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SF 2356

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 06/21/2017 11:31am

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Current Version - 1st Engrossment

A bill for an act
relating to state government; providing supplemental appropriations for the Office
of Higher Education, the Board of Trustees of the Minnesota State Colleges and
Universities, the Board of Regents of the University of Minnesota; jobs, economic
development, labor, commerce and housing finance; state government and
veterans; public safety and corrections; transportation; agriculture, environment,
natural resources and clean water; early childhood education; kindergarten
through grade 12; community and adult education including general education;
education excellence; special education; education facilities; nutrition; state
education agencies; health and human services; making certain appropriations
adjustments; modifying disposition of certain revenues; requiring studies and
reports; providing rulemaking authority; amending Minnesota Statutes 2014,
sections 13.321, by adding a subdivision; 13.3805, by adding a subdivision;
13.3806, subdivision 22; 13.43, subdivision 6; 16B.33, subdivisions 3, 4; 16C.10,
subdivision 6; 16C.16, subdivisions 6, 7, 11, by adding a subdivision; 16E.0466;
16E.21, subdivision 2, by adding subdivisions; 17.117, subdivisions 4, 11a;
41A.12, subdivision 2; 62D.04, subdivision 1; 62D.08, subdivision 3; 62J.495,
subdivision 4; 62J.496, subdivision 1; 62J.497, subdivisions 1, 3; 62M.02,
subdivisions 12, 14, 15, 17, by adding subdivisions; 62M.05, subdivisions 3a,
3b; 62M.06, subdivisions 2, 3; 62M.07; 62M.09, subdivision 3; 62M.11; 62Q.81,
subdivision 4; 62V.05, subdivision 2; 84.091, subdivision 2; 84.798, subdivision
2; 84.8035; 85.015, subdivision 13; 89.0385; 93.0015, subdivision 3; 93.2236;
94.3495, subdivisions 2, 3, 7; 97A.405, subdivision 2; 97A.465, by adding a
subdivision; 115B.48, by adding a subdivision; 115B.50, subdivision 3, by adding
a subdivision; 115C.13; 115E.042; 116J.396, subdivision 2; 116J.423; 116J.424;
116J.68; 116L.99; 116M.14, subdivisions 2, 4, by adding subdivisions; 116M.15,
subdivision 1; 116M.17, subdivisions 2, 4; 116M.18; 119B.13, subdivision 1;
120B.021, subdivisions 1, 3; 120B.115; 120B.232; 120B.30, subdivision 2, by
adding a subdivision; 120B.31, by adding a subdivision; 120B.35; 120B.36,
as amended; 122A.61, by adding a subdivision; 122A.63, subdivision 1;
122A.74; 123B.04, subdivision 2, by adding a subdivision; 123B.53, subdivision
5; 123B.535; 124D.091, subdivisions 2, 3; 124D.1158, subdivisions 3, 4;
124D.135, subdivision 6, by adding subdivisions; 124D.55; 124D.59, by adding
a subdivision; 124D.68, subdivision 2; 126C.05, subdivision 3; 126C.10,
subdivisions 2d, 24; 127A.45, subdivision 6a; 136A.101, subdivisions 5a, 10;
144A.75, subdivisions 5, 6, 8, by adding a subdivision; 145.4716, subdivision 2,
by adding a subdivision; 152.27, subdivision 2, by adding a subdivision; 152.33,
by adding a subdivision; 161.368; 165.14, subdivision 6; 168.017, by adding a
subdivision; 168A.29, subdivision 1; 169.345, subdivision 2; 171.06, subdivision
2; 171.07, by adding a subdivision; 174.185; 174.30, subdivisions 1, 4a, 8, by
adding a subdivision; 179A.041, by adding subdivisions; 198.03, subdivisions
2, 3; 214.075, subdivision 3; 216B.2424, subdivision 5a; 216B.62, subdivision
2, by adding a subdivision; 219.015; 219.1651; 222.49; 222.50, subdivision
6; 237.012, subdivision 1; 245.99, subdivision 2; 245A.10, subdivisions 2,
4, 8; 245C.03, by adding a subdivision; 245C.04, subdivision 1; 245C.05,
subdivisions 2b, 4, 7; 245C.08, subdivisions 2, 4; 245C.11, subdivision 3;
245C.17, subdivision 6; 245C.23, subdivision 2; 246.50, subdivision 7; 246.54,
as amended; 246B.01, subdivisions 1b, 2b; 246B.035; 246B.10; 254B.01,
subdivision 4a; 254B.03, subdivision 4; 254B.04, subdivision 2a; 254B.06,
subdivision 2, by adding a subdivision; 256B.04, subdivision 14; 256B.057, by
adding a subdivision; 256B.059, subdivisions 1, 2, 3, by adding a subdivision;
256B.06, subdivision 4; 256B.0621, subdivision 10; 256B.0622, by adding a
subdivision; 256B.0625, subdivisions 30, 34, by adding subdivisions; 256B.0924,
by adding a subdivision; 256B.0949; 256B.15, subdivisions 1, 1a, 2; 256B.4912,
by adding a subdivision; 256B.4914, subdivisions 5, 11; 256B.69, subdivision
6; 256B.761; 256D.051; 256L.01, subdivision 1a; 256L.04, subdivisions 1, 1a,
2, 7; 256L.07, subdivision 1; 256L.11, subdivision 7; 256N.26, subdivision
3; 260C.451, by adding a subdivision; 297B.01, subdivision 16; 297H.13,
subdivision 2; 299A.41, subdivisions 3, 4; 299A.55; 299D.03, subdivision
5; 327.14, subdivision 8; 353.01, subdivision 43; 360.013, by adding a
subdivision; 360.075, subdivisions 1, 2; 360.55, by adding a subdivision;
473.121, subdivision 2; 473.845, subdivision 1; 518.175, subdivision 5;
518A.34; 518A.35, subdivision 1; 518A.36; 609.3241; 626.556, subdivisions
3e, 10f; Minnesota Statutes 2015 Supplement, sections 16A.724, subdivision 2;
16C.16, subdivision 6a; 16C.19; 41A.14, subdivisions 1, 2; 41A.15, subdivision
10, by adding subdivisions; 41A.16, subdivision 1; 41A.17, subdivisions 1,
2; 41A.18, subdivision 1; 62U.04, subdivision 11; 116D.04, subdivision 2a;
116J.394; 120A.41; 120B.021, subdivision 4; 120B.31, subdivision 4; 120B.36,
subdivision 1; 122A.21, subdivision 2; 122A.415, subdivision 4; 122A.61,
subdivision 1; 123B.595, subdivision 1; 124D.231, subdivision 2; 124D.59,
subdivision 2; 124E.10, by adding a subdivision; 125A.08; 125A.11, subdivision
1; 125A.21, subdivision 3; 125A.76, subdivision 2c; 125A.79, subdivision 1;
126C.05, subdivision 1; 126C.10, subdivision 13a; 127A.47, subdivision 7;
136A.246, by adding subdivisions; 136A.87; 144.061; 144.4961, subdivisions 3,
4, 5, 6, 8, by adding a subdivision; 144A.75, subdivision 13; 174.30, subdivisions
4, 10; 222.50, subdivision 7; 245.4889, subdivision 1; 245.735, subdivisions
3, 4; 245C.08, subdivision 1; 245D.03, subdivision 1; 254B.05, subdivision
5; 256B.059, subdivision 5; 256B.0625, subdivisions 17, 17a, 18a, 20, 31,
58; 256B.441, subdivisions 30, 66; 256B.4913, subdivision 4a; 256B.4914,
subdivisions 10, 14, 15; 256B.76, subdivisions 1, 2, 4; 256B.766; 256L.01,
subdivision 5; 256L.03, subdivision 5; 256L.04, subdivision 7b; 256L.05,
subdivision 3a; 256L.06, subdivision 3; 256L.15, subdivisions 1, 2; 256M.41,
subdivision 3; 256P.06, subdivision 3; 260C.203; 260C.212, subdivisions 1,
14; 260C.215, subdivision 4; 260C.451, subdivision 6; 260C.521, subdivision
1; 518A.26, subdivision 14; 518A.39, subdivision 2; 626.556, subdivisions 2,
3c, 10b; Laws 1994, chapter 643, section 15, subdivision 8; Laws 2000, chapter
486, section 4, as amended; Laws 2011, First Special Session chapter 11, article
4, section 8; Laws 2012, chapter 263, sections 1, as amended; 2; Laws 2013,
chapter 108, article 14, section 2, subdivision 1, as amended; Laws 2014, chapter
198, article 2, section 2; Laws 2014, chapter 312, article 11, sections 10; 11; 13;
16; 18; article 12, section 6, subdivision 5, as amended; Laws 2015, chapter
71, article 8, section 24; article 14, sections 4, subdivision 3; 9; Laws 2015,
chapter 75, article 1, sections 1; 3, subdivisions 1, 2, 3; 4; 5, subdivisions 1, 2,
3; Laws 2015, chapter 77, article 1, section 3; Laws 2015, First Special Session
chapter 1, article 1, sections 3, subdivisions 5, 6, 10; 4; 6; 8, subdivisions 1, 7; 9;
Laws 2015, First Special Session chapter 3, article 1, section 27, subdivisions
2, 4, 5, 6, 7, 9; article 2, section 70, subdivisions 2, 3, 4, 5, 6, 7, 9, 11, 12,
15, 19, 21, 24, 26; article 3, section 15, subdivision 3; article 4, sections 4; 9,
subdivision 2; article 5, section 30, subdivisions 2, 3, 5; article 6, section 13,
subdivisions 2, 3, 6, 7; article 7, section 7, subdivisions 2, 3, 4; article 9, section
8, subdivisions 5, 6, 7, 9; article 10, section 3, subdivisions 2, 6, 7; article 11,
section 3, subdivisions 2, 3; article 12, section 4, subdivision 2; Laws 2015,
First Special Session chapter 4, article 1, sections 2, subdivision 4; 5; article 3,
sections 2, subdivision 4; 3, subdivision 5; article 4, section 131; proposing
coding for new law in Minnesota Statutes, chapters 13; 16C; 17; 41A; 62D; 62Q;
62V; 86B; 103F; 116J; 116L; 120B; 122A; 124D; 125B; 136A; 136F; 144; 148;
168; 168A; 198; 219; 256B; 260C; 260D; 325F; 360; 462A; 626; proposing
coding for new law as Minnesota Statutes, chapters 146C; 147F; 153B; repealing
Minnesota Statutes 2014, sections 144.058; 256B.059, subdivision 1a; 256L.04,
subdivisions 2a, 8; 256L.22; 256L.24; 256L.26; 256L.28; Minnesota Statutes
2015 Supplement, section 115B.48, subdivision 9; Laws 2015, First Special
Session chapter 1, article 1, section 2, subdivision 8.

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

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2015, chapter 69, article 1, unless otherwise specified, to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2016" and "2017" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2016, or
June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
year 2017. "The biennium" is fiscal years 2016 and 2017.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. MINNESOTA OFFICE OF HIGHER
EDUCATION

Subdivision 1.

Total Appropriations

$
-0-
$
17,570,000

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

Subd. 2.

Equity in Postsecondary Education
Grants

-0-
14,320,000

For equity in postsecondary attainment
grants under section 15. This appropriation
is available until June 30, 2020. Of this
appropriation, $100,000 may be used for
administration expenses to administer
the grant program. This is a onetime
appropriation.

Subd. 3.

Teacher Diversity Recommendation
and Report

-0-
80,000

For the teacher diversity recommendation
and report under section 19. This is a onetime
appropriation.

Subd. 4.

State Grant

-0-
1,735,000

For the state grant program under Minnesota
Statutes, section 136A.121. This is a onetime
appropriation.

Subd. 5.

Dual Credit, Parent Information

-0-
25,000

For the purpose of obtaining and providing
information under Minnesota Statutes,
section 136A.87, paragraph (b). The base for
fiscal year 2018 and later is $20,000.

Subd. 6.

Addiction Medicine Graduate
Fellowship Program

-0-
210,000

For establishing a grant program used to
support up to four physicians who are
enrolled each year in an addiction medicine
fellowship program. A grant recipient must
be enrolled in a program that trains fellows
in diagnostic interviewing, motivational
interviewing, addiction counseling,
recognition and care of common acute
withdrawal syndromes and complications,
pharmacotherapies of addictive disorders,
epidemiology and pathophysiology of
addiction, addictive disorders in special
populations, secondary interventions, use
of screening and diagnostic instruments,
inpatient care, and working within a
multidisciplinary team, and prepares doctors
to practice addiction medicine in rural and
underserved areas of the state. The base for
this program is $210,000 in fiscal year 2018
and 2019 and is zero in fiscal year 2020.

Subd. 7.

Dual Training

-0-
200,000

For making grants under Minnesota Statutes,
section 136A.246, subdivision 8a. This
appropriation is available until June 30, 2019.

Subd. 8.

Student and Employer Connection
Information System

-0-
1,000,000

For student and employer connection
information system under section 18. Up
to $100,000 of this appropriation may be
spent for administrative expenses related
to the appropriation. This is a onetime
appropriation and is available until June 30,
2019.

Sec. 3. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES

Subdivision 1.

Total Appropriations

$
-0-
$
12,018,000

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

Subd. 2.

Additional Campus Program Support

-0-
10,000,000

Only for campus programs or services that
affect students.

Subd. 3.

Principals' Leadership Institute

-0-
200,000

For a grant to the Minnesota State University
Mankato Principals' Leadership Institute
under Minnesota Statutes, section 136A.89.

Subd. 4.

Early Childhood Online Program

-0-
100,000

To develop a multicampus online program
for early childhood teacher preparation. This
is a onetime appropriation.

Subd. 5.

MnSCU Open Textbooks

-0-
100,000

(a) For programs on system campuses
that promote adoption of open textbooks.
Programs must focus on the review, creation,
and promotion of new or existing open
textbooks and on saving money for students
while meeting the academic needs of faculty.
This is a onetime appropriation.

(b) By January 15, 2017, the board shall
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over higher education regarding
the progress of the pilot programs. The
report shall include a summary of each pilot
program and the total savings expected for
students as a result of the programs.

Subd. 6.

MnSCU Open Textbook Library

-0-
100,000

To expand and promote the open textbook
library to faculty across the state. This is a
onetime appropriation.

Subd. 7.

Developmentally Delayed Student
Pilot

-0-
750,000

For the pilot program for developmentally
delayed students under section 17. The base
for fiscal year 2018 and later is $853,000.

Subd. 8.

Supplemental Instruction and Data
Reporting

-0-
768,000

For activities and reporting under Minnesota
Statutes, section 136F.33. This is a onetime
appropriation.

Sec. 4. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA

Subdivision 1.

Total Appropriation

$
-0-
$
18,100,000

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

Subd. 2.

Health Restoration

-0-
5,000,000

This appropriation is for the following
activities:

$3,000,000 is for support for faculty
physicians who teach at eight residency
program sites, including medical resident and
student training programs in the Department
of Family Medicine.

$1,000,000 is for the Mobile Dental Clinic,
in which dental students provide patient care
as part of their clinical education and training
under the supervision of faculty dentists.

$1,000,000 is for expansion of geriatric
education and family programs.

Subd. 3.

Tuition Relief

-0-
13,000,000

For undergraduate student tuition relief for
Minnesota residents. The Board of Regents
is requested not to offset the tuition relief
by increases in mandatory fees, charges, or
other assessments to the student.

Subd. 4.

Rochester Campus, Collegiate
Recovery Program

-0-
100,000

(a) To design and implement a collegiate
recovery program at its Rochester campus.
This is a onetime appropriation and is
available until June 30, 2019.

(b) The purpose of the collegiate recovery
program is to provide structured support
for students in recovery from alcohol,
chemical, or other addictive behaviors.
Program activities may include, but are not
limited to, specialized professional support
through academic, career, and financial
advising; establishment of on-campus
or residential peer support communities;
and opportunities for personal growth
through leadership development and other
community engagement activities.

(c) No later than January 15, 2020, the
Board of Regents must submit a report to
the chairs and ranking minority members of
the legislative committees with jurisdiction
over higher education finance and policy on
campus recovery program outcomes. Based
on available data, the report must describe,
in summary form, the number of students
participating in the program and the success
rate of participants, including retention and
graduation rates, and long-term recovery and
relapse rates.

Sec. 5. MNSCU TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE
COSTS.

The appropriation made by Laws 2015, chapter 69, article 1, section 3, subdivision
18, paragraph (c), for fiscal year 2017 for information technology and administrative costs
is available on the effective date of this section and until June 30, 2017.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Minnesota Statutes 2014, section 122A.74, is amended to read:


122A.74 PRINCIPALS' LEADERSHIP INSTITUTE, UNIVERSITY OF
MINNESOTA
.

Subdivision 1.

Establishment.

(a) The commissioner of education may contract
with the Minnesota State University Mankato or the regents of the University of Minnesota
to establish a Principals' Leadership Institute to provide professional development to
school principals by:

(1) creating a network of leaders in the educational and business communities to
communicate current and future trends in leadership techniques;

(2) helping to create a vision for the school that is aligned with the community
and district priorities;

(3) developing strategies to retain highly qualified teachers and ensure that diverse
student populations, including at-risk students, children with disabilities, English learners,
and gifted students, among others, have equal access to these highly qualified teachers; and

(4) providing training to analyze data using culturally competent tools.

(b) The University of Minnesota must cooperate with participating members of the
business community to provide funding and content for the institute.

(c) Participants must agree to attend the Principals' Leadership Institute for four
weeks during the academic summer.

(d) The Principals' Leadership Institute must incorporate program elements offered
by leadership programs at the University of Minnesota and program elements used by
the participating members of the business community to enhance leadership within their
businesses.

(e) The board of each school district in the state may select a principal, upon the
recommendation of the district's superintendent and based on the principal's leadership
potential, to attend the institute.

(f) The school board annually shall forward its list of recommended participants to
the commissioner by February 1. In addition, a principal may submit an application
directly to the commissioner by February 1. The commissioner shall notify the school
board, the principal candidates, and the University of Minnesota of the principals selected
to participate in the Principals' Leadership Institute each year.

Subd. 2.

Method of selection and requirements.

(a) The board of each school
district in the state may select a principal, upon the recommendation of the district's
superintendent and based on the principal's leadership potential, to attend the institute.

(b) The school board annually shall forward its list of recommended participants
to the commissioner by February 1. In addition, a principal may submit an application
directly to the commissioner by February 1. The commissioner shall notify the school
board, the principal candidates, and the University of Minnesota of the principals selected
to participate in the Principals' Leadership Institute each year.

Sec. 7.

Minnesota Statutes 2014, section 136A.101, subdivision 5a, is amended to read:


Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means
the amount of a family's contribution to a student's cost of attendance, as determined by a
federal need analysis. For dependent students, the assigned family responsibility is 96 94
percent of the parental contribution. For independent students with dependents other than
a spouse, the assigned family responsibility is 86 85 percent of the student contribution.
For independent students without dependents other than a spouse, the assigned family
responsibility is 50 49 percent of the student contribution.

Sec. 8.

Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to read:


Subd. 10.

Satisfactory academic progress.

"Satisfactory academic progress"
means satisfactory academic progress as defined under Code of Federal Regulations, title
34, sections 668.16(e), 668.32(f), and 668.34, except that a student with an intellectual
disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled
in an approved comprehensive transition and postsecondary program under that section
is subject to the institution's published satisfactory academic process standards for that
program as approved by the Office of Higher Education
.

Sec. 9.

Minnesota Statutes 2015 Supplement, section 136A.246, is amended by adding
a subdivision to read:


Subd. 8a.

Support grants.

The commissioner, from appropriations specifically
made for the purposes of this subdivision, may provide grants to school districts and
community colleges for the purpose of providing exposure and connection to teachers and
staff, students, and employers regarding industry occupational pathways and employment
with employers in the region.

Sec. 10.

Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
adding a subdivision to read:


Subd. 10.

Dual training account.

A dual training account is created in the special
revenue fund in the state treasury. The commissioner shall deposit into the account
appropriations made for the purposes of this section. Money in the account is appropriated
to the commissioner for the purposes for which it was appropriated.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 136A.246, is amended by
adding a subdivision to read:


Subd. 11.

Administration expenses.

The commissioner may expend up to five
percent of the appropriation made for the purposes of this section for administration
of this section.

Sec. 12.

Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:


136A.87 PLANNING INFORMATION FOR POSTSECONDARY
EDUCATION.

(a) The office shall make available to all residents beginning in 7th grade through
adulthood information about planning and preparing for postsecondary opportunities.
Information must be provided to all 7th grade students and their parents annually
by September 30 about planning for their postsecondary education. The office may
also provide information to high school students and their parents, to adults, and to
out-of-school youth.

(b) The office must make reasonable efforts to obtain publicly available information
about the dual credit acceptance policies of each Minnesota, Wisconsin, South Dakota,
and North Dakota public and private college and university. This information must be
shared on the office's Web site and included in the information under paragraph (a).

(c) The information provided under paragraph (a) may include the following:

(1) the need to start planning early;

(2) the availability of assistance in educational planning from educational institutions
and other organizations;

(3) suggestions for studying effectively during high school;

(4) high school courses necessary to be adequately prepared for postsecondary
education;

(5) encouragement to involve parents actively in planning for all phases of education;

(6) information about postsecondary education and training opportunities existing
in the state, their respective missions and expectations for students, their preparation
requirements, admission requirements, and student placement;

(7) ways to evaluate and select postsecondary institutions;

(8) the process of transferring credits among Minnesota postsecondary institutions
and systems;

(9) the costs of postsecondary education and the availability of financial assistance
in meeting these costs, including specific information about the Minnesota Promise;

(10) the interrelationship of assistance from student financial aid, public assistance,
and job training programs; and

(11) financial planning for postsecondary education.

EFFECTIVE DATE.

This section is effective for the 2016-2017 school year and
later.

Sec. 13.

[136A.89] PRINCIPAL LEADERSHIP INSTITUTE.

(a) The commissioner may contract with the Minnesota State University Mankato to
establish a Principals' Leadership Institute to provide licensed principals in Minnesota
with a research-based and evaluated professional development experience focused on
instructional and organizational leadership by:

(1) creating a network of educational leaders who demonstrate strong instructional
leadership, racial equity leadership, and the skills to lead for all students;

(2) advancing student achievement in school districts through the continuous
development of courageous and results-driven principal leaders;

(3) developing leaders who cultivate a school culture where every student is fully
engaged, educated, and included; and

(4) developing principal leaders who create a culture of high standards for all
students and demonstrate the ability to build teacher development so that culturally
responsive practices occur in all classrooms.

(b) Minnesota State University Mankato must partner with participating district or
charter school leadership to bridge professional development learning from the Principals'
Leadership Institute to the district at large.

(c) Participants must agree to attend all sessions of the Principals' Leadership Institute.

(d) The Principals' Leadership Institute must base the program content and
curriculum on current research-based best practices in educational leadership that lead to
accelerated achievement growth for all students.

(e) School district or charter school leadership in the state may recommend a licensed
principal for participation in the program based on the principal's leadership potential.

(f) The school board or charter school board must submit the list of recommended
participants to the Principals' Leadership Institute by July 1 each year. Principals from a
school district or charter school whose leadership is engaged in intentional work focused
on eliminating the predictable racial achievement disparities within their district or school
must receive priority selection for attending the Principals' Leadership Institute.

Sec. 14.

[136F.33] SUPPLEMENTAL AND DEVELOPMENTAL EDUCATION.

Subdivision 1.

Definitions.

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

(b) "Academic weakness" means an academic skill determined to be below college
ready according to a formalized assessment.

(c) "Corequisite" means a course or other requirement that is taken simultaneously
with a credit-bearing course for the purpose of providing targeted support.

(d) "Credit-bearing course" means a college entry-level course that meets the
requirements for a diploma, certificate, or degree.

(e) "Developmental education" means the building of foundational skills in noncredit
courses or programs to promote academic success in college-level coursework.

(f) "Gateway course" means an initial credit-bearing course in a subject.

(g) "Supplemental instruction" means a targeted support model for students with
academic weaknesses to promote academic success in credit-bearing courses.

(h) "Targeted support" means academic support, including but not limited to
tutoring and directed group study time, related to increasing a student's understanding of
a credit-bearing course.

Subd. 2.

Program requirements.

(a) The board shall develop and implement varied
research-grounded tiered approaches to supplemental instruction and developmental
education based on student academic readiness. The tiered approach must minimize the
placement of students in developmental education under subdivision 5 by providing a
supplemental instruction course structure that results in earning the equivalent of credit in
a credit-bearing course while providing targeted support to a student who:

(1) did not meet the minimum course placement criteria for a credit-bearing course;
and

(2) using multiple measures of assessment, is identified as likely to succeed in a
credit-bearing course if targeted support is provided.

(b) The board shall establish campus-specific tiered approaches including strategies
under subdivision 3 that are:

(1) focused on the skills and competencies essential for success in the math and
English college-level courses; and

(2) based on the nature of individual campus academic programming and the needs
of specific campus student populations.

(c) To facilitate the transfer of credits, the transcript record for a supplemental
instruction course must include a credit-bearing course or a designation of equivalency to
a specific credit-bearing course.

(d) The board shall make available to students on its Web site, in course catalogs, and
by other methods at the discretion of the board, the supplemental instruction, developmental
education, and corequisite courses offered at a particular college or university.

Subd. 3.

Support strategies.

(a) The board shall continuously monitor and adopt
strategies that have the potential or that have proven to increase the placement and success
of students in credit-bearing courses. If the board finds that strategies are successful at
one campus or program, the board must assess whether the strategies would be beneficial
campuswide or systemwide and, if it determines that it would, must implement the strategy
for all campus or system programs in which the strategy is predicted to be successful. The
board may discontinue the strategy for those programs where it does not prove beneficial.

(b) Consistent with subdivision 2, strategies may include, but are not limited to:

(1) replacing developmental or remedial courses, when appropriate, with corequisite
courses in which students with academic weaknesses are placed into introductory
credit-bearing courses while receiving supplemental academic instruction on the same
subject and during the same term;

(2) expanding proactive advising, including the use of early alert systems or
requiring the approval of an adviser or counselor to register for certain classes;

(3) developing meta-majors in broad academic disciplines as an alternative to
undecided majors;

(4) making available alternative mathematics curriculum, including curriculum most
relevant to the student's chosen area of study;

(5) implementing "opt-out scheduling" by automatically enrolling students in a
schedule of courses chosen by the student's department but allowing students to disenroll
from those courses if they meet with an academic adviser and cosign a change of
enrollment form; and

(6) facilitating the transfer of credits between state colleges and universities.

Subd. 4.

Assessments and advising.

(a) Common student placement assessments
must provide information identifying academic weaknesses that must be provided to the
student. A student assessed below college ready must be provided:

(1) materials designed to address identified academic weaknesses;

(2) support to prepare for and retake placement assessments;

(3) postassessment advising to assist in making informed decisions on identifying
academic weaknesses and targeting supplemental instruction options; and

(4) additional targeted support while enrolled in college-level math and English
courses.

(b) Intrusive advising must be provided to a student who participates in supplemental
instruction programs but has been unsuccessful in achieving academic success. Advising
must include career and employment options, alternative career pathways, and related
educational opportunities.

Subd. 5.

Developmental education.

(a) The board shall create a framework to
redesign developmental education to provide a student who does not meet the criteria for
inclusion in a supplemental instruction course the opportunity to complete gateway math
and English courses within one academic year. The board must provide developmental
education to a student or advise the student to enroll in adult basic education.

(b) The board shall not require a student who has successfully taken a developmental
course under section 124D.09, subdivision 10, to participate in a developmental education
course in the same subject area.

Subd. 6.

Report.

Annually by January 15, the board shall report to the chairs and
ranking minority members of the legislative committees with primary jurisdiction over
higher education finance on the goal of increasing the placement and success of students
in credit-bearing courses. The report must, at a minimum, include:

(1) the following information on board activities:

(i) strategies the board has adopted at each campus under subdivision 2, paragraph (b);

(ii) strategies that have been discontinued at each campus; and

(iii) strategies being considered for systemwide implementation; and

(2) the following information on students:

(i) the number and percent of students placed in developmental education;

(ii) the number and percent of students who complete developmental education
within one academic year;

(iii) the number and percent of students that complete gateway courses in math
and English in one academic year;

(iv) the student retention rate;

(v) time to complete a degree or certificate; and

(vi) credits earned by those completing a degree, certificate, or other program.

The report must disaggregate student data by race, ethnicity, Pell Grant eligibility,
and age and provide aggregate data.

Sec. 15. EQUITY IN EDUCATION AND JOB CONNECTION GRANT
PROGRAM.

Subdivision 1.

Grants.

(a) The commissioner of the Office of Higher Education
shall award grants to improve postsecondary attendance, completion, and retention and
the obtaining of well-paying jobs for which the postsecondary education provides training
by providing services to historically underrepresented college students. Grants must be
awarded to Minnesota state colleges and universities and private organization programs
that help the state reach the attainment goals under Minnesota Statutes, section 135A.012.
Programs must provide services targeted to make the improvements including, but not
limited to:

(1) academic and nonacademic counseling or advising;

(2) mentoring in education and career opportunities;

(3) structured tutoring;

(4) career awareness and exploration including internships and post graduation
job placements;

(5) orientation to college life;

(6) financial aid counseling;

(7) academic instruction programs in core curricular areas of mathematics and
language arts;

(8) supplemental instruction programs for college courses with high failure and
withdrawal rates; and

(9) co-requisite college course models for delivery of academic support.

(b) The office shall structure the grants for sustainability of programs funded by a
grant.

(c) To the extent there are sufficient qualified applicants, approximately 50 percent
of grant dollars must be awarded to private organization programs.

Subd. 2.

Application process.

(a) The commissioner shall develop a grant
application process. The commissioner shall attempt to support projects in a manner that
ensures that eligible students throughout the state have access to program services.

(b) The grant application must include, at a minimum, the following information:

(1) a description of the characteristics of the students to be served reflective of the
need for services listed in subdivision 1;

(2) a description of the services to be provided and a timeline for implementation
of the service activities;

(3) a description of how the services provided will foster postsecondary retention
and completion;

(4) a description of how the services will be evaluated to determine whether the
program goals were met;

(5) the history of the applicant in achieving successful improvements using the
services for which a grant is sought;

(6) the assumed cost per student of achieving successful outcomes;

(7) the effect of the grant on assisting students to obtain well-paying jobs;

(8) the proposed grant match;

(9) the organizational commitment to program sustainability; and

(10) other information as identified by the commissioner.

Grant recipients must specify both program and student outcome goals, and performance
measures for each goal.

Subd. 3.

Advisory committee.

The commissioner may establish and convene an
advisory committee to assist the commissioner in reviewing applications and advise the
commissioner on grantees and grant amounts. The members of the committee may include
representatives of postsecondary institutions, organizations providing postsecondary
academic and career services, and others deemed appropriate by the commissioner.

Subd. 4.

Outcome report.

Each grant recipient must annually submit a report to
the Office of Higher Education identifying its program and student goals and activities
implemented. A report must include, but not be limited to, information on:

(1) number of students served;

(2) course taking and grade point average of participating students;

(3) persistence and retention rates of participating students;

(4) postsecondary graduation rates of participating students;

(5) the number of students who required postsecondary academic remediation and
number of remedial courses for each of those students and in the aggregate; and

(6) jobs and wage rates of students after postsecondary graduation.

To the extent possible, the report must breakdown outcomes by Pell grant qualification,
race, and ethnicity.

Subd. 5.

Legislative report.

By January 15 of each year through 2021, the office
shall submit a report to the chairs and ranking minority members of the committees in the
house of representatives and the senate with jurisdiction over higher education finance
regarding the grant recipients and their activities. The report shall include information
about the students served, the organizations providing services, program activities,
program goals and outcomes, and program revenue sources and funding levels.

Sec. 16. STATE GRANT TUITION CAPS.

For the purposes of the state grant program under Minnesota Statutes, section
136A.121, for the fiscal year ending June 30, 2017, the tuition maximum is $5,736
for students in two-year programs and the tuition maximum is $14,186 for students in
four-year programs.

Sec. 17. STATE UNIVERSITIES; PILOT PROGRAM FOR STUDENTS WITH
INTELLECTUAL AND DEVELOPMENTAL DISABILITIES.

Subdivision 1.

Pilot program created.

(a) The Board of Trustees of the Minnesota
State Colleges and Universities must offer a pilot academic program as described in
this section for students with intellectual and developmental disabilities. The pilot is for
students entering the program in the 2017-2018 academic year. The program must be
offered at a total of four state university or college campuses that have the ability to offer
a robust program using existing facilities, including residential facilities. The campuses
selected must, to the extent possible, be located in different geographic regions of the state.

(b) In designing the pilot program, the Board of Trustees must consult with PACER
Center, Inc., the Minnesota Governor's Council on Developmental Disabilities, Arc
Minnesota, and other interested stakeholder groups. The board must also consult with
administrators of similar programs at other postsecondary institutions.

Subd. 2.

Program enrollment and admission.

The enrollment goal for each
campus's pilot program must be at least ten incoming students per academic year. Students
must be admitted based on an application process that includes an in-person interview;
an independent assessment of an applicant's interest, motivation, and likelihood of
success in the program; and any other eligibility requirements established by the board.
Upon successful completion, a student must be awarded a certificate, diploma, or other
appropriate academic credential.

Subd. 3.

Program curriculum and activities.

(a) The pilot program must provide
an inclusive, two-year full-time residential college experience for students with intellectual
and developmental disabilities. The required curriculum must include core courses
that develop life skills, financial literacy, and the ability to live independently; rigorous
academic work in a student's chosen field of study; and an internship, apprenticeship, or
other skills-based experience to prepare for meaningful employment upon completion
of the program.

(b) In addition to academic requirements, the program must offer participating
students the opportunity to engage fully in campus life. Program activities must include
but are not limited to (1) the establishment of on-campus mentoring and peer support
communities and (2) opportunities for personal growth through leadership development
and other community engagement activities.

(c) A participating campus may tailor its program curriculum and activities to
highlight academic programs, student and community life experiences, and employment
opportunities unique to that campus or the region of the state where the campus is located.

Subd. 4.

Progress reports to legislature.

The board must submit progress reports
on the pilot program required by this section to the chairs and ranking minority members
of the committees in the house of representatives and the senate with jurisdiction over
higher education finance and policy and human services finance and policy as follows:

(1) no later than January 15, 2017, a report describing plans for implementation of
the program and recruitment of applicants, including identification of anticipated program
needs that cannot be filled using existing campus or system resources; and

(2) no later than January 15, 2019, a report describing program operations, including
information on participation and expected completion rates, the feasibility of program
expansion to other state university campuses, and detail on any unmet program needs.

Sec. 18. STUDENT AND EMPLOYER CONNECTION INFORMATION
SYSTEM.

The commissioner of the Office of Higher Education shall issue a request for
proposal no later than July 1, 2016, for a Web-based job and intern-seeking software tool
that matches the needs of employers located in Minnesota with the individual profiles of
high school seniors and postsecondary students attending Minnesota high schools and
postsecondary institutions. The commissioner shall no later than October 1, 2016, select a
provider. The selected provider must have experience that demonstrates both prior similar
software development ability and implementation outcomes of successful blind matching
of job candidates and employers in furtherance of Minnesota's workforce diversity and
inclusion objectives. The commissioner shall contract for the development of the system.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 19. COMMISSIONER OF THE OFFICE OF HIGHER EDUCATION;
TEACHER DIVERSITY RECOMMENDATIONS AND REPORT.

(a) The commissioner of the Office of Higher Education, in consultation with
the Board of Teaching, the Office of Educator Licensing at the Minnesota Department
of Education, and other interested stakeholders, including councils and other local
organizations serving communities of color or American Indian communities, diverse
K-12 educator candidates and licensed educators, human resources personnel, parent
representatives, urban, suburban, and rural school district and school board associations
and organizations, teacher representatives, other organizations focused on teacher diversity
in education, public and nonpublic higher education systems and institutions, and local
ethnic-focused media, shall prepare and submit a report to the legislature recommending
how best to realize the goal of providing all students, including low-income students,
American Indian students, and students of color with improved and equitable access to
effective, more diverse teachers, consistent with state policy. The commissioner must
consider the substance of state policy and paragraphs (b) and (c) in developing the
recommendations in the report.

(b) The commissioner's recommendations must address at least the following:

(1) ensuring transparency and accountability by requiring traditional and alternative
teacher preparation programs to publicly report enrollment and completion data for
diverse teacher licensure candidates and by requiring districts to publicly report data on
the demographic disparities between enrolled students and licensed teachers employed in
the district and its school;

(2) expanding pathways to licensure by encouraging districts to develop programs
with two- and four-year institutions and with community-based organizations to recruit
and support diverse populations of enrolled students, nonlicensed district employees, and
local community members in becoming licensed teachers in the district, facilitating the
ability of diverse, nontraditional teacher candidates to change careers and pursue licensure
through community college pathways, bachelor's degree programs or postbaccalaureate
teacher preparation programs, and creating statewide campaigns to encourage diverse
candidates to become licensed teachers;

(3) providing diverse teacher licensure candidates with the preparation and skills
needed to become effective teachers, removing inequitable barriers to licensure presented
by licensure exams, and for purposes of attaining a full professional license, allowing
candidates to demonstrate their skills proficiency through alternatives to teacher skills and
college entrance exams;

(4) providing financial assistance and incentives such as scholarships, student
teaching stipends, and loan forgiveness programs to encourage diverse individuals to attain
a teaching, counseling, or social work license or advanced degree, otherwise improve their
professional practice, or become school administrators, and using a hiring bonus to recruit
more diverse teachers into a district or school; and

(5) supporting induction and retention programs by funding teacher residency and
mentoring programs that support the retention and professional development of diverse
teachers and focusing teachers' professional development opportunities on cultural fluency
and competency.

(c) The commissioner must include in the report, as appropriate, any
recommendations for amendments to the following statutes and any related statutes:

(1) the world's best work force under Minnesota Statutes, section 120B.11;

(2) regional centers of excellence under Minnesota Statutes, section 120B.115;

(3) Board of Teaching duties under Minnesota Statutes, section 122A.09,
subdivisions 4 and 4a;

(4) teacher continuing or employment contracts and peer review and mentorship
under Minnesota Statutes, sections 122A.40 and 122A.41;

(5) the alternative teacher professional pay system agreement under Minnesota
Statutes, section 122A.414, subdivision 2;

(6) staff development programs under Minnesota Statutes, section 122A.60;

(7) American Indian grants, scholarships, and loan programs under Minnesota
Statutes, section 122A.63;

(8) teacher residency programs under Minnesota Statutes, section 122A.68;

(9) the ability of the Board of Teaching to arrange for student teachers under
Minnesota Statutes, section 122A.69;

(10) the ability of school districts to develop mentoring programs for teachers of
color under Minnesota Statutes, section 122A.70;

(11) the legislature's support of research on the effectiveness of teacher preparation
programs under Minnesota Statutes, section 122A.71;

(12) teacher centers to help teachers learn, experiment, assess, and improve to meet
students' needs under Minnesota Statutes, section 122A.72; and

(13) the teacher shortage loan forgiveness program under Minnesota Statutes,
section 136A.1791.

(d) The commissioner must submit the report to the chairs and ranking minority
members of the committees in the house of representatives and the senate with jurisdiction
over education by February 1, 2017.

ARTICLE 2

ECONOMIC DEVELOPMENT

Section 1. APPROPRIATIONS.

The sums shown in the columns under "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2015, First Special Session
chapter 1, article 1, or other law to the specified agencies. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figure "2017" used in this article means that the appropriations listed
under it are available for the fiscal year ending June 30, 2017.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

Subdivision 1.

Total Appropriation

$
-0-
$
34,445,000
Appropriations by Fund
General
-0-
33,445,000
Workforce
Development
-0-
1,000,000

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

Subd. 2.

Business and Community
Development

-0-
30,595,000

$2,000,000 in fiscal year 2017 is for the
redevelopment program under Minnesota
Statutes, section 116J.571. This is a onetime
appropriation.


$1,220,000 in fiscal year 2017 is for a
grant to the Duluth North Shore Sanitary
District to retire debt of the district in order
to bring the district's monthly wastewater
rates in line with those of similarly situated
facilities across the state. This is a onetime
appropriation.

$275,000 in fiscal year 2017 is for a grant to
the Community and Economic Development
Associates (CEDA) for an economic
development study and analysis of the effects
of current and projected economic growth
in southeast Minnesota. This is a onetime
appropriation and is available until June 30,
2019.

$300,000 in fiscal year 2017 is for expansion
of business assistance services provided by
business development specialists located in
the Northwest Region, Northeast Region,
West Central Region, Southwest Region,
Southeast Region, and Twin Cites Metro
Region offices established throughout the
state. Funds under this section may be used
to provide services including, but not limited
to, business start-ups; expansion; location or
relocation; finance; regulatory and permitting
assistance; and other services determined
by the commissioner. The commissioner
may also use funds under this section to
increase the number of business development
specialists in each region of the state,
increase and expand the services provided
through each regional office, and publicize
the services available and provide outreach
to communities in each region regarding
services and assistance available through the
business development specialist program.
This is a onetime appropriation.

$50,000 in fiscal year 2017 is to enhance
the outreach and public awareness activities
of the Bureau of Small Business under
Minnesota Statutes, section 116J.68. This is
a onetime appropriation.

$750,000 in fiscal year 2017 is for a grant to
Enterprise Minnesota, Inc. Of this amount,
$375,000 is for the small business growth
acceleration program under Minnesota
Statutes, section 116O.115, and $375,000
is for operations under Minnesota Statutes,
sections 116O.01 to 116O.061. This is a
onetime appropriation.

$2,000,000 in fiscal year 2017 is for
the Minnesota Initiative program under
Minnesota Statutes, section 116M.18.
Of this amount, up to five percent is for
administration, outreach, and monitoring of
the program. This is a onetime appropriation.

$500,000 in fiscal year 2017 is for making
capacity building grants under Minnesota
Statutes, section 116M.18, subdivision 9.
This is a onetime appropriation.

$3,500,000 in fiscal year 2017 is for grants to
initiative foundations to provide financing
for business startups, expansions, and
maintenance; and for business ownership
transition and succession. This is a onetime
appropriation. Of the amount appropriated:

(1) $500,000 is for a grant to the Southwest
Initiative Foundation;

(2) $500,000 is for a grant to the West Central
Initiative Foundation;

(3) $500,000 is for a grant to the Southern
Minnesota Initiative Foundation;

(4) $500,000 is for a grant to the Northwest
Minnesota Foundation;

(5) $500,000 is for a grant to the Initiative
Foundation;

(6) $500,000 is for a grant to the Northland
Foundation; and

(7) $500,000 is for a grant to the Minnesota
Initiative Board under Minnesota Statutes,
chapter 116M. Funds available under this
clause must be allocated as follows:

(i) 50 percent of the funds must be allocated
for projects in the counties of Dakota,
Ramsey, and Washington; and

(ii) 50 percent of the funds must be allocated
for projects in the counties of Anoka, Carver,
Hennepin, and Scott.

$600,000 in fiscal year 2017 is for a grant to
a city of the second class that is designated
as an economically depressed area by the
United States Department of Commerce for
economic development, redevelopment, and
job creation programs and projects. This is a
onetime appropriation and is available until
June 30, 2019.

$5,500,000 in fiscal year 2017 is for a grant to
the Minnesota Film and TV Board for the film
production jobs program under Minnesota
Statutes, section 116U.26. This appropriation
is in addition to the appropriation in Laws
2015, First Special Session chapter 1,
article 1, section 2, subdivision 2. This is
a onetime appropriation. Of this amount,
$250,000 is for grants to Hmong-American
filmmakers that have directed or produced
prior feature-length stories to produce
projects within Minnesota.

$150,000 in fiscal year 2017 is for a grant
to the city of Edina to conduct a feasibility
study of constructing Grandview Green over
Highway 100 in Edina. This is a onetime
appropriation.

$10,000,000 in fiscal year 2017 is for deposit
in the Minnesota 21st century fund. This is a
onetime appropriation.

$400,000 in fiscal year 2017 is for grants to
small business development centers under
Minnesota Statutes, section 116J.68. Funds
made available under this section may be
used to match funds under the federal Small
Business Development Center (SBDC)
program under United States Code, title 15,
section 648, provide consulting and technical
services, or to build additional SBDC
network capacity to serve entrepreneurs
and small businesses. The commissioner
shall allocate funds equally among the nine
regional centers and lead center. This is a
onetime appropriation.

$3,100,000 in fiscal year 2017 is for a transfer
to the Board of Regents of the University
of Minnesota for academic and applied
research through MnDRIVE at the Natural
Resources Research Institute to develop new
technologies that enhance the long-term
viability of the Minnesota mining industry.
The research must be done in consultation
with the Mineral Coordinating Committee
established by Minnesota Statutes, section
93.0015. This is a onetime transfer.

$250,000 in fiscal year 2017 is for a grant to
the city of Kelliher for water infrastructure
upgrades. This is a onetime appropriation
and is available until June 30, 2019.

Subd. 3.

Workforce Development

-0-
2,300,000
Appropriations by Fund
2016
2017
General
-0-
1,300,000
Workforce
Development
-0-
1,000,000

$100,000 in fiscal year 2017 is for a
grant to Ramsey County for a study of
the workforce-based mass transit needs
of the north metro area. Ramsey County
may work in collaboration with officials in
other counties including, but not limited
to, Anoka and Washington Counties in
producing the study. By December 1, 2017,
Ramsey County must submit the report to
the commissioner. By January 1, 2018, the
commissioner must report to the chairs of the
standing committees of the legislature having
jurisdiction over workforce development
and transportation. This is a onetime
appropriation and is available until June 30,
2018.

$500,000 in fiscal year 2017 is from the
workforce development fund for rural career
counseling coordinators in the workforce
service areas and for the purposes specified
in Minnesota Statutes, section 116L.667.
This appropriation is for increases to existing
applicants who were awarded grants in fiscal
years 2016 and 2017.

$500,000 in fiscal year 2017 is for a grant to
Occupational Development Corporation, Inc.
in the city of Buhl to provide training and
employment opportunities for people with
disabilities and disadvantaged workers. This
is a onetime appropriation.

$400,000 in fiscal year 2017 is for a grant
to Northern Bedrock Historic Preservation
Corps for the pathway to the preservation
trades program for recruitment of corps
members, engagement of technical
specialists, development of a certificate
program, and skill development in historic
preservation for youth ages 18 to 25. This is
a onetime appropriation.

$300,000 in fiscal year 2017 is for the
"Getting to Work" grant program. This is a
onetime appropriation and is available until
June 30, 2019.

$500,000 in fiscal year 2017 is from the
workforce development fund for a grant to
the North East Higher Education District to
purchase equipment for training programs
due to increased demand for job training
under the state dislocated worker program.
This is a onetime appropriation and is
available until June 30, 2018.

Subd. 4.

Vocational rehabilitation

-0-
1,550,000

$800,000 in fiscal year 2017 is for grants
to centers for independent living under
Minnesota Statutes, section 268A.11. This
is a onetime appropriation and is in addition
to the appropriation in Laws 2015, First
Special Session chapter 1, article 1, section
2, subdivision 6.

$750,000 in fiscal year 2017 is for grants
to day training and habilitation providers
to provide innovative employment options
and to advance community integration for
persons with disabilities as required under
the Minnesota Olmstead Plan. Of this
amount, $250,000 is for a pilot program
for home-based, technology-enhanced
monitoring of persons with disabilities. This
is a onetime appropriation and is available
until June 30, 2018.

Sec. 3. DEPARTMENT OF LABOR AND
INDUSTRY

$
-0-
$
350,000

$250,000 in fiscal year 2017 is from
the workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178. This amount is added
to the base appropriation for this purpose.

$100,000 in fiscal year 2017 is to provide
outreach and education concerning
requirements under state or federal law
governing removal of architectural barriers
that limit access to public accommodations
by persons with disabilities and resources
that are available to comply with
those requirements. This is a onetime
appropriation.

Sec. 4. EXPLORE MINNESOTA TOURISM

$
-0-
$
1,250,000

$300,000 in fiscal year 2017 is for a grant to
the Mille Lacs Tourism Council to enhance
marketing activities related to tourism
promotion in the Mille Lacs Lake area. This
is a onetime appropriation.

$950,000 in fiscal year 2017 is to establish a
pilot project to assist in funding and securing
major events benefiting communities
throughout the state. The pilot project must
measure the economic impact of visitors on
state and local economies, increased lodging
and nonlodging sales taxes in addition
to visitor spending, and increased media
awareness of the state as an event destination.
This is a onetime appropriation. Of this
amount, $100,000 is for a grant to the St.
Louis County Historical Society for a project,
in collaboration with the Erie Mining history
book project team, to research, document,
publish, preserve, and exhibit the history of
taconite mining in Minnesota.

Sec. 5. PUBLIC EMPLOYMENT
RELATIONS BOARD

$
-0-
$
525,000

$525,000 in fiscal year 2017 is for the
Public Employment Relations Board under
Minnesota Statutes, section 179A.041.
The base appropriation for this purpose is
$525,000 in fiscal year 2018 and $525,000 in
fiscal year 2019.

Sec. 6. HOUSING FINANCE AGENCY

$
-0-
$
2,500,000

$1,000,000 in fiscal year 2017 is to establish
a grant program within the housing trust fund
for the exploited families rental assistance
program. This is a onetime appropriation and
is available until June 30, 2019.

$500,000 in fiscal year 2017 is for a
competitive grant program to fund a housing
project or projects in a community or
communities: (1) that have low housing
vacancy rates; and (2) that have an education
and training center for jobs in agriculture,
farm business management, health care
fields, or other fields with anticipated
significant job growth potential. A grant or
grants must be no more than 50 percent of
the total development costs for the project.
Funds for a grant or grants made in this
section must be to a housing project or
projects that have financial and in-kind
contributions from nonagency sources
that when combined with a grant under
this section are sufficient to complete the
housing project. Funds must be used to
create new housing units either through
new construction or through acquisition and
rehabilitation of a building or buildings not
currently used for housing. If funds remain
uncommitted at the end of fiscal year 2017,
the agency may transfer the uncommitted
funds to the housing development fund and
use the funds for the economic development
and housing challenge program under
Minnesota Statutes, section 462A.33. This is
a onetime appropriation.

$1,000,000 in fiscal year 2017 is for the
Workforce and Affordable Homeownership
Development Program under Minnesota
Statutes, section 462A.38. This is a onetime
appropriation and is available until June 30,
2019.

Sec. 7. COMMERCE

$
-0-
$
1,006,000

$500,000 in fiscal year 2017 is for increased
civil insurance fraud investigation. This is a
onetime appropriation.

$290,000 in fiscal year 2017 is to fund two
positions to return abandoned property to
owners, newspaper publication, and related
technology upgrades under Minnesota
Statutes, section 345.42. This is a onetime
appropriation.

$66,000 in fiscal year 2017 is for the
commissioner of commerce to seek any
necessary federal approvals to modify the
boundaries of and reduce the number of the
state's designated geographic rating areas for
purposes of setting health plan premiums in
the individual health insurance market. This
is a onetime appropriation.

$150,000 in fiscal year 2017 is for the
commissioner of commerce to:

(1) study and create models of potential
Minnesota-tailored rate-stability mechanisms
for the individual marketplace, such as a
reinsurance program;

(2) study and create models merging the
state's individual and small group markets;
and

(3) study options for making the state's rate
review process more transparent utilizing
public information and hearings.

The commissioner may seek other private
funds or grants to supplement the costs of
the studies. The commissioner shall issue
a report on the preliminary findings of the
studies to the chairs and ranking minority
members of the committees in the house
of representatives and the senate with
jurisdiction over health and marketplace
premiums by January 15, 2017.

Sec. 8.

Laws 2015, First Special Session chapter 1, article 1, section 4, is amended to
read:


Sec. 4. EXPLORE MINNESOTA TOURISM

$
14,118,000
$
14,248,000

(a) To develop maximum private sector
involvement in tourism, $500,000 in fiscal
year 2016 and $500,000 in fiscal year 2017
must be matched by Explore Minnesota
Tourism from nonstate sources. Each $1 of
state incentive must be matched with $6 of
private sector funding. Cash match is defined
as revenue to the state or documented cash
expenditures directly expended to support
Explore Minnesota Tourism programs. Up
to one-half of the private sector contribution
may be in-kind or soft match. The incentive
in fiscal year 2016 shall be based on fiscal
year 2015 private sector contributions. The
incentive in fiscal year 2017 shall be based on
fiscal year 2016 private sector contributions.
This incentive is ongoing. Of this amount,
$100,000 is for a grant to the Northern Lights
International Music festival.

(b) Funding for the marketing grants is
available either year of the biennium.
Unexpended grant funds from the first year
are available in the second year.

(c) $30,000 in fiscal year 2016 is for Mille
Lacs Lake tourism promotion. This is a
onetime appropriation.

Sec. 9.

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


Sec. 6. BUREAU OF MEDIATION
SERVICES

$
2,208,000
$
2,234,000
2,497,000

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

(b) $125,000 each year in fiscal year 2016
is for purposes of the Public Employment
Relations Board under Minnesota Statutes,
section 179A.041. This is a onetime
appropriation.

(c) $256,000 each year is in fiscal year
2016 and $394,000 in fiscal year 2017 are

for the Office of Collaboration and Dispute
Resolution under Minnesota Statutes, section
179.90. The base appropriation for this
purpose is $394,000 in fiscal year 2018 and
$394,000 in fiscal year 2019.
Of this amount,
$160,000 each year is for grants under
Minnesota Statutes, section 179.91, and
$96,000 each year is for intergovernmental
and public policy collaboration and operation
of the office.

(d) $250,000 is to complete the Case
Management System-Database Project Phase
II. This is a onetime appropriation.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 10.

Minnesota Statutes 2014, section 13.43, subdivision 6, is amended to read:


Subd. 6.

Access by labor organizations, the Bureau of Mediation Services,
and the Public Employment Relations Board
.

Personnel data may be disseminated to
labor organizations and the Public Employment Relations Board to the extent that the
responsible authority determines that the dissemination is necessary to conduct elections,
notify employees of fair share fee assessments, and implement the provisions of chapters
179 and 179A. Personnel data shall be disseminated to labor organizations, the Public
Employment Relations Board,
and to the Bureau of Mediation Services to the extent the
dissemination is ordered or authorized by the commissioner of the Bureau of Mediation
Services, or the Public Employment Relations Board or its designee.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 11.

[13.7909] PUBLIC EMPLOYMENT RELATIONS BOARD DATA.

Subdivision 1.

Definition.

For purposes of this section, "board" means the Public
Employment Relations Board.

Subd. 2.

Not public data.

(a) Except as provided in this subdivision, all data
maintained by the board about a charge or complaint of unfair labor practices and
appeals of determinations of the commissioner under section 179A.12, subdivision 11,
are classified as protected nonpublic data or confidential data, and become public when
admitted into evidence at a hearing conducted pursuant to section 179A.13. The data may
be subject to a protective order as determined by the board or a hearing officer.

(b) Notwithstanding sections 13.43 and 181.932, the following data are public:

(1) the filing date of unfair labor practice charges;

(2) the status of unfair labor practice charges as an original or amended charge;

(3) the names and job classifications of charging parties and charged parties;

(4) the provisions of law alleged to have been violated in unfair labor practice charges;

(5) the complaint issued by the board and all data in the complaint;

(6) the full and complete record of an evidentiary hearing before a hearing officer,
including the hearing transcript, exhibits admitted into evidence, and posthearing briefs,
unless subject to a protective order;

(7) recommended decisions and orders of hearing officers pursuant to section
179A.13, subdivision 1, paragraph (i);

(8) exceptions to the hearing officer's recommended decision and order filed with the
board pursuant to section 179A.13, subdivision 1, paragraph (k);

(9) briefs filed with the board; and

(10) decisions and orders issued by the board.

(c) Notwithstanding paragraph (a), individuals have access to their own statements
provided to the board under paragraph (a).

(d) The board may make any data classified as protected nonpublic or confidential
pursuant to this subdivision accessible to any person or party if the access will aid the
implementation of chapters 179 and 179A or ensure due process protection of the parties.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 12.

Minnesota Statutes 2014, section 116J.423, is amended to read:


116J.423 MINNESOTA MINERALS 21ST CENTURY FUND.

Subdivision 1.

Created.

The Minnesota minerals 21st century fund is created
as a separate account in the treasury. Money in the account is appropriated to the
commissioner of employment and economic development for the purposes of this section.
All money earned by the account, loan repayments of principal and interest, and earnings
on investments must be credited to the account. For the purpose of this section, "fund"
means the Minnesota minerals 21st century fund. The commissioner shall operate the
account as a revolving account.

Subd. 2.

Use of fund.

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

Subd. 2a.

Grants authorized.

Notwithstanding subdivision 2, the commissioner
may use money in the fund to make grants to a municipality or county, or to a county
regional rail authority as appropriate, for public infrastructure needed to support an
eligible project under this section. Grant money may be used by the municipality, county,
or regional rail authority to acquire right-of-way and mitigate loss of wetlands and runoff
of storm water; to predesign, design, construct, and equip roads and rail lines; and, in
cooperation with municipal utilities, to predesign, design, construct, and equip natural
gas pipelines, electric infrastructure, water supply systems, and wastewater collection and
treatment systems. Grants made under this subdivision are available until expended.

Subd. 3.

Requirements prior to committing funds.

The commissioner, prior to
making a commitment for a loan or equity investment must, at a minimum, conduct due
diligence research regarding the proposed loan or equity investment, including contracting
with professionals as needed to assist in the due diligence.

Subd. 4.

Requirements for fund disbursements.

The commissioner may make
conditional commitments for loans or equity investments but disbursements of funds
pursuant to a commitment may not be made until commitments for the remainder of a
project's funding are made that are satisfactory to the commissioner and disbursements
made from the other commitments sufficient to protect the interests of the state in its
loan or investment.

Subd. 5.

Company contribution.

The commissioner may provide loans or equity
investments that match, in a proportion determined by the commissioner, an investment
made by the owner of a facility.

Sec. 13.

Minnesota Statutes 2014, section 116J.424, is amended to read:


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

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

Sec. 14.

Minnesota Statutes 2014, section 116J.68, is amended to read:


116J.68 BUREAU OF SMALL BUSINESS.

Subdivision 1.

Generally.

The Bureau of Small Business within the business
assistance center shall serve as a clearinghouse, technical assistance center, and referral
service for information and other assistance needed by small businesses including small
targeted group businesses and small businesses located in an economically disadvantaged
area.

Subd. 2.

Duties.

The bureau shall:

(1) provide information and assistance with respect to all aspects of business
planning, business finance, and business management related to the start-up, operation, or
expansion of a small business in Minnesota;

(2) refer persons interested in the start-up, operation, or expansion of a small
business in Minnesota to assistance programs sponsored by federal agencies, state
agencies, educational institutions, chambers of commerce, civic organizations, community
development groups, private industry associations, and other organizations;

(3) plan, develop, and implement a master file of information on small business
assistance programs of federal, state, and local governments, and other public and private
organizations so as to provide comprehensive, timely information to the bureau's clients;

(4) employ staff with adequate and appropriate skills and education and training for
the delivery of information and assistance;

(5) seek out and utilize, to the extent practicable, contributed expertise and services
of federal, state, and local governments, educational institutions, and other public and
private organizations;

(6) maintain a close and continued relationship with the director of the procurement
program within the Department of Administration so as to facilitate the department's
duties and responsibilities under sections 16C.16 to 16C.19 relating to the small targeted
group business and economically disadvantaged business program of the state;

(7) develop an information system which will enable the commissioner and other
state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
business development and growth in the state. All executive branch agencies of state
government and the secretary of state shall to the extent practicable, assist the bureau in
the development and implementation of the information system;

(8) establish and maintain a toll-free telephone number, e-mail account, and other
electronic contact mediums determined by the commissioner
so that all small business
persons anywhere in the state can call may contact the bureau office for assistance.
An outreach program shall be established to make the existence of the bureau and the
assistance and services the bureau may provide to small businesses
well known to its
potential clientele throughout the state. If the small business person requires a referral to
another provider the bureau may use the business assistance referral system established by
the Minnesota Project Outreach Corporation;

(9) conduct research and provide data as required by the state legislature;

(10) develop and publish material on all aspects of the start-up, operation, or
expansion of a small business in Minnesota;

(11) collect and disseminate information on state procurement opportunities,
including information on the procurement process;

(12) develop a public awareness program through the use of regarding state
assistance programs for small businesses, including those programs specifically for
socially disadvantaged small business persons. The commissioner may utilize print and
electronic
newsletters, personal contacts, and advertising devices as defined in section
173.02, subdivision 16, social media, other
electronic and print news media advertising
about state assistance programs for small businesses, including those programs specifically
for socially disadvantaged small business persons
, and any other means determined by
the commissioner
;

(13) enter into agreements with the federal government and other public and private
entities to serve as the statewide coordinator or host agency for the federal small business
development center program under United States Code, title 15, section 648; and

(14) assist providers in the evaluation of their programs and the assessment of
their service area needs. The bureau may establish model evaluation techniques and
performance standards for providers to use.

Sec. 15.

Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:


Subd. 2.

Board.

"Board" means the Urban Minnesota Initiative Board.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 16.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 3a.

Department.

"Department" means the Department of Employment and
Economic Development.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 17.

Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:


Subd. 4.

Low-income area.

"Low-income area" means:

(1) Minneapolis, St. Paul;

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

(3) (2) those cities in the metropolitan area, which contain two or more contiguous
census tracts
in which the average family income is less than 80 percent of the median
family income for the Twin Cities metropolitan area as of the latest report by the United
States Census Bureau
.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 18.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 4a.

Low-income person.

"Low-income person" means a person who has an
annual income, adjusted for family size, of not more than 80 percent of the area median
family income for the Twin Cities metropolitan area as of the latest report by the United
States Census Bureau.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 19.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 4b.

Metropolitan area.

"Metropolitan area" has the meaning given in section
473.121, subdivision 2.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 20.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 6.

Minority person.

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

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 21.

Minnesota Statutes 2014, section 116M.14, is amended by adding a
subdivision to read:


Subd. 7.

Program.

"Program" means the Minnesota Initiative program created
by this chapter.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 22.

Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:


Subdivision 1.

Creation; membership Membership.

The Urban Minnesota
Initiative Board is created and consists of the commissioner of employment and economic
development, the chair of the Metropolitan Council, and eight 12 members from the general
public appointed by the governor. Six Nine of the public members must be representatives
from minority business enterprises. No more than four six of the public members may be of
one gender. Appointments must ensure balanced geographic representation. At least half
of the public members must have experience working to address racial income disparities.
All public members must be experienced in business or economic development.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 23.

Minnesota Statutes 2014, section 116M.17, subdivision 2, is amended to read:


Subd. 2.

Technical assistance.

The board through the department, shall provide
technical assistance and development information services to state agencies, regional
agencies, special districts, local governments, and the public, with special emphasis on
minority communities
informational outreach about the program to lenders, nonprofit
corporations, and low-income and minority communities throughout the state that support
the development of business enterprises and entrepreneurs
.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 24.

Minnesota Statutes 2014, section 116M.17, subdivision 4, is amended to read:


Subd. 4.

Reports.

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

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 25.

Minnesota Statutes 2014, section 116M.18, is amended to read:


116M.18 URBAN CHALLENGE GRANTS MINNESOTA INITIATIVE
PROGRAM.

Subdivision 1.

Establishment.

The Minnesota Initiative program is established to
award grants to nonprofit corporations to fund loans to businesses owned by minority or
low-income persons or women or veterans.

Subd. 1a.

Statewide loans.

To the extent there is sufficient eligible demand,
loans shall be made so that an approximately equal dollar amount of loans are made to
businesses in the metropolitan area as in the nonmetropolitan area. If funds remain after
the ninth month of the fiscal year, those funds shall revert to the general loan pool and may
be lent in any part of the state.

Subdivision 1 Subd. 1b.

Eligibility rules Grants.

The board shall make urban
challenge
grants for use in low-income areas to nonprofit corporations to fund loans to
businesses owned by minority or low-income persons or women or veterans
to encourage
private investment, to provide jobs for minority and low-income persons and others in
low-income areas
, to create and strengthen minority business enterprises, and to promote
economic development in a low-income area. The board shall adopt rules to establish
criteria for determining loan eligibility.

Subd. 2.

Challenge Grant eligibility; nonprofit corporation.

(a) The board
may enter into agreements with nonprofit corporations to fund and guarantee loans the
nonprofit corporation makes in low-income areas under subdivision 4. A corporation
must demonstrate that
to businesses owned by minority or low-income persons or
women or veterans. The board shall evaluate applications from nonprofit corporations.
In evaluating applications, the board must consider, among other things, whether the
nonprofit corporation
:

(1) its has a board of directors that includes citizens experienced in business
and community
development, minority business enterprises, addressing racial income
disparities,
and creating jobs in low-income areas for low-income and minority persons;

(2) it has the technical skills to analyze projects;

(3) it is familiar with other available public and private funding sources and
economic development programs;

(4) it can initiate and implement economic development projects;

(5) it can establish and administer a revolving loan account or has operated a
revolving loan account
; and

(6) it can work with job referral networks which assist minority and other persons in
low-income areas
low-income persons; and

(7) has established relationships with minority communities.

(b) The department shall review existing agreements with nonprofit corporations
every five years and may renew or terminate the agreement based on the review. In making
its review, the department shall consider, among other criteria, the criteria in paragraph (a).

Subd. 3.

Revolving loan fund.

(a) The board shall establish a revolving loan fund to
make grants to nonprofit corporations for the purpose of making loans and loan guarantees
to new and expanding businesses in a low-income area to promote owned by minority or
low-income persons or women or veterans and to support
minority business enterprises
and job creation for minority and other persons in low-income areas low-income persons.

(b) Nonprofit corporations that receive grants from the department under the
program must establish a commissioner-certified revolving loan fund for the purpose
of making eligible loans.

(c) Eligible business enterprises include, but are not limited to, technologically
innovative industries, value-added manufacturing, and information industries. Loan
applications given preliminary approval by the nonprofit corporation must be forwarded to
the board for approval. The commissioner must give final approval for each loan or loan
guarantee
made by the nonprofit corporation. The amount of the state funds contributed to
any loan or loan guarantee may not exceed 50 percent of each loan.

Subd. 4.

Business loan criteria.

(a) The criteria in this subdivision apply to loans
made or guaranteed by nonprofit corporations under the urban challenge grant program.

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

(c) A loan or guarantee must be used for a project designed to benefit persons in
low-income areas through the creation of job or business opportunities for them
to support
a business owned by a minority or a low-income person or woman or veteran
. Priority
must be given for loans to the lowest income areas.

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

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

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

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

Subd. 4a.

Microenterprise loan.

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

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

(2) they may be made for a minimum of $1,000 $5,000 and a maximum of $25,000
$35,000; and

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

(3) (4) they do not require a match.

Subd. 5.

Revolving fund administration; rules.

(a) The board shall establish a
minimum interest rate for loans or guarantees to ensure that necessary loan administration
costs are covered.

(b) Loan repayment amounts equal to one-half of the principal and interest must be
deposited in a revolving fund created by the board for challenge grants. The remaining
amount of the loan repayment may be
paid to the department for deposit in the revolving
loan fund. Loan interest payments must be
deposited in a revolving loan fund created
by the nonprofit corporation originating the loan being repaid for further distribution,
consistent with the loan criteria specified in subdivision 4 of this section.

(c) Administrative expenses of the board and nonprofit corporations with whom
the board enters into agreements under subdivision 2, including expenses incurred by
a nonprofit corporation in providing financial, technical, managerial, and marketing
assistance to a business enterprise receiving a loan under subdivision 4, may be paid out of
the interest earned on loans and out of interest earned on money invested by the state Board
of Investment under section 116M.16, subdivision 2, as may be provided by the board.

Subd. 6.

Rules.

The board shall adopt rules to implement this section.

Subd. 6a.

Nonprofit corporation loans.

The board may make loans to a nonprofit
corporation with which it has entered into an agreement under subdivision 1 2. These
loans must be used to support a new or expanding business.
This support may include
such forms of financing as the sale of goods to the business on installment or deferred
payments, lease purchase agreements, or royalty investments in the business. The interest
rate charged by a nonprofit corporation for a loan under this subdivision must not exceed
the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the
nonprofit corporation may charge a loan origination fee equal to or less than one percent
of the loan value. The nonprofit corporation may retain the amount of the origination fee.
The nonprofit corporation must provide at least an equal match to the loan received by the
board. The maximum loan available to the nonprofit corporation under this subdivision is
$50,000. Loans made to the nonprofit corporation under this subdivision may be made
without interest. Repayments made by the nonprofit corporation must be deposited in the
revolving fund created for urban initiative program grants.

Subd. 7.

Cooperation.

A nonprofit corporation that receives an urban challenge a
program
grant shall cooperate with other organizations, including but not limited to,
community development corporations, community action agencies, and the Minnesota
small business development centers.

Subd. 8.

Reporting requirements.

A nonprofit corporation that receives a
challenge program grant shall:

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

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

Subd. 9.

Capacity building grants.

The department may make grants to nonprofit
corporations for the purpose of building their capacity to meet the eligibility criteria for
the grant program under subdivision 2, or in applying for the Department of Employment
and Economic Development's business development competitive grant program. Funding
priority must be given to those applicants that can demonstrate that they have established
relationships with minority communities and have provided small business-related
services primarily to low-income and minority business enterprises.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 26.

Minnesota Statutes 2014, section 179A.041, is amended by adding a
subdivision to read:


Subd. 10.

Open meetings.

Chapter 13D does not apply to meetings of the board
when it is deliberating on the merits of unfair labor practice charges under sections
179.11, 179.12, and 179A.13; reviewing a recommended decision and order of a hearing
officer under section 179A.13; reviewing decisions of the commissioner of the Bureau of
Mediation Services relating to unfair labor practices under section 179A.12, subdivision
11; or exercising its hiring authority under section 179A.041.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 27.

Minnesota Statutes 2014, section 179A.041, is amended by adding a
subdivision to read:


Subd. 11.

Report.

The board shall prepare and submit a report to the governor
and the chairs and ranking minority members of the committees with jurisdiction over
the board by November 15, 2017. The report shall summarize the nature, number, and
resolution of charges filed with the board. The report shall cover the period of July
1, 2016, through June 30, 2017.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 28.

[462A.38] WORKFORCE AND AFFORDABLE HOMEOWNERSHIP
DEVELOPMENT PROGRAM.

Subdivision 1.

Establishment.

A workforce and affordable homeownership
development program is established to award homeownership development grants
to nonprofit organizations, cooperatives created under chapter 308A or 308B, and
community land trusts created for the purposes outlined in section 462A.31, subdivision
1, for development of workforce and affordable homeownership projects. The purpose
of the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.

Subd. 2.

Use of funds.

(a) Grant funds awarded under this program may be used for:

(1) development costs;

(2) rehabilitation;

(3) land development; and

(4) residential housing, including storm shelters and related community facilities.

(b) A project funded through the grant program shall serve households that meet the
income limits as provided in section 462A.33, subdivision 5, unless a project is intended
for the purpose outlined in section 462A.02, subdivision 6.

Subd. 3.

Application.

The commissioner shall develop forms and procedures for
soliciting and reviewing applications for grants under this section. The commissioner shall
consult with interested stakeholders when developing the guidelines and procedures for
the program. In making grants, the commissioner shall establish semiannual application
deadlines in which grants will be authorized from all or part of the available appropriations.

Subd. 4.

Awarding grants.

Among comparable proposals, preference must be
given to proposals that include contributions from nonstate resources for the greatest
portion of the total development cost.

Subd. 5.

Statewide program.

The agency shall attempt to make grants in
approximately equal amounts to applicants outside and within the metropolitan area.

Subd. 6.

Report.

Beginning January 15, 2018, the commissioner must annually
submit a report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over housing and workforce development
specifying the projects that received grants under this section and the specific purposes for
which the grant funds were used.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 29.

Minnesota Statutes 2014, section 473.121, subdivision 2, is amended to read:


Subd. 2.

Metropolitan area or area.

"Metropolitan area" or "area" means the area
over which the Metropolitan Council has jurisdiction, including only the counties of
Anoka; Carver; Dakota excluding the city cities of Northfield and Cannon Falls; Hennepin
excluding the cities of Hanover and Rockford; Ramsey; Scott excluding the city of New
Prague; and Washington.

Sec. 30. DAY TRAINING AND HABILITATION GRANT PROGRAM.

Subdivision 1.

Establishment.

The commissioner of employment and economic
development shall establish a day training and habilitation grant program in fulfillment
of the Olmstead Plan purpose of ensuring that people with disabilities have choices for
competitive, meaningful, and sustained employment in the most integrated setting.

Subd. 2.

Definitions.

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

(b) "Day training and habilitation providers" means those organizations whose
names are listed as Department of Human Services providers in the Minnesota Department
of Administration, Materials Management Division, ALP Manual, Appendix J, without
regard to whether they are listed as approved vendors with the Minnesota Department
of Employment and Economic Development, Division of Rehabilitation Services as a
community rehabilitation provider, limited-use vendor, or center for independent living,
and irrespective as to whether they are accredited by CARF International.

(c) "Competitive employment" means full-time or part-time employment, with or
without support, in an integrated setting in the community that pays at least minimum
wage, as defined by the Fair Labor Standards Act, but not less than the customary wage
and level of benefits paid by the employer for the same or similar work performed by
workers without a disability.

(d) "Olmstead Plan" means Minnesota's 2013 Olmstead Plan, dated November 1,
2013, and all subsequent modifications approved by the United States District Court.

Subd. 3.

Competitive process.

The commissioner shall issue a request for proposals
to day training and habilitation providers seeking proposals to assist the Department
of Employment and Economic Development in achieving its goals as provided in the
Olmstead Plan. Grant funds shall be used to improve individual employment outcomes
by aligning programs, funding, and policies to support people with disabilities to choose,
secure, and maintain competitive employment and self-employment, including, but not
limited to, the following activities:

(1) implementing policies and initiating processes that improve the employment
outcomes of working adults with disabilities;

(2) offering incentives for innovation that increase competitive employment in
the general work force;

(3) expanding the flexibility in current funding and services to increase competitive
employment outcomes;

(4) providing evidence of partnerships with private sector businesses and public
sector employment; and

(5) submitting outcome data, required by the department, according to the
stipulations of the Olmstead Plan.

Subd. 4.

Eligibility.

Any person who has a disability as determined by the Social
Security Administration or state medical review team is eligible to receive services
provided with grant funds.

Subd. 5.

Consultation required.

The commissioner shall consult with the
governor's Workforce Development Council, the Commission of Deaf, DeafBlind, and
Hard-of-Hearing Minnesotans, the governor's Council on Developmental Disabilities, and
other governor-appointed disability councils in designing, implementing, and evaluating
the competitive grant program.

Subd. 6.

Report.

On or before February 1, 2017, and annually thereafter, the
commissioner shall report to the chairs and ranking minority members of the senate and
house of representatives committees having jurisdiction over employment and economic
development policy and finance on the amount of funds awarded and the outcomes
reported by grantees.

Sec. 31. EXPLOITED FAMILIES RENTAL ASSISTANCE PROGRAM .

Subdivision 1.

Rental assistance program.

(a) The commissioner of housing
finance shall establish a grant program within the housing trust fund to serve families
from emerging communities at risk of being homeless and who have been victims of
gender-based violence, including, but not limited to domestic violence, sexual assault,
trafficking, international abusive marriage, or forced marriage. For the purposes of this
section the term "gender-based violence" is defined as violence that is directed against a
woman because she is a woman or that affects women disproportionately; and the term
"emerging communities" is defined as refugee and immigrant communities who are less
established, who are unfamiliar with mainstream government services, or who have
limited English proficiency. The commissioner shall award grants to organizations that
can provide linguistically and culturally appropriate services and that have the capacity to
serve families who have experienced gender-based violence from emerging communities.

(b) The program must:

(1) provide rental assistance to individuals with a minor child at risk of being
homeless and who have been victims of domestic violence, sexual assault, trafficking,
international abusive marriage, or forced marriage;

(2) require the participants to pay at least 30 percent of the participant's income
toward the rent;

(3) allow the families to choose their own housing, including single-family homes,
townhomes, and apartments;

(4) give priority to large families who experience barriers in accessing housing,
including having limited English proficiency, lack of positive rental history, employment
history, and financial history; and

(5) require the program participants to be employed, or actively seeking employment,
or be engaged in activities that will assist them in gaining employment.

Subd. 2.

Program evaluation.

All grant recipients must collect and make available
to the commissioner, aggregate data to assist the agency in the evaluation of the program.
The commissioner shall evaluate the program effectiveness and measure the number of
families served from emerging communities, the support services provided for families in
seeking employment and achieving economic-stability, and the employment and housing
status of the participants.

Sec. 32. "GETTING TO WORK" GRANT PROGRAM.

Subdivision 1.

Creation.

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

Subd. 2.

Qualified grantee.

A grantee must:

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

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

Subd. 3.

Program requirements.

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

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

(2) motor vehicle repair and maintenance services; or

(3) motor vehicle loans.

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

(1) financial literacy education;

(2) education on budgeting for vehicle ownership;

(3) car maintenance and repair instruction;

(4) credit counseling; or

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

(c) A program may also offer other transportation-related support services.

Subd. 4.

Application.

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

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

(2) the area to be served;

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

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

(i) automobile dealers;

(ii) automobile parts dealers;

(iii) independent local mechanics and automobile repair facilities;

(iv) banks and credit unions;

(v) employers;

(vi) employment and training agencies;

(vii) insurance companies and agents;

(viii) local workforce centers; and

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

Subd. 5.

Participant eligibility.

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

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

(2) be at least 18 years of age;

(3) have a valid driver's license;

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

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

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

Subd. 6.

Allocation of grants.

The commissioner shall allocate grants to up to 15
grantees so that, to the extent feasible, program services are available in every county of
the state.

Subd. 7.

Report to legislature.

By February 15, 2018, the commissioner shall
submit a report to the chairs of the house of representatives and senate committees with
jurisdiction over workforce and economic development on program outcomes. At a
minimum, the report must include:

(1) the total number of program participants;

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

(i) provision of a motor vehicle;

(ii) motor vehicle repair services; and

(iii) motor vehicle loan; and

(3) an analysis of the impact of the "Getting to Work" grant program on the
employment rate and wages of program participants.

Sec. 33. REVISOR'S INSTRUCTION.

In the next editions of Minnesota Statutes and Minnesota Rules, the Revisor of
Statutes shall change the term "Urban Initiative Board" to "Minnesota Initiative Board,"
"board," or similar terms as the context requires.

ARTICLE 3

AGRICULTURE

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal year indicated for
each purpose. The figures "2016" and "2017" used in this article mean that the addition
to the appropriations listed under them are available for the fiscal year ending June 30,
2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. DEPARTMENT OF AGRICULTURE

$
-0-
$
3,500,000

$350,000 the second year is for deposit
in the noxious weed and invasive plant
species assistance account established under
Minnesota Statutes, section 18.89, to be
used to implement the noxious weed grant
program under Minnesota Statutes, section
18.90. This is a onetime appropriation.

$1,000,000 the second year is for the tractor
rollover protection pilot program under
Minnesota Statutes, section 17.119. This is a
onetime appropriation.

$300,000 the second year is for the pollinator
investment grant program under Minnesota
Statutes, section 17.1195. This is a onetime
appropriation.

$200,000 the second year is for a grant to the
city of Duluth to design and construct the
Deep Winter Greenhouse. This is a onetime
appropriation.

$500,000 the second year is to administer
the industrial hemp pilot program under
Minnesota Statutes, section 18K.09. This is
a onetime appropriation.

$150,000 the second year is for grants of up
to $750 to farmers who demonstrate financial
hardship due to the three-year transition
period required under federal law for organic
certification. This is a onetime appropriation
and is in addition to funds appropriated to the
commissioner of agriculture and available for
organic certification cost-share grants under
Laws 2015, First Special Session chapter
4, article 1, section 2, subdivision 3. The
commissioner may award both a transition
grant and a certification cost-share grant to a
farmer in the same fiscal year.

$1,000,000 the second year is for grants
to the Board of Regents of the University
of Minnesota to fund the Forever Green
Agriculture Initiative and to protect the
state's natural resources while increasing
the efficiency, profitability, and productivity
of Minnesota farmers by incorporating
perennial and winter annual crops into
existing agricultural practices. This is a
onetime appropriation and is available until
June 30, 2019. The appropriation in Laws
2015, First Special Session chapter 2, article
2, section 3, paragraph (i), is available until
June 30, 2018.

Sec. 3.

Minnesota Statutes 2014, section 17.117, subdivision 4, is amended to read:


Subd. 4.

Definitions.

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

(b) "Agricultural and environmental revolving accounts" means accounts in the
agricultural fund, controlled by the commissioner, which hold funds available to the
program.

(c) "Agriculture supply business" means a person, partnership, joint venture,
corporation, limited liability company, association, firm, public service company,
or cooperative that provides materials, equipment, or services to farmers or
agriculture-related enterprises.

(d) "Allocation" means the funds awarded to an applicant for implementation of best
management practices through a competitive or noncompetitive application process.

(e) "Applicant" means a local unit of government eligible to participate in this
program that requests an allocation of funds as provided in subdivision 6b.

(f) "Best management practices" has the meaning given in sections 103F.711,
subdivision 3
, and 103H.151, subdivision 2 , or . Best management practices also means
other practices, techniques, and measures that have been demonstrated to the satisfaction
of the commissioner: (1) to prevent or reduce adverse environmental impacts by using
the most effective and practicable means of achieving environmental goals; or (2) to
achieve drinking water quality standards under chapter 103H or under Code of Federal
Regulations, title 40, parts 141 and 143, as amended
.

(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner
applying for a low-interest loan.

(h) "Commissioner" means the commissioner of agriculture, including when the
commissioner is acting in the capacity of chair of the Rural Finance Authority, or the
designee of the commissioner.

(i) "Committed project" means an eligible project scheduled to be implemented at
a future date:

(1) that has been approved and certified by the local government unit; and

(2) for which a local lender has obligated itself to offer a loan.

(j) "Comprehensive water management plan" means a state approved and locally
adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331,
103D.401, or 103D.405.

(k) "Cost incurred" means expenses for implementation of a project accrued because
the borrower has agreed to purchase equipment or is obligated to pay for services or
materials already provided as a result of implementing an approved eligible project.

(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability
company, association, firm, public service company, or cooperative that regularly
participates in physical labor or operations management of farming and files a Schedule F
as part of filing United States Internal Revenue Service Form 1040 or indicates farming as
the primary business activity under Schedule C, K, or S, or any other applicable report to
the United States Internal Revenue Service.

(m) "Lender agreement" means an agreement entered into between the commissioner
and a local lender which contains terms and conditions of participation in the program.

(n) "Local government unit" means a county, soil and water conservation district,
or an organization formed for the joint exercise of powers under section 471.59 with
the authority to participate in the program.

(o) "Local lender" means a local government unit as defined in paragraph (n), a state
or federally chartered bank, a savings association, a state or federal credit union, Agribank
and its affiliated organizations, or a nonprofit economic development organization or other
financial lending institution approved by the commissioner.

(p) "Local revolving loan account" means the account held by a local government unit
and a local lender into which principal repayments from borrowers are deposited and new
loans are issued in accordance with the requirements of the program and lender agreements.

(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.

(r) "Program" means the agriculture best management practices loan program
in this section.

(s) "Project" means one or more components or activities located within Minnesota
that are required by the local government unit to be implemented for satisfactory
completion of an eligible best management practice.

(t) "Rural landowner" means the owner of record of Minnesota real estate located
in an area determined by the local government unit to be rural after consideration of
local land use patterns, zoning regulations, jurisdictional boundaries, local community
definitions, historical uses, and other pertinent local factors.

(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph
(d), except as expressly limited in this section.

Sec. 4.

Minnesota Statutes 2014, section 17.117, subdivision 11a, is amended to read:


Subd. 11a.

Eligible projects.

(a) All projects that remediate or mitigate adverse
environmental impacts are eligible if:

(1) the project is eligible under the an allocation agreement and funding sources
designated by the local government unit to finance the project; and
.

(2) (b) A manure management projects remediate project is eligible if the project
remediates
or mitigate mitigates impacts from facilities with less than 1,000 animal units
as defined in Minnesota Rules, chapter 7020, and otherwise meets the requirements of
this section
.

(c) A drinking water project is eligible if the project:

(1) remediates the adverse environmental impacts or presence of contaminants in
private well water;

(2) implements best management practices to achieve drinking water standards; and

(3) otherwise meets the requirements of this section.

Sec. 5.

[17.119] TRACTOR ROLLOVER PROTECTION PILOT GRANT
PROGRAM.

Subdivision 1.

Grants; eligibility.

(a) The commissioner must award cost-share
grants to Minnesota farmers who retrofit eligible tractors and Minnesota schools that
retrofit eligible tractors with eligible rollover protective structures. Grants are limited to
70 percent of the farmer's or school's documented cost to purchase, ship, and install an
eligible rollover protective structure. The commissioner must increase the grant award
amount over the 70 percent grant limitation requirement if necessary to limit a farmer's or
school's cost per tractor to no more than $500.

(b) A rollover protective structure is eligible if it meets or exceeds SAE International
standard J2194.

(c) A tractor is eligible if the tractor was built before 1987.

Subd. 2.

Promotion; administration.

The commissioner may spend up to 20
percent of total program dollars each fiscal year to promote and administer the program to
Minnesota farmers and schools.

Subd. 3.

Nonstate sources; appropriation.

The commissioner must accept
contributions from nonstate sources to supplement state appropriations for this program.
Contributions received under this subdivision are appropriated to the commissioner for
purposes of this section.

Subd. 4.

Expiration.

This section expires on June 30, 2019.

Sec. 6.

[17.1195] POLLINATOR INVESTMENT GRANT PROGRAM.

Subdivision 1.

Establishment.

The commissioner may award a pollinator
investment grant to a person who implements best management practices to protect wild
and managed insect pollinators in this state equal to ten percent of the first $100,000 of
qualifying expenditures, provided the person makes qualifying expenditures of at least
$25,000. The commissioner may award multiple pollinator investment grants to a person
over the life of the program as long as the cumulative amount does not exceed $30,000.

Subd. 2.

Definition.

For the purposes of this section, "qualified expenditures"
means the amount spent for:

(1) in conventional farming systems, planting neonicotinoid-free seeds,
implementing integrated pest management practices, and not using a pesticide class
labeled by the United States Environmental Protection Agency as toxic to bees; or

(2) creating new pollinator habitat, and not using a pesticide class labeled by the
United States Environmental Protection Agency as toxic to bees; by:

(i) seeding native flowering plants as prairie strips within productive cropland to
provide forage for pollinators;

(ii) renovating a pasture system by overseeding a pasture with high-diversity native
forb or native or non-native legume mixtures;

(iii) interseeding legumes, brassicas, buckwheat, or other pollinator forage plants
with corn or soybean, or planting these as cover crops before or after corn or soybean;

(iv) planting or seeding riparian and wetland areas and vegetative buffer strips with
native perennial cover that provides forage for pollinators;

(v) planting a native hedgerow; or

(vi) increasing plant diversity in nonproductive areas by adding native flowering
forbs, trees, or shrubs, or by introducing pollinator-friendly plant species into existing
strands of grasses.

Subd. 3.

Eligibility.

(a) To be eligible for a pollinator investment grant, a person
must:

(1) be a resident of Minnesota or an entity specifically defined in section 500.24,
subdivision 2, that is eligible to own farmland and operate a farm in this state under
section 500.24;

(2) be the principal operator of the farm; and

(3) apply to the commissioner on forms prescribed by the commissioner, including a
statement of the qualifying expenditures made during the qualifying period along with any
proof or other documentation the commissioner may require.

(b) The $10,000 maximum grant applies at the entity level for partnerships, S
corporations, C corporations, trusts, and estates as well as at the individual level. In the
case of married individuals, the grant is limited to $10,000 for a married couple.

Sec. 7.

Minnesota Statutes 2014, section 41A.12, subdivision 2, is amended to read:


Subd. 2.

Activities authorized.

For the purposes of this program, the commissioner
may issue grants, loans, or other forms of financial assistance. Eligible activities include,
but are not limited to, grants to livestock producers under the livestock investment grant
program under section 17.118, bioenergy awards made by the NextGen Energy Board
under section 41A.105 , cost-share grants for the installation of biofuel blender pumps, and
financial assistance to support other rural economic infrastructure activities.

Sec. 8.

Minnesota Statutes 2015 Supplement, section 41A.14, subdivision 1, is
amended to read:


Subdivision 1.

Duties; grants.

The agriculture research, education, extension, and
technology transfer grant program is created. The purpose of the grant program is to
provide investments that will most efficiently achieve long-term agricultural productivity
increases through improved infrastructure, vision, and accountability. The scope and
intent of the grants, to the extent possible, shall provide for a long-term base funding
that allows the research grantee to continue the functions of the research, education, and
extension, and technology transfer efforts to a practical conclusion. Priority for grants
shall be given to human infrastructure. The commissioner shall provide grants for:

(1) agricultural research, extension, and technology transfer needs and recipients
including agricultural research and extension
at the University of Minnesota, research and
outreach centers, the College of Food, Agricultural and Natural Resource Sciences, the
Minnesota Agricultural Experiment Station, University of Minnesota Extension Service,
the University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory,
the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and
Education Council;

(2) agriculture rapid response for plant and animal diseases and pests; and

(3) agricultural education including but not limited to the Minnesota Agriculture
Education Leadership Council, farm business management, mentoring programs, graduate
debt forgiveness, and high school programs.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 9.

Minnesota Statutes 2015 Supplement, section 41A.14, subdivision 2, is
amended to read:


Subd. 2.

Advisory panel.

(a) In awarding grants under this section, the
commissioner and a representative of the College of Food, Agricultural, and Natural
Resource Sciences at the University of Minnesota
must consult with an advisory panel
consisting of the following stakeholders:

(1) a representative of the College of Food, Agricultural and Natural Resource
Sciences at the University of Minnesota;

(2) a representative of the Minnesota State Colleges and Universities system;

(3) (2) a representative of the Minnesota Farm Bureau;

(4) (3) a representative of the Minnesota Farmers Union;

(5) (4) a person representing agriculture industry statewide;

(6) (5) a representative of each of the state commodity councils organized under
section 17.54 and the Minnesota Pork Board;

(7) (6) a person representing an association of primary manufacturers of forest
products;

(8) (7) a person representing organic or sustainable agriculture; and

(9) (8) a person representing statewide environment and natural resource
conservation organizations.

(b) Members under paragraph (a), clauses (1) to (3) and (5), shall be chosen by their
respective organizations.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 10.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 2a.

Biobased content.

"Biobased content" means a chemical, polymer,
monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a
biobased percentage of at least 51 percent as determined by testing representative samples
using American Society for Testing and Materials specification D6866.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 2b.

Biobased formulated product.

"Biobased formulated product" means
a product that is not sold primarily for use as food, feed, or fuel and that has a biobased
content percentage of at least ten percent as determined by testing representative samples
using American Society for Testing and Materials specification D6866, or that contains
a biobased chemical constituent that displaces a known hazardous or toxic constituent
previously used in the product formulation.

Sec. 12.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 2c.

Biobutanol.

"Biobutanol" means fermentation isobutyl alcohol that is
derived from agricultural products, including potatoes, cereal grains, cheese whey, and
sugar beets; forest products; or other renewable resources, including residue and waste
generated from the production, processing, and marketing of agricultural products, forest
products, and other renewable resources.

Sec. 13.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 2d.

Biobutanol facility.

"Biobutanol facility" means a facility at which
biobutanol is produced.

Sec. 14.

Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a
subdivision to read:


Subd. 9a.

Quarterly.

"Quarterly" means any of the following three-month intervals
in a calendar year: January through March, April through June, July through September,
or October through December.

Sec. 15.

Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 10, is
amended to read:


Subd. 10.

Renewable chemical.

"Renewable chemical" means a chemical with
biobased content as defined in section 41A.105, subdivision 1a .

Sec. 16.

Minnesota Statutes 2015 Supplement, section 41A.16, subdivision 1, is
amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
less from the state border, raw materials may be sourced from within a 100-mile radius.
Raw materials must be from agricultural or forestry sources or from solid waste. The
facility must be located in Minnesota, must begin production at a specific location by June
30, 2025, and must not begin operating above 95,000 23,750 MMbtu of annual quarterly
biofuel production before July 1, 2015. Eligible facilities include existing companies and
facilities that are adding advanced biofuel production capacity, or retrofitting existing
capacity, as well as new companies and facilities. Production of conventional corn ethanol
and conventional biodiesel is not eligible. Eligible advanced biofuel facilities must
produce at least 95,000 23,750 MMbtu a year of biofuel quarterly.

(b) No payments shall be made for advanced biofuel production that occurs after
June 30, 2035, for those eligible biofuel producers under paragraph (a).

(c) An eligible producer of advanced biofuel shall not transfer the producer's
eligibility for payments under this section to an advanced biofuel facility at a different
location.

(d) A producer that ceases production for any reason is ineligible to receive
payments under this section until the producer resumes production.

(e) Renewable chemical production for which payment has been received under
section 41A.17, and biomass thermal production for which payment has been received
under section 41A.18, are not eligible for payment under this section.

(f) Biobutanol is eligible under this section.

Sec. 17.

Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 1, is
amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this program
must source at least 80 percent biobased content, as defined in section 41A.105,
subdivision 1a, clause (1),
from Minnesota. If a facility is sited 50 miles or less from the
state border, biobased content must be sourced from within a 100-mile radius. Biobased
content must be from agricultural or forestry sources or from solid waste. The facility must
be located in Minnesota, must begin production at a specific location by June 30, 2025, and
must not begin production of 3,000,000 750,000 pounds of chemicals annually quarterly
before January 1, 2015. Eligible facilities include existing companies and facilities that are
adding production capacity, or retrofitting existing capacity, as well as new companies and
facilities. Eligible renewable chemical facilities must produce at least 3,000,000 750,000
pounds per year of renewable chemicals quarterly. Renewable chemicals produced
through processes that are fully commercial before January 1, 2000, are not eligible.

(b) No payments shall be made for renewable chemical production that occurs after
June 30, 2035, for those eligible renewable chemical producers under paragraph (a).

(c) An eligible producer of renewable chemicals shall not transfer the producer's
eligibility for payments under this section to a renewable chemical facility at a different
location.

(d) A producer that ceases production for any reason is ineligible to receive
payments under this section until the producer resumes production.

(e) Advanced biofuel production for which payment has been received under section
41A.16, and biomass thermal production for which payment has been received under
section 41A.18, are not eligible for payment under this section.

Sec. 18.

Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 2, is
amended to read:


Subd. 2.

Payment amounts; bonus; limits.

(a) The commissioner shall make
payments to eligible producers of renewable chemicals located in the state. The amount of
the payment for each producer's annual production is $0.03 per pound of sugar-derived
renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of
cellulosic-derived renewable chemical produced at a specific location for ten years after
the start of production.

(b) An eligible facility producing renewable chemicals using agricultural cellulosic
biomass is eligible for a 20 percent bonus payment for each MMbtu pound produced from
agricultural biomass that is derived from perennial crop or cover crop biomass.

(c) Total payments under this section to an eligible renewable chemical producer in
a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable
chemical production. Total payments under this section to all eligible renewable chemical
producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of
renewable chemical production. The commissioner shall award payments on a first-come,
first-served basis within the limits of available funding.

(d) For purposes of this section, an entity that holds a controlling interest in more
than one renewable chemical production facility is considered a single eligible producer.

Sec. 19.

Minnesota Statutes 2015 Supplement, section 41A.18, subdivision 1, is
amended to read:


Subdivision 1.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or
less from the state border, raw materials should be sourced from within a 100-mile radius.
Raw materials must be from agricultural or forestry sources. The facility must be located
in Minnesota, must have begun production at a specific location by June 30, 2025, and
must not begin before July 1, 2015. Eligible facilities include existing companies and
facilities that are adding production capacity, or retrofitting existing capacity, as well as
new companies and facilities. Eligible biomass thermal production facilities must produce
at least 1,000 250 MMbtu per year of biomass thermal quarterly.

(b) No payments shall be made for biomass thermal production that occurs after June
30, 2035, for those eligible biomass thermal producers under paragraph (a).

(c) An eligible producer of biomass thermal production shall not transfer the
producer's eligibility for payments under this section to a biomass thermal production
facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive
payments under this section until the producer resumes production.

(e) Biofuel production for which payment has been received under section 41A.16,
and renewable chemical production for which payment has been received under section
41A.17, are not eligible for payment under this section.

Sec. 20.

[41A.20] SIDING PRODUCTION INCENTIVE.

Subdivision 1.

Definitions.

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

(b) "Commissioner" means the commissioner of agriculture.

(c) "Forest resources" means raw wood logs and material primarily made up of
cellulose, hemicellulose, or lignin, or a combination of those ingredients.

Subd. 2.

Eligibility.

(a) A facility eligible for payment under this section must
source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles
or less from the state border, raw materials may be sourced from within a 100-mile
radius. Raw materials must be from forest resources. The facility must be located in
Minnesota, must begin production at a specific location by June 30, 2025, and must not
begin operating before July 1, 2017. Eligible facilities include existing companies and
facilities that are adding siding production capacity, or retrofitting existing capacity, as
well as new companies and facilities. Eligible siding production facilities must produce at
least 200,000,000 siding square feet on a 3/8 inch nominal basis of siding each year.

(b) No payments shall be made for siding production that occurs after June 30, 2035,
for those eligible producers under paragraph (a).

(c) An eligible producer of siding shall not transfer the producer's eligibility for
payments under this section to a facility at a different location.

(d) A producer that ceases production for any reason is ineligible to receive
payments under this section until the producer resumes production.

Subd. 3.

Payment amounts; limits.

(a) The commissioner shall make payments
to eligible producers of siding. The amount of the payment for each eligible producer's
annual production is $7.50 per 1,000 siding square feet on a 3/8 inch nominal basis of
siding produced at a specific location for ten years after the start of production.

(b) Total payments under this section to an eligible siding producer in a fiscal year
may not exceed the amount necessary for 400,000,000 siding square feet on a 3/8 inch
nominal basis of siding produced. Total payments under this section to all eligible siding
producers in a fiscal year may not exceed the amount necessary for 400,000,000 siding
square feet on a 3/8 inch nominal basis of siding produced. The commissioner shall award
payments on a first-come, first-served basis within the limits of available funding.

(c) For purposes of this section, an entity that holds a controlling interest in more
than one siding facility is considered a single eligible producer.

Subd. 4.

Forest resources requirements.

Forest resources that come from land
parcels greater than 160 acres must be certified by the Forest Stewardship Council,
Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land from
parcels of 160 acres or less and federal land must be harvested by a logger who has
completed training from the Minnesota logger education program or the equivalent, and
have a forest stewardship plan.

Subd. 5.

Claims.

(a) By the last day of October, January, April, and July, each
eligible siding producer shall file a claim for payment for siding production during the
preceding three calendar months. An eligible siding producer that files a claim under this
subdivision shall include a statement of the eligible producer's total board feet of siding
produced during the quarter covered by the claim. For each claim and statement of total
board feet of siding filed under this subdivision, the board feet of siding produced must
be examined by a certified public accounting firm with a valid permit to practice under
chapter 326A, in accordance with Statements on Standards for Attestation Engagements
established by the American Institute of Certified Public Accountants.

(b) The commissioner must issue payments by November 15, February 15, May 15,
and August 15. A separate payment must be made for each claim filed.

Subd. 6.

Appropriation.

A sum sufficient to make the payments required by this
section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the
general fund to the commissioner.

Sec. 21.

Minnesota Statutes 2015 Supplement, section 116D.04, subdivision 2a,
is amended to read:


Subd. 2a.

When prepared.

Where there is potential for significant environmental
effects resulting from any major governmental action, the action shall be preceded by a
detailed environmental impact statement prepared by the responsible governmental unit.
The environmental impact statement shall be an analytical rather than an encyclopedic
document which describes the proposed action in detail, analyzes its significant
environmental impacts, discusses appropriate alternatives to the proposed action and
their impacts, and explores methods by which adverse environmental impacts of an
action could be mitigated. The environmental impact statement shall also analyze those
economic, employment, and sociological effects that cannot be avoided should the action
be implemented. To ensure its use in the decision-making process, the environmental
impact statement shall be prepared as early as practical in the formulation of an action.

(a) The board shall by rule establish categories of actions for which environmental
impact statements and for which environmental assessment worksheets shall be prepared
as well as categories of actions for which no environmental review is required under this
section. A mandatory environmental assessment worksheet shall not be required for the
expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph
(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a
biobutanol facility as defined in section 41A.105 41A.15, subdivision 1a 2d, based on
the capacity of the expanded or converted facility to produce alcohol fuel, but must be
required if the ethanol plant or biobutanol facility meets or exceeds thresholds of other
categories of actions for which environmental assessment worksheets must be prepared.
The responsible governmental unit for an ethanol plant or biobutanol facility project for
which an environmental assessment worksheet is prepared shall be the state agency with
the greatest responsibility for supervising or approving the project as a whole.

A mandatory environmental impact statement shall not be required for a facility
or plant located outside the seven-county metropolitan area that produces less than
125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less
than 400,000 tons of chemicals annually, if the facility or plant is: an ethanol plant, as
defined in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined
in section 41A.105 41A.15, subdivision 1a, clause (1) 2d; or a cellulosic biofuel facility.
A facility or plant that only uses a cellulosic feedstock to produce chemical products for
use by another facility as a feedstock shall not be considered a fuel conversion facility as
used in rules adopted under this chapter.

(b) The responsible governmental unit shall promptly publish notice of the
completion of an environmental assessment worksheet by publishing the notice in at least
one newspaper of general circulation in the geographic area where the project is proposed,
by posting the notice on a Web site that has been designated as the official publication site
for publication of proceedings, public notices, and summaries of a political subdivision in
which the project is proposed, or in any other manner determined by the board and shall
provide copies of the environmental assessment worksheet to the board and its member
agencies. Comments on the need for an environmental impact statement may be submitted
to the responsible governmental unit during a 30-day period following publication of the
notice that an environmental assessment worksheet has been completed. The responsible
governmental unit's decision on the need for an environmental impact statement shall be
based on the environmental assessment worksheet and the comments received during the
comment period, and shall be made within 15 days after the close of the comment period.
The board's chair may extend the 15-day period by not more than 15 additional days upon
the request of the responsible governmental unit.

(c) An environmental assessment worksheet shall also be prepared for a proposed
action whenever material evidence accompanying a petition by not less than 100
individuals who reside or own property in the state, submitted before the proposed
project has received final approval by the appropriate governmental units, demonstrates
that, because of the nature or location of a proposed action, there may be potential for
significant environmental effects. Petitions requesting the preparation of an environmental
assessment worksheet shall be submitted to the board. The chair of the board shall
determine the appropriate responsible governmental unit and forward the petition to it.
A decision on the need for an environmental assessment worksheet shall be made by
the responsible governmental unit within 15 days after the petition is received by the
responsible governmental unit. The board's chair may extend the 15-day period by not
more than 15 additional days upon request of the responsible governmental unit.

(d) Except in an environmentally sensitive location where Minnesota Rules, part
4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental
review under this chapter and rules of the board, if:

(1) the proposed action is:

(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or

(ii) an expansion of an existing animal feedlot facility with a total cumulative
capacity of less than 1,000 animal units;

(2) the application for the animal feedlot facility includes a written commitment by
the proposer to design, construct, and operate the facility in full compliance with Pollution
Control Agency feedlot rules; and

(3) the county board holds a public meeting for citizen input at least ten business
days prior to the Pollution Control Agency or county issuing a feedlot permit for the
animal feedlot facility unless another public meeting for citizen input has been held with
regard to the feedlot facility to be permitted. The exemption in this paragraph is in
addition to other exemptions provided under other law and rules of the board.

(e) The board may, prior to final approval of a proposed project, require preparation
of an environmental assessment worksheet by a responsible governmental unit selected
by the board for any action where environmental review under this section has not been
specifically provided for by rule or otherwise initiated.

(f) An early and open process shall be utilized to limit the scope of the environmental
impact statement to a discussion of those impacts, which, because of the nature or location
of the project, have the potential for significant environmental effects. The same process
shall be utilized to determine the form, content and level of detail of the statement as well
as the alternatives which are appropriate for consideration in the statement. In addition,
the permits which will be required for the proposed action shall be identified during the
scoping process. Further, the process shall identify those permits for which information
will be developed concurrently with the environmental impact statement. The board
shall provide in its rules for the expeditious completion of the scoping process. The
determinations reached in the process shall be incorporated into the order requiring the
preparation of an environmental impact statement.

(g) The responsible governmental unit shall, to the extent practicable, avoid
duplication and ensure coordination between state and federal environmental review
and between environmental review and environmental permitting. Whenever practical,
information needed by a governmental unit for making final decisions on permits
or other actions required for a proposed project shall be developed in conjunction
with the preparation of an environmental impact statement. When an environmental
impact statement is prepared for a project requiring multiple permits for which two or
more agencies' decision processes include either mandatory or discretionary hearings
before a hearing officer prior to the agencies' decision on the permit, the agencies
may, notwithstanding any law or rule to the contrary, conduct the hearings in a single
consolidated hearing process if requested by the proposer. All agencies having jurisdiction
over a permit that is included in the consolidated hearing shall participate. The responsible
governmental unit shall establish appropriate procedures for the consolidated hearing
process, including procedures to ensure that the consolidated hearing process is consistent
with the applicable requirements for each permit regarding the rights and duties of parties to
the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.

(h) An environmental impact statement shall be prepared and its adequacy
determined within 280 days after notice of its preparation unless the time is extended by
consent of the parties or by the governor for good cause. The responsible governmental
unit shall determine the adequacy of an environmental impact statement, unless within 60
days after notice is published that an environmental impact statement will be prepared,
the board chooses to determine the adequacy of an environmental impact statement. If an
environmental impact statement is found to be inadequate, the responsible governmental
unit shall have 60 days to prepare an adequate environmental impact statement.

(i) The proposer of a specific action may include in the information submitted to the
responsible governmental unit a preliminary draft environmental impact statement under
this section on that action for review, modification, and determination of completeness and
adequacy by the responsible governmental unit. A preliminary draft environmental impact
statement prepared by the project proposer and submitted to the responsible governmental
unit shall identify or include as an appendix all studies and other sources of information
used to substantiate the analysis contained in the preliminary draft environmental impact
statement. The responsible governmental unit shall require additional studies, if needed,
and obtain from the project proposer all additional studies and information necessary for
the responsible governmental unit to perform its responsibility to review, modify, and
determine the completeness and adequacy of the environmental impact statement.

Sec. 22.

Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4,
is amended to read:


Subd. 4.

Agriculture, Bioenergy, and
Bioproduct Advancement

14,993,000
19,010,000

$4,483,000 the first year and $8,500,000 the
second year are for transfer to the agriculture
research, education, extension, and
technology transfer account under Minnesota
Statutes, section 41A.14, subdivision 3. The
transfer in this paragraph includes money
for plant breeders at the University of
Minnesota for cultivated wild rice, potatoes,
and grapes. Of the amount appropriated in
this paragraph, at least $450,000 the second
year is for transfer to the Board of Regents
of the University of Minnesota for the
cultivated wild rice breeding project at the
North Central Research and Outreach Center
to include a tenure track/research associate
plant breeder. Of the amount appropriated
in this paragraph, at least $350,000 the
second year is for transfer to the Board of
Regents of the University of Minnesota
for potato breeding.
Of these amounts, at
least $600,000 each year is for agriculture
rapid response
the Minnesota Agricultural
Experiment Station's agriculture rapid
response fund
under Minnesota Statutes,
section 41A.14, subdivision 1, clause (2). Of
the amount appropriated in this paragraph,
$1,000,000 each year is for transfer to
the Board of Regents of the University of
Minnesota for research to determine (1) what
is causing avian influenza, (2) why some
fowl are more susceptible, and (3) prevention
measures that can be taken. Of the amount
appropriated in this paragraph, $2,000,000
each year is for grants to the Minnesota
Agriculture Education Leadership Council
to enhance agricultural education with
priority given to Farm Business Management
challenge grants. The commissioner shall
transfer the remaining grant funds in this
appropriation each year to the Board of
Regents of the University of Minnesota for
purposes of Minnesota Statutes, section
41A.14, subdivision 1, clause (1), and subject
to Minnesota Statutes, section 41A.14,
subdivision 2.

To the extent practicable, funds expended
under Minnesota Statutes, section 41A.14,
subdivision 1
, clauses (1) and (2), must
supplement and not supplant existing sources
and levels of funding. The commissioner may
use up to 4.5 percent of this appropriation
for costs incurred to administer the program.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year. Notwithstanding Minnesota
Statutes, section 16A.28, the appropriations
encumbered under contract on or before June
30, 2017, for agricultural growth, research,
and innovation grants are available until June
30, 2019.

$10,235,000 the first year and $10,235,000
the second year are for the agricultural
growth, research, and innovation program
in Minnesota Statutes, section 41A.12. No
later than February 1, 2016, and February
1, 2017, the commissioner must report to
the legislative committees with jurisdiction
over agriculture policy and finance regarding
the commissioner's accomplishments
and anticipated accomplishments in
the following areas: facilitating the
start-up, modernization, or expansion of
livestock operations including beginning
and transitioning livestock operations;
developing new markets for Minnesota
farmers by providing more fruits, vegetables,
meat, grain, and dairy for Minnesota school
children; assisting value-added agricultural
businesses to begin or expand, access new
markets, or diversify products; developing
urban agriculture; facilitating the start-up,
modernization, or expansion of other
beginning and transitioning farms including
loans under Minnesota Statutes, section
41B.056; sustainable agriculture on farm
research and demonstration; development or
expansion of food hubs and other alternative
community-based food distribution systems;
and research on bioenergy, biobased content,
or biobased formulated products and other
renewable energy development. The
commissioner may use up to 4.5 percent
of this appropriation for costs incurred to
administer the program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.
Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2017, for
agricultural growth, research, and innovation
grants are available until June 30, 2019.

The commissioner may use funds
appropriated for the agricultural growth,
research, and innovation program as provided
in this paragraph. The commissioner may
award grants to owners of Minnesota
facilities producing bioenergy, biobased
content, or a biobased formulated product;
to organizations that provide for on-station,
on-farm field scale research and outreach to
develop and test the agronomic and economic
requirements of diverse strands of prairie
plants and other perennials for bioenergy
systems; or to certain nongovernmental
entities. For the purposes of this paragraph,
"bioenergy" includes transportation fuels
derived from cellulosic material, as well as
the generation of energy for commercial heat,
industrial process heat, or electrical power
from cellulosic materials via gasification or
other processes. Grants are limited to 50
percent of the cost of research, technical
assistance, or equipment related to bioenergy,
biobased content, or biobased formulated
product production or $500,000, whichever
is less. Grants to nongovernmental entities
for the development of business plans and
structures related to community ownership
of eligible bioenergy facilities together may
not exceed $150,000. The commissioner
shall make a good-faith effort to select
projects that have merit and, when taken
together, represent a variety of bioenergy
technologies, biomass feedstocks, and
geographic regions of the state. Projects
must have a qualified engineer provide
certification on the technology and fuel
source. Grantees must provide reports at the
request of the commissioner.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $1,000,000 the
first year and $1,000,000 the second year
are for distribution in equal amounts to each
of the state's county fairs to preserve and
promote Minnesota agriculture.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $500,000 in
fiscal year 2016 and $1,500,000 in fiscal
year 2017 are for incentive payments
under Minnesota Statutes, sections 41A.16,
41A.17, and 41A.18. If the appropriation
exceeds the total amount for which all
producers are eligible in a fiscal year, the
balance of the appropriation is available
to the commissioner for the agricultural
growth, research, and innovation program.
Notwithstanding Minnesota Statutes,
section 16A.28, the first year appropriation
is available until June 30, 2017, and the
second year appropriation is available until
June 30, 2018. The commissioner may use
up to 4.5 percent of the appropriation for
administration of the incentive payment
programs.

Of the amount appropriated for the
agricultural growth, research, and innovation
program in this subdivision, $250,000
the first year is for grants to communities
to develop or expand food hubs and
other alternative community-based food
distribution systems. Of this amount,
$50,000 is for the commissioner to consult
with existing food hubs, alternative
community-based food distribution systems,
and University of Minnesota Extension
to identify best practices for use by other
Minnesota communities. No later than
December 15, 2015, the commissioner must
report to the legislative committees with
jurisdiction over agriculture and health
regarding the status of emerging alternative
community-based food distribution systems
in the state along with recommendations
to eliminate any barriers to success. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.
This is a onetime appropriation.

$250,000 the first year and $250,000 the
second year are for grants that enable
retail petroleum dispensers to dispense
biofuels to the public in accordance with the
biofuel replacement goals established under
Minnesota Statutes, section 239.7911. A
retail petroleum dispenser selling petroleum
for use in spark ignition engines for vehicle
model years after 2000 is eligible for grant
money under this paragraph if the retail
petroleum dispenser has no more than 15
retail petroleum dispensing sites and each
site is located in Minnesota. The grant
money received under this paragraph must
be used for the installation of appropriate
technology that uses fuel dispensing
equipment appropriate for at least one fuel
dispensing site to dispense gasoline that is
blended with 15 percent of agriculturally
derived, denatured ethanol, by volume, and
appropriate technical assistance related to
the installation. A grant award must not
exceed 85 percent of the cost of the technical
assistance and appropriate technology,
including remetering of and retrofits for
retail petroleum dispensers and replacement
of petroleum dispenser projects. The
commissioner may use up to $35,000 of this
appropriation for administrative expenses.
The commissioner shall cooperate with
biofuel stakeholders in the implementation
of the grant program. The commissioner
must report to the legislative committees
with jurisdiction over agriculture policy and
finance by February 1 each year, detailing
the number of grants awarded under this
paragraph and the projected effect of the grant
program on meeting the biofuel replacement
goals under Minnesota Statutes, section
239.7911. These are onetime appropriations.

$25,000 the first year and $25,000 the second
year are for grants to the Southern Minnesota
Initiative Foundation to promote local foods
through an annual event that raises public
awareness of local foods and connects local
food producers and processors with potential
buyers.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 23.

Laws 2015, First Special Session chapter 4, article 1, section 5, is amended to
read:


Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; APPROPRIATIONS
AND TRANSFERS.

(a) $3,619,000 $619,000 is appropriated from the general fund in fiscal year 2016 to
the commissioner of agriculture for avian influenza emergency response activities. The
commissioner may use money appropriated under this paragraph to purchase necessary
euthanasia and composting equipment and to reimburse costs incurred by local units of
government directly related to avian influenza emergency response activities that are not
eligible for federal reimbursement. This appropriation is available the day following final
enactment until June 30, 2017.

(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the
Board of Animal Health for avian influenza emergency response activities. The Board
may use money appropriated under this paragraph to purchase necessary euthanasia and
composting equipment and to retain trained staff. This appropriation is available the day
following final enactment until June 30, 2017.

(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of health for avian influenza emergency response activities. This
appropriation is available the day following final enactment until June 30, 2017.

(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of natural resources for sampling wild animals to detect and monitor the
avian influenza virus. This appropriation may also be used to conduct serology sampling,
in consultation with the Board of Animal Health and the University of Minnesota Pomeroy
Chair in Avian Health, from birds within a control zone and outside of a control zone.
This appropriation is available the day following final enactment until June 30, 2017.

(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the
commissioner of public safety to operate the State Emergency Operation Center in
coordination with the statewide avian influenza response activities. Appropriations
under this paragraph may also be used to support a staff person at the state's agricultural
incident command post in Willmar. This appropriation is available the day following final
enactment until June 30, 2017.

(f) The commissioner of management and budget may transfer unexpended balances
from the appropriations in this section to any state agency for operating expenses related
to avian influenza emergency response activities. The commissioner of management and
budget must report each transfer to the chairs and ranking minority members of the senate
Committee on Finance and the house of representatives Committee on Ways and Means.

(g) In addition to the transfers required under Laws 2015, chapter 65, article 1,
section 17, no later than September 30, 2015, the commissioner of management and
budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general
fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221,
subdivision 6
. This amount is available for avian influenza emergency response activities
as provided in Laws 2015, chapter 65, article 1, section 18.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 4

NATURAL RESOURCES

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal year indicated for
each purpose. The figures "2016" and "2017" used in this article mean that the addition
to the appropriations listed under them are available for the fiscal year ending June 30,
2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second
year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day
following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. NATURAL RESOURCES

Subdivision 1.

Total Appropriation

$
2,269,000
$
14,885,000
Appropriations by Fund
2016
2017
General
1,599,000
12,386,000
Natural Resources
-0-
2,320,000
Game and Fish
670,000
110,000
Permanent School
-0-
69,000

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

Subd. 2.

Lands and Minerals Management

-0-
500,000

$500,000 the second year is for transfer to
the school trust lands director to initiate the
private sale of surplus school trust lands
identified according to Minnesota Statutes,
section 92.82, paragraph (d), including, but
not limited to, valuation expenses, legal
fees, and transactional staff costs. This
appropriation must not be used to extinguish
school trust interests in school trust lands.
This is a onetime appropriation.

Subd. 3.

Ecological and Water Resources

-0-
1,637,000

$187,000 the second year is for a grant to the
Middle-Snake-Tamarac Rivers Watershed
District to match equal funds from the North
Dakota State Water Commission and North
Dakota water boards to conduct hydraulic
modeling of alternative floodway options
for the reach including and upstream and
downstream of the Minnesota and North
Dakota agricultural levies in the vicinity
of Oslo, Minnesota. The modeling must
include evaluating removal of floodway
flow obstructions, channel obstructions,
transportation access, and equalization of
agricultural levy protection. The project must
be conducted in partnership with the border
township association group representing four
Minnesota townships and the city of Oslo
and the three adjacent townships in North
Dakota. This is a onetime appropriation and
is available until June 30, 2018.

$1,200,000 the second year is for an impact
study of irrigation on the Pineland Sands
aquifer. This is a onetime appropriation and
is available until June 30, 2019.

$250,000 the second year is for maintenance
of the Little Stone Lake Dam. St. Louis
County shall transfer to the state of Minnesota
maintenance and control of the Little Stone
Lake Dam that is described as: DAM ID
MN00373. This is a onetime appropriation.

Subd. 4.

Forest Management

-0-
3,100,000

$600,000 the second year is for a pilot
program to increase forest road maintenance.
The commissioner shall use the money to
perform needed maintenance on forest roads
in conjunction with timber sales. Optional
forest road maintenance contracts may be
offered to successful purchasers of state
timber sales at the commissioner's discretion.
This is a onetime appropriation.

$2,500,000 the second year is for private
forest management assistance. The agency
base is increased by $2,028,000 in fiscal year
2018 and thereafter.

Subd. 5.

Parks and Trails Management

-0-
5,668,000
Appropriations by Fund
2016
2017
General
-0-
3,279,000
Natural Resources
-0-
2,320,000
Permanent School
-0-
69,000

$3,000,000 the second year is a onetime
appropriation.

$2,300,000 the second year is from the state
parks account in the natural resources fund.
Of this amount, $1,300,000 is onetime. In
fiscal year 2017, the level of service and
hours at all state parks and recreation areas
must be maintained at fiscal year 2015 levels.

$20,000 the second year is from the natural
resources fund to design and erect signs
marking the David K. Dill trail designated in
this act. Of this amount, $10,000 is from the
snowmobile trails and enforcement account
and $10,000 is from the all-terrain vehicle
account. This is a onetime appropriation.

$69,000 the second year is from the state
forest suspense account in the permanent
school fund for the improvement of the
infrastructure for sanitary sewer service at the
Woodenfrog Campground in Kabetogama
State Forest. This is a onetime appropriation.

$250,000 the second year is for a grant to
Douglas County to acquire land, including a
ski area, for use as a regional park. The grant
must be matched by other state or nonstate
sources. This is a onetime appropriation and
is available until June 30, 2019.

$29,000 the second year is for computer
programming related to the transfer-on-death
title changes for watercraft. This is a onetime
appropriation.

Subd. 6.

Fish and Wildlife Management

-0-
50,000

$50,000 the second year is from the game
and fish fund for fish virus surveillance,
including fish testing in high-risk waters used
for bait production, to ensure the availability
of safe bait. This is a onetime appropriation.

Subd. 7.

Enforcement

670,000
-0-

$670,000 the first year is from the game and
fish fund for aviation services. This is a
onetime appropriation.

Subd. 8.

Operations Support

1,599,000
3,930,000
Appropriations by Fund
2016
2017
General
1,599,000
3,870,000
Game and Fish
-0-
60,000

$1,599,000 the first year and $2,370,000 the
second year are for legal costs related to the
NorthMet mining project. This is a onetime
appropriation and is available until June 30,
2019.

$1,500,000 the second year is for a grant to
Wolf Ridge Environmental Learning Center
to construct a new dormitory, renovate an old
dormitory, construct a maintenance building,
and construct a small classroom building
with parking. The grant is not available
until the commissioner of management
and budget determines that an amount
sufficient to complete the project is available
from nonstate sources. This is a onetime
appropriation and is available until June 30,
2019.

$60,000 the second year is from the
heritage enhancement account for the
department's Southeast Asian unit to
conduct outreach efforts to the Southeast
Asian community in Minnesota, including
outreach efforts to refugees from Burma, to
encourage participation in outdoor education
opportunities and activities. This is a onetime
appropriation.

Sec. 3.

Minnesota Statutes 2014, section 84.091, subdivision 2, is amended to read:


Subd. 2.

License required; exception exemptions.

(a) Except as provided in
paragraph (b) this subdivision, a person may not harvest, buy, sell, transport, or possess
aquatic plants without a license required under this chapter. A license shall be issued in
the same manner as provided under the game and fish laws.

(b) A resident under the age of 18 years may harvest wild rice without a license, if
accompanied by a person with a wild rice license.

(c) Tribal band members who possess a valid tribal identification card may harvest
wild rice without a license under this section.

Sec. 4.

Minnesota Statutes 2014, section 84.798, subdivision 2, is amended to read:


Subd. 2.

Exemptions.

Registration is not required for an off-road vehicle that is:

(1) owned and used by the United States, an Indian tribal government, the state,
another state, or a political subdivision; or

(2) registered in another state or country and has not been in this state for more than
30 consecutive days; or

(3) operated with a valid state trail pass according to section 84.8035.

EFFECTIVE DATE.

This section is effective January 1, 2017.

Sec. 5.

Minnesota Statutes 2014, section 84.8035, is amended to read:


84.8035 NONRESIDENT OFF-ROAD VEHICLE STATE TRAIL PASS.

Subdivision 1.

Pass required; fee.

(a) Except as provided under paragraph (c), a
nonresident person may not operate an off-road vehicle on a state or grant-in-aid off-road
vehicle trail or use area unless the vehicle displays a nonresident an off-road vehicle state
trail pass sticker issued according to this section. The pass must be viewable by a peace
officer, a conservation officer, or an employee designated under section 84.0835.

(b) The fee for an annual pass is $20. The pass is valid from January 1 through
December 31. The fee for a three-year pass is $30.
The commissioner of natural resources
shall issue a pass upon application and payment of the fee. Fees collected under this
section, except for the issuing fee for licensing agents, shall be deposited in the state
treasury and credited to the off-road vehicle account in the natural resources fund and,
except for the electronic licensing system commission established by the commissioner
under section 84.027, subdivision 15, must be used for grants-in-aid to counties and
municipalities for off-road vehicle organizations to construct and maintain off-road
vehicle trails and use areas.

(c) A nonresident An off-road vehicle state trail pass is not required for:

(1) an off-road vehicle that is owned and used by the United States, another state,
or a political subdivision thereof that is exempt from registration under section 84.798,
subdivision 2;

(2) a person operating an off-road vehicle only on the portion of a trail that is owned
by the person or the person's spouse, child, or parent; or

(3) a nonresident person operating an off-road vehicle that is registered according
to section 84.798.

(d) The fee for an annual nonresident off-road vehicle state trail pass is $20. The
nonresident pass is valid from January 1 through December 31. The fee for a nonresident
three-year pass is $30.

(e) The fee for a resident off-road vehicle state trail pass is $20. The resident pass is
valid for 30 consecutive days after the date of issuance.

Subd. 2.

License agents.

The commissioner may appoint agents to issue and
sell nonresident off-road vehicle state trail passes. The commissioner may revoke the
appointment of an agent at any time. The commissioner may adopt additional rules as
provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted
by the commissioner for accounting and handling of passes pursuant to section 97A.485,
subdivision 11
. An agent shall promptly deposit and remit all money received from the
sale of the passes, exclusive of the issuing fee, to the commissioner.

Subd. 3.

Issuance of passes.

The commissioner and agents shall issue and sell
nonresident off-road vehicle state trail passes. The commissioner shall also make the
passes available through the electronic licensing system established under section 84.027,
subdivision 15.

Subd. 4.

Agent's fee.

In addition to the fee for a pass, an issuing fee of $1 per pass
shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for
passes issued by the commissioner shall be deposited in the off-road vehicle account in the
natural resources fund and retained for the operation of the electronic licensing system.

Subd. 5.

Duplicate passes.

The commissioner and agents shall issue a duplicate
pass to persons whose pass is lost or destroyed using the process established under section
97A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident
off-road vehicle state trail pass is $4, with an issuing fee of 50 cents.

EFFECTIVE DATE.

This section is effective January 1, 2017.

Sec. 6.

Minnesota Statutes 2014, section 85.015, subdivision 13, is amended to read:


Subd. 13.

Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton,
Koochiching, and Itasca Counties.

(a)(1) The Taconite Trail shall originate at Ely in St.
Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to
McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in
Itasca County and there terminate;

(2) the C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County
and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand
Marais in Cook County, thence northeasterly to the international boundary in the vicinity
of the north shore of Lake Superior, and there terminate;

(3) The Grand Marais to International Falls Trail shall originate in Grand Marais
in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area,
to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to
Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St.
Louis County to International Falls in Koochiching County, and there terminate
the David
K. Dill/Arrowhead Trail shall originate at International Falls in Koochiching County and
extend southeasterly through the Pelican Lake area in St. Louis County, intersecting with
the Taconite Trail west of Tower; then the David K. Dill/Taconite Trail continues easterly
to Ely in St. Louis County; then the David K. Dill/Tomahawk Trail extends southeasterly,
outside the Boundary Waters Canoe Area, to the area of Little Marais in Lake County and
there terminates at the intersection with the C. J. Ramstad/Northshore Trail
; and

(4) the Matthew Lourey Trail shall originate in Duluth in St. Louis County and
extend southerly to Chengwatana State Forest in Pine County.

(b) The trails shall be developed primarily for riding and hiking.

(c) In addition to the authority granted in subdivision 1, lands and interests in lands
for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring
any land or interest in land by eminent domain the commissioner of administration shall
obtain the approval of the governor. The governor shall consult with the Legislative
Advisory Commission before granting approval. Recommendations of the Legislative
Advisory Commission shall be advisory only. Failure or refusal of the commission to
make a recommendation shall be deemed a negative recommendation.

Sec. 7.

[86B.841] TRANSFER-ON-DEATH TITLE TO WATERCRAFT.

Subdivision 1.

Titled as transfer-on-death.

A natural person who is the owner of a
watercraft may have the watercraft titled in transfer-on-death or TOD form by including in
the application for the certificate of title a designation of a beneficiary or beneficiaries to
whom the watercraft must be transferred on death of the owner or the last survivor of joint
owners with rights of survivorship, subject to the rights of secured parties.

Subd. 2.

Designation of beneficiary.

A watercraft is registered in transfer-on-death
form by designating on the certificate of title the name of the owner and the names
of joint owners with identification of rights of survivorship, followed by the words
"transfer-on-death to (name of beneficiary or beneficiaries)." The designation "TOD" may
be used instead of "transfer-on-death." A title in transfer-on-death form is not required
to be supported by consideration, and the certificate of title in which the designation
is made is not required to be delivered to the beneficiary or beneficiaries in order for
the designation to be effective.

Subd. 3.

Interest of beneficiary.

The transfer-on-death beneficiary or beneficiaries
have no interest in the watercraft until the death of the owner or the last survivor of joint
owners with rights of survivorship. A beneficiary designation may be changed at any time
by the owner or by all joint owners with rights of survivorship, without the consent of the
beneficiary or beneficiaries, by filing an application for a new certificate of title.

Subd. 4.

Vesting of ownership in beneficiary.

Ownership of a watercraft titled in
transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of
the owner or the last of the joint owners with rights of survivorship, subject to the rights of
secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner
may apply for a new certificate of title to the watercraft upon submitting a certified death
record of the owner of the watercraft. If no transfer-on-death beneficiary or beneficiaries
survive the owner of a watercraft, the watercraft must be included in the probate estate
of the deceased owner. A transfer of a watercraft to a transfer-on-death beneficiary or
beneficiaries is not a testamentary transfer.

Subd. 5.

Rights of creditors.

(a) This section does not limit the rights of any
secured party or creditor of the owner of a watercraft against a transfer-on-death
beneficiary or beneficiaries.

(b) The state or a county agency with a claim or lien authorized by section 246.53,
256B.15, 261.04, or 270C.63, is a creditor for purposes of this subdivision. A claim
or lien under those sections continues to apply against the designated beneficiary or
beneficiaries after the transfer under this section if other assets of the deceased owner's
estate are insufficient to pay the amount of the claim. The claim or lien continues to apply
to the watercraft until the designated beneficiary sells or transfers it to a person against
whom the claim or lien does not apply and who did not have actual notice or knowledge
of the claim or lien.

Sec. 8.

Minnesota Statutes 2014, section 89.0385, is amended to read:


89.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST
CERTIFICATION.

(a) The commissioner shall certify the total costs incurred for forest management,
forest improvement, and road improvement on state-managed lands during each fiscal
year. The commissioner shall distribute forest management receipts credited to various
accounts according to this section.

(b) The amount of the certified costs incurred for forest management activities on
state lands shall be transferred from the account where receipts are deposited to the forest
management investment account in the natural resources fund, except for those costs
certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and
revenue reports, throughout the fiscal year, with final certification and reconciliation after
each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

(c) The amount of the certified costs incurred for forest management activities
on nonstate lands managed under a good neighbor or joint powers agreement must be
transferred from the account where receipts are deposited to the forest management
investment account in the natural resources fund. Transfers for costs incurred may occur
after projects or timber permits are finalized.

Sec. 9.

Minnesota Statutes 2014, section 93.0015, subdivision 3, is amended to read:


Subd. 3.

Expiration.

The committee expires June 30, 2016 2026.

Sec. 10.

Minnesota Statutes 2014, section 93.2236, is amended to read:


93.2236 MINERALS MANAGEMENT ACCOUNT.

(a) The minerals management account is created as an account in the natural
resources fund. Interest earned on money in the account accrues to the account. Money in
the account may be spent or distributed only as provided in paragraphs (b) and (c).

(b) If the balance in the minerals management account exceeds $3,000,000 on March
31,
June 30, September 30, or December 31, the amount exceeding $3,000,000 must
be distributed to the permanent school fund, the permanent university fund, and taxing
districts as provided in section 93.22, subdivision 1, paragraph (c). The amount distributed
to each fund must be in the same proportion as the total mineral lease revenue received
in the previous biennium from school trust lands, university lands, and lands held by the
state in trust for taxing districts.

(c) Subject to appropriation by the legislature, money in the minerals management
account may be spent by the commissioner of natural resources for mineral resource
management and projects to enhance future mineral income and promote new mineral
resource opportunities.

Sec. 11.

Minnesota Statutes 2014, section 94.3495, subdivision 2, is amended to read:


Subd. 2.

Classes of land; definitions.

(a) The classes of public land that may be
involved in an expedited exchange under this section are:

(1) Class 1 land, which for the purpose of this section is Class A land as defined in
section 94.342, subdivision 1 , except for: ;

(i) school trust land as defined in section 92.025; and

(ii) university land granted to the state by acts of Congress;

(2) Class 2 land, which for the purpose of this section is Class B land as defined in
section 94.342, subdivision 2; and

(3) Class 3 land, which for the purpose of this section is all land owned in fee by
a governmental subdivision of the state.

(b) "School trust land" has the meaning given in section 92.025.

(c) "University land" means land granted to the state by acts of Congress for
university purposes.

Sec. 12.

Minnesota Statutes 2014, section 94.3495, subdivision 3, is amended to read:


Subd. 3.

Valuation of land.

(a) In an exchange of Class 1 land for Class 2 or 3 land,
the value of all the land shall be determined by the commissioner of natural resources,
but the county board must approve the value determined for the Class 2 land, and the
governmental subdivision of the state must approve the value determined for the Class 3
land
. In an exchange of Class 2 land for Class 3 land, the value of all the land shall be
determined by the county board of the county in which the land lies, but the governmental
subdivision of the state must approve the value determined for the Class 3 land
.

(b) To determine the value of the land, the parties to the exchange may either (1)
cause the land to be appraised, utilize the valuation process provided under section
84.0272, subdivision 3, or obtain a market analysis from a qualified real estate broker
or
(2) determine the value for each 40-acre tract or lot, or a portion thereof, using the most
current township or county assessment schedules for similar land types from the county
assessor of the county in which the lands are located
. Merchantable timber value must
should be determined and considered in finalizing valuation of the lands.

(b) All (c) Except for school trust lands and university lands, the lands exchanged
under this section shall be exchanged only for lands of at least substantially equal value.
For the purposes of this subdivision, "substantially equal value" has the meaning given
under section 94.343, subdivision 3, paragraph (b). No payment is due either party if the
lands, other than school trust lands or university lands, are of substantially equal value but
are not of the same value.

(d) School trust lands and university lands exchanged under this section must be
exchanged only for lands of equal or greater value.

Sec. 13.

Minnesota Statutes 2014, section 94.3495, subdivision 7, is amended to read:


Subd. 7.

Reversionary interest; Mineral and water power rights and other
reservations.

(a) All deeds conveying land given in an expedited land exchange under
this section shall include a reverter that provides that title to the land automatically reverts
to the conveying governmental unit if:

(1) the receiving governmental unit sells, exchanges, or otherwise transfers title of
the land within 40 years of the date of the deed conveying ownership; and

(2) there is no prior written approval for the transfer from the conveying
governmental unit. The authority for granting approval is the commissioner of natural
resources for former Class 1 land, the county board for former Class 2 land, and the
governing body for former Class 3 land.

(b) Class 1 land given in exchange is subject to the reservation provisions of section
94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation
provisions of section 94.344, subdivision 4. County fee land given in exchange is subject
to the reservation provisions of section 373.01, subdivision 1, paragraph (g).

Sec. 14.

Minnesota Statutes 2014, section 97A.405, subdivision 2, is amended to read:


Subd. 2.

Personal possession.

(a) A person acting under a license or traveling from
an area where a licensed activity was performed must have in personal possession either:
(1) the proper license, if the license has been issued to and received by the person; (2) a
driver's license or Minnesota identification card issued under section 171.07, subdivision
19, that has a valid written designation of the proper lifetime license;
or (2) (3) the proper
license identification number or stamp validation, if the license has been sold to the person
by electronic means but the actual license has not been issued and received.

(b) If possession of a license or a license identification number is required, a person
must exhibit, as requested by a conservation officer or peace officer, either: (1) the
proper license if the license has been issued to and received by the person; (2) a driver's
license or Minnesota identification card issued under section 171.07, subdivision 19,
that has a valid written designation of the proper lifetime license;
or (2) (3) the proper
license identification number or stamp validation and a valid state driver's license, state
identification card, or other form of identification provided by the commissioner, if the
license has been sold to the person by electronic means but the actual license has not been
issued and received. A person charged with violating the license possession requirement
shall not be convicted if the person produces in court or the office of the arresting officer,
the actual license previously issued to that person, which was valid at the time of arrest,
or satisfactory proof that at the time of the arrest the person was validly licensed. Upon
request of a conservation officer or peace officer, a licensee shall write the licensee's name
in the presence of the officer to determine the identity of the licensee.

(c) Except as provided in paragraph (a), clause (2), if the actual license has been
issued and received, a receipt for license fees, a copy of a license, or evidence showing the
issuance of a license, including the license identification number or stamp validation, does
not entitle a licensee to exercise the rights or privileges conferred by a license.

(d) A license issued electronically and not immediately provided to the licensee shall
be mailed to the licensee within 30 days of purchase of the license. A pictorial migratory
waterfowl, pheasant, trout and salmon, or walleye stamp shall be provided to the licensee
after purchase of a stamp validation only if the licensee pays an additional fee that covers
the costs of producing and mailing a pictorial stamp. A pictorial turkey stamp may be
purchased for a fee that covers the costs of producing and mailing the pictorial stamp.
Notwithstanding section 16A.1283, the commissioner may, by written order published in
the State Register, establish fees for providing the pictorial stamps. The fees must be set in
an amount that does not recover significantly more or less than the cost of producing and
mailing the stamps. The fees are not subject to the rulemaking provisions of chapter 14,
and section 14.386 does not apply.

EFFECTIVE DATE.

This section is effective January 1, 2018, or on the date
the Department of Public Safety implements the Minnesota Licensing and Registration
System (MNLARS), whichever occurs first.

Sec. 15.

Minnesota Statutes 2014, section 97A.465, is amended by adding a
subdivision to read:


Subd. 8.

Nonresident members of National Guard.

A nonresident that is a
member of the state's National Guard may obtain a resident license to take fish or game.
This subdivision does not apply to the taking of moose or elk.

Sec. 16.

Minnesota Statutes 2014, section 171.07, is amended by adding a subdivision
to read:


Subd. 19.

Resident lifetime game and fish license.

(a) The department shall
maintain in its records information transmitted electronically from the commissioner of
natural resources identifying each person to whom the commissioner has issued a resident
lifetime license under section 97A.473. The records transmitted from the Department of
Natural Resources must contain:

(1) the full name and date of birth as required for the driver's license or identification
card;

(2) the category of lifetime license issued under section 97A.473; and

(3) the Department of Natural Resources lifetime license number.

Records that are not matched to a driver's license or identification card record may
be deleted after seven years.

(b) After receiving information under paragraph (a) that a person has received
a lifetime license, the department shall include, on all drivers' licenses or Minnesota
identification cards subsequently issued to the person, a written designation that the person
has a lifetime license, the category of the lifetime license issued, and the Department of
Natural Resources lifetime license number.

(c) If a person who has received a lifetime license under section 97A.473 applies
for a driver's license or Minnesota identification card before that information has been
transmitted to the department, the department may accept a copy of the license issued
under section 97A.473 as proof of its issuance and shall then follow the procedures in
paragraph (b).

EFFECTIVE DATE.

This section is effective January 1, 2018, or on the date
the Department of Public Safety implements the Minnesota Licensing and Registration
System (MNLARS), whichever occurs first.

Sec. 17.

Laws 2000, chapter 486, section 4, as amended by Laws 2001, chapter 182,
section 2, is amended to read:


Sec. 4. [BOATHOUSE LEASES; SOUDAN UNDERGROUND MINE STATE
PARK.]

(a) In 1965, United States Steel Corporation conveyed land to the state of Minnesota
that was included in the Soudan underground mine state park, with certain lands at Stuntz
Bay subject to leases outstanding for employee boathouse sites.

(b) Notwithstanding Minnesota Statutes, sections 85.011, 85.012, subdivision 1, and
86A.05, subdivision 2, upon the expiration of a boathouse lease described under paragraph
(a), the commissioner of natural resources shall offer a new lease to the party in possession
at the time of lease expiration, or, if there has been a miscellaneous lease issued by the
Department of Natural Resources due to expiration of a lease described under paragraph
(a), upon its expiration to the lessee. The new lease shall be issued under the terms and
conditions of Minnesota Statutes, section 92.50, with the following limitations:

(1) the term of the lease shall be for the lifetime of the party being issued a renewed
lease and, if transferred, for the lifetime of the party to whom the lease is transferred;

(2) the new lease shall provide that the lease may be transferred only once and the
transfer must be to a person within the third degree of kindred or first cousin according to
civil law; and

(3) the commissioner shall limit the number of lessees per lease to no more than two
persons who have attained legal age; and

(4) the lease amount must not exceed 50 percent of the average market rate, based
on comparable private lease rates adjusted every five years
.

At the time of the new lease, the commissioner may offer, and after agreement with the
leaseholder, lease equivalent alternative sites to the leaseholder.

(c) The commissioner shall not cancel a boathouse lease described under paragraphs
(a) and (b) except for noncompliance with the lease agreement.

(d) The commissioner must issue a written receipt to the lessee for each lease
payment.

(d) (e) By January 15, 2001, the commissioner of natural resources shall report to
the senate and house environment and natural resources policy and finance committees on
boathouse leases in state parks. The report shall include information on:

(1) the number of boathouse leases;

(2) the number of leases that have forfeited;

(3) the expiration dates of the leases;

(4) the historical significance of the boathouses;

(5) recommendations on the inclusion of the land described in paragraph (d) within
the park boundary; and

(6) any other relevant information on the leases.

(e) (f) The commissioner of natural resources shall contact U.S.X. Corporation and
local units of government regarding the inclusion of the following lands within Soudan
underground mine state park:

(1) all lands located South of Vermillion Lake shoreline in Section 13, Township
62 North, Range 15 West;

(2) all lands located South of Vermillion Lake shoreline in the S1/2-SE1/4 of Section
14, Township 62 North, Range 15 West;

(3) NE1/4-SE1/4 and E1/2-NE1/4 of Section 22, Township 62 North, Range 15 West;

(4) all lands located South of Vermillion Lake shoreline in Section 23, Township
62 North, Range 15 West;

(5) all of Section 24, Township 62 North, Range 15 West;

(6) all lands North of trunk highway No. 169 located in Section 25, Township
62 North, Range 15 West;

(7) all lands North of trunk highway No. 169 located in Section 26, Township
62 North, Range 15 West;

(8) NE1/4-SE1/4 and SE1/4-NE1/4 of Section 27, Township 62 North, Range 15
West; and

(9) NW1/4 of Section 19, Township 62 North, Range 14 West.

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies to monthly lease payments made on or after that date.

Sec. 18.

Laws 2014, chapter 312, article 12, section 6, subdivision 5, as amended by
Laws 2015, First Special Session chapter 4, article 3, section 11, is amended to read:


Subd. 5.

Fish and Wildlife
Management

-0-
2,412,000

$3,000 in 2015 is from the heritage
enhancement account in the game and fish
fund for a report on aquatic plant management
permitting policies for the management
of narrow-leaved and hybrid cattail in a
range of basin types across the state. The
report shall be submitted to the chairs and
ranking minority members of the house of
representatives and senate committees with
jurisdiction over environment and natural
resources by December 15, 2014, and include
recommendations for any necessary changes
in statutes, rules, or permitting procedures.
This is a onetime appropriation.

$9,000 in 2015 is from the game and fish
fund for the commissioner, in consultation
with interested parties, agencies, and other
states, to develop a detailed restoration plan
to recover the historical native population of
bobwhite quail in Minnesota for its ecological
and recreational benefits to the citizens of the
state. The commissioner shall conduct public
meetings in developing the plan. No later
than January 15, 2015, the commissioner
must report on the plan's progress to the
legislative committees with jurisdiction over
environment and natural resources policy
and finance. This is a onetime appropriation.

$2,000,000 in 2015 is from the game and
fish fund for shooting sports facility grants
under Minnesota Statutes, section 87A.10.
The commissioner may spend up to $50,000
of this appropriation to administer the grant.
This is a onetime appropriation and is
available until June 30, 2017.

$400,000 in 2015 is from the heritage
enhancement account in the game and fish
fund for hunter and angler recruitment
and retention activities and grants to local
chapters of Let's Go Fishing of Minnesota
to provide community outreach to senior
citizens, youth, and veterans and for the costs
associated with establishing and recruiting
new chapters. The grants must be matched
with cash or in-kind contributions from
nonstate sources. Of this amount, $25,000
is for Asian Outdoor Heritage for youth
fishing recruitment efforts and outreach in
the metropolitan area. The commissioner
shall establish a grant application process
that includes a standard for ownership
of equipment purchased under the grant
program and contract requirements that
cover the disposition of purchased equipment
if the grantee no longer exists. Any
equipment purchased with state grant money
must be specified on the grant application
and approved by the commissioner. The
commissioner may spend up to three percent
of the appropriation to administer the grant.
This is a onetime appropriation and is
available until June 30, 2016 2017.

Sec. 19.

Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 5,
is amended to read:


Subd. 5.

Parks and Trails Management

74,064,000
73,650,000
Appropriations by Fund
2016
2017
General
24,967,000
24,427,000
Natural Resources
46,831,000
46,950,000
Game and Fish
2,266,000
2,273,000

$1,075,000 the first year and $1,075,000 the
second year are from the water recreation
account in the natural resources fund for
enhancing public water access facilities.

$5,740,000 the first year and $5,740,000 the
second year are from the natural resources
fund for state trail, park, and recreation area
operations. This appropriation is from the
revenue deposited in the natural resources
fund under Minnesota Statutes, section
297A.94, paragraph (e), clause (2).

$1,005,000 the first year and $1,005,000 the
second year are from the natural resources
fund for park and trail grants to local units of
government on land to be maintained for at
least 20 years for the purposes of the grants.
This appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (4). Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year. Up
to 2.5 percent of this appropriation may be
used to administer the grants.

$8,424,000 the first year and $8,424,000
the second year are from the snowmobile
trails and enforcement account in the
natural resources fund for the snowmobile
grants-in-aid program. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.

$1,360,000 the first year and $1,360,000
the second year are from the natural
resources fund for the off-highway vehicle
grants-in-aid program. Of this amount,
$1,210,000 each year is from the all-terrain
vehicle account; and $150,000 each year is
from the off-highway motorcycle account.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.

$75,000 the first year and $75,000 the second
year are from the cross-country ski account
in the natural resources fund for grooming
and maintaining cross-country ski trails in
state parks, trails, and recreation areas.

$250,000 the first year and $250,000 the
second year are from the state land and
water conservation account (LAWCON)
in the natural resources fund for priorities
established by the commissioner for eligible
state projects and administrative and
planning activities consistent with Minnesota
Statutes, section 84.0264, and the federal
Land and Water Conservation Fund Act.
Any unencumbered balance does not cancel
at the end of the first year and is available for
the second year.

$968,000 the first year and $968,000 the
second year are from the off-road vehicle
account in the natural resources fund. Of
this amount, $568,000 each year is for parks
and trails management for off-road vehicle
purposes; $325,000 each year is for the
off-road vehicle grant in aid program; and
$75,000 each year is for a new full-time
employee position or contract in northern
Minnesota to work in conjunction with the
Minnesota Four-Wheel Drive Association
to address off-road vehicle touring routes
and other issues related to off-road vehicle
activities. Of this appropriation, the $325,000
each year is onetime.

$65,000 the first year is from the water
recreation account in the natural resources
fund to cooperate with local units of
government in marking routes and
designating river accesses and campsites
under Minnesota Statutes, section 85.32.
This is a onetime appropriation and is
available until June 30, 2019.

$190,000 the first year is for a grant to the
city of Virginia for the additional cost of
supporting a trail due to the rerouting of
U.S. Highway No. 53. This is a onetime
appropriation and is available until June 30,
2019.

$50,000 the first year is for development of
a master plan for the Mississippi Blufflands
Trail, including work on possible extensions
or connections to other state or regional
trails. This is a onetime appropriation that is
available until June 30, 2017.

$61,000 from the natural resources fund the
first year is for a grant to the city of East
Grand Forks for payment under a reciprocity
agreement for the Red River State Recreation
Area.

$500,000 the first year is for restoration or
replacement of a historic trestle bridge in
Blackduck. This is a onetime appropriation
and is available until June 30, 2019.

The base for parks and trails operations in
the natural resources fund in fiscal year 2018
and thereafter is $46,450,000.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 20.

Laws 2015, First Special Session chapter 4, article 4, section 131, is amended
to read:


Sec. 131. SURPLUS STATE LAND SALES.

The school trust lands director shall identify, in consultation with the commissioner
of natural resources, at least $5,000,000 in state-owned lands suitable for sale or exchange
with school trust lands
. The lands identified shall not be within a unit of the outdoor
recreation system under Minnesota Statutes, section 86A.05, an administrative site, or trust
land. The commissioner shall sell or exchange at least $3,000,000 worth of lands identified
under this section by June 30, 2017. Land exchanged under this section may be exchanged
in accordance with Minnesota Statutes, section 94.3495. The value of the surplus land
exchanged shall serve as compensation to the permanent school fund as provided under
Minnesota Statutes, section 84.027, subdivision 18, paragraph (b). Notwithstanding the
restrictions on sale of riparian land and the public sale provisions under Minnesota
Statutes, sections 92.45, 94.09, and 94.10, the commissioner may offer the surplus land,
including land bordering public water, for public or private sale.
Notwithstanding
Minnesota Statutes, section 94.16, subdivision 3, or any other law to the contrary, the
amount of the proceeds from the sale of lands that exceeds the actual expenses of selling
the lands must be deposited in the school trust lands account and used to extinguish the
school trust interest as provided under Minnesota Statutes, section 92.83, on school trust
lands that have public water access sites or old growth forests located on them.

Sec. 21. APPROPRIATION REALLOCATION.

Notwithstanding Laws 2013, chapter 137, article 3, section 4, paragraph (o), and
Laws 2015, First Special Session chapter 2, article 3, section 4, paragraph (b), the
Minneapolis Park and Recreation Board may allocate its share of the distribution of fiscal
years 2016 and 2017 funds under Minnesota Statutes, section 85.53, subdivision 3, to the
Minneapolis Chain of Lakes, Mississippi Gorge, Above the Falls, and Central Mississippi
Riverfront Regional Parks in accordance with the most recent priority rankings that the
Minneapolis Park and Recreation Board has submitted to the Metropolitan Council. This
reallocation of funds is anticipated to result in $500,000 in federal funds to match extant
parks and trails fund appropriations.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 5

BROADBAND

Section 1. APPROPRIATIONS.

The sums shown in the columns under "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2015, First Special Session
chapter 1, article 1, or other law to the specified agencies. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figure "2017" used in this article means that the appropriations listed
under it are available for the fiscal year ending June 30, 2017.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT.

$
-0-
$
85,000,000

Border-To-Border Broadband
Development Program.
(a) $85,000,000
in fiscal year 2017 is appropriated to
the commissioner of employment and
economic development for deposit in the
border-to-border broadband fund account
created under Minnesota Statutes, section
116J.396, and may be used for the purposes
provided in Minnesota Statutes, section
116J.395. This is a onetime appropriation.

(b) Of the appropriation in paragraph (a),
the commissioner may include the following
activities related to measuring progress
toward the state's broadband goals established
in Minnesota Statutes, section 237.012,
as administrative costs under Minnesota
Statutes, section 116J.395. Administrative
costs may include the following activities
related to measuring progress toward the
state's broadband goals established in
Minnesota Statutes, section 237.012:

(1) collecting broadband deployment data
from Minnesota providers, verifying its
accuracy through on-the-ground testing, and
creating state and county maps available
to the public showing the availability of
broadband service at various upload and
download speeds throughout Minnesota;

(2) analyzing the deployment data collected
to help inform future investments in
broadband infrastructure; and

(3) conducting business and residential
surveys that measure broadband adoption
and use in the state.

(c) Data provided by a broadband provider
under this paragraph is nonpublic data
under Minnesota Statutes, section 13.02,
subdivision 9. Maps produced under this
paragraph are public data under Minnesota
Statutes, section 13.03.

Sec. 3.

Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:


116J.394 DEFINITIONS.

(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
the meanings given them.

(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
subdivision 1, paragraph (b).

(c) "Broadband infrastructure" means networks of deployed telecommunications
equipment and technologies necessary to provide high-speed Internet access and other
advanced telecommunications services for end users.

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

(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
final leg connecting the broadband service provider's network to the end-use customer's
on-premises telecommunications equipment.

(f) "Middle-mile infrastructure" means broadband infrastructure that links a
broadband service provider's core network infrastructure to last-mile infrastructure.

(g) "Political subdivision" means any county, city, town, school district, special
district or other political subdivision, or public corporation.

(h) "Underserved areas" means areas of Minnesota in which households or
businesses lack access to wire-line broadband service at speeds that meet the state
broadband goals
of ten to 20 at least 100 megabits per second download and five to ten
at least 20 megabits per second upload.

(i) "Unserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband service, as defined in section 116J.39 at speeds of at
least 25 megabits per second download and at least three megabits per second upload
.

Sec. 4.

Minnesota Statutes 2014, section 116J.396, subdivision 2, is amended to read:


Subd. 2.

Expenditures.

Money in the account may be used only:

(1) for grant awards made under section 116J.395, including costs incurred by the
Department of Employment and Economic Development to administer that section not
to exceed three percent of any expenditures made from the border-to-border broadband
fund account
;

(2) to supplement revenues raised by bonds sold by local units of government for
broadband infrastructure development; or

(3) to contract for the collection of broadband deployment data from providers and
the creation of maps showing the availability of broadband service.

Sec. 5.

Minnesota Statutes 2014, section 237.012, subdivision 1, is amended to read:


Subdivision 1.

Universal access and high-speed goal.

It is a state goal that as
soon as possible, but no later than 2015, all state residents and businesses have access to
high-speed broadband that provides minimum download speeds of ten to 20 megabits per
second and minimum upload speeds of five to ten megabits per second.
:

(1) no later than 2022, all Minnesota businesses and homes have access to
high-speed broadband that provides minimum download speeds of at least 25 megabits
per second and minimum upload speeds of at least three megabits per second; and

(2) no later than 2026, all Minnesota businesses and homes have access to at least
one provider of broadband with download speeds of at least 100 megabits per second and
upload speeds of at least 20 megabits per second.

ARTICLE 6

EQUITY

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal year indicated
for each purpose. The figures "2016" and "2017" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2016,
or June 30, 2017, respectively.

APPROPRIATIONS
Available for the Year
Ending June 30
2016
2017

Sec. 2. EQUITY APPROPRIATIONS

Subdivision 1.

Total Appropriation

$
-0-
$
87,130,000

Subd. 2.

Department of Employment and
Economic Development

-0-
60,557,000

(a) $1,420,000 in fiscal year 2017 is for
grants to the Neighborhood Development
Center for small business programs. This is a
onetime appropriation and is available until
June 30, 2019.

Of this amount, $770,000 is for the small
business development program, including:

(1) $600,000 for training, lending, and
business services for aspiring business
owners, and expansion of services for
immigrants in suburban communities; and

(2) $170,000 is for Neighborhood
Development Center model outreach and
training activities in greater Minnesota.

Of this amount, $650,000 is for grants for the
small business incubator program, including:

(1) $400,000 for capital improvements to
existing small business incubators; and

(2) $250,000 for the creation of two
additional small business incubators.

(b) $2,500,000 in fiscal year 2017 is for
the Minnesota Initiative program under
Minnesota Statutes, section 116M.18.
Priority for loans made from this
appropriation shall be given to businesses
operated by women of color. This is a
onetime appropriation and is available until
June 30, 2019.

(c) $5,550,000 in fiscal year 2017 is for
a competitive grant program to provide
grants to organizations that provide support
services for individuals, such as job training,
employment preparation, internships,
assistance to fathers in supporting their
children, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants
made under this section must focus on
low-income communities, young adults from
families with a history of intergenerational
poverty, and communities of color. All grant
recipients are subject to the requirements of
section 35. This is a onetime appropriation
and is available until June 30, 2019.

(d) $2,100,000 in fiscal year 2017 is for
grants to YWCA organizations to provide job
training services and workforce development
programs and services, including job skills
training and counseling necessary to secure
a child development associate credential and
to develop a career path in early childhood
education. This is a onetime appropriation
and is available until June 30, 2019.

(e) $4,250,000 in fiscal year 2017 is for a
grant to EMERGE Community Development,
in collaboration with community partners, for
services targeting Minnesota communities
with the highest concentrations of African
and African-American joblessness to provide
employment readiness training, credentialed
training placement, job placement and
retention services, supportive services for
hard-to-employ individuals, and a general
education development fast track and
adult diploma program. This is a onetime
appropriation and is available until June 30,
2019.

(f) $5,050,000 in fiscal year 2017 is for
a grant to the Metropolitan Economic
Development Association (MEDA) for
statewide business development and
assistance services, including services to
entrepreneurs with businesses that have
the potential to create job opportunities for
unemployed and underemployed people. The
grants must be awarded with an emphasis
on minority-owned businesses. This is a
onetime appropriation and is available until
June 30, 2019.

Of this appropriation, $3,250,000 is for a
revolving loan fund to provide additional
minority-owned businesses with access to
capital.

(g) $1,500,000 in fiscal year 2017 is for a
grant to the Minneapolis Foundation for
a strategic intervention program designed
to target and connect program participants
to meaningful, sustainable living-wage
employment. This is a onetime appropriation
and is available until June 30, 2019.

(h) $407,000 in fiscal year 2017 is for a
grant to Twin Cities R!SE, in collaboration
with Metro Transit and Hennepin Technical
College, for the Metro Transit technician
training program. This is a onetime
appropriation and is available until June 30,
2019.

(i)_$4,800,000 in fiscal year 2017 is for
the creation of additional multiemployer,
sector-based career connections pathways.
This is a onetime appropriation and is
available until June 30, 2019. $4,500,000 of
this amount is for a grant to Hennepin County
to establish pathways using the Hennepin
Career Connections framework. $300,000
of this amount is for a grant to Hennepin
County to establish a pilot program based on
the career connections pathways framework
outside the seven-county metropolitan area,
in collaboration with another local unit of
government.

(j) $1,500,000 in fiscal year 2017 is for the
high-wage, high-demand, nontraditional
jobs grant program under Minnesota
Statutes, section 116L.99. This is a onetime
appropriation and is available until June 30,
2019.

(k) $8,000,000 in fiscal year 2017 is for the
youth-at-work competitive grant program
under Minnesota Statutes, section 116L.562,
subdivision 3. This is a onetime appropriation
and is available until June 30, 2019. Of
this amount, $6,000,000 is for increases to
existing applicants who were awarded grants
in fiscal year 2016 and 2017, and $2,000,000
is to fund existing or new eligible applicants.

(l) $4,000,000 in fiscal year 2017 is for a
competitive grant program for grants to
organizations providing services to relieve
economic disparities in the Southeast Asian
community through workforce recruitment,
development, job creation, assistance of
smaller organizations to increase capacity,
and outreach. Grant recipients under this
paragraph are subject to the requirements of
section 35. This is a onetime appropriation
and is available until June 30, 2019.

(m) $1,500,000 in fiscal year 2017 is for
a grant to Latino Communities United
in Service (CLUES) to expand culturally
tailored programs that address employment
and education skill gaps for working parents
and underserved youth by providing new
job skills training to stimulate higher wages
for low-income people, family support
systems designed to reduce intergenerational
poverty, and youth programming to promote
educational advancement and career
pathways. At least 50 percent of this amount
must be used for programming targeted
at greater Minnesota. This is a onetime
appropriation and is available until June 30,
2019.

(n) $880,000 in fiscal year 2017 is for a grant
to the American Indian Opportunities and
Industrialization Center, in collaboration
with the Northwest Indian Community
Development Center, to reduce academic
disparities for American Indian students
and adults. The grant funds may be used to
provide:

(1) student tutoring and testing support
services;

(2) training in information technology;

(3) assistance in obtaining a GED;

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

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

(6) contextualized adult basic education.

This is a onetime appropriation and is
available until June 30, 2019.

(o) $1,000,000 in fiscal year 2017 is for
a grant to the White Earth Nation for the
White Earth Nation Integrated Business
Development System to provide business
assistance with workforce development,
outreach, technical assistance, infrastructure
and operational support, financing, and other
business development activities. This is a
onetime appropriation and is available until
June 30, 2019.

(p) $6,000,000 is for the emerging
entrepreneur fund program. This is a onetime
appropriation and is available until June 30,
2019. Of this amount, $5,000,000 is for
small business lending and shall be deposited
in the emerging entrepreneur fund special
revenue account under Minnesota Statutes,
section 116J.55, and $1,000,000 is for grants
for small business technical assistance.

(q) $5,100,000 is for the Pathways to
Prosperity adult workforce development
competitive grant program. When
awarding grants under this paragraph, the
commissioner must give preference to any
previous grantee with demonstrated success
in job training and placement for hard-to-train
individuals. A portion of the grants must
provide year-end educational and experiential
learning opportunities for teens and young
adults that provide careers in the construction
industry. This is a onetime appropriation and
is available until June 30, 2019.

(r) $3,000,000 is for the capacity
building grant program to assist nonprofit
organizations offering or seeking to offer
workforce development and economic
development programming. This is a
onetime appropriation and is available until
June 30, 2019.

(s) $2,000,000 in fiscal year 2017 is for a grant
to Youthprise for positive youth development,
community engagement, legal services, and
capacity building for community-based
organizations serving Somali youth,
including youth engagement, prevention,
and intervention activities that help build
the resiliency of the Somali Minnesotan
community and address challenges facing
Somali youth. Funded projects must provide
culturally and linguistically relevant services.
To the maximum extent possible, 50 percent
of the funding must be distributed in greater
Minnesota, and 50 percent of funding must
be distributed within the metropolitan area,
as defined in Minnesota Statutes, section
473.121, subdivision 2. This is a onetime
appropriation and is available until June 30,
2019.

Subd. 3.

Department of Administration

-0-
2,500,000

$2,500,000 is to assess, upgrade, and enhance
accounting and procurement software to
facilitate targeted group business utilization
and data reporting.

Subd. 4.

Department of Corrections

-0-
350,000

$350,000 is for a grant to a nonprofit
organization to provide job skills training
to individuals who have been released from
incarceration for a felony-level offense in the
preceding 12 months. To be eligible for the
grant, the organization shall:

(1) provide housing or rental assistance for
program participants;

(2) provide employment opportunities for
program participants;

(3) require program participants, when
appropriate, to receive counseling for alcohol
or chemical dependency; and

(4) serve a primarily minority population.

This is a onetime appropriation and is
available until June 30, 2019.

Subd. 5.

Minnesota Housing Finance Agency

-0-
500,000

$500,000 is for a grant to Build Wealth MN to
provide a family stabilization plan program
including program outreach, financial
literacy education, and budget and debt
counseling. This is a onetime appropriation
and is available until June 30, 2019.

Subd. 6.

Department of Agriculture

-0-
5,000,000

$5,000,000 shall be deposited in the good
food access account created in Minnesota
Statutes, section 17.1017, subdivision 3. This
is a onetime appropriation and is available
until June 30, 2019.

Subd. 7.

Department of Education

-0-
10,200,000

(a) $1,500,000 in fiscal year 2017 is for a first
class city school district or any other school
district with more than 40 percent minority
students to provide tuition scholarships
or stipends to eligible employees for a
nonconventional teacher residency pilot
program established under Minnesota
Statutes, section 122A.09, subdivision 10,
paragraph (a). The program shall provide
tuition scholarships or stipends to enable
education or teaching assistants or other
nonlicensed employees of a first class city
school district or any other school district
with more than 40 percent minority students
who hold a bachelor's degree from an
accredited college or university and who seek
an education license to participate in a Board
of Teaching-approved nonconventional
teacher residency program under Minnesota
Statutes, section 122A.09, subdivision 10,
paragraph (a). Any funds not awarded by
June 1, 2017, may be reallocated among the
remaining districts if the total cost of the
program exceeds the original allocation. This
is a onetime appropriation and is available
until June 30, 2019.

(b) $3,200,000 in fiscal year 2017 is for grants
as provided under this paragraph. This is a
onetime appropriation and is available until
June 30, 2019. Of this amount, $1,200,000
is for grants to adult basic education (ABE)
program providers to establish up to four
college readiness academies. A college
readiness academy is a partnership between
ABE programs, with support from Minnesota
State Colleges and Universities, to prepare
ABE students to successfully enter college
and complete credit-bearing courses needed
for career-related credentials. The academies
must include academic skill building for
college success, integrated sector-specific
academic training when applicable, and
intensive navigation and educational
support for the program participants. The
commissioner must award one grant to the
International Institute of Minnesota. The
remaining grant awards must be based on the
following criteria:

(1) program capacity;

(2) program need for funding; and

(3) geographic balance of programs around
the state.

Of the amount appropriated under this
paragraph, $1,200,000 is for grants to
ABE program providers that establish
a contextualized GED or adult diploma
program to prepare adults for successful
GED or adult diploma completion and
successful entry into credentialing programs
leading to careers. The programs must:

(1) provide program navigation and academic
supports;

(2) be connected to an ABE consortium and
partner with the Department of Employment
and Economic Development;

(3) provide instruction in one of the state's six
demand sectors identified by the Department
of Employment and Economic Development,
serving participants in the top three ABE
levels of ABE intermediate high, adult
secondary education (ASE) low, or ASE
high;

(4) have a history of success working with
the target populations; and

(5) demonstrate how a GED or an adult
diploma plus the designated postsecondary
credential will lead to a career.

The commissioner shall award grants to
four contextualized GED or adult diploma
programs based on program capacity, need,
and geographic balance of programs around
the state. One grant must be awarded to
Summit Academy OIC.

Of the amount appropriated under this
paragraph, $800,000 is for grants to eight
ABE programs to provide ABE navigating
and advising support services. The programs
must help ABE students:

(1) explore careers;

(2) develop personalized learning;

(3) plan for a postsecondary education and
career;

(4) attain personal learning goals;

(5) complete a standard adult high school
diploma under Minnesota Statutes, section
124D.52, subdivisions 8 and 9, or complete
a GED;

(6) develop time management and study
skills;

(7) develop critical academic and
career-related skills needed to enroll in a
postsecondary program without need for
remediation;

(8) navigate the registration process for a
postsecondary program;

(9) understand postsecondary program
requirements and instruction expectations;
and

(10) resolve personal issues related to mental
health, domestic abuse, chemical abuse,
homelessness, and other issues that, if left
unaddressed, are barriers to enrolling in and
completing a postsecondary program.

The commissioner must award ABE
navigating and advising support services
grants to eight ABE programs. The
commissioner shall award grants to programs
based on program capacity, need, and
geographic balance of programs around
the state. The commissioner shall give
priority to ABE programs already providing
navigating and advising support services.
The commissioner shall allocate the grant
funding based on the number of ABE
program participants the program served in
the prior year.

(c) $2,750,000 is for the Minnesota's
future teachers grant program under
Minnesota Statutes, section 136A.123.
The commissioner of management and
budget shall transfer this amount to the
Office of Higher Education for the purposes
of this appropriation. This is a onetime
appropriation and is available until June 30,
2019.

(d) $2,750,000 is for the stepping up for kids
financial assistance account under section
33. The commissioner of management and
budget shall transfer this amount to the
Office of Higher Education for the purposes
of this appropriation. This is a onetime
appropriation and is available until June 30,
2019.

Subd. 8.

Minnesota Management and Budget

-0-
3,615,000

$3,615,000 is for administrative expenses
related to grants appropriated in this article.
The commissioner shall transfer funds in an
amount to be determined by the commissioner
to agencies administering competitive grant
programs and serving as fiscal agents for
grants appropriated in this article. The
transfer to each agency may not exceed four
percent of the amount appropriated to that
agency. This is a onetime appropriation and
is available until June 30, 2019.

Subd. 9.

Department of Human Services

-0-
8,000

$18,000 is for the MAXIS system. This is a
onetime appropriation.

Sec. 3.

Minnesota Statutes 2014, section 16C.10, subdivision 6, is amended to read:


Subd. 6.

Expenditures under specified amounts.

A competitive solicitation
process described in this chapter is not required for the acquisition of goods, services,
construction, and utilities in an amount of $5,000 or less or as authorized by section
16C.16, subdivisions 6, paragraph (b), 6a, paragraph (b), and 7, paragraph (b)
.

Sec. 4.

Minnesota Statutes 2014, section 16C.16, subdivision 6, is amended to read:


Subd. 6.

Purchasing methods.

(a) The commissioner may award up to a six
percent preference in the amount bid for specified goods or services to small targeted
group businesses.

(b) The commissioner may award a contract for goods, services, or construction
directly to a small business or small targeted group business without going through a
competitive solicitation process up to a total contract award value, including extension
options, of $25,000.

(b) (c) The commissioner may designate a purchase of goods or services for
award only to small businesses or small targeted group businesses if the commissioner
determines that at least three small businesses or small targeted group businesses are likely
to bid respond to a solicitation.

(c) (d) The commissioner, as a condition of awarding a construction contract or
approving a contract for professional or technical services, may set goals that require
the prime contractor to subcontract a portion of the contract to small businesses or
small targeted group businesses. The commissioner must establish a procedure for
granting waivers from the subcontracting requirement when qualified small businesses
or small targeted group businesses are not reasonably available. The commissioner may
establish financial incentives for prime contractors who exceed the goals for use of small
business or small targeted group business subcontractors and financial penalties for prime
contractors who fail to meet goals under this paragraph. The subcontracting requirements
of this paragraph do not apply to prime contractors who are small businesses or small
targeted group businesses.

Sec. 5.

Minnesota Statutes 2015 Supplement, section 16C.16, subdivision 6a, is
amended to read:


Subd. 6a.

Veteran-owned small businesses.

(a) Except when mandated by the
federal government as a condition of receiving federal funds, the commissioner shall
award up to a six percent preference, but no less than the percentage awarded to any
other group under this section, in the amount bid on state procurement to certified small
businesses that are majority-owned and operated by veterans.

(b) The commissioner may award a contract for goods, services, or construction
directly to a veteran-owned small business without going through a competitive solicitation
process up to a total contract award value, including extension options, of $25,000.

(c) The commissioner may designate a purchase of goods or services for award only
to a veteran-owned small business if the commissioner determines that at least three
veteran-owned small businesses are likely to respond to a solicitation.

(d) The commissioner, as a condition of awarding a construction contract or
approving a contract for professional or technical services, may set goals that require
the prime contractor to subcontract a portion of the contract to a veteran-owned small
business. The commissioner must establish a procedure for granting waivers from the
subcontracting requirement when qualified veteran-owned small businesses are not
reasonably available. The commissioner may establish financial incentives for prime
contractors who exceed the goals for use of veteran-owned small business subcontractors
and financial penalties for prime contractors who fail to meet goals under this paragraph.
The subcontracting requirements of this paragraph do not apply to prime contractors
who are veteran-owned small businesses.

(b) (e) The purpose of this designation is to facilitate the transition of veterans from
military to civilian life, and to help compensate veterans for their sacrifices, including but
not limited to their sacrifice of health and time, to the state and nation during their military
service, as well as to enhance economic development within Minnesota.

(c) (f) Before the commissioner certifies that a small business is majority-owned and
operated by a veteran, the commissioner of veterans affairs must verify that the owner of
the small business is a veteran, as defined in section 197.447.

Sec. 6.

Minnesota Statutes 2014, section 16C.16, subdivision 7, is amended to read:


Subd. 7.

Economically disadvantaged areas.

(a) Except as otherwise provided in
paragraph (b),
The commissioner may award up to a six percent preference in the amount
bid
on state procurement to small businesses located in an economically disadvantaged area.

(b) The commissioner may award up to a four percent preference in the amount bid
on state construction to small businesses located in an economically disadvantaged area.

(b) The commissioner may award a contract for goods, services, or construction
directly to a small business located in an economically disadvantaged area without going
through a competitive solicitation process up to a total contract award value, including
extension options, of $25,000.

(c) The commissioner may designate a purchase of goods or services for award only
to a small business located in an economically disadvantaged area if the commissioner
determines that at least three small businesses located in an economically disadvantaged
area are likely to respond to a solicitation.

(d) The commissioner, as a condition of awarding a construction contract or
approving a contract for professional or technical services, may set goals that require the
prime contractor to subcontract a portion of the contract to a small business located in
an economically disadvantaged area. The commissioner must establish a procedure for
granting waivers from the subcontracting requirement when qualified small businesses
located in an economically disadvantaged area are not reasonably available. The
commissioner may establish financial incentives for prime contractors who exceed the
goals for use of subcontractors that are small businesses located in an economically
disadvantaged area and financial penalties for prime contractors who fail to meet goals
under this paragraph. The subcontracting requirements of this paragraph do not apply to
prime contractors who are small businesses located in an economically disadvantaged area.

(c) (e) A business is located in an economically disadvantaged area if:

(1) the owner resides in or the business is located in a county in which the median
income for married couples is less than 70 percent of the state median income for married
couples;

(2) the owner resides in or the business is located in an area designated a labor
surplus area by the United States Department of Labor; or

(3) the business is a certified rehabilitation facility or extended employment provider
as described in chapter 268A.

(d) (f) The commissioner may designate one or more areas designated as targeted
neighborhoods under section 469.202 or as border city enterprise zones under section
469.166 as economically disadvantaged areas for purposes of this subdivision if the
commissioner determines that this designation would further the purposes of this section.
If the owner of a small business resides or is employed in a designated area, the small
business is eligible for any preference provided under this subdivision.

(e) (g) The Department of Revenue shall gather data necessary to make the
determinations required by paragraph (c) (e), clause (1), and shall annually certify counties
that qualify under paragraph (c) (e), clause (1). An area designated a labor surplus area
retains that status for 120 days after certified small businesses in the area are notified of
the termination of the designation by the United States Department of Labor.

Sec. 7.

Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision
to read:


Subd. 7a.

Designated purchases and subcontractor goals.

(a) When designating
purchases directly to a business in accordance with this section, the commissioner may
also designate a purchase of goods or services directly to any combination of small
businesses, small targeted group businesses, veteran-owned small businesses or small
businesses located in an economically disadvantaged area if the commissioner determines
that at least three businesses in two or more of the disadvantaged business categories
are likely to respond.

(b) When establishing subcontractor goals under this section, the commissioner may
set goals that require the prime contractor to subcontract a portion of the contract to any
combination of a small business, small targeted group business, veteran-owned small
business, or small business located in an economically disadvantaged area.

Sec. 8.

Minnesota Statutes 2014, section 16C.16, subdivision 11, is amended to read:


Subd. 11.

Procurement procedures.

All laws and rules pertaining to solicitations,
bid evaluations, contract awards, and other procurement matters apply equally to
procurements designated for small businesses or small targeted group businesses involving
any small business, small targeted group business, veteran-owned business, or small
business located in an economically disadvantaged area
. In the event of conflict with other
rules, section 16C.15 and rules adopted under it govern, if section 16C.15 applies. If it
does not apply, sections 16C.16 to 16C.21 and rules adopted under those sections govern.

Sec. 9.

[17.1017] GOOD FOOD ACCESS PROGRAM.

Subdivision 1.

Definitions.

(a) For purposes of this section, unless the language
or context indicates that a different meaning is intended, the following terms have the
meanings given them.

(b) "Account" means the good food access account established in subdivision 3.

(c) "Commissioner" means the commissioner of agriculture.

(d) "Economic or community development financial institution (ECDFI)" means
a lender, including but not limited to a community development financial institution
(CDFI), an economic development district (EDD), a political subdivision of the state, a
microenterprise firm, or a nonprofit community lending organization that has previous
experience lending to a food retailer, producer, or another healthy food enterprise in an
underserved community in a low-income or moderate-income area, as defined in this
section; has been in existence and operating prior to January 1, 2014; has demonstrated
the ability to raise matching capital and in-kind services to leverage appropriated money;
has the demonstrated ability to underwrite loans and grants; and has partnered previously
with nonprofit healthy food access, public health, or related governmental departments or
community organizations.

(e) "Farmers' market" means an association of three or more persons who assemble
at a defined location that is open to the public for the purpose of selling directly to the
consumer the products of a farm or garden occupied and cultivated by the person selling
the product.

(f) "Financing" means loans, including low-interest loans, zero-interest loans,
forgivable loans, and other types of financial assistance other than grants.

(g) "Food hub" means a centrally located facility with a business management
structure that facilitates the aggregation, storage, processing, distribution, marketing, and
sale of locally or regionally produced food products, and which may include a small-scale
retail grocery operation.

(h) "Good Food Access Program Advisory Committee" means the Good Food
Access Program Advisory Committee under section 17.1018.

(i) "Grocery store" means a for-profit, not-for-profit, or cooperative self-service retail
establishment that sells primarily meat, fish, seafood, fruits, vegetables, dry groceries,
and dairy products and may also sell household products, sundries, and other products.
Grocery store includes a supermarket or a large-, mid-, or small-scale retail grocery
establishment and may include a mobile food market or a delivery service operation.

(j) "Low-income area" means a census tract as reported in the most recently
completed decennial census published by the United States Bureau of the Census that has
a poverty rate of at least 20 percent or in which the median family income does not exceed
80 percent of the greater of the statewide or metropolitan median family income.

(k) "Moderate-income area" means a census tract as reported in the most recently
completed decennial census published by the United States Bureau of the Census in which
the median family income is between 81 percent and 95 percent of the median family
income for that area.

(l) "Mobile food market" means a self-contained for-profit, not-for-profit, or
cooperative retail grocery operation located in a movable new or renovated truck, bus, or
other vehicle that is used to store, prepare, display, and sell primarily meat, fish, seafood,
fruits, vegetables, dry groceries, and dairy products and may also be used to sell a nominal
supply of cooking utensils and equipment and other household products and sundries.

(m) "Program" means the good food access program established in this section.

(n) "Small food retailer" means a small-scale retail food outlet, other than a grocery
store as defined in this section. Small food retailer includes, but is not limited to, a corner
store, convenience store, farmers' market, mobile food market, and a retail food outlet
operated by an emergency food program or food hub.

(o) "Technical assistance" means needs-based project assistance provided through
the program, including sustainability-focused individualized guidance, presentations,
workshops, trainings, printed materials, mentorship opportunities, peer-to-peer
opportunities, or other guidance and resources on relevant topics such as business
planning, sales projections, cash flow, succession planning, financing, fund-raising,
marketing, food preparation demonstrations, and workforce training.

(p) "Underserved community" means a census tract that is federally designated
as a food desert by the United States Department of Agriculture, or a census tract in a
low-income or moderate-income area that includes a substantial subpopulation such as
the elderly or the disabled that has low supermarket access, regardless of distance, due
to lack of transportation.

Subd. 2.

Program established.

(a) A good food access program is established within
the Department of Agriculture to increase the availability of and access to affordable,
nutritious, and culturally appropriate food, including fresh fruits and vegetables, for
underserved communities in low-income and moderate-income areas by providing financial
support and sustainable public-private projects to open, renovate, or expand the operations
of grocery stores and small food retailers; expanding access to credit and reducing barriers
to investment in underserved communities in low- and moderate-income areas; and to
provide technical assistance, primarily for small food retailers with demonstrated need,
to increase availability and sustainable sales of affordable, nutritious, and culturally
appropriate food, including fresh fruits and vegetables, to underserved communities in
low-income and moderate-income areas. The commissioner, in cooperation with public
and private partners, shall establish and implement the program as provided in this section.

(b) The good food access program shall be comprised of state or private grants, loans,
or other types of financial and technical assistance for the establishment, construction,
expansion of operations, or renovation of grocery stores and small food retailers to increase
the availability of and access to affordable fresh produce and other nutritious, culturally
appropriate food to underserved communities in low-income and moderate-income areas.

Subd. 3.

Good food access account.

A good food access account is established in
the agricultural fund. The account consists of money appropriated by the legislature to the
commissioner, as provided by law, and any other money donated, allotted, transferred,
or otherwise provided to the account. Money in the account may only be expended on
projects receiving financing, grants, or other financial and technical assistance as provided
under this section, and shall be used, to the extent practicable, to leverage other forms of
public and private financing or financial assistance for the projects.

Subd. 4.

Program administration.

(a) The commissioner shall be the administrator
of the account for auditing purposes and shall establish program requirements and a
competitive process for projects applying for financial and technical assistance.

(b) The commissioner may receive money or other assets from any source, including
but not limited to philanthropic foundations and financial investors, for deposit into the
account, and shall direct the investment of the account and credit to the account interest
and earnings from account investments.

(c) Through issuance of requests for proposals, the commissioner may contract
with one or more qualified economic or community development financial institutions
to manage the financing component of the program and with one or more qualified
organizations or public agencies with financial or other program-related expertise to
manage the provision of technical assistance to project grantees.

(d) Money in the account at the close of each fiscal year shall remain in the account
and shall not cancel. In each biennium, the commissioner shall determine the appropriate
proportion of money to be allocated to loans, grants, technical assistance, and any other
types of financial assistance.

(e) To encourage public-private, cross-sector collaboration and investment in the
account and program and to ensure that the program intent is maintained throughout
implementation, the commissioner shall convene and maintain the Good Food Access
Program Advisory Committee.

(f) The commissioner, in cooperation with the Good Food Access Program Advisory
Committee, shall manage the program, establish program criteria, facilitate leveraging of
additional public and private investment, and promote the program statewide.

(g) The commissioner, in cooperation with the Good Food Access Program Advisory
Committee, shall establish annual monitoring and accountability mechanisms for all
projects receiving financing or other financial or technical assistance through this program.

Subd. 5.

Eligible projects.

(a) The commissioner, in cooperation with the program
partners and advisors, shall establish project eligibility guidelines and application
processes to be used to review and select project applicants for financing or other financial
or technical assistance. All projects must be located in an underserved community or must
serve primarily underserved communities in low-income and moderate-income areas.

(b) Projects eligible for financing include, but are not limited to, new construction,
renovations, expansions of operations, and infrastructure upgrades of grocery stores and
small food retailers to improve the availability of and access to affordable, nutritious food,
including fresh fruits and vegetables, and build capacity in areas of greatest need.

(c) Projects eligible for other types of financial assistance such as grants or
technical assistance are primarily projects throughout the state, including, but not limited
to, feasibility studies, new construction, renovations, expansion of operations, and
infrastructure upgrades of small food retailers.

Subd. 6.

Qualifications for receipt of financing and other financial or technical
assistance.

(a) An applicant for receipt of financing through an economic or community
development financial institution, or an applicant for a grant or other financial or technical
assistance, may be a for-profit or not-for-profit entity, including, but not limited to, a sole
proprietorship, limited liability company, corporation, cooperative, nonprofit organization,
or nonprofit community development organization. Each applicant must:

(1) demonstrate community engagement in and support for the project;

(2) demonstrate the capacity to successfully implement the project;

(3) demonstrate a viable plan for long-term sustainability, including the ability to
increase the availability of and access to affordable, nutritious, and culturally appropriate
food, including fresh fruits and vegetables, for underserved communities in low-income
and moderate-income areas; and

(4) demonstrate the ability to repay the debt, to the extent that the financing requires
repayment.

(b) Each applicant must also agree to comply with the following conditions for a
period of at least five years, except as otherwise specified in this section:

(1) accept Supplemental Nutrition Assistance Program (SNAP) benefits;

(2) apply to accept Special Supplemental Nutrition Program for Women, Infants,
and Children (WIC) benefits and, if approved, accept WIC benefits;

(3) allocate at least 30 percent of retail space for the sale of affordable, nutritious,
and culturally appropriate foods, including fruits and vegetables, low-fat and nonfat
dairy, fortified dairy substitute beverages such as soy-based or nut-based dairy substitute
beverages, whole grain-rich staple foods, meats, poultry, fish, seafood, and other proteins,
consistent with nutrition standards in national guidelines described in the current United
States Department of Agriculture Dietary Guidelines for Americans;

(4) comply with all data collection and reporting requirements established by the
commissioner; and

(5) promote the hiring, training, and retention of local or regional residents from
low-income and moderate-income areas that reflect area demographics, including
communities of color.

(c) A selected project that is a small food retailer is not subject to the allocation
agreement under paragraph (b), clause (3), and may use financing, grants, or other financial
or technical assistance for refrigeration, displays, or onetime capital expenditures for the
promotion and sale of perishable foods, including a combination of affordable, nutritious,
and culturally appropriate fresh or frozen dairy, dairy substitute products, produce, meats,
poultry, and fish, consistent with nutrition standards in national guidelines described in the
current United States Department of Agriculture Dietary Guidelines for Americans.

Subd. 7.

Additional selection criteria.

In determining which qualified projects to
finance, and in determining which qualified projects to provide with grants or other types
of financial or technical assistance, the commissioner, in cooperation with any entities
with which the commissioner contracts for those purposes and the Good Food Access
Program Advisory Committee, shall also consider:

(1) the level of need in the area to be served;

(2) the degree to which the project requires an investment of public support, or
technical assistance where applicable, to move forward, build capacity, create community
impact, or be competitive;

(3) the likelihood that the project will have positive economic and health impacts on
the underserved community, including creation and retention of jobs for local or regional
residents from low-income and moderate-income areas that reflect area demographics,
including communities of color;

(4) the degree to which the project will participate in state and local health department
initiatives to educate consumers on nutrition, promote healthy eating and healthy weight,
and support locally grown food products through programs such as Minnesota Grown; and

(5) any other criteria that the commissioner, in cooperation with public and private
partners, determines to be consistent with the purposes of this chapter.

Subd. 8.

Eligible costs.

Financing for project loans, including low-interest,
zero-interest, and forgivable loans, grants, and other financial or technical assistance, may
be used to support one or more of the following purposes:

(1) site acquisition and preparation;

(2) predevelopment costs, including but not limited to feasibility studies, market
studies, and appraisals;

(3) construction and build-out costs;

(4) equipment and furnishings;

(5) workforce or retailer training; and

(6) working capital.

Subd. 9.

Legislative report.

The commissioner, in cooperation with any economic
or community development financial institution and any other entity with which it
contracts, shall submit an annual report on the good food access program by January 15 of
each year to the chairs and ranking minority members of the house of representatives and
senate committees and divisions with jurisdiction over agriculture policy and finance. The
annual report shall include, but not be limited to, a summary of the following metrics:

(1) the number and types of projects financed;

(2) the amount of dollars leveraged or matched per project;

(3) the geographic distribution of financed projects;

(4) the number and types of technical assistance recipients;

(5) any market or commodity expansion associated with increased access;

(6) the demographics of the areas served;

(7) the costs of the program;

(8) the number of SNAP and WIC dollars spent;

(9) any increase in retail square footage;

(10) the number of loans or grants to minority-owned or female-owned businesses;
and

(11) measurable economic and health outcomes, including, but not limited to,
increases in sales and consumption of locally sourced and other fresh fruits and vegetables,
the number of construction and retail jobs retained or created, and any health initiatives
associated with the program.

Sec. 10.

[17.1018] GOOD FOOD ACCESS PROGRAM ADVISORY
COMMITTEE.

Subdivision 1.

Definitions.

As used in this section, the following terms have the
meanings given them:

(1) "program" means the good food access program under section 17.1017; and

(2) "commissioner" means the commissioner of agriculture.

Subd. 2.

Creation.

The Good Food Access Program Advisory Committee consists
of the following members, appointed by the commissioner of agriculture, unless otherwise
specified:

(1) the commissioners of health, employment and economic development, and
human services, or their respective designees;

(2) one person representing the grocery industry;

(3) two people representing economic or community development, one rural
member and one urban or suburban member;

(4) two people representing political subdivisions of the state;

(5) one person designated by the Council for Minnesotans of African Heritage;

(6) one person designated by the Minnesota Indian Affairs Council;

(7) one person designated by the Council on Asian Pacific Minnesotans;

(8) one person designated by the Chicano Latino Affairs Council;

(9) one person designated by the Minnesota Farmers Union;

(10) one person representing public health experts;

(11) one person representing philanthropic foundations;

(12) one person representing economic or community development financial
institutions;

(13) one person representing the University of Minnesota Regional Sustainable
Development Partnerships;

(14) two people representing organizations engaged in addressing food security,
one representative from a statewide hunger relief organization and one from a
community-based organization;

(15) one person representing immigrant farmer-led organizations;

(16) one person representing small business technical assistance with experience
in food retail; and

(17) up to four additional members with economic development, health equity,
financial, or other relevant expertise.

At least half of the members must reside in or their organizations must serve rural
Minnesota. The commissioner may remove members and fill vacancies as provided in
section 15.059, subdivision 4.

Subd. 3.

Duties.

The advisory committee must advise the commissioner of
agriculture on managing the program, establishing program criteria, establishing project
eligibility guidelines, establishing application processes and additional selection criteria,
establishing annual monitoring and accountability mechanisms, facilitating leveraging of
additional public and private investments, and promoting the program statewide.

Subd. 4.

Meetings.

The commissioner must convene the advisory committee at
least two times per year to achieve the committee's duties.

Subd. 5.

Administrative support.

The commissioner of agriculture must provide
staffing, meeting space, and administrative services for the advisory committee.

Subd. 6.

Chair.

The commissioner of agriculture or the commissioner's designee
shall serve as chair of the committee.

Subd. 7.

Compensation.

The public members of the advisory committee serve
without compensation or payment of expenses.

Subd. 8.

Expiration.

The advisory committee does not expire.

Sec. 11.

[116J.55] EMERGING ENTREPRENEUR FUND PROGRAM.

Subdivision 1.

Program created.

The emerging entrepreneur fund program is
created to provide, through partnership with nonprofit corporations, financial and technical
assistance for small businesses owned by minorities, women, veterans, or persons with
disabilities, or businesses located in low-income areas in the seven-county metropolitan
area. Loans and business development services must promote job creation and economic
development in low-income areas and encourage private investment and strengthen
businesses owned by minorities, women, veterans, and persons with disabilities.

Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

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

(c) "Department" means the Department of Employment and Economic
Development.

(d) "Disability-owned business" means a small business that is majority owned and
operated by a person with a disability who is eligible to receive Supplemental Security
Income (SSI) or Social Security Disability Insurance (SSDI) based on the person's own
disability or is eligible for services from the department's vocational rehabilitation services
or State Services for the Blind programs.

(e) "Emerging Entrepreneur Fund Advisory Council" or "council" means the
advisory council created under subdivision 9.

(f) "Emerging entrepreneur fund program" or "program" means the program
established under this section.

(g) "Emerging entrepreneur fund qualified small business" means a small business
that is majority owned and operated by a racial or ethnic minority, woman, veteran, or a
person with a disability, solely or in any combination thereof.

(h) "Greater Minnesota" means the area of the state that excludes the metropolitan
area, as defined in section 473.121, subdivision 2.

(i) "Low-income area" means:

(1) those cities in the metropolitan area that have an average income that is below
80 percent of the median income for a four-person family as of the latest report by the
United States Census Bureau; or

(2) those cities in the metropolitan area that contain two or more contiguous census
tracts in which the average family income is less than 80 percent of the median family
income for the Twin Cities metropolitan area.

(j) "Metropolitan area" has the meaning given in section 473.121, subdivision 2.

(k) "Minority-owned business" means a small business that is majority owned and
operated by persons belonging to a racial or ethnic minority as defined in Minnesota
Rules, part 1230.0150, subpart 24.

(l) "Nonprofit corporation" means a nonprofit lender or a nonprofit technical
assistance provider operating in the state.

(m) "Nonprofit lender" means a nonprofit corporation that has been certified as a
participating lender under subdivision 3.

(n) "Nonprofit technical assistance provider" means a nonprofit corporation that
provides consulting services to assist businesses under the program.

(o) "Small business" means an enterprise as defined in section 645.445, subdivision 2.

(p) "Veteran-owned business" means a small business that is majority owned and
operated by a veteran as defined in section 197.447.

(q) "Woman-owned business" means a small business that is majority owned and
operated by a woman.

Subd. 3.

Nonprofit lender application.

(a) The commissioner shall provide funds
to nonprofit lenders for the purpose of making loans to businesses that are (1) located in a
low-income area or (2) emerging entrepreneur fund qualified small businesses.

(b) A nonprofit corporation wishing to be certified as a nonprofit lender in the program
must apply using the form prescribed by the commissioner. The application must include:

(1) an assurance signed by the nonprofit lender's chair that the applicant will comply
with all applicable state and federal laws, guidelines, and requirements;

(2) a resolution passed by the nonprofit lender's board of directors approving the
submission of an application and authorizing execution of the grant agreement if funds
are made available;

(3) a plan demonstrating the nonprofit lender's approach to assisting small businesses
that are majority owned and operated by a racial or ethnic minority, woman, veteran, or a
person with disabilities and the expected outcomes from the corporation's participation
in the program;

(4) the geographic area served by the nonprofit lender's loan programs; and

(5) any additional information that the commissioner deems necessary to clarify the
applicant's ability to achieve the program's objectives.

(c) The commissioner must enter into agreements with nonprofit lenders to fund
loans under this section. The commissioner shall select and certify participating nonprofit
lenders based on the organization's ability to demonstrate:

(1) a board of directors or management team that includes citizens experienced in
business development; financing small businesses that are majority owned and operated
by a racial or ethnic minority, woman, veteran, or a person with disabilities; financing
businesses located in low-income areas; and creating jobs in low-income areas;

(2) the technical skills needed to analyze projects;

(3) familiarity with other available public and private funding sources and economic
development programs;

(4) ability to initiate and implement business finance projects;

(5) capacity to establish and administer a revolving loan account;

(6) experience working with job referral networks that assist small businesses that
are majority owned and operated by a racial or ethnic minority, woman, veteran, or a
person with disabilities or persons in low-income areas; and

(7) any other criteria the commissioner deems necessary.

(d) The commissioner shall solicit applications by participating and nonparticipating
lenders at least every five years.

Subd. 4.

Business loan criteria.

(a) A participating nonprofit corporation must use
the criteria in this subdivision when making loans under the program.

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

(c) A loan may be used for a project for an emerging entrepreneur fund qualified
small business (1) located anywhere in Minnesota or (2) that is not an emerging
entrepreneur fund qualified small business but is located in a low-income area.

(d) If a loan involves a small business that is not an emerging entrepreneur fund
qualified small business, the state contribution must be matched by at least an equal
amount of new private investment funded and provided by the nonprofit lender. If the loan
does not exceed $50,000, private matching funds are not required.

(e) The state contribution may represent up to 75 percent of the project's financing if
the applicant is an emerging entrepreneur fund qualified small business with the nonprofit
lender funding and providing 25 percent of the financing.

(f) The minimum state contribution to a loan is $2,000, and the maximum is $150,000.

(g) A loan may not be used for a retail development project unless the loan does
not exceed $25,000.

(h) The participating small business must agree to work with job referral networks
that focus on minority, women, veteran, and disabled applicants.

(i) The loan funds may be used for normal operating business expenses including
but not limited to business or site acquisition, new construction, renovation, machinery
and equipment, inventory, or working capital.

(j) The loan funds may not be used for any of the following:

(1) costs incurred by applicants not meeting the eligibility requirements in this
subdivision;

(2) lending, passive real estate investment purposes, or land speculation;

(3) management fees, financing costs, debt consolidation, or refinancing existing
business or personal debt;

(4) any activity deemed illegal by federal, state, or local law or ordinance; and

(5) other purposes or activities determined by the commissioner to not be in the
best interests of the state.

(k) An applicant must be in compliance with all applicable local, state, and federal
laws and must not be subject to any judgments, liens, or other actions that would prevent
loan repayment.

(l) Other factors that the commissioner deems important shall be incorporated as
part of the agreement between the department and the nonprofit lender required under
subdivision 3.

Subd. 5.

Loan administration.

(a) An eligible small business may make an
application to the nonprofit corporation for an emerging entrepreneur fund loan. The
application must be in the form approved by the nonprofit lender and the commissioner.

(b) The nonprofit corporation must review the application and may give preliminary
approval for the loan based on criteria in subdivision 4. Loan applications given
preliminary approval by the nonprofit lender must be forwarded to the commissioner
for approval. The commissioner shall disburse funds for each approved emerging
entrepreneur fund loan made by the nonprofit corporation for which funding is available.

(c) In cases where the nonprofit lender fails to demonstrate that it has met the
requirements of this section, the commissioner must disapprove the application. The
commissioner shall inform the nonprofit corporation of the decision, in writing, stating
the reasons for the denial.

(d) The nonprofit lender must use a loan agreement for each emerging entrepreneur
fund loan. Each agreement must identify specific loan terms and include, at a minimum, the
maximum loan period, repayment terms, and default terms. The commissioner may pursue
any course of action authorized by statute, rule, or loan agreement to remedy default.

(1) Nonprofit lenders may structure project financing using interest or an equivalent
approach using other allowable charges if the borrower has limitations or restrictions on
the type of project financing used.

(2) If interest is charged, the rate on a loan shall be established by the nonprofit
lender, but may be no less than two percent per annum nor more than seven percent per
annum or four percent above the prime rate, as published in the Wall Street Journal at the
time the loan is closed, whichever is greater.

(3) The nonprofit lender may charge a loan origination fee equal to or less than
one percent of the loan value. The nonprofit corporation may retain the amount of the
origination fee.

(4) The nonprofit lender may only charge the participating small business
out-of-pocket administrative expenses connected with originating the loan at the time
of closing.

(5) F