33for this program is $1,000,000 in fiscal year
12.342020 and $1,000,000 in fiscal year 2021.
13.1(g) $500,000 each year is for the women and
13.2high-wage, high-demand, nontraditional jobs
13.3grant program under Minnesota Statutes,
13.4section 116L.99. Of this amount, up to five
13.5percent is for administration and monitoring
13.6of the program. In fiscal year 2020 and
13.7beyond, the base amount is $750,000.
13.8(h) $500,000 each year is for a competitive
13.9grant program for grants to organizations
13.10providing services to relieve economic
13.11disparities in the Southeast Asian community
13.12through workforce recruitment, development,
13.13job creation, assistance of smaller
13.14organizations to increase capacity, and
13.15outreach. Of this amount, up to five percent
13.16is for administration and monitoring of the
13.17program. In fiscal year 2020 and beyond, the
13.18base amount is $1,000,000.
13.19(i) $250,000 each year is for a grant to the
13.20American Indian Opportunities and
13.21Industrialization Center, in collaboration with
13.22the Northwest Indian Community
13.23Development Center, to reduce academic
13.24disparities for American Indian students and
13.25adults. This is a onetime appropriation. The
13.26grant funds may be used to provide:
13.27(1) student tutoring and testing support
13.28services;
13.29(2) training in information technology;
13.30(3) assistance in obtaining a GED;
13.31(4) remedial training leading to enrollment in
13.32a postsecondary higher education institution;
13.33(5) real-time work experience in information
13.34technology fields; and
14.1(6) contextualized adult basic education.
14.2After notification to the legislature, the
14.3commissioner may transfer this appropriation
14.4to the commissioner of education.
14.5(j) $1,039,000 in the first year and $1,036,000
14.6in the second year are for the adult workforce
14.7development competitive grant program. Of
14.8this amount, up to four percent is for
14.9administration and monitoring of the program.
14.10All grant awards shall be for two consecutive
14.11years. Grants shall be awarded in the first year.
14.12In fiscal year 2020 and beyond, the base
14.13amount is $1,039,000.
14.14(k) $100,000 each year is for the getting to
14.15work grant program. This is a onetime
14.16appropriation and is available until June 30,
14.172021.
14.18(l) $525,000 each year is from the workforce
14.19development fund for a grant to the YWCA
14.20of Minneapolis to provide economically
14.21challenged individuals the job skills training,
14.22career counseling, and job placement
14.23assistance necessary to secure a child
14.24development associate credential and to have
14.25a career path in early childhood education.
14.26This is a onetime appropriation.
14.27(m) $1,500,000 each year is from the
14.28workforce development fund for a grant to the
14.29FastTRAC-Minnesota Adult Careers Pathways
14.30program. Up to ten percent of this
14.31appropriation may be used to provide
14.32leadership, oversight, and technical assistance
14.33services for low-skilled, low-income adults.
15.1(n) $3,104,000 each year is for the adult
15.2workforce development competitive grant
15.3program. Of this amount, up to four percent
15.4is for administration and monitoring of the
15.5program. All grant awards shall be for two
15.6consecutive years. Grants shall be awarded in
15.7the first year.
15.8(o) $1,350,000 each year is from the
15.9workforce development fund for a grant to the
15.10Minnesota High Tech Association to support
15.11SciTechsperience, a program that supports
15.12science, technology, engineering, and math
15.13(STEM) internship opportunities for two- and
15.14four-year college students and graduate
15.15students in their field of study. The internship
15.16opportunities must match students with paid
15.17internships within STEM disciplines at small,
15.18for-profit companies located in Minnesota,
15.19having fewer than 250 employees worldwide.
15.20At least 300 students must be matched in the
15.21first year and at least 350 students must be
15.22matched in the second year. No more than 15
15.23percent of the hires may be graduate students.
15.24Selected hiring companies shall receive from
15.25the grant 50 percent of the wages paid to the
15.26intern, capped at $2,500 per intern. The
15.27program must work toward increasing the
15.28participation of women or other underserved
15.29populations. This is a onetime appropriation.
15.30(p) $450,000 each year is from the workforce
15.31development fund for grants to Minnesota
15.32Diversified Industries, Inc. to provide
15.33progressive development and employment
15.34opportunities for people with disabilities. This
15.35is a onetime appropriation.
16.1(q) $500,000 each year is from the workforce
16.2development fund for a grant to Resource, Inc.
16.3to provide low-income individuals career
16.4education and job skills training that are fully
16.5integrated with chemical and mental health
16.6services. This is a onetime appropriation.
16.7(r) $750,000 each year is from the workforce
16.8development fund for a grant to the Minnesota
16.9Alliance of Boys and Girls Clubs to administer
16.10a statewide project of youth job skills and
16.11career development. This project, which may
16.12have career guidance components including
16.13health and life skills, is designed to encourage,
16.14train, and assist youth in early access to
16.15education and job-seeking skills, work-based
16.16learning experience including career pathways
16.17in STEM learning, career exploration and
16.18matching, and first job placement through
16.19local community partnerships and on-site job
16.20opportunities. This grant requires a 25 percent
16.21match from nonstate resources. This is a
16.22onetime appropriation.
16.23(s) $215,000 each year is from the workforce
16.24development fund for grants to Big Brothers,
16.25Big Sisters of the Greater Twin Cities for
16.26workforce readiness, employment exploration,
16.27and skills development for youth ages 12 to
16.2821. The grant must serve youth in the Twin
16.29Cities, Central Minnesota, and Southern
16.30Minnesota Big Brothers, Big Sisters chapters.
16.31This is a onetime appropriation.
16.32(t) $250,000 each year is from the workforce
16.33development fund for a grant to YWCA St.
16.34Paul to provide job training services and
16.35workforce development programs and
17.1services, including job skills training and
17.2counseling. This is a onetime appropriation.
17.3(u) $1,000,000 each year is from the
17.4workforce development fund for a grant to
17.5EMERGE Community Development, in
17.6collaboration with community partners, for
17.7services targeting Minnesota communities
17.8with the highest concentrations of African and
17.9African-American joblessness, based on the
17.10most recent census tract data, to provide
17.11employment readiness training, credentialed
17.12training placement, job placement and
17.13retention services, supportive services for
17.14hard-to-employ individuals, and a general
17.15education development fast track and adult
17.16diploma program. This is a onetime
17.17appropriation.
17.18(v) $1,000,000 each year is from the
17.19workforce development fund for a grant to the
17.20Minneapolis Foundation for a strategic
17.21intervention program designed to target and
17.22connect program participants to meaningful,
17.23sustainable living-wage employment. This is
17.24a onetime appropriation.
17.25(w) $750,000 each year is from the workforce
17.26development fund for a grant to Latino
17.27Communities United in Service (CLUES) to
17.28expand culturally tailored programs that
17.29address employment and education skill gaps
17.30for working parents and underserved youth by
17.31providing new job skills training to stimulate
17.32higher wages for low-income people, family
17.33support systems designed to reduce
17.34intergenerational poverty, and youth
17.35programming to promote educational
18.1advancement and career pathways. At least
18.250 percent of this amount must be used for
18.3programming targeted at greater Minnesota.
18.4This is a onetime appropriation.
18.5(x) $600,000 each year is from the workforce
18.6development fund for a grant to Ujamaa Place
18.7for job training, employment preparation,
18.8internships, education, training in the
18.9construction trades, housing, and
18.10organizational capacity building. This is a
18.11onetime appropriation.
18.12(y) $1,297,000 in the first year and $800,000
18.13in the second year are from the workforce
18.14development fund for performance grants
18.15under Minnesota Statutes, section 116J.8747,
18.16to Twin Cities R!SE to provide training to
18.17hard-to-train individuals. Of the amounts
18.18appropriated, $497,000 in fiscal year 2018 is
18.19for a grant to Twin Cities R!SE, in
18.20collaboration with Metro Transit and Hennepin
18.21Technical College for the Metro Transit
18.22technician training program. This is a onetime
18.23appropriation and funds are available until
18.24June 30, 2020.
18.25(z) $230,000 in fiscal year 2018 is from the
18.26workforce development fund for a grant to the
18.27Bois Forte Tribal Employment Rights Office
18.28(TERO) for an American Indian workforce
18.29development training pilot project.
18.30(aa) $40,000 in fiscal year 2018 is from the
18.31workforce development fund for a grant to the
18.32Cook County Higher Education Board to
18.33provide educational programming and
18.34academic support services to remote regions
18.35in northeastern Minnesota. This appropriation
19.1is in addition to other funds previously
19.2appropriated to the board.
19.3(bb) $250,000 each year is from the workforce
19.4development fund for a grant to Bridges to
19.5Healthcare to provide career education,
19.6wraparound support services, and job skills
19.7training in high-demand health care fields to
19.8low-income parents, nonnative speakers of
19.9English, and other hard-to-train individuals,
19.10helping families build secure pathways out of
19.11poverty while also addressing worker
19.12shortages in one of Minnesota's most
19.13innovative industries. Funds may be used for
19.14program expenses, including, but not limited
19.15to, hiring instructors and navigators; space
19.16rental; and supportive services to help
19.17participants attend classes, including assistance
19.18with course fees, child care, transportation,
19.19and safe and stable housing. In addition, up to
19.20five percent of grant funds may be used for
19.21Bridges to Healthcare's administrative costs.
19.22This is a onetime appropriation and is
19.23available until June 30, 2020.
19.24(cc) $500,000 each year is from the workforce
19.25development fund for a grant to the Nonprofits
19.26Assistance Fund to provide capacity-building
19.27grants to small, culturally specific
19.28organizations that primarily serve historically
19.29underserved cultural communities. Grants may
19.30only be awarded to nonprofit organizations
19.31that have an annual organizational budget of
19.32less than $500,000 and are culturally specific
19.33organizations that primarily serve historically
19.34underserved cultural communities. Grant funds
19.35awarded must be used for:
20.1(1) organizational infrastructure improvement,
20.2including developing database management
20.3systems and financial systems, or other
20.4administrative needs that increase the
20.5organization's ability to access new funding
20.6sources;
20.7(2) organizational workforce development,
20.8including hiring culturally competent staff,
20.9training and skills development, and other
20.10methods of increasing staff capacity; or
20.11(3) creation or expansion of partnerships with
20.12existing organizations that have specialized
20.13expertise in order to increase the capacity of
20.14the grantee organization to improve services
20.15for the community. Of this amount, up to five
20.16percent may be used by the Nonprofits
20.17Assistance Fund for administration costs and
20.18providing technical assistance to potential
20.19grantees. This is a onetime appropriation.
20.20(dd) $4,050,000 each year is from the
20.21workforce development fund for the
20.22Minnesota youth program under Minnesota
20.23Statutes, sections 116L.56 and 116L.561.
20.24(ee) $1,000,000 each year is from the
20.25workforce development fund for the
20.26youthbuild program under Minnesota Statutes,
20.27sections 116L.361 to 116L.366.
20.28(ff) $3,348,000 each year is from the
20.29workforce development fund for the "Youth
20.30at Work" youth workforce development
20.31competitive grant program. Of this amount,
20.32up to five percent is for administration and
20.33monitoring of the youth workforce
20.34development competitive grant program. All
21.1grant awards shall be for two consecutive
21.2years. Grants shall be awarded in the first year.
21.3(gg) $500,000 each year is from the workforce
21.4development fund for the Opportunities
21.5Industrialization Center programs.
21.6(hh) $750,000 each year is from the workforce
21.7development fund for a grant to Summit
21.8Academy OIC to expand its contextualized
21.9GED and employment placement program.
21.10This is a onetime appropriation.
21.11(ii) $500,000 each year is from the workforce
21.12development fund for a grant to
21.13Goodwill-Easter Seals Minnesota and its
21.14partners. The grant shall be used to continue
21.15the FATHER Project in Rochester, Park
21.16Rapids, St. Cloud, Minneapolis, and the
21.17surrounding areas to assist fathers in
21.18overcoming barriers that prevent fathers from
21.19supporting their children economically and
21.20emotionally. This is a onetime appropriation.
21.21(jj) $150,000 each year is from the workforce
21.22development fund for displaced homemaker
21.23programs under Minnesota Statutes, section
21.24116L.96. The commissioner, through the adult
21.25career pathways program, shall distribute the
21.26funds to existing nonprofit and state displaced
21.27homemaker programs. This is a onetime
21.28appropriation.
21.29(kk)(1) $150,000 in fiscal year 2018 is from
21.30the workforce development fund for a grant
21.31to Anoka County to develop and implement
21.32a pilot program to increase competitive
21.33employment opportunities for transition-age
21.34youth ages 18 to 21.
22.1(2) The competitive employment for
22.2transition-age youth pilot program shall
22.3include career guidance components, including
22.4health and life skills, to encourage, train, and
22.5assist transition-age youth in job-seeking
22.6skills, workplace orientation, and job site
22.7knowledge.
22.8(3) In operating the pilot program, Anoka
22.9County shall collaborate with schools,
22.10disability providers, jobs and training
22.11organizations, vocational rehabilitation
22.12providers, and employers to build upon
22.13opportunities and services, to prepare
22.14transition-age youth for competitive
22.15employment, and to enhance employer
22.16connections that lead to employment for the
22.17individuals served.
22.18(4) Grant funds may be used to create an
22.19on-the-job training incentive to encourage
22.20employers to hire and train qualifying
22.21individuals. A participating employer may
22.22receive up to 50 percent of the wages paid to
22.23the employee as a cost reimbursement for
22.24on-the-job training provided.
22.25(ll) $500,000 each year is from the workforce
22.26development fund for rural career counseling
22.27coordinator positions in the workforce service
22.28areas and for the purposes specified in
22.29Minnesota Statutes, section 116L.667. The
22.30commissioner of employment and economic
22.31development, in consultation with local
22.32workforce investment boards and local elected
22.33officials in each of the service areas receiving
22.34funds, shall develop a method of distributing
23.1funds to provide equitable services across
23.2workforce service areas.
23.3
Subd. 4.General Support Services
$
3,190,000
$
3,190,000
23.4
Appropriations by Fund
23.5
General Fund
$3,173,000
$3,173,000
23.6
23.7
Workforce
Development
$17,000
$17,000
23.8(a) $1,269,000 each year is for transfer to the
23.9Minnesota Housing Finance Agency for
23.10operating the Olmstead Compliance Office.
23.11(b) $500,000 each year is for a statewide
23.12capacity-building grant program. The
23.13commissioner of employment and economic
23.14development shall, through a request for
23.15proposal process, select a nonprofit
23.16organization to administer the
23.17capacity-building grant program. The selected
23.18organization must have demonstrated
23.19experience in providing financial and technical
23.20assistance to nonprofit organizations statewide.
23.21The selected organization shall provide
23.22financial assistance in the form of subgrants
23.23and technical assistance to small to
23.24medium-sized nonprofit organizations
23.25offering, or seeking to offer, workforce or
23.26economic development programming that
23.27addresses economic disparities in underserved
23.28cultural communities. This assistance can be
23.29provided in-house or in partnership with other
23.30organizations depending on need. The
23.31nonprofit organization selected to administer
23.32the grant program shall report to the
23.33commissioner by February 1 each year
23.34regarding assistance provided, including the
23.35demographic and geographic distribution of
23.36the grant awards, services, and outcomes. By
24.1April 1 each year, the commissioner shall
24.2report the information submitted by the
24.3nonprofit to the legislative committees having
24.4jurisdiction over economic development
24.5issues. Of this amount, one percent is for the
24.6commissioner to conduct the request for
24.7proposal process and monitor the selected
24.8organization. The nonprofit selected to
24.9administer the grant program may use up to
24.10five percent of the grant funds for
24.11administration costs and providing technical
24.12assistance to potential subgrantees.
24.13
Subd. 5.Minnesota Trade Office
$
2,292,000
$
2,292,000
24.14(a) $300,000 each year is for the STEP grants
24.15in Minnesota Statutes, section 116J.979.
24.16(b) $180,000 each year is for the Invest
24.17Minnesota marketing initiative in Minnesota
24.18Statutes, section 116J.9781.
24.19(c) $270,000 each year is for the Minnesota
24.20Trade Offices under Minnesota Statutes,
24.21section 116J.978.
24.22(d) $50,000 each year is for the Trade Policy
24.23Advisory Council under Minnesota Statutes,
24.24section 116J.9661.
24.25
Subd. 6.Vocational Rehabilitation
$
31,191,000
$
31,191,000
24.26
Appropriations by Fund
24.27
General
$23,361,000
$23,361,000
24.28
24.29
Workforce
Development
$7,830,000
$7,830,000
24.30(a) $10,800,000 each year is for the state's
24.31vocational rehabilitation program under
24.32Minnesota Statutes, chapter 268A.
25.1(b) $3,011,000 each year is for grants to
25.2centers for independent living under
25.3Minnesota Statutes, section 268A.11.
25.4(c) $6,995,000 each year is from the general
25.5fund and $6,830,000 each year is from the
25.6workforce development fund for extended
25.7employment services for persons with severe
25.8disabilities under Minnesota Statutes, section
25.9268A.15. Of the general fund amount
25.10appropriated, $500,000 each year is for rate
25.11increases to providers of extended employment
25.12services for persons with severe disabilities
25.13under Minnesota Statutes, section 268A.15.
25.14In fiscal year 2020 and beyond, the general
25.15fund base amount is $8,995,000. Of the base
25.16amounts in fiscal years 2020 and 2021,
25.17$1,625,000 in fiscal year 2020 and $1,625,000
25.18in fiscal year 2021 are for rate increases to
25.19providers of extended employment services
25.20for persons with severe disabilities under
25.21Minnesota Statutes, section 268A.15.
25.22(d) $2,555,000 each year is for grants to
25.23programs that provide employment support
25.24services to persons with mental illness under
25.25Minnesota Statutes, sections 268A.13 and
25.26268A.14.
25.27(e) $1,000,000 each year is from the workforce
25.28development fund for grants under Minnesota
25.29Statutes, section 268A.16, for employment
25.30services for persons, including transition-age
25.31youth, who are deaf, deafblind, or
25.32hard-of-hearing. If the amount in the first year
25.33is insufficient, the amount in the second year
25.34is available in the first year.
25.35
Subd. 7.Services for the Blind
$
6,425,000
$
6,425,000
26.1
Subd. 8.Broadband Development
$
15,250,000
$
250,000
26.2(a) $15,000,000 in fiscal year 2018 is for
26.3deposit in the border-to-border broadband fund
26.4account in the special revenue fund established
26.5under Minnesota Statutes, section 116J.396.
26.6(b) $250,000 each year is for the Broadband
26.7Development Office.
26.8
Subd. 9.Reporting
26.9(a) An entity receiving a direct appropriation
26.10in this article that received a direct
26.11appropriation in Laws 2016, chapter 189,
26.12article 12, is subject to the requirements for
26.13grants to individually specified recipients
26.14under Laws 2016, chapter 189, article 12,
26.15section 11.
26.16(b) Any recipient of a direct appropriation
26.17from the workforce development fund for
26.18adult workforce-related programs under
26.19subdivision 3 not subject to the requirements
26.20of paragraph (a) is subject to the reporting
26.21requirements under Minnesota Statutes,
26.22section 116L.98.
26.23
Subd. 10.Competitive Grant Limitations
26.24An organization that receives a direct
26.25appropriation under this section is not eligible
26.26to participate in competitive grant programs
26.27funded under this section, either directly or by
26.28receiving funds from a third party that received
26.29a competitive grant under this section, during
26.30the fiscal years in which the direct
26.31appropriations are received.

26.32
Sec. 3. HOUSING FINANCE AGENCY
26.33
Subdivision 1.Total Appropriation
$
52,798,000
$
52,798,000
27.1The amounts that may be spent for each
27.2purpose are specified in the following
27.3subdivisions.
27.4Unless otherwise specified, this appropriation
27.5is for transfer to the housing development fund
27.6for the programs specified in this section.
27.7Except as otherwise indicated, this transfer is
27.8part of the agency's permanent budget base.
27.9
Subd. 2.Challenge Program
14,925,000
14,925,000
27.10(a)(1) This appropriation is for the economic
27.11development and housing challenge program
27.12under Minnesota Statutes, section 462A.33.
27.13The agency must continue to strengthen its
27.14efforts to address the disparity rate between
27.15white households and indigenous American
27.16Indians and communities of color. Of this
27.17amount, $1,208,000 each year shall be made
27.18available during the first 11 months of the
27.19fiscal year exclusively for housing projects
27.20for American Indians. Any funds not
27.21committed to housing projects for American
27.22Indians in the first 11 months of each fiscal
27.23year shall be available for any eligible activity
27.24under Minnesota Statutes, section 462A.33.
27.25(2) The appropriation may be used to finance
27.26the construction or replacement of real
27.27property that is located in Melrose affected by
27.28the fire on September 8, 2016.
27.29(3) The commissioner may allocate a portion
27.30of the appropriation for the economic
27.31development and housing challenge program
27.32for assistance in the area included in DR-4290,
27.33as provided in Minnesota Statutes, section
27.3412A.09. The maximum loan amount per
27.35housing structure is $20,000. Within the limits
28.1of available appropriations, the agency may
28.2increase the maximum amount if the cost of
28.3repair or replacement of the residential
28.4property exceeds the total of the maximum
28.5loan amount and any assistance available from
28.6FEMA, other federal government agencies,
28.7including the Small Business Administration,
28.8and private insurance and flood insurance
28.9benefits.
28.10(b) $2,000,000 each year is for the purposes
28.11of the workforce housing development
28.12program under Minnesota Statutes, section
28.13462A.39. Notwithstanding article 11, section
28.149, the commissioner of housing finance may
28.15hire staff sufficient for the purposes of this
28.16paragraph.
28.17
Subd. 3.Housing Trust Fund
11,646,000
11,646,000
28.18This appropriation is for deposit in the housing
28.19fund account created under Minnesota
28.20Statutes, section 462A.201, and may be used
28.21for the purposes provided in that section.
28.22
Subd. 4.Rental Assistance for Mentally Ill
4,088,000
4,088,000
28.23This appropriation is for the rental housing
28.24assistance program for persons with a mental
28.25illness or families with an adult member with
28.26a mental illness, under Minnesota Statutes,
28.27section 462A.2097. Among comparable
28.28proposals, the agency shall prioritize those
28.29proposals that target, in part, eligible persons
28.30who desire to move to more integrated,
28.31community-based settings.
28.32
Subd. 5.Family Homeless Prevention
8,519,000
8,519,000
29.1This appropriation is for the family homeless
29.2prevention and assistance programs under
29.3Minnesota Statutes, section 462A.204.
29.4
Subd. 6.Home Ownership Assistance Fund
885,000
885,000
29.5This appropriation is for the home ownership
29.6assistance program under Minnesota Statutes,
29.7section 462A.21, subdivision 8. The agency
29.8shall continue to strengthen its efforts to
29.9address the disparity gap in the
29.10homeownership rate between white
29.11households and indigenous American Indians
29.12and communities of color.
29.13
Subd. 7.Affordable Rental Investment Fund
4,218,000
4,218,000
29.14(a) This appropriation is for the affordable
29.15rental investment fund program under
29.16Minnesota Statutes, section 462A.21,
29.17subdivision 8b, to finance the acquisition,
29.18rehabilitation, and debt restructuring of
29.19federally assisted rental property and for
29.20making equity take-out loans under Minnesota
29.21Statutes, section 462A.05, subdivision 39.
29.22(b) The owner of federally assisted rental
29.23property must agree to participate in the
29.24applicable federally assisted housing program
29.25and to extend any existing low-income
29.26affordability restrictions on the housing for
29.27the maximum term permitted. The owner must
29.28also enter into an agreement that gives local
29.29units of government, housing and
29.30redevelopment authorities, and nonprofit
29.31housing organizations the right of first refusal
29.32if the rental property is offered for sale.
29.33Priority must be given among comparable
29.34federally assisted rental properties to
29.35properties with the longest remaining term
30.1under an agreement for federal assistance.
30.2Priority must also be given among comparable
30.3rental housing developments to developments
30.4that are or will be owned by local government
30.5units, a housing and redevelopment authority,
30.6or a nonprofit housing organization.
30.7(c) The appropriation also may be used to
30.8finance the acquisition, rehabilitation, and debt
30.9restructuring of existing supportive housing
30.10properties. For purposes of this subdivision,
30.11"supportive housing" means affordable rental
30.12housing with links to services necessary for
30.13individuals, youth, and families with children
30.14to maintain housing stability.
30.15
Subd. 8.Housing Rehabilitation
6,515,000
6,515,000
30.16This appropriation is for the housing
30.17rehabilitation program under Minnesota
30.18Statutes, section 462A.05, subdivision 14. Of
30.19this amount, $2,772,000 each year is for the
30.20rehabilitation of owner-occupied housing,
30.21$3,743,000 each year is for the rehabilitation
30.22of eligible rental housing. In administering a
30.23rehabilitation program for rental housing, the
30.24agency may apply the processes and priorities
30.25adopted for administration of the economic
30.26development and housing challenge program
30.27under Minnesota Statutes, section 462A.33.
30.28
30.29
Subd. 9.Homeownership Education, Counseling,
and Training
857,000
857,000
30.30This appropriation is for the homeownership
30.31education, counseling, and training program
30.32under Minnesota Statutes, section 462A.209.
30.33Priority may be given to funding programs
30.34that are aimed at culturally specific groups
31.1who are providing services to members of their
31.2communities.
31.3
Subd. 10.Capacity Building Grants
645,000
645,000
31.4This appropriation is for nonprofit capacity
31.5building grants under Minnesota Statutes,
31.6section 462A.21, subdivision 3b. Of this
31.7amount, $125,000 each year is for support of
31.8the Homeless Management Information
31.9System (HMIS).
31.10
Subd. 11.Build Wealth MN
500,000
500,000
31.11This appropriation is for grants to Build
31.12Wealth MN to provide a family stabilization
31.13plan program including program outreach,
31.14financial literacy education, and budget and
31.15debt counseling.

31.16
31.17
Sec. 4. DEPARTMENT OF LABOR AND
INDUSTRY
31.18
Subdivision 1.Total Appropriation
$
28,309,000
$
28,609,000
31.19
Appropriations by Fund
31.20
2018
2019
31.21
General
1,327,000
1,327,000
31.22
31.23
Workers'
Compensation
24,975,000
24,975,000
31.24
31.25
Workforce
Development
2,007,000
2,307,000
31.26(a) The amounts that may be spent for each
31.27purpose are specified in the following
31.28subdivisions.
31.29(b) Notwithstanding Minnesota Statutes,
31.30section 16A.285, the commissioner of labor
31.31and industry must not allow transfers of
31.32money appropriated in this section between
31.33divisions or programs of the Department of
31.34Labor and Industry.
32.1(c) Notwithstanding Minnesota Statutes,
32.2section 16B.37, subdivision 4, the
32.3commissioner of labor and industry must not
32.4allow billing between divisions or programs
32.5of amounts appropriated within the
32.6Department of Labor and Industry, or
32.7otherwise use any "Internal Billing
32.8Expenditures" of amounts appropriated.
32.9(d) Notwithstanding Minnesota Statutes,
32.10sections 16B.37, subdivision 4, and 471.59,
32.11except for work performed by MN.IT under
32.12Minnesota Statutes, chapter 16E, the
32.13commissioner of labor and industry must not
32.14allow billing or transfers between other
32.15executive branch agencies or departments and
32.16the Department of Labor and Industry.
32.17
Subd. 2.Workers' Compensation
14,782,000
14,782,000
32.18(a) This appropriation is from the workers'
32.19compensation fund.
32.20(b)(1) $3,000,000 each year is for workers'
32.21compensation system upgrades. This amount
32.22is available until June 30, 2021. This is a
32.23onetime appropriation.
32.24(2) This appropriation includes funds for
32.25information technology project services and
32.26support subject to the provisions of Minnesota
32.27Statutes, section 16E.0466. Any ongoing
32.28information technology costs must be
32.29incorporated into the service level agreement
32.30and must be paid to the Office of MN.IT
32.31Services by the commissioner of labor and
32.32industry under the rates and mechanism
32.33specified in that agreement.
32.34
Subd. 3.Labor Standards and Apprenticeship
3,134,000
3,134,000
33.1
Appropriations by Fund
33.2
General
1,327,000
1,327,000
33.3
33.4
Workforce
Development
1,807,000
1,807,000
33.5(a) $125,000 each year is from the general
33.6fund for wage theft prevention under the
33.7division of labor standards.
33.8(b) $100,000 each year is from the workforce
33.9development fund for labor education and
33.10advancement program grants under Minnesota
33.11Statutes, section 178.11, to expand and
33.12promote registered apprenticeship training for
33.13minorities and women.
33.14(c) $300,000 each year is from the workforce
33.15development fund for the PIPELINE program.
33.16(d) $200,000 each year is from the workforce
33.17development fund for grants to the
33.18Construction Careers Foundation for the
33.19Helmets to Hardhats Minnesota initiative.
33.20Grant funds must be used to recruit, retain,
33.21assist, and support National Guard, reserve,
33.22and active duty military members' and
33.23veterans' participation into apprenticeship
33.24programs registered with the Department of
33.25Labor and Industry and connect them with
33.26career training and employment in the building
33.27and construction industry. The recruitment,
33.28selection, employment, and training must be
33.29without discrimination due to race, color,
33.30creed, religion, national origin, sex, sexual
33.31orientation, marital status, physical or mental
33.32disability, receipt of public assistance, or age.
33.33This is a onetime appropriation.
33.34(e) $1,029,000 each year is from the workforce
33.35development fund for the apprenticeship
34.1program under Minnesota Statutes, chapter
34.2178.
34.3(f) $150,000 each year is from the workforce
34.4development fund for prevailing wage
34.5enforcement.
34.6
Subd. 4.Workplace Safety
4,154,000
4,154,000
34.7This appropriation is from the workers'
34.8compensation fund.
34.9
Subd. 5.General Support
6,239,000
6,539,000
34.10
Appropriations by Fund
34.11
34.12
Workforce
Development Fund
200,000
500,000
34.13
34.14
Workers'
Compensation
6,039,000
6,039,000
34.15(a) Except as provided in paragraphs (b) and
34.16(c), this appropriation is from the workers'
34.17compensation fund.
34.18(b) $200,000 in fiscal year 2018 is from the
34.19workforce development fund for the
34.20commissioner of labor and industry to convene
34.21and collaborate with stakeholders as provided
34.22under Minnesota Statutes, section 175.46,
34.23subdivision 3, and to develop youth skills
34.24training competencies for approved
34.25occupations. This is a onetime appropriation.
34.26(c) $500,000 in fiscal year 2019 is from the
34.27workforce development fund to administer the
34.28youth skills training program under Minnesota
34.29Statutes, section 175.46. The commissioner
34.30shall award up to five grants each year to local
34.31partnerships located throughout the state, not
34.32to exceed $100,000 per local partnership grant.
34.33The commissioner may use a portion of this
34.34appropriation for administration of the grant
34.35program. The base amount for this program
35.1is $500,000 each year beginning in fiscal year
35.22020.

35.3
Sec. 5. BUREAU OF MEDIATION SERVICES
$
2,247,000
$
2,247,000
35.4(a) Notwithstanding Minnesota Statutes,
35.5section 16A.285, the commissioner of
35.6mediation services must not allow transfers
35.7of money appropriated in this section between
35.8divisions or programs of the Bureau of
35.9Mediation Services.
35.10(b) Notwithstanding Minnesota Statutes,
35.11section 16B.37, subdivision 4, the
35.12commissioner of mediation services must not
35.13allow billing between divisions or programs
35.14within the Bureau of Mediation Services, or
35.15otherwise use any "Internal Billing
35.16Expenditures."
35.17(c) Notwithstanding Minnesota Statutes,
35.18section 16B.37, subdivision 4, and Minnesota
35.19Statutes, section 471.59, except for work
35.20performed by MN.IT under Minnesota
35.21Statutes, chapter 16E, the commissioner of
35.22mediation services must not allow billing or
35.23transfers between other executive branch
35.24agencies or departments and the Bureau of
35.25Mediation Services.
35.26(d) $394,000 each year is for the Office of
35.27Collaboration and Dispute Resolution under
35.28Minnesota Statutes, section 179.90.
35.29(e) $68,000 each year is from the general fund
35.30for grants to area labor management
35.31committees. Grants may be awarded for a
35.3212-month period beginning July 1 each year.
35.33Any unencumbered balance remaining at the
36.1end of the first year does not cancel but is
36.2available for the second year.

36.3
36.4
Sec. 6. WORKERS' COMPENSATION COURT
OF APPEALS
$
1,913,000
$
1,913,000
36.5This appropriation is from the workers'
36.6compensation fund.

36.7
Sec. 7. DEPARTMENT OF COMMERCE
36.8
Subdivision 1.Total Appropriation
$
31,173,000
$
30,684,000
36.9
Appropriations by Fund
36.10
General
27,160,000
26,671,000
36.11
Special Revenue
2,210,000
2,210,000
36.12
Petroleum Tank
1,052,000
1,052,000
36.13
36.14
Workers'
Compensation
751,000
751,000
36.15(a) The amounts that may be spent for each
36.16purpose are specified in the following
36.17subdivisions.
36.18(b) Notwithstanding Minnesota Statutes,
36.19section 16A.285, the commissioner of
36.20commerce must not allow transfers of money
36.21appropriated in this section between divisions
36.22or programs of the Department of Commerce.
36.23(c) Notwithstanding Minnesota Statutes,
36.24section 16B.37, subdivision 4, the
36.25commissioner of commerce must not allow
36.26billing between divisions or programs within
36.27the Department of Commerce, or otherwise
36.28use any "Internal Billing Expenditures."
36.29(d) Notwithstanding Minnesota Statutes,
36.30section 16B.37, subdivision 4, and Minnesota
36.31Statutes, section 471.59, except for work
36.32performed by MN.IT under Minnesota
36.33Statutes, chapter 16E, the commissioner of
37.1commerce must not allow billing or transfers
37.2between other executive branch agencies or
37.3departments and the Department of
37.4Commerce.
37.5
Subd. 2.Financial Institutions
5,285,000
5,285,000
37.6(a) $400,000 each year is for grants to Prepare
37.7and Prosper for purposes of developing,
37.8marketing, evaluating, and distributing a
37.9financial services inclusion program that will
37.10assist low-income and financially underserved
37.11populations build savings, strengthen credit,
37.12and provide services to assist them in being
37.13more financially stable and secure. Grants in
37.14fiscal year 2018 must be matched by nonstate
37.15contributions. Money remaining after the first
37.16year is available for the second year.
37.17
37.18
Subd. 3.Petroleum Tank Release Compensation
Board
1,052,000
1,052,000
37.19This appropriation is from the petroleum tank
37.20fund.
37.21
Subd. 4.Administrative Services
7,203,000
7,203,000
37.22(a) $375,000 each year is to fund Minnesota
37.23Statutes, section 345.42, subdivision 1a.
37.24(b) $100,000 each year is for the support of
37.25broadband development.
37.26(c) $33,000 each year is for rulemaking and
37.27administration under Minnesota Statutes,
37.28section 80A.461.
37.29
Subd. 5.Telecommunications
2,619,000
2,330,000
37.30
Appropriations by Fund
37.31
General
1,009,000
720,000
37.32
Special Revenue
1,610,000
1,610,000
37.33(a) For the general fund appropriations under
37.34this subdivision, the base amount in fiscal year
38.12020 is $576,000, and the base amount in
38.2fiscal year 2021 is $461,000.
38.3(b) $1,610,000 each year is from the
38.4telecommunication access Minnesota fund
38.5account in the special revenue fund for the
38.6following transfers. This appropriation is
38.7added to the department's base.
38.8(1) $1,170,000 each year is to the
38.9commissioner of human services to
38.10supplement the ongoing operational expenses
38.11of the Commission of Deaf, DeafBlind, and
38.12Hard-of-Hearing Minnesotans;
38.13(2) $290,000 each year is to the chief
38.14information officer for the purpose of
38.15coordinating technology accessibility and
38.16usability;
38.17(3) $100,000 each year is to the Legislative
38.18Coordinating Commission for captioning of
38.19legislative coverage. This transfer is subject
38.20to Minnesota Statutes, section 16A.281; and
38.21(4) $50,000 each year is to the Office of
38.22MN.IT Services for a consolidated access fund
38.23to provide grants to other state agencies related
38.24to accessibility of their Web-based services.
38.25
Subd. 6.Enforcement
5,299,000
5,099,000
38.26
Appropriations by Fund
38.27
General
5,101,000
4,901,000
38.28
38.29
Workers'
Compensation
198,000
198,000
38.30(a) $279,000 each year is for health care
38.31enforcement.
38.32(b)(1) $200,000 in fiscal year 2018 is to create
38.33and execute a statewide education and
38.34outreach campaign to protect seniors, meaning
39.1those 60 years of age or older, vulnerable
39.2adults, as defined in Minnesota Statutes,
39.3section 626.5572, subdivision 21, and their
39.4caregivers from financial fraud and
39.5exploitation.
39.6(2) The education and outreach campaign must
39.7be statewide, and must include, but is not
39.8limited to, the dissemination of information
39.9through television, print, or other media,
39.10training and outreach to senior living facilities,
39.11and the creation of a senior fraud toolkit.
39.12(3) The commissioner of commerce shall
39.13report by January 15, 2018, to the chairs and
39.14ranking minority members of the committees
39.15of the house of representatives and senate
39.16having jurisdiction over commerce issues
39.17regarding the results of the statewide education
39.18and outreach campaign, and recommendations
39.19for supporting ongoing efforts to prevent
39.20financial fraud from occurring to, and the
39.21financial exploitation of, seniors, vulnerable
39.22adults, and their caregivers.
39.23(c) The revenue transferred in Minnesota
39.24Statutes, section 297I.11, subdivision 2, to the
39.25insurance fraud prevention account must be
39.26used in part for compensation for two new
39.27employees in the Commerce Fraud Bureau to
39.28perform analytical duties. The new employees
39.29must not be peace officers.
39.30
Subd. 7.Energy Resources
4,847,000
4,847,000
39.31
Appropriations by Fund
39.32
General
4,247,000
4,247,000
39.33
Special Revenue
600,000
600,000
40.1(a) $150,000 each year is to remediate
40.2vermiculate insulation from households that
40.3are eligible for weatherization assistance under
40.4Minnesota's weatherization assistance program
40.5state plan under Minnesota Statutes, section
40.6216C.264. Remediation must be done in
40.7conjunction with federal weatherization
40.8assistance program services.
40.9(b) $832,000 each year is for energy regulation
40.10and planning unit staff.
40.11(c) $100,000 each year is from the clean
40.12energy advancement fund (C-LEAF) account
40.13in the special revenue fund established in
40.14Minnesota Statutes, section 116C.779,
40.15subdivision 1, to administer the "Made in
40.16Minnesota" solar energy production incentive
40.17program in Minnesota Statutes, section
40.18216C.417. Any remaining unspent funds
40.19cancel back to the C-LEAF account at the end
40.20of the biennium.
40.21(d) $500,000 each year is from the clean
40.22energy advancement fund (C-LEAF) account
40.23in the special revenue fund established in
40.24Minnesota Statutes, section 116C.779,
40.25subdivision 1, for costs associated with any
40.26third-party expert evaluation of a proposal
40.27submitted in response to a request for proposal
40.28to the C-LEAF advisory group under
40.29Minnesota Statutes, section 116C.779,
40.30subdivision 1, paragraph (k). No portion of
40.31this appropriation may be expended or retained
40.32by the commissioner of commerce. Any funds
40.33appropriated under this paragraph that are
40.34unexpended at the end of a fiscal year cancel
40.35to the C-LEAF account
41.1
Subd. 8.Insurance
4,868,000
4,868,000
41.2
Appropriations by Fund
41.3
General
4,315,000
4,315,000
41.4
41.5
Workers'
Compensation
553,000
553,000
41.6(a) $642,000 each year is for health insurance
41.7rate review staffing.
41.8(b) $412,000 each year is for actuarial work
41.9to prepare for implementation of
41.10principle-based reserves.

41.11
Sec. 8. PUBLIC UTILITIES COMMISSION
$
7,242,000
$
6,930,000
41.12(a) For the general fund appropriations under
41.13this section, the base amount in fiscal year
41.142020 is $6,774,000, and the base amount in
41.15fiscal year 2021 is $6,649,000.
41.16(b) Notwithstanding Minnesota Statutes,
41.17section 16A.285, the Public Utilities
41.18Commission and its members must not allow
41.19transfers of money appropriated in this section
41.20between divisions or programs of the Public
41.21Utilities Commission.
41.22(c) Notwithstanding Minnesota Statutes,
41.23section 16B.37, subdivision 4, the Public
41.24Utilities Commission and its members must
41.25not allow billing between divisions or
41.26programs within the Public Utilities
41.27Commission, or otherwise use any "Internal
41.28Billing Expenditures."
41.29(d) Notwithstanding Minnesota Statutes,
41.30section 16B.37, subdivision 4, and section
41.31471.59, or any other law to the contrary,
41.32except for work performed by MN.IT, under
41.33Minnesota Statutes, chapter 16E, the Public
41.34Utilities Commission and its members must
42.1not allow billing or transfers between other
42.2executive branch agencies or departments and
42.3the Public Utilities Commission.
42.4(e) $21,000 each year is for the purposes of
42.5Minnesota Statutes, section 237.045.

42.6
Sec. 9. PUBLIC FACILITIES AUTHORITY
$
900,000
$
0
42.7(a) $300,000 in fiscal year 2018 is for a grant
42.8to the city of New Trier to replace water
42.9infrastructure under Hogan Avenue, including
42.10related road reconstruction, and to acquire land
42.11for predesign, design, and construction of a
42.12storm water pond that will be colocated with
42.13the pond of the new subdivision. This
42.14appropriation does not require a nonstate
42.15contribution.
42.16(b) $600,000 in fiscal year 2018 is for a grant
42.17to the Ramsey/Washington Recycling and
42.18Energy Board to design, construct, and equip
42.19capital improvements to the
42.20Ramsey/Washington Recycling and Energy
42.21Center in Newport.

42.22ARTICLE 2
42.23LABOR AND INDUSTRY

42.24    Section 1. Minnesota Statutes 2016, section 175.45, is amended to read:
42.25175.45 COMPETENCY STANDARDS FOR DUAL TRAINING.
42.26    Subdivision 1. Duties; goal. The commissioner of labor and industry shall convene
42.27industry representatives, identify occupational competency standards for dual training, and
42.28provide technical assistance to develop dual-training programs. The goal of dual training
42.29is to provide employees of an employer with training to acquire competencies that the
42.30employer requires. The competency standards shall be identified for employment in
42.31occupations in advanced manufacturing, health care services, information technology, and
42.32agriculture. Competency standards are not rules and are exempt from the rulemaking
43.1provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do
43.2not apply.
43.3    Subd. 2. Definition; competency standards Definitions. For purposes of this section,
43.4the following terms have the meanings given them:
43.5(1) "competency standards" means the specific knowledge and skills necessary for a
43.6particular occupation.; and
43.7(2) "dual-training program" means an employment-based earn-as-you-learn program
43.8where the trainee is employed by a participating employer and receives structured on-the-job
43.9training and technical instruction in accordance with the competency standards.
43.10    Subd. 3. Competency standards identification process. In identifying competency
43.11standards, the commissioner shall consult with the commissioner of the Office of Higher
43.12Education and the commissioner of employment and economic development and convene
43.13recognized industry experts, representative employers, higher education institutions,
43.14representatives of the disabled community, and representatives of labor to assist in identifying
43.15credible competency standards. Competency standards must be consistent with, to the extent
43.16available and practical, recognized international and national standards.
43.17    Subd. 4. Duties. The commissioner shall:
43.18(1) convene industry representatives to identify, develop, and implement dual-training
43.19programs;
43.20(2) identify competency standards for entry level entry-level and higher skill levels;
43.21(2) (3) verify the competency standards and skill levels and their transferability by subject
43.22matter expert representatives of each respective industry;
43.23(3) (4) develop models for Minnesota educational institutions to engage in providing
43.24education and training to meet the competency standards established;
43.25(4) (5) encourage participation by employers and labor in the competency standard
43.26identification process for occupations in their industry; and
43.27(5) (6) align dual training competency standards dual-training programs with other
43.28workforce initiatives.; and
43.29(7) provide technical assistance to develop dual-training programs.
43.30    Subd. 5. Notification. The commissioner must communicate identified competency
43.31standards to the commissioner of the Office of Higher Education for the purpose of the dual
43.32training dual-training competency grant program under section 136A.246. The commissioner
44.1of labor and industry shall maintain the competency standards on the department's Web
44.2site.

44.3    Sec. 2. [175.46] YOUTH SKILLS TRAINING PROGRAM.
44.4    Subdivision 1. Program established; grants authorized. The commissioner shall
44.5approve youth skills training programs established for the purpose of providing work-based
44.6skills training for student learners ages 16 and older. The commissioner shall award grants
44.7to local partnerships for the implementation and coordination of local youth skills training
44.8programs as provided in this section.
44.9    Subd. 2. Definitions. (a) For purposes of this section, the terms in this subdivision have
44.10the meanings given.
44.11(b) "School district" means a school district or charter school.
44.12(c) "Local partnership" means a school district, nonpublic school, intermediate school
44.13district, or postsecondary institution, in partnership with other school districts, nonpublic
44.14schools, intermediate school districts, postsecondary institutions, workforce development
44.15authorities, economic development authorities, nonprofit organizations, labor unions, or
44.16individuals who have an agreement with one or more local employers to be responsible for
44.17implementing and coordinating a local youth skills training program.
44.18(d) "Student learner" means a student who is both enrolled in a course of study at a public
44.19or nonpublic school to obtain related instruction for academic credit and is employed under
44.20a written agreement to obtain on-the-job skills training under a youth skills training program
44.21approved under this section.
44.22(e) "Commissioner" means the commissioner of labor and industry.
44.23    Subd. 3. Duties. (a) The commissioner shall:
44.24(1) approve youth skills training programs in high-growth, high-demand occupations
44.25that provide:
44.26(i) that the work of the student learner in the occupations declared particularly hazardous
44.27shall be incidental to the training;
44.28(ii) that the work shall be intermittent and for short periods of time, and under the direct
44.29and close supervision of a qualified and experienced person;
44.30(iii) that safety instruction shall be provided to the student learner and may be given by
44.31the school and correlated by the employer with on-the-job training;
45.1(iv) a schedule of organized and progressive work processes to be performed on the job;
45.2(v) a schedule of wage rates in compliance with section 177.24; and
45.3(vi) whether the student learner will obtain secondary school academic credit,
45.4postsecondary credit, or both, for the training program;
45.5(2) approve occupations and maintain a list of approved occupations for programs under
45.6this section;
45.7(3) issue requests for proposals for grants;
45.8(4) work with individuals representing industry and labor to develop new youth skills
45.9training programs;
45.10(5) develop model program guides;
45.11(6) monitor youth skills training programs;
45.12(7) provide technical assistance to local partnership grantees;
45.13(8) work with providers to identify paths for receiving postsecondary credit for
45.14participation in the youth skills training program; and
45.15(9) approve other activities as necessary to implement the program.
45.16(b) The commissioner shall collaborate with stakeholders, including, but not limited to,
45.17representatives of secondary school institutions, career and technical education instructors,
45.18postsecondary institutions, businesses, and labor, in developing youth skills training
45.19programs, and identifying and approving occupations and competencies for youth skills
45.20training programs.
45.21    Subd. 4. Training agreement. Each student learner shall sign a written training agreement
45.22on a form prescribed by the commissioner. Each agreement shall contain the name of the
45.23student learner, and be signed by the employer, the school coordinator or administrator, and
45.24the student learner, or if the student learner is a minor, by the student's parent or legal
45.25guardian. Copies of each agreement shall be kept on file by both the school and the employer.
45.26    Subd. 5. Program approval. The commissioner may grant exemptions from the
45.27provisions of chapter 181A for student learners participating in youth skills training programs
45.28approved by the commissioner under this section. The approval of a youth skills training
45.29program will be reviewed annually. The approval of a youth skills training program may
45.30be revoked at any time if the commissioner finds that:
45.31(1) all provisions of subdivision 3 have not been met in the previous year; or
46.1(2) reasonable precautions have not been observed for the safety of minors.
46.2The commissioner shall maintain and annually update a list of occupations and tasks suitable
46.3for student learners in compliance with federal law.
46.4    Subd. 6. Interactions with education finance. (a) For the purpose of computing state
46.5aids for the enrolling school district, the hours a student learner participates in a youth skills
46.6training program under this section must be counted in the student's hours of average daily
46.7membership under section 126C.05.
46.8(b) Educational expenses for a participating student learner must be included in the
46.9enrolling district's career and technical revenue as provided under section 124D.4531.
46.10    Subd. 7. Academic credit. A school district may grant academic credit to student learners
46.11participating in youth skills training programs under this section in accordance with local
46.12requirements.
46.13    Subd. 8. Postsecondary credit. A postsecondary institution may award postsecondary
46.14credit to a student learner who successfully completes a youth skills training program.
46.15    Subd. 9. Work-based learning program. A youth skills training program shall qualify
46.16as a work-based learning program if it meets requirements for a career and technical education
46.17program and is supervised by a qualified teacher with appropriate licensure for a work-based
46.18learning teacher-coordinator.
46.19    Subd. 10. School coordinator. Unless otherwise required for a work-based learning
46.20program, a youth skills training program may be supervised by a qualified teacher or by an
46.21administrator as determined by the school district.
46.22    Subd. 11. Other apprenticeship programs. (a) This section shall not affect programs
46.23under section 124D.47.
46.24(b) A registered apprenticeship program governed by chapter 178 may grant credit
46.25toward the completion of a registered apprenticeship for the successful completion of a
46.26youth skills training program under this section.
46.27    Subd. 12. Grant applications. (a) Applications for grants must be made to the
46.28commissioner on a form provided by the commissioner.
46.29(b) A local partnership may apply for a grant and shall include in its grant application:
46.30(1) the identity of each school district, public agency, nonprofit organization, or individual
46.31who is a participant in the local partnership;
47.1(2) the identity of each employer who is a participant in the local partnership and the
47.2amount of matching funds provided by each employer, if any;
47.3(3) a plan to accomplish the implementation and coordination of activities specified in
47.4this subdivision; and
47.5(4) the identity of a fiscal agent responsible for receiving, managing, and accounting for
47.6the grant.
47.7    Subd. 13. Grant awards. (a) A local partnership awarded a grant under this section
47.8must use the grant award for any of the following implementation and coordination activities:
47.9(1) recruiting additional employers to provide on-the-job training and supervision for
47.10student learners and providing technical assistance to those employers;
47.11(2) recruiting students to participate in the local youth skills training program, monitoring
47.12the progress of student learners participating in the program, and monitoring program
47.13outcomes;
47.14(3) coordinating youth skills training activities within participating school districts and
47.15among participating school districts, postsecondary institutions, and employers;
47.16(4) coordinating academic, vocational and occupational learning, school-based and
47.17work-based learning, and secondary and postsecondary education for participants in the
47.18local youth skills training program;
47.19(5) coordinating transportation for student learners participating in the local youth skills
47.20training program; and
47.21(6) any other implementation or coordination activity that the commissioner may direct
47.22or permit the local partnership to perform.
47.23(b) Grant awards may not be used to directly or indirectly pay the wages of a student
47.24learner.
47.25    Subd. 14. Outcomes. The following outcomes are expected of a local youth skills training
47.26program:
47.27(1) at least 80 percent of the student learners who participate in a youth skills training
47.28program receive a high school diploma when eligible upon completion of the training
47.29program; and
47.30(2) at least 60 percent of the student learners who participate in a youth skills training
47.31program receive a recognized credential upon completion of the training program.
48.1    Subd. 15. Reporting. (a) By February 1, 2019, and annually thereafter, the commissioner
48.2shall report on the activity and outcomes of the program for the preceding fiscal year to the
48.3chairs of the legislative committees with jurisdiction over jobs and economic growth policy
48.4and finance. At a minimum, the report must include:
48.5(1) the number of student learners who commenced the training program and the number
48.6who completed the training program; and
48.7(2) recommendations, if any, for changes to the program.
48.8(b) The initial report shall include a detailed description of the differences between the
48.9state and federal systems in child safety standards.

48.10    Sec. 3. Minnesota Statutes 2016, section 326B.092, subdivision 7, is amended to read:
48.11    Subd. 7. License fees and license renewal fees. (a) The license fee for each license is
48.12the base license fee plus any applicable board fee, continuing education fee, and contractor
48.13recovery fund fee and additional assessment, as set forth in this subdivision.
48.14(b) For purposes of this section, "license duration" means the number of years for which
48.15the license is issued except that if the initial license is not issued for a whole number of
48.16years, the license duration shall be rounded up to the next whole number.
48.17(c) The base license fee shall depend on whether the license is classified as an entry
48.18level, master, journeyman, or business license, and on the license duration. The base license
48.19fee shall be:
48.20
License Classification
License Duration
48.21
1 year
2 years
48.22
Entry level
$10
$20
48.23
Journeyworker
$20
$40
48.24
Master
$40
$80
48.25
Business
$180
48.26(d) If there is a continuing education requirement for renewal of the license, then a
48.27continuing education fee must be included in the renewal license fee. The continuing
48.28education fee for all license classifications shall be: $10 if the renewal license duration is
48.29one year; and $20 if the renewal license duration is two years.
48.30(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925,
48.31then a board fee must be included in the license fee and the renewal license fee. The board
48.32fee for all license classifications shall be: $4 if the license duration is one year; and $8 if
48.33the license duration is two years.
49.1(f) If the application is for the renewal of a license issued under sections 326B.802 to
49.2326B.885 , then the contractor recovery fund fee required under section 326B.89, subdivision
49.33, and any additional assessment required under section 326B.89, subdivision 16, must be
49.4included in the license renewal fee.
49.5(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period
49.6July 1, 2015 2017, through June 30, 2017 September 30, 2021, the following fees apply:
49.7
License Classification
License Duration
49.8
1 year
2 years
49.9
Entry level
$10
$20
49.10
49.11
Journeyworker
$15
$35
$30
49.12
49.13
Master
$30
$75
$60
49.14
49.15
Business
$160
$120
49.16If there is a continuing education requirement for renewal of the license, then a continuing
49.17education fee must be included in the renewal license fee. The continuing education fee for
49.18all license classifications shall be $5.

49.19    Sec. 4. [326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO
49.20CODE.
49.21    Subdivision 1. Definition. For purposes of this section, "place of public accommodation"
49.22means a publicly or privately owned facility that is designed for occupancy by 200 or more
49.23people and includes a sports or entertainment arena, stadium, theater, community or
49.24convention hall, special event center, indoor amusement facility or water park, or swimming
49.25pool.
49.26    Subd. 2. Application. Construction, additions, and alterations to a place of public
49.27accommodation must be designed and constructed to comply with the State Building Code.
49.28    Subd. 3. Enforcement. In a municipality that has not adopted the code by ordinance
49.29under section 326B.121, subdivision 2, the commissioner shall enforce this section in
49.30accordance with section 326B.107, subdivision 1.
49.31    Subd. 4. Fire protection systems. If fire protection systems regulated by chapter 299M
49.32are required in a place of public accommodation, then those plan reviews and inspections
49.33shall be conducted by the state fire marshal.

50.1    Sec. 5. Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:
50.2    Subdivision 1. Building permits. (a) Fees for building permits submitted as required
50.3in section 326B.106 326B.107 include:
50.4(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality;
50.5and
50.6(2) the surcharge required by section 326B.148.
50.7(b) The total valuation and fee schedule is:
50.8(1) $1 to $500, $29.50 $21;
50.9(2) $501 to $2,000, $28 $21 for the first $500 plus $3.70 $2.75 for each additional $100
50.10or fraction thereof, to and including $2,000;
50.11(3) $2,001 to $25,000, $83.50 $62.25 for the first $2,000 plus $16.55 $12.50 for each
50.12additional $1,000 or fraction thereof, to and including $25,000;
50.13(4) $25,001 to $50,000, $464.15 $349.75 for the first $25,000 plus $12 $9 for each
50.14additional $1,000 or fraction thereof, to and including $50,000;
50.15(5) $50,001 to $100,000, $764.15 $574.75 for the first $50,000 plus $8.45 $6.25 for
50.16each additional $1,000 or fraction thereof, to and including $100,000;
50.17(6) $100,001 to $500,000, $1,186.65 $887.25 for the first $100,000 plus $6.75 $5 for
50.18each additional $1,000 or fraction thereof, to and including $500,000;
50.19(7) $500,001 to $1,000,000, $3,886.65 $2,887.25 for the first $500,000 plus $5.50 $4.25
50.20for each additional $1,000 or fraction thereof, to and including $1,000,000; and
50.21(8) $1,000,001 and up, $6,636.65 $5,012.25 for the first $1,000,000 plus $4.50 $2.75
50.22for each additional $1,000 or fraction thereof.
50.23(c) Other inspections and fees are:
50.24(1) inspections outside of normal business hours (minimum charge two hours), $63.25
50.25per hour;
50.26(2) reinspection fees, $63.25 per hour;
50.27(3) inspections for which no fee is specifically indicated (minimum charge one-half
50.28hour), $63.25 per hour; and
50.29(4) additional plan review required by changes, additions, or revisions to approved plans
50.30(minimum charge one-half hour), $63.25 per hour.
51.1(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25,
51.2then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment,
51.3hourly wages, and fringe benefits of the employees involved.
51.4EFFECTIVE DATE.Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective
51.5July 1, 2017, and the amendments to it expire October 1, 2021.

51.6    Sec. 6. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to
51.7read:
51.8    Subd. 16. Wind electric systems. (a) The inspection fee for the installation of a wind
51.9turbine is:
51.10(1) zero watts to and including 100,000 watts, $80;
51.11(2) 100,001 watts to and including 500,000 watts, $105;
51.12(3) 500,001 watts to and including 1,000,000 watts, $120;
51.13(4) 1,000,001 watts to and including 1,500,000 watts, $125;
51.14(5) 1,500,001 watts to and including 2,000,000 watts, $130;
51.15(6) 2,000,001 watts to and including 3,000,000 watts, $145; and
51.16(7) 3,000,001 watts and larger, $160.
51.17(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
51.18current energy output of one individual wind turbine.

51.19    Sec. 7. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision to
51.20read:
51.21    Subd. 17. Solar photovoltaic systems. (a) The inspection fee for the installation of a
51.22solar photovoltaic system is:
51.23(1) zero watts to and including 5,000 watts, $60;
51.24(2) 5,001 watts to and including 10,000 watts, $100;
51.25(3) 10,001 watts to and including 20,000 watts, $150;
51.26(4) 20,001 watts to and including 30,000 watts, $200;
51.27(5) 30,001 watts to and including 40,000 watts, $250;
51.28(6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional
51.2910,000 watts over 40,000 watts;
52.1(7) 1,000,001 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts
52.2over 1,000,000 watts; and
52.3(8) 5,000,001 watts and larger, $8,650, and $10 for each additional 10,000 watts over
52.45,000,000 watts.
52.5(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
52.6current energy output of the solar photovoltaic system.

52.7    Sec. 8. Minnesota Statutes 2016, section 326B.435, subdivision 2, is amended to read:
52.8    Subd. 2. Powers; duties; administrative support. (a) The board shall have the power
52.9to:
52.10    (1) elect its chair, vice-chair, and secretary;
52.11    (2) adopt bylaws that specify the duties of its officers, the meeting dates of the board,
52.12and containing such other provisions as may be useful and necessary for the efficient conduct
52.13of the business of the board;
52.14    (3) adopt the Plumbing Code that must be followed in this state and any Plumbing Code
52.15amendments thereto. The Plumbing Code shall include the minimum standards described
52.16in sections 326B.43, subdivision 1, and 326B.52, subdivision 1. The board shall adopt the
52.17Plumbing Code and any amendments thereto pursuant to chapter 14 and as provided in
52.18subdivision 6, paragraphs (b), (c), and (d);
52.19    (4) review requests for final interpretations and issue final interpretations as provided
52.20in section 326B.127, subdivision 5;
52.21    (5) adopt rules that regulate the licensure, certification, or registration of plumbing
52.22contractors, journeymen, unlicensed individuals, master plumbers, restricted master plumbers,
52.23restricted journeymen, restricted plumbing contractors, backflow prevention rebuilders and
52.24testers, water conditioning contractors, and water conditioning installers, and other persons
52.25engaged in the design, installation, and alteration of plumbing systems or engaged in or
52.26working at the business of water conditioning installation or service, or engaged in or
52.27working at the business of medical gas system installation, maintenance, or repair, except
52.28for those individuals licensed under section 326.02, subdivisions 2 and 3. The board shall
52.29adopt these rules pursuant to chapter 14 and as provided in subdivision 6, paragraphs (e)
52.30and (f);
52.31(6) adopt rules that regulate continuing education for individuals licensed as master
52.32plumbers, journeyman plumbers, restricted master plumbers, restricted journeyman plumbers,
53.1registered unlicensed individuals, water conditioning contractors masters, and water
53.2conditioning installers journeymen, and for individuals certified under sections 326B.437
53.3and 326B.438. The board shall adopt these rules pursuant to chapter 14 and as provided in
53.4subdivision 6, paragraphs (e) and (f);
53.5    (7) refer complaints or other communications to the commissioner, whether oral or
53.6written, as provided in subdivision 8, that allege or imply a violation of a statute, rule, or
53.7order that the commissioner has the authority to enforce pertaining to code compliance,
53.8licensure, or an offering to perform or performance of unlicensed plumbing services;
53.9    (8) approve per diem and expenses deemed necessary for its members as provided in
53.10subdivision 3;
53.11    (9) approve license reciprocity agreements;
53.12    (10) select from its members individuals to serve on any other state advisory council,
53.13board, or committee; and
53.14    (11) recommend the fees for licenses, registrations, and certifications.
53.15Except for the powers granted to the Plumbing Board, the Board of Electricity, and the
53.16Board of High Pressure Piping Systems, the commissioner of labor and industry shall
53.17administer and enforce the provisions of this chapter and any rules promulgated pursuant
53.18thereto.
53.19    (b) The board shall comply with section 15.0597, subdivisions 2 and 4.
53.20    (c) The commissioner shall coordinate the board's rulemaking and recommendations
53.21with the recommendations and rulemaking conducted by the other boards created pursuant
53.22to this chapter. The commissioner shall provide staff support to the board. The support
53.23includes professional, legal, technical, and clerical staff necessary to perform rulemaking
53.24and other duties assigned to the board. The commissioner of labor and industry shall supply
53.25necessary office space and supplies to assist the board in its duties.

53.26    Sec. 9. Minnesota Statutes 2016, section 326B.50, subdivision 3, is amended to read:
53.27    Subd. 3. Water conditioning installation. "Water conditioning installation" means the
53.28installation of appliances, appurtenances, and fixtures designed to treat water so as to alter,
53.29modify, add or remove mineral, chemical or bacterial content, said installation to be made
53.30in a water distribution system serving:
54.1    (1) a single family residential unit, which has been initially established by a licensed
54.2plumber, and does not involve a direct connection without an air gap to a soil or waste pipe.;
54.3or
54.4(2) a multifamily or nonresidential building, where the plumbing installation has been
54.5initially established by a licensed plumber. Isolation valves shall be required for all water
54.6conditioning installations and shall be readily accessible. Water conditioning installation
54.7does not include:
54.8(i) a valve that allows isolation of the water conditioning installation;
54.9(ii) piping greater than two-inch nominal pipe size; or
54.10(iii) a direct connection without an air gap to a soil or waste pipe.

54.11    Sec. 10. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision
54.12to read:
54.13    Subd. 5. Direct supervision. "Direct supervision," with respect to direct supervision of
54.14a registered unlicensed individual, means that:
54.15(1) at all times while the registered unlicensed individual is performing water conditioning
54.16installation work, a direct supervisor is present at the location where the registered unlicensed
54.17individual is working;
54.18(2) the direct supervisor is physically present and immediately available to the registered
54.19unlicensed individual at all times for assistance and direction;
54.20(3) any form of electronic supervision does not meet the requirement of being physically
54.21present;
54.22(4) the direct supervisor reviews the water conditioning installation work performed by
54.23the registered unlicensed individual before the water conditioning installation is operated;
54.24and
54.25(5) the direct supervisor determines that all water conditioning installation work
54.26performed by the registered unlicensed individual is performed in compliance with sections
54.27326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code,
54.28and all orders issued under section 326B.082.

55.1    Sec. 11. Minnesota Statutes 2016, section 326B.50, is amended by adding a subdivision
55.2to read:
55.3    Subd. 6. Direct supervisor. "Direct supervisor" means a master plumber, journeyman
55.4plumber, restricted master plumber, restricted journeyman plumber, water conditioning
55.5master, or water conditioning journeyman responsible for providing direct supervision of
55.6a registered unlicensed individual.

55.7    Sec. 12. Minnesota Statutes 2016, section 326B.55, subdivision 2, is amended to read:
55.8    Subd. 2. Qualifications for licensing. (a) A water conditioning master license shall be
55.9issued only to an individual who has demonstrated skill in planning, superintending, and
55.10servicing, and installing water conditioning installations, and has successfully passed the
55.11examination for water conditioning masters. A water conditioning journeyman license shall
55.12only be issued to an individual other than a water conditioning master who has demonstrated
55.13practical knowledge of water conditioning installation, and has successfully passed the
55.14examination for water conditioning journeymen. A water conditioning journeyman must
55.15successfully pass the examination for water conditioning masters before being licensed as
55.16a water conditioning master.
55.17(b) Each water conditioning contractor must designate a responsible licensed master
55.18plumber or a responsible licensed water conditioning master, who shall be responsible for
55.19the performance of all water conditioning installation and servicing in accordance with the
55.20requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to
55.21326B.59 , the Minnesota Plumbing Code, and all orders issued under section 326B.082. If
55.22the water conditioning contractor is an individual or sole proprietorship, the responsible
55.23licensed master must be the individual, proprietor, or managing employee. If the water
55.24conditioning contractor is a partnership, the responsible licensed master must be a general
55.25partner or managing employee. If the water conditioning contractor is a limited liability
55.26company, the responsible licensed master must be a chief manager or managing employee.
55.27If the water conditioning contractor is a corporation, the responsible licensed master must
55.28be an officer or managing employee. If the responsible licensed master is a managing
55.29employee, the responsible licensed master must be actively engaged in performing water
55.30conditioning work on behalf of the water conditioning contractor and cannot be employed
55.31in any capacity as a water conditioning master or water conditioning journeyman for any
55.32other water conditioning contractor. An individual must not be the responsible licensed
55.33master for more than one water conditioning contractor.
56.1(c) All applications and renewals for water conditioning contractor licenses shall include
56.2a verified statement that the applicant or licensee has complied with paragraph (b).
56.3(d) Each application and renewal for a water conditioning master license, water
56.4conditioning journeyman license, or a water conditioning contractor license shall be
56.5accompanied by all fees required by section 326B.092.

56.6    Sec. 13. Minnesota Statutes 2016, section 326B.55, subdivision 4, is amended to read:
56.7    Subd. 4. Plumber's apprentices. (a) A plumber's apprentice who is registered under
56.8section 326B.47 is authorized to assist in water conditioning installation and water
56.9conditioning servicing only while under the direct supervision of a master plumber,
56.10journeyman plumber, restricted master plumber, restricted journeyman plumber, water
56.11conditioning master, or water conditioning journeyman. The master or journeyman is
56.12responsible for ensuring that all water conditioning work performed by the plumber's
56.13apprentice complies with the plumbing code and rules adopted under sections 326B.50 to
56.14326B.59 . The supervising master or journeyman must be licensed and must be employed
56.15by the same employer as the plumber's apprentice. Licensed individuals shall not permit
56.16plumber's apprentices to perform water conditioning work except under the direct supervision
56.17of an individual actually licensed to perform such work. Plumber's apprentices shall not
56.18supervise the performance of plumbing work or make assignments of plumbing work to
56.19unlicensed individuals.
56.20(b) Water conditioning contractors employing plumber's apprentices to perform water
56.21conditioning work shall maintain records establishing compliance with this subdivision that
56.22shall identify all plumber's apprentices performing water conditioning work, and shall permit
56.23the department to examine and copy all such records.

56.24    Sec. 14. [326B.555] REGISTERED UNLICENSED INDIVIDUALS.
56.25    Subdivision 1. Registration; supervision; records. (a) All unlicensed individuals
56.26engaged in water conditioning installation must be registered under subdivision 3.
56.27(b) A registered unlicensed individual is authorized to assist in water conditioning
56.28installations in a single family residential unit only when a master plumber, journeyman
56.29plumber, restricted master plumber, restricted journeyman plumber, water conditioning
56.30master, or water conditioning journeyman is available and responsible for ensuring that all
56.31water conditioning installation work performed by the unlicensed individual complies with
56.32the applicable provisions of the plumbing and water conditioning codes and rules adopted
56.33pursuant to such codes. For all other water conditioning installation work, the registered
57.1unlicensed individual must be under the direct supervision of a responsible licensed water
57.2conditioning master.
57.3(c) Water conditioning contractors employing registered unlicensed individuals to perform
57.4water conditioning installation work shall maintain records establishing compliance with
57.5this subdivision that shall identify all unlicensed individuals performing water conditioning
57.6installations, and shall permit the department to examine and copy all such records.
57.7    Subd. 2. Journeyman exam. A registered unlicensed individual who has completed
57.8875 hours of practical water conditioning installation, servicing, and training is eligible to
57.9take the water conditioning journeyman examination. Up to 100 hours of practical water
57.10conditioning installation and servicing experience prior to becoming a registered unlicensed
57.11individual may be applied to the practical experience requirement. However, none of this
57.12practical experience may be applied if the unlicensed individual did not have any practical
57.13experience in the 12-month period immediately prior to becoming a registered unlicensed
57.14individual.
57.15    Subd. 3. Registration, renewals, and fees. An unlicensed individual may register by
57.16completing and submitting to the commissioner an application form provided by the
57.17commissioner, with all fees required by section 326B.58. A completed application form
57.18must state the date, the individual's age, schooling, previous experience and employer, and
57.19other information required by the commissioner. The plumbing board may prescribe rules,
57.20not inconsistent with this section, for the registration of unlicensed individuals. Applications
57.21for initial registration may be submitted at any time. Registration must be renewed annually
57.22and shall be for the period from July 1 of each year to June 30 of the following year.

57.23    Sec. 15. Minnesota Statutes 2016, section 326B.805, subdivision 3, is amended to read:
57.24    Subd. 3. Prohibition. Except as provided in subdivision 6, no persons required to be
57.25licensed by subdivision 1 may act or hold themselves out as a residential building contractor,
57.26residential remodeler, residential roofer, or manufactured home installer for compensation
57.27without a license issued by the commissioner. A person who conducts unlicensed residential
57.28building contractor activity, residential remodeler activity, or residential roofer activity is
57.29guilty of a gross misdemeanor.

57.30    Sec. 16. Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:
57.31    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
57.32the meanings given them.
58.1    (b) "Gross annual receipts" means the total amount derived from residential contracting
58.2or residential remodeling activities, regardless of where the activities are performed, and
58.3must not be reduced by costs of goods sold, expenses, losses, or any other amount.
58.4    (c) "Licensee" means a person licensed as a residential contractor or residential remodeler.
58.5    (d) "Residential real estate" means a new or existing building constructed for habitation
58.6by one to four families, and includes detached garages intended for storage of vehicles
58.7associated with the residential real estate.
58.8    (e) "Fund" means the contractor recovery fund.
58.9(f) "Owner" when used in connection with real property, means a person who has any
58.10legal or equitable interest in real property and includes a condominium or townhome
58.11association that owns common property located in a condominium building or townhome
58.12building or an associated detached garage. Owner does not include any real estate developer
58.13or any owner using, or intending to use, the property for a business purpose and not as
58.14owner-occupied residential real estate.

58.15    Sec. 17. Minnesota Statutes 2016, section 326B.89, subdivision 5, is amended to read:
58.16    Subd. 5. Payment limitations. The commissioner shall not pay compensation from the
58.17fund to an owner or a lessee in an amount greater than $75,000 per licensee. The
58.18commissioner shall not pay compensation from the fund to owners and lessees in an amount
58.19that totals more than $150,000 $300,000 per licensee. The commissioner shall only pay
58.20compensation from the fund for a final judgment that is based on a contract directly between
58.21the licensee and the homeowner or lessee that was entered into prior to the cause of action
58.22and that requires licensure as a residential building contractor or residential remodeler.

58.23    Sec. 18. Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is
58.24amended to read:
58.25
Subd. 2.Workers' Compensation
15,226,000
17,782,000
58.26This appropriation is from the workers'
58.27compensation fund.
58.28$4,000,000 in fiscal year 2016 and $6,000,000
58.29in fiscal year 2017 are for workers'
58.30compensation system upgrades and are
58.31available through June 30, 2021. The base
58.32appropriation for this purpose is $3,000,000
59.1in fiscal year 2018 and $3,000,000 in fiscal
59.2year 2019. The base appropriation for fiscal
59.3year 2020 and beyond is zero.
59.4This appropriation includes funds for
59.5information technology project services and
59.6support subject to the provisions of Minnesota
59.7Statutes, section 16E.0466. Any ongoing
59.8information technology costs will be
59.9incorporated into the service level agreement
59.10and will be paid to the Office of MN.IT
59.11Services by the commissioner of labor and
59.12industry under the rates and mechanism
59.13specified in that agreement.

59.14    Sec. 19. REPEALER.
59.15Minnesota Statutes 2016, section 326B.89, subdivision 14, is repealed.

59.16ARTICLE 3
59.17EMPLOYMENT AND ECONOMIC DEVELOPMENT

59.18    Section 1. [116J.4221] RURAL POLICY AND DEVELOPMENT CENTER FUND.
59.19(a) A rural policy and development center fund is established as an account in the special
59.20revenue fund in the state treasury. The commissioner of management and budget shall credit
59.21to the account the amounts authorized under this section and appropriations and transfers
59.22to the account. The State Board of Investment shall ensure that account money is invested
59.23under section 11A.24. All money earned by the account must be credited to the account.
59.24The principal of the account and any unexpended earnings must be invested and reinvested
59.25by the State Board of Investment.
59.26(b) Gifts and donations, including land or interests in land, may be made to the account.
59.27Noncash gifts and donations must be disposed of for cash as soon as the board prudently
59.28can maximize the value of the gift or donation. Gifts and donations of marketable securities
59.29may be held or be disposed of for cash at the option of the board. The cash receipts of gifts
59.30and donations of cash or capital assets and marketable securities disposed of for cash must
59.31be credited immediately to the principal of the account. The value of marketable securities
59.32at the time the gift or donation is made must be credited to the principal of the account and
59.33any earnings from the marketable securities are earnings of the account. The earnings in
60.1the account are annually appropriated to the board of the Center for Rural Policy and
60.2Development to carry out the duties of the center.
60.3EFFECTIVE DATE.This section is effective the day following final enactment.

60.4    Sec. 2. Minnesota Statutes 2016, section 116J.8731, subdivision 2, is amended to read:
60.5    Subd. 2. Administration. (a) Except as otherwise provided in this section, the
60.6commissioner shall administer the fund as part of the Small Cities Development Block
60.7Grant Program and funds shall be made available to local communities and recognized
60.8Indian tribal governments in accordance with the rules adopted for economic development
60.9grants in the small cities community development block grant program. All units of general
60.10purpose local government are eligible applicants for Minnesota investment funds. The
60.11commissioner may provide forgivable loans directly to a private enterprise and not require
60.12a local community or recognized Indian tribal government application other than a resolution
60.13supporting the assistance.
60.14(b) Eligible applicants for the state-funded portion of the fund also include development
60.15authorities as defined in section 116J.552, subdivision 4, provided that the governing body
60.16of the municipality approves, by resolution, the application of the development authority.
60.17A local government entity may receive more than one award in a fiscal year. The
60.18commissioner may also make funds available within the department for eligible expenditures
60.19under subdivision 3, clause (2).
60.20(c) A home rule charter or statutory city, county, or town may loan or grant money
60.21received from repayment of funds awarded under this section to a regional development
60.22commission, other regional entity, or statewide community capital fund as determined by
60.23the commissioner, to capitalize or to provide the local match required for capitalization of
60.24a regional or statewide revolving loan fund.

60.25    Sec. 3. Minnesota Statutes 2016, section 116J.8731, is amended by adding a subdivision
60.26to read:
60.27    Subd. 10. Transfer. The commissioner may transfer up to $2,000,000 of a fiscal year's
60.28appropriation between the Minnesota job creation fund program and Minnesota investment
60.29fund to meet business demand.

60.30    Sec. 4. Minnesota Statutes 2016, section 116J.8748, subdivision 1, is amended to read:
60.31    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
60.32the meanings given.
61.1(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement
61.2under section 116J.994 that must include, but is not limited to: specification of the duration
61.3of the agreement, job goals and a timeline for achieving those goals over the duration of
61.4the agreement, construction and other investment goals and a timeline for achieving those
61.5goals over the duration of the agreement, and the value of benefits the firm may receive
61.6following achievement of capital investment and employment goals. The local government
61.7and business must report to the commissioner on the business performance using the forms
61.8developed by the commissioner.
61.9(c) "Business" means an individual, corporation, partnership, limited liability company,
61.10association, or other entity.
61.11(d) "Capital investment" means money that is expended for the purpose of building or
61.12improving real fixed property where employees under paragraphs (g) and (h) are or will be
61.13employed and also includes construction materials, services, and supplies, and the purchase
61.14and installation of equipment and machinery as provided under subdivision 4, paragraph
61.15(b), clause (5).
61.16(e) "Commissioner" means the commissioner of employment and economic development.
61.17(f) "Minnesota job creation fund business" means a business that is designated by the
61.18commissioner under subdivision 3.
61.19(g) "Minority person" means a person belonging to a racial or ethnic minority as defined
61.20in Code of Federal Regulations, title 49, section 23.5.
61.21(g) (h) "New full-time employee" means an employee who:
61.22(1) begins work at a Minnesota job creation fund business facility noted in a business
61.23subsidy agreement and following the designation as a job creation fund business; and
61.24(2) has expected work hours of at least 2,080 hours annually.
61.25(i) "Persons with disabilities" means an individual with a disability, as defined under
61.26the Americans with Disabilities Act, United States Code, title 42, section 12102.
61.27(h) (j) "Retained job" means a full-time position:
61.28(1) that existed at the facility prior to the designation as a job creation fund business;
61.29and
61.30(2) has expected work hours of at least 2,080 hours annually.
61.31(k) "Veteran" means a veteran as defined in section 197.447.
62.1(i) (l) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).

62.2    Sec. 5. Minnesota Statutes 2016, section 116J.8748, subdivision 3, is amended to read:
62.3    Subd. 3. Minnesota job creation fund business designation; requirements. (a) To
62.4receive designation as a Minnesota job creation fund business, a business must satisfy all
62.5of the following conditions:
62.6(1) the business is or will be engaged in, within Minnesota, one of the following as its
62.7primary business activity:
62.8(i) manufacturing;
62.9(ii) warehousing;
62.10(iii) distribution;
62.11(iv) information technology;
62.12(v) finance;
62.13(vi) insurance; or
62.14(vii) professional or technical services;
62.15(2) the business must not be primarily engaged in lobbying; gambling; entertainment;
62.16professional sports; political consulting; leisure; hospitality; or professional services provided
62.17by attorneys, accountants, business consultants, physicians, or health care consultants, or
62.18primarily engaged in making retail sales to purchasers who are physically present at the
62.19business's location;
62.20(3) the business must enter into a binding construction and job creation business subsidy
62.21agreement with the commissioner to expend directly, or ensure expenditure by or in
62.22partnership with a third party constructing or managing the project, at least $500,000 in
62.23capital investment in a capital investment project that includes a new, expanded, or remodeled
62.24facility within one year following designation as a Minnesota job creation fund business or
62.25$250,000 if the project is located outside the metropolitan area as defined in section 200.02,
62.26subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans,
62.27women, or persons with a disability; and:
62.28(i) create at least ten new full-time employee positions within two years of the benefit
62.29date following the designation as a Minnesota job creation fund business or five new full-time
62.30employee positions within two years of the benefit date if the project is located outside the
63.1metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business
63.2is cumulatively owned by minorities, veterans, women, or persons with a disability; or
63.3(ii) expend at least $25,000,000, which may include the installation and purchase of
63.4machinery and equipment, in capital investment and retain at least 200 employees for projects
63.5located in the metropolitan area as defined in section 200.02, subdivision 24, and 75
63.6employees for projects located outside the metropolitan area;
63.7(4) positions or employees moved or relocated from another Minnesota location of the
63.8Minnesota job creation fund business must not be included in any calculation or determination
63.9of job creation or new positions under this paragraph; and
63.10(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the
63.11working hours of an employee for the purpose of hiring an individual to satisfy job creation
63.12goals under this subdivision.
63.13(b) Prior to approving the proposed designation of a business under this subdivision, the
63.14commissioner shall consider the following:
63.15(1) the economic outlook of the industry in which the business engages;
63.16(2) the projected sales of the business that will be generated from outside the state of
63.17Minnesota;
63.18(3) how the business will build on existing regional, national, and international strengths
63.19to diversify the state's economy;
63.20(4) whether the business activity would occur without financial assistance;
63.21(5) whether the business is unable to expand at an existing Minnesota operation due to
63.22facility or land limitations;
63.23(6) whether the business has viable location options outside Minnesota;
63.24(7) the effect of financial assistance on industry competitors in Minnesota;
63.25(8) financial contributions to the project made by local governments; and
63.26(9) any other criteria the commissioner deems necessary.
63.27(c) Upon receiving notification of local approval under subdivision 2, the commissioner
63.28shall review the determination by the local government and consider the conditions listed
63.29in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local
63.30area to designate a business as a Minnesota job creation fund business.
64.1(d) If the commissioner designates a business as a Minnesota job creation fund business,
64.2the business subsidy agreement shall include the performance outcome commitments and
64.3the expected financial value of any Minnesota job creation fund benefits.
64.4(e) The commissioner may amend an agreement once, upon request of a local government
64.5on behalf of a business, only if the performance is expected to exceed thresholds stated in
64.6the original agreement.
64.7(f) A business may apply to be designated as a Minnesota job creation fund business at
64.8the same location more than once only if all goals under a previous Minnesota job creation
64.9fund agreement have been met and the agreement is completed.

64.10    Sec. 6. Minnesota Statutes 2016, section 116J.8748, subdivision 4, is amended to read:
64.11    Subd. 4. Certification; benefits. (a) The commissioner may certify a Minnesota job
64.12creation fund business as eligible to receive a specific value of benefit under paragraphs (b)
64.13and (c) when the business has achieved its job creation and capital investment goals noted
64.14in its agreement under subdivision 3.
64.15(b) A qualified Minnesota job creation fund business may be certified eligible for the
64.16benefits in this paragraph for up to five years for projects located in the metropolitan area
64.17as defined in section 200.02, subdivision 24, and seven years for projects located outside
64.18the metropolitan area, as determined by the commissioner when considering the best interests
64.19of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a),
64.20clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located
64.21outside the metropolitan area may be for up to seven years in length. The eligibility for the
64.22following benefits begins the date the commissioner certifies the business as a qualified
64.23Minnesota job creation fund business under this subdivision:
64.24(1) up to five percent rebate for projects located in the metropolitan area as defined in
64.25section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan
64.26area, on capital investment on qualifying purchases as provided in subdivision 5 with the
64.27total rebate for a project not to exceed $500,000;
64.28(2) an award of up to $500,000 based on full-time job creation and wages paid as provided
64.29in subdivision 6 with the total award not to exceed $500,000;
64.30(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards
64.31are allowable for projects that have at least $25,000,000 in capital investment and 200 new
64.32employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75
64.33new employees for projects located outside the metropolitan area;
65.1(4) up to $1,000,000 in capital investment rebates are allowable for projects that have
65.2at least $25,000,000 in capital investment and 200 retained employees for projects located
65.3in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for
65.4projects located outside the metropolitan area; and
65.5(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
65.6include the installation and purchases of machinery and equipment. These expenditures are
65.7not eligible for the capital investment rebate provided under subdivision 5.
65.8(c) The job creation award may be provided in multiple years as long as the qualified
65.9Minnesota job creation fund business continues to meet the job creation goals provided for
65.10in its agreement under subdivision 3 and the total award does not exceed $500,000 except
65.11as provided under paragraph (b), clauses (3) and (4).
65.12(d) No rebates or award may be provided until the Minnesota job creation fund business
65.13or a third party constructing or managing the project has at least $500,000 in capital
65.14investment in the project and at least ten full-time jobs have been created and maintained
65.15for at least one year or the retained employees, as provided in paragraph (b), clause (4),
65.16remain for at least one year. The agreement may require additional performance outcomes
65.17that need to be achieved before rebates and awards are provided. If fewer retained jobs are
65.18maintained, but still above the minimum under this subdivision, the capital investment
65.19award shall be reduced on a proportionate basis.
65.20(e) The forms needed to be submitted to document performance by the Minnesota job
65.21creation fund business must be in the form and be made under the procedures specified by
65.22the commissioner. The forms shall include documentation and certification by the business
65.23that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66,
65.24and other provisions as specified by the commissioner.
65.25(f) Minnesota job creation fund businesses must pay each new full-time employee added
65.26pursuant to the agreement total compensation, including benefits not mandated by law, that
65.27on an annualized basis is equal to at least 110 percent of the federal poverty level for a
65.28family of four.
65.29(g) A Minnesota job creation fund business must demonstrate reasonable progress on
65.30its capital investment expenditures within six months following designation as a Minnesota
65.31job creation fund business to ensure that the capital investment goal in the agreement under
65.32subdivision 1 will be met. Businesses not making reasonable progress will not be eligible
65.33for benefits under the submitted application and will need to work with the local government
65.34unit to resubmit a new application and request to be a Minnesota job creation fund business.
66.1Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not
66.2be considered a default of the business subsidy agreement.

66.3    Sec. 7. Minnesota Statutes 2016, section 116J.8748, subdivision 6, is amended to read:
66.4    Subd. 6. Job creation award. (a) A qualified Minnesota job creation fund business is
66.5eligible for an annual award for each new job created and maintained by the business using
66.6the following schedule: $1,000 for each job position paying annual wages at least $26,000
66.7but less than $35,000; $2,000 for each job position paying at least $35,000 but less than
66.8$45,000; and $3,000 for each job position paying at least $45,000; and as noted in the goals
66.9under the agreement provided under subdivision 1. These awards are increased by $1,000
66.10if the business is located outside the metropolitan area as defined in section 200.02,
66.11subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans,
66.12women, or persons with a disability.
66.13(b) The job creation award schedule must be adjusted annually using the percentage
66.14increase in the federal poverty level for a family of four.
66.15(c) Minnesota job creation fund businesses seeking an award credit provided under
66.16subdivision 4 must submit forms and applications to the Department of Employment and
66.17Economic Development as prescribed by the commissioner.

66.18    Sec. 8. Minnesota Statutes 2016, section 116L.17, subdivision 1, is amended to read:
66.19    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
66.20the meanings given them in this subdivision.
66.21    (b) "Commissioner" means the commissioner of employment and economic development.
66.22    (c) "Dislocated worker" means an individual who is a resident of Minnesota at the time
66.23employment ceased or was working in the state at the time employment ceased and:
66.24    (1) has been permanently separated or has received a notice of permanent separation
66.25from public or private sector employment and is eligible for or has exhausted entitlement
66.26to unemployment benefits, and is unlikely to return to the previous industry or occupation;
66.27    (2) has been long-term unemployed and has limited opportunities for employment or
66.28reemployment in the same or a similar occupation in the area in which the individual resides,
66.29including older individuals who may have substantial barriers to employment by reason of
66.30age;
67.1    (3) has been terminated or has received a notice of termination of employment as a result
67.2of a plant closing or a substantial layoff at a plant, facility, or enterprise;
67.3    (4) has been self-employed, including farmers and ranchers, and is unemployed as a
67.4result of general economic conditions in the community in which the individual resides or
67.5because of natural disasters;
67.6    (5) MS 2011 Supp [Expired, 2011 c 84 art 3 s 1]
67.7    (6) (5) is a veteran as defined by section 197.447, has been discharged or released from
67.8active duty under honorable conditions within the last 36 months, and (i) is unemployed or
67.9(ii) is employed in a job verified to be below the skill level and earning capacity of the
67.10veteran;
67.11(7) (6) is an individual determined by the United States Department of Labor to be
67.12covered by trade adjustment assistance under United States Code, title 19, sections 2271 to
67.132331, as amended; or
67.14    (8) (7) is a displaced homemaker. A "displaced homemaker" is an individual who has
67.15spent a substantial number of years in the home providing homemaking service and (i) has
67.16been dependent upon the financial support of another; and now due to divorce, separation,
67.17death, or disability of that person, must find employment to self support; or (ii) derived the
67.18substantial share of support from public assistance on account of dependents in the home
67.19and no longer receives such support. To be eligible under this clause, the support must have
67.20ceased while the worker resided in Minnesota.
67.21For the purposes of this section, "dislocated worker" does not include an individual who
67.22was an employee, at the time employment ceased, of a political committee, political fund,
67.23principal campaign committee, or party unit, as those terms are used in chapter 10A, or an
67.24organization required to file with the federal elections commission.
67.25    (d) "Eligible organization" means a state or local government unit, nonprofit organization,
67.26community action agency, business organization or association, or labor organization.
67.27    (e) "Plant closing" means the announced or actual permanent shutdown of a single site
67.28of employment, or one or more facilities or operating units within a single site of
67.29employment.
67.30    (f) "Substantial layoff" means a permanent reduction in the workforce, which is not a
67.31result of a plant closing, and which results in an employment loss at a single site of
67.32employment during any 30-day period for at least 50 employees excluding those employees
67.33that work less than 20 hours per week.

68.1    Sec. 9. Minnesota Statutes 2016, section 116L.665, is amended to read:
68.2116L.665 WORKFORCE DEVELOPMENT COUNCIL BOARD.
68.3    Subdivision 1. Creation. The governor's Workforce Development Council is created
68.4under the authority of the Workforce Investment Act, United States Code, title 29, section
68.52801, et seq. Local workforce development councils are authorized under the Workforce
68.6Investment Act. The governor's Workforce Development Council serves as Minnesota's
68.7Workforce Investment Board for the purposes of the federal Workforce Investment Act.
68.8Board serves as Minnesota's state workforce development board for the purposes of the
68.9federal Workforce Innovation and Opportunity Act, United States Code, title 29, section
68.103111, and must perform the duties under that act.
68.11    Subd. 2. Membership. (a) The governor's Workforce Development Council Board is
68.12composed of 31 members appointed by the governor. The members may be removed pursuant
68.13to section 15.059. In selecting the representatives of the council board, the governor shall
68.14ensure that 50 percent a majority of the members come from nominations provided by local
68.15workforce councils. Local education representatives shall come from nominations provided
68.16by local education to employment partnerships. The 31 members shall represent the following
68.17sectors: the private sector, pursuant to United States Code, title 29, section 3111. For the
68.18public members, membership terms, compensation of members, and removal of members
68.19are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable, the
68.20membership should be balanced as to gender and ethnic diversity.
68.21(a) State agencies: the following individuals shall serve on the council:
68.22(1) commissioner of the Minnesota Department of Employment and Economic
68.23Development;
68.24(2) commissioner of the Minnesota Department of Education; and
68.25(3) commissioner of the Minnesota Department of Human Services.
68.26(b) Business and industry: six individuals shall represent the business and industry sectors
68.27of Minnesota.
68.28(c) Organized labor: six individuals shall represent labor organizations of Minnesota.
68.29(d) Community-based organizations: four individuals shall represent community-based
68.30organizations of Minnesota. Community-based organizations are defined by the Workforce
68.31Investment Act as private nonprofit organizations that are representative of communities
68.32or significant segments of communities and that have demonstrated expertise and
68.33effectiveness in the field of workforce investment and may include entities that provide job
69.1training services, serve youth, serve individuals with disabilities, serve displaced
69.2homemakers, union-related organizations, employer-related nonprofit organizations, and
69.3organizations serving nonreservation Indians and tribal governments.
69.4(e) Education: six individuals shall represent the education sector of Minnesota as follows:
69.5(1) one individual shall represent local public secondary education;
69.6(2) one individual shall have expertise in design and implementation of school-based
69.7service-learning;
69.8(3) one individual shall represent leadership of the University of Minnesota;
69.9(4) one individual shall represent secondary/postsecondary vocational institutions;
69.10(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and
69.11Universities; and
69.12(6) one individual shall have expertise in agricultural education.
69.13(f) Other: two individuals shall represent other constituencies including:
69.14(1) units of local government; and
69.15(2) applicable state or local programs.
69.16The speaker and the minority leader of the house of representatives shall each appoint
69.17a representative to serve as an ex officio member of the council. The majority and minority
69.18leaders of the senate shall each appoint a senator to serve as an ex officio member of the
69.19council.
69.20The governor shall appoint one individual representing public libraries, one individual
69.21with expertise in assisting women in obtaining employment in high-wage, high-demand,
69.22nontraditional occupations, and one individual representing adult basic education programs
69.23to serve as nonvoting advisors to the council.
69.24(b) No person shall serve as a member of more than one category described in paragraph
69.25(c).
69.26(c) Voting members shall consist of the following:
69.27(1) the governor or the governor's designee;
69.28(2) two members of the house of representatives, one appointed by the speaker of the
69.29house and one appointed by the minority leader of the house of representatives;
70.1(3) two members of the senate, one appointed by the senate majority leader and one
70.2appointed by the senate minority leader;
70.3(4) a majority of the members must be representatives of businesses in the state appointed
70.4by the governor who:
70.5(i) are owners of businesses, chief executives, or operating officers of businesses, or
70.6other business executives or employers with optimum policy-making or hiring authority
70.7and who, in addition, may be members of a local board under United States Code, title 29,
70.8section 3122(b)(2)(A)(i);
70.9(ii) represent businesses, including small businesses, or organizations representing
70.10businesses that provide employment opportunities that, at a minimum, include high-quality,
70.11work-relevant training and development in in-demand industry sectors or occupations in
70.12the state; and
70.13(iii) are appointed from individuals nominated by state business organizations and
70.14business trade associations;
70.15(5) six representatives of labor organizations appointed by the governor, including:
70.16(i) representatives of labor organizations who have been nominated by state labor
70.17federations; and
70.18(ii) a member of a labor organization or a training director from a joint labor organization;
70.19(6) commissioners of the state agencies with primary responsibility for core programs
70.20identified within the state plan including:
70.21(i) the Department of Employment and Economic Development;
70.22(ii) the Department of Education; and
70.23(iii) the Department of Human Services;
70.24(7) two chief elected officials, appointed by the governor, collectively representing cities
70.25and counties;
70.26(8) two representatives who are people of color or people with disabilities, appointed
70.27by the governor, of community-based organizations that have demonstrated experience and
70.28expertise in addressing the employment, training, or education needs of individuals with
70.29barriers to employment; and
71.1(9) four officials responsible for education programs in the state, appointed by the
71.2governor, including chief executive officers of community colleges and other institutions
71.3of higher education, including:
71.4(i) the chancellor of the Minnesota State Colleges and Universities;
71.5(ii) the president of the University of Minnesota;
71.6(iii) a president from a private postsecondary school; and
71.7(iv) a representative of career and technical education.
71.8(d) The nonvoting members of the board shall be appointed by the governor and consist
71.9of one of each of the following:
71.10(1) a representative of Adult Basic Education;
71.11(2) a representative of public libraries;
71.12(3) a person with expertise in women's economic security;
71.13(4) the chair or executive director of the Minnesota Workforce Council Association;
71.14(5) the commissioner of labor and industry;
71.15(6) the commissioner of the Office of Higher Education;
71.16(7) the commissioner of corrections;
71.17(8) the commissioner of management and budget;
71.18(9) two representatives of community-based organizations who are people of color or
71.19people with disabilities who have demonstrated experience and expertise in addressing the
71.20employment, training, and education needs of individuals with barriers to employment;
71.21(10) a representative of secondary, postsecondary, or career-technical education;
71.22(11) a representative of school-based service learning;
71.23(12) a representative of the Council on Asian-Pacific Minnesotans;
71.24(13) a representative of the Minnesota Council on Latino Affairs;
71.25(14) a representative of the Council for Minnesotans of African Heritage;
71.26(15) a representative of the Minnesota Indian Affairs Council;
71.27(16) a representative of the Minnesota State Council on Disability; and
71.28(17) a representative of the Office on the Economic Status of Women.
72.1(g) Appointment: (e) Each member shall be appointed for a term of three years from the
72.2first day of January or July immediately following their appointment. Elected officials shall
72.3forfeit their appointment if they cease to serve in elected office.
72.4(h) Members of the council are compensated as provided in section 15.059, subdivision
72.53
.
72.6    Subd. 2a. Council Board meetings; chair. (a) If compliance with section 13D.02 is
72.7impractical, the Governor's Workforce Development Council may conduct a meeting of its
72.8members by telephone or other electronic means so long as the following conditions are
72.9met:
72.10(1) all members of the council participating in the meeting, wherever their physical
72.11location, can hear one another and can hear all discussion and testimony;
72.12(2) members of the public present at the regular meeting location of the council can hear
72.13clearly all discussion and testimony and all votes of members of the council and, if needed,
72.14receive those services required by sections 15.44 and 15.441;
72.15(3) at least one member of the council is physically present at the regular meeting location;
72.16and
72.17(4) all votes are conducted by roll call, so each member's vote on each issue can be
72.18identified and recorded.
72.19(b) Each member of the council participating in a meeting by telephone or other electronic
72.20means is considered present at the meeting for purposes of determining a quorum and
72.21participating in all proceedings.
72.22(c) If telephone or other electronic means is used to conduct a meeting, the council, to
72.23the extent practical, shall allow a person to monitor the meeting electronically from a remote
72.24location. The council may require the person making such a connection to pay for
72.25documented marginal costs that the council incurs as a result of the additional connection.
72.26(d) If telephone or other electronic means is used to conduct a regular, special, or
72.27emergency meeting, the council shall provide notice of the regular meeting location, of the
72.28fact that some members may participate by telephone or other electronic means, and of the
72.29provisions of paragraph (c). The timing and method of providing notice is governed by
72.30section 13D.04.
72.31(a) The board shall hold regular in-person meetings at least quarterly and as often as
72.32necessary to perform the duties outlined in the statement of authority and the board's bylaws.
73.1Meetings shall be called by the chair. Special meetings may be called as needed. Notices
73.2of all meetings shall be made at least 48 hours before the meeting date.
73.3(b) The governor shall designate a chair from among the appointed business representative
73.4voting members. The chair shall approve an agenda for each meeting. Members shall submit
73.5a written request for consideration of an agenda item no less than 24 hours in advance of
73.6the meeting. Members of the public may submit a written request within 48 hours of a
73.7meeting to be considered for inclusion in the agenda. Members of the public attending a
73.8meeting of the board may address the board only with the approval or at the request of the
73.9chair.
73.10(c) All meeting notices must be posted on the board's Web site. All meetings of the board
73.11and committees must be open to the public. The board must make available to the public,
73.12on a regular basis through electronic means and open meetings, information regarding the
73.13activities of the board, information regarding membership, and, on request, minutes of
73.14formal meetings of the board.
73.15(d) For the purpose of conducting business before the board at a duly called meeting, a
73.16simple majority of the voting members, excluding any vacancies, constitutes a quorum.
73.17    Subd. 3. Purpose; duties. The governor's Workforce Development Council shall replace
73.18the governor's Job Training Council and assume all of its requirements, duties, and
73.19responsibilities under the Workforce Investment Act. Additionally, the Workforce
73.20Development Council shall assume the following duties and responsibilities:
73.21(a) Review the provision of services and the use of funds and resources under applicable
73.22federal human resource programs and advise the governor on methods of coordinating the
73.23provision of services and the use of funds and resources consistent with the laws and
73.24regulations governing the programs. For purposes of this section, applicable federal and
73.25state human resource programs mean the:
73.26(1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.;
73.27(2) Carl D. Perkins Vocational and Applied Technology Education Act, United States
73.28Code, title 20, section 2301, et seq.;
73.29(3) Adult Education Act, United States Code, title 20, section 1201, et seq.;
73.30(4) Wagner-Peyser Act, United States Code, title 29, section 49;
73.31(5) Personal Responsibility and Work Opportunities Act of 1996 (TANF);
74.1(6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp
74.2Employment and Training Program, United States Code, title 7, section 2015(d)(4); and
74.3(7) programs defined in section 116L.19, subdivision 5.
74.4Additional federal and state programs and resources can be included within the scope
74.5of the council's duties if recommended by the governor after consultation with the council.
74.6(b) Review federal, state, and local education, postsecondary, job skills training, and
74.7youth employment programs, and make recommendations to the governor and the legislature
74.8for establishing an integrated seamless system for providing education and work skills
74.9development services to learners and workers of all ages.
74.10(c) Advise the governor on the development and implementation of statewide and local
74.11performance standards and measures relating to applicable federal human resource programs
74.12and the coordination of performance standards and measures among programs.
74.13(d) Promote education and employment transitions programs and knowledge and skills
74.14of entrepreneurship among employers, workers, youth, and educators, and encourage
74.15employers to provide meaningful work-based learning opportunities.
74.16(e) Evaluate and identify exemplary education and employment transitions programs
74.17and provide technical assistance to local partnerships to replicate the programs throughout
74.18the state.
74.19(f) Advise the governor on methods to evaluate applicable federal human resource
74.20programs.
74.21(g) Sponsor appropriate studies to identify human investment needs in Minnesota and
74.22recommend to the governor goals and methods for meeting those needs.
74.23(h) Recommend to the governor goals and methods for the development and coordination
74.24of a human resource system in Minnesota.
74.25(i) Examine federal and state laws, rules, and regulations to assess whether they present
74.26barriers to achieving the development of a coordinated human resource system.
74.27(j) Recommend to the governor and to the federal government changes in state or federal
74.28laws, rules, or regulations concerning employment and training programs that present barriers
74.29to achieving the development of a coordinated human resource system.
74.30(k) Recommend to the governor and to the federal government waivers of laws and
74.31regulations to promote coordinated service delivery.
75.1(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic
75.2plan which details methods for meeting Minnesota's human investment needs and for
75.3developing and coordinating a state human resource system.
75.4(m) Provide the commissioner of employment and economic development and the
75.5committees of the legislature with responsibility for economic development with
75.6recommendations provided to the governor under this subdivision.
75.7(n) In consultation with local workforce councils and the Department of Employment
75.8and Economic Development, develop an ongoing process to identify and address local gaps
75.9in workforce services.
75.10    Subd. 4. Executive committee duties. The executive committee must, with advice and
75.11input of local workforce councils boards and other stakeholders as appropriate, develop
75.12performance standards for the state workforce centers. By January 15, 2002 2019, and each
75.13odd-numbered year thereafter, the executive committee shall submit a report to the senate
75.14and house of representatives committees with jurisdiction over workforce development
75.15programs regarding the performance and outcomes of the workforce centers. The report
75.16must provide recommendations regarding workforce center funding levels and sources,
75.17program changes, and administrative changes.
75.18    Subd. 5. Subcommittees. The chair of the Workforce Development Council Board may
75.19establish subcommittees in order to carry out the duties and responsibilities of the council
75.20board.
75.21    Subd. 6. Staffing. The Department of commissioner of employment and economic
75.22development must provide staff, including but not limited to professional, technical, and
75.23clerical staff to the board necessary to perform the duties assigned to the Minnesota
75.24Workforce Development Council. All staff report to the commissioner carry out the duties
75.25of the board. The council may ask for assistance from other units of At the request of the
75.26board, state government as departments and agencies must provide the board with the
75.27assistance it requires in order to fulfill its duties and responsibilities.
75.28    Subd. 7. Expiration. The council board expires if there is no federal funding for the
75.29human resource programs within the scope of the council's board's duties.
75.30    Subd. 8. Funding. The commissioner shall develop recommendations on a funding
75.31formula for allocating Workforce Investment Act funds to the council with a minimum
75.32allocation of employment and economic development must provide at least $350,000 per
75.33each fiscal year. The commissioner shall report the funding formula recommendations to
76.1the legislature by January 15, 2011 from existing agency resources to the board for staffing
76.2and administrative expenses.

76.3    Sec. 10. Minnesota Statutes 2016, section 116M.14, subdivision 4, is amended to read:
76.4    Subd. 4. Low-income area. "Low-income area" means:
76.5(1) Minneapolis, St. Paul;
76.6(2) those cities in the metropolitan area as defined in section 473.121, subdivision 2,
76.7that have an average income a median income for a family of four that is below 80 percent
76.8of the median income for a four-person family as of the latest report by the United States
76.9Census Bureau; and
76.10(3) the area outside the metropolitan area.

76.11    Sec. 11. Minnesota Statutes 2016, section 116M.17, subdivision 4, is amended to read:
76.12    Subd. 4. Reports. The board department shall submit an annual report to the legislature
76.13of an accounting of loans made under section 116M.18, including information on loans
76.14made, the number of jobs created by the program, the impact on low-income areas, and
76.15recommendations concerning minority business development and jobs for persons in
76.16low-income areas.

76.17    Sec. 12. Minnesota Statutes 2016, section 116M.18, subdivision 1a, is amended to read:
76.18    Subd. 1a. Statewide loans. To the extent there is sufficient eligible demand, loans shall
76.19be made so that an approximately equal dollar amount of loans are made to businesses in
76.20the metropolitan area as in the nonmetropolitan area. After September 30 March 31 of each
76.21calendar fiscal year, the department may allow loans to be made anywhere in the state
76.22without regard to geographic area.

76.23    Sec. 13. Minnesota Statutes 2016, section 116M.18, subdivision 4, is amended to read:
76.24    Subd. 4. Business loan criteria. (a) The criteria in this subdivision apply to loans made
76.25by nonprofit corporations under the program.
76.26(b) Loans must be made to businesses that are not likely to undertake a project for which
76.27loans are sought without assistance from the program.
76.28(c) A loan must be used to support a business owned by a minority or a low-income
76.29person, woman, veteran, or a person with disabilities. Priority must be given for loans to
76.30the lowest income areas.
77.1(d) The minimum state contribution to a loan is $5,000 and the maximum is $150,000.
77.2(e) The state contribution must be matched by at least an equal amount of new private
77.3investment.
77.4(f) A loan may not be used for a retail development project.
77.5(g) The business must agree to work with job referral networks that focus on minority
77.6and low-income applicants.
77.7(h) Up to ten percent of a loan's principal amount may be forgiven if the department
77.8approves and the borrower has met lender criteria including being current with all payments.

77.9    Sec. 14. Minnesota Statutes 2016, section 116M.18, subdivision 4a, is amended to read:
77.10    Subd. 4a. Microenterprise loan. (a) Program grants may be used to make microenterprise
77.11loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans
77.12are subject to this section except that:
77.13(1) they may also be made to qualified retail businesses;
77.14(2) they may be made for a minimum of $5,000 and a maximum of $35,000;
77.15(3) in a low-income area, they may be made for a minimum of $5,000 and a maximum
77.16of $50,000; and
77.17(4) they do not require a match.
77.18(b) Up to ten percent of a loan's principal amount may be forgiven if the department
77.19approves and the borrower has met lender criteria including being current with all payments.

77.20    Sec. 15. Minnesota Statutes 2016, section 116M.18, subdivision 8, is amended to read:
77.21    Subd. 8. Reporting requirements. A nonprofit corporation that receives a program
77.22grant shall:
77.23(1) submit an annual report to the board and department by March 30 February 15 of
77.24each year that includes a description of businesses supported by the grant program, an
77.25account of loans made during the calendar year, the program's impact on minority business
77.26enterprises and job creation for minority persons and low-income persons, the source and
77.27amount of money collected and distributed by the program, the program's assets and
77.28liabilities, and an explanation of administrative expenses; and
78.1(2) provide for an independent annual audit to be performed in accordance with generally
78.2accepted accounting practices and auditing standards and submit a copy of each annual
78.3audit report to the department.

78.4    Sec. 16. Laws 2014, chapter 312, article 2, section 14, as amended by Laws 2016, chapter
78.5189, article 7, section 8, is amended to read:
78.6    Sec. 14. ASSIGNED RISK TRANSFER.
78.7(a) By June 30, 2015, if the commissioner of commerce determines on the basis of an
78.8audit that there is an excess surplus in the assigned risk plan created under Minnesota
78.9Statutes, section 79.252, the commissioner of management and budget shall transfer the
78.10amount of the excess surplus, not to exceed $10,500,000, to the general fund. This transfer
78.11occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
78.12paragraph (a), clause (1). This is a onetime transfer.
78.13(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce
78.14determines on the basis of an audit that there is an excess surplus in the assigned risk plan
78.15created under Minnesota Statutes, section 79.252, the commissioner of management and
78.16budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each year,
78.17to the Minnesota minerals 21st century fund under Minnesota Statutes, section 116J.423.
78.18This transfer occurs prior to any transfer under Minnesota Statutes, section 79.251,
78.19subdivision 1
, paragraph (a), clause (1), but after the transfer transfers authorized in paragraph
78.20paragraphs (a) and (f). The total amount authorized for all transfers under this paragraph
78.21must not exceed $24,100,000. This paragraph expires the day following the transfer in which
78.22the total amount transferred under this paragraph to the Minnesota minerals 21st century
78.23fund equals $24,100,000.
78.24(c) By June 30, 2015, if the commissioner of commerce determines on the basis of an
78.25audit that there is an excess surplus in the assigned risk plan created under Minnesota
78.26Statutes, section 79.252, the commissioner of management and budget shall transfer the
78.27amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
78.28occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
78.29paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If a
78.30transfer occurs under this paragraph, the amount transferred is appropriated from the general
78.31fund in fiscal year 2015 to the commissioner of labor and industry for the purposes of section
78.3215. Both the transfer and appropriation under this paragraph are onetime.
78.33(d) By June 30, 2016, if the commissioner of commerce determines on the basis of an
78.34audit that there is an excess surplus in the assigned risk plan created under Minnesota
79.1Statutes, section 79.252, the commissioner of management and budget shall transfer the
79.2amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer
79.3occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1,
79.4paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If a
79.5transfer occurs under this paragraph, the amount transferred is appropriated from the general
79.6fund in fiscal year 2016 to the commissioner of labor and industry for the purposes of section
79.715. Both the transfer and appropriation under this paragraph are onetime.
79.8(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of
79.9management and budget shall transfer to the general fund, any unencumbered or unexpended
79.10balance of the appropriations under paragraphs (c) and (d) remaining on June 30, 2016, or
79.11the date the commissioner of commerce determines that an excess surplus in the assigned
79.12risk plan does not exist, whichever occurs earlier.
79.13(f) By June 30, 2017, and each year thereafter, if the commissioner of commerce
79.14determines on the basis of an audit that there is an excess surplus in the assigned risk plan
79.15created under Minnesota Statutes, section 79.252, the commissioner of management and
79.16budget shall transfer the amount of the excess surplus, not to exceed $2,000,000 each year,
79.17to the rural policy and development center fund under Minnesota Statutes, section 116J.4221.
79.18This transfer occurs prior to any transfer under paragraph (b) or under Minnesota Statutes,
79.19section 79.251, subdivision 1, paragraph (a), clause (1). The total amount authorized for all
79.20transfers under this paragraph must not exceed $2,000,000. This paragraph expires the day
79.21following the transfer in which the total amount transferred under this paragraph to the rural
79.22policy and development center fund equals $2,000,000.
79.23EFFECTIVE DATE.This section is effective the day following final enactment.

79.24    Sec. 17. Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 6, is
79.25amended to read:
79.26
Subd. 6.Vocational Rehabilitation
79.27
Appropriations by Fund
79.28
General
22,611,000
21,611,000
79.29
79.30
Workforce
Development
7,830,000
7,830,000
79.31(a) $10,800,000 each year is from the general
79.32fund for the state's vocational rehabilitation
79.33program under Minnesota Statutes, chapter
79.34268A.
80.1(b) $2,261,000 each year is from the general
80.2fund for grants to centers for independent
80.3living under Minnesota Statutes, section
80.4268A.11 .
80.5(c) $5,745,000 each year from the general fund
80.6and $6,830,000 each year from the workforce
80.7development fund are for extended
80.8employment services for persons with severe
80.9disabilities under Minnesota Statutes, section
80.10268A.15 .
80.11(d) $250,000 in fiscal year 2016 and $250,000
80.12in fiscal year 2017 are for rate increases to
80.13providers of extended employment services
80.14for persons with severe disabilities under
80.15Minnesota Statutes, section 268A.15. This
80.16appropriation is added to the agency's base.
80.17(e) $2,555,000 each year is from the general
80.18fund for grants to programs that provide
80.19employment support services to persons with
80.20mental illness under Minnesota Statutes,
80.21sections 268A.13 and 268A.14.
80.22(f) $1,000,000 each year is from the workforce
80.23development fund for grants under Minnesota
80.24Statutes, section 268A.16, for employment
80.25services for persons, including transition-aged
80.26youth, who are deaf, deafblind, or
80.27hard-of-hearing. If the amount in the first year
80.28is insufficient, the amount in the second year
80.29is available in the first year.
80.30(g) $1,000,000 in fiscal year 2016 is for a
80.31grant to Assistive Technology of Minnesota,
80.32a statewide nonprofit organization that is
80.33exclusively dedicated to the issues of access
80.34to and the acquisition of assistive technology.
81.1The purpose of the grant is to acquire assistive
81.2technology and to work in tandem with
81.3individuals using this technology to create
81.4career paths Assistive Technology of
81.5Minnesota must use the funds to provide
81.6low-interest loans to individuals of all ages
81.7and types of disabilities to purchase assistive
81.8technology and employment-related
81.9equipment. This is a onetime appropriation.
81.10(h) For purposes of this subdivision,
81.11Minnesota Diversified Industries, Inc. is an
81.12eligible provider of services for persons with
81.13severe disabilities under Minnesota Statutes,
81.14section 268A.15.
81.15EFFECTIVE DATE.This section is effective retroactively from July 1, 2015.

81.16    Sec. 18. Laws 2016, chapter 189, article 7, section 46, subdivision 3, is amended to read:
81.17    Subd. 3. Qualification requirements. To qualify for assistance under this section, a
81.18business must:
81.19(1) be located within one of the following municipalities surrounding Lake Mille Lacs:
81.20(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
81.21Roosevelt;
81.22(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of
81.23Malmo, or township of Lakeside; or
81.24(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of
81.25East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
81.26(2) document a reduction of at least ten five percent in gross receipts in any two-year
81.27period since 2010; and
81.28(3) be a business in one of the following industries, as defined within the North American
81.29Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
81.30food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
81.31historical sites, health and personal care, gas station, general merchandise, business and
82.1professional membership, movies, or nonstore retailer, as determined by Mille Lacs County
82.2in consultation with the commissioner of employment and economic development.

82.3    Sec. 19. Laws 2016, chapter 189, article 7, section 46, the effective date, is amended to
82.4read:
82.5EFFECTIVE DATE.This section, except for subdivision 4, is effective July 1, 2016,
82.6and expires June 30, 2017 2018. Subdivision 4 is effective July 1, 2016, and expires on the
82.7date the last loan is repaid or forgiven as provided under this section.

82.8    Sec. 20. EMERGING ENTREPRENEUR PROGRAM APPROPRIATIONS
82.9CANCELLATIONS.
82.10All unspent funds, estimated to be $376,000, appropriated in Laws 2016, chapter 189,
82.11article 7, section 2, subdivision 2, paragraph (h), clause (7), and Laws 2016, chapter 189,
82.12article 12, section 2, subdivision 2, paragraph (p), are canceled to the general fund.
82.13EFFECTIVE DATE.This section is effective the day following final enactment.

82.14    Sec. 21. GREATER MINNESOTA COMMUNITY DESIGN PILOT PROJECT.
82.15    Subdivision 1. Creation. The Minnesota Design Center at the University of Minnesota
82.16shall partner with relevant organizations in selected communities within greater Minnesota
82.17to establish a pilot project for community design. The pilot project shall identify current
82.18and future opportunities for rural development, create designs, seek funding from existing
82.19sources, and assist with the implementation of economically, environmentally, and culturally
82.20sensitive projects that respond to current community conditions, needs, capabilities, and
82.21aspirations in support of the selected communities. For the purposes of this section, "greater
82.22Minnesota" is limited to the following counties: Blue Earth, Brown, Dodge, Faribault,
82.23Fillmore, Freeborn, Goodhue, Houston, Le Sueur, Martin, Mower, Olmsted, Rice, Sibley,
82.24Steele, Wabasha, Waseca, Watonwan, and Winona.
82.25    Subd. 2. Community selection. In order to be considered for inclusion in the pilot
82.26project, communities with fewer than 12,000 residents within the counties listed in
82.27subdivision 1 must submit a letter of interest to the Minnesota Design Center. The Minnesota
82.28Design Center may choose up to ten communities for participation in the pilot project.
82.29    Subd. 3. Pilot project activities. Among other activities, the Minnesota Design Center,
82.30in partnership with relevant organizations within the selected communities, shall:
82.31(1) assess community capacity to engage in design, development, and implementation;
83.1(2) create community and project designs that respond to a community's culture and
83.2needs, reinforce its identity as a special place, and support its future aspirations;
83.3(3) create an implementation strategy; and
83.4(4) build capacity to implement design work by identifying potential funding strategies
83.5and sources and assisting in grant writing to secure funding.

83.6    Sec. 22. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT;
83.7MANDATED REPORT HOLIDAY.
83.8(a) Notwithstanding any law to the contrary, any report required by state law from the
83.9Department of Employment and Economic Development that is due in fiscal year 2018 or
83.102019 is optional. The commissioner of employment and economic development may produce
83.11any reports at the commissioner's discretion or as may be required by federal law.
83.12(b) This section does not apply to workforce programs outcomes reporting under
83.13Minnesota Statutes, section 116L.98, or the agency activity and expenditure report under
83.14article 12, section 3.

83.15    Sec. 23. ONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA
83.16INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
83.17(a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or
83.18statutory city, county, or town that has uncommitted money received from repayment of
83.19funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20
83.20percent of the balance of that money to the state general fund before June 30, 2018. Any
83.21local entity that does so may then use the remaining 80 percent of the uncommitted money
83.22as a general purpose aid for any lawful expenditure.
83.23(b) By February 15, 2019, a home rule charter or statutory city, county, or town that
83.24exercises the option under paragraph (a) shall submit to the chairs of the legislative
83.25committees with jurisdiction over economic development policy and finance an accounting
83.26and explanation of the use and distribution of the funds.

83.27    Sec. 24. GETTING TO WORK GRANT PROGRAM.
83.28    Subdivision 1. Creation. The commissioner of employment and economic development
83.29shall make grants to nonprofit organizations to establish and operate programs under this
83.30section that provide, repair, or maintain motor vehicles to assist eligible individuals to obtain
83.31or maintain employment.
84.1    Subd. 2. Qualified grantee. A grantee must:
84.2(1) qualify under section 501(c)(3) of the Internal Revenue Code; and
84.3(2) at the time of application offer, or have the demonstrated capacity to offer, a motor
84.4vehicle program that provides the services required under subdivision 3.
84.5    Subd. 3. Program requirements. (a) A program must offer one or more of the following
84.6services:
84.7(1) provision of new or used motor vehicles by gift, sale, or lease;
84.8(2) motor vehicle repair and maintenance services; or
84.9(3) motor vehicle loans.
84.10(b) In addition to the requirements of paragraph (a), a program must offer one or more
84.11of the following services:
84.12(1) financial literacy education;
84.13(2) education on budgeting for vehicle ownership;
84.14(3) car maintenance and repair instruction;
84.15(4) credit counseling; or
84.16(5) job training related to motor vehicle maintenance and repair.
84.17    Subd. 4. Application. Applications for a grant must be on a form provided by the
84.18commissioner and on a schedule set by the commissioner. Applications must, in addition
84.19to any other information required by the commissioner, include the following:
84.20(1) a detailed description of all services to be offered;
84.21(2) the area to be served;
84.22(3) the estimated number of program participants to be served by the grant; and
84.23(4) a plan for leveraging resources from partners that may include, but are not limited
84.24to:
84.25(i) automobile dealers;
84.26(ii) automobile parts dealers;
84.27(iii) independent local mechanics and automobile repair facilities;
84.28(iv) banks and credit unions;
84.29(v) employers;
85.1(vi) employment and training agencies;
85.2(vii) insurance companies and agents;
85.3(viii) local workforce centers; and
85.4(ix) educational institutions including vocational institutions and jobs or skills training
85.5programs.
85.6    Subd. 5. Participant eligibility. (a) To be eligible to receive program services, a person
85.7must:
85.8(1) have a household income at or below 200 percent of the federal poverty level;
85.9(2) be at least 22 years of age;
85.10(3) have a valid driver's license;
85.11(4) provide the grantee with proof of motor vehicle insurance; and
85.12(5) demonstrate to the grantee that a motor vehicle is required by the person to obtain
85.13or maintain employment.
85.14(b) This subdivision does not preclude a grantee from imposing additional requirements,
85.15not inconsistent with paragraph (a), for the receipt of program services.
85.16    Subd. 6. Report to legislature. By February 15, 2019, the commissioner shall submit
85.17a report to the chairs of the house of representatives and senate committees with jurisdiction
85.18over workforce and economic development on program outcomes. At a minimum, the report
85.19must include:
85.20(1) the total number of program participants;
85.21(2) the number of program participants who received each of the following:
85.22(i) provision of a motor vehicle;
85.23(ii) motor vehicle repair services; and
85.24(iii) motor vehicle loans;
85.25(3) the number of program participants who report that they or their children were able
85.26to increase their participation in community activities such as after school programs, other
85.27youth programs, church or civic groups, or library services as a result of participation in the
85.28program; and
85.29(4) an analysis of the impact of the getting to work grant program on the employment
85.30rate and wages of program participants.

86.1    Sec. 25. REPEALER.
86.2Minnesota Statutes 2016, section 116J.549, and Minnesota Rules, parts 4355.0100;
86.34355.0200; 4355.0300; 4355.0400; and 4355.0500, are repealed.

86.4ARTICLE 4
86.5IRON RANGE RESOURCES AND REHABILITATION POLICY

86.6    Section 1. Minnesota Statutes 2016, section 3.732, subdivision 1, is amended to read:
86.7    Subdivision 1. Definitions. As used in this section and section 3.736 the terms defined
86.8in this section have the meanings given them.
86.9    (1) "State" includes each of the departments, boards, agencies, commissions, courts, and
86.10officers in the executive, legislative, and judicial branches of the state of Minnesota and
86.11includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
86.12Education, the Higher Education Facilities Authority, the Health Technology Advisory
86.13Committee, the Armory Building Commission, the Zoological Board, the Department of
86.14Iron Range Resources and Rehabilitation Board, the Minnesota Historical Society, the State
86.15Agricultural Society, the University of Minnesota, the Minnesota State Colleges and
86.16Universities, state hospitals, and state penal institutions. It does not include a city, town,
86.17county, school district, or other local governmental body corporate and politic.
86.18    (2) "Employee of the state" means all present or former officers, members, directors, or
86.19employees of the state, members of the Minnesota National Guard, members of a bomb
86.20disposal unit approved by the commissioner of public safety and employed by a municipality
86.21defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
86.22similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
86.23municipality but within the state, or persons acting on behalf of the state in an official
86.24capacity, temporarily or permanently, with or without compensation. It does not include
86.25either an independent contractor except, for purposes of this section and section 3.736 only,
86.26a guardian ad litem acting under court appointment, or members of the Minnesota National
86.27Guard while engaged in training or duty under United States Code, title 10, or title 32,
86.28section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
86.29sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
86.30of the state" includes a district public defender or assistant district public defender in the
86.31Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
86.32and any officer, agent, or employee of the state of Wisconsin performing work for the state
86.33of Minnesota pursuant to a joint state initiative.
87.1    (3) "Scope of office or employment" means that the employee was acting on behalf of
87.2the state in the performance of duties or tasks lawfully assigned by competent authority.
87.3    (4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

87.4    Sec. 2. Minnesota Statutes 2016, section 3.736, subdivision 3, is amended to read:
87.5    Subd. 3. Exclusions. Without intent to preclude the courts from finding additional cases
87.6where the state and its employees should not, in equity and good conscience, pay
87.7compensation for personal injuries or property losses, the legislature declares that the state
87.8and its employees are not liable for the following losses:
87.9(a) a loss caused by an act or omission of a state employee exercising due care in the
87.10execution of a valid or invalid statute or rule;
87.11(b) a loss caused by the performance or failure to perform a discretionary duty, whether
87.12or not the discretion is abused;
87.13(c) a loss in connection with the assessment and collection of taxes;
87.14(d) a loss caused by snow or ice conditions on a highway or public sidewalk that does
87.15not abut a publicly owned building or a publicly owned parking lot, except when the condition
87.16is affirmatively caused by the negligent acts of a state employee;
87.17(e) a loss caused by wild animals in their natural state, except as provided in section
87.183.7371 ;
87.19(f) a loss other than injury to or loss of property or personal injury or death;
87.20(g) a loss caused by the condition of unimproved real property owned by the state, which
87.21means land that the state has not improved, state land that contains idled or abandoned mine
87.22pits or shafts, and appurtenances, fixtures, and attachments to land that the state has neither
87.23affixed nor improved;
87.24(h) a loss involving or arising out of the use or operation of a recreational motor vehicle,
87.25as defined in section 84.90, subdivision 1, within the right-of-way of a trunk highway, as
87.26defined in section 160.02, except that the state is liable for conduct that would entitle a
87.27trespasser to damages against a private person;
87.28(i) a loss incurred by a user arising from the construction, operation, or maintenance of
87.29the outdoor recreation system, as defined in section 86A.04, or for a loss arising from the
87.30construction, operation, maintenance, or administration of grants-in-aid trails as defined in
87.31section 85.018, or for a loss arising from the construction, operation, or maintenance of a
87.32water access site created by the Department of Iron Range Resources and Rehabilitation
88.1Board, except that the state is liable for conduct that would entitle a trespasser to damages
88.2against a private person. For the purposes of this clause, a water access site, as defined in
88.3section 86A.04 or created by the commissioner of Iron Range resources and rehabilitation
88.4Board, that provides access to an idled, water filled mine pit, also includes the entire water
88.5filled area of the pit and, further, includes losses caused by the caving or slumping of the
88.6mine pit walls;
88.7(j) a loss of benefits or compensation due under a program of public assistance or public
88.8welfare, except if state compensation for loss is expressly required by federal law in order
88.9for the state to receive federal grants-in-aid;
88.10(k) a loss based on the failure of a person to meet the standards needed for a license,
88.11permit, or other authorization issued by the state or its agents;
88.12(l) a loss based on the usual care and treatment, or lack of care and treatment, of a person
88.13at a state hospital or state corrections facility where reasonable use of available appropriations
88.14has been made to provide care;
88.15(m) loss, damage, or destruction of property of a patient or inmate of a state institution
88.16except as provided under section 3.7381;
88.17(n) a loss for which recovery is prohibited by section 169A.48, subdivision 2;
88.18(o) a loss caused by an aeration, bubbler, water circulation, or similar system used to
88.19increase dissolved oxygen or maintain open water on the ice of public waters, that is operated
88.20under a permit issued by the commissioner of natural resources;
88.21(p) a loss incurred by a visitor to the Minnesota Zoological Garden, except that the state
88.22is liable for conduct that would entitle a trespasser to damages against a private person;
88.23(q) a loss arising out of a person's use of a logging road on public land that is maintained
88.24exclusively to provide access to timber on that land by harvesters of the timber, and is not
88.25signed or otherwise held out to the public as a public highway; and
88.26(r) a loss incurred by a user of property owned, leased, or otherwise controlled by the
88.27Minnesota National Guard or the Department of Military Affairs, except that the state is
88.28liable for conduct that would entitle a trespasser to damages against a private person.
88.29The state will not pay punitive damages.

88.30    Sec. 3. Minnesota Statutes 2016, section 15.01, is amended to read:
88.3115.01 DEPARTMENTS OF THE STATE.
89.1The following agencies are designated as the departments of the state government: the
89.2Department of Administration; the Department of Agriculture; the Department of Commerce;
89.3the Department of Corrections; the Department of Education; the Department of Employment
89.4and Economic Development; the Department of Health; the Department of Human Rights;
89.5the Department of Iron Range Resources and Rehabilitation; the Department of Labor and
89.6Industry; the Department of Management and Budget; the Department of Military Affairs;
89.7the Department of Natural Resources; the Department of Public Safety; the Department of
89.8Human Services; the Department of Revenue; the Department of Transportation; the
89.9Department of Veterans Affairs; and their successor departments.

89.10    Sec. 4. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:
89.11    Subd. 7. Department of Iron Range Resources and Rehabilitation Board. After
89.12seeking a recommendation from the Iron Range Resources and Rehabilitation Board, the
89.13commissioner of Iron Range resources and rehabilitation Board may purchase insurance it
89.14considers the commissioner deems necessary and appropriate to insure facilities operated
89.15by the board commissioner.

89.16    Sec. 5. Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:
89.17    Subd. 3. Group II salary limits. The salary for a position listed in this subdivision shall
89.18not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
89.19on January 1. The new limit must equal the limit for the prior year increased by the percentage
89.20increase, if any, in the Consumer Price Index for all urban consumers from October of the
89.21second prior year to October of the immediately prior year. The commissioner of management
89.22and budget must publish the limit on the department's Web site. This subdivision applies
89.23to the following positions:
89.24    Executive director of Gambling Control Board;
89.25    Commissioner, of Iron Range resources and rehabilitation Board;
89.26    Commissioner, Bureau of Mediation Services;
89.27    Ombudsman for Mental Health and Developmental Disabilities;
89.28    Chair, Metropolitan Council;
89.29    School trust lands director;
89.30    Executive director of pari-mutuel racing; and
89.31    Commissioner, Public Utilities Commission.

90.1    Sec. 6. Minnesota Statutes 2016, section 43A.02, subdivision 22, is amended to read:
90.2    Subd. 22. Executive branch. "Executive branch" means heads of all agencies of state
90.3government, elective or appointive, established by statute or Constitution and all employees
90.4of those agency heads who have within their particular field of responsibility statewide
90.5jurisdiction and who are not within the legislative or judicial branches of government. The
90.6executive branch also includes employees of the Department of Iron Range Resources and
90.7Rehabilitation Board. The executive branch does not include agencies with jurisdiction in
90.8specifically defined geographical areas, such as regions, counties, cities, towns,
90.9municipalities, or school districts, the University of Minnesota, the Public Employees
90.10Retirement Association, the Minnesota State Retirement System, the Teachers Retirement
90.11Association, the Minnesota Historical Society, and all of their employees, and any other
90.12entity which is incorporated, even though it receives state funds.

90.13    Sec. 7. Minnesota Statutes 2016, section 85.0146, subdivision 1, is amended to read:
90.14    Subdivision 1. Advisory council created. The Cuyuna Country State Recreation Area
90.15Citizens Advisory Council is established. Membership on the advisory council shall include:
90.16    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board;
90.17    (2) a representative of the Croft Mine Historical Park Joint Powers Board;
90.18    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked
90.19as a miner in the local area;
90.20    (4) a representative of the Crow Wing County Board;
90.21    (5) an elected state official;
90.22    (6) a representative of the Grand Rapids regional office of the Department of Natural
90.23Resources;
90.24    (7) a designee of the commissioner of Iron Range resources and rehabilitation Board;
90.25    (8) a designee of the local business community selected by the area chambers of
90.26commerce;
90.27    (9) a designee of the local environmental community selected by the Crow Wing County
90.28District 5 commissioner;
90.29    (10) a designee of a local education organization selected by the Crosby-Ironton School
90.30Board;
91.1    (11) a designee of one of the recreation area user groups selected by the Cuyuna Range
91.2Chamber of Commerce; and
91.3    (12) a member of the Cuyuna Country Heritage Preservation Society.

91.4    Sec. 8. Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read:
91.5    Subd. 1a. Definitions. For the purposes of this chapter, the following terms have the
91.6meanings given to them in this subdivision.
91.7(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4.
91.8(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02,
91.9subdivision 5
.
91.10(c) "Environmental assessment worksheet" means a brief document which is designed
91.11to set out the basic facts necessary to determine whether an environmental impact statement
91.12is required for a proposed action.
91.13(d) "Governmental action" means activities, including projects wholly or partially
91.14conducted, permitted, assisted, financed, regulated, or approved by units of government
91.15including the federal government.
91.16(e) "Governmental unit" means any state agency and any general or special purpose unit
91.17of government in the state including, but not limited to, watershed districts organized under
91.18chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic
91.19development authorities established under sections 469.090 to 469.108, but not including
91.20courts, school districts, the Department of Iron Range Resources and Rehabilitation, and
91.21regional development commissions other than the Metropolitan Council.

91.22    Sec. 9. Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:
91.23    Subd. 2. Use of fund. The commissioner shall use money in the fund to make loans or,
91.24including forgivable loans, equity investments, or grants for infrastructure in mineral, steel,
91.25or any other industry processing, production, manufacturing, or technology project that
91.26would enhance the economic diversification and that is located within the taconite relief
91.27tax assistance area as defined under section 273.134 273.1341. The commissioner must,
91.28prior to making any loans or equity investments and after consultation with industry and
91.29public officials, develop a strategy for making loans and, equity investments, or grants for
91.30infrastructure that assists the taconite relief area in retaining and enhancing its economic
91.31competitiveness. Money in the fund may also be used to pay for the costs of carrying out
91.32the commissioner's due diligence duties under this section.
92.1EFFECTIVE DATE.This section is effective the day following final enactment.

92.2    Sec. 10. Minnesota Statutes 2016, section 116J.424, is amended to read:
92.3116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
92.4CONTRIBUTION.
92.5The commissioner of the Iron Range resources and rehabilitation Board with approval
92.6by the board, after consultation with the Iron Range Resources and Rehabilitation Board,
92.7may provide an equal match for any loan or equity investment made for a project located
92.8in the tax relief taconite assistance area defined in section 273.134, paragraph (b) 273.1341,
92.9by the Minnesota 21st century fund created by section 116J.423. The match may be in the
92.10form of a loan or equity investment, notwithstanding whether the fund makes a loan or
92.11equity investment. The state shall not acquire an equity interest because of an equity
92.12investment or loan by the board and the board at its sole discretion shall commissioner of
92.13Iron Range resources and rehabilitation and the commissioner, after consultation with the
92.14advisory board, shall have sole discretion to decide what interest it the fund acquires in a
92.15project. The commissioner of employment and economic development may require a
92.16commitment from the board commissioner of Iron Range resources and rehabilitation to
92.17make the match prior to disbursing money from the fund.

92.18    Sec. 11. Minnesota Statutes 2016, section 116J.994, subdivision 3, is amended to read:
92.19    Subd. 3. Subsidy agreement. (a) A recipient must enter into a subsidy agreement with
92.20the grantor of the subsidy that includes:
92.21(1) a description of the subsidy, including the amount and type of subsidy, and type of
92.22district if the subsidy is tax increment financing;
92.23(2) a statement of the public purposes for the subsidy;
92.24(3) measurable, specific, and tangible goals for the subsidy;
92.25(4) a description of the financial obligation of the recipient if the goals are not met;
92.26(5) a statement of why the subsidy is needed;
92.27(6) a commitment to continue operations in the jurisdiction where the subsidy is used
92.28for at least five years after the benefit date;
92.29(7) the name and address of the parent corporation of the recipient, if any; and
92.30(8) a list of all financial assistance by all grantors for the project.
93.1(b) Business subsidies in the form of grants must be structured as forgivable loans. For
93.2other types of business subsidies, the agreement must state the fair market value of the
93.3subsidy to the recipient, including the value of conveying property at less than a fair market
93.4price, or other in-kind benefits to the recipient.
93.5(c) If a business subsidy benefits more than one recipient, the grantor must assign a
93.6proportion of the business subsidy to each recipient that signs a subsidy agreement. The
93.7proportion assessed to each recipient must reflect a reasonable estimate of the recipient's
93.8share of the total benefits of the project.
93.9(d) The state or local government agency and the recipient must both sign the subsidy
93.10agreement and, if the grantor is a local government agency, the agreement must be approved
93.11by the local elected governing body, except for the St. Paul Port Authority and a seaway
93.12port authority.
93.13(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be
93.14authorized to move from the jurisdiction where the subsidy is used within the five-year
93.15period after the benefit date if, after a public hearing, the grantor approves the recipient's
93.16request to move. For the purpose of this paragraph, if the grantor is a state government
93.17agency other than the Department of Iron Range Resources and Rehabilitation Board,
93.18"jurisdiction" means a city or township.

93.19    Sec. 12. Minnesota Statutes 2016, section 116J.994, subdivision 5, is amended to read:
93.20    Subd. 5. Public notice and hearing. (a) Before granting a business subsidy that exceeds
93.21$500,000 for a state government grantor and $150,000 for a local government grantor, the
93.22grantor must provide public notice and a hearing on the subsidy. A public hearing and notice
93.23under this subdivision is not required if a hearing and notice on the subsidy is otherwise
93.24required by law.
93.25    (b) Public notice of a proposed business subsidy under this subdivision by a state
93.26government grantor, other than the commissioner of Iron Range resources and rehabilitation
93.27Board, must be published in the State Register. Public notice of a proposed business subsidy
93.28under this subdivision by a local government grantor or the commissioner of Iron Range
93.29resources and rehabilitation Board must be published in a local newspaper of general
93.30circulation. The public notice must identify the location at which information about the
93.31business subsidy, including a summary of the terms of the subsidy, is available. Published
93.32notice should be sufficiently conspicuous in size and placement to distinguish the notice
93.33from the surrounding text. The grantor must make the information available in printed paper
94.1copies and, if possible, on the Internet. The government agency must provide at least a
94.2ten-day notice for the public hearing.
94.3    (c) The public notice must include the date, time, and place of the hearing.
94.4    (d) The public hearing by a state government grantor other than the commissioner of
94.5Iron Range resources and rehabilitation Board must be held in St. Paul.
94.6    (e) If more than one nonstate grantor provides a business subsidy to the same recipient,
94.7the nonstate grantors may designate one nonstate grantor to hold a single public hearing
94.8regarding the business subsidies provided by all nonstate grantors. For the purposes of this
94.9paragraph, "nonstate grantor" includes the commissioner of Iron Range resources and
94.10rehabilitation Board.
94.11    (f) The public notice of any public meeting about a business subsidy agreement, including
94.12those required by this subdivision and by subdivision 4, must include notice that a person
94.13with residence in or the owner of taxable property in the granting jurisdiction may file a
94.14written complaint with the grantor if the grantor fails to comply with sections 116J.993 to
94.15116J.995 , and that no action may be filed against the grantor for the failure to comply unless
94.16a written complaint is filed.

94.17    Sec. 13. Minnesota Statutes 2016, section 116J.994, subdivision 7, is amended to read:
94.18    Subd. 7. Reports by recipients to grantors. (a) A business subsidy grantor must monitor
94.19the progress by the recipient in achieving agreement goals.
94.20(b) A recipient must provide information regarding goals and results for two years after
94.21the benefit date or until the goals are met, whichever is later. If the goals are not met, the
94.22recipient must continue to provide information on the subsidy until the subsidy is repaid.
94.23The information must be filed on forms developed by the commissioner in cooperation with
94.24representatives of local government. Copies of the completed forms must be sent to the
94.25local government agency that provided the subsidy or to the commissioner if the grantor is
94.26a state agency. If the commissioner of Iron Range resources and rehabilitation Board is the
94.27grantor, the copies must be sent to the board commissioner of Iron Range resources and
94.28rehabilitation. The report must include:
94.29(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy
94.30is tax increment financing;
94.31(2) the hourly wage of each job created with separate bands of wages;
95.1(3) the sum of the hourly wages and cost of health insurance provided by the employer
95.2with separate bands of wages;
95.3(4) the date the job and wage goals will be reached;
95.4(5) a statement of goals identified in the subsidy agreement and an update on achievement
95.5of those goals;
95.6(6) the location of the recipient prior to receiving the business subsidy;
95.7(7) the number of employees who ceased to be employed by the recipient when the
95.8recipient relocated to become eligible for the business subsidy;
95.9(8) why the recipient did not complete the project outlined in the subsidy agreement at
95.10their previous location, if the recipient was previously located at another site in Minnesota;
95.11(9) the name and address of the parent corporation of the recipient, if any;
95.12(10) a list of all financial assistance by all grantors for the project; and
95.13(11) other information the commissioner may request.
95.14A report must be filed no later than March 1 of each year for the previous year. The local
95.15agency and the commissioner of Iron Range resources and rehabilitation Board must forward
95.16copies of the reports received by recipients to the commissioner by April 1.
95.17(c) Financial assistance that is excluded from the definition of "business subsidy" by
95.18section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting
95.19requirements of this subdivision, except that the report of the recipient must include instead:
95.20(1) the type, public purpose, and amount of the financial assistance, and type of district
95.21if the assistance is tax increment financing;
95.22(2) progress towards meeting goals stated in the assistance agreement and the public
95.23purpose of the assistance;
95.24(3) if the agreement includes job creation, the hourly wage of each job created with
95.25separate bands of wages;
95.26(4) if the agreement includes job creation, the sum of the hourly wages and cost of health
95.27insurance provided by the employer with separate bands of wages;
95.28(5) the location of the recipient prior to receiving the assistance; and
95.29(6) other information the grantor requests.
96.1(d) If the recipient does not submit its report, the local government agency must mail
96.2the recipient a warning within one week of the required filing date. If, after 14 days of the
96.3postmarked date of the warning, the recipient fails to provide a report, the recipient must
96.4pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The
96.5maximum penalty shall not exceed $1,000.

96.6    Sec. 14. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:
96.7    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
96.8the meanings given them in this subdivision.
96.9(b) "Area development rate" means a rate schedule established by a utility that provides
96.10customers within an area development zone service under a base utility rate schedule, except
96.11that charges may be reduced from the base rate as agreed upon by the utility and the customer
96.12consistent with this section.
96.13(c) "Area development zone" means a contiguous or noncontiguous area designated by
96.14an authority or municipality for development or redevelopment and within which one of
96.15the following conditions exists:
96.16(1) obsolete buildings not suitable for improvement or conversion or other identified
96.17hazards to the health, safety, and general well-being of the community;
96.18(2) buildings in need of substantial rehabilitation or in substandard condition; or
96.19(3) low values and damaged investments.
96.20(d) "Authority" means a rural development financing authority established under sections
96.21469.142 to 469.151; a housing and redevelopment authority established under sections
96.22469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an
96.23economic development authority established under sections 469.090 to 469.108; a
96.24redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron
96.25Range resources and rehabilitation Board established under section 298.22; a municipality
96.26that is administering a development district created under sections 469.124 to 469.133 or
96.27any special law; a municipality that undertakes a project under sections 469.152 to 469.165,
96.28except a town located outside the metropolitan area as defined in section 473.121, subdivision
96.292
, or with a population of 5,000 persons or less; or a municipality that exercises the powers
96.30of a port authority under any general or special law.
96.31(e) "Municipality" means a city, however organized, and, with respect to a project
96.32undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
96.33sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
97.1to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008,
97.2also includes any county.

97.3    Sec. 15. Minnesota Statutes 2016, section 216B.1694, subdivision 1, is amended to read:
97.4    Subdivision 1. Definition. For the purposes of this section, the term "innovative energy
97.5project" means a proposed energy-generation facility or group of facilities which may be
97.6located on up to three sites:
97.7(1) that makes use of an innovative generation technology utilizing coal as a primary
97.8fuel in a highly efficient combined-cycle configuration with significantly reduced sulfur
97.9dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional
97.10technologies;
97.11(2) that the project developer or owner certifies is a project capable of offering a long-term
97.12supply contract at a hedged, predictable cost; and
97.13(3) that is designated by the commissioner of the Iron Range resources and rehabilitation
97.14Board as a project that is located in the taconite tax relief area on a site that has substantial
97.15real property with adequate infrastructure to support new or expanded development and
97.16that has received prior financial and other support from the board.

97.17    Sec. 16. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:
97.18    Subd. 8. Municipality. "Municipality" means a city, town, or township located in whole
97.19or part within the area. If a municipality is located partly within and partly without the area,
97.20the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to
97.21taxation or taxing jurisdiction within the municipality are to the property or portion thereof
97.22that is located in that portion of the municipality within the area, except that the fiscal
97.23capacity of the municipality must be computed upon the basis of the valuation and population
97.24of the entire municipality. A municipality shall be excluded from the area if its municipal
97.25comprehensive zoning and planning policies conscientiously exclude most
97.26commercial-industrial development, for reasons other than preserving an agricultural use.
97.27The commissioner of Iron Range resources and rehabilitation Board and the commissioner
97.28of revenue shall jointly make this determination annually and shall notify those municipalities
97.29that are ineligible to participate in the tax base sharing program provided in this chapter for
97.30the following year. Before making the determination, the commissioner of Iron Range
97.31resources and rehabilitation must consult the Iron Range Resources and Rehabilitation
97.32Board.

98.1    Sec. 17. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:
98.2    Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up to
98.325 percent of the areawide levy certified by the commissioner of Iron Range resources and
98.4rehabilitation Board, after consultation with the Iron Range Resources and Rehabilitation
98.5Board, to be used for the purposes of the Iron Range school consolidation and cooperatively
98.6operated school account under section 298.28, subdivision 7a.
98.7(b) The allocation under paragraph (a) shall only be made after the commissioner of
98.8Iron Range resources and rehabilitation Board, after consultation with the Iron Range
98.9Resources and Rehabilitation Board, has certified by June 30 that the Iron Range school
98.10consolidation and cooperatively operated account has insufficient funds to make payments
98.11as authorized under section 298.28, subdivision 7a.

98.12    Sec. 18. Minnesota Statutes 2016, section 276A.06, subdivision 8, is amended to read:
98.13    Subd. 8. Certification of values; payment. The administrative auditor shall determine
98.14for each county the difference between the total levy on distribution value pursuant to
98.15subdivision 3, clause (1), including the school fund allocation within the county and the
98.16total tax on contribution value pursuant to subdivision 7, within the county. On or before
98.17May 16 of each year, the administrative auditor shall certify the differences so determined
98.18and the county's portion of the school fund allocation to each county auditor. In addition,
98.19the administrative auditor shall certify to those county auditors for whose county the total
98.20tax on contribution value exceeds the total levy on distribution value the settlement the
98.21county is to make to the other counties of the excess of the total tax on contribution value
98.22over the total levy on distribution value in the county. On or before June 15 and November
98.2315 of each year, each county treasurer in a county having a total tax on contribution value
98.24in excess of the total levy on distribution value shall pay one-half of the excess to the other
98.25counties in accordance with the administrative auditor's certification. On or before June 15
98.26and November 15 of each year, each county treasurer shall pay to the administrative auditor
98.27that county's share of the school fund allocation. On or before December 1 of each year,
98.28the administrative auditor shall pay the school fund allocation to the commissioner of Iron
98.29Range resources and rehabilitation Board for deposit in the Iron Range school consolidation
98.30and cooperatively operated account.

98.31    Sec. 19. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:
98.32    Subdivision 1. Development. In any county where the county board by proper resolution
98.33sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or
99.1section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation
99.2with the approval of the board, after consultation with the Iron Range Resources and
99.3Rehabilitation Board, may upon request of the county board assist said county in carrying
99.4out any project for the long range development of its forest resources through matching of
99.5funds or otherwise.

99.6    Sec. 20. Minnesota Statutes 2016, section 282.38, subdivision 3, is amended to read:
99.7    Subd. 3. Not to affect commissioner of Iron Range resources and rehabilitation.
99.8Nothing herein shall be construed to limit or abrogate the authority of the commissioner of
99.9Iron Range resources and rehabilitation to give temporary assistance to any county in the
99.10development of its land use program.

99.11    Sec. 21. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:
99.12    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue of the
99.13state of Minnesota, except that when used in sections 298.22 to 298.227 and 298.291 to
99.14298.297, "commissioner" means the commissioner of Iron Range resources and rehabilitation.

99.15    Sec. 22. Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision
99.16to read:
99.17    Subd. 11. Advisory board. "Advisory board" means the Iron Range Resources and
99.18Rehabilitation Board, as established under section 298.22. The acronym "IRRRB" means
99.19the advisory board.

99.20    Sec. 23. Minnesota Statutes 2016, section 298.018, subdivision 1, is amended to read:
99.21    Subdivision 1. Within taconite assistance area. The proceeds of the tax paid under
99.22sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
99.23taconite assistance area defined in section 273.1341, shall be allocated as follows:
99.24    (1) five percent to the city or town within which the minerals or energy resources are
99.25mined or extracted, or within which the concentrate was produced. If the mining and
99.26concentration, or different steps in either process, are carried on in more than one taxing
99.27district, the commissioner shall apportion equitably the proceeds among the cities and towns
99.28by attributing 50 percent of the proceeds of the tax to the operation of mining or extraction,
99.29and the remainder to the concentrating plant and to the processes of concentration, and with
99.30respect to each thereof giving due consideration to the relative extent of the respective
99.31operations performed in each taxing district;
100.1    (2) ten percent to the taconite municipal aid account to be distributed as provided in
100.2section 298.282;
100.3    (3) ten percent to the school district within which the minerals or energy resources are
100.4mined or extracted, or within which the concentrate was produced. If the mining and
100.5concentration, or different steps in either process, are carried on in more than one school
100.6district, distribution among the school districts must be based on the apportionment formula
100.7prescribed in clause (1);
100.8    (4) 20 percent to a group of school districts comprised of those school districts wherein
100.9the mineral or energy resource was mined or extracted or in which there is a qualifying
100.10municipality as defined by section 273.134, paragraph (b), in direct proportion to school
100.11district indexes as follows: for each school district, its pupil units determined under section
100.12126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
100.13net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
100.14pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
100.15to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
100.16portion of the distribution which its index bears to the sum of the indices for all school
100.17districts that receive the distributions;
100.18    (5) 20 percent to the county within which the minerals or energy resources are mined
100.19or extracted, or within which the concentrate was produced. If the mining and concentration,
100.20or different steps in either process, are carried on in more than one county, distribution
100.21among the counties must be based on the apportionment formula prescribed in clause (1),
100.22provided that any county receiving distributions under this clause shall pay one percent of
100.23its proceeds to the Range Association of Municipalities and Schools;
100.24    (6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed
100.25as provided in sections 273.134 to 273.136;
100.26    (7) five percent to the commissioner of Iron Range resources and rehabilitation Board
100.27for the purposes of section 298.22;
100.28    (8) three percent to the Douglas J. Johnson economic protection trust fund; and
100.29    (9) seven percent to the taconite environmental protection fund.
100.30    The proceeds of the tax shall be distributed on July 15 each year.

100.31    Sec. 24. Minnesota Statutes 2016, section 298.17, is amended to read:
100.32298.17 OCCUPATION TAXES TO BE APPORTIONED.
101.1(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
101.2companies, corporations, and associations, however or for whatever purpose organized,
101.3engaged in the business of mining or producing iron ore or other ores, when collected shall
101.4be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
101.5article X, section 3, in the manner following: 90 percent shall be deposited in the state
101.6treasury and credited to the general fund of which four-ninths shall be used for the support
101.7of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
101.8by this section shall be deposited in the state treasury and credited to the general fund for
101.9the general support of the university.
101.10(b) Of the money apportioned to the general fund by this section: (1) there is annually
101.11appropriated and credited to the mining environmental and regulatory account in the special
101.12revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax
101.13imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
101.14Money in the mining environmental and regulatory account is appropriated annually to the
101.15commissioner of natural resources to fund agency staff to work on environmental issues
101.16and provide regulatory services for ferrous and nonferrous mining operations in this state.
101.17Payment to the mining environmental and regulatory account shall be made by July 1
101.18annually. The commissioner of natural resources shall execute an interagency agreement
101.19with the Pollution Control Agency to assist with the provision of environmental regulatory
101.20services such as monitoring and permitting required for ferrous and nonferrous mining
101.21operations; (2) there is annually appropriated and credited to the Iron Range resources and
101.22rehabilitation Board account in the special revenue fund an amount equal to that which
101.23would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable
101.24ton produced in the preceding calendar year, to be expended for the purposes of section
101.25298.22 ; and (3) there is annually appropriated and credited to the Iron Range resources and
101.26rehabilitation Board account in the special revenue fund for transfer to the Iron Range school
101.27consolidation and cooperatively operated school account under section 298.28, subdivision
101.287a
, an amount equal to that which would have been generated by a six cent tax imposed by
101.29section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the
101.30Iron Range resources and rehabilitation Board account shall be made by May 15 annually.
101.31(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
101.32provide environmental development grants to local governments located within any county
101.33in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
101.34which does not contain a municipality qualifying pursuant to section 273.134, paragraph
101.35(b)
, or (ii) to provide economic development loans or grants to businesses located within
102.1any such county, provided that the county board or an advisory group appointed by the
102.2county board to provide recommendations on economic development shall make
102.3recommendations to the commissioner of Iron Range resources and rehabilitation Board
102.4regarding the loans. Payment to the Iron Range resources and rehabilitation Board account
102.5shall be made by May 15 annually.
102.6(d) Of the money allocated to Koochiching County, one-third must be paid to the
102.7Koochiching County Economic Development Commission.

102.8    Sec. 25. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:
102.9    Subdivision 1. The Office of Commissioner Department of Iron Range Resources
102.10and Rehabilitation. (a) The Office of the Commissioner Department of Iron Range
102.11Resources and Rehabilitation is created as an agency in the executive branch of state
102.12government. The governor shall appoint the commissioner of Iron Range resources and
102.13rehabilitation under section 15.06. The commissioner may expend amounts appropriated
102.14to the commissioner for projects after consultation with the advisory board created under
102.15subdivision 1a.
102.16(b) The commissioner may hold other positions or appointments that are not incompatible
102.17with duties as commissioner of Iron Range resources and rehabilitation. The commissioner
102.18may appoint a deputy commissioner. All expenses of the commissioner, including the
102.19payment of staff and other assistance as may be necessary, must be paid out of the amounts
102.20appropriated by section 298.28 or otherwise made available by law to the commissioner.
102.21Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
102.22options available under section 471.345 when the commissioner determines it is in the best
102.23interest of the agency. The agency is not subject to sections 16E.016 and 16C.05. The
102.24commissioner has the authority to reimburse any nongovernmental manager operating
102.25state-owned facilities within the Giants Ridge Recreation Area for purchasing materials,
102.26supplies, equipment, or other items used in the operations at such facilities.
102.27(c) When the commissioner determines that distress and unemployment exists or may
102.28exist in the future in any county by reason of the removal of natural resources or a possibly
102.29limited use of natural resources in the future and any resulting decrease in employment, the
102.30commissioner may use whatever amounts of the appropriation made to the commissioner
102.31of revenue in section 298.28 that are determined to be necessary and proper in the
102.32development of the remaining resources of the county and in the vocational training and
102.33rehabilitation of its residents, except that the amount needed to cover cost overruns awarded
102.34to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in
103.1effect after July 1, 1985, is appropriated from the general fund. For the purposes of this
103.2section, "development of remaining resources" includes, but is not limited to, the promotion
103.3of tourism.

103.4    Sec. 26. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:
103.5    Subd. 1a. Iron Range Resources and Rehabilitation Board. (a) The Iron Range
103.6Resources and Rehabilitation Board consists of the state senators and representatives elected
103.7from state senatorial or legislative districts in which one-third or more of the residents reside
103.8in a taconite assistance area as defined in section 273.1341. One additional state senator
103.9shall also be appointed by the senate Subcommittee on Committees of the Committee on
103.10Rules and Administration. All expenditures and projects made by the commissioner shall
103.11first be submitted to the advisory board for approval. The advisory board shall recommend
103.12approval or disapproval or modification of the expenditures and projects. The expenses of
103.13the advisory board shall be paid by the state from the funds raised pursuant to this section.
103.14Members of the advisory board may be reimbursed for expenses in the manner provided in
103.15sections 3.099, subdivision 1, and 3.101, and may receive per diem payments during the
103.16interims between legislative sessions in the manner provided in section 3.099, subdivision
103.171
.
103.18The members shall be appointed in January of every odd-numbered year, and shall serve
103.19until January of the next odd-numbered year. Vacancies on the board shall be filled in the
103.20same manner as original members were chosen.
103.21(b) The advisory board must develop procedures to elect a chair who shall preside over
103.22and convene meetings as often as necessary to conduct duties prescribed by this chapter.
103.23The advisory board must meet at least two times per year to review the actions of the
103.24commissioner.

103.25    Sec. 27. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
103.26read:
103.27    Subd. 1b. Evaluation of programs. (a) In evaluating programs proposed by the
103.28commissioner, the advisory board must consider factors, including but not limited to the
103.29extent to which the program:
103.30(1) contributes to increasing the effectiveness of promoting or managing Iron Range
103.31economic and workforce development, community development, minerals and natural
103.32resources development, and any other issue as determined by the advisory board; and
104.1(2) advances the strategic plan adopted under subdivision 1c.
104.2(b) In evaluating programs proposed by the commissioner, the advisory board must
104.3consider factors, including but not limited to:
104.4(1) job creation or retention goals for the program, including but not limited to wages
104.5and benefits; whether the jobs created are full time, part time, temporary, or permanent; and
104.6whether the stated job creation or retention goals in the program proposal can be adequately
104.7measured using methods established by the commissioner;
104.8(2) how and to what extent the program is expected to impact the economic climate of
104.9the Iron Range resources and rehabilitation services area;
104.10(3) how the program would meet match requirements, if any; and
104.11(4) whether the program meets the written objectives, priorities, and policies established
104.12by the commissioner.

104.13    Sec. 28. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
104.14read:
104.15    Subd. 1c. Strategic plan required. The commissioner, in consultation with the advisory
104.16board, shall adopt a four-year strategic plan for making expenditures, including identifying
104.17the priority areas for funding for the term of the commissioner's appointment. The strategic
104.18plan must be reviewed annually. The strategic plan must have clearly stated short- and
104.19long-term goals and strategies for expenditures, provide measurable outcomes for
104.20expenditures, and determine areas of emphasis for funding.

104.21    Sec. 29. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:
104.22    Subd. 5a. Forest trust. The commissioner, upon approval by the board after consultation
104.23with the advisory board, may purchase forest lands in the taconite assistance area defined
104.24in under section 273.1341 with funds specifically authorized for the purchase. The acquired
104.25forest lands must be held in trust for the benefit of the citizens of the taconite assistance
104.26area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed
104.27and developed for recreation and economic development purposes. The commissioner, upon
104.28approval by the after consultation with the advisory board, may sell forest lands purchased
104.29under this subdivision if the board finds commissioner determines that the sale advances
104.30the purposes of the trust. Proceeds derived from the management or sale of the lands and
104.31from the sale of timber or removal of gravel or other minerals from these forest lands shall
104.32be deposited into an Iron Range Miners' Memorial Forest account that is established within
105.1the state financial accounts. Funds may be expended from the account upon approval by
105.2the commissioner, after consultation with the advisory board, to purchase, manage,
105.3administer, convey interests in, and improve the forest lands. With approval by the board,
105.4After consultation with the advisory board, the commissioner may transfer money in the
105.5Iron Range Miners' Memorial Forest account may be transferred into the corpus of the
105.6Douglas J. Johnson economic protection trust fund established under sections 298.291 to
105.7298.294 . The property acquired under the authority granted by this subdivision and income
105.8derived from the property or the operation or management of the property are exempt from
105.9taxation by the state or its political subdivisions while held by the forest trust.

105.10    Sec. 30. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:
105.11    Subd. 6. Private entity participation. The commissioner, after consultation with the
105.12advisory board, may acquire an equity interest in any project for which it the commissioner
105.13provides funding. The commissioner may, after consultation with the advisory board,
105.14establish, participate in the management of, and dispose of the assets of charitable
105.15foundations, nonprofit limited liability companies, and nonprofit corporations associated
105.16with any project for which it the commissioner provides funding, including specifically,
105.17but without limitation, a corporation within the meaning of section 317A.011, subdivision
105.186
.

105.19    Sec. 31. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:
105.20    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range resources
105.21and rehabilitation may not sell or privatize the Ironworld Minnesota Discovery Center or
105.22Giants Ridge Golf and Ski Resort without prior approval by the advisory board.

105.23    Sec. 32. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:
105.24    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
105.25shall annually prepare a budget for operational expenditures, programs, and projects, and
105.26submit it to the Iron Range Resources and Rehabilitation Board. After the budget is approved
105.27by the advisory board and the governor, the commissioner may spend money in accordance
105.28with the approved budget.

106.1    Sec. 33. Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
106.2read:
106.3    Subd. 13. Grants and loans for economic development projects; requirements. (a)
106.4Prior to awarding any grants or approving loans from any fund or account from which the
106.5commissioner has the authority under law to expend money, the commissioner must evaluate
106.6applications based on criteria including, but not limited to:
106.7(1) job creation or retention goals for the project, including but not limited to wages and
106.8benefits, and whether the jobs created are full time, part time, temporary, or permanent;
106.9(2) whether the applicant's stated job creation or retention goals can be adequately
106.10measured using methods established by the commissioner;
106.11(3) how and to what extent the project proposed by the applicant is expected to impact
106.12the economic climate of the Iron Range resources and rehabilitation services area;
106.13(4) how the applicant would meet match requirements, if any; and
106.14(5) whether the project for which a grant or loan application has been submitted meets
106.15the written objectives, priorities, and policies established by the commissioner.
106.16(b) The commissioner, if appropriate, may include incentives in loan and grant award
106.17agreements to promote and assist grant recipients in achieving the stated job creation and
106.18retention objectives established by the commissioner.
106.19(c) For all loans and grants awarded from funds under the commissioner's authority
106.20pursuant to this chapter, the commissioner must:
106.21(1) maintain a database for tracking loan and grant awards;
106.22(2) maintain an objective mechanism for measuring job creation and retention;
106.23(3) verify achievement of job creation and retention goals by grant and loan recipients;
106.24(4) monitor grant and loan awards to ensure that projects comply with applicable Iron
106.25Range resources and rehabilitation policies; and
106.26(5) verify that grant or loan recipients have met applicable matching fund requirements.

106.27    Sec. 34. Minnesota Statutes 2016, section 298.221, is amended to read:
106.28298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
106.29(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant
106.30to the terms of any contract entered into by the state under authority of section 298.22 and
107.1any fees which may, in the discretion of the commissioner of Iron Range resources and
107.2rehabilitation, be charged in connection with any project pursuant to that section as amended,
107.3shall be deposited in the state treasury to the credit of the Iron Range resources and
107.4rehabilitation Board account in the special revenue fund and are hereby appropriated for
107.5the purposes of section 298.22.
107.6(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner
107.7of the Iron Range resources and rehabilitation Board for payment of advertising contracts
107.8if the commissioner determines that the merchandise can be used for special event prizes
107.9or mementos at facilities operated by the board commissioner. Nothing in this paragraph
107.10authorizes the commissioner or a member of the advisory board to receive merchandise for
107.11personal use.
107.12(c) All fees charged by the commissioner in connection with public use of the state-owned
107.13ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived
107.14by the commissioner from the operation or lease of those facilities and from the lease, sale,
107.15or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be
107.16deposited into an Iron Range resources and rehabilitation Board account that is created
107.17within the state enterprise fund. All funds deposited in the enterprise fund account are
107.18appropriated to the commissioner to be expended, subject to approval by the board, and
107.19may only be used, after consultation with the advisory board, as follows:
107.20(1) to pay costs associated with the construction, equipping, operation, repair, or
107.21improvement of the Giants Ridge Recreation Area facilities or lands;
107.22(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs
107.23associated with the financing of the facilities; and
107.24(3) to pay the costs of any other project authorized under section 298.22.

107.25    Sec. 35. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:
107.26    Subd. 3. Project approval. All projects authorized by this section shall be submitted
107.27by the commissioner to the Iron Range Resources and Rehabilitation Board for approval
107.28by the board The commissioner may authorize a project under this section only after
107.29consulting the advisory board. Prior to the commencement of a project involving the exercise
107.30by the commissioner of any authority of sections 469.174 to 469.179, the governing body
107.31of each municipality in which any part of the project is located and the county board of any
107.32county containing portions of the project not located in an incorporated area shall by majority
107.33vote approve or disapprove the project. Any project approved by the board commissioner
108.1and the applicable governing bodies, if any, together with detailed information concerning
108.2the project, its costs, the sources of its funding, and the amount of any bonded indebtedness
108.3to be incurred in connection with the project, shall be transmitted to the governor, who shall
108.4approve, disapprove, or return the proposal for additional consideration within 30 days of
108.5receipt. No project authorized under this section shall be undertaken, and no obligations
108.6shall be issued and no tax increments shall be expended for a project authorized under this
108.7section until the project has been approved by the governor.

108.8    Sec. 36. Minnesota Statutes 2016, section 298.2211, subdivision 6, is amended to read:
108.9    Subd. 6. Fee setting. Fees for admission to or use of facilities operated by the
108.10commissioner of Iron Range resources and rehabilitation Board that have been established
108.11according to prevailing market conditions and to recover operating costs need not be set by
108.12rule.

108.13    Sec. 37. Minnesota Statutes 2016, section 298.2212, is amended to read:
108.14298.2212 INVESTMENT OF FUNDS.
108.15All funds credited to the Iron Range resources and rehabilitation Board account in the
108.16special revenue fund for the purposes of section 298.22 must be invested pursuant to law.
108.17The net interest and dividends from the investments are included and become part of the
108.18funds available for purposes of section 298.22.

108.19    Sec. 38. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:
108.20    Subdivision 1. Creation; purposes. A fund called the taconite environmental protection
108.21fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast
108.22Minnesota located within the taconite assistance area defined in section 273.1341, that are
108.23adversely affected by the environmentally damaging operations involved in mining taconite
108.24and iron ore and producing iron ore concentrate and for the purpose of promoting the
108.25economic development of northeast Minnesota. The taconite environmental protection fund
108.26shall be used for the following purposes:
108.27(1) to initiate investigations into matters the commissioner of Iron Range resources and
108.28rehabilitation Board determines are in need of study and which will determine the
108.29environmental problems requiring remedial action;
108.30(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for
108.31by state law;
109.1(3) local economic development projects but only if those projects are approved by the
109.2board, and public works, including construction of sewer and water systems located within
109.3the taconite assistance area defined in section 273.1341;
109.4(4) monitoring of mineral industry related health problems among mining employees;
109.5and
109.6(5) local public works projects under section 298.227, paragraph (c).

109.7    Sec. 39. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:
109.8    Subd. 2. Administration. (a) The taconite area environmental protection fund shall be
109.9administered by the commissioner of the Iron Range Resources and Rehabilitation Board,
109.10who must consult with the advisory board before expending any funds. The commissioner
109.11shall by September 1 of each year submit to the board a list of projects to be funded from
109.12the taconite area environmental protection fund, with such supporting information including
109.13description of the projects, plans, and cost estimates as may be necessary.
109.14    (b) Each year no less than one-half of the amounts deposited into the taconite
109.15environmental protection fund must be used for public works projects, including construction
109.16of sewer and water systems, as specified under subdivision 1, clause (3). the Iron Range
109.17Resources and Rehabilitation Board may waive the requirements of this paragraph.
109.18    (c) Upon approval by the board, the list of projects approved under this subdivision shall
109.19be submitted to the governor by November 1 of each year. By December 1 of each year,
109.20the governor shall approve or disapprove, or return for further consideration, each project.
109.21Funds for a project may be expended only upon approval of the project by the board and
109.22the governor. The commissioner may submit supplemental projects to the board and governor
109.23for approval at any time.

109.24    Sec. 40. Minnesota Statutes 2016, section 298.227, is amended to read:
109.25298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
109.26    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
109.27production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
109.28commissioner of Iron Range resources and rehabilitation Board in a separate taconite
109.29economic development fund for each taconite and direct reduced ore producer. Money from
109.30the fund for each producer shall be released by the commissioner after review by a joint
109.31committee consisting of an equal number of representatives of the salaried employees and
109.32the nonsalaried production and maintenance employees of that producer. The District 11
110.1director of the United States Steelworkers of America, on advice of each local employee
110.2president, shall select the employee members. In nonorganized operations, the employee
110.3committee shall be elected by the nonsalaried production and maintenance employees. The
110.4review must be completed no later than six months after the producer presents a proposal
110.5for expenditure of the funds to the committee. The funds held pursuant to this section may
110.6be released only for workforce development and associated public facility improvement,
110.7or for acquisition of plant and stationary mining equipment and facilities for the producer
110.8or for research and development in Minnesota on new mining, or taconite, iron, or steel
110.9production technology, but only if the producer provides a matching expenditure equal to
110.10the amount of the distribution to be used for the same purpose beginning with distributions
110.11in 2014. Effective for proposals for expenditures of money from the fund beginning May
110.1226, 2007, the commissioner may not release the funds before the next scheduled meeting
110.13of the board. If a proposed expenditure is not approved by the commissioner, after
110.14consultation with the advisory board, the funds must be deposited in the Taconite
110.15Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses money
110.16which has been released from the fund prior to May 26, 2007 to procure haulage trucks,
110.17mobile equipment, or mining shovels, and the producer removes the piece of equipment
110.18from the taconite tax relief area defined in section 273.134 within ten years from the date
110.19of receipt of the money from the fund, a portion of the money granted from the fund must
110.20be repaid to the taconite economic development fund. The portion of the money to be repaid
110.21is 100 percent of the grant if the equipment is removed from the taconite tax relief area
110.22within 12 months after receipt of the money from the fund, declining by ten percent for
110.23each of the subsequent nine years during which the equipment remains within the taconite
110.24tax relief area. If a taconite production facility is sold after operations at the facility had
110.25ceased, any money remaining in the fund for the former producer may be released to the
110.26purchaser of the facility on the terms otherwise applicable to the former producer under this
110.27section. If a producer fails to provide matching funds for a proposed expenditure within six
110.28months after the commissioner approves release of the funds, the funds are available for
110.29release to another producer in proportion to the distribution provided and under the conditions
110.30of this section. Any portion of the fund which is not released by the commissioner within
110.31one year of its deposit in the fund shall be divided between the taconite environmental
110.32protection fund created in section 298.223 and the Douglas J. Johnson economic protection
110.33trust fund created in section 298.292 for placement in their respective special accounts.
110.34Two-thirds of the unreleased funds shall be distributed to the taconite environmental
110.35protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
111.1    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
111.2distributions and the review process, an amount equal to ten cents per taxable ton of
111.3production in 2007, for distribution in 2008 only, that would otherwise be distributed under
111.4paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
111.5wood product facility located in the taconite tax relief area and in a county that contains a
111.6city of the first class. This amount must be deducted from the distribution under paragraph
111.7(a) for which a matching expenditure by the producer is not required. The granting of the
111.8loan or grant is subject to approval by the board. If the money is provided as a loan, interest
111.9must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii)
111.10Repayments of the loan and interest, if any, must be deposited in the taconite environment
111.11protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this
111.12paragraph by July 1, 2012, the amount that had been made available for the loan under this
111.13paragraph must be transferred to the taconite environment protection fund under sections
111.14298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section
111.15that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a
111.16pro rata basis.
111.17(c) Repayment or transfer of money to the taconite environmental protection fund under
111.18paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
111.19Board for public works projects in house legislative districts in the same proportion as
111.20taxable tonnage of production in 2007 in each house legislative district, for distribution in
111.212008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
111.22Notwithstanding any other law to the contrary, expenditures under this paragraph do not
111.23require approval by the governor. For purposes of this paragraph, "house legislative districts"
111.24means the legislative districts in existence on May 15, 2009.

111.25    Sec. 41. Minnesota Statutes 2016, section 298.27, is amended to read:
111.26298.27 COLLECTION AND PAYMENT OF TAX.
111.27The taxes provided by section 298.24 shall be paid directly to each eligible county and
111.28the commissioner of Iron Range resources and rehabilitation Board. The commissioner of
111.29revenue shall notify each producer of the amount to be paid each recipient prior to February
111.3015. Every person subject to taxes imposed by section 298.24 shall file a correct report
111.31covering the preceding year. The report must contain the information required by the
111.32commissioner of revenue. The report shall be filed by each producer on or before February
111.331. A remittance equal to 50 percent of the total tax required to be paid hereunder shall be
111.34paid on or before February 24. A remittance equal to the remaining total tax required to be
112.1paid hereunder shall be paid on or before August 24. On or before February 25 and August
112.225, the county auditor shall make distribution of the payments previously received by the
112.3county in the manner provided by section 298.28. Reports shall be made and hearings held
112.4upon the determination of the tax in accordance with procedures established by the
112.5commissioner of revenue. The commissioner of revenue shall have authority to make
112.6reasonable rules as to the form and manner of filing reports necessary for the determination
112.7of the tax hereunder, and by such rules may require the production of such information as
112.8may be reasonably necessary or convenient for the determination and apportionment of the
112.9tax. All the provisions of the occupation tax law with reference to the assessment and
112.10determination of the occupation tax, including all provisions for appeals from or review of
112.11the orders of the commissioner of revenue relative thereto, but not including provisions for
112.12refunds, are applicable to the taxes imposed by section 298.24 except in so far as inconsistent
112.13herewith. If any person subject to section 298.24 shall fail to make the report provided for
112.14in this section at the time and in the manner herein provided, the commissioner of revenue
112.15shall in such case, upon information possessed or obtained, ascertain the kind and amount
112.16of ore mined or produced and thereon find and determine the amount of the tax due from
112.17such person. There shall be added to the amount of tax due a penalty for failure to report
112.18on or before February 1, which penalty shall equal ten percent of the tax imposed and be
112.19treated as a part thereof.
112.20If any person responsible for making a tax payment at the time and in the manner herein
112.21provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount
112.22so due, which penalty shall be treated as part of the tax due.
112.23In the case of any underpayment of the tax payment required herein, there may be added
112.24and be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid.
112.25A person having a liability of $120,000 or more during a calendar year must remit all
112.26liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The
112.27funds transfer payment date, as defined in section 336.4A-401, must be on or before the
112.28date the tax is due. If the date the tax is due is not a funds transfer business day, as defined
112.29in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the
112.30funds transfer business day next following the date the tax is due.

112.31    Sec. 42. Minnesota Statutes 2016, section 298.28, subdivision 7, is amended to read:
112.32    Subd. 7. Iron Range resources and rehabilitation Board account. For the 1998
112.33distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources and
112.34rehabilitation Board account for the purposes of section 298.22. That amount shall be
113.1increased for distribution years 1999 through 2014 and for distribution in 2018 and
113.2subsequent years in the same proportion as the increase in the implicit price deflator as
113.3provided in section 298.24, subdivision 1. The amount distributed pursuant to this subdivision
113.4shall be expended within or for the benefit of the taconite assistance area defined in section
113.5273.1341 . No part of the fund provided in this subdivision may be used to provide loans
113.6for the operation of private business unless the loan is approved by the governor.

113.7    Sec. 43. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:
113.8    Subd. 7a. Iron Range school consolidation and cooperatively operated school account.
113.9(a) The following amounts must be allocated to the commissioner of Iron Range resources
113.10and rehabilitation Board to be deposited in the Iron Range school consolidation and
113.11cooperatively operated school account that is hereby created:
113.12(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed
113.13under section 298.24; and
113.14(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
113.15under section 298.24;
113.16(2) the amount as determined under section 298.17, paragraph (b), clause (3);
113.17(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
113.18proceeds attributable to the increase in the implicit price deflator as provided in section
113.19298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J.
113.20Johnson economic protection trust fund;
113.21(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased
113.22tax proceeds attributable to the increase in the implicit price deflator as provided in section
113.23298.24, subdivision 1 , for distribution years 2015 and 2016, with the remaining one-third
113.24to be distributed to the Douglas J. Johnson economic protection trust fund; and
113.25(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased
113.26tax proceeds attributable to the increase in the implicit price deflator as provided in section
113.27298.24, subdivision 1 , for distribution years 2015, 2016, and 2017, with the remaining
113.28one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
113.29(4) any other amount as provided by law.
113.30(b) Expenditures from this account may be approved as ongoing annual expenditures
113.31and shall be made only to provide disbursements to assist school districts with the payment
113.32of bonds that were issued for qualified school projects, or for any other school disbursement
114.1as approved by the commissioner of Iron Range resources and rehabilitation after consultation
114.2with the Iron Range Resources and Rehabilitation Board. For purposes of this section,
114.3"qualified school projects" means school projects within the taconite assistance area as
114.4defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006;
114.5and (2) approved by the commissioner of education pursuant to section 123B.71.
114.6(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
114.7bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
114.8any reduction in debt service equalization aid that the school district qualifies for in that
114.9year, under section 123B.53, subdivision 6, compared with the amount the school district
114.10qualified for in fiscal year 2018.
114.11(d) No expenditure under this section shall be made unless approved by seven members
114.12of the commissioner of Iron Range resources and rehabilitation after consultation with the
114.13Iron Range Resources and Rehabilitation Board.

114.14    Sec. 44. Minnesota Statutes 2016, section 298.28, subdivision 9c, is amended to read:
114.15    Subd. 9c. Distribution; city of Eveleth. 0.20 cent per taxable ton must be paid to the
114.16city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the
114.17Hockey Hall of Fame, provided that it continues to operate in that city, and provided that
114.18the city of Eveleth certifies to the St. Louis County auditor that it has received donations
114.19for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of Fame
114.20ceases to operate in the city of Eveleth prior to receipt of the distribution in any year, and
114.21the governing body of the city determines that it is unlikely to resume operation there within
114.22a six-month period, the distribution under this subdivision shall be made to the commissioner
114.23of Iron Range resources and rehabilitation Board.

114.24    Sec. 45. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:
114.25    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must be
114.26allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron
114.27Range higher education account that is hereby created, to be used for higher education
114.28programs conducted at educational institutions in the taconite assistance area defined in
114.29section 273.1341. The Iron Range Higher Education committee under section 298.2214,
114.30and the commissioner of Iron Range resources and rehabilitation Board, after consultation
114.31with the advisory board, must approve all expenditures from the account.

115.1    Sec. 46. Minnesota Statutes 2016, section 298.28, subdivision 11, is amended to read:
115.2    Subd. 11. Remainder. (a) The proceeds of the tax imposed by section 298.24 which
115.3remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
115.4commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
115.5interest earned on all money distributed under this section prior to distribution, shall be
115.6divided between the taconite environmental protection fund created in section 298.223 and
115.7the Douglas J. Johnson economic protection trust fund created in section 298.292 as follows:
115.8Two-thirds to the taconite environmental protection fund and one-third to the Douglas J.
115.9Johnson economic protection trust fund. The proceeds shall be placed in the respective
115.10special accounts.
115.11(b) There shall be distributed to each city, town, and county the amount that it received
115.12under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however,
115.13that the amount distributed in 1981 to the unorganized territory number 2 of Lake County
115.14and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company
115.15will be distributed in 1982 and subsequent years to the unorganized territory number 2 of
115.16Lake County and the towns of Beaver Bay and Stony River based on the miles of track of
115.17Erie Mining Company in each taxing district.
115.18(c) There shall be distributed to the Iron Range resources and rehabilitation Board account
115.19the amounts it received in 1977 under Minnesota Statutes 1978, section 298.22. The amount
115.20distributed under this paragraph shall be expended within or for the benefit of the taconite
115.21assistance area defined in section 273.1341.
115.22(d) There shall be distributed to each school district 62 percent of the amount that it
115.23received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

115.24    Sec. 47. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:
115.25    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
115.26fund may be used for the following purposes:
115.27    (1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
115.28with private sources of financing, but a loan to a private enterprise shall be for a principal
115.29amount not to exceed one-half of the cost of the project for which financing is sought, and
115.30the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight
115.31percent or an interest rate three percentage points less than a full faith and credit obligation
115.32of the United States government of comparable maturity, at the time that the loan is approved;
116.1    (2) to fund reserve accounts established to secure the payment when due of the principal
116.2of and interest on bonds issued pursuant to section 298.2211;
116.3    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest on
116.4bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or
116.5retrofitting heating facilities in connection with district heating systems or systems utilizing
116.6alternative energy sources;
116.7    (4) to invest in a venture capital fund or enterprise that will provide capital to other
116.8entities that are engaging in, or that will engage in, projects or programs that have the
116.9purposes set forth in subdivision 1. No investments may be made in a venture capital fund
116.10or enterprise unless at least two other unrelated investors make investments of at least
116.11$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J.
116.12Johnson economic protection trust fund may not exceed the amount of the largest investment
116.13by an unrelated investor in the venture capital fund or enterprise. For purposes of this
116.14subdivision, an "unrelated investor" is a person or entity that is not related to the entity in
116.15which the investment is made or to any individual who owns more than 40 percent of the
116.16value of the entity, in any of the following relationships: spouse, parent, child, sibling,
116.17employee, or owner of an interest in the entity that exceeds ten percent of the value of all
116.18interests in it. For purposes of determining the limitations under this clause, the amount of
116.19investments made by an investor other than the Douglas J. Johnson economic protection
116.20trust fund is the sum of all investments made in the venture capital fund or enterprise during
116.21the period beginning one year before the date of the investment by the Douglas J. Johnson
116.22economic protection trust fund; and
116.23    (5) to purchase forest land in the taconite assistance area defined in section 273.1341 to
116.24be held and managed as a public trust for the benefit of the area for the purposes authorized
116.25in section 298.22, subdivision 5a. Property purchased under this section may be sold by the
116.26commissioner upon approval by the, after consultation with the advisory board. The net
116.27proceeds must be deposited in the trust fund for the purposes and uses of this section.
116.28    Money from the trust fund shall be expended only in or for the benefit of the taconite
116.29assistance area defined in section 273.1341.

116.30    Sec. 48. Minnesota Statutes 2016, section 298.296, is amended to read:
116.31298.296 OPERATION OF FUND.
116.32    Subdivision 1. Project approval. The board and commissioner shall by August 1 of
116.33each year prepare a list of projects to be funded from the Douglas J. Johnson economic
117.1protection trust with necessary supporting information including description of the projects,
117.2plans, and cost estimates. These Projects shall be consistent with the priorities established
117.3in section 298.292 and shall not be approved by the board unless it commissioner unless
117.4the commissioner, after consultation with the advisory board, finds that:
117.5(a) the project will materially assist, directly or indirectly, the creation of additional
117.6long-term employment opportunities;
117.7(b) the prospective benefits of the expenditure exceed the anticipated costs; and
117.8(c) in the case of assistance to private enterprise, the project will serve a sound business
117.9purpose.
117.10Each project must be approved by over one-half of all of the members of the board and
117.11the commissioner of Iron Range resources and rehabilitation. The list of projects shall be
117.12submitted to the governor, who shall, by November 15 of each year, approve or disapprove,
117.13or return for further consideration, each project. The money for a project may be expended
117.14only upon approval of the project by the governor. The board may submit supplemental
117.15projects for approval at any time.
117.16    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended on
117.17projects and for administration of the trust fund only from the net interest, earnings, and
117.18dividends arising from the investment of the trust at any time, including net interest, earnings,
117.19and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for
117.20use in fiscal year 1983, except that any amount required to be paid out of the trust fund to
117.21provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and
117.22to make school bond payments and payments to recipients of taconite production tax proceeds
117.23pursuant to section 298.225, may be taken from the corpus of the trust.
117.24    (b) Additionally, upon recommendation by the board, up to $13,000,000 from the corpus
117.25of the trust may be made available for use as provided in subdivision 4, and up to $10,000,000
117.26from the corpus of the trust may be made available for use as provided in section 298.2961.
117.27    (c) (b) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
117.28on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
117.29made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8,
117.30section 17, may be expended on projects. Funds The commissioner may be expended expend
117.31funds for projects under this paragraph only if the project:
117.32    (1) the project is for the purposes established under section 298.292, subdivision 1,
117.33clause (1) or (2); and
118.1    (2) is approved by two-thirds of all of the members of the board the commissioner has
118.2consulted with the advisory board.
118.3No money made available under this paragraph or paragraph (d) (c) can be used for
118.4administrative or operating expenses of the Department of Iron Range Resources and
118.5Rehabilitation Board or expenses relating to any facilities owned or operated by the board
118.6commissioner on May 18, 2002.
118.7    (d) Upon recommendation by a unanimous vote of all members of the board, (c) The
118.8commissioner may spend amounts in addition to those authorized under paragraphs (a), and
118.9(b), and (c) may be expended on projects described in section 298.292, subdivision 1, only
118.10after consultation with the advisory board.
118.11    (e) (d) Annual administrative costs, not including detailed engineering expenses for the
118.12projects, shall not exceed five percent of the net interest, dividends, and earnings arising
118.13from the trust in the preceding fiscal year.
118.14    (f) (e) Principal and interest received in repayment of loans made pursuant to this section,
118.15and earnings on other investments made under section 298.292, subdivision 2, clause (4),
118.16shall be deposited in the state treasury and credited to the trust. These receipts are
118.17appropriated to the board for the purposes of sections 298.291 to 298.298 298.297.
118.18    (g) (f) Additionally, notwithstanding section 298.293, upon the approval of the board,
118.19the commissioner, after consultation with the advisory board, may expend money from the
118.20corpus of the trust may be expanded to purchase forest lands within the taconite assistance
118.21area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2, clause (5).
118.22    Subd. 3. Administration. The commissioner and staff of the Iron Range resources and
118.23rehabilitation Board shall administer the program under which funds are expended pursuant
118.24to sections 298.292 to 298.298 298.297.
118.25    Subd. 4. Temporary loan authority. (a) The board may recommend that After
118.26consultation with the advisory board, the commissioner may use up to $7,500,000 from the
118.27corpus of the trust may be used for loans, loan guarantees, grants, or equity investments as
118.28provided in this subdivision. The money would be available for loans for construction and
118.29equipping of facilities constituting (1) a value added iron products plant, which may be
118.30either a new plant or a facility incorporated into an existing plant that produces iron upgraded
118.31to a minimum of 75 percent iron content or any iron alloy with a total minimum metallic
118.32content of 90 percent; or (2) a new mine or minerals processing plant for any mineral subject
118.33to the net proceeds tax imposed under section 298.015. A loan or loan guarantee under this
118.34paragraph may not exceed $5,000,000 for any facility.
119.1(b) Additionally, the board must reserve the first $2,000,000 of the net interest, dividends,
119.2and earnings arising from the investment of the trust after June 30, 1996, to be used for
119.3grants, loans, loan guarantees, or equity investments for the purposes set forth in paragraph
119.4(a). This amount must be reserved until it is used as described in this subdivision.
119.5(c) (b) Additionally, the board may recommend that the commissioner, after consultation
119.6with the advisory board, may use up to $5,500,000 from the corpus of the trust may be used
119.7for additional grants, loans, loan guarantees, or equity investments for the purposes set forth
119.8in paragraph (a).
119.9(d) (c) The board commissioner, after consultation with the advisory board, may require
119.10that it the fund receive an equity percentage in any project to which it contributes under this
119.11section.

119.12    Sec. 49. Minnesota Statutes 2016, section 298.2961, is amended to read:
119.13298.2961 PRODUCER GRANTS.
119.14    Subdivision 1. Appropriation. (a) $10,000,000 is appropriated from the Douglas J.
119.15Johnson economic protection trust fund to a special account in the taconite area environmental
119.16protection fund for grants to producers on a project-by-project basis as provided in this
119.17section.
119.18(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are
119.19appropriated for grants to producers on a project-by-project basis as provided in this section.
119.20    Subd. 2. Projects; approval. (a) Projects funded must be for:
119.21    (1) environmentally unique reclamation projects; or
119.22    (2) pit or plant repairs, expansions, or modernizations other than for a value added iron
119.23products plant.
119.24    (b) To be proposed by the board, a project must be approved by the board. The money
119.25for a project may be spent only upon approval of the project by the governor. The board
119.26may submit supplemental projects for approval at any time The commissioner may approve
119.27a project only after consultation with the advisory board.
119.28    (c) The commissioner, after consultation with the advisory board, may require that it
119.29the fund receive an equity percentage in any project to which it contributes under this section.
119.30    Subd. 3. Redistribution. (a) If a taconite production facility is sold after operations at
119.31the facility had ceased, any money remaining in the taconite environmental fund for the
120.1former producer may be released to the purchaser of the facility on the terms otherwise
120.2applicable to the former producer under this section.
120.3(b) Any portion of the taconite environmental fund that is not released by the
120.4commissioner within three years of its deposit in the taconite environmental fund shall be
120.5divided between the taconite environmental protection fund created in section 298.223 and
120.6the Douglas J. Johnson economic protection trust fund created in section 298.292 for
120.7placement in their respective special accounts. Two-thirds of the unreleased funds must be
120.8distributed to the taconite environmental protection fund and one-third to the Douglas J.
120.9Johnson economic protection trust fund.
120.10    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions under
120.11section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision.
120.12Any grant or loan made under this subdivision must be approved by the commissioner, after
120.13consultation with the advisory board, established under section 298.22.
120.14    (b) All distributions received in 2009 and subsequent years are allocated for projects
120.15under section 298.223, subdivision 1.

120.16    Sec. 50. Minnesota Statutes 2016, section 298.297, is amended to read:
120.17298.297 ADVISORY COMMITTEES.
120.18Before submission of a project to the advisory board, the commissioner of Iron Range
120.19resources and rehabilitation shall appoint a technical advisory committee consisting of one
120.20or more persons who are knowledgeable in areas related to the objectives of the proposal.
120.21Members of the committees shall be compensated as provided in section 15.059, subdivision
120.223
. The advisory board shall not act make recommendations on a proposal until it has received
120.23the evaluation and recommendations of the technical advisory committee or until 15 days
120.24have elapsed since the proposal was transmitted to the advisory committee, whichever
120.25occurs first.

120.26    Sec. 51. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:
120.27    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly
120.28constituted authorities of a taxing district there are in existence reserves of unmined iron
120.29ore located in such district, these authorities may petition the commissioner of Iron Range
120.30resources and rehabilitation Board for authority to petition the county assessor to verify the
120.31existence of such reserves and to ascertain the value thereof by drilling in a manner consistent
120.32with established engineering and geological exploration methods, in order that such taxing
121.1district may be able to forecast in a proper manner its future economic and fiscal potentials.
121.2The commissioner may grant the authority to petition only after consultation with the
121.3advisory board.

121.4    Sec. 52. Minnesota Statutes 2016, section 298.46, subdivision 5, is amended to read:
121.5    Subd. 5. Payment of costs; reimbursement. The cost of such exploration or drilling
121.6plus any damages to the property which may be assessed by the district court shall be paid
121.7by the commissioner of Iron Range resources and rehabilitation Board from amounts
121.8appropriated to that board the commissioner under section 298.22. The commissioner of
121.9Iron Range resources and rehabilitation Board shall be reimbursed for one-half of the
121.10amounts thus expended. Such reimbursement shall be made by the taxing districts in the
121.11proportion that each such taxing district's levy on the property involved bears to the total
121.12levy on such property. Such reimbursement shall be made to the commissioner of Iron
121.13Range resources and rehabilitation Board in the manner provided by section 298.221.

121.14    Sec. 53. Minnesota Statutes 2016, section 298.46, subdivision 6, is amended to read:
121.15    Subd. 6. Refusal to reimburse; reduction of other payments. If any taxing district
121.16refuses to pay its share of the reimbursement as provided in subdivision 5, the county auditor
121.17is hereby authorized to reduce payments required to be made by the county to such taxing
121.18district under other provisions of law. Thereafter the auditor shall draw a warrant, which
121.19shall be deposited with the state treasury in accordance with section 298.221, to the credit
121.20of the commissioner of Iron Range resources and rehabilitation Board.

121.21    Sec. 54. Minnesota Statutes 2016, section 466.03, subdivision 6c, is amended to read:
121.22    Subd. 6c. Water access sites. Any claim based upon the construction, operation, or
121.23maintenance by a municipality of a water access site created by the commissioner of Iron
121.24Range resources and rehabilitation Board. A water access site under this subdivision that
121.25provides access to an idled, water filled mine pit also includes the entire water filled area
121.26of the pit, and, further, claims related to a mine pit water access site under this subdivision
121.27include those based upon the caving or slumping of mine pit walls.

121.28    Sec. 55. Minnesota Statutes 2016, section 469.310, subdivision 9, is amended to read:
121.29    Subd. 9. Local government unit. "Local government unit" means a statutory or home
121.30rule charter city, county, town, the Department of Iron Range Resources and Rehabilitation
122.1agency, regional development commission, or a federally designated economic development
122.2district.

122.3    Sec. 56. Minnesota Statutes 2016, section 474A.02, subdivision 21, is amended to read:
122.4    Subd. 21. Preliminary resolution. "Preliminary resolution" means a resolution adopted
122.5by the governing body or board of the issuer, or in the case of the by the commissioner of
122.6Iron Range resources and rehabilitation Board by the commissioner. The resolution must
122.7express a preliminary intention of the issuer to issue obligations for a specific project,
122.8identify the proposed project, and disclose the proposed amount of qualified bonds to be
122.9issued. Preliminary resolutions for mortgage bonds and student loan bonds need not identify
122.10a specific project.

122.11    Sec. 57. Laws 2010, chapter 389, article 5, section 7, is amended to read:
122.12    Sec. 7. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY.
122.13    Subdivision 1. Additional taxes authorized. Notwithstanding Minnesota Statutes,
122.14section 477A.016, or any other law, ordinance, or charter provision to the contrary, the city
122.15of Biwabik, upon approval both by its governing body and by the vote of at least seven
122.16members of the Iron Range Resources and Rehabilitation Board, may impose any or all of
122.17the taxes described in this section.
122.18    Subd. 2. Use of proceeds. The proceeds of any taxes imposed under this section, less
122.19refunds and costs of collection, must be deposited into the Iron Range Resources and
122.20Rehabilitation Board account enterprise fund created under the provisions of Minnesota
122.21Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the
122.22commissioner of the Iron Range resources and rehabilitation Board, upon approval by the
122.23vote of at least seven members of after consultation with the Iron Range Resources and
122.24Rehabilitation Board, to pay costs for the construction, renovation, improvement, expansion,
122.25and maintenance of public recreational facilities located in those portions of the city within
122.26the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
122.27subdivision 7
, or to pay any principal, interest, or premium on any bond issued to finance
122.28the construction, renovation, improvement, or expansion of such public recreational facilities.
122.29    Subd. 3. Lodging tax. (a) The city of Biwabik, upon approval both by its governing
122.30body and by the vote of at least seven members of the Iron Range Resources and
122.31Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the
122.32gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This
122.33tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may
123.1be imposed only on gross lodging receipts generated within the Giants Ridge Recreation
123.2Area as defined in Minnesota Statutes, section 298.22, subdivision 7.
123.3(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
123.4imposed under paragraph (a), the change must be approved by both the governing body of
123.5the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
123.6the commissioner consults with the Iron Range Resources and Rehabilitation Board.
123.7    Subd. 4. Admissions and recreation tax. (a) The city of Biwabik, upon approval both
123.8by its governing body and by the vote of at least seven members of the Iron Range Resources
123.9and Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent
123.10on admission receipts to entertainment and recreational facilities and on receipts from the
123.11rental of recreation equipment, at sites within the Giants Ridge Recreation Area as defined
123.12in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota Statutes,
123.13section 297A.99, except for subdivisions 2 and 3, govern the imposition, administration,
123.14collection, and enforcement of the tax authorized in this subdivision.
123.15(b) If the city imposes the tax under paragraph (a), it must include in the ordinance an
123.16exemption for purchases of season tickets or passes.
123.17(c) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
123.18imposed under paragraph (a), the change must be approved by both the governing body of
123.19the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
123.20the commissioner consults with the Iron Range Resources and Rehabilitation Board.
123.21    Subd. 5. Food and beverage tax. (a) The city of Biwabik, upon approval both by its
123.22governing body and by the vote of at least seven members of the Iron Range Resources and
123.23Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more than
123.24one percent on gross receipts of food and beverages sold whether it is consumed on or off
123.25the premises by restaurants and places of refreshment as defined by resolution of the city
123.26within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
123.27subdivision 7
. The provisions of Minnesota Statutes, section 297A.99, except for subdivisions
123.282 and 3, govern the imposition, administration, collection, and enforcement of the tax
123.29authorized in this subdivision.
123.30(b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
123.31imposed under paragraph (a), the change must be approved by both the governing body of
123.32the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
123.33the commissioner consults with the Iron Range Resources and Rehabilitation Board.
124.1EFFECTIVE DATE.This section is effective August 1, 2017, without local approval
124.2pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

124.3    Sec. 58. DEPARTMENT OF IRON RANGE RESOURCES AND
124.4REHABILITATION; EARLY SEPARATION INCENTIVE PROGRAM
124.5AUTHORIZATION.
124.6(a) "Commissioner" as used in this section means the commissioner of Iron Range
124.7resources and rehabilitation unless otherwise specified.
124.8(b) Notwithstanding any law to the contrary, the commissioner, in consultation with the
124.9commissioner of management and budget, shall offer a targeted early separation incentive
124.10program for employees of the commissioner who have attained the age of 60 years or who
124.11have received credit for at least 30 years of allowable service under the provisions of
124.12Minnesota Statutes, chapter 352. The commissioner shall also offer a targeted separation
124.13incentive program for employees of the commissioner whose positions are in support of
124.14operations at Giants Ridge and will be eliminated if the department no longer directly
124.15manages Giants Ridge operations.
124.16(c) The early separation incentive program may include one or more of the following:
124.17(1) employer-paid postseparation health, medical, and dental insurance until age 65; and
124.18(2) cash incentives that may, but are not required to be, used to purchase additional years
124.19of service credit through the Minnesota State Retirement System, to the extent that the
124.20purchases are otherwise authorized by law.
124.21(d) The commissioner shall establish eligibility requirements for employees to receive
124.22an incentive. The commissioner must exclude from eligibility for the incentive program
124.23employees having less than 20 years of allowable service who would otherwise qualify for
124.24the incentive program.
124.25(e) The commissioner, consistent with the established program provisions under paragraph
124.26(b), and with the eligibility requirements under paragraph (f), may designate specific
124.27programs or employees as eligible to be offered the incentive program.
124.28(f) Acceptance of the offered incentive must be voluntary on the part of the employee
124.29and must be in writing. The incentive may only be offered at the sole discretion of the
124.30commissioner.
125.1(g) The cost of the incentive is payable solely by funds made available to the
125.2commissioner by law, but only on prior approval of the expenditures by the commissioner,
125.3after consultation with the Iron Range Resources and Rehabilitation Board.
125.4(h) Unilateral implementation of this section by the commissioner is not an unfair labor
125.5practice under Minnesota Statutes, chapter 179A.
125.6EFFECTIVE DATE.This section is effective the day following final enactment. This
125.7section is repealed July 30, 2018.

125.8    Sec. 59. REVISOR'S INSTRUCTION.
125.9The revisor of statutes, with cooperation from the House Research Department and the
125.10Senate Counsel, Research and Fiscal Analysis Office, shall prepare legislation that makes
125.11conforming changes in accordance with the provisions of this article. The revisor shall
125.12submit the proposal, in a form ready for introduction, during the 2018 regular legislative
125.13session to the chairs and ranking minority members of the senate and house of representatives
125.14committees with jurisdiction over jobs and economic development.

125.15    Sec. 60. REPEALER.
125.16Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, are
125.17repealed.

125.18ARTICLE 5
125.19UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
125.20POLICY

125.21    Section 1. Minnesota Statutes 2016, section 268.046, subdivision 3, is amended to read:
125.22    Subd. 3. Penalties; application. (a) Any person that violates the requirements of this
125.23section and any taxpaying employer that violates subdivision 1, paragraph (b), or any
125.24nonprofit or government employer that violates subdivision 2, paragraph (b), is subject to
125.25the penalties under section 268.184, subdivision 1a. Penalties are credited to the trust fund.
125.26    (b) Section 268.051, subdivision 4, does not apply to contracts under this section. This
125.27section does not limit or prevent the application of section 268.051, subdivision 4, to any
125.28other transactions or acquisitions involving the taxpaying employer. This section does not
125.29limit or prevent the application of section 268.051, subdivision 4a.
125.30    (c) An assignment of an account upon the execution of a contract under this section and
125.31a termination of a contract with the corresponding assignment of the account is not considered
126.1a separation from employment of any worker covered by the contract. Nothing under this
126.2subdivision causes the person to be liable for any amounts past due under this chapter from
126.3the taxpaying employer or the nonprofit or government employer.
126.4    (d) This section applies to, but is not limited to, persons registered under section 79.255,
126.5but does not apply to persons that obtain An exemption from registration under section
126.679.255, subdivision 9 , does not determine the application of this section.

126.7    Sec. 2. Minnesota Statutes 2016, section 268.065, subdivision 2, is amended to read:
126.8    Subd. 2. Employee leasing company, professional employer organization, or similar
126.9person. (a) A person whose work force consists of 50 percent or more of workers provided
126.10by an employee leasing company, professional employer organization, or similar person
126.11for a fee, is jointly and severally liable for the unpaid amounts that are due under this chapter
126.12or section 116L.20 on the wages paid on the contract with the employee leasing company,
126.13professional employer organization, or similar person.
126.14(b) This subdivision applies to, but is not limited to, persons registered under section
126.1579.255 , but does not apply to agreements with persons that obtain An exemption from
126.16registration under section 79.255, subdivision 9, does not determine the application of this
126.17section.

126.18    Sec. 3. Minnesota Statutes 2016, section 268.085, subdivision 13, is amended to read:
126.19    Subd. 13. Suspension from employment. (a) An applicant who has been suspended
126.20from employment without pay for 30 calendar days or less, as a result of employment
126.21misconduct or aggravated employment misconduct as defined under section 268.095,
126.22subdivision 6,
is ineligible for unemployment benefits beginning the Sunday of the week
126.23that the applicant was suspended and continuing for the duration of the suspension.
126.24    (b) A suspension from employment without pay that is of indefinite duration or is for
126.25more than 30 calendar days is considered, at the time the suspension begins, a discharge
126.26from employment under subject to section 268.095, subdivision 5.
126.27    (c) A suspension from employment with pay, regardless of duration, is not considered
126.28a separation from employment and the applicant is ineligible for unemployment benefits
126.29for the duration of the suspension with pay.

127.1    Sec. 4. Minnesota Statutes 2016, section 268.095, subdivision 5, is amended to read:
127.2    Subd. 5. Discharge defined. (a) A discharge from employment occurs when any words
127.3or actions by an employer would lead a reasonable employee to believe that the employer
127.4will no longer allow the employee to work for the employer in any capacity. A layoff because
127.5of lack of work is a discharge.
127.6(b) A suspension from employment without pay that is of an indefinite duration or is
127.7for more than 30 calendar days is considered a discharge at the time the suspension begins.
127.8(b) (c) When determining if an applicant was discharged, the theory of a constructive
127.9discharge does not apply.
127.10    (c) (d) An employee who gives notice of intention to quit the employment and is not
127.11allowed by the employer to work the entire notice period is discharged from the employment
127.12as of the date the employer will no longer allow the employee to work. If the discharge
127.13occurs within 30 calendar days before the intended date of quitting, then, as of the intended
127.14date of quitting, the separation from employment is a quit from employment subject to
127.15subdivision 1.
127.16(d) (e) The end of a job assignment with the client of a staffing service is a discharge
127.17from employment with the staffing service unless subdivision 2, paragraph (e), applies.

127.18    Sec. 5. Minnesota Statutes 2016, section 268.101, subdivision 2, is amended to read:
127.19    Subd. 2. Determination. (a) The commissioner must determine any issue of ineligibility
127.20raised by information required from an applicant under subdivision 1, paragraph (a) or (c),
127.21and send to the applicant and any involved employer, by mail or electronic transmission, a
127.22document titled a determination of eligibility or a determination of ineligibility, as is
127.23appropriate. The determination on an issue of ineligibility as a result of a quit or a discharge
127.24of the applicant must state the effect on the employer under section 268.047. A determination
127.25must be made in accordance with this paragraph even if a notified employer has not raised
127.26the issue of ineligibility.
127.27    (b) The commissioner must determine any issue of ineligibility raised by an employer
127.28and send to the applicant and that employer, by mail or electronic transmission, a document
127.29titled a determination of eligibility or a determination of ineligibility as is appropriate. The
127.30determination on an issue of ineligibility as a result of a quit or discharge of the applicant
127.31must state the effect on the employer under section 268.047.
127.32    If a base period employer:
128.1    (1) was not the applicant's most recent employer before the application for unemployment
128.2benefits;
128.3    (2) did not employ the applicant during the six calendar months before the application
128.4for unemployment benefits; and
128.5    (3) did not raise an issue of ineligibility as a result of a quit or discharge of the applicant
128.6within ten calendar days of notification under subdivision 1, paragraph (b);
128.7then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
128.8weeks following the week that the issue of ineligibility as a result of a quit or discharge of
128.9the applicant was raised by the employer.
128.10    A communication from an employer must specifically set out why the applicant should
128.11be determined ineligible for unemployment benefits for that communication to be considered
128.12to have raised an issue of ineligibility for purposes of this section. A statement of "protest"
128.13or a similar term without more information does not constitute raising an issue of ineligibility
128.14for purposes of this section.
128.15    (c) Subject to section 268.031, an issue of ineligibility is determined based upon that
128.16information required of an applicant, any information that may be obtained from an applicant
128.17or employer, and information from any other source.
128.18    (d) Regardless of the requirements of this subdivision, the commissioner is not required
128.19to send to an applicant a copy of the determination where the applicant has satisfied a period
128.20of ineligibility because of a quit or a discharge under section 268.095, subdivision 10.
128.21    (e) The commissioner may department is authorized to issue a determination on an issue
128.22of ineligibility within 24 months from the establishment of a benefit account based upon
128.23information from any source, even if the issue of ineligibility was not raised by the applicant
128.24or an employer.
128.25    If an applicant obtained unemployment benefits through fraud misrepresentation under
128.26section 268.18, subdivision 2, the department is authorized to issue a determination of
128.27ineligibility may be issued within 48 months of the establishment of the benefit account.
128.28    If the department has filed an intervention in a worker's compensation matter under
128.29section 176.361, the department is authorized to issue a determination of ineligibility within
128.3048 months of the establishment of the benefit account.
128.31    (f) A determination of eligibility or determination of ineligibility is final unless an appeal
128.32is filed by the applicant or employer within 20 calendar days after sending. The determination
129.1must contain a prominent statement indicating the consequences of not appealing.
129.2Proceedings on the appeal are conducted in accordance with section 268.105.
129.3    (g) An issue of ineligibility required to be determined under this section includes any
129.4question regarding the denial or allowing of unemployment benefits under this chapter
129.5except for issues under section 268.07. An issue of ineligibility for purposes of this section
129.6includes any question of effect on an employer under section 268.047.

129.7ARTICLE 6
129.8UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
129.9HOUSEKEEPING

129.10    Section 1. Minnesota Statutes 2016, section 268.035, subdivision 20, is amended to read:
129.11    Subd. 20. Noncovered employment. "Noncovered employment" means:
129.12    (1) employment for the United States government or an instrumentality thereof, including
129.13military service;
129.14    (2) employment for a state, other than Minnesota, or a political subdivision or
129.15instrumentality thereof;
129.16    (3) employment for a foreign government;
129.17    (4) employment covered under the federal Railroad Unemployment Insurance Act;
129.18    (5) employment for a church or convention or association of churches, or a nonprofit
129.19organization operated primarily for religious purposes that is operated, supervised, controlled,
129.20or principally supported by a church or convention or association of churches;
129.21    (6) employment for an elementary or secondary school with a curriculum that includes
129.22religious education that is operated by a church, a convention or association of churches,
129.23or a nonprofit organization that is operated, supervised, controlled, or principally supported
129.24by a church or convention or association of churches;
129.25    (6) (7) employment for Minnesota or a political subdivision, or a nonprofit organization,
129.26of a duly ordained or licensed minister of a church in the exercise of a ministry or by a
129.27member of a religious order in the exercise of duties required by the order;
129.28    (7) (8) employment for Minnesota or a political subdivision, or a nonprofit organization,
129.29of an individual receiving rehabilitation of "sheltered" work in a facility conducted for the
129.30purpose of carrying out a program of rehabilitation for individuals whose earning capacity
129.31is impaired by age or physical or mental deficiency or injury or a program providing
129.32"sheltered" work for individuals who because of an impaired physical or mental capacity
130.1cannot be readily absorbed in the competitive labor market. This clause applies only to
130.2services performed in a facility certified by the Rehabilitation Services Branch of the
130.3department or in a day training or habilitation program licensed by the Department of Human
130.4Services;
130.5    (8) (9) employment for Minnesota or a political subdivision, or a nonprofit organization,
130.6of an individual receiving work relief or work training as part of an unemployment work
130.7relief or work training program assisted or financed in whole or in part by any federal agency
130.8or an agency of a state or political subdivision thereof. This clause does not apply to programs
130.9that require unemployment benefit coverage for the participants;
130.10    (9) (10) employment for Minnesota or a political subdivision, as an elected official, a
130.11member of a legislative body, or a member of the judiciary;
130.12    (10) (11) employment as a member of the Minnesota National Guard or Air National
130.13Guard;
130.14    (11) (12) employment for Minnesota or a political subdivision, or instrumentality thereof,
130.15of an individual serving on a temporary basis in case of fire, flood, tornado, or similar
130.16emergency;
130.17    (12) (13) employment as an election official or election worker for Minnesota or a
130.18political subdivision, if the compensation for that employment was less than $1,000 in a
130.19calendar year;
130.20    (13) (14) employment for Minnesota that is a major policy-making or advisory position
130.21in the unclassified service;
130.22(14) (15) employment for Minnesota in an unclassified position established under section
130.2343A.08, subdivision 1a ;
130.24    (15) (16) employment for a political subdivision of Minnesota that is a nontenured major
130.25policy making or advisory position;
130.26    (16) (17) domestic employment in a private household, local college club, or local chapter
130.27of a college fraternity or sorority, if the wages paid in any calendar quarter in either the
130.28current or prior calendar year to all individuals in domestic employment totaled less than
130.29$1,000.
130.30    "Domestic employment" includes all service in the operation and maintenance of a
130.31private household, for a local college club, or local chapter of a college fraternity or sorority
130.32as distinguished from service as an employee in the pursuit of an employer's trade or business;
131.1    (17) (18) employment of an individual by a son, daughter, or spouse, and employment
131.2of a child under the age of 18 by the child's father or mother;
131.3(18) (19) employment of an inmate of a custodial or penal institution;
131.4    (19) (20) employment for a school, college, or university, by a student who is enrolled
131.5and whose primary relation to the school, college, or university is as a student. This does
131.6not include an individual whose primary relation to the school, college, or university is as
131.7an employee who also takes courses;
131.8    (20) (21) employment of an individual who is enrolled as a student in a full-time program
131.9at a nonprofit or public educational institution that maintains a regular faculty and curriculum
131.10and has a regularly organized body of students in attendance at the place where its educational
131.11activities are carried on, taken for credit at the institution, that combines academic instruction
131.12with work experience, if the employment is an integral part of the program, and the institution
131.13has so certified to the employer, except that this clause does not apply to employment in a
131.14program established for or on behalf of an employer or group of employers;
131.15    (21) (22) employment of university, college, or professional school students in an
131.16internship or other training program with the city of St. Paul or the city of Minneapolis
131.17under Laws 1990, chapter 570, article 6, section 3;
131.18    (22) (23) employment for a hospital by a patient of the hospital. "Hospital" means an
131.19institution that has been licensed by the Department of Health as a hospital;
131.20    (23) (24) employment as a student nurse for a hospital or a nurses' training school by
131.21an individual who is enrolled and is regularly attending classes in an accredited nurses'
131.22training school;
131.23    (24) (25) employment as an intern for a hospital by an individual who has completed a
131.24four-year course in an accredited medical school;
131.25    (25) (26) employment as an insurance salesperson, by other than a corporate officer, if
131.26all the wages from the employment is solely by way of commission. The word "insurance"
131.27includes an annuity and an optional annuity;
131.28    (26) (27) employment as an officer of a township mutual insurance company or farmer's
131.29mutual insurance company under chapter 67A;
131.30    (27) (28) employment of a corporate officer, if the officer directly or indirectly, including
131.31through a subsidiary or holding company, owns 25 percent or more of the employer
131.32corporation, and employment of a member of a limited liability company, if the member
132.1directly or indirectly, including through a subsidiary or holding company, owns 25 percent
132.2or more of the employer limited liability company;
132.3    (28) (29) employment as a real estate salesperson, other than a corporate officer, if all
132.4the wages from the employment is solely by way of commission;
132.5    (29) (30) employment as a direct seller as defined in United States Code, title 26, section
132.63508;
132.7    (30) (31) employment of an individual under the age of 18 in the delivery or distribution
132.8of newspapers or shopping news, not including delivery or distribution to any point for
132.9subsequent delivery or distribution;
132.10    (31) (32) casual employment performed for an individual, other than domestic
132.11employment under clause (16) (17), that does not promote or advance that employer's trade
132.12or business;
132.13    (32) (33) employment in "agricultural employment" unless it is "covered agricultural
132.14employment" under subdivision 11; or
132.15    (33) (34) if employment during one-half or more of any pay period was covered
132.16employment, all the employment for the pay period is covered employment; but if during
132.17more than one-half of any pay period the employment was noncovered employment, then
132.18all of the employment for the pay period is noncovered employment. "Pay period" means
132.19a period of not more than a calendar month for which a payment or compensation is ordinarily
132.20made to the employee by the employer.

132.21    Sec. 2. Minnesota Statutes 2016, section 268.035, subdivision 21d, is amended to read:
132.22    Subd. 21d. Staffing service. A "staffing service" is an employer whose business involves
132.23employing individuals directly for the purpose of furnishing temporary assignment workers
132.24to clients support or supplement the workforce of the business that is a client of the staffing
132.25service.

132.26    Sec. 3. Minnesota Statutes 2016, section 268.051, subdivision 9, is amended to read:
132.27    Subd. 9. Assessments, fees, and surcharges; treatment. Any assessment, fee, or
132.28surcharge imposed under the Minnesota Unemployment Insurance Law is treated the same
132.29as, and considered as, a tax. Any assessment, fee, or surcharge is subject to the same
132.30collection procedures that apply to past due taxes.

133.1    Sec. 4. Minnesota Statutes 2016, section 268.07, subdivision 3b, is amended to read:
133.2    Subd. 3b. Limitations on applications and benefit accounts. (a) An application for
133.3unemployment benefits is effective the Sunday of the calendar week that the application
133.4was filed. An application for unemployment benefits may be backdated one calendar week
133.5before the Sunday of the week the application was actually filed if the applicant requests
133.6the backdating within seven calendar days of the date the application is filed. An application
133.7may be backdated only if the applicant was unemployed during the period of the backdating.
133.8If an individual attempted to file an application for unemployment benefits, but was prevented
133.9from filing an application by the department, the application is effective the Sunday of the
133.10calendar week the individual first attempted to file an application.
133.11    (b) A benefit account established under subdivision 2 is effective the date the application
133.12for unemployment benefits was effective.
133.13    (c) A benefit account, once established, may later be withdrawn only if:
133.14    (1) the applicant has not been paid any unemployment benefits on that benefit account;
133.15and
133.16(2) a new application for unemployment benefits is filed and a new benefit account is
133.17established at the time of the withdrawal.
133.18A benefit account may be withdrawn after the expiration of the benefit year, and the
133.19new work requirements of subdivision 2, paragraph (b), do not apply if the applicant was
133.20not paid any unemployment benefits on the benefit account that is being withdrawn.
133.21    A determination or amended determination of eligibility or ineligibility issued under
133.22section 268.101, that was sent before the withdrawal of the benefit account, remains in
133.23effect and is not voided by the withdrawal of the benefit account.
133.24    (d) An application for unemployment benefits is not allowed before the Sunday following
133.25the expiration of the benefit year on a prior benefit account. Except as allowed under
133.26paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks.
133.27This paragraph applies to benefit accounts established under any federal law or the law of
133.28any other state.

133.29    Sec. 5. Minnesota Statutes 2016, section 268.085, subdivision 1, is amended to read:
133.30    Subdivision 1. Eligibility conditions. An applicant may be eligible to receive
133.31unemployment benefits for any week if:
134.1    (1) the applicant has filed a continued request for unemployment benefits for that week
134.2under section 268.0865;
134.3    (2) the week for which unemployment benefits are requested is in the applicant's benefit
134.4year;
134.5    (3) the applicant was unemployed as defined in section 268.035, subdivision 26;
134.6    (4) the applicant was available for suitable employment as defined in subdivision 15.
134.7The applicant's weekly unemployment benefit amount is reduced one-fifth for each day the
134.8applicant is unavailable for suitable employment. This clause does not apply to an applicant
134.9who is in reemployment assistance training, or each day the applicant is on jury duty or
134.10serving as an election judge;
134.11    (5) the applicant was actively seeking suitable employment as defined in subdivision
134.1216. This clause does not apply to an applicant who is in reemployment assistance training
134.13or who was on jury duty throughout the week;
134.14(6) the applicant has served a nonpayable period of one week that the applicant is
134.15otherwise eligible for some amount of unemployment benefits. This clause does not apply
134.16if the applicant would have been eligible for federal disaster unemployment assistance
134.17because of a disaster in Minnesota, but for the applicant's establishment of a benefit account
134.18under section 268.07; and
134.19    (7) the applicant has been participating in reemployment assistance services, such as
134.20development of, and adherence to, a work search plan, if the applicant has been directed to
134.21participate by the commissioner. This clause does not apply if the applicant has good cause
134.22for failing to participate. "Good cause" is a reason that would have prevented a reasonable
134.23person acting with due diligence from participating.

134.24    Sec. 6. Minnesota Statutes 2016, section 268.085, subdivision 13a, is amended to read:
134.25    Subd. 13a. Leave of absence. (a) An applicant on a voluntary leave of absence is
134.26ineligible for unemployment benefits for the duration of the leave of absence. An applicant
134.27on an involuntary leave of absence is not ineligible under this subdivision.
134.28    A leave of absence is voluntary when work that the applicant can then perform is available
134.29with the applicant's employer but the applicant chooses not to work. A medical leave of
134.30absence is not presumed to be voluntary.
134.31    (b) A period of vacation requested by the applicant, paid or unpaid, is considered a
134.32voluntary leave of absence. A vacation period assigned by an employer under: (1) a uniform
135.1vacation shutdown; (2) a collective bargaining agreement; or (3) an established employer
135.2policy, is considered an involuntary leave of absence.
135.3    (c) A leave of absence is a temporary stopping of work that has been approved by the
135.4employer. A voluntary leave of absence is not considered a quit and an involuntary leave
135.5of absence is not considered a discharge from employment for purposes of section 268.095.
135.6    (d) An applicant who is on a paid leave of absence, whether the leave of absence is
135.7voluntary or involuntary, is ineligible for unemployment benefits for the duration of the
135.8leave.
135.9    (e) This subdivision applies to a leave of absence from a base period employer, an
135.10employer during the period between the end of the base period and the effective date of the
135.11benefit account, or an employer during the benefit year.

135.12    Sec. 7. Minnesota Statutes 2016, section 268.105, subdivision 2, is amended to read:
135.13    Subd. 2. Request for reconsideration. (a) Any party, or the commissioner, may within
135.1420 calendar days of the sending of the unemployment law judge's decision under subdivision
135.151a, file a request for reconsideration asking the judge to reconsider that decision.
135.16    (b) Upon a request for reconsideration having been filed, the chief unemployment law
135.17judge must send a notice, by mail or electronic transmission, to all parties that a request for
135.18reconsideration has been filed. The notice must inform the parties:
135.19    (1) that reconsideration is the procedure for the unemployment law judge to correct any
135.20factual or legal mistake in the decision, or to order an additional hearing when appropriate;
135.21    (2) of the opportunity to provide comment on the request for reconsideration, and the
135.22right under subdivision 5 to obtain a copy of any recorded testimony and exhibits offered
135.23or received into evidence at the hearing;
135.24    (3) that providing specific comments as to a perceived factual or legal mistake in the
135.25decision, or a perceived mistake in procedure during the hearing, will assist the
135.26unemployment law judge in deciding the request for reconsideration;
135.27    (4) of the right to obtain any comments and submissions provided by any other party
135.28regarding the request for reconsideration; and
135.29    (5) of the provisions of paragraph (c) regarding additional evidence.
135.30This paragraph does not apply if paragraph (d) is applicable. Sending the notice does not
135.31mean the unemployment law judge has decided the request for reconsideration was timely
135.32filed.
136.1    (c) In deciding a request for reconsideration, the unemployment law judge must not
136.2consider any evidence that was not submitted at the hearing, except for purposes of
136.3determining whether to order an additional hearing.
136.4    The unemployment law judge must order an additional hearing if a party shows that
136.5evidence which was not submitted at the hearing:
136.6    (1) would likely change the outcome of the decision and there was good cause for not
136.7having previously submitted that evidence; or
136.8    (2) would show that the evidence that was submitted at the hearing was likely false and
136.9that the likely false evidence had an effect on the outcome of the decision.
136.10    "Good cause" for purposes of this paragraph is a reason that would have prevented a
136.11reasonable person acting with due diligence from submitting the evidence.
136.12    (d) If the party who filed the request for reconsideration failed to participate in the
136.13hearing, the unemployment law judge must issue an order setting aside the decision and
136.14ordering an additional hearing if the party who failed to participate had good cause for
136.15failing to do so. The party who failed to participate in the hearing must be informed of the
136.16requirement to show good cause for failing to participate. If the unemployment law judge
136.17determines that good cause for failure to participate has not been shown, the judge must
136.18state that in the decision issued under paragraph (f).
136.19    Submission of a written statement at the hearing does not constitute participation for
136.20purposes of this paragraph.
136.21    "Good cause" for purposes of this paragraph is a reason that would have prevented a
136.22reasonable person acting with due diligence from participating in the hearing.
136.23    (e) A request for reconsideration must be decided by the unemployment law judge who
136.24issued the decision under subdivision 1a unless that judge:
136.25    (1) is no longer employed by the department;
136.26    (2) is on an extended or indefinite leave; or
136.27    (3) has been removed from the proceedings by the chief unemployment law judge.
136.28    (f) If a request for reconsideration is timely filed, the unemployment law judge must
136.29issue:
136.30(1) a decision affirming the findings of fact, reasons for decision, and decision issued
136.31under subdivision 1a;
137.1(2) a decision modifying the findings of fact, reasons for decision, and decision under
137.2subdivision 1a; or
137.3(3) an order setting aside the findings of fact, reasons for decision, and decision issued
137.4under subdivision 1a, and ordering an additional hearing.
137.5    The unemployment law judge must issue a decision dismissing the request for
137.6reconsideration as untimely if the judge decides the request for reconsideration was not
137.7filed within 20 calendar days after the sending of the decision under subdivision 1a.
137.8    The unemployment law judge must send to all parties, by mail or electronic transmission,
137.9the decision or order issued under this subdivision. A decision affirming or modifying the
137.10previously issued findings of fact, reasons for decision, and decision, or a decision dismissing
137.11the request for reconsideration as untimely, is the final decision on the matter and is binding
137.12on the parties unless judicial review is sought under subdivision 7.

137.13ARTICLE 7
137.14UNEMPLOYMENT INSURANCE ADVISORY COUNCIL
137.15TECHNICAL

137.16    Section 1. Minnesota Statutes 2016, section 268.031, subdivision 1, is amended to read:
137.17    Subdivision 1. Standard of proof. All issues of fact under the Minnesota Unemployment
137.18Insurance Law are determined by a preponderance of the evidence.

137.19    Sec. 2. Minnesota Statutes 2016, section 268.035, subdivision 15, is amended to read:
137.20    Subd. 15. Employment. (a) "Employment" means service performed by:
137.21    (1) an individual who is considered an employee under the common law of
137.22employer-employee and not considered an independent contractor;
137.23    (2) an officer of a corporation;
137.24    (3) a member of a limited liability company who is considered an employee under the
137.25common law of employer-employee; or
137.26    (4) product demonstrators in retail stores or other locations to aid in the sale of products.
137.27The person that pays the wages is considered the employer; or.
137.28    (5) an individual who performs services for a person for compensation, as:
137.29    (i) an agent-driver or commission-driver engaged in distributing meat products, vegetable
137.30products, fruit products, beverages, or laundry or dry cleaning services; or
138.1    (ii) a traveling or city salesperson, other than as an agent-driver or commission-driver,
138.2engaged full-time in the solicitation on behalf of the person, of orders from wholesalers,
138.3retailers, contractors, or operators of hotels, restaurants, or other similar establishments for
138.4merchandise for resale or supplies for use in their business operations.
138.5    This clause applies only if the contract of service provides that substantially all of the
138.6services are to be performed personally by the individual, and the services are part of a
138.7continuing relationship with the person for whom the services are performed, and the
138.8individual does not have a substantial investment in facilities used in connection with the
138.9performance of the services, other than facilities for transportation.
138.10    (b) Employment does not include service as a juror.
138.11    (c) Construction industry employment is defined in subdivision 9a. Trucking and
138.12messenger/courier industry employment is defined in subdivision 25b. Rules on determining
138.13worker employment status are described under Minnesota Rules, chapter 3315.

138.14    Sec. 3. Minnesota Statutes 2016, section 268.035, subdivision 23, is amended to read:
138.15    Subd. 23. State's average annual and average weekly wage. (a) On or before June 30
138.16of each year, the commissioner must calculate, from wage detail reports under section
138.17268.044, the state's average annual wage and the state's average weekly wage in the following
138.18manner:
138.19    (1) the sum of the total monthly covered employment reported by all employers for the
138.20prior calendar year is divided by 12 to calculate the average monthly covered employment.;
138.21    (2) the sum of the total wages paid for all covered employment reported by all employers
138.22for the prior calendar year is divided by the average monthly covered employment to calculate
138.23the state's average annual wage.; and
138.24    (3) the state's average annual wage is divided by 52 to calculate the state's average weekly
138.25wage.
138.26    (b) For purposes of calculating the amount of taxable wages under subdivision 24, the
138.27state's average annual wage applies to the calendar year following the calculation.
138.28    (c) For purposes of calculating (1) the state's maximum weekly unemployment benefit
138.29amount available on any benefit account under section 268.07, subdivision 2a, and (2) the
138.30state's average weekly wage applies to the one-year period beginning the last Sunday in
138.31October of the calendar year of the calculation.
139.1    (d) For purposes of calculating the wage credits necessary to establish a benefit account
139.2under section 268.07, subdivision 2, the state's average weekly wage applies to the one-year
139.3period beginning the last Sunday in October of the calendar year of the calculation.

139.4    Sec. 4. Minnesota Statutes 2016, section 268.035, subdivision 30, is amended to read:
139.5    Subd. 30. Wages paid. (a) "Wages paid" means the amount of wages:
139.6    (1) that have been actually paid; or
139.7    (2) that have been credited to or set apart so that payment and disposition is under the
139.8control of the employee.
139.9    (b) Wage payments delayed beyond the regularly scheduled pay date are considered
139.10"wages paid" on the missed pay date. Back pay is considered "wages paid" on the date of
139.11actual payment. Any wages earned but not paid with no scheduled date of payment is
139.12considered are "wages paid" on the last day of employment.
139.13    (c) Wages paid does not include wages earned but not paid except as provided for in
139.14this subdivision.

139.15    Sec. 5. Minnesota Statutes 2016, section 268.042, subdivision 1, is amended to read:
139.16    Subdivision 1. Employer registration. (a) Each employer must, upon or before the
139.17submission of its first wage detail report under section 268.044, register with the
139.18commissioner for a tax account or a reimbursable account, by electronic transmission in a
139.19format prescribed by the commissioner. The employer must provide all required information
139.20for registration, including the actual physical street and city address of the employer.
139.21    (b) Within 30 calendar days, each employer must notify the commissioner by electronic
139.22transmission, in a format prescribed, of a change in legal entity, of the transfer, sale, or
139.23acquisition of a business conducted in Minnesota, in whole or in part, if the transaction
139.24results in the creation of a new or different employer or affects the establishment of employer
139.25accounts, the assignment of tax rates, or the transfer of experience rating history.
139.26    (c) Except as provided in subdivision 3, any person that is or becomes an employer
139.27subject to the Minnesota Unemployment Insurance Law with covered employment within
139.28any calendar year is considered to be subject to this chapter the entire calendar year.
139.29    (d) Within 30 calendar days of the termination of business, an employer that has been
139.30assigned a tax account or reimbursable account must notify the commissioner by electronic
139.31transmission, in a format prescribed by the commissioner, if that employer does not intend
140.1or expect to pay wages to any employees in covered employment during the current or the
140.2next calendar year. Upon notification, the employer is no longer required to file wage detail
140.3reports under section 268.044, subdivision 1, paragraph (d), and the employer's account
140.4must be terminated.
140.5    (e) An employer that has its account terminated regains its previous tax account under
140.6section 268.045, with the experience rating history of that account, if the employer again
140.7commences business and again pays wages in covered employment if:
140.8    (1) less than 14 calendar quarters have elapsed in which no wages were paid for covered
140.9employment;
140.10    (2) the experience rating history regained contains taxable wages; and
140.11    (3) the experience rating history has not been transferred to a successor under section
140.12268.051, subdivision 4 .

140.13    Sec. 6. Minnesota Statutes 2016, section 268.051, subdivision 1, is amended to read:
140.14    Subdivision 1. Payments. (a) Unemployment insurance taxes and any special
140.15assessments, fees, or surcharges accrue and become payable by each employer for each
140.16calendar year on the taxable wages that the employer paid to employees in covered
140.17employment, except for:
140.18    (1) nonprofit organizations that elect to make reimbursements as provided in section
140.19268.053 ; and
140.20    (2) the state of Minnesota and political subdivisions that make reimbursements, unless
140.21they elect to pay taxes as provided in section 268.052.
140.22    Each employer must pay taxes quarterly, at the employer's assigned tax rate under
140.23subdivision 6, on the taxable wages paid to each employee. The commissioner must compute
140.24the tax due from the wage detail report required under section 268.044 and notify the
140.25employer of the tax due. The taxes and any special assessments, fees, or surcharges must
140.26be paid to the trust fund and must be received by the department on or before the last day
140.27of the month following the end of the calendar quarter.
140.28    (b) If for any reason the wages on the wage detail report under section 268.044 are
140.29adjusted for any quarter, the commissioner must recompute the taxes due for that quarter
140.30and assess the employer for any amount due or credit the employer as appropriate.

141.1    Sec. 7. Minnesota Statutes 2016, section 268.07, subdivision 2, is amended to read:
141.2    Subd. 2. Benefit account requirements. (a) Unless paragraph (b) applies, to establish
141.3a benefit account an applicant must have total wage credits in the applicant's four quarter
141.4base period of at least 5.3 percent of the state's average annual wage rounded down to the
141.5next lower $100.
141.6(b) To establish a new benefit account following the expiration of the benefit year on a
141.7prior benefit account, an applicant must have performed actual work in subsequent covered
141.8employment and have been paid wages in one or more completed calendar quarters that
141.9started after the effective date of the prior benefit account. The wages paid for that
141.10employment must be at least enough to meet the requirements of paragraph (a). A benefit
141.11account under this paragraph may not be established effective earlier than the Sunday
141.12following the end of the most recent completed calendar quarter in which the requirements
141.13of paragraph (a) were met. An applicant may not establish a second benefit account as a
141.14result of one loss of employment.

141.15    Sec. 8. Minnesota Statutes 2016, section 268.07, subdivision 3a, is amended to read:
141.16    Subd. 3a. Right of appeal. (a) A determination or amended determination of benefit
141.17account is final unless an applicant or base period employer within 20 calendar days after
141.18the sending of the determination or amended determination files an appeal. Every
141.19determination or amended determination of benefit account must contain a prominent
141.20statement indicating in clear language the consequences of not appealing. Proceedings on
141.21the appeal are conducted in accordance with section 268.105.
141.22    (b) Any applicant or base period employer may appeal from a determination or amended
141.23determination of benefit account on the issue of whether services performed constitute
141.24employment, whether the employment is considered covered employment, and whether
141.25money paid constitutes wages. Proceedings on the appeal are conducted in accordance with
141.26section 268.105.

141.27    Sec. 9. Minnesota Statutes 2016, section 268.085, subdivision 6, is amended to read:
141.28    Subd. 6. Receipt of back pay. (a) Back pay received by an applicant within 24 months
141.29of the establishment of the benefit account with respect to any week must be deducted from
141.30unemployment benefits paid for that week, and the applicant is considered to have been
141.31overpaid the unemployment benefits under section 268.18, subdivision 1.
142.1    If the back pay is not paid with respect to a specific period, the back pay must be applied
142.2to the period immediately following the last day of employment.
142.3    (b) If the back pay is reduced by the amount of unemployment benefits that have been
142.4paid, the amount of back pay withheld and not paid the applicant must be:
142.5    (1) paid by the taxpaying or reimbursing employer to the trust fund within 30 calendar
142.6days and is subject to the same collection procedures that apply to past due taxes and
142.7reimbursements; and
142.8    (2) when received by the trust fund:
142.9    (i) an overpayment of unemployment benefits must be created which, under section
142.10268.047, subdivision 2 , clause (8), clears the employer's tax or reimbursable account of any
142.11effect; and
142.12    (ii) the back pay must then be applied to the unemployment benefit overpayment,
142.13eliminating any effect on the applicant.
142.14(c) The following must result when applying paragraph (b):
142.15(1) an employer neither overpays nor underpays the employer's proper portion of the
142.16unemployment benefit costs; and
142.17(2) the applicant is placed in the same position as never having been paid the
142.18unemployment benefits.
142.19(d) This subdivision applies to payments labeled front pay, settlement pay, and other
142.20terms describing or dealing with wage loss.

142.21    Sec. 10. Minnesota Statutes 2016, section 268.085, subdivision 7, is amended to read:
142.22    Subd. 7. School employees; between terms denial. (a) No Wage credits in any amount
142.23from any employment with any an educational institution or institutions earned in any
142.24capacity may not be used for unemployment benefit purposes for any week during the period
142.25between two successive academic years or terms if:
142.26    (1) the applicant had employment for any an educational institution or institutions in the
142.27prior academic year or term; and
142.28    (2) there is a reasonable assurance that the applicant will have employment for any an
142.29educational institution or institutions in the following academic year or term, unless that.
142.30    This paragraph applies to a vacation period or holiday recess if the applicant was
142.31employed immediately before the vacation period or holiday recess, and there is a reasonable
143.1assurance that the applicant will be employed immediately following the vacation period
143.2or holiday recess. This paragraph also applies to the period between two regular but not
143.3successive terms if there is an agreement for that schedule between the applicant and the
143.4educational institution.
143.5    This paragraph does not apply if the subsequent employment is substantially less
143.6favorable than the employment of the prior academic year or term, or the employment prior
143.7to the vacation period or holiday recess.
143.8    (b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic
143.9year or term, had an agreement for a definite period of employment between academic years
143.10or terms in other than an instructional, research, or principal administrative capacity and
143.11the educational institution or institutions failed to provide that employment.
143.12    (c) If unemployment benefits are denied to any applicant under paragraph (a) who was
143.13employed in the prior academic year or term in other than an instructional, research, or
143.14principal administrative capacity and who was not offered an opportunity to perform the
143.15employment in the following academic year or term, the applicant is entitled to retroactive
143.16unemployment benefits for each week during the period between academic years or terms
143.17that the applicant filed a timely continued request for unemployment benefits, but
143.18unemployment benefits were denied solely because of paragraph (a).
143.19    (d) An educational assistant is not considered to be in an instructional, research, or
143.20principal administrative capacity.
143.21    (e) Paragraph (a) applies to any vacation period or holiday recess if the applicant was
143.22employed immediately before the vacation period or holiday recess, and there is a reasonable
143.23assurance that the applicant will be employed immediately following the vacation period
143.24or holiday recess.
143.25    (f) (d) This subdivision applies to employment with an educational service agency if the
143.26applicant performed the services at an educational institution or institutions. "Educational
143.27service agency" means a governmental agency or entity established and operated exclusively
143.28for the purpose of providing services to one or more educational institutions.
143.29    (e) This subdivision also applies to employment with Minnesota or, a political
143.30subdivision, or a nonprofit organization, if the services are provided to or on behalf of an
143.31educational institution or institutions.
143.32    (g) Paragraphs (a) and (e) apply (f) Paragraph (a) applies beginning the Sunday of the
143.33week that there is a reasonable assurance of employment.
144.1    (h) (g) Employment and a reasonable assurance with multiple education institutions
144.2must be aggregated for purposes of application of this subdivision.
144.3    (i) (h) If all of the applicant's employment with any educational institution or institutions
144.4during the prior academic year or term consisted of on-call employment, and the applicant
144.5has a reasonable assurance of any on-call employment with any educational institution or
144.6institutions for the following academic year or term, it is not considered substantially less
144.7favorable employment.
144.8    (j) Paragraph (a) also applies to the period between two regular but not successive terms.
144.9    (k) (i) A "reasonable assurance" may be written, oral, implied, or established by custom
144.10or practice.
144.11    (l) (j) An "educational institution" is an a school, college, university, or other educational
144.12entity operated by Minnesota or, a political subdivision or an instrumentality thereof, or an
144.13educational a nonprofit organization described in United States Code, title 26, section
144.14501(c)(3) of the federal Internal Revenue Code, and exempt from income tax under section
144.15501(a).
144.16    (k) An "instructional, research, or principal administrative capacity" does not include
144.17an educational assistant.

144.18    Sec. 11. Minnesota Statutes 2016, section 268.085, subdivision 12, is amended to read:
144.19    Subd. 12. Aliens. (a) An alien is ineligible for unemployment benefits for any week the
144.20alien is not authorized to work in the United States under federal law. Information from the
144.21Bureau of Citizenship and Immigration Services is considered conclusive, absent specific
144.22evidence that the information was erroneous. Under the existing agreement between the
144.23United States and Canada, this paragraph does not apply to an applicant who is a Canadian
144.24citizen and has returned to and is living in Canada each week unemployment benefits are
144.25requested.
144.26    (b) Unemployment benefits must not be paid on the basis of An alien's wage credits
144.27earned by an alien may not be used for unemployment benefit purposes unless the alien
144.28was:
144.29    (1) was lawfully admitted for permanent residence at the time of the employment,;
144.30    (2) was lawfully present for the purposes of the employment,; or
144.31    (3) was permanently residing in the United States under color of law at the time of the
144.32employment.
145.1    (c) Any Information required of applicants applying for unemployment benefits to
145.2determine eligibility because of their alien status must be required from of all applicants.

145.3    Sec. 12. Minnesota Statutes 2016, section 268.0865, subdivision 5, is amended to read:
145.4    Subd. 5. Good cause defined. (a) "Good cause" for purposes of this section is a
145.5compelling substantial reason that would have prevented a reasonable person acting with
145.6due diligence from filing a continued request for unemployment benefits within the time
145.7periods required.
145.8    (b) "Good cause" does not include forgetfulness, loss of the continued request form if
145.9filing by mail, having returned to work, having an appeal pending, or inability to file a
145.10continued request for unemployment benefits by the method designated if the applicant was
145.11aware of the inability and did not make diligent effort to have the method of filing a continued
145.12request changed by the commissioner. "Good cause" does not include having previously
145.13made an attempt to file a continued request for unemployment benefits but where the
145.14communication was not considered a continued request because the applicant failed to
145.15submit all required information.

145.16    Sec. 13. Minnesota Statutes 2016, section 268.095, subdivision 1, is amended to read:
145.17    Subdivision 1. Quit. An applicant who quit employment is ineligible for all
145.18unemployment benefits according to subdivision 10 except when:
145.19    (1) the applicant quit the employment because of a good reason caused by the employer
145.20as defined in subdivision 3;
145.21    (2) the applicant quit the employment to accept other covered employment that provided
145.22equal to or better terms and conditions of employment, but the applicant did not work long
145.23enough at the second employment to have sufficient subsequent wages paid to satisfy the
145.24period of ineligibility that would otherwise be imposed under subdivision 10 for quitting
145.25the first employment;
145.26    (3) the applicant quit the employment within 30 calendar days of beginning the
145.27employment and the employment was unsuitable;
145.28    (4) the employment was unsuitable and the applicant quit to enter reemployment
145.29assistance training;
145.30    (5) the employment was part time and the applicant also had full-time employment in
145.31the base period, from which full-time employment the applicant separated because of reasons
145.32for which the applicant is would not be ineligible, and the wage credits from the full-time
146.1employment are sufficient to meet the minimum requirements to establish a benefit account
146.2under section 268.07;
146.3    (6) the applicant quit because the employer notified the applicant that the applicant was
146.4going to be laid off because of lack of work within 30 calendar days. An applicant who quit
146.5employment within 30 calendar days of a notified date of layoff because of lack of work is
146.6ineligible for unemployment benefits through the end of the week that includes the scheduled
146.7date of layoff;
146.8    (7) the applicant quit the employment (i) because the applicant's serious illness or injury
146.9made it medically necessary that the applicant quit; or (ii) in order to provide necessary care
146.10because of the illness, injury, or disability of an immediate family member of the applicant.
146.11This exception only applies if the applicant informs the employer of the medical problem
146.12and requests accommodation and no reasonable accommodation is made available.
146.13    If the applicant's serious illness is chemical dependency, this exception does not apply
146.14if the applicant was previously diagnosed as chemically dependent or had treatment for
146.15chemical dependency, and since that diagnosis or treatment has failed to make consistent
146.16efforts to control the chemical dependency.
146.17    This exception raises an issue of the applicant's being available for suitable employment
146.18under section 268.085, subdivision 1, that the commissioner must determine;
146.19    (8) the applicant's loss of child care for the applicant's minor child caused the applicant
146.20to quit the employment, provided the applicant made reasonable effort to obtain other child
146.21care and requested time off or other accommodation from the employer and no reasonable
146.22accommodation is available.
146.23    This exception raises an issue of the applicant's being available for suitable employment
146.24under section 268.085, subdivision 1, that the commissioner must determine;
146.25    (9) the applicant quit because domestic abuse, sexual assault, or stalking of the applicant
146.26or an immediate family member of the applicant, necessitated the applicant's quitting the
146.27employment.
146.28For purposes of this subdivision:
146.29(i) "domestic abuse" has the meaning given in section 518B.01;
146.30(ii) "sexual assault" means an act that would constitute a violation of sections 609.342
146.31to 609.3453 or 609.352; and
146.32(iii) "stalking" means an act that would constitute a violation of section 609.749; or
147.1(10) the applicant quit in order to relocate to accompany a spouse:
147.2(1) (i) who is in the military; or
147.3(2) (ii) whose job was transferred by the spouse's employer to a new location making it
147.4impractical for the applicant to commute.

147.5    Sec. 14. Minnesota Statutes 2016, section 268.095, subdivision 2, is amended to read:
147.6    Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to end
147.7the employment was, at the time the employment ended, the employee's.
147.8(b) When determining if an applicant quit, the theory of a constructive quit does not
147.9apply.
147.10    (c) An employee who has been notified that the employee will be discharged in the
147.11future, who chooses to end the employment while employment in any capacity is still
147.12available, has quit the employment.
147.13    (d) A notice of quitting in the future does not constitute a quit at the time the notice is
147.14given. An employee who seeks to withdraw a previously submitted notice of quitting in the
147.15future has quit the employment, as of the intended date of quitting, if the employer does not
147.16agree that the notice may be withdrawn.
147.17    (e) An applicant has quit employment with a staffing service if, within five calendar
147.18days after completion of a suitable job assignment from a staffing service, the applicant:
147.19    (1) fails without good cause to affirmatively request an additional suitable job assignment;
147.20    (2) refuses without good cause an additional suitable job assignment offered; or
147.21    (3) accepts employment with the client of the staffing service. Accepting employment
147.22with the client of the staffing service meets the requirements of the exception to ineligibility
147.23under subdivision 1, clause (2).
147.24    This paragraph applies only if, at the time of beginning of employment with the staffing
147.25service, the applicant signed and was provided a copy of a separate document written in
147.26clear and concise language that informed the applicant of this paragraph and that
147.27unemployment benefits may be affected.
147.28    For purposes of this paragraph, "good cause" is a reason that would compel an average,
147.29reasonable worker, who would otherwise want an additional suitable job assignment with
147.30the staffing service (1) to fail to contact the staffing service, or (2) to refuse an offered
147.31assignment.

148.1    Sec. 15. Minnesota Statutes 2016, section 268.131, is amended to read:
148.2268.131 RECIPROCAL UNEMPLOYMENT BENEFIT COMBINED WAGE
148.3ARRANGEMENTS FOR WORK IN MULTIPLE STATES.
148.4    Subdivision 1. Cooperation with other states on combining wages. (a) In accordance
148.5with the requirements of United States Code, title 26, section 3304(a)(9)(B), the Federal
148.6Unemployment Tax Act, the commissioner must participate in reciprocal arrangements with
148.7other states for the payment of unemployment benefits on the basis of combining an
148.8applicant's wages from multiple states for the purposes of collecting unemployment benefits
148.9from a single state. The reciprocal agreement must include provisions for applying the base
148.10period of a single state law to a benefit account involving the combining of an applicant's
148.11wages and employment and avoiding the duplicate use of wages by reason of such combining.
148.12The commissioner may not enter into any reciprocal arrangement unless it contains provisions
148.13for only pay unemployment benefits from the trust fund under this section if:
148.14    (1) there are reimbursements to the trust fund, by the other state, for unemployment
148.15benefits paid from the trust fund to applicants based upon wages and employment covered
148.16under the laws of the other state.; and
148.17    (b) The commissioner is authorized to pay unemployment benefits based upon an
148.18applicant's wages paid in covered employment in another state only if (2) the applicant is
148.19combining Minnesota wage credits with the wages paid in covered employment from another
148.20state or states.
148.21    (c) Section 268.23 does not apply to this subdivision.
148.22    (d) On any reciprocal arrangement, (b) Under this section, the wages paid an applicant
148.23from employment covered under an unemployment insurance program of another state are
148.24considered wages from covered employment for the purpose of determining the applicant's
148.25rights to unemployment benefits under the Minnesota Unemployment Insurance Law.
148.26    Subd. 2. Cooperation with foreign governments. The commissioner is authorized to
148.27enter into or cooperate in arrangements whereby facilities and services provided under the
148.28Minnesota Unemployment Insurance Law and facilities and services provided under the
148.29unemployment insurance program of any foreign government, may be used for the taking
148.30of applications for unemployment benefits and continued requests and the payment of
148.31unemployment benefits under this law or under a similar law of a foreign government.

149.1    Sec. 16. Minnesota Statutes 2016, section 268.18, subdivision 2, is amended to read:
149.2    Subd. 2. Overpayment because of fraud misrepresentation. (a) An applicant has
149.3committed fraud misrepresentation if the applicant is overpaid unemployment benefits by:
149.4    (1) knowingly misrepresenting, misstating, or failing to disclose any material fact; or
149.5    (2) making a false statement or representation without a good faith belief as to the
149.6correctness of the statement or representation.
149.7    After the discovery of facts indicating fraud misrepresentation, the commissioner must
149.8issue a determination of overpayment penalty assessing a penalty equal to 40 percent of the
149.9amount overpaid. This penalty is in addition to penalties under section 268.182.
149.10    (b) Unless the applicant files an appeal within 20 calendar days after the sending of a
149.11determination of overpayment penalty to the applicant by mail or electronic transmission,
149.12the determination is final. Proceedings on the appeal are conducted in accordance with
149.13section 268.105.
149.14    (c) A determination of overpayment penalty must state the methods of collection the
149.15commissioner may use to recover the overpayment, penalty, and interest assessed. Money
149.16received in repayment of overpaid unemployment benefits, penalties, and interest is first
149.17applied to the benefits overpaid, then to the penalty amount due, then to any interest due.
149.1862.5 percent of the payments made toward the penalty are credited to the contingent account
149.19and 37.5 percent credited to the trust fund.
149.20    (d) The department is authorized to issue a determination of overpayment penalty under
149.21this subdivision may be issued within 48 months of the establishment of the benefit account
149.22upon which the unemployment benefits were obtained through fraud misrepresentation.

149.23    Sec. 17. Minnesota Statutes 2016, section 268.18, subdivision 2b, is amended to read:
149.24    Subd. 2b. Interest. On any unemployment benefits fraudulently obtained by
149.25misrepresentation, and any penalty amounts assessed under subdivision 2, the commissioner
149.26must assess interest at the rate of one percent per month on any amount that remains unpaid
149.27beginning 30 calendar days after the date of a determination of overpayment penalty. A
149.28determination of overpayment penalty must state that interest will be assessed. Interest is
149.29assessed in the same manner as on employer debt under section 268.057, subdivision 5.
149.30Interest payments collected under this subdivision are credited to the trust fund.

150.1    Sec. 18. Minnesota Statutes 2016, section 268.18, subdivision 5, is amended to read:
150.2    Subd. 5. Remedies. (a) Any method undertaken to recover an overpayment of
150.3unemployment benefits, including any penalties and interest, is not considered an election
150.4of a method of recovery.
150.5    (b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter
150.6under section 176.361 is not considered an election of a remedy and does not prevent the
150.7commissioner from determining any an applicant ineligible for unemployment benefits
150.8overpaid under subdivision 1 or 2 or taking action under section 268.182.

150.9    Sec. 19. Minnesota Statutes 2016, section 268.182, is amended to read:
150.10268.182 APPLICANT'S FALSE REPRESENTATIONS; CONCEALMENT OF
150.11FACTS FRAUD; CRIMINAL PENALTY.
150.12    Subdivision 1. Criminal penalties. Whoever An individual has committed fraud and is
150.13guilty of theft and must be sentenced under section 609.52 if the individual obtains, or
150.14attempts to obtain, or aids or abets any other individual to obtain, by means of an intentional
150.15false statement or representation, by intentional concealment of a material fact, or by
150.16impersonation or other fraudulent means, unemployment benefits that the individual is not
150.17entitled or unemployment benefits greater than the individual is entitled to under this chapter,
150.18or under the federal law of any state or of the federal government, either personally or for
150.19any other individual, is guilty of theft and must be sentenced under section 609.52.
150.20    Subd. 2. Administrative penalties. (a) Any applicant who knowingly makes a false
150.21statement or representation, who knowingly fails to disclose a material fact, or who makes
150.22a false statement or representation without a good faith belief as to the correctness of the
150.23statement or representation, in order to obtain or in an attempt to obtain unemployment
150.24benefits may be assessed, in addition to any other penalties, an administrative penalty of
150.25being ineligible for unemployment benefits for 13 to 104 weeks.
150.26    (b) A determination of ineligibility setting out the weeks the applicant is ineligible must
150.27be sent to the applicant by mail or electronic transmission. The department is authorized to
150.28issue a determination of ineligibility under this subdivision may be issued within 48 months
150.29of the establishment of the benefit account upon which the unemployment benefits were
150.30obtained, or attempted to be obtained. Unless an appeal is filed within 20 calendar days of
150.31sending, the determination is final. Proceedings on the appeal are conducted in accordance
150.32with section 268.105.

151.1    Sec. 20. Minnesota Statutes 2016, section 268.184, is amended to read:
151.2268.184 EMPLOYER MISCONDUCT; PENALTY MISREPRESENTATION AND
151.3MISREPORTING; ADMINISTRATIVE PENALTIES.
151.4    Subdivision 1. Misrepresentation; administrative penalties. (a) The commissioner
151.5must penalize an employer if that employer or any employee, officer, or agent of that
151.6employer, is in collusion with any applicant for the purpose of assisting the applicant to
151.7receive unemployment benefits fraudulently. The penalty is $500 or the amount of
151.8unemployment benefits determined to be overpaid, whichever is greater.
151.9    (b) The commissioner must penalize an employer if that employer or any employee,
151.10officer, or agent of that employer: (1) made a false statement or representation knowing it
151.11to be false; (2) made a false statement or representation without a good faith belief as to
151.12correctness of the statement or representation; (3) or knowingly failed to disclose a material
151.13fact; or (4) made an offer of employment to an applicant when, in fact, the employer had
151.14no employment available. in order to:
151.15    (1) assist an applicant to receive unemployment benefits to which the applicant is not
151.16entitled;
151.17    (2) prevent or reduce the payment of unemployment benefits to an applicant; or
151.18    (3) avoid or reduce any payment required from an employer under this chapter or section
151.19116L.20.
151.20The penalty is the greater of $500 or 50 percent of the following resulting from the employer's
151.21action:
151.22(i) the amount of any overpaid unemployment benefits to an applicant;
151.23(ii) the amount of unemployment benefits not paid to an applicant that would otherwise
151.24have been paid; or
151.25(iii) the amount of any payment required from the employer under this chapter or section
151.26116L.20 that was not paid.
151.27    (c) (b) The commissioner must penalize an employer if that employer failed or refused
151.28to honor a subpoena issued under section 268.188. The penalty is $500 and any costs of
151.29enforcing the subpoena, including attorney fees.
151.30    (d) (c) Penalties under this subdivision and under section 268.047, subdivision 4,
151.31paragraph (b), are in addition to any other penalties and subject to the same collection
152.1procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of
152.2issuance of the determination of penalty and credited to the trust fund.
152.3    (e) (d) The determination of penalty is final unless the employer files an appeal within
152.420 calendar days after the sending of the determination of penalty to the employer by mail
152.5or electronic transmission. Proceedings on the appeal are conducted in accordance with
152.6section 268.105.
152.7    Subd. 1a. Notification and misreporting penalties. (a) If the commissioner finds that
152.8any employer or agent of an employer failed to meet the notification requirements of section
152.9268.051, subdivision 4 , the employer must be assessed a penalty of $5,000 or two percent
152.10of the first full quarterly payroll acquired, whichever is higher. Payroll is wages paid as
152.11defined in section 268.035, subdivision 30. The penalty under this paragraph must be
152.12canceled if the commissioner determines that the failure occurred because of ignorance or
152.13inadvertence.
152.14    (b) If the commissioner finds that any individual advised an employer to violate the
152.15employer's notification requirements under section 268.051, subdivision 4, the individual,
152.16and that individual's employer, must each be assessed the penalty in paragraph (a).
152.17    (c) If the commissioner finds that any person or agent of a person violated the reporting
152.18requirements of section 268.046, the person must be assessed a penalty of $5,000 or two
152.19percent of the quarterly payroll reported in violation of section 268.046, whichever is higher.
152.20Payroll is wages paid as defined in section 268.035, subdivision 30.
152.21    (d) Penalties under this subdivision are in addition to any other penalties and subject to
152.22the same collection procedures that apply to past due amounts from an employer. Penalties
152.23must be paid within 30 calendar days after sending of the determination of penalty and
152.24credited to the trust fund.
152.25    (e) The determination of penalty is final unless the person assessed files an appeal within
152.2620 calendar days after sending of the determination of penalty by mail or electronic
152.27transmission. Proceedings on the appeal are conducted in accordance with section 268.105.
152.28    Subd. 2. Criminal penalties. Any employer or any officer or agent of an employer or
152.29any other individual who has committed fraud and is guilty of a crime, if in order to avoid
152.30or reduce any payment required from an employer under this chapter or section 116L.20,
152.31or to prevent or reduce the payment of unemployment benefits to an applicant:
152.32(1) makes a false statement or representation knowing it to be false;
153.1(2) knowingly fails to disclose a material fact, including notification required under
153.2section 268.051, subdivision 4; or
153.3(3) knowingly advises or assists an employer in violating clause (1) or (2), to avoid or
153.4reduce any payment required from an employer under this chapter or section 116L.20, or
153.5to prevent or reduce the payment of unemployment benefits to any applicant,.
153.6The individual is guilty of a gross misdemeanor unless if the underpayment exceeds is $500,
153.7in that case or less. The individual is guilty of a felony if the underpayment exceeds $500.

153.8    Sec. 21. Minnesota Statutes 2016, section 268.194, subdivision 1, is amended to read:
153.9    Subdivision 1. Establishment. There is established as a special state trust fund, separate
153.10and apart from all other public money or funds of this state, an unemployment insurance
153.11trust fund, that is administered by the commissioner exclusively for the payment of
153.12unemployment benefits. This trust fund consists of:
153.13    (1) all taxes collected;
153.14    (2) interest earned upon any money in the trust fund;
153.15    (3) reimbursements paid by nonprofit organizations, and the state and political
153.16subdivisions;
153.17    (4) tax rate buydown payments under section 268.051, subdivision 7;
153.18    (5) any money received as a loan from the federal unemployment trust fund in accordance
153.19with United States Code, title 42, section 1321, of the Social Security Act;
153.20    (6) any other money received under a reciprocal unemployment benefit combined wage
153.21arrangement with the federal government or any other state;
153.22(7) money received from the federal government for unemployment benefits paid under
153.23a federal program;
153.24    (7) (8) money recovered on overpaid unemployment benefits;
153.25    (8) (9) all money credited to the account under this chapter;
153.26    (9) (10) all money credited to the account of Minnesota in the federal unemployment
153.27trust fund under United States Code, title 42, section 1103, of the Social Security Act, also
153.28known as the Reed Act; and
153.29    (10) (11) all money received for the trust fund from any other source.

154.1    Sec. 22. Minnesota Statutes 2016, section 268.194, subdivision 4, is amended to read:
154.2    Subd. 4. Reimbursements. The commissioner is authorized to make to other state or
154.3federal agencies and to receive from other state or federal agencies, reimbursements from
154.4or to the trust fund, in accordance with reciprocal combined wage arrangements entered
154.5into under section 268.131.
154.6    Money received under a reciprocal agreement combined wage arrangement must be
154.7placed directly in the unemployment benefit payment account of the trust fund.

154.8    Sec. 23. REVISOR'S INSTRUCTION.
154.9In the following sections of Minnesota Statutes, the revisor of statutes shall delete the
154.10term "considered": Minnesota Statutes, sections 268.035, subdivisions 21c and 26; 268.07,
154.11subdivision 1; 268.085, subdivisions 4a, 13c, 15, and 16; 268.095, subdivision 3; 268.101,
154.12subdivision 6; and 268.105, subdivisions 3a and 7.

154.13    Sec. 24. REVISOR'S INSTRUCTION.
154.14(a) In Minnesota Statutes, section 268.18, the revisor of statutes shall change the term
154.15"fraud" to "misrepresentation" and "nonfraud" to "nonmisrepresentation."
154.16(b) The revisor of statutes shall renumber Minnesota Statutes, section 268.184,
154.17subdivision 2, as Minnesota Statutes, section 268.182, subdivision 1, paragraph (b).
154.18(c) The revisor of statutes shall renumber Minnesota Statutes, section 268.182, subdivision
154.192, as Minnesota Statutes, section 268.183.
154.20(d) The revisor of statutes shall make cross-reference changes needed arising out of the
154.21renumbering in Minnesota Statutes, section 268.032, subdivision 20.

154.22    Sec. 25. REPEALER.
154.23Laws 2005, chapter 112, article 1, section 14, is repealed.

154.24ARTICLE 8
154.25COMMERCE POLICY

154.26    Section 1. Minnesota Statutes 2016, section 45.0135, subdivision 6, is amended to read:
154.27    Subd. 6. Insurance fraud prevention account. The insurance fraud prevention account
154.28is created in the state treasury. Money received from assessments under subdivision 7 and
154.29transferred from the automobile theft prevention account in section sections 65B.84,
155.1subdivision 1
, and 297I.11, subdivision 2, is deposited in the account. Money in this fund
155.2is appropriated to the commissioner of commerce for the purposes specified in this section
155.3and sections 60A.951 to 60A.956.

155.4    Sec. 2. Minnesota Statutes 2016, section 65B.84, subdivision 1, is amended to read:
155.5    Subdivision 1. Program described; commissioner's duties; appropriation. (a) The
155.6commissioner of commerce shall:
155.7(1) develop and sponsor the implementation of statewide plans, programs, and strategies
155.8to combat automobile theft, improve the administration of the automobile theft laws, and
155.9provide a forum for identification of critical problems for those persons dealing with
155.10automobile theft;
155.11(2) coordinate the development, adoption, and implementation of plans, programs, and
155.12strategies relating to interagency and intergovernmental cooperation with respect to
155.13automobile theft enforcement;
155.14(3) annually audit the plans and programs that have been funded in whole or in part to
155.15evaluate the effectiveness of the plans and programs and withdraw funding should the
155.16commissioner determine that a plan or program is ineffective or is no longer in need of
155.17further financial support from the fund;
155.18(4) develop a plan of operation including:
155.19(i) an assessment of the scope of the problem of automobile theft, including areas of the
155.20state where the problem is greatest;
155.21(ii) an analysis of various methods of combating the problem of automobile theft;
155.22(iii) a plan for providing financial support to combat automobile theft;
155.23(iv) a plan for eliminating car hijacking; and
155.24(v) an estimate of the funds required to implement the plan; and
155.25(5) distribute money, in consultation with the commissioner of public safety, pursuant
155.26to subdivision 3 from the automobile theft prevention special revenue account for automobile
155.27theft prevention activities, including:
155.28(i) paying the administrative costs of the program;
155.29(ii) providing financial support to the State Patrol and local law enforcement agencies
155.30for automobile theft enforcement teams;
156.1(iii) providing financial support to state or local law enforcement agencies for programs
156.2designed to reduce the incidence of automobile theft and for improved equipment and
156.3techniques for responding to automobile thefts;
156.4(iv) providing financial support to local prosecutors for programs designed to reduce
156.5the incidence of automobile theft;
156.6(v) providing financial support to judicial agencies for programs designed to reduce the
156.7incidence of automobile theft;
156.8(vi) providing financial support for neighborhood or community organizations or business
156.9organizations for programs designed to reduce the incidence of automobile theft and to
156.10educate people about the common methods of automobile theft, the models of automobiles
156.11most likely to be stolen, and the times and places automobile theft is most likely to occur;
156.12and
156.13(vii) providing financial support for automobile theft educational and training programs
156.14for state and local law enforcement officials, driver and vehicle services exam and inspections
156.15staff, and members of the judiciary.
156.16(b) The commissioner may not spend in any fiscal year more than ten percent of the
156.17money in the fund for the program's administrative and operating costs. The commissioner
156.18is annually appropriated and must distribute the amount of the proceeds credited to the
156.19automobile theft prevention special revenue account each year, less the transfer of $1,300,000
156.20each year to the general fund insurance fraud prevention account described in section 297I.11,
156.21subdivision 2
.
156.22(c) At the end of each fiscal year, the commissioner may transfer any unobligated balances
156.23in the auto theft prevention account to the insurance fraud prevention account under section
156.2445.0135, subdivision 6 .

156.25    Sec. 3. [239.7511] GAS TAX SIGN ON PETROLEUM DISPENSER.
156.26(a) The director must ensure that signs having 12-point font or greater are affixed on
156.27retail petroleum dispensers as follows:
156.28(1) for regular or premium gasoline, a sign that reads: "The price for each gallon of
156.29gasoline includes the current state gasoline tax of 28.5 cents per gallon and federal gasoline
156.30tax of 18.4 cents per gallon. Revenue from the state fuel tax may be used only for roads and
156.31bridges, according to the Minnesota Constitution."; and
157.1(2) for diesel fuel, a sign that reads: "The price for each gallon of diesel fuel includes
157.2the current state gasoline tax of 28.5 cents per gallon and federal gasoline tax of 24.4 cents
157.3per gallon. Revenue from the state fuel tax may be used only for roads and bridges, according
157.4to the Minnesota Constitution."
157.5(b) The director must distribute the signs under this section to the owner or operator of
157.6retail petroleum dispensers. To the extent possible, the director must coordinate the
157.7distribution of signs with other duties the director may have involving retail petroleum
157.8dispensers.
157.9(c) If the amount of the gasoline tax described in paragraph (a), clauses (1) and (2),
157.10changes, the director must distribute revised signs to reflect the updated gasoline tax amounts
157.11within 12 calendar months of the change.
157.12    (d) The director is prohibited from assessing any penalty, fine, or fee on the owner or
157.13operator of a retail petroleum dispenser that has a missing, destroyed, defaced, or otherwise
157.14damaged gas tax sign.

157.15    Sec. 4. Minnesota Statutes 2016, section 297I.11, subdivision 2, is amended to read:
157.16    Subd. 2. Automobile theft prevention account. A special revenue account in the state
157.17treasury shall be credited with the proceeds of the surcharge imposed under subdivision 1.
157.18Of the revenue in the account, $1,300,000 each year must be transferred to the general fund
157.19insurance fraud prevention account under section 45.0135, subdivision 6. Revenues in excess
157.20of $1,300,000 each year may be used only for the automobile theft prevention program
157.21described in section 65B.84.

157.22    Sec. 5. Minnesota Statutes 2016, section 325J.06, is amended to read:
157.23325J.06 EFFECT OF NONREDEMPTION.
157.24(a) A pledgor shall have no obligation to redeem pledged goods or make any payment
157.25on a pawn transaction. Pledged goods not redeemed within at least 60 days of the date of
157.26the pawn transaction, renewal, or extension shall automatically be forfeited to the
157.27pawnbroker, and qualified right, title, and interest in and to the goods shall automatically
157.28vest in the pawnbroker.
157.29(b) The pawnbroker's right, title, and interest in the pledged goods under paragraph (a)
157.30is qualified only by the pledgor's right, while the pledged goods remain in possession of the
157.31pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees
157.32and/or interest accrued up to the date of redemption.
158.1(c) A pawn transaction that involves holding only the title to property is subject to chapter
158.2168A or 336.

158.3    Sec. 6. Minnesota Statutes 2016, section 345.42, is amended by adding a subdivision to
158.4read:
158.5    Subd. 1a. Required lists. (a) Beginning July 1, 2017, and annually thereafter, and
158.6provided that a member has requested it, the commissioner shall provide to each member
158.7of the legislature a list in electronic form of all persons appearing to be owners of abandoned
158.8property whose last known address is located in the legislator's respective legislative district.
158.9(b) Beginning July 1, 2017, and every six months thereafter, and provided that a county
158.10has requested it, the commissioner shall provide to the county a list in electronic form of
158.11all persons appearing to be owners of abandoned property whose last known address is
158.12located in the county. A request under this paragraph must be made in writing by a person
158.13authorized by the county to make the request and is good until canceled.
158.14EFFECTIVE DATE.This section is effective the day following final enactment.

158.15    Sec. 7. Minnesota Statutes 2016, section 345.49, is amended to read:
158.16345.49 CLAIM FOR ABANDONED PROPERTY PAID OR DELIVERED.
158.17    Subdivision 1. Filing. (a) Any person claiming an interest in any property delivered to
158.18the state under sections 345.31 to 345.60 may file a claim thereto or to the proceeds from
158.19the sale thereof on the form prescribed by the commissioner.
158.20(b) Any person claiming an interest in property evidenced by a will or trust document,
158.21or court order, may submit to the commissioner only such portions of the document or order
158.22necessary to establish a claim.
158.23    Subd. 2. Appropriation. There is hereby appropriated to the persons entitled to a refund,
158.24from the fund in the state treasury to which the money was credited, an amount sufficient
158.25to make the refund and payment.
158.26    Subd. 3. Data. Government data received by the commissioner pursuant to this section
158.27is nonpublic data or private data on individuals, as defined in section 13.02, subdivisions 9
158.28and 12.
158.29EFFECTIVE DATE.This section is effective the day following final enactment.

159.1    Sec. 8. [471.9998] MERCHANT BAGS.
159.2    Subdivision 1. Merchant option. All merchants, itinerant vendors, and peddlers doing
159.3business in this state shall have the option to provide customers a paper, plastic, or reusable
159.4bag for the packaging of any item or good purchased, provided such purchase is of a size
159.5and manner commensurate with the use of paper, plastic, or reusable bags.
159.6    Subd. 2. Prohibition; bag ban. Notwithstanding any other provision of law, no political
159.7subdivision shall impose any ban upon the use of paper, plastic, or reusable bags for
159.8packaging of any item or good purchased from a merchant, itinerant vendor, or peddler.
159.9EFFECTIVE DATE.This section is effective May 31, 2017. Ordinances existing on
159.10the effective date of this section that would be prohibited under this section are invalid as
159.11of the effective date of this section.

159.12    Sec. 9. REPORT ON UNCLAIMED PROPERTY DIVISION.
159.13The commissioner shall report by February 15, 2018, to the chairs and ranking minority
159.14members of the standing committees of the house of representatives and senate having
159.15jurisdiction over commerce regarding the process owners of abandoned property must
159.16comply with in order to file an allowed claim under Minnesota Statutes, chapter 345. The
159.17report shall include information regarding the documentation and identification necessary
159.18for owners of each type of abandoned property under Minnesota Statutes, chapter 345, to
159.19file an allowed claim.
159.20EFFECTIVE DATE.This section is effective the day following final enactment.

159.21ARTICLE 9
159.22TELECOMMUNICATIONS POLICY

159.23    Section 1. Minnesota Statutes 2016, section 237.01, is amended by adding a subdivision
159.24to read:
159.25    Subd. 10. Voice-over-Internet protocol service. "Voice-over-Internet protocol service"
159.26or "VoIP service" means any service that (1) enables real-time two-way voice
159.27communications that originate from or terminate at the user's location in Internet protocol
159.28or any successor protocol, and (2) permits users generally to receive calls that originate on
159.29the public switched telephone network and terminate calls to the public switched telephone
159.30network.

160.1    Sec. 2. Minnesota Statutes 2016, section 237.01, is amended by adding a subdivision to
160.2read:
160.3    Subd. 11. Internet protocol-enabled service. "Internet protocol-enabled service" or
160.4"IP-enabled service" means any service, capability, functionality, or application provided
160.5using Internet protocol, or any successor protocol, that enables an end user to send or receive
160.6a communication in Internet protocol format or any successor format, regardless of whether
160.7that communication is voice, data, or video.

160.8    Sec. 3. [237.037] VOICE-OVER-INTERNET PROTOCOL SERVICE AND
160.9INTERNET PROTOCOL-ENABLED SERVICE.
160.10    Subdivision 1. Regulation prohibited. Except as provided in this section, no state
160.11agency, including the commission and the Department of Commerce, or political subdivision
160.12of this state shall by rule, order, or other means directly or indirectly regulate the entry,
160.13rates, terms, quality of service, availability, classification, or any other aspect of VoIP service
160.14or IP-enabled service.
160.15    Subd. 2. VoIP regulation. (a) To the extent permitted by federal law, VoIP service is
160.16subject to the requirements of sections 237.49, 237.52, 237.70, and 403.11 with regard to
160.17the collection and remittance of the surcharges governed by those sections.
160.18(b) A provider of VoIP service must comply with the requirements of chapter 403
160.19applicable to the provision of access to 911 service by service providers, except to the extent
160.20those requirements conflict with federal requirements for the provision of 911 service by
160.21VoIP providers under Code of Federal Regulations, title 47, part 9. A VoIP provider is
160.22entitled to the benefit of the limitation of liability provisions of section 403.07, subdivision
160.235. Beginning June 1, 2017, and continuing each June 1 thereafter, each VoIP provider shall
160.24file a plan with the commission describing how it will comply with the requirements of this
160.25paragraph. After its initial filing under this paragraph, a VoIP provider shall file with the
160.26commission either an update of the plan or a statement certifying that the plan and personnel
160.27contact information previously filed is still current.
160.28    Subd. 3. Relation to other law. Nothing in this section restricts, creates, expands, or
160.29otherwise affects or modifies:
160.30(1) the commission's authority under the Federal Communications Act of 1934, United
160.31States Code, title 47, sections 251 and 252;
160.32(2) any applicable wholesale tariff or any commission authority related to wholesale
160.33services;
161.1(3) any commission jurisdiction over (i) intrastate switched access rates, terms, and
161.2conditions, including the implementation of federal law with respect to intercarrier
161.3compensation, or (ii) existing commission authority to address or affect the resolution of
161.4disputes regarding intercarrier compensation;
161.5(4) the rights of any entity, or the authority of the commission and local government
161.6authorities, with respect to the use and regulation of public rights-of-way under sections
161.7237.162 and 237.163;
161.8(5) the establishment or enforcement of standards, requirements or procedures in
161.9procurement policies, internal operational policies, or work rules of any state agency or
161.10political subdivision of the state relating to the protection of intellectual property; or
161.11(6) the authority of the attorney general to apply and enforce chapters 325C to 325G,
161.12325K to 325M, and other laws of general applicability governing consumer protection and
161.13trade practices.
161.14    Subd. 4. Exemption. The following services delivered by IP-enabled service are not
161.15regulated under this chapter:
161.16(1) video services provided by a cable communications system, as defined in section
161.17238.02, subdivision 3;
161.18(2) cable service, as defined in United States Code, title 47, section 522, clause (6); or
161.19(3) any other IP-enabled video service.
161.20    Subd. 5. Preservation of existing landline telephone service. Nothing in this section
161.21restricts, creates, expands, or otherwise affects or modifies the obligations of a telephone
161.22company under this chapter to offer landline telephone service that is not Voice over Internet
161.23Protocol service.

161.24ARTICLE 10
161.25ENERGY POLICY

161.26    Section 1. Minnesota Statutes 2016, section 3.8851, subdivision 1, is amended to read:
161.27    Subdivision 1. Establishment. (a) There is established a Legislative Energy Commission
161.28to study and to make recommendations for legislation concerning issues related to its duties
161.29under subdivision 3.
161.30    (b) The commission consists of:
162.1    (1) ten nine members of the house of representatives, five of whom are appointed by
162.2the speaker of the house, and four of whom must be from are appointed by the leader of the
162.3minority caucus, and including the chair of the committee with primary jurisdiction over
162.4energy policy; the chair or another member of each of the committees with primary
162.5jurisdiction over environmental policy, agricultural policy, and transportation policy; and
162.6    (2) ten nine members of the senate to be, five of whom are appointed by the Subcommittee
162.7on Committees, leader of the majority caucus and four of whom must be from are appointed
162.8by the leader of the minority caucus, and including the chair of the committee with primary
162.9jurisdiction over energy policy; and the chair or another member of each of the committees
162.10with primary jurisdiction over environmental policy, agricultural policy, and transportation
162.11policy.
162.12    (c) The commission may employ full-time and part-time staff, contract for consulting
162.13services, and may reimburse the expenses of persons requested to assist it in its duties. The
162.14director of the Legislative Coordinating Commission shall assist the commission in
162.15administrative matters. The commission shall elect cochairs, one member of the house of
162.16representatives and one member of the senate from among the committee and subcommittee
162.17chairs named to the commission. The commission members from the house of representatives
162.18shall elect the house of representatives cochair, and the commission members from the
162.19senate shall elect the senate cochair.
162.20EFFECTIVE DATE.This section is effective the day following final enactment.

162.21    Sec. 2. Minnesota Statutes 2016, section 16B.323, is amended to read:
162.2216B.323 SOLAR ENERGY IN STATE BUILDINGS.
162.23    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
162.24the meanings given.
162.25(b) "Made in Minnesota" means the manufacture in this state of:
162.26(1) components of a solar thermal system certified by the Solar Rating and Certification
162.27Corporation; or
162.28(2) solar photovoltaic modules that:
162.29(i) are manufactured at a manufacturing facility in Minnesota that is registered and
162.30authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory,
162.31CSA International, Intertek, or an equivalent independent testing agency;
163.1(ii) bear certification marks from Underwriters Laboratory, CSA International, Intertek,
163.2or an equivalent independent testing agency; and
163.3(iii) meet the requirements of section 116C.7791, subdivision 3, paragraph (a), clauses
163.4(1), (5), and (6).
163.5For the purposes of clause (2), "manufactured" has the meaning given in section
163.6116C.7791, subdivision 1 , paragraph (b), clauses (1) and (2).
163.7(c) (b) "Major renovation" means a substantial addition to an existing building, or a
163.8substantial change to the interior configuration or the energy system of an existing building.
163.9(d) (c) "Solar energy system" means solar photovoltaic modules devices alone or installed
163.10in conjunction with a solar thermal system.
163.11(e) "Solar Photovoltaic module (d) "Photovoltaic device" has the meaning given in
163.12section 116C.7791, subdivision 1, paragraph (e) 216C.06, subdivision 16.
163.13(f) (e) "Solar thermal system" has the meaning given "qualifying solar thermal project"
163.14in section 216B.2411, subdivision 2, paragraph (e).
163.15(g) (f) "State building" means a building whose construction or renovation is paid wholly
163.16or in part by the state from the bond proceeds fund.
163.17    Subd. 2. Solar energy system. (a) As provided in paragraphs (b) and (c), a project for
163.18the construction or major renovation of a state building, after the completion of a cost-benefit
163.19analysis, may include installation of "Made in Minnesota" solar energy systems of up to 40
163.20kilowatts capacity on, adjacent, or in proximity to the state building.
163.21(b) The capacity of a solar energy system must be less than 40 kilowatts to the extent
163.22necessary to match the electrical load of the building or to the extent necessary to keep the
163.23costs for the installation below the five percent maximum set by paragraph (c).
163.24(c) The cost of the solar energy system must not exceed five percent of the appropriations
163.25from the bond proceeds fund for the construction or renovation of the state building. Purchase
163.26and installation of a solar thermal system may account for no more than 25 percent of the
163.27cost of a solar energy system installation.
163.28(d) A project subject to this section is ineligible to receive a rebate for the installation
163.29of a solar energy system under section 116C.7791 or from any utility.
163.30EFFECTIVE DATE.This section is effective the day following final enactment.

164.1    Sec. 3. Minnesota Statutes 2016, section 116.03, is amended by adding a subdivision to
164.2read:
164.3    Subd. 7. Clean Air Act settlement money. "Clean Air Act settlement money" means
164.4money required to be paid to the state as a result of litigation or settlements of alleged
164.5violations of the federal Clean Air Act, United States Code, title 42, section 7401, et seq.,
164.6or rules adopted thereunder, by an automobile manufacturer. Clean Air Act settlement
164.7money may not be spent until it is specifically appropriated by law.

164.8    Sec. 4. Minnesota Statutes 2016, section 116C.779, subdivision 1, is amended to read:
164.9    Subdivision 1. Renewable development Clean energy advancement fund (C-LEAF)
164.10account. (a) The clean energy advancement fund account, or C-LEAF account, is established
164.11as a separate account in the special revenue fund in the state treasury. Appropriations and
164.12transfers to the account shall be credited to the account. Earnings, such as interest, dividends,
164.13and any other earnings arising from assets of the account, shall be credited to the account.
164.14Funds remaining in the account at the end of a fiscal year are not canceled to the general
164.15fund but remain in the account until expended.
164.16(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
164.17plant must transfer all funds in the renewable development account previously established
164.18under this subdivision and managed by the public utility to the C-LEAF account established
164.19in paragraph (a). Funds awarded to grantees in previous grant cycles that have not yet been
164.20expended and unencumbered funds required to be paid in calendar year 2017 under
164.21paragraphs (f) and (g), and sections 116C.7792 and 216C.41, are not subject to transfer
164.22under this paragraph.
164.23    (c) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
164.24each January 15 thereafter, the public utility that owns the Prairie Island nuclear generating
164.25plant must transfer to a renewable development the C-LEAF account $500,000 each year
164.26for each dry cask containing spent fuel that is located at the Prairie Island power plant for
164.27each year the plant is in operation, and $7,500,000 each year the plant is not in operation if
164.28ordered by the commission pursuant to paragraph (c) (h). The fund transfer must be made
164.29if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at Prairie
164.30Island for any part of a year.
164.31    (b) (d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
164.32each January 15 thereafter, the public utility that owns the Monticello nuclear generating
164.33plant must transfer to the renewable development C-LEAF account $350,000 each year for
164.34each dry cask containing spent fuel that is located at the Monticello nuclear power plant for
165.1each year the plant is in operation, and $5,250,000 each year the plant is not in operation if
165.2ordered by the commission pursuant to paragraph (c) (h). The fund transfer must be made
165.3if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at
165.4Monticello for any part of a year.
165.5    (e) Each year, the public utility shall withhold from the funds transferred to the C-LEAF
165.6account under paragraphs (c) and (d) the amount necessary to pay its obligations under
165.7paragraphs (f) and (g), and sections 116C.7792 and 216C.41, for that calendar year.
165.8    (f) If the commission approves a new or amended power purchase agreement, the
165.9termination of a power purchase agreement, or the purchase and closure of a facility under
165.10section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
165.11the public utility subject to this section shall enter into a contract with the city in which the
165.12poultry litter plant is located to provide grants to the city for the purposes of economic
165.13development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
165.14fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
165.15by the public utility from funds withheld from the transfer to the C-LEAF account, as
165.16provided in paragraphs (b) and (e).
165.17(g) If the commission approves a new or amended power purchase agreement, or the
165.18termination of a power purchase agreement under section 216B.2424, subdivision 9, with
165.19an entity owned or controlled, directly or indirectly, by two municipal utilities located north
165.20of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
165.21section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
165.22grant contract with such entity to provide $6,800,000 per year for five years, commencing
165.23on August 1, 2017, and on each June 1 thereafter through 2021, to assist the transition
165.24required by the new, amended, or terminated power purchase agreement. The grant shall
165.25be paid by the public utility from funds withheld from the transfer to the C-LEAF account
165.26as provided in paragraphs (b) and (e).
165.27    (c) (h) After discontinuation of operation of the Prairie Island nuclear plant or the
165.28Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
165.29discontinued facility, the commission shall require the public utility to pay $7,500,000 for
165.30the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
165.31facility for any year in which the commission finds, by the preponderance of the evidence,
165.32that the public utility did not make a good faith effort to remove the spent nuclear fuel stored
165.33at the facility to a permanent or interim storage site out of the state. This determination shall
165.34be made at least every two years.
166.1(d) (i) Funds in the account may be expended only for any of the following purposes:
166.2(1) to increase the market penetration within the state of renewable electric energy
166.3resources at reasonable costs;
166.4(2) to promote the start-up, expansion, and attraction of renewable electric energy projects
166.5and companies within the state;
166.6(3) to stimulate research and development within the state into of renewable electric
166.7energy technologies; and
166.8(4) to develop near-commercial and demonstration scale renewable electric projects or
166.9near-commercial and demonstration scale electric infrastructure delivery projects if those
166.10delivery projects enhance the delivery of renewable electric energy
166.11(2) to encourage grid modernization, including, but not limited to, projects that implement
166.12electricity storage, load control, and smart meter technology; and
166.13(3) to stimulate other innovative energy projects that reduce demand and increase system
166.14efficiency and flexibility.
166.15Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
166.16from the utility that owns a nuclear-powered electric generating plant in this state or the
166.17Prairie Island Indian community or its members.
166.18The utility that owns a nuclear generating plant is eligible to apply for renewable development
166.19account grants under this subdivision.
166.20(j) For the purposes of paragraph (i), the following terms have the meanings given:
166.21    (1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
166.22(c), clauses (1), (2), (4), and (5); and
166.23    (2) "grid modernization" means:
166.24(i) enhancing the reliability of the electrical grid;
166.25(ii) improving the security of the electrical grid against cyberthreats and physical threats;
166.26and
166.27(iii) increasing energy conservation opportunities by facilitating communication between
166.28the utility and its customers through the use of two-way meters, control technologies, energy
166.29storage and microgrids, technologies to enable demand response, and other innovative
166.30technologies.
167.1(e) Expenditures authorized by this subdivision from the account may be made only
167.2after approval by order of the Public Utilities Commission upon a petition by the public
167.3utility. The commission may approve proposed expenditures, may disapprove proposed
167.4expenditures that it finds to be not in compliance with this subdivision or otherwise not in
167.5the public interest, and may, if agreed to by the public utility, modify proposed expenditures.
167.6The commission may approve reasonable and necessary expenditures for administering the
167.7account in an amount not to exceed five percent of expenditures. Commission approval is
167.8not required for expenditures required under subdivisions 2 and 3, section 116C.7791, or
167.9other law.
167.10(f) The account shall be managed by the public utility but the public utility must consult
167.11about account expenditures with an (k) A C-LEAF advisory group that includes, among
167.12others, representatives of the public utility and its ratepayers, and includes at least one
167.13representative of the Prairie Island Indian community appointed by that community's tribal
167.14council, shall develop recommendations on account expenditures. The commission may
167.15require that other interests be represented on the advisory group. The advisory group must
167.16be consulted with respect to the general scope of expenditures in designing design a request
167.17for proposal and in evaluating evaluate projects submitted in response to a request for
167.18proposals. In addition to consulting with The advisory group, the public utility must utilize
167.19an independent third-party expert to evaluate proposals submitted in response to a request
167.20for proposal, including all proposals made by the public utility. A request for proposal for
167.21research and development under paragraph (d) (i), clause (3) (1), may be limited to or include
167.22a request to higher education institutions located in Minnesota for multiple projects authorized
167.23under paragraph (d) (i), clause (3) (1). The request for multiple projects may include a
167.24provision that exempts the projects from the third-party expert review and instead provides
167.25for project evaluation and selection by a merit peer review grant system. The utility should
167.26attempt to reach agreement with the advisory group after consulting with it but the public
167.27utility has full and sole authority to determine which expenditures expenditure
167.28recommendations shall be submitted by the advisory group to the commission for commission
167.29approval legislature as provided in paragraph (q). In the process of determining request for
167.30proposal scope and subject and in evaluating responses to request for proposals, the public
167.31utility advisory group must strongly consider, where reasonable, potential benefit to
167.32Minnesota citizens and businesses and the utility's ratepayers.
167.33(g) Funds in (l) The C-LEAF advisory group shall present its recommended appropriations
167.34from the account to the senate and house of representatives committees with jurisdiction
167.35over energy policy and finance annually by February 15. Expenditures from the account
168.1may not must be directly appropriated by the legislature by a law enacted after January 1,
168.22012, and unless appropriated by a law enacted prior to that date may be expended only
168.3pursuant to an order of the commission according to this subdivision. In enacting
168.4appropriations from the account, the legislature:
168.5(1) may approve or disapprove, but may not modify, the amount of an appropriation for
168.6a project recommended by the C-LEAF advisory group; and
168.7(2) may not appropriate money for a project the C-LEAF advisory group has not
168.8recommended funding.
168.9(h) (m) A request for proposal for renewable energy generation projects must, when
168.10feasible and reasonable, give preference to projects that are most cost-effective for a particular
168.11energy source.
168.12(i) (n) The public utility advisory group must annually, by February 15, report to the
168.13chairs and ranking minority members of the legislative committees with jurisdiction over
168.14energy policy on projects funded by the account for the prior year and all previous years.
168.15The report must, to the extent possible and reasonable, itemize the actual and projected
168.16financial benefit to the public utility's ratepayers of each project.
168.17(o) By February 1, 2018, and each February 1 thereafter, the commissioner of
168.18management and budget shall submit a written report regarding the availability of funds in
168.19and obligations of the account to the chairs and ranking minority members of the senate
168.20and house committees with jurisdiction over energy policy and finance, the public utility,
168.21and the advisory group.
168.22(j) (p) A project receiving funds from the account must produce a written final report
168.23that includes sufficient detail for technical readers and a clearly written summary for
168.24nontechnical readers. The report must include an evaluation of the project's financial,
168.25environmental, and other benefits to the state and the public utility's ratepayers.
168.26(k) (q) Final reports, any mid-project status reports, and renewable development account
168.27financial reports must be posted online on a public Web site designated by the commission
168.28commissioner of commerce.
168.29(l) (r) All final reports must acknowledge that the project was made possible in whole
168.30or part by the Minnesota renewable development fund C-LEAF account, noting that the
168.31fund account is financed by the public utility's ratepayers.
168.32(s) Of the amount in the C-LEAF account, priority must be given to making the payments
168.33required under section 216C.417.
169.1EFFECTIVE DATE.This section is effective the day following final enactment.

169.2    Sec. 5. Minnesota Statutes 2016, section 116C.779, is amended by adding a subdivision
169.3to read:
169.4    Subd. 1a. Payment termination. (a) The commissioner shall track the cumulative
169.5transfers made to the clean energy advancement fund account and its predecessor, the
169.6renewable development account, each year since 1999 for each dry cask containing spent
169.7fuel that is stored at an independent spent-fuel storage facility at Prairie Island or Monticello.
169.8During the time when state law required the public utility to transfer a specific amount of
169.9funds to the account for all the casks stored, the per-cask allocation shall be calculated by
169.10dividing the total amount transferred by the number of casks stored that year.
169.11(b) When the commissioner determines that the cumulative transfers calculated under
169.12paragraph (a) for a specific cask reach $10,000,000, the commissioner shall notify the public
169.13utility that no additional transfers to the account for that cask shall be made.
169.14(c) This subdivision does not affect any provisions of subdivision 1, paragraph (c) or
169.15(d), with respect to transfers to the account made after a plant has ceased operation.
169.16EFFECTIVE DATE.This section is effective the day following final enactment.

169.17    Sec. 6. Minnesota Statutes 2016, section 116C.7792, is amended to read:
169.18116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
169.19The utility subject to section 116C.779 shall operate a program to provide solar energy
169.20production incentives for solar energy systems of no more than a total nameplate capacity
169.21of 20 kilowatts direct current. The program shall be operated for five consecutive calendar
169.22years commencing in 2014. $5,000,000 shall be allocated for each of the five years from
169.23the renewable development C-LEAF account established in section 116C.779 to a separate
169.24account for the purpose of the solar production incentive program. The solar system must
169.25be sized to less than 120 percent of the customer's on-site annual energy consumption. The
169.26production incentive must be paid for ten years commencing with the commissioning of
169.27the system. The utility must file a plan to operate the program with the commissioner of
169.28commerce. The utility may not operate the program until it is approved by the commissioner.
169.29EFFECTIVE DATE.This section is effective the day following final enactment.

169.30    Sec. 7. Minnesota Statutes 2016, section 216B.03, is amended to read:
169.31216B.03 REASONABLE RATE.
170.1Every rate made, demanded, or received by any public utility, or by any two or more
170.2public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably
170.3preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable,
170.4and consistent in application to a class of consumers. To the maximum reasonable extent,
170.5the commission shall set rates to encourage economic growth, job retention, energy
170.6conservation and, renewable energy use, and to further the goals of sections 216B.164,
170.7216B.1696, 216B.241, and 216C.05. Any doubt as to reasonableness should be resolved in
170.8favor of the consumer. For rate-making purposes a public utility may treat two or more
170.9municipalities served by it as a single class wherever the populations are comparable in size
170.10or the conditions of service are similar.
170.11EFFECTIVE DATE.This section is effective the day following final enactment and
170.12applies immediately to all proceedings pending before the commission.

170.13    Sec. 8. Minnesota Statutes 2016, section 216B.16, subdivision 1a, is amended to read:
170.14    Subd. 1a. Settlement. (a) When a public utility submits a general rate filing, the Office
170.15of Administrative Hearings, before conducting a contested case hearing, shall convene a
170.16settlement conference including all of the parties for the purpose of encouraging settlement
170.17of any or all of the issues in the contested case. If a stipulated settlement is not reached
170.18before the contested case hearing, the Office of Administrative Hearings may reconvene
170.19the settlement conference during or after completion of the contested case hearing at its
170.20discretion or a party's request. The Office of Administrative Hearings or the commission
170.21may, upon the request of any party and the public utility, extend the procedural schedule
170.22of the contested case in order to permit the parties to engage in settlement discussions. An
170.23extension must be for a definite period of time not to exceed 60 days.
170.24(b) If the applicant and all intervening parties agree to a stipulated settlement of the case
170.25or parts of the case, the settlement must be submitted to the commission. The commission
170.26shall accept or reject the settlement in its entirety and, at any time until its final order is
170.27issued in the case, may require the Office of Administrative Hearings to conduct a contested
170.28case hearing. The commission may accept the settlement on finding that to do so the
170.29settlement is supported by substantial evidence and approving the settlement is in the public
170.30interest and is supported by substantial evidence. The analysis must consider the impact of
170.31the proposed settlement on the economy, job growth, and job retention. If the commission
170.32does not accept the settlement, it may issue an order modifying the settlement subject to
170.33the approval of the parties. Each party shall have ten days in which to reject the proposed
170.34modification. If no party rejects the proposed modification, the commission's order becomes
171.1final. If the commission rejects the settlement, or a party rejects the commission's proposed
171.2modification, a contested case hearing must be completed.
171.3EFFECTIVE DATE.This section is effective the day following final enactment and
171.4applies immediately to all proceedings pending before the commission.

171.5    Sec. 9. Minnesota Statutes 2016, section 216B.16, subdivision 6, is amended to read:
171.6    Subd. 6. Factors considered, generally. The commission, in the exercise of its powers
171.7under this chapter to determine just and reasonable rates for public utilities, shall give due
171.8consideration to the public need for adequate, efficient, and reasonable service, as well as
171.9the need for competitive electric rates, job preservation, and economic growth, and to the
171.10need of the public utility for revenue sufficient to enable it to meet the cost of furnishing
171.11the service, including adequate provision for depreciation of its utility property used and
171.12useful in rendering service to the public, and to earn a fair and reasonable return upon the
171.13investment in such property. In determining the rate base upon which the utility is to be
171.14allowed to earn a fair rate of return, the commission shall give due consideration to evidence
171.15of the cost of the property when first devoted to public use, to prudent acquisition cost to
171.16the public utility less appropriate depreciation on each, to construction work in progress, to
171.17offsets in the nature of capital provided by sources other than the investors, and to other
171.18expenses of a capital nature. For purposes of determining rate base, the commission shall
171.19consider the original cost of utility property included in the base and shall make no allowance
171.20for its estimated current replacement value. If the commission orders a generating facility
171.21to terminate its operations before the end of the facility's physical life in order to comply
171.22with a specific state or federal energy statute or policy, the commission may allow the public
171.23utility to recover any positive net book value of the facility as determined by the commission.
171.24EFFECTIVE DATE.This section is effective the day following final enactment and
171.25applies immediately to all proceedings pending before the commission.

171.26    Sec. 10. Minnesota Statutes 2016, section 216B.164, subdivision 5, is amended to read:
171.27    Subd. 5. Dispute; resolution. In the event of disputes between an electric a public utility
171.28and a qualifying facility, either party may request a determination of the issue by the
171.29commission. In any such determination, the burden of proof shall be on the public utility.
171.30The commission in its order resolving each such dispute shall require payments to the
171.31prevailing party of the prevailing party's costs, disbursements, and reasonable attorneys'
171.32fees, except that the qualifying facility will be required to pay the costs, disbursements, and
172.1attorneys' fees of the public utility only if the commission finds that the claims of the
172.2qualifying facility in the dispute have been made in bad faith, or are a sham, or are frivolous.
172.3EFFECTIVE DATE.This section is effective the day following final enactment.

172.4    Sec. 11. Minnesota Statutes 2016, section 216B.164, subdivision 9, is amended to read:
172.5    Subd. 9. Municipal electric utility. For purposes of this section only, except subdivision
172.65, and with respect to municipal electric utilities only, the term "commission" means the
172.7governing body of each municipal electric utility that adopts and has in effect rules
172.8implementing this section which are consistent with the rules adopted by the Minnesota
172.9Public Utilities Commission under subdivision 6. As used in this subdivision, the governing
172.10body of a municipal electric utility means the city council of that municipality; except that,
172.11if another board, commission, or body is empowered by law or resolution of the city council
172.12or by its charter to establish and regulate rates and days for the distribution of electric energy
172.13within the service area of the city, that board, commission, or body shall be considered the
172.14governing body of the municipal electric utility.
172.15EFFECTIVE DATE.This section is effective the day following final enactment.

172.16    Sec. 12. Minnesota Statutes 2016, section 216B.164, is amended by adding a subdivision
172.17to read:
172.18    Subd. 11. Cooperative electric association. (a) For purposes of this section only, the
172.19term "commission" means the board of directors of a cooperative association that (1) elects,
172.20by resolution, to assume the authority delegated to the Public Utilities Commission over
172.21cooperative electric associations under this section, and (2) adopts and has in effect rules
172.22implementing this section. The rules must provide for a process to resolve disputes that
172.23arise under this section, and must include a provision that a request by either party for
172.24mediation of the dispute by an independent third party must be implemented. A cooperative
172.25electric association that has adopted a resolution and rules under this subdivision is exempt
172.26from regulation by the Public Utilities Commission under this section.
172.27(b) Except as provided in paragraph (c), any proceedings concerning the activities of a
172.28cooperative electric association under this section that are pending at the Public Utilities
172.29Commission on the effective date of this section are terminated on that date.
172.30(c) The Public Utilities Commission shall limit its investigation in Docket No. 16-512
172.31determining whether the methodology used by cooperative associations to establish a fee
172.32under section 216B.164, subdivision 3, paragraph (a), complies with state law. The
173.1commission may complete the investigation no later than December 31, 2017. A methodology
173.2determined by the commission to comply with state law may not be challenged in a dispute
173.3under section 216B.164. If the commission determines that a methodology does not comply
173.4with state law, it shall clearly state the changes necessary to bring the methodology into
173.5compliance, and the cooperative electric association shall proceed under paragraph (a).
173.6EFFECTIVE DATE.This section is effective the day following final enactment.

173.7    Sec. 13. Minnesota Statutes 2016, section 216B.1691, subdivision 2f, is amended to read:
173.8    Subd. 2f. Solar energy standard. (a) In addition to the requirements of subdivisions 2a
173.9and 2b, each public utility shall generate or procure sufficient electricity generated by solar
173.10energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at
173.11least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is
173.12generated by solar energy.
173.13(b) For a public utility with more than 200,000 retail electric customers, at least ten
173.14percent of the 1.5 percent goal must be met by solar energy generated by or procured from
173.15solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less.
173.16(c) A public utility with between 50,000 and 200,000 retail electric customers:
173.17(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by
173.18or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
173.19less; and
173.20(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
173.21of 40 kilowatts or less to a community solar garden program operated by the public utility
173.22that has been approved by the commission.
173.23(b) (d) The solar energy standard established in this subdivision is subject to all the
173.24provisions of this section governing a utility's standard obligation under subdivision 2a.
173.25(c) (e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the
173.26retail electric sales in Minnesota be generated by solar energy.
173.27(d) (f) For the purposes of calculating the total retail electric sales of a public utility
173.28under this subdivision, there shall be excluded retail electric sales to customers that are:
173.29(1) an iron mining extraction and processing facility, including a scram mining facility
173.30as defined in Minnesota Rules, part 6130.0100, subpart 16; or
173.31(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
173.32manufacturer.
174.1Those customers may not have included in the rates charged to them by the public utility
174.2any costs of satisfying the solar standard specified by this subdivision.
174.3(e) (g) A public utility may not use energy used to satisfy the solar energy standard under
174.4this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
174.5not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
174.6solar standard under this subdivision.
174.7(f) (h) Notwithstanding any law to the contrary, a solar renewable energy credit associated
174.8with a solar photovoltaic device installed and generating electricity in Minnesota after
174.9August 1, 2013, but before 2020 may be used to meet the solar energy standard established
174.10under this subdivision.
174.11(g) (i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall
174.12file a report with the commission reporting its progress in achieving the solar energy standard
174.13established under this subdivision.
174.14EFFECTIVE DATE.This section is effective July 1, 2017.

174.15    Sec. 14. Minnesota Statutes 2016, section 216B.1694, subdivision 3, is amended to read:
174.16    Subd. 3. Staging and permitting. (a) A natural gas-fired plant that is located on one
174.17site designated as an innovative energy project site under subdivision 1, clause (3), is
174.18accorded the regulatory incentives granted to an innovative energy project under subdivision
174.192, clauses (1) to (3), and may exercise the authorities therein.
174.20(b) Following issuance of a final state or federal environmental impact statement for an
174.21innovative energy project that was a subject of contested case proceedings before an
174.22administrative law judge:
174.23(1) site and route permits and water appropriation approvals for an innovative energy
174.24project must also be deemed valid for a plant meeting the requirements of paragraph (a)
174.25and shall remain valid until the earlier later of (i) four years from the date the final required
174.26state or federal preconstruction permit is issued or (ii) June 30, 2019 2025; and
174.27(2) no air, water, or other permit issued by a state agency that is necessary for constructing
174.28an innovative energy project may be the subject of contested case hearings, notwithstanding
174.29Minnesota Rules, parts 7000.1750 to 7000.2200.

175.1    Sec. 15. [216B.1697] STATE-MANDATED ENERGY PURCHASES; PUBLIC
175.2INFORMATION.
175.3A utility serving Minnesota customers at retail must, within 30 days of entering into an
175.4agreement to purchase energy that is used to meet a requirement under state law to purchase
175.5or generate certain amounts and types of energy, including, but not limited to, requirements
175.6in sections 216B.1691, 216B.2423, and 216B.2424, post the following information contained
175.7in the agreement on the utility's Web site:
175.8(1) the wholesale price per unit of energy over the term of the agreement, including any
175.9escalator clauses or inflation factors; and
175.10(2) the amount of energy to be purchased each year by the utility over the term of the
175.11agreement.
175.12EFFECTIVE DATE.This section is effective immediately and applies to all power
175.13purchase agreements entered into on or after July 1, 2017.

175.14    Sec. 16. Minnesota Statutes 2016, section 216B.241, subdivision 1b, is amended to read:
175.15    Subd. 1b. Conservation improvement by cooperative association or municipality.
175.16    (a) This subdivision applies to:
175.17    (1) a cooperative electric association that provides retail service to its more than 5,000
175.18members;
175.19    (2) a municipality that provides electric service to more than 1,000 retail customers; and
175.20    (3) a municipality with more than 1,000,000,000 cubic feet in annual throughput sales
175.21to natural gas to retail customers.
175.22    (b) Each cooperative electric association and municipality subject to this subdivision
175.23shall spend and invest for energy conservation improvements under this subdivision the
175.24following amounts:
175.25    (1) for a municipality, 0.5 percent of its gross operating revenues from the sale of gas
175.26and 1.5 percent of its gross operating revenues from the sale of electricity, excluding gross
175.27operating revenues from electric and gas service provided in the state to large electric
175.28customer facilities; and
175.29    (2) for a cooperative electric association, 1.5 percent of its gross operating revenues
175.30from service provided in the state, excluding gross operating revenues from service provided
175.31in the state to large electric customer facilities indirectly through a distribution cooperative
175.32electric association.
176.1    (c) Each municipality and cooperative electric association subject to this subdivision
176.2shall identify and implement energy conservation improvement spending and investments
176.3that are appropriate for the municipality or association, except that a municipality or
176.4association may not spend or invest for energy conservation improvements that directly
176.5benefit a large energy facility or a large electric customer facility for which the commissioner
176.6has issued an exemption under subdivision 1a, paragraph (b).
176.7    (d) Each municipality and cooperative electric association subject to this subdivision
176.8may spend and invest annually up to ten percent of the total amount required to be spent
176.9and invested on energy conservation improvements under this subdivision on research and
176.10development projects that meet the definition of energy conservation improvement in
176.11subdivision 1 and that are funded directly by the municipality or cooperative electric
176.12association.
176.13    (e) Load-management activities may be used to meet 50 percent of the conservation
176.14investment and spending requirements of this subdivision.
176.15    (f) A generation and transmission cooperative electric association that provides energy
176.16services to cooperative electric associations that provide electric service at retail to consumers
176.17may invest in energy conservation improvements on behalf of the associations it serves and
176.18may fulfill the conservation, spending, reporting, and energy-savings goals on an aggregate
176.19basis. A municipal power agency or other not-for-profit entity that provides energy service
176.20to municipal utilities that provide electric service at retail may invest in energy conservation
176.21improvements on behalf of the municipal utilities it serves and may fulfill the conservation,
176.22spending, reporting, and energy-savings goals on an aggregate basis, under an agreement
176.23between the municipal power agency or not-for-profit entity and each municipal utility for
176.24funding the investments.
176.25    (g) Each municipality or cooperative shall file energy conservation improvement plans
176.26by June 1 on a schedule determined by order of the commissioner, but at least every three
176.27years. Plans received by June 1 must be approved or approved as modified by the
176.28commissioner by December 1 of the same year. The municipality or cooperative shall
176.29provide an evaluation to the commissioner detailing its energy conservation improvement
176.30spending and investments for the previous period. The evaluation must briefly describe
176.31each conservation program and must specify the energy savings or increased efficiency in
176.32the use of energy within the service territory of the utility or association that is the result of
176.33the spending and investments. The evaluation must analyze the cost-effectiveness of the
176.34utility's or association's conservation programs, using a list of baseline energy and capacity
176.35savings assumptions developed in consultation with the department. The commissioner
177.1shall review each evaluation and make recommendations, where appropriate, to the
177.2municipality or association to increase the effectiveness of conservation improvement
177.3activities.
177.4    (h) MS 2010 [Expired, 1Sp2003 c 11 art 3 s 4; 2007 c 136 art 2 s 5]
177.5    (i) (h) The commissioner shall consider and may require a utility, association, or other
177.6entity providing energy efficiency and conservation services under this section to undertake
177.7a program suggested by an outside source, including a political subdivision, nonprofit
177.8corporation, or community organization.
177.9EFFECTIVE DATE.This section is effective the day following final enactment.

177.10    Sec. 17. Minnesota Statutes 2016, section 216B.241, subdivision 1c, is amended to read:
177.11    Subd. 1c. Energy-saving goals. (a) The commissioner shall establish energy-saving
177.12goals for energy conservation improvement expenditures and shall evaluate an energy
177.13conservation improvement program on how well it meets the goals set.
177.14    (b) Each individual utility and association shall have an annual energy-savings goal
177.15equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
177.16commissioner under paragraph (d). The savings goals must be calculated based on the most
177.17recent three-year weather-normalized average. A utility or association may elect to carry
177.18forward energy savings in excess of 1.5 percent for a year to the succeeding three calendar
177.19years, except that savings from electric utility infrastructure projects allowed under paragraph
177.20(d) may be carried forward for five years. A particular energy savings can be used only for
177.21one year's goal.
177.22    (c) The commissioner must adopt a filing schedule that is designed to have all utilities
177.23and associations operating under an energy-savings plan by calendar year 2010.
177.24    (d) In its energy conservation improvement plan filing, a utility or association may
177.25request the commissioner to adjust its annual energy-savings percentage goal based on its
177.26historical conservation investment experience, customer class makeup, load growth, a
177.27conservation potential study, or other factors the commissioner determines warrants an
177.28adjustment. The commissioner may not approve a plan of a public utility that provides for
177.29an annual energy-savings goal of less than one percent of gross annual retail energy sales
177.30from energy conservation improvements.
177.31    A utility or association may include in its energy conservation plan energy savings from
177.32electric utility infrastructure projects approved by the commission under section 216B.1636
177.33or waste heat recovery converted into electricity projects that may count as energy savings
178.1in addition to a minimum energy-savings goal of at least one percent for energy conservation
178.2improvements. Energy savings from electric utility infrastructure projects, as defined in
178.3section 216B.1636, may be included in the energy conservation plan of a municipal utility
178.4or cooperative electric association. Electric utility infrastructure projects must result in
178.5increased energy efficiency greater than that which would have occurred through normal
178.6maintenance activity.
178.7    (e) An energy-savings goal is not satisfied by attaining the revenue expenditure
178.8requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
178.9energy-savings goal established in this subdivision.
178.10    (f) An association or utility is not required to make energy conservation investments to
178.11attain the energy-savings goals of this subdivision that are not cost-effective even if the
178.12investment is necessary to attain the energy-savings goals. For the purpose of this paragraph,
178.13in determining cost-effectiveness, the commissioner shall consider the costs and benefits
178.14to ratepayers, the utility, participants, and society. In addition, the commissioner shall
178.15consider the rate at which an association or municipal utility is increasing its energy savings
178.16and its expenditures on energy conservation.
178.17    (g) On an annual basis, the commissioner shall produce and make publicly available a
178.18report on the annual energy savings and estimated carbon dioxide reductions achieved by
178.19the energy conservation improvement programs for the two most recent years for which
178.20data is available. The commissioner shall report on program performance both in the
178.21aggregate and for each entity filing an energy conservation improvement plan for approval
178.22or review by the commissioner.
178.23    (h) By January 15, 2010, the commissioner shall report to the legislature whether the
178.24spending requirements under subdivisions 1a and 1b are necessary to achieve the
178.25energy-savings goals established in this subdivision.
178.26(i) This subdivision does not apply to:
178.27(1) a cooperative electric association with fewer than 5,000 members;
178.28(2) a municipal utility with fewer than 1,000 retail electric customers; or
178.29(3) a municipal utility with less than 1,000,000,000 cubic feet in annual throughput sales
178.30to retail natural gas customers.
178.31EFFECTIVE DATE.This section is effective the day following final enactment.

179.1    Sec. 18. Minnesota Statutes 2016, section 216B.241, subdivision 2, is amended to read:
179.2    Subd. 2. Programs. (a) The commissioner may require public utilities to make
179.3investments and expenditures in energy conservation improvements, explicitly setting forth
179.4the interest rates, prices, and terms under which the improvements must be offered to the
179.5customers. The required programs must cover no more than a three-year period. Public
179.6utilities shall file conservation improvement plans by June 1, on a schedule determined by
179.7order of the commissioner, but at least every three years. Plans received by a public utility
179.8by June 1 must be approved or approved as modified by the commissioner by December 1
179.9of that same year. The commissioner shall evaluate the program on the basis of
179.10cost-effectiveness and the reliability of technologies employed. The commissioner's order
179.11must provide to the extent practicable for a free choice, by consumers participating in the
179.12program, of the device, method, material, or project constituting the energy conservation
179.13improvement and for a free choice of the seller, installer, or contractor of the energy
179.14conservation improvement, provided that the device, method, material, or project seller,
179.15installer, or contractor is duly licensed, certified, approved, or qualified, including under
179.16the residential conservation services program, where applicable.
179.17    (b) The commissioner may require a utility subject to subdivision 1c to make an energy
179.18conservation improvement investment or expenditure whenever the commissioner finds
179.19that the improvement will result in energy savings at a total cost to the utility less than the
179.20cost to the utility to produce or purchase an equivalent amount of new supply of energy.
179.21The commissioner shall nevertheless ensure that every public utility operate one or more
179.22programs under periodic review by the department.
179.23    (c) Each public utility subject to subdivision 1a may spend and invest annually up to ten
179.24percent of the total amount required to be spent and invested on energy conservation
179.25improvements under this section by the utility on research and development projects that
179.26meet the definition of energy conservation improvement in subdivision 1 and that are funded
179.27directly by the public utility.
179.28    (d) A public utility may not spend for or invest in energy conservation improvements
179.29that directly benefit a large energy facility or a large electric customer facility for which the
179.30commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b). The
179.31commissioner shall consider and may require a utility to undertake a program suggested by
179.32an outside source, including a political subdivision, a nonprofit corporation, or community
179.33organization.
180.1    (e) A utility, a political subdivision, or a nonprofit or community organization that has
180.2suggested a program, the attorney general acting on behalf of consumers and small business
180.3interests, or a utility customer that has suggested a program and is not represented by the
180.4attorney general under section 8.33 may petition the commission to modify or revoke a
180.5department decision under this section, and the commission may do so if it determines that
180.6the program is not cost-effective, does not adequately address the residential conservation
180.7improvement needs of low-income persons, has a long-range negative effect on one or more
180.8classes of customers, or is otherwise not in the public interest. The commission shall reject
180.9a petition that, on its face, fails to make a reasonable argument that a program is not in the
180.10public interest.
180.11    (f) The commissioner may order a public utility to include, with the filing of the utility's
180.12annual status report, the results of an independent audit of the utility's conservation
180.13improvement programs and expenditures performed by the department or an auditor with
180.14experience in the provision of energy conservation and energy efficiency services approved
180.15by the commissioner and chosen by the utility. The audit must specify the energy savings
180.16or increased efficiency in the use of energy within the service territory of the utility that is
180.17the result of the spending and investments. The audit must evaluate the cost-effectiveness
180.18of the utility's conservation programs.
180.19(g) A gas utility may not spend for or invest in energy conservation improvements that
180.20directly benefit a large customer facility or commercial gas customer facility for which the
180.21commissioner has issued an exemption pursuant to subdivision 1a, paragraph (b), (c), or
180.22(e). The commissioner shall consider and may require a utility to undertake a program
180.23suggested by an outside source, including a political subdivision, a nonprofit corporation,
180.24or a community organization.
180.25EFFECTIVE DATE.This section is effective the day following final enactment.

180.26    Sec. 19. Minnesota Statutes 2016, section 216B.241, subdivision 5, is amended to read:
180.27    Subd. 5. Efficient lighting program. (a) Each public utility, cooperative electric
180.28association, and municipal utility that provides electric service to retail customers and is
180.29subject to subdivision 1c shall include as part of its conservation improvement activities a
180.30program to strongly encourage the use of fluorescent and high-intensity discharge lamps.
180.31The program must include at least a public information campaign to encourage use of the
180.32lamps and proper management of spent lamps by all customer classifications.
180.33    (b) A public utility that provides electric service at retail to 200,000 or more customers
180.34shall establish, either directly or through contracts with other persons, including lamp
181.1manufacturers, distributors, wholesalers, and retailers and local government units, a system
181.2to collect for delivery to a reclamation or recycling facility spent fluorescent and
181.3high-intensity discharge lamps from households and from small businesses as defined in
181.4section 645.445 that generate an average of fewer than ten spent lamps per year.
181.5    (c) A collection system must include establishing reasonably convenient locations for
181.6collecting spent lamps from households and financial incentives sufficient to encourage
181.7spent lamp generators to take the lamps to the collection locations. Financial incentives may
181.8include coupons for purchase of new fluorescent or high-intensity discharge lamps, a cash
181.9back system, or any other financial incentive or group of incentives designed to collect the
181.10maximum number of spent lamps from households and small businesses that is reasonably
181.11feasible.
181.12    (d) A public utility that provides electric service at retail to fewer than 200,000 customers,
181.13a cooperative electric association, or a municipal utility that provides electric service at
181.14retail to customers may establish a collection system under paragraphs (b) and (c) as part
181.15of conservation improvement activities required under this section.
181.16    (e) The commissioner of the Pollution Control Agency may not, unless clearly required
181.17by federal law, require a public utility, cooperative electric association, or municipality that
181.18establishes a household fluorescent and high-intensity discharge lamp collection system
181.19under this section to manage the lamps as hazardous waste as long as the lamps are managed
181.20to avoid breakage and are delivered to a recycling or reclamation facility that removes
181.21mercury and other toxic materials contained in the lamps prior to placement of the lamps
181.22in solid waste.
181.23    (f) If a public utility, cooperative electric association, or municipal utility contracts with
181.24a local government unit to provide a collection system under this subdivision, the contract
181.25must provide for payment to the local government unit of all the unit's incremental costs of
181.26collecting and managing spent lamps.
181.27    (g) All the costs incurred by a public utility, cooperative electric association, or municipal
181.28utility for promotion and collection of fluorescent and high-intensity discharge lamps under
181.29this subdivision are conservation improvement spending under this section.
181.30EFFECTIVE DATE.This section is effective the day following final enactment.

181.31    Sec. 20. Minnesota Statutes 2016, section 216B.241, subdivision 5d, is amended to read:
181.32    Subd. 5d. On-bill repayment programs. (a) For the purposes of this subdivision:
182.1(1) "utility" means a public utility, municipal utility, or cooperative electric association
182.2subject to subdivision 1c that provides electric or natural gas service to retail customers;
182.3and
182.4(2) "on-bill repayment program" means a program in which a utility collects on a
182.5customer's bill repayment of a loan to the customer by an eligible lender to finance the
182.6customer's investment in eligible energy conservation or renewable energy projects, and
182.7remits loan repayments to the lender.
182.8(b) A utility may include as part of its conservation improvement plan an on-bill
182.9repayment program to enable a customer to finance eligible projects with installment loans
182.10originated by an eligible lender. An eligible project is one that is either an energy conservation
182.11improvement, or a project installed on the customer's site that uses an eligible renewable
182.12energy source as that term is defined in section 216B.2411, subdivision 2, paragraph (b),
182.13but does not include mixed municipal solid waste or refuse-derived fuel from mixed
182.14municipal solid waste. An eligible renewable energy source also includes solar thermal
182.15technology that collects the sun's radiant energy and uses that energy to heat or cool air or
182.16water, and meets the requirements of section 216C.25. To be an eligible lender, a lender
182.17must:
182.18(1) have a federal or state charter and be eligible for federal deposit insurance;
182.19(2) be a government entity, including an entity established under chapter 469, that has
182.20authority to provide financial assistance for energy efficiency and renewable energy projects;
182.21(3) be a joint venture by utilities established under section 452.25; or
182.22(4) be licensed, certified, or otherwise have its lending activities overseen by a state or
182.23federal government agency.
182.24The commissioner must allow a utility broad discretion in designing and implementing an
182.25on-bill repayment program, provided that the program complies with this subdivision.
182.26(c) A utility may establish an on-bill repayment program for all customer classes or for
182.27a specific customer class.
182.28(d) A public utility that implements an on-bill repayment program under this subdivision
182.29must enter into a contract with one or more eligible lenders that complies with the
182.30requirements of this subdivision and contains provisions addressing capital commitments,
182.31loan origination, transfer of loans to the public utility for on-bill repayment, and acceptance
182.32of loans returned due to delinquency or default.
183.1(e) A public utility's contract with a lender must require the lender to comply with all
183.2applicable federal and state laws, rules, and regulations related to lending practices and
183.3consumer protection; to conform to reasonable and prudent lending standards; and to provide
183.4businesses that sell, maintain, and install eligible projects the ability to participate in an
183.5on-bill repayment program under this subdivision on a nondiscriminatory basis.
183.6(f) A public utility's contract with a lender may provide:
183.7(1) for the public utility to purchase loans from the lender with a condition that the lender
183.8must purchase back loans in delinquency or default; or
183.9(2) for the lender to retain ownership of loans with the public utility servicing the loans
183.10through on-bill repayment as long as payments are current.
183.11The risk of default must remain with the lender. The lender shall not have recourse against
183.12the public utility except in the event of negligence or breach of contract by the utility.
183.13(g) If a public utility customer makes a partial payment on a utility bill that includes a
183.14loan installment, the partial payment must be credited first to the amount owed for utility
183.15service, including taxes and fees. A public utility may not suspend or terminate a customer's
183.16utility service for delinquency or default on a loan that is being serviced through the public
183.17utility's on-bill repayment program.
183.18(h) An outstanding balance on a loan being repaid under this subdivision is a financial
183.19obligation only of the customer who is signatory to the loan, and not to any subsequent
183.20customer occupying the property associated with the loan. If the public utility purchases
183.21loans from the lender as authorized under paragraph (f), clause (1), the public utility must
183.22return to the lender a loan not repaid when a customer borrower no longer occupies the
183.23property.
183.24(i) Costs incurred by a public utility under this subdivision are recoverable as provided
183.25in section 216B.16, subdivision 6b, paragraph (c), including reasonable incremental costs
183.26for billing system modifications necessary to implement and operate an on-bill repayment
183.27program and for ongoing costs to operate the program. Costs in a plan approved by the
183.28commissioner may be counted toward a utility's conservation spending requirements under
183.29subdivisions 1a and 1b. Energy savings from energy conservation improvements resulting
183.30from this section may be counted toward satisfying a utility's energy-savings goals under
183.31subdivision 1c.
184.1(j) This subdivision does not require a utility to terminate or modify an existing financing
184.2program and does not prohibit a utility from establishing an on-bill financing program in
184.3which the utility provides the financing capital.
184.4(k) A municipal utility or cooperative electric association that implements an on-bill
184.5repayment program shall design the program to address the issues identified in paragraphs
184.6(d) through (h) as determined by the governing board of the utility or association.
184.7EFFECTIVE DATE.This section is effective the day following final enactment.

184.8    Sec. 21. Minnesota Statutes 2016, section 216B.241, subdivision 7, is amended to read:
184.9    Subd. 7. Low-income programs. (a) The commissioner shall ensure that each utility
184.10and association subject to subdivision 1c provides low-income programs. When approving
184.11spending and energy-savings goals for low-income programs, the commissioner shall
184.12consider historic spending and participation levels, energy savings for low-income programs,
184.13and the number of low-income persons residing in the utility's service territory. A municipal
184.14utility that furnishes gas service must spend at least 0.2 percent, and a public utility furnishing
184.15gas service must spend at least 0.4 percent, of its most recent three-year average gross
184.16operating revenue from residential customers in the state on low-income programs. A utility
184.17or association that furnishes electric service must spend at least 0.1 percent of its gross
184.18operating revenue from residential customers in the state on low-income programs. For a
184.19generation and transmission cooperative association, this requirement shall apply to each
184.20association's members' aggregate gross operating revenue from sale of electricity to residential
184.21customers in the state. Beginning in 2010, a utility or association that furnishes electric
184.22service must spend 0.2 percent of its gross operating revenue from residential customers in
184.23the state on low-income programs.
184.24    (b) To meet the requirements of paragraph (a), a utility or association may contribute
184.25money to the energy and conservation account. An energy conservation improvement plan
184.26must state the amount, if any, of low-income energy conservation improvement funds the
184.27utility or association will contribute to the energy and conservation account. Contributions
184.28must be remitted to the commissioner by February 1 of each year.
184.29    (c) The commissioner shall establish low-income programs to utilize money contributed
184.30to the energy and conservation account under paragraph (b). In establishing low-income
184.31programs, the commissioner shall consult political subdivisions, utilities, and nonprofit and
184.32community organizations, especially organizations engaged in providing energy and
184.33weatherization assistance to low-income persons. Money contributed to the energy and
184.34conservation account under paragraph (b) must provide programs for low-income persons,
185.1including low-income renters, in the service territory of the utility or association providing
185.2the money. The commissioner shall record and report expenditures and energy savings
185.3achieved as a result of low-income programs funded through the energy and conservation
185.4account in the report required under subdivision 1c, paragraph (g). The commissioner may
185.5contract with a political subdivision, nonprofit or community organization, public utility,
185.6municipality, or cooperative electric association to implement low-income programs funded
185.7through the energy and conservation account.
185.8    (d) A utility or association may petition the commissioner to modify its required spending
185.9under paragraph (a) if the utility or association and the commissioner have been unable to
185.10expend the amount required under paragraph (a) for three consecutive years.
185.11(e) The costs and benefits associated with any approved low-income gas or electric
185.12conservation improvement program that is not cost-effective when considering the costs
185.13and benefits to the utility may, at the discretion of the utility, be excluded from the calculation
185.14of net economic benefits for purposes of calculating the financial incentive to the utility.
185.15The energy and demand savings may, at the discretion of the utility, be applied toward the
185.16calculation of overall portfolio energy and demand savings for purposes of determining
185.17progress toward annual goals and in the financial incentive mechanism.
185.18EFFECTIVE DATE.This section is effective the day following final enactment.

185.19    Sec. 22. Minnesota Statutes 2016, section 216B.2422, subdivision 2, is amended to read:
185.20    Subd. 2. Resource plan filing and approval. (a) A utility shall file a resource plan with
185.21the commission periodically in accordance with rules adopted by the commission. The
185.22commission shall approve, reject, or modify the plan of a public utility, as defined in section
185.23216B.02, subdivision 4 , consistent with the public interest. The analysis must consider the
185.24economy, job growth, and job retention.
185.25(b) In the resource plan proceedings of all other utilities, the commission's order shall
185.26be advisory and the order's findings and conclusions shall constitute prima facie evidence
185.27which may be rebutted by substantial evidence in all other proceedings. With respect to
185.28utilities other than those defined in section 216B.02, subdivision 4, the commission shall
185.29consider the filing requirements and decisions in any comparable proceedings in another
185.30jurisdiction.
185.31(c) As a part of its resource plan filing, a utility shall include the least cost plan for
185.32meeting 50 and 75 percent of all energy needs from both new and refurbished capacity
186.1needs generating facilities through a combination of conservation and renewable energy
186.2resources.
186.3EFFECTIVE DATE.This section is effective the day following final enactment.
186.4Paragraphs (a) and (b) apply immediately to all proceedings pending before the commission.
186.5Paragraph (c) applies to resource plans filed with the commission on or after July 1, 2017.

186.6    Sec. 23. Minnesota Statutes 2016, section 216B.2422, subdivision 3, is amended to read:
186.7    Subd. 3. Environmental costs. (a) The commission shall, to the extent practicable,
186.8quantify and establish a range of environmental costs associated with each method of
186.9electricity generation. A utility shall use the values established by the commission in
186.10conjunction with other external factors, including socioeconomic costs, when evaluating
186.11and selecting resource options in all proceedings before the commission, including resource
186.12plan and certificate of need proceedings. As part of the resource options and socioeconomic
186.13cost analysis under this section, the utility must calculate the impact of resource options on
186.14customers' bills and utility rates. Any doubt regarding the various resource options before
186.15the commission must be resolved in favor of supporting the economy, job growth, and job
186.16retention.
186.17(b) The commission shall establish interim environmental cost values associated with
186.18each method of electricity generation by March 1, 1994. These values expire on the date
186.19the commission establishes environmental cost values under paragraph (a).
186.20EFFECTIVE DATE.This section is effective the day following final enactment and
186.21applies immediately to all proceedings pending before the commission.

186.22    Sec. 24. Minnesota Statutes 2016, section 216B.2422, subdivision 4, is amended to read:
186.23    Subd. 4. Preference for renewable energy facility. The commission shall not approve
186.24a new or refurbished nonrenewable energy facility in an integrated resource plan or a
186.25certificate of need, pursuant to section 216B.243, nor shall the commission allow rate
186.26recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the
186.27utility has demonstrated that a renewable energy facility is not in the public interest. When
186.28making the public interest determination, the commission must include consider:
186.29(1) whether the resource plan helps the utility achieve the greenhouse gas reduction
186.30goals under section 216H.02, the renewable energy standard under section 216B.1691, or
186.31the solar energy standard under section 216B.1691, subdivision 2f.;
186.32(2) impacts on local and regional grid reliability;
187.1(3) utility and ratepayer impacts resulting from the intermittent nature of renewable
187.2energy facilities, including but not limited to the costs of purchasing wholesale electricity
187.3in the market and the costs of providing ancillary services; and
187.4(4) utility and ratepayer impacts resulting from reduced exposure to fuel price volatility,
187.5changes in transmission costs, portfolio diversification, and environmental compliance
187.6costs.
187.7EFFECTIVE DATE.This section is effective July 1, 2017.

187.8    Sec. 25. Minnesota Statutes 2016, section 216B.2424, is amended by adding a subdivision
187.9to read:
187.10    Subd. 9. Adjustment of biomass fuel requirement. (a) Notwithstanding any provision
187.11in this section, the public utility subject to this section may, with respect to a facility approved
187.12under this section, file a petition with the commission for approval of:
187.13(1) a new or amended power purchase agreement;
187.14(2) the early termination of a power purchase agreement; or
187.15(3) the purchase and closure of the facility.
187.16(b) The commission may approve a new or amended power purchase agreement under
187.17this subdivision, notwithstanding the fuel requirements of this section, if the commission
187.18determines that:
187.19(1) all parties to the original power purchase agreement, or their successors or assigns,
187.20as applicable, agree to the terms and conditions of the new or amended power purchase
187.21agreement; and
187.22(2) the new or amended power purchase agreement is in the best interest of the customers
187.23of the public utility subject to this section, taking into consideration any savings realized
187.24by customers in the new or amended power purchase agreement and any costs imposed on
187.25customers under paragraph (e). A new or amended power purchase agreement approved
187.26under this paragraph may be for any term agreed to by the parties and may govern the
187.27purchase of any amount of energy.
187.28(c) The commission may approve the early termination of a power purchase agreement
187.29or the purchase and closure of a facility under this subdivision if it determines that:
187.30(1) all parties to the power purchase agreement, or their successors or assigns, as
187.31applicable, agree to the early termination of the power purchase agreement or the purchase
187.32and closure of the facility; and
188.1(2) the early termination of the power purchase agreement or the purchase and closure
188.2of the facility is in the best interest of the customers of the public utility subject to this
188.3section, taking into consideration any savings realized by customers as a result of the early
188.4termination of the power purchase agreement or the purchase and closure of the facility and
188.5any costs imposed on the customers under paragraph (e).
188.6(d) The commission's approval of a new or amended power purchase agreement under
188.7paragraph (b) or of the termination of a power purchase agreement or the purchase and
188.8closure of a facility under paragraph (c), shall not require the public utility subject to this
188.9section to purchase replacement amounts of biomass energy to fulfill the requirements of
188.10this section.
188.11(e) A utility may petition the commission to approve a rate schedule that provides for
188.12the automatic adjustment of charges to recover investments, expenses and costs, and earnings
188.13on the investments associated with a new or amended power purchase agreement, the early
188.14termination of a power purchase agreement, or the purchase and closure of a facility,
188.15including, but not limited to, reasonable financial accommodations to the county, city, and
188.16school district in which an affected facility is located. The commission may approve the
188.17rate schedule upon a showing that the recovery of investments, expenses and costs, and
188.18earnings on the investments is less than the costs that would have been recovered from
188.19customers had the utility continued to purchase energy under the power purchase agreement
188.20in effect before any option available under this section is approved by the commission. If
188.21approved by the commission, cost recovery under this paragraph may include all cost
188.22recovery allowed for renewable facilities under section 216B.1645, subdivisions 2 and 2a.
188.23(f) For the purposes of this subdivision, "facility" means a biomass facility previously
188.24approved by the commission to satisfy a portion of the biomass mandate in this section.
188.25EFFECTIVE DATE.This section is effective the day following final enactment.

188.26    Sec. 26. Minnesota Statutes 2016, section 216B.243, subdivision 8, is amended to read:
188.27    Subd. 8. Exemptions. (a) This section does not apply to:
188.28(1) cogeneration or small power production facilities as defined in the Federal Power
188.29Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and
188.30paragraph (18), subparagraph (A), and having a combined capacity at a single site of less
188.31than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or
188.32any case where the commission has determined after being advised by the attorney general
188.33that its application has been preempted by federal law;
189.1(2) a high-voltage transmission line proposed primarily to distribute electricity to serve
189.2the demand of a single customer at a single location, unless the applicant opts to request
189.3that the commission determine need under this section or section 216B.2425;
189.4(3) the upgrade to a higher voltage of an existing transmission line that serves the demand
189.5of a single customer that primarily uses existing rights-of-way, unless the applicant opts to
189.6request that the commission determine need under this section or section 216B.2425;
189.7(4) a high-voltage transmission line of one mile or less required to connect a new or
189.8upgraded substation to an existing, new, or upgraded high-voltage transmission line;
189.9(5) conversion of the fuel source of an existing electric generating plant to using natural
189.10gas;
189.11(6) the modification of an existing electric generating plant to increase efficiency, as
189.12long as the capacity of the plant is not increased more than ten percent or more than 100
189.13megawatts, whichever is greater;
189.14(7) a wind energy conversion system or solar electric generation facility if the system
189.15or facility is owned and operated by an independent power producer and the electric output
189.16of the system or facility is not sold to an entity that provides retail service in Minnesota or
189.17wholesale electric service to another entity in Minnesota other than an entity that is a federally
189.18recognized regional transmission organization or independent system operator; or
189.19(8) a large wind energy conversion system, as defined in section 216F.01, subdivision
189.202
, or a solar energy generating large energy facility, as defined in section 216B.2421,
189.21subdivision 2
216E.01, subdivision 9a, engaging in a repowering project that:
189.22(i) will not result in the facility exceeding the nameplate capacity under its most recent
189.23interconnection agreement; or
189.24(ii) will result in the facility exceeding the nameplate capacity under its most recent
189.25interconnection agreement, provided that the Midcontinent Independent System Operator
189.26has provided a signed generator interconnection agreement that reflects the expected net
189.27power increase.;
189.28(9) a large wind energy conversion system, as defined in section 216F.01, subdivision
189.292;
189.30(10) a solar energy generating system, as defined in section 216E.01, subdivision 9a,
189.31with a capacity of five megawatts or more;
189.32(11) a pipeline transporting crude oil or refined petroleum products;
190.1(12) a pipeline transporting natural gas or propane; or
190.2(13) a replacement pipeline.
190.3(b) For the purpose of this subdivision, the following terms have the meanings given:
190.4(1) "repowering project" means:
190.5(1) (i) modifying a large wind energy conversion system or a solar energy generating
190.6large energy facility to increase its efficiency without increasing its nameplate capacity;
190.7(2) (ii) replacing turbines in a large wind energy conversion system without increasing
190.8the nameplate capacity of the system; or
190.9(3) (iii) increasing the nameplate capacity of a large wind energy conversion system;
190.10and
190.11(2) "replacement pipeline" means a pipeline constructed in a new or existing right-of-way
190.12that replaces service provided by an existing pipeline that will be permanently removed
190.13from service within 180 days of the date of initial service of the replacement pipeline.
190.14EFFECTIVE DATE.This section is effective the day following final enactment.

190.15    Sec. 27. Minnesota Statutes 2016, section 216C.05, subdivision 2, is amended to read:
190.16    Subd. 2. Energy policy goals. It is the energy policy of the state of Minnesota that:
190.17(1) annual energy savings equal to at least 1.5 percent of annual retail energy sales of
190.18electricity and natural gas be achieved through cost-effective energy efficiency;
190.19    (2) the per capita use of fossil fuel as an energy input be reduced by 15 percent by the
190.20year 2015, through increased reliance on energy efficiency and renewable energy alternatives;
190.21and
190.22    (3) 25 percent of the total energy used in the state be derived from renewable energy
190.23resources by the year 2025.; and
190.24    (4) retail electricity rates for each customer class be at least five percent below the
190.25national average.
190.26EFFECTIVE DATE.This section is effective the day following final enactment.

190.27    Sec. 28. Minnesota Statutes 2016, section 216C.41, subdivision 2, is amended to read:
190.28    Subd. 2. Incentive payment; appropriation. (a) Incentive payments must be made
190.29according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner
191.1or operator of a qualified hydropower facility or qualified wind energy conversion facility
191.2for electric energy generated and sold by the facility, (3) a publicly owned hydropower
191.3facility for electric energy that is generated by the facility and used by the owner of the
191.4facility outside the facility, or (4) the owner of a publicly owned dam that is in need of
191.5substantial repair, for electric energy that is generated by a hydropower facility at the dam
191.6and the annual incentive payments will be used to fund the structural repairs and replacement
191.7of structural components of the dam, or to retire debt incurred to fund those repairs.
191.8(b) Payment may only be made upon receipt by the commissioner of commerce of an
191.9incentive payment application that establishes that the applicant is eligible to receive an
191.10incentive payment and that satisfies other requirements the commissioner deems necessary.
191.11The application must be in a form and submitted at a time the commissioner establishes.
191.12(c) There is annually appropriated from the renewable development C-LEAF account
191.13established under section 116C.779 to the commissioner of commerce sums sufficient to
191.14make the payments required under this section, in addition to the amounts funded by the
191.15renewable development C-LEAF account as specified in subdivision 5a.
191.16EFFECTIVE DATE.This section is effective the day following final enactment.

191.17    Sec. 29. Minnesota Statutes 2016, section 216C.41, subdivision 5a, is amended to read:
191.18    Subd. 5a. Renewable development account Payment authorization. The Department
191.19of Commerce shall authorize payment of the renewable energy production incentive to wind
191.20energy conversion systems that are eligible under this section or Laws 2005, chapter 40, to
191.21on-farm biogas recovery facilities, and to hydroelectric facilities. Payment of the incentive
191.22shall be made from the renewable energy development C-LEAF account as provided under
191.23section 116C.779, subdivision 2.
191.24EFFECTIVE DATE.This section is effective the day following final enactment.

191.25    Sec. 30. [216C.417] PROGRAM ADMINISTRATION; "MADE IN MINNESOTA"
191.26SOLAR ENERGY PRODUCTION INCENTIVES.
191.27    Subdivision 1. General provisions. Payment of a "Made in Minnesota" solar energy
191.28production incentive to an owner whose application was approved by the commissioner of
191.29commerce under section 216C.415, by May 1, 2017, must be administered under the
191.30provisions of Minnesota Statutes 2016, sections 216C.411; 216C.413; 216C.414, subdivisions
191.311 to 3 and 5; and 216C.415. No incentive payments may be made under this section to an
191.32owner whose application was approved by the commissioner after May 1, 2017.
192.1    Subd. 2. Appropriation. (a) Unspent money remaining in the account established under
192.2Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the
192.3C-LEAF account in the special revenue fund established under Minnesota Statutes, section
192.4116C.779, subdivision 1.
192.5(b) Notwithstanding section 116C.779, subdivision 1, paragraph (g), there is annually
192.6appropriated from the C-LEAF account in the special revenue fund established in Minnesota
192.7Statutes, section 116C.779, to the commissioner of commerce money sufficient to make
192.8the incentive payments required under Minnesota Statutes 2016, section 216C.415. Any
192.9funds appropriated under this paragraph that are unexpended at the end of a fiscal year
192.10cancel to the C-LEAF account.
192.11(c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of
192.12this appropriation may be used for administrative costs.
192.13    Subd. 3. Eligibility window; payment duration. (a) Payments may be made under this
192.14subdivision only for solar photovoltaic module installations that meet the requirements of
192.15subdivision 1 and that first begin generating electricity between January 1, 2014, and October
192.1631, 2018.
192.17(b) The payment eligibility window of the incentive begins and runs consecutively from
192.18the date the solar photovoltaic modules first begins generating electricity.
192.19(c) An owner of solar photovoltaic modules may receive payments under this section
192.20for a particular module for a period of ten years, provided that sufficient funds are available
192.21in the account.
192.22(d) No payment may be made under this section for electricity generated after October
192.2331, 2028.
192.24EFFECTIVE DATE.This section is effective the day following final enactment.

192.25    Sec. 31. Minnesota Statutes 2016, section 216C.435, is amended by adding a subdivision
192.26to read:
192.27    Subd. 7a. Multifamily residential dwelling. "Multifamily residential dwelling" means
192.28a residential dwelling containing five or more units intended for use as a residence by tenants
192.29or lessees of the owner.

193.1    Sec. 32. Minnesota Statutes 2016, section 216E.03, subdivision 3, is amended to read:
193.2    Subd. 3. Application. Any person seeking to construct a large electric power generating
193.3plant or a high-voltage transmission line must apply to the commission for a site or route
193.4permit. The application shall contain such information as the commission may require. The
193.5applicant shall may propose at least two sites for a large electric power generating plant and
193.6two routes for a high-voltage transmission line. Neither of the two proposed routes may be
193.7designated as a preferred route and all proposed routes must be numbered and designated
193.8as alternatives. The commission shall determine whether an application is complete and
193.9advise the applicant of any deficiencies within ten days of receipt. An application is not
193.10incomplete if information not in the application can be obtained from the applicant during
193.11the first phase of the process and that information is not essential for notice and initial public
193.12meetings.
193.13EFFECTIVE DATE.This section is effective the day following final enactment.

193.14    Sec. 33. Minnesota Statutes 2016, section 216E.03, subdivision 9, is amended to read:
193.15    Subd. 9. Timing. The commission shall make a final decision on an application within
193.1660 days after receipt of the report of the administrative law judge. A final decision on the
193.17request for a site permit or route permit shall be made within one year after the commission's
193.18determination that an application is complete. The commission may extend this time limit
193.19for up to three months 30 days for just cause or upon agreement of the applicant.
193.20EFFECTIVE DATE.This section is effective the day following final enactment.

193.21    Sec. 34. Minnesota Statutes 2016, section 216E.04, subdivision 7, is amended to read:
193.22    Subd. 7. Timing. The commission shall make a final decision on an application within
193.2360 days after completion of the public hearing. A final decision on the request for a site
193.24permit or route permit under this section shall be made within six months after the
193.25commission's determination that an application is complete. The commission may extend
193.26this time limit for up to three months 30 days for just cause or upon agreement of the
193.27applicant.
193.28EFFECTIVE DATE.This section is effective the day following final enactment.

193.29    Sec. 35. Minnesota Statutes 2016, section 216F.01, subdivision 2, is amended to read:
193.30    Subd. 2. Large wind energy conversion system or LWECS. "Large wind energy
193.31conversion system" or "LWECS" means any combination of WECS with a combined
194.1nameplate capacity of 5,000 kilowatts or more and transmission lines directly associated
194.2with the LWECS that are necessary to interconnect the LWECS to the transmission system.
194.3EFFECTIVE DATE.This section is effective the day following final enactment.

194.4    Sec. 36. Minnesota Statutes 2016, section 216F.011, is amended to read:
194.5216F.011 SIZE DETERMINATION.
194.6    (a) The total size of a combination of wind energy conversion systems for the purpose
194.7of determining what jurisdiction has siting authority under this chapter must be determined
194.8according to this section. The nameplate capacity of one wind energy conversion system
194.9must be combined with the nameplate capacity of any other wind energy conversion system
194.10that:
194.11    (1) is located within five miles of the wind energy conversion system;
194.12    (2) is constructed within the same 12-month period as the wind energy conversion
194.13system; and
194.14    (3) exhibits characteristics of being a single development, including, but not limited to,
194.15ownership structure, an umbrella sales arrangement, shared interconnection, revenue sharing
194.16arrangements, and common debt or equity financing.
194.17    (b) The commissioner shall provide forms and assistance for project developers to make
194.18a request for a size determination. Upon written request of a project developer, the
194.19commissioner of commerce shall provide a written size determination within 30 days of
194.20receipt of the request and of any information needed to complete the size determination that
194.21has been requested by the commissioner. In the case of a dispute, the chair of the Public
194.22Utilities Commission shall make the final size determination.
194.23    (c) An application to a county for a permit under this chapter for a wind energy conversion
194.24system is not complete without a size determination made under this section.
194.25EFFECTIVE DATE.This section is effective the day following final enactment.

194.26    Sec. 37. Minnesota Statutes 2016, section 216F.04, is amended to read:
194.27216F.04 SITE PERMIT.
194.28(a) No person may construct an LWECS without a site permit issued by the Public
194.29Utilities Commission.
195.1(b) Any person seeking to construct an LWECS shall submit an application to the
195.2commission for a site permit in accordance with this chapter and any rules adopted by the
195.3commission. The permitted site need not be contiguous land.
195.4(c) The commission shall make a final decision on an application for a site permit for
195.5an LWECS within 180 days after acceptance of a complete application by the commission.
195.6The commission may extend this deadline for cause if the proposer agrees to an extension
195.7in writing.
195.8(d) The commission may place conditions in a permit and may deny, modify, suspend,
195.9or revoke a permit.
195.10EFFECTIVE DATE.This section is effective the day following final enactment.

195.11    Sec. 38. [216G.025] ALTERNATIVE PIPELINE ROUTES; RESTRICTION.
195.12Notwithstanding section 116D.04, subdivisions 2a and 6, and any other law or rule, no
195.13environmental analysis of alternative routes for a pipeline seeking a routing permit may
195.14include an alternative route that does not connect the pipeline's termini as proposed by the
195.15applicant.

195.16    Sec. 39. Minnesota Statutes 2016, section 216H.03, subdivision 3, is amended to read:
195.17    Subd. 3. Long-term increased emissions from power plants prohibited. Unless
195.18preempted by federal law, until a comprehensive and enforceable state law or rule pertaining
195.19to greenhouse gases that directly limits and substantially reduces, over time, statewide power
195.20sector carbon dioxide emissions is enacted and in effect, and except as allowed in
195.21subdivisions 4 to 7, on and after August 1, 2009, no person shall:
195.22    (1) construct within the state a new large energy facility that would contribute to statewide
195.23power sector carbon dioxide emissions;.
195.24    (2) import or commit to import from outside the state power from a new large energy
195.25facility that would contribute to statewide power sector carbon dioxide emissions; or
195.26    (3) enter into a new long-term power purchase agreement that would increase statewide
195.27power sector carbon dioxide emissions. For purposes of this section, a long-term power
195.28purchase agreement means an agreement to purchase 50 megawatts of capacity or more for
195.29a term exceeding five years.
195.30EFFECTIVE DATE.This section is effective the day following final enactment.

196.1    Sec. 40. Minnesota Statutes 2016, section 216H.03, subdivision 4, is amended to read:
196.2    Subd. 4. Exception for facilities that offset emissions. (a) The prohibitions in prohibition
196.3under subdivision 3 do does not apply if the project proponent demonstrates to the Public
196.4Utilities Commission's satisfaction that it will offset the new contribution to statewide power
196.5sector carbon dioxide emissions with a carbon dioxide reduction project identified in
196.6paragraph (b) and in compliance with paragraph (c).
196.7    (b) A project proponent may offset in an amount equal to or greater than the proposed
196.8new contribution to statewide power sector carbon dioxide emissions in either, or a
196.9combination of both, of the following ways:
196.10    (1) by reducing an existing facility's contribution to statewide power sector carbon
196.11dioxide emissions; or
196.12    (2) by purchasing carbon dioxide allowances from a state or group of states that has a
196.13carbon dioxide cap and trade system in place that produces verifiable emissions reductions.
196.14    (c) The Public Utilities Commission shall not find that a proposed carbon dioxide
196.15reduction project identified in paragraph (b) acceptably offsets a new contribution to statewide
196.16power sector carbon dioxide emissions unless the proposed offsets are permanent,
196.17quantifiable, verifiable, enforceable, and would not have otherwise occurred. This section
196.18does not exempt emissions that have been offset under this subdivision and emissions
196.19exempted under subdivisions 5 to 7 from a cap and trade system if adopted by the state.
196.20EFFECTIVE DATE.This section is effective the day following final enactment.

196.21    Sec. 41. Minnesota Statutes 2016, section 216H.03, subdivision 7, is amended to read:
196.22    Subd. 7. Other exemptions. The prohibitions in prohibition under subdivision 3 do does
196.23not apply to:
196.24    (1) a new large energy facility under consideration by the Public Utilities Commission
196.25pursuant to proposals or applications filed with the Public Utilities Commission before April
196.261, 2007, or to any power purchase agreement related to a facility described in this clause.
196.27The exclusion of pending proposals and applications from the prohibitions in subdivision
196.283 does not limit the applicability of any other law and is not an expression of legislative
196.29intent regarding whether any pending proposal or application should be approved or denied;
196.30    (2) a contract not subject to commission approval that was entered into prior to April 1,
196.312007, to purchase power from a new large energy facility that was approved by a comparable
197.1authority in another state prior to that date, for which municipal or public power district
197.2bonds have been issued, and on which construction has begun;
197.3    (3) a new large energy facility or a power purchase agreement between a Minnesota
197.4utility and a new large energy facility located outside within Minnesota that the Public
197.5Utilities Commission has determined is essential to ensure the long-term reliability of
197.6Minnesota's electric system, to allow electric service for increased industrial demand, or to
197.7avoid placing a substantial financial burden on Minnesota ratepayers. An order of the
197.8commission granting an exemption under this clause is stayed until the June 1 following
197.9the next regular or annual session of the legislature that begins after the date of the
197.10commission's final order; or
197.11(4) a new large energy facility with a combined electric generating capacity of less than
197.12100 megawatts, which did not require a Minnesota certificate of need, which received an
197.13air pollution control permit to construct from an adjoining state before January 1, 2008, and
197.14on which construction began before July 1, 2008, or to any power purchase agreement
197.15related to a facility described in this clause.
197.16EFFECTIVE DATE.This section is effective the day following final enactment.

197.17    Sec. 42. RESIDENTIAL PACE CONSUMER PROTECTION LEGISLATION TASK
197.18FORCE.
197.19    Subdivision 1. Establishment. The Residential PACE Consumer Protection Legislation
197.20Task Force shall develop recommendations for consumer protection legislation for any
197.21energy improvements financing program implemented under Minnesota Statutes, sections
197.22216C.435 to 216C.436, for single-family residential dwellings. For purposes of this section,
197.23"residential PACE" or "PACE" means energy improvement financing programs for
197.24single-family residential dwellings authorized under Minnesota Statutes, sections 216C.435
197.25to 216C.436.
197.26    Subd. 2. Task force. (a) The task force consists of 16 members as follows:
197.27(1) one member appointed by the Minnesota Association of Realtors;
197.28(2) one member appointed by the Center for Energy and Environment;
197.29(3) one member appointed by the Minnesota Bankers Association;
197.30(4) one member appointed by the Legal Services Advocacy Project;
197.31(5) one member appointed by the Minnesota Credit Union Network;
197.32(6) one member appointed by the Minnesota Solar Energy Industry Association;
198.1(7) one member appointed by the St. Paul Port Authority;
198.2(8) one member appointed by the League of Minnesota Cities;
198.3(9) one member appointed by the Association of Minnesota Counties;
198.4(10) one member appointed by AARP Minnesota;
198.5(11) one member appointed by Fresh Energy;
198.6(12) one member appointed by the Citizens Utility Board of Minnesota;
198.7(13) one member appointed by Clean Energy Economy Minnesota;
198.8(14) one member appointed by the Minnesota Land Title Association;
198.9(15) one member appointed by an organization with experience implementing residential
198.10PACE programs in other states; and
198.11(16) the commissioner of commerce or a designee.
198.12(b) Any public member can designate a substitute from the same organization to replace
198.13that member at a meeting of the task force.
198.14    Subd. 3. Duties. The task force must develop recommendations to:
198.15(1) address concerns regarding the possible constraints on free alienation of residential
198.16property caused by existence and amount of the PACE liens;
198.17(2) reduce and minimize any point-of-sale confusion in transactions involving
198.18PACE-encumbered homes;
198.19(3) ensure conspicuous and meaningful disclosure of, among other things:
198.20(i) all costs and fees of a residential PACE loan; and
198.21(ii) the risks, such as foreclosure and higher costs, that may be associated with residential
198.22PACE loans relative to other financing mechanisms;
198.23(4) ensure that the ability to repay standard uses commonly accepted underwriting
198.24principles;
198.25(5) ensure that consumer provisions required of and protections that apply to conventional
198.26loans and other financing options, including but not limited to the Truth in Lending Act and
198.27the Real Estate Settlement Procedures Act, are required of and apply to PACE financing;
198.28(6) address any unique protections necessary for elderly, low-income homeowners and
198.29other financially vulnerable homeowners;
199.1(7) establish criteria to ensure the cost-effectiveness of PACE-enabled clean energy
199.2improvements; and
199.3(8) address any other issues the task force identifies that are necessary to protect
199.4consumers.
199.5    Subd. 4. Administrative support. The commissioner of commerce shall provide
199.6administrative support and meeting space for the task force.
199.7    Subd. 5. Compensation. Members serve without compensation and shall not be
199.8reimbursed for expenses.
199.9    Subd. 6. Chair. The commissioner of commerce or the commissioner's designee shall
199.10serve as chair.
199.11    Subd. 7. Meetings. The task force shall meet regularly, at the call of the chair. Meetings
199.12of the task force are subject to Minnesota Statutes, chapter 13D.
199.13    Subd. 8. Appointments; first meeting. Appointments must be made by June 1, 2017.
199.14The commissioner of commerce must convene the first meeting by July 15, 2017.
199.15    Subd. 9. Report to legislature. By January 15, 2018, the commissioner shall submit a
199.16report detailing the task force's findings and recommendations to the chairs and ranking
199.17minority members of the senate and house of representatives committees with jurisdiction
199.18over energy and consumer protection policy and finance. The report must include any draft
199.19legislation necessary to implement the recommendations of the task force.
199.20    Subd. 10. Suspension of residential PACE. Until legislation is enacted establishing
199.21consumer protections that address, but are not limited to, the concerns identified in
199.22subdivision 3, no programs for the financing of energy improvements on a single-family
199.23residential property dwelling under Minnesota Statutes, sections 216C.435 to 216C.436,
199.24may be operated after the effective date of this section.
199.25    Subd. 11. Expiration. The task force expires January 15, 2018, or after submitting the
199.26report required in this section, whichever is earlier.
199.27EFFECTIVE DATE.This section is effective the day following final enactment.

200.1    Sec. 43. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR
200.2THERMAL REBATES.
200.3(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner
200.4of a solar thermal system whose application was approved by the commissioner of commerce
200.5after the effective date of this act.
200.6(b) Unspent money remaining in the account established under Minnesota Statutes 2014,
200.7section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF account established
200.8under Minnesota Statutes 2016, section 116C.779, subdivision 1.
200.9EFFECTIVE DATE.This section is effective the day following final enactment.

200.10    Sec. 44. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF
200.11UNEXPENDED GRANT FUNDS.
200.12(a) No later than 30 days after the effective date of this section, the utility subject to
200.13Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person
200.14who received a grant funded from the renewable development account previously established
200.15under that subdivision:
200.16(1) after January 1, 2012; and
200.17(2) before January 1, 2012, if the funded project remains incomplete as of the effective
200.18date of this section.
200.19The notice must contain the provisions of this section and instructions directing grant
200.20recipients how unexpended funds can be transferred to the clean energy advancement fund
200.21account.
200.22(b) A recipient of a grant from the renewable development account previously established
200.23under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after
200.24receiving the notice required under paragraph (a), transfer any grant funds that remain
200.25unexpended as of the effective date of this section to the clean energy advancement fund
200.26account if, by that effective date, all of the following conditions are met:
200.27(1) the grant was awarded more than five years before the effective date of this section;
200.28(2) the grant recipient has failed to obtain control of the site on which the project is to
200.29be constructed;
200.30(3) the grant recipient has failed to secure all necessary permits or approvals from any
200.31unit of government with respect to the project; and
201.1(4) construction of the project has not begun.
201.2(c) A recipient of a grant from the renewable development account previously established
201.3under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds
201.4that remain unexpended five years after the grant funds are received by the grant recipient
201.5if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant
201.6recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary
201.7of the receipt of the grant funds.
201.8(d) A person who transfers funds to the clean energy advancement fund account under
201.9this section is eligible to apply for funding from the clean energy advancement fund account.
201.10EFFECTIVE DATE.This section is effective the day following final enactment.

201.11    Sec. 45. REPEALER.
201.12(a) Laws 2013, chapter 85, article 6, section 11, is repealed.
201.13(b) Minnesota Statutes 2016, sections 216B.8109; 216B.811; 216B.812; 216B.813; and
201.14216B.815, are repealed.
201.15(c) Minnesota Statutes 2016, sections 3.8852; 116C.779, subdivision 3; and 216C.29,
201.16are repealed.
201.17(d) Minnesota Statutes 2016, sections 174.187; 216C.411; 216C.412; 216C.413;
201.18216C.414; 216C.415; and 216C.416, are repealed.
201.19EFFECTIVE DATE.This section is effective the day following final enactment.

201.20ARTICLE 11
201.21HOUSING POLICY

201.22    Section 1. Minnesota Statutes 2016, section 299F.01, is amended by adding a subdivision
201.23to read:
201.24    Subd. 4. Mandatory fire sprinklers prohibited. (a) The State Building Code, the State
201.25Fire Code, or a political subdivision of the state by code or ordinance, must not require the
201.26installation of fire sprinklers, any fire sprinkler system components, or automatic
201.27fire-extinguishing equipment or devices in any new or existing single-family detached
201.28dwelling unit, two-family dwelling unit, townhome, or accessory structure such as a garage,
201.29covered patio, deck, porch, storage shed, or similar structure.
201.30(b) This subdivision does not affect or limit a requirement for smoke or fire detectors,
201.31alarms, or their components.
202.1EFFECTIVE DATE.This section is effective the day following final enactment.

202.2    Sec. 2. Minnesota Statutes 2016, section 327C.01, is amended by adding a subdivision to
202.3read:
202.4    Subd. 13. Class I manufactured home park. A "class I manufactured home park"
202.5means a park that complies with the provisions of section 327C.16.
202.6EFFECTIVE DATE.This section is effective the day following final enactment.

202.7    Sec. 3. [327C.16] CLASS I MANUFACTURED HOME PARK.
202.8    Subdivision 1. Qualifications. (a) To qualify as a class I manufactured home park, as
202.9defined in section 327C.01, subdivision 13, a park owner, or on-site attendant as an employee
202.10of the manufactured home park, must satisfy 12 hours of qualifying education courses every
202.11three years, as prescribed in this subdivision. Park owners or on-site attendants may begin
202.12accumulating qualifying hours to qualify as a class I manufactured home park beginning in
202.132017.
202.14(b) The qualifying education courses required for classification under this subdivision
202.15must be continuing education courses approved by the Department of Labor and Industry
202.16or the Department of Commerce for:
202.17(1) continuing education in real estate; or
202.18(2) continuing education for residential contractors and manufactured home installers.
202.19(c) The qualifying education courses must include:
202.20(1) two hours on fair housing, approved for real estate licensure or residential contractor
202.21licensure;
202.22(2) one hour on the Americans with Disabilities Act, approved for real estate licensure
202.23or residential contractor licensure;
202.24(3) four hours on legal compliance related to any of the following: landlord/tenant,
202.25licensing requirements, or home financing under chapters 58, 327, 327B, 327C, and 504B,
202.26and Minnesota Rules, chapter 1350 or 4630;
202.27(4) three hours of general education approved for real estate, residential contractors, or
202.28manufactured home installers; and
202.29(5) two hours of HUD-specific manufactured home installer courses as required under
202.30section 327B.041.
203.1(d) If the qualifying owner or employee attendant is no longer the person meeting the
203.2requirements under this subdivision, but did qualify during the current assessment year,
203.3then the manufactured home park shall still qualify for the class rate provided for class 4c
203.4property classified under section 273.13, subdivision 25, paragraph (d), clause (5), item
203.5(iii).
203.6    Subd. 2. Proof of compliance. (a) A park owner that has met the requirements of
203.7subdivision 1 shall provide an affidavit to the park owner's county assessor certifying that
203.8the park owner, corporate officer, or on-site attendant has complied with subdivision 1 and
203.9that the park meets the definition of a class I manufactured home park as defined in this
203.10section, and is entitled to the property tax classification rate for class I manufactured home
203.11parks in section 273.13, subdivision 25. The park owner shall retain the original course
203.12completion certificates issued by the course sponsor under this section for three years and,
203.13upon written request for verification, provide these to the county assessor within 30 days.
203.14(b) A park owner must provide the county assessor written notice of any change in
203.15compliance status of the manufactured home park no later than December 15 of the
203.16assessment year.
203.17EFFECTIVE DATE.This section is effective the day following final enactment.

203.18    Sec. 4. Minnesota Statutes 2016, section 462.355, subdivision 4, is amended to read:
203.19    Subd. 4. Interim ordinance. (a) If a municipality is conducting studies or has authorized
203.20a study to be conducted or has held or has scheduled a hearing for the purpose of considering
203.21adoption or amendment of a comprehensive plan or official controls as defined in section
203.22462.352, subdivision 15 , or if new territory for which plans or controls have not been adopted
203.23is annexed to a municipality, the governing body of the municipality may adopt an interim
203.24ordinance applicable to all or part of its jurisdiction for the purpose of protecting the planning
203.25process and the health, safety and welfare of its citizens. The interim ordinance may regulate,
203.26restrict, or prohibit any use, development, or subdivision within the jurisdiction or a portion
203.27thereof for a period not to exceed one year from the date it is effective.
203.28(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities
203.29relating to livestock production, a public hearing must be held following a ten-day notice
203.30given by publication in a newspaper of general circulation in the municipality before the
203.31interim ordinance takes effect.
204.1(c)(1) A statutory or home rule charter city may adopt an interim ordinance that regulates,
204.2restricts, or prohibits a housing proposal only if the ordinance is approved by at least
204.3two-thirds of city council members present.
204.4(2) Before adopting the interim ordinance, the city council must hold a public hearing
204.5after providing written notice to any person who has submitted a housing proposal, has a
204.6pending housing proposal, or has provided a written request to be notified of interim
204.7ordinances related to housing proposals. The written notice must be provided at least three
204.8business days before the public hearing. Notice also must be posted on the city's official
204.9Web site, if the city has an official Web site.
204.10(3) The date of the public hearing shall be the earlier of the next regularly scheduled
204.11city council meeting after the notice period or within ten days of the notice.
204.12(4) The activities proposed to be restricted by the proposed interim ordinance may not
204.13be undertaken before the public hearing.
204.14(5) For the purposes of this paragraph, "housing proposal" means a written request for
204.15city approval of a project intended primarily to provide residential dwellings, either single
204.16family or multi-family, and involves the subdivision or development of land or the
204.17demolition, construction, reconstruction, alteration, repair, or occupancy of residential
204.18dwellings.
204.19(c) (d) The period of an interim ordinance applicable to an area that is affected by a city's
204.20master plan for a municipal airport may be extended for such additional periods as the
204.21municipality may deem appropriate, not exceeding a total additional period of 18 months.
204.22In all other cases, no interim ordinance may halt, delay, or impede a subdivision that has
204.23been given preliminary approval, nor may any interim ordinance extend the time deadline
204.24for agency action set forth in section 15.99 with respect to any application filed prior to the
204.25effective date of the interim ordinance. The governing body of the municipality may extend
204.26the interim ordinance after a public hearing and written findings have been adopted based
204.27upon one or more of the conditions in clause (1), (2), or (3). The public hearing must be
204.28held at least 15 days but not more than 30 days before the expiration of the interim ordinance,
204.29and notice of the hearing must be published at least ten days before the hearing. The interim
204.30ordinance may be extended for the following conditions and durations, but, except as
204.31provided in clause (3), an interim ordinance may not be extended more than an additional
204.3218 months:
204.33(1) up to an additional 120 days following the receipt of the final approval or review by
204.34a federal, state, or metropolitan agency when the approval is required by law and the review
205.1or approval has not been completed and received by the municipality at least 30 days before
205.2the expiration of the interim ordinance;
205.3(2) up to an additional 120 days following the completion of any other process required
205.4by a state statute, federal law, or court order, when the process is not completed at least 30
205.5days before the expiration of the interim ordinance; or
205.6(3) up to an additional one year if the municipality has not adopted a comprehensive
205.7plan under this section at the time the interim ordinance is enacted.
205.8EFFECTIVE DATE.This section is effective for interim ordinances proposed on or
205.9after August 1, 2017.

205.10    Sec. 5. Minnesota Statutes 2016, section 462A.2035, is amended to read:
205.11462A.2035 MANUFACTURED HOME PARK REDEVELOPMENT PROGRAM.
205.12    Subdivision 1. Establishment. The agency shall establish a manufactured home park
205.13redevelopment program for the purpose of making manufactured home park redevelopment
205.14grants or loans to cities, counties, or community action programs, nonprofit organizations,
205.15and cooperatives created under chapter 308A or 308B.
205.16    Subd. 1a. Individual assistance grants. Cities, counties, and community action programs
205.17Eligible recipients may use individual assistance grants and loans under this program to:
205.18(1) provide current residents of manufactured home parks with buy-out assistance not
205.19to exceed $4,000 per home with preference given to older manufactured homes; and
205.20(2) provide down-payment assistance for the purchase of new and preowned manufactured
205.21homes that comply with the current version of the State Building Code in effect at the time
205.22of the sale, not to exceed $10,000 per home; and.
205.23(3) make improvements in manufactured home parks as requested by the grant recipient.
205.24    Subd. 1b. Park infrastructure grants. Eligible recipients may use park infrastructure
205.25grants under this program for:
205.26(1) improvements in manufactured home parks; and
205.27(2) infrastructure, including storm shelters and community facilities.
205.28    Subd. 2. Eligibility requirements. For individual assistance grants under subdivision
205.291a, households assisted under this section must have an annual household income at or
205.30below 80 percent of the area median household income. Cities, counties, or community
205.31action programs receiving funds under the program must give preference to households at
206.1or below 50 percent of the area median household income. Participation in the program is
206.2voluntary and no park resident shall be required to participate.
206.3    Subd. 3. Statewide program. The agency shall attempt to make grants and loans in
206.4approximately equal amounts to applicants outside and within the metropolitan area. Grants
206.5and loans under this section shall be provided in a manner consistent with the agency's
206.6policies and purposes in section 462A.02.
206.7    Subd. 4. Infrastructure repair and replacement fund. Each recipient receiving a grant
206.8under subdivision 1b shall provide from year to year, on a cumulative basis, for adequate
206.9reserve funds to cover the repair and replacement of the private infrastructure systems
206.10serving the community.

206.11    Sec. 6. [462A.39] WORKFORCE HOUSING DEVELOPMENT PROGRAM.
206.12    Subdivision 1. Establishment. The commissioner of Minnesota housing finance shall
206.13establish a workforce housing development program to award grants or deferred loans to
206.14eligible project areas to be used for qualified expenditures.
206.15    Subd. 2. Definitions. (a) For purposes of this section, the following terms have the
206.16meanings given.
206.17(b) "Eligible project area" means a home rule charter or statutory city located outside
206.18of the metropolitan area as defined in section 473.121, subdivision 2, with a population
206.19exceeding 500; a community that has a combined population of 1,500 residents located
206.20within 15 miles of a home rule charter or statutory city located outside the metropolitan
206.21area as defined in section 473.121, subdivision 2; or an area served by a joint county-city
206.22economic development authority.
206.23(c) "Joint county-city economic development authority" means an economic development
206.24authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between
206.25a city and county and excluding those established by the county only.
206.26(d) "Market rate residential rental properties" means properties that are rented at market
206.27value, including new modular homes, new manufactured homes, and new manufactured
206.28homes on leased land or in a manufactured home park, and excludes:
206.29(1) properties constructed with financial assistance requiring the property to be occupied
206.30by residents that meet income limits under federal or state law of initial occupancy; and
206.31(2) properties constructed with federal, state, or local flood recovery assistance, regardless
206.32of whether that assistance imposed income limits as a condition of receiving assistance.
207.1(e) "Qualified expenditure" means expenditures for market rate residential rental
207.2properties including acquisition of property; construction of improvements; and provisions
207.3of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing
207.4costs.
207.5    Subd. 3. Application. The commissioner shall develop forms and procedures for soliciting
207.6and reviewing application for grants or deferred loans under this section. At a minimum, a
207.7city must include in its application a resolution of its governing body certifying that the
207.8matching amount as required under this section is available and committed.
207.9    Subd. 4. Program requirements. (a) The commissioner must not award a grant or
207.10deferred loans to an eligible project area under this section until the following determinations
207.11are made:
207.12(1) the average vacancy rate for rental housing located in the eligible project area, and
207.13in any other city located within 15 miles or less of the boundaries of the area, has been five
207.14percent or less for at least the prior two-year period;
207.15(2) one or more businesses located in the eligible project area, or within 25 miles of the
207.16area, that employs a minimum of 20 full-time equivalent employees in aggregate have
207.17provided a written statement to the eligible project area indicating that the lack of available
207.18rental housing has impeded their ability to recruit and hire employees; and
207.19(3) the eligible project area has certified that the grants or deferred loans will be used
207.20for qualified expenditures for the development of rental housing to serve employees of
207.21businesses located in the eligible project area or surrounding area.
207.22(b) Preference for grants or deferred loans awarded under this section shall be given to
207.23eligible project areas with less than 30,000 people.
207.24    Subd. 5. Allocation. The amount of a grant or deferred loans may not exceed 25 percent
207.25of the rental housing development project cost. The commissioner shall not award a grant
207.26or deferred loans to a city without certification by the city that the amount of the grant or
207.27deferred loans shall be matched by a local unit of government, business, or nonprofit
207.28organization with $1 for every $2 provided in grant or deferred loans funds.
207.29    Subd. 6. Report. Beginning January 15, 2018, the commissioner must annually submit
207.30a report to the chairs and ranking minority members of the senate and house of representatives
207.31committees having jurisdiction over taxes and workforce development specifying the projects
207.32that received grants or deferred loans under this section and the specific purposes for which
207.33the grant funds were used.

208.1    Sec. 7. [462C.16] HOUSING TRUST FUNDS FOR LOCAL HOUSING
208.2DEVELOPMENT.
208.3    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
208.4the meanings given to them.
208.5(b) "Commissioner" means the commissioner of the Minnesota Housing Finance Agency.
208.6(c) "Fund" means a local housing trust fund or a regional housing trust fund.
208.7(d) "Local government" means any statutory or home rule charter city or a county.
208.8(e) "Local housing trust fund" means a fund established by a local government with one
208.9or more dedicated sources of public revenue for housing.
208.10(f) "Regional housing trust fund" means a fund established and administered under a
208.11joint powers agreement entered into by two or more local governments with one or more
208.12dedicated sources of public revenue for housing.
208.13    Subd. 2. Creation and administration. (a) A local government may establish a local
208.14housing trust fund by ordinance or participate in a joint powers agreement to establish a
208.15regional housing trust fund.
208.16(b) A local or regional housing trust fund may be, but is not required to be, administered
208.17through a nonprofit organization. If administered through a nonprofit organization, that
208.18organization shall encourage private charitable donations to the fund.
208.19    Subd. 3. Authorized expenditures. Money in a local or regional housing trust fund may
208.20be used only to:
208.21(1) pay for administrative expenses, but not more than ten percent of the balance of the
208.22fund may be spent on administration;
208.23(2) make grants, loans, and loan guarantees for the development, rehabilitation, or
208.24financing of housing;
208.25(3) match other funds from federal, state, or private resources for housing projects; or
208.26(4) provide down payment assistance, rental assistance, and homebuyer counseling
208.27services.
208.28    Subd. 4. Funding. (a) A local government may finance its local or regional housing
208.29trust fund with any money available to the local government, unless expressly prohibited
208.30by state law. Sources of these funds include, but are not limited to:
208.31(1) donations;
209.1(2) bond proceeds;
209.2(3) grants and loans from a state, federal, or private source;
209.3(4) appropriations by a local government to the fund;
209.4(5) investment earnings of the fund; and
209.5(6) housing and redevelopment authority levies.
209.6(b) The local government may alter a source of funding for the local or regional housing
209.7trust fund, but only if, once altered, sufficient funds will exist to cover the projected debts
209.8or expenditures authorized by the fund in its budget.
209.9    Subd. 5. Reports. A local or regional housing trust fund established under this section
209.10must report annually to the local government that created the fund. The local government
209.11or governments must post this report on its public Web site.
209.12    Subd. 6. Effect of legislation on existing local or regional housing trust funds. A
209.13local or regional housing trust fund existing on the effective date of this section is not
209.14required to alter the existing terms of its governing documents or take any additional
209.15authorizing actions required by subdivision 2.

209.16    Sec. 8. MINNESOTA HOUSING FINANCE AGENCY REPORT.
209.17By February 1, 2018, and February 1, 2019, the Housing Finance Agency shall provide
209.18to the chairs and ranking minority members of the house of representatives and senate
209.19committees with jurisdiction over the agency:
209.20(1) a draft and final version of its affordable housing plan before and after it has been
209.21submitted to the agency board for consideration; and
209.22(2) a report on the actual and anticipated funds available within the Housing Affordability
209.23Fund, or Pool 3, and the actual and anticipated uses of those funds.

209.24    Sec. 9. HOUSING FINANCE AGENCY ADMINISTRATIVE COSTS.
209.25The cost of administering programs operated by the Housing Finance Agency that are
209.26funded by the general fund or other resources, including bonds and federal funding, must
209.27not be higher than the amount expended for direct or indirect administrative costs in fiscal
209.28year 2017. The Housing Finance Agency must not have more full-time equivalent positions
209.29than the number of full-time equivalent positions at the Housing Finance Agency on June
209.3030, 2017.
210.1EFFECTIVE DATE.This section is effective from July 1, 2017, to July 1, 2021.

210.2ARTICLE 12
210.3MISCELLANEOUS POLICY

210.4    Section 1. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR
210.5REMODELING; LEGISLATIVE NOTICE AND REVIEW.
210.6    Subdivision 1. Definition. As used in this section, "residential construction" means the
210.7new construction or remodeling of any building subject to the Minnesota Residential Code.
210.8    Subd. 2. Impact on housing cost; agency determination. An agency must determine
210.9if implementation of a proposed rule, or any portion of a proposed rule, will, on average,
210.10increase the cost of residential construction or remodeling by $1,000 or more per unit. The
210.11agency must make this determination before the close of the hearing record, or before the
210.12agency submits the record to the administrative law judge if there is no hearing. The
210.13administrative law judge must review and approve or disapprove an agency's determination
210.14under this subdivision.
210.15    Subd. 3. Notice to legislature; legislative approval. (a) If the agency determines that
210.16the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision
210.172, or if the administrative law judge disapproves the agency's determination that the impact
210.18does not meet or exceed that threshold, the agency must notify, in writing, the chairs and
210.19ranking minority members of the policy committees of the house of representatives and the
210.20senate with jurisdiction over the subject matter of the proposed rule within ten days of the
210.21determination or disapproval.
210.22(b) If a committee of either the house of representatives or senate with jurisdiction over
210.23the subject matter of the proposed rule votes to advise an agency that the rule should not
210.24be adopted as proposed, the agency may not adopt the rule unless the rule is approved by
210.25a law enacted after the vote of the committee. Section 14.126, subdivision 2, applies to a
210.26vote of a committee under this subdivision.
210.27    Subd. 4. Severability. If the agency or an administrative law judge determines that part
210.28of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a
210.29severable portion of the proposed rule does not meet or exceed that threshold, the agency
210.30may proceed to adopt the severable portions of the proposed rule regardless of whether a
210.31legislative committee vote is conducted under subdivision 3.
210.32EFFECTIVE DATE.This section is effective August 1, 2017, and applies to
210.33administrative rules proposed on or after that date.

211.1    Sec. 2. Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special
211.2Session chapter 1, article 7, section 1, and Laws 2016, chapter 189, article 7, section 42, is
211.3amended to read:
211.4    Sec. 13. EFFECTIVE DATE.
211.5    Sections 1 to 3 and 6 to 11 are effective July 1, 2017 2036. Sections 4, 5, and 12 are
211.6effective July 1, 2014.

211.7    Sec. 3. AGENCY ACTIVITY AND EXPENDITURE REPORTS.
211.8(a) The commissioners of employment and economic development, housing finance,
211.9labor and industry, and commerce, as well as the Public Utilities Commission, must each
211.10submit a report, as described in paragraph (b), to the chairs and ranking minority members
211.11of the house of representatives and senate committees and divisions with jurisdiction over
211.12their budget appropriations by October 15, 2018.
211.13(b) The reports must include:
211.14(1) the number of employees in each operational division and descriptions of the work
211.15of each employee;
211.16(2) a description of the responsibilities that fall under each operational division;
211.17(3) a detailed list of the source of all revenue, including any fees, taxes, or other revenues
211.18collected, as well as details of base budgets, including all prior appropriation riders;
211.19(4) how much of each budgetary division appropriation passes through as grants, as well
211.20as the costs related to each grant program;
211.21(5) a detailed description of the costs related to each budgetary division, as well as the
211.22statutory authority under which those costs are allocated; and
211.23(6) the statutory authority for all expenditures."
211.24Delete the title and insert:
211.25"A bill for an act
211.26relating to state government; appropriating money for jobs and economic
211.27development; appropriating money for the Department of Employment and
211.28Economic Development, Housing Finance Agency, Department of Labor and
211.29Industry, Bureau of Mediation Services, Workers' Compensation Court of Appeals,
211.30Department of Commerce, Public Utilities Commission, and Public Facilities
211.31Authority; making policy and housekeeping changes to labor and industry
211.32provisions; making policy changes to employment, economic development, and
211.33workforce development provisions; making policy changes to the Department of
211.34Iron Range Resources and Rehabilitation; making policy, housekeeping, and
211.35technical changes regarding unemployment insurance; making changes to
212.1commerce, telecommunications, and energy policy; making other housing and
212.2miscellaneous policy changes; modifying fees; modifying rulemaking procedures;
212.3modifying criminal penalties; requiring reports;amending Minnesota Statutes
212.42016, sections 3.732, subdivision 1; 3.736, subdivision 3; 3.8851, subdivision 1;
212.515.01; 15.38, subdivision 7; 15A.0815, subdivision 3; 16B.323; 43A.02, subdivision <