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SF 2611

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 04/11/2019 08:57am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to jobs; appropriating money for the Department of Employment and
Economic Development, Department of Labor and Industry, the Bureau of
Mediation Services, and Workers' Compensation Court of Appeals; modifying
use of Minnesota investment fund; establishing an airport infrastructure renewal
(AIR) grant program; modifying the youth skills training program; modifying
retainage requirements for certain public contracts and building and construction
contracts; providing uniformity for employment mandates on private employers;
prohibiting wage theft; adopting recommendations from the Workers' Compensation
Advisory Council; making policy and technical changes; modifying fees;
establishing criminal penalties; requiring reports; amending Minnesota Statutes
2018, sections 15.72, subdivision 2; 116J.035, subdivision 7; 175.46, subdivisions
3, 13; 176.1812, subdivision 2; 176.231, subdivision 1; 177.23, subdivision 7;
177.27, subdivision 1; 177.32, subdivision 1; 181.03, subdivision 1, by adding
subdivisions; 326B.821, subdivision 21; 337.10, subdivision 4; 341.30, subdivision
1; 341.32, subdivision 1; 341.321; 469.074, by adding a subdivision; Laws 2017,
chapter 94, article 1, section 2, subdivision 3; proposing coding for new law in
Minnesota Statutes, chapters 116J; 116L; 181.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginJOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin 2021
new text end

Sec. 2. new text beginDEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 114,607,000
new text end
new text begin $
new text end
new text begin 114,607,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2020
new text end
new text begin 2021
new text end
new text begin General
new text end
new text begin 82,810,000
new text end
new text begin 82,810,000
new text end
new text begin Remediation
new text end
new text begin 700,000
new text end
new text begin 700,000
new text end
new text begin Workforce
Development
new text end
new text begin 31,097,000
new text end
new text begin 31,097,000
new text end

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

new text begin Subd. 2. new text end

new text begin Business and Community Development
new text end

new text begin 38,286,000
new text end
new text begin 38,286,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 36,111,000
new text end
new text begin 36,111,000
new text end
new text begin Remediation
new text end
new text begin 700,000
new text end
new text begin 700,000
new text end
new text begin Workforce
Development
new text end
new text begin 1,475,000
new text end
new text begin 1,475,000
new text end

new text begin (a)(1) $12,500,000 each year is for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Of this amount,
up to two percent is for administration and
monitoring of the program. This appropriation
is available until spent. Notwithstanding
Minnesota Statutes, section 116J.8731, funds
appropriated to the commissioner for the
Minnesota investment fund may be used for
the redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761, at
the discretion of the commissioner. Grants
under this paragraph are not subject to the
grant amount limitation under Minnesota
Statutes, section 116J.8731;
new text end

new text begin (2) of the amount appropriated in fiscal year
2020, $2,000,000 is for a loan to a paper mill
in Duluth to support the operation and
manufacture of packaging paper grades. The
company that owns the paper mill must spend
$25,000,000 on expansion activities by
December 31, 2020, in order to be eligible to
receive funds in this appropriation. This
appropriation is onetime and may be used for
the mill's equipment, materials, supplies, and
other operating expenses. The commissioner
of employment and economic development
shall forgive a portion of the loan each year
after verification that the mill has retained 200
full-time jobs over a period of five years and
has satisfied other performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731;
new text end

new text begin (3) of the amount appropriated in fiscal year
2020, $1,000,000 is for the airport
infrastructure renewal (AIR) grant program
under Minnesota Statutes, section 116J.439;
and
new text end

new text begin (4) of the amount appropriated in fiscal year
2020, $100,000 is for a grant to FIRST in
Upper Midwest to support competitive
robotics teams. Funds must be used to make
up to five awards of no more than $20,000
each to Minnesota-based public entities or
private nonprofit organizations for the creation
of competitive robotics hubs. Awards may be
used for tools, equipment, and physical space
to be utilized by robotics teams. At least 50
percent of grant funds must be used outside
of the seven-county metropolitan area, as
defined under Minnesota Statutes, section
473.121, subdivision 2. The grant recipient
shall report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over jobs and economic growth
by February 1, 2021, on the status of awards
and include information on the number and
amount of awards made, the number of
customers served, and any outcomes resulting
from the grant. The grant requires a 50 percent
match from nonstate sources.
new text end

new text begin (b) $8,000,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, up to two
percent is for administration and monitoring
of the program. This appropriation is available
until spent.
new text end

new text begin (c) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Funds
available under this paragraph are for transfer
into the emerging entrepreneur program
special revenue fund account created under
Minnesota Statutes, chapter 116M, and are
available until spent.
new text end

new text begin (d) $1,350,000 each year from the workforce
development fund is for job training costs
under Minnesota Statutes, section 116L.42.
new text end

new text begin (e) $1,787,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until spent.
new text end

new text begin (f) $139,000 each year is for the Center for
Rural Policy and Development.
new text end

new text begin (g) $1,772,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
spent.
new text end

new text begin (h) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until spent.
new text end

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

new text begin (j) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until spent.
new text end

new text begin (k) $875,000 each year is from the general
fund for the host community economic
development program established in
Minnesota Statutes, section 116J.548.
new text end

new text begin (l) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.
new text end

new text begin (m) $125,000 each year from the workforce
development fund 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.
new text end

new text begin (n) $12,000 each year is from the general fund
for a grant to the Upper Minnesota Film
Office.
new text end

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

new text begin (p) $500,000 each year is from the general
fund for a grant to the Minnesota Film and TV
Board for the film production jobs program
under Minnesota Statutes, section 116U.26.
This appropriation is available until spent.
new text end

new text begin Subd. 3. new text end

new text begin Minnesota Trade Office
new text end

new text begin 2,292,000
new text end
new text begin 2,292,000
new text end

new text begin (a) $300,000 each year is for the STEP grants
in Minnesota Statutes, section 116J.979.
new text end

new text begin (b) $180,000 each year is for the Invest
Minnesota Marketing Initiative in Minnesota
Statutes, section 116J.9781.
new text end

new text begin (c) $270,000 each year is for the Minnesota
Trade Offices under Minnesota Statutes,
section 116J.978.
new text end

new text begin (d) $50,000 each year is for the trade policy
advisory group under Minnesota Statutes,
section 116J.9661.
new text end

new text begin Subd. 4. new text end

new text begin Workforce Development
new text end

new text begin 26,242,000
new text end
new text begin 26,242,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 4,450,000
new text end
new text begin 4,450,000
new text end
new text begin Workforce
Development
new text end
new text begin 21,792,000
new text end
new text begin 21,792,000
new text end

new text begin (a) $4,604,000 each year from the workforce
development fund is for the pathways to
prosperity competitive grant program. Of this
amount, up to two percent is for administration
and monitoring of the program.
new text end

new text begin (b) $4,065,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561.
new text end

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

new text begin (d) $750,000 each year is from the general
fund and $3,348,000 each year is from the
workforce development fund for the youth at
work competitive grant program under
Minnesota Statutes, section 116L.562. Of this
amount, up to two percent is for administration
and monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
new text end

new text begin (e) $500,000 each year from the general fund
and $500,000 each year from the workforce
development fund are for rural career
counseling coordinators in the workforce
service areas and for the purposes specified
under Minnesota Statutes, section 116L.667.
new text end

new text begin (f) $250,000 each year is for the higher
education career advising program.
new text end

new text begin (g) $1,000,000 each year 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. Of this amount, up to two percent is
for administration and monitoring of the
program.
new text end

new text begin (h) $1,000,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals, such as job training, employment
preparation, internships, job assistance to
fathers, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants made
under this section must focus on low-income
communities, young adults from families with
a history of intergenerational poverty, and
communities of color. Of this amount, up to
two percent is for administration and
monitoring of the program.
new text end

new text begin (i) $750,000 each year is for the high-wage,
high-demand, nontraditional jobs grant
program under Minnesota Statutes, section
116L.99. Of this amount, up to two percent is
for administration and monitoring of the
program.
new text end

new text begin (j) $500,000 each year is from the workforce
development fund for the Opportunities
Industrialization Center programs. This
appropriation shall be divided equally among
the eligible centers.
new text end

new text begin (k) $250,000 each year is from the workforce
development fund for a grant to YWCA St.
Paul to provide job training services and
workforce development programs and
services, including job skills training and
counseling. This is a onetime appropriation.
new text end

new text begin (l) $750,000 each year is from the workforce
development fund 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.
new text end

new text begin (m) $800,000 each year is from the workforce
development fund for performance grants
under Minnesota Statutes, section 116J.8747,
to Twin Cities R!SE to provide training to
hard-to-train individuals. This is a onetime
appropriation.
new text end

new text begin (n) $600,000 each year from the workforce
development fund is for a grant to Ujamaa
Place for job training, employment
preparation, internships, education, training
in the construction trades, housing, and
organizational capacity-building. This is a
onetime appropriation.
new text end

new text begin (o) $200,000 each year is for a grant to
AccessAbility Incorporated to provide job
skills training to individuals who have been
released from incarceration for a felony-level
offense and are no more than 12 months from
the date of release. AccessAbility Incorporated
shall annually report to the commissioner on
how the money was spent and what results
were achieved. The report must include, at a
minimum, information and data about the
number of participants; participant
homelessness, employment, recidivism, and
child support compliance; and training
provided to program participants. This is a
onetime appropriation.
new text end

new text begin (p) $450,000 each year is from the workforce
development fund for grants to Minnesota
Diversified Industries, Inc. to provide
progressive development and employment
opportunities for people with disabilities. This
is a onetime appropriation.
new text end

new text begin (q) $750,000 each year is from the workforce
development fund for a grant to the Minnesota
Alliance of Boys and Girls Clubs to administer
a statewide project of youth job skills and
career development. This project, which may
have career guidance components including
health and life skills, must be designed to
encourage, train, and assist youth in early
access to education and job-seeking skills,
work-based learning experience including
career pathways in STEM learning, career
exploration and matching, and first job
placement through local community
partnerships and on-site job opportunities. This
grant requires a 25 percent match from
nonstate resources. This is a onetime
appropriation.
new text end

new text begin (r) $500,000 each year is from the workforce
development fund for a grant to Avivo to
provide low-income individuals with career
education and job skills training that is fully
integrated with chemical and mental health
services. This is a onetime appropriation.
new text end

new text begin (s) $1,500,000 each year is from the workforce
development fund for a grant to the Minnesota
High Tech Association to support
SciTechsperience, a program that supports
science, technology, engineering, and math
(STEM) internship opportunities for two- and
four-year college students and graduate
students in their field of study. The internship
opportunities must match students with paid
internships within STEM disciplines at small,
for-profit companies located in Minnesota
having fewer than 250 employees worldwide.
At least 350 students must be matched in the
first year and at least 350 students must be
matched in the second year. No more than 15
percent of the hires may be graduate students.
Selected hiring companies shall receive from
the grant 50 percent of the wages paid to the
intern, capped at $3,000 per intern. The
program must work toward increasing the
participation among women or other
underserved populations. This is a onetime
appropriation.
new text end

new text begin (t) $250,000 each year is from the workforce
development fund for a grant to Big Brothers
Big Sisters of the Greater Twin Cities for
workforce readiness, employment exploration,
and skills development for youth ages 12 to
21. The grant must serve youth in the Big
Brothers Big Sisters chapters in the Twin
Cities, central Minnesota, and southern
Minnesota. This is a onetime appropriation.
new text end

new text begin (u) $200,000 each year is from the workforce
development fund for a grant to 180 Degrees
to expand their job readiness training program
to: young adults in group homes; sexually
exploited girls at Brittany's Place; and men
who have recently been released from prison
at the Clifton Residence. This is a onetime
appropriation.
new text end

new text begin (v) $150,000 each year is from the workforce
development fund for displaced homemaker
programs under Minnesota Statutes, section
116L.96. The commissioner, through the adult
career pathways program, shall distribute the
funds to existing nonprofit and state displaced
homemaker programs. This is a onetime
appropriation.
new text end

new text begin (w) $500,000 each year is from the workforce
development fund for a grant to Goodwill
Easter Seals Minnesota and its partners. The
grant shall be used to continue the FATHER
Project in Rochester, Park Rapids, St. Cloud,
Minneapolis, and the surrounding areas to
assist fathers in overcoming barriers that
prevent fathers from supporting their children
economically and emotionally. This is a
onetime appropriation.
new text end

new text begin (x) $500,000 each year is from the workforce
development fund for a grant to Summit
Academy OIC to expand their contextualized
GED and employment placement program and
STEM program. This is a onetime
appropriation.
new text end

new text begin (y) $250,000 each year is from the workforce
development fund for a grant to Bridges to
Healthcare to provide career education,
wraparound support services, and job skills
training in high-demand health care fields to
low-income parents, nonnative speakers of
English, and other hard-to-train individuals,
helping families build secure pathways out of
poverty while also addressing worker
shortages in one of Minnesota's most
innovative industries. Funds may be used for
program expenses, including but not limited
to hiring instructors and navigators; space
rental; and supportive services to help
participants attend classes, including assistance
with course fees, child care, transportation,
and safe and stable housing. In addition, up to
five percent of grant funds may be used for
Bridges to Healthcare's administrative costs.
This is a onetime appropriation.
new text end

new text begin (z) $75,000 each year is from the workforce
development fund for grants to the Minnesota
Grocers Association Foundation for Carts to
Careers, a statewide initiative to promote
careers, conduct outreach, provide job skills
training, and grant scholarships for careers in
the retail food industry. This is a onetime
appropriation.
new text end

new text begin (aa) $250,000 each year is from the workforce
development fund for grants to the American
Indian Opportunities and Industrialization
Center, in collaboration with the Northwest
Indian Community Development Center, to
reduce academic disparities for American
Indian students and adults. The grant funds
may be used to provide:
new text end

new text begin (1) student tutoring and testing support
services;
new text end

new text begin (2) training and employment placement in
information technology;
new text end

new text begin (3) training and employment placement within
trades;
new text end

new text begin (4) assistance in obtaining a GED;
new text end

new text begin (5) remedial training leading to enrollment or
to sustain enrollment in a postsecondary higher
education institution;
new text end

new text begin (6) real-time work experience in information
technology fields and in the trades;
new text end

new text begin (7) contextualized adult basic education;
new text end

new text begin (8) career and educational counseling for
clients with significant and multiple barriers;
and
new text end

new text begin (9) reentry services and counseling for adults
and youth.
new text end

new text begin After notification to the legislature, the
commissioner may transfer this appropriation
to the commissioner of education.
new text end

new text begin Subd. 5. new text end

new text begin Vocational Rehabilitation
new text end

new text begin 36,961,000
new text end
new text begin 36,961,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 28,861,000
new text end
new text begin 28,861,000
new text end
new text begin Workforce
Development
new text end
new text begin 7,830,000
new text end
new text begin 7,830,000
new text end

new text begin (a) $14,300,000 each year is for the state's
vocational rehabilitation program under
Minnesota Statutes, chapter 268A.
new text end

new text begin (b) $3,011,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
268A.11.
new text end

new text begin (c) $8,995,000 each year from the general fund
and $6,830,000 each year from the workforce
development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15. Of the amounts appropriated from
the general fund, $2,000,000 each year is for
rate increases to providers of extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15.
new text end

new text begin (d) $1,000,000 each year is from the
workforce development fund for grants under
Minnesota Statutes, section 268A.16, for
employment services for persons, including
transition-aged youth, who are deaf, deafblind,
or hard-of-hearing. If the amount in the first
year is insufficient, the amount in the second
year is available in the first year. Of this
amount, up to two percent is for administration
and monitoring of the program.
new text end

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

new text begin Subd. 6. new text end

new text begin Services for the Blind
new text end

new text begin 6,425,000
new text end
new text begin 6,425,000
new text end

new text begin $500,000 each year is to provide services for
senior citizens who are becoming blind. At
least half of the funds appropriated must be
used to provide training services for seniors
who are becoming blind. Training services
must provide independent living skills to
seniors who are becoming blind to allow them
to continue to live independently in their
homes.
new text end

new text begin Subd. 7. new text end

new text begin General Support Services
new text end

new text begin 4,671,000
new text end
new text begin 4,671,000
new text end

new text begin (a) $250,000 each year is for the publication,
dissemination, and use of labor market
information under Minnesota Statutes, section
116J.4011.
new text end

new text begin (b) $1,269,000 each year is for transfer to the
Minnesota Housing Finance Agency for
operating the Olmstead Implementation
Office.
new text end

new text begin (c) $500,000 each year is for the
capacity-building grant program to assist
nonprofit organizations offering or seeking to
offer workforce development and economic
development programming.
new text end

new text begin Subd. 8. new text end

new text begin Competitive Grant Limitations
new text end

new text begin An organization that receives a direct
appropriation under this section is not eligible
to participate in competitive grant programs
under this section for substantially the same
program or purpose as the direct appropriation
received during the fiscal years in which the
direct appropriations are received.
new text end

Sec. 3. new text beginDEPARTMENT OF LABOR AND
INDUSTRY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 28,700,000
new text end
new text begin $
new text end
new text begin 25,700,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2020
new text end
new text begin 2021
new text end
new text begin General
new text end
new text begin 3,048,000
new text end
new text begin 3,048,000
new text end
new text begin Workers'
Compensation
new text end
new text begin 22,919,000
new text end
new text begin 19,919,000
new text end
new text begin Workforce
Development
new text end
new text begin 2,733,000
new text end
new text begin 2,733,000
new text end

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

new text begin Subd. 2. new text end

new text begin Workers' Compensation
new text end

new text begin 14,882,000
new text end
new text begin 11,882,000
new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

new text begin $3,000,000 in fiscal year 2020 is for workers'
compensation system upgrades. This amount
is available until June 30, 2021. This is a
onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Labor Standards and Apprenticeship
new text end

new text begin 4,731,000
new text end
new text begin 4,731,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 3,048,000
new text end
new text begin 3,048,000
new text end
new text begin Workforce
Development
new text end
new text begin 1,683,000
new text end
new text begin 1,683,000
new text end

new text begin (a) $1,500,000 each year is for wage theft
prevention. Beginning in fiscal year 2022, the
base amount for this appropriation is
$1,000,000.
new text end

new text begin (b) $250,000 each year is to develop an open
and competitive grant process in consultation
with the Office of Justice Programs in the
Department of Public Safety, law enforcement
organizations, and the Minnesota County
Attorneys Association to award a grant to a
nonprofit organization identifying and serving
victims of labor trafficking to: (1) develop a
statewide model protocol for law enforcement,
prosecutors, and other persons who in their
professional capacity encounter labor
trafficking to identify and intervene with
victims of labor trafficking; (2) conduct
statewide training for law enforcement and
prosecutors including, at a minimum, methods
under Minnesota Statutes, section 299A.79,
subdivision 2; and (3) develop and disseminate
investigative best practices to identify victims
of labor trafficking and traffickers to law
enforcement, prosecutors, and other persons
who in their professional capacity encounter
labor trafficking. The grant recipient may use
the money appropriated in this paragraph to
partner with other entities to implement
clauses (1) to (3).
new text end

new text begin (c) By January 15, 2021, the grant recipient
shall report to the chairs and ranking minority
members of the senate and house of
representatives committees and divisions with
jurisdiction over criminal justice and labor and
industry policy and funding on the grant
process and how the grant money was spent
and details and results of the implementation
of paragraph (a), clauses (1) to (3). This
appropriation is onetime.
new text end

new text begin (d) $1,133,000 each year is from the
workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178.
new text end

new text begin (e) $150,000 each year is from the workforce
development fund for prevailing wage
enforcement.
new text end

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

new text begin (g) $300,000 each year is from the workforce
development fund for grants to the
Construction Careers Foundation for the
Helmets to Hard Hats Minnesota initiative.
Grant funds must be used to recruit, retain,
assist, and support National Guard, reserve,
and active duty military members' and
veterans' participation into apprenticeship
programs registered with the Department of
Labor and Industry and connect them with
career training and employment in the building
and construction industry. The recruitment,
selection, employment, and training must be
without discrimination due to race, color,
creed, religion, national origin, sex, sexual
orientation, marital status, physical or mental
disability, receipt of public assistance, or age.
This is a onetime appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Workplace Safety
new text end

new text begin 4,167,000
new text end
new text begin 4,167,000
new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

new text begin Subd. 5. new text end

new text begin General Support
new text end

new text begin 7,003,000
new text end
new text begin 7,003,000
new text end
new text begin Appropriations by Fund
new text end
new text begin Workers'
Compensation
new text end
new text begin 5,953,000
new text end
new text begin 5,953,000
new text end
new text begin Workforce
Development
new text end
new text begin 1,050,000
new text end
new text begin 1,050,000
new text end

new text begin (a) $300,000 each year is from the workforce
development fund for the PIPELINE program.
new text end

new text begin (b) $750,000 each year is from the workforce
development fund for youth skills training
grants under Minnesota Statutes, section
175.46. The commissioner shall award grants
not to exceed $100,000 per local partnership
grant. $100,000 each year is from the
workforce development fund for the
administration of the grant program.
new text end

Sec. 4. new text beginBUREAU OF MEDIATION SERVICES
new text end

new text begin $
new text end
new text begin 2,404,000
new text end
new text begin $
new text end
new text begin 2,404,000
new text end

new text begin (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.
new text end

new text begin (b) $394,000 each year is for the Office of
Collaboration and Dispute Resolution under
Minnesota Statutes, section 179.90. Of this
amount, $160,000 each year is for grants under
Minnesota Statutes, section 179.91.
new text end

Sec. 5. new text beginWORKERS' COMPENSATION COURT
OF APPEALS
new text end

new text begin $
new text end
new text begin 1,952,000
new text end
new text begin $
new text end
new text begin 1,952,000
new text end

new text begin This appropriation is from the workers'
compensation fund.
new text end

Sec. 6. new text beginREDUCTION IN APPROPRIATIONS FOR UNFILLED POSITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Reduction required. new text end

new text begin The commissioner of management and budget must
reduce general fund and nongeneral fund appropriations to the Department of Employment
and Economic Development and the Department of Labor and Industry for agency operations
for the biennium ending June 30, 2021, for salary and benefits savings that results from any
positions that have not been filled within 180 days of the posting of the position. This section
applies only to positions that are posted in fiscal years 2019, 2020, and 2021. Reductions
made under this paragraph must be reflected as reductions in agency base budgets for fiscal
years 2022 and 2023.
new text end

new text begin Subd. 2. new text end

new text begin Reporting. new text end

new text begin The commissioner of management and budget must report to the
chairs and ranking minority members of the senate and the house of representatives jobs
and economic development finance committees regarding the amount of reductions in
spending by each agency under this section.
new text end

ARTICLE 2

JOBS POLICY

Section 1.

Minnesota Statutes 2018, section 116J.035, subdivision 7, is amended to read:


Subd. 7.

Monitoring pass-through grant recipients.

The commissioner shall monitor
the activities and outcomes of programs and services funded by legislative appropriations
and administered by the department on a pass-through basis. Unless amounts are otherwise
appropriated for administrative costs, the commissioner may retain up to deleted text beginfivedeleted text end new text begintwo new text endpercent
of the amount appropriated to the department for grants to pass-through entities. Amounts
retained are deposited to a special revenue account and are appropriated to the commissioner
for costs incurred in administering and monitoring the pass-through grants.

Sec. 2.

new text begin [116J.439] AIRPORT INFRASTRUCTURE RENEWAL (AIR) GRANT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program established; purpose. new text end

new text begin (a) The commissioner shall make
grants to counties, airport authorities, or cities to provide up to 50 percent of the capital
costs of redevelopment of an existing facility or construction of a new facility; and for public
or private infrastructure costs, including broadband infrastructure costs, necessary for an
eligible airport infrastructure renewal economic development project.
new text end

new text begin (b) The purpose of the grants made under this section is to keep or enhance jobs in the
area, increase the tax base, or expand or create new economic development.
new text end

new text begin (c) In awarding grants under this section, the commissioner must adhere to the criteria
under subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "City" means a statutory or home rule charter city located outside the metropolitan
area as defined in section 473.121, subdivision 2.
new text end

new text begin (c) "County" means a county located outside the metropolitan area as defined in section
473.121, subdivision 2.
new text end

new text begin (d) "Airport authority" means an authority created pursuant to section 360.0426.
new text end

new text begin Subd. 3. new text end

new text begin Eligible projects. new text end

new text begin An economic development project for which a county, airport
authority, or city may be eligible to receive a grant under this section includes: (1)
manufacturing; (2) technology; (3) warehousing and distribution; or (4) research and
development.
new text end

new text begin Subd. 4. new text end

new text begin Ineligible projects. new text end

new text begin The following projects are not eligible for a grant under
this section: (1) retail development; or (2) office space development, except as incidental
to an eligible purpose.
new text end

new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin (a) The commissioner must develop forms and procedures for
soliciting and reviewing applications for grants under this section. At a minimum, a county,
airport authority, or city must include in its application a resolution of the governing body
of the county, airport authority, or city certifying that half of the cost of the project is
committed from nonstate sources. The commissioner must evaluate complete applications
for eligible projects using the following criteria:
new text end

new text begin (1) the project is an eligible project as defined under subdivision 3;
new text end

new text begin (2) the project is expected to result in or will attract substantial public and private capital
investment and provide substantial economic benefit to the county, airport authority, or city
in which the project would be located; and
new text end

new text begin (3) the project is expected to or will create or retain full-time jobs.
new text end

new text begin (b) The determination of whether to make a grant for a site is within the discretion of
the commissioner, subject to this section. The commissioner's decisions and application of
the criteria are not subject to judicial review except for abuse of discretion.
new text end

new text begin Subd. 6. new text end

new text begin Maximum grant amount. new text end

new text begin A county, airport authority, or city may receive no
more than $250,000 in two years for one or more projects.
new text end

new text begin Subd. 7. new text end

new text begin Cancellation of grant; return of grant money. new text end

new text begin If after five years the
commissioner determines that a project has not proceeded in a timely manner and is unlikely
to be completed, the commissioner must cancel the grant and require the grantee to return
all grant money awarded for that project.
new text end

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

new text begin Grant money returned to the commissioner is appropriated to
the commissioner to make additional grants under this section.
new text end

Sec. 3.

new text begin [116L.35] INVENTORY OF ECONOMIC DEVELOPMENT PROGRAMS.
new text end

new text begin (a) By January 15, 2020, and by January 15 of each even-numbered year thereafter, the
commissioner of employment and economic development must submit a report to the chairs
of the legislative committees with jurisdiction over economic development that provides
an inventory of all economic development programs, including any workforce development
programs, either provided by or overseen by any agency of the state of Minnesota.
new text end

new text begin (b) Programs related to economic development that must be included in the report include
those that:
new text end

new text begin (1) receive federal funds or state funds;
new text end

new text begin (2) provide assistance to either businesses or individuals; or
new text end

new text begin (3) support internships, apprenticeships, career and technical education, or any form of
employment training.
new text end

new text begin (c) For each economic development program, the report must include, at a minimum,
the following information:
new text end

new text begin (1) details of program costs;
new text end

new text begin (2) the number of staff, both within the department and any outside organization;
new text end

new text begin (3) the number of program participants;
new text end

new text begin (4) the demographic information including, but not limited to, race, age, gender, and
income of program participants;
new text end

new text begin (5) a list of any and all subgrantees receiving funds from the program, as well as the
amount of funding received;
new text end

new text begin (6) information about other sources of funding including other public or private funding
or in-kind donations;
new text end

new text begin (7) evidence that: (i) the organization administering a program; (ii) a business receiving
a loan for a new or expanded business from a program; or (iii) a subgrantee of a program
is in good standing with the Minnesota Secretary of State and the Minnesota Department
of Revenue;
new text end

new text begin (8) a short description of what each program does; and
new text end

new text begin (9) to the extent practical, quantifiable measures of program success.
new text end

new text begin (d) In addition to the information required under paragraph (c), a program related to
economic development under paragraph (b) that requests an increase in state funding over
the previous biennium must provide the following:
new text end

new text begin (1) detailed information regarding the need for increased funds; and
new text end

new text begin (2) the planned uses of the increased funds.
new text end

new text begin (e) A program related to economic development under paragraph (b) is ineligible for
state funding in the following biennium if it does not submit the information required under
paragraph (c).
new text end

Sec. 4.

Minnesota Statutes 2018, section 469.074, is amended by adding a subdivision to
read:


new text begin Subd. 3. new text end

new text begin Meetings by telephone or other electronic means. new text end

new text begin The port authority may
conduct meetings as provided in section 13D.015.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Laws 2017, chapter 94, article 1, section 2, subdivision 3, is amended to read:


Subd. 3.

Workforce Development

$
31,498,000
$
30,231,000
Appropriations by Fund
General
$6,239,000
$5,889,000
Workforce
Development
$25,259,000
$24,342,000

(a) $500,000 each year is for the
youth-at-work competitive grant program
under Minnesota Statutes, section 116L.562.
Of this amount, up to five percent is for
administration and monitoring of the youth
workforce development competitive grant
program. All grant awards shall be for two
consecutive years. Grants shall be awarded in
the first year. In fiscal year 2020 and beyond,
the base amount is $750,000.

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

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

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

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

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

(3) increase the number of summer internship
opportunities;

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

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

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

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

(e) $1,539,000 each year from the general fund
and $4,604,000 each year from the workforce
development fund are for the Pathways to
Prosperity adult workforce development
competitive grant program. Of this amount,
up to four percent is for administration and
monitoring of the program. When awarding
grants under this paragraph, the commissioner
of employment and economic development
may give preference to any previous grantee
with demonstrated success in job training and
placement for hard-to-train individuals. In
fiscal year 2020 and beyond, the general fund
base amount for this program is $4,039,000.

(f) $750,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals, such as job training, employment
preparation, internships, job assistance to
fathers, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants made
under this section must focus on low-income
communities, young adults from families with
a history of intergenerational poverty, and
communities of color. Of this amount, up to
four percent is for administration and
monitoring of the program. In fiscal year 2020
and beyond, the base amount is $1,000,000.

(g) $500,000 each year is for the women and
high-wage, high-demand, nontraditional jobs
grant program under Minnesota Statutes,
section 116L.99. Of this amount, up to five
percent is for administration and monitoring
of the program. In fiscal year 2020 and
beyond, the base amount is $750,000.

(h) $500,000 each year 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. Of this amount, up to five percent
is for administration and monitoring of the
program. In fiscal year 2020 and beyond, the
base amount is $1,000,000.

(i) $250,000 each year 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. This is a onetime appropriation. The
grant funds may be used to provide:

(1) student tutoring and testing support
services;

(2) training in information technology;

(3) assistance in obtaining a GED;

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

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

(6) contextualized adult basic education.

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

(j) $100,000 each year is for the getting to
work grant program. This is a onetime
appropriation and is available until June 30,
2021.

(k) $525,000 each year is from the workforce
development fund for a grant to the YWCA
of Minneapolis to provide economically
challenged individuals the job skills training,
career counseling, and job placement
assistance necessary to secure a child
development associate credential and to have
a career path in early childhood education.
This is a onetime appropriation.

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

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

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

(o) $750,000 each year is from the workforce
development fund for a grant to the Minnesota
Alliance of Boys and Girls Clubs to administer
a statewide project of youth job skills and
career development. This project, which may
have career guidance components including
health and life skills, is designed to encourage,
train, and assist youth in early access to
education and job-seeking skills, work-based
learning experience including career pathways
in STEM learning, career exploration and
matching, and first job placement through
local community partnerships and on-site job
opportunities. This grant requires a 25 percent
match from nonstate resources. This is a
onetime appropriation.

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

(q) $250,000 each year is from the workforce
development fund for a grant to YWCA St.
Paul to provide job training services and
workforce development programs and
services, including job skills training and
counseling. This is a onetime appropriation.

(r) $1,000,000 each year is from the workforce
development fund 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, based on the
most recent census tract data, to provide
employment readiness training, credentialed
training placement, job placement and
retention services, supportive services for
hard-to-employ individuals, and a general
education development fast track and adult
diploma program. This is a onetime
appropriation.

(s) $1,000,000 each year is from the workforce
development fund 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.

(t) $750,000 each year is from the workforce
development fund 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.

(u) $600,000 each year is from the workforce
development fund for a grant to Ujamaa Place
for job training, employment preparation,
internships, education, training in the
construction trades, housing, and
organizational capacity building. This is a
onetime appropriation.

(v) $1,297,000 in the first year and $800,000
in the second year are from the workforce
development fund for performance grants
under Minnesota Statutes, section 116J.8747,
to Twin Cities R!SE to provide training to
hard-to-train individuals. Of the amounts
appropriated, $497,000 in fiscal year 2018 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 funds are available until
June 30, 2020.

(w) $230,000 in fiscal year 2018 is from the
workforce development fund for a grant to the
Bois Forte Tribal Employment Rights Office
(TERO) for an American Indian workforce
development training pilot project.new text begin This is a
onetime appropriation and is available until
June 30, 2019. Funds appropriated the first
year are available for use in the second year
of the biennium.
new text end

(x) $40,000 in fiscal year 2018 is from the
workforce development fund for a grant to the
Cook County Higher Education Board to
provide educational programming and
academic support services to remote regions
in northeastern Minnesota. This appropriation
is in addition to other funds previously
appropriated to the board.

(y) $250,000 each year is from the workforce
development fund for a grant to Bridges to
Healthcare to provide career education,
wraparound support services, and job skills
training in high-demand health care fields to
low-income parents, nonnative speakers of
English, and other hard-to-train individuals,
helping families build secure pathways out of
poverty while also addressing worker
shortages in one of Minnesota's most
innovative industries. Funds may be used for
program expenses, including, but not limited
to, hiring instructors and navigators; space
rental; and supportive services to help
participants attend classes, including assistance
with course fees, child care, transportation,
and safe and stable housing. In addition, up to
five percent of grant funds may be used for
Bridges to Healthcare's administrative costs.
This is a onetime appropriation and is
available until June 30, 2020.

(z) $500,000 each year is from the workforce
development fund for a grant to the Nonprofits
Assistance Fund to provide capacity-building
grants to small, culturally specific
organizations that primarily serve historically
underserved cultural communities. Grants may
only be awarded to nonprofit organizations
that have an annual organizational budget of
less than $500,000 and are culturally specific
organizations that primarily serve historically
underserved cultural communities. Grant funds
awarded must be used for:

(1) organizational infrastructure improvement,
including developing database management
systems and financial systems, or other
administrative needs that increase the
organization's ability to access new funding
sources;

(2) organizational workforce development,
including hiring culturally competent staff,
training and skills development, and other
methods of increasing staff capacity; or

(3) creation or expansion of partnerships with
existing organizations that have specialized
expertise in order to increase the capacity of
the grantee organization to improve services
for the community. Of this amount, up to five
percent may be used by the Nonprofits
Assistance Fund for administration costs and
providing technical assistance to potential
grantees. This is a onetime appropriation.

(aa) $4,050,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561.

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

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

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

(ee) $750,000 each year is from the workforce
development fund for a grant to Summit
Academy OIC to expand its contextualized
GED and employment placement program.
This is a onetime appropriation.

(ff) $500,000 each year is from the workforce
development fund for a grant to
Goodwill-Easter Seals Minnesota and its
partners. The grant shall be used to continue
the FATHER Project in Rochester, Park
Rapids, St. Cloud, Minneapolis, and the
surrounding areas to assist fathers in
overcoming barriers that prevent fathers from
supporting their children economically and
emotionally. This is a onetime appropriation.

(gg) $150,000 each year is from the workforce
development fund for displaced homemaker
programs under Minnesota Statutes, section
116L.96. The commissioner shall distribute
the funds to existing nonprofit and state
displaced homemaker programs. This is a
onetime appropriation.

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

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

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

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

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

(jj) In calendar year 2017, the public utility
subject to Minnesota Statutes, section
116C.779, must withhold $1,000,000 from the
funds required to fulfill its financial
commitments under Minnesota Statutes,
section 116C.779, subdivision 1, and pay such
amounts to the commissioner of employment
and economic development for deposit in the
Minnesota 21st century fund under Minnesota
Statutes, section 116J.423.

(kk) $350,000 in fiscal year 2018 is for a grant
to AccessAbility Incorporated to provide job
skills training to individuals who have been
released from incarceration for a felony-level
offense and are no more than 12 months from
the date of release. AccessAbility Incorporated
shall annually report to the commissioner on
how the money was spent and the results
achieved. The report must include, at a
minimum, information and data about the
number of participants; participant
homelessness, employment, recidivism, and
child support compliance; and training
provided to program participants.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2017.
new text end

Sec. 6. new text beginONETIME EXCEPTION TO RESTRICTIONS ON USE OF MINNESOTA
INVESTMENT FUND LOCAL GOVERNMENT LOAN REPAYMENT FUNDS.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 116J.8731, a home rule charter or
statutory city, county, or town that has uncommitted money received from repayment of
funds awarded under Minnesota Statutes, section 116J.8731, may choose to transfer 20
percent of the balance of that money to the state general fund before June 30, 2020. Any
local entity that does so may then use the remaining 80 percent of the uncommitted money
as a general purpose aid for any lawful expenditure.
new text end

new text begin (b) By February 15, 2021, a home rule charter or statutory city, county, or town that
exercises the option under paragraph (a) shall submit to the chairs of the legislative
committees with jurisdiction over economic development policy and finance an accounting
and explanation of the use and distribution of the funds.
new text end

ARTICLE 3

LABOR AND INDUSTRY POLICY

Section 1.

Minnesota Statutes 2018, section 15.72, subdivision 2, is amended to read:


Subd. 2.

Retainage.

new text begin(a) new text endA public contracting agency may reserve as retainage from any
progress payment on a public contract for a public improvement an amount not to exceed
five percent of the payment. deleted text beginAdeleted text end new text beginThenew text end public new text begincontractingnew text end agency may reduce the amount of
the retainage and may eliminate retainage on any monthly contract payment if, in the agency's
opinion, the work is progressing satisfactorily.

new text begin (b) For all construction contracts greater than $5,000,000, the public contracting agency
must reduce retainage to no more than 2.5 percent if the public contracting agency determines
the work is 75 percent or more complete, that work is progressing satisfactorily, and all
contract requirements are being met.
new text end

new text begin (c) The public contracting agency must release any remaining retainage no later than 60
days after substantial completion.
new text end

new text begin (d) A contractor on a public contract for a public improvement must pay out any
remaining retainage to its subcontractors no later than ten days after receiving payment of
retainage from the public contracting agency, unless there is a dispute about the work under
a subcontract. If there is a dispute about the work under a subcontract, the contractor must
pay out retainage to any subcontractor whose work is not involved in the dispute, and must
provide a written statement detailing the amount and reason for the withholding to the
affected subcontractor and the public agency.
new text end

new text begin (e) A contractor may not reserve as retainage from a subcontractor an amount that exceeds
the amount reserved by the public contracting agency under this subdivision. Upon written
request of a subcontractor who has not been paid for work in accordance with section
16A.1245 or 471.425, subdivision 4a, the public contracting agency shall notify the
subcontractor of a progress payment, retainage payment, or final payment made to the
contractor. A contractor must include in any contract with a subcontractor the name, address,
and telephone number of a responsible official at the public contracting agency that may
be contacted for purposes of making a request under this paragraph.
new text end

new text begin (f) After substantial completion, a public contracting agency may withhold no more
than:
new text end

new text begin (1) 250 percent of the value of incomplete or defective work; and
new text end

new text begin (2) one percent of the value of the contract or $500, whichever is greater, pending
completion and submission of all final paperwork by the contractor, provided that an amount
withheld under this clause may not exceed $10,000.
new text end

new text begin If the public contracting agency withholds payment under this paragraph, the public
contracting agency must promptly provide a written statement detailing the amount and
basis of withholding to the contractor. The public contracting agency must provide a copy
of this statement to any subcontractor that requests it. Any amounts withheld for incomplete
or defective work shall be paid within 45 days after the completion of the work. Any amounts
withheld under clause (1) must be paid within 45 days after completion of the work. Any
amounts withheld under clause (2) must be paid within 45 days after submission of all final
paperwork.
new text end

new text begin (g) As used in this subdivision, "substantial completion" shall be determined as provided
in section 541.051, subdivision 1, paragraph (a). For construction, reconstruction, or
improvement of streets and highways, including bridges, substantial completion means the
date when construction-related traffic devices and ongoing inspections are no longer required.
new text end

new text begin (h) The maximum retainage percentage allowed for a building and construction contract
is the retainage percentage withheld by the public contracting agency from the contractor.
new text end

new text begin (i) Withholding retainage for warranties or warranty work is prohibited.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to agreements entered into on or after August
1, 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, section 175.46, subdivision 3, is amended to read:


Subd. 3.

Duties.

(a) The commissioner shall:

(1) approve youth skills training programs new text beginthat train student learners for careers new text endin
high-growth, high-demand occupations that provide:

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

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

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

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

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

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

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

(3) issue requests for proposals for grants;

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

(5) develop model program guides;

(6) monitor youth skills training programs;

(7) provide technical assistance to local partnership grantees;

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

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

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

Sec. 3.

Minnesota Statutes 2018, section 175.46, subdivision 13, is amended to read:


Subd. 13.

Grant awards.

(a)new text begin The commissioner shall award grants to local partnerships
for youth skills training programs that train student learners for careers in high-growth,
high-demand occupations. Grant awards may not exceed $100,000 per local partnership
grant.
new text end

new text begin (b)new text end A local partnership awarded a grant under this section must use the grant award for
any of the following implementation and coordination activities:

(1) recruiting additional employers to provide on-the-job training and supervision for
student learners and providing technical assistance to those employers;

(2) recruiting students to participate in the local youth skills training program, monitoring
the progress of student learners participating in the program, and monitoring program
outcomes;

(3) coordinating youth skills training activities within participating school districts and
among participating school districts, postsecondary institutions, and employers;

(4) coordinating academic, vocational and occupational learning, school-based and
work-based learning, and secondary and postsecondary education for participants in the
local youth skills training program;

(5) coordinating transportation for student learners participating in the local youth skills
training program; and

(6) any other implementation or coordination activity that the commissioner may direct
or permit the local partnership to perform.

deleted text begin (b)deleted text endnew text begin (c)new text end Grant awards may not be used to directly or indirectly pay the wages of a student
learner.

Sec. 4.

Minnesota Statutes 2018, section 326B.821, subdivision 21, is amended to read:


Subd. 21.

Residential building contractor, remodeler, and roofer education.

(a) Each
licensee must, during each continuing education reporting period, complete and report one
hour of continuing education relating to energy codes or energy conservation measures
applicable to residential buildingsnew text begin and one hour of business management strategies applicable
to residential construction businesses
new text end.

(b) Immediately following the adoption date of a new residential code, the commissioner
may prescribe that up to seven of the required 14 hours of continuing education credit per
licensure period include education hours specifically designated to instruct licensees on
new or existing State Building Code provisions.

Sec. 5.

Minnesota Statutes 2018, section 337.10, subdivision 4, is amended to read:


Subd. 4.

Progress payments and retainages.

(a) Unless the building and construction
contract provides otherwise, the owner or other persons making payments under the contract
must make progress payments monthly as the work progresses. Payments shall be based
upon estimates of work completed as approved by the owner or the owner's agent. A progress
payment shall not be considered acceptance or approval of any work or waiver of any defects
therein.

(b) Retainage on a building and construction contract may not exceed five percent. An
owner or owner's agent may reduce the amount of retainage and may eliminate retainage
on any monthly contract payment if, in the owner's opinion, the work is progressing
satisfactorily. Nothing in this subdivision is intended to require that retainage be withheld
in any building or construction contract.new text begin For all construction contracts greater than
$5,000,000, the owner or the owner's agent must reduce retainage to no more than 2.5
percent if the owner or the owner's agent determines the work is 75 percent or more complete,
that work is progressing satisfactorily, and all contract requirements are being met.
new text end

new text begin (c) The owner or the owner's agent must release any remaining retainage no later than
60 days after substantial completion. For purposes of this subdivision, "substantial
completion" shall be determined as provided in section 541.051, subdivision 1, paragraph
(a).
new text end

deleted text begin (c)deleted text end new text begin(d) Any contractor holding retainage must reduce that retainage at the same rate
reduced by the owner or the owner's agent. A contractor must pay out any remaining retainage
no later than ten days after receiving payment of retainage, unless there is a dispute about
the work under a subcontract, in which case the contractor must pay out retainage to any
party whose work is not involved in the dispute. Nothing in this subdivision is intended to
require that retainage be withheld in any building or construction contract.
new text end

new text begin (e) After substantial completion, an owner or owner's agent may withhold no more than:
new text end

new text begin (1) 250 percent of the value of incomplete or defective work; and
new text end

new text begin (2) one percent of the value of the contract or $500, whichever is greater, pending
completion and submission of all final paperwork by the contractor, provided that an amount
withheld under this clause may not exceed $10,000.
new text end

new text begin If the owner or the owner's agent withholds payment under this paragraph, the owner or the
owner's agent must promptly provide a written statement detailing the amount and basis of
withholding to the contractor. The owner or the owner's agent and the contractor must
provide a copy of this statement to any subcontractor that requests it. Any amounts withheld
for incomplete or defective work shall be paid within 45 days after the completion of the
work. Any amounts withheld under clause (1) must be paid within 45 days after completion
of the work. Any amounts withheld under clause (2) must be paid within 45 days after
submission of all final paperwork.
new text end

new text begin (f) The maximum retainage percentage allowed for a building and construction contract
is the retainage percentage withheld by the owner from the contractor.
new text end

new text begin (g) Withholding retainage for warranties or warranty work is prohibited.
new text end

new text begin (h) Retainage must not be used as collateral for the owner, owner's agent, or contractor.
new text end

new text begin (i) This subdivision does not apply to a public agency as defined in section 15.71,
subdivision 3.
new text end

new text begin (j) new text endThis subdivision does not apply to contracts for professional services as defined in
sections 326.02 to 326.15.

new text begin EFFECTIVE DATE. new text end

new text begin This section applies to agreements entered into on or after August
1, 2019.
new text end

Sec. 6.

Minnesota Statutes 2018, section 341.30, subdivision 1, is amended to read:


Subdivision 1.

Licensure; individuals.

All referees, judges, promoters, trainers, deleted text beginring
announcers,
deleted text end timekeepers, ringside physicians, combatants, deleted text beginmanagers,deleted text end and seconds are
required to be licensed by the commissioner. The commissioner shall not permit any of
these persons to participate in any matter with any combative sport contest unless the
commissioner has first issued the person a license.

Sec. 7.

Minnesota Statutes 2018, section 341.32, subdivision 1, is amended to read:


Subdivision 1.

Annual licensure.

The commissioner may establish and issue annual
licenses subject to the collection of advance fees by the commissioner for promoters,
deleted text begin managers,deleted text end judges, referees, deleted text beginring announcers,deleted text end ringside physicians, timekeepers, combatants,
trainers, and seconds.

Sec. 8.

Minnesota Statutes 2018, section 341.321, is amended to read:


341.321 FEE SCHEDULE.

(a) The fee schedule for professional and amateur licenses issued by the commissioner
is as follows:

(1) referees, deleted text begin$80deleted text endnew text begin $25new text end;

(2) promoters, $700;

(3) judges and knockdown judges, deleted text begin$80deleted text endnew text begin $25new text end;

(4) trainers and seconds, $80;

deleted text begin (5) ring announcers, $80;
deleted text end

deleted text begin (6)deleted text endnew text begin (5)new text end timekeepers, deleted text begin$80deleted text endnew text begin $25new text end;

deleted text begin (7)deleted text endnew text begin (6)new text end professional combatants, $70;

deleted text begin (8)deleted text endnew text begin (7)new text end amateur combatants, $50;

deleted text begin (9) managers, $80;deleted text end and

deleted text begin (10)deleted text endnew text begin (8)new text end ringside physicians, deleted text begin$80deleted text endnew text begin $25new text end.

License fees for promoters are due at least six weeks prior to the combative sport contest.
All other license fees shall be paid no later than the weigh-in prior to the contest. No license
may be issued until all prelicensure requirements are satisfied and fees are paid.

(b) The commissioner shall establish a contest fee for each combative sport contest and
shall consider the size and type of venue when establishing a contest fee. The combative
sport contest fee is $1,500 per event or not more than four percent of the gross ticket sales,
whichever is greater, as determined by the commissioner when the combative sport contest
is scheduled.

(c) A professional or amateur combative sport contest fee is nonrefundable and shall be
paid as follows:

(1) $500 at the time the combative sport contest is scheduled; and

(2) $1,000 at the weigh-in prior to the contest.

If four percent of the gross ticket sales is greater than $1,500, the balance is due to the
commissioner within seven days of the completed contest.

(d) The commissioner may establish the maximum number of complimentary tickets
allowed for each event by rule.

(e) All fees and penalties collected by the commissioner must be deposited in the
commissioner account in the special revenue fund.

Sec. 9. new text beginCONTRACTOR RECOVERY FUND; CONSUMER AWARENESS
CAMPAIGN.
new text end

new text begin In fiscal years 2020 and 2021 the commissioner of labor and industry must conduct a
statewide consumer awareness campaign highlighting the importance of hiring licensed
contractors as well as the consequences of hiring unlicensed contractors, and may spend up
to $500,000 each year from the contractor recovery fund to conduct the campaign.
new text end

ARTICLE 4

EMPLOYMENT POLICY

Section 1.

Minnesota Statutes 2018, section 177.23, subdivision 7, is amended to read:


Subd. 7.

Employee.

"Employee" means any individual employed by an employer but
does not include:

(1) two or fewer specified individuals employed at any given time in agriculture on a
farming unit or operation who are paid a salary;

(2) any individual employed in agriculture on a farming unit or operation who is paid a
salary greater than the individual would be paid if the individual worked 48 hours at the
state minimum wage plus 17 hours at 1-1/2 times the state minimum wage per week;

(3) an individual under 18 who is employed in agriculture on a farm to perform services
other than corn detasseling or hand field work when one or both of that minor hand field
worker's parents or physical custodians are also hand field workers;

(4) for purposes of section 177.24, an individual under 18 who is employed as a corn
detasseler;

(5) any staff member employed on a seasonal basis by an organization for work in an
organized resident or day camp operating under a permit issued under section 144.72;

(6) any individual employed in a bona fide executive, administrative, or professional
capacity, or a salesperson who conducts no more than 20 percent of sales on the premises
of the employer;

(7) any individual who renders service gratuitously for a nonprofit organization;

(8) any individual who serves as an elected official for a political subdivision or who
serves on any governmental board, commission, committee or other similar body, or who
renders service gratuitously for a political subdivision;

(9) any individual employed by a political subdivision to provide police or fire protection
services or employed by an entity whose principal purpose is to provide police or fire
protection services to a political subdivision;

(10) any individual employed by a political subdivision who is ineligible for membership
in the Public Employees Retirement Association under section 353.01, subdivision 2b,
clause (1), (2), (4), or (9), item (i);

(11) any driver employed by an employer engaged in the business of operating taxicabs;

(12) any individual engaged in babysitting as a sole practitioner;

(13) for the purpose of section 177.25, any individual employed on a seasonal basis in
a carnival, circus, fair, or ski facility;

(14) any individual under 18 working less than 20 hours per workweek for a municipality
as part of a recreational program;

(15) any individual employed by the state as a natural resource manager 1, 2, or 3
(conservation officer);

(16) any individual in a position for which the United States Department of Transportation
has power to establish qualifications and maximum hours of service under United States
Code, title 49, section 31502;

(17) any individual employed as a seafarer. The term "seafarer" means a master of a
vessel or any person subject to the authority, direction, and control of the master who is
exempt from federal overtime standards under United States Code, title 29, section 213(b)(6),
including but not limited to pilots, sailors, engineers, radio operators, firefighters, security
guards, pursers, surgeons, cooks, and stewards;

(18) any individual employed by a county in a single-family residence owned by a county
home school as authorized under section 260B.060 if the residence is an extension facility
of that county home school, and if the individual as part of the employment duties resides
at the residence for the purpose of supervising children as defined by section 260C.007,
subdivision 4
; deleted text beginor
deleted text end

(19) nuns, monks, priests, lay brothers, lay sisters, ministers, deacons, and other members
of religious orders who serve pursuant to their religious obligations in schools, hospitals,
and other nonprofit institutions operated by the church or religious ordernew text begin; or
new text end

new text begin (20) any individual employed on a seasonal basis who has entered into a contract to play
baseball at the minor league level
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2018, section 177.27, subdivision 1, is amended to read:


Subdivision 1.

Examination of records.

The commissioner may enter during reasonable
office hours or upon request and inspect the place of business or employment of any employer
of employees working in the state, to examine and inspect books, registers, payrolls, and
other records of any employer that in any way relate to wages, hours, and other conditions
of employment of any employees. The commissioner may transcribe any or all of the books,
registers, payrolls, and other records as the commissioner deems necessary or appropriate
and may question the employees to ascertain compliance with sections 177.21 to 177.435.
The commissioner may investigate wage claims or complaints by an employee against an
employer ifnew text begin: (1)new text end the failure to pay a wage may violate Minnesota law or an order or rule of
the departmentnew text begin; and (2) the employee making the wage claim or complaint has provided a
written demand for payment to the employer at least five days prior to the commissioner
initiating an investigation
new text end.

Sec. 3.

Minnesota Statutes 2018, section 177.32, subdivision 1, is amended to read:


Subdivision 1.

Misdemeanors.

new text begin(a) new text endAn employer who does any of the following is guilty
of a misdemeanor:

(1) hinders or delays the commissioner in the performance of duties required under
sections 177.21 to 177.435new text begin, or sections 181.01 to 181.72new text end;

(2) refuses to admit the commissioner to the place of business or employment of the
employer, as required by section 177.27, subdivision 1;

(3) repeatedly fails to make, keep, and preserve records as required by section 177.30;

(4) falsifies any record;

(5) refuses to make any record available, or to furnish a sworn statement of the record
or any other information as required by section 177.27;

(6) repeatedly fails to post a summary of sections 177.21 to 177.44 or a copy or summary
of the applicable rules as required by section 177.31;

(7) pays or agrees to pay wages at a rate less than the rate required under sections 177.21
to 177.44;

(8) refuses to allow adequate time from work as required by section 177.253; deleted text beginor
deleted text end

(9) otherwise violates any provision of sections 177.21 to 177.44new text begin; or
new text end

new text begin (10) commits wage theft as described in section 181.03, subdivision 1new text end.

new text begin (b) An employer who violates paragraph (a), clause (10), after having been previously
convicted of violating that clause is guilty of a gross misdemeanor.
new text end

new text begin (c) Nothing in paragraph (a), clause (10), or paragraph (b), or section 609.035 or 609.04
shall limit the power of the state to prosecute or punish a person for conduct that constitutes
any other crime under any other law of this state.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2019, and applies to crimes
committed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2018, section 181.03, subdivision 1, is amended to read:


Subdivision 1.

Prohibited practices.

deleted text begin An employer may not, directly or indirectly and
with intent to defraud:
deleted text end

new text begin (a) No employer shall commit wage theft.
new text end

new text begin (b) For purposes of this section, wage theft is committed if an employer, with intent to
defraud:
new text end

new text begin (1) fails to pay an employee all wages to which that employee is entitled;
new text end

deleted text begin (1) causedeleted text endnew text begin (2) directly or indirectly causesnew text end any employee to give a receipt for wages for
a greater amount than that actually paid to the employee for services rendered;

deleted text begin (2)deleted text endnew text begin (3)new text end directly or indirectly deleted text begindemanddeleted text endnew text begin demandsnew text end or deleted text beginreceivedeleted text endnew text begin receivesnew text end from any employee
any rebate or refund from the wages owed the employee under contract of employment with
the employer; deleted text beginor
deleted text end

deleted text begin (3) in any manner makedeleted text endnew text begin (4) makesnew text end or deleted text beginattemptdeleted text endnew text begin attemptsnew text end to make it appear new text beginin any manner
new text end that the wages paid to any employee were greater than the amount actually paid to the
employeedeleted text begin.deleted text endnew text begin; or
new text end

new text begin (5) retaliates against an employee for asserting rights or remedies under this section,
including but not limited to filing a complaint with the Department of Labor and Industry,
telling the employer of intention to file a complaint, or making a written demand for payment
to the employer as provided under section 177.27, subdivision 1.
new text end

Sec. 5.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:


new text begin Subd. 4. new text end

new text begin Enforcement. new text end

new text begin The commissioner may enforce this section. The use of an
enforcement provision in this section shall not preclude the use of any other enforcement
provision provided by law.
new text end

Sec. 6.

Minnesota Statutes 2018, section 181.03, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Effect on other laws. new text end

new text begin Nothing in this section shall be construed to limit the
application of other state or federal laws.
new text end

Sec. 7.

new text begin [181.741] EXPRESS PREEMPTION; UNIFORMITY OF PRIVATE
EMPLOYER MANDATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Employer" means a private person employing one or more employees in the state.
new text end

new text begin (c) "Local government" means a home rule charter city, statutory city, town, county, the
Metropolitan Council, a metropolitan agency as defined in section 473.121, subdivision 5a,
or a special district.
new text end

new text begin Subd. 2. new text end

new text begin Express preemption. new text end

new text begin (a) A local government must not adopt, enforce, or
administer an ordinance, local resolution, or local policy requiring an employer to pay an
employee a wage higher than the applicable state minimum wage rate provided in section
177.24.
new text end

new text begin (b) A local government must not adopt, enforce, or administer an ordinance, local
resolution, or local policy requiring an employer to provide either paid or unpaid leave time.
new text end

new text begin (c) A local government must not adopt, enforce, or administer an ordinance, local
resolution, or local policy regulating the hours or scheduling of work time that an employer
provides to an employee. This paragraph does not preempt an ordinance, local resolution,
or local policy limiting the hours a business may operate.
new text end

new text begin (d) A local government must not adopt, enforce, or administer an ordinance, local
resolution, or local policy requiring an employer to provide an employee a particular benefit
or terms of employment.
new text end

new text begin Subd. 3. new text end

new text begin Local governments as employers and contractors. new text end

new text begin This section does not
regulate wages, hours, benefits, paid or unpaid leave, attendance policies, or other terms of
employment that a local government:
new text end

new text begin (1) provides to its own employee;
new text end

new text begin (2) requires an employer to provide to its employee to the extent that employer is
providing goods or services to the local government, and the requirement applies specifically
to work performed in providing goods or services to the local government; or
new text end

new text begin (3) requires an employer to provide to its employee, to the extent that employer is
receiving funding from the local government or is providing goods or services funded in
whole or in part by the local government, when the requirement is an express condition of
the funding.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon final enactment and applies to
ordinances, local policies, and local resolutions enacted on or after January 1, 2017.
new text end

ARTICLE 5

WORKERS' COMPENSATION ADVISORY COUNCIL RECOMMENDATIONS

Section 1.

Minnesota Statutes 2018, section 176.1812, subdivision 2, is amended to read:


Subd. 2.

Filing and review.

new text begin(a) new text endA copy of the agreement and the approximate number
of employees who will be covered under it must be filed with the commissioner. Within 21
days of receipt of an agreement, the commissioner shall review the agreement for compliance
with this section and the benefit provisions of this chapter and notify the parties of any
additional information required or any recommended modification that would bring the
agreement into compliance. Upon receipt of any requested information or modification, the
commissioner must notify the parties within 21 days whether the agreement is in compliance
with this section and the benefit provisions of this chapter.

new text begin (b) After an agreement is approved by the commissioner under paragraph (a), a qualified
employer may join or withdraw from a qualified group of employers without commissioner
review or approval. The commissioner must be notified within 30 days when a qualified
employer joins or withdraws from a qualified group of employers.
new text end

new text begin (c) new text endIn order for any agreement to remain in effect, it must provide for a timely and
accurate method of reporting to the commissioner deleted text beginnecessary information regarding service
cost and utilization
deleted text endnew text begin the individual claims covered by the agreement and claim-specific
dispute resolution data, in the form and manner prescribed by the commissioner. Dispute
resolution data includes information about facilitation, mediation, and arbitration and shall
be provided annually to the commissioner
new text end to enable the commissioner to deleted text beginannuallydeleted text end report
new text begin aggregate dispute data new text endto the legislature. deleted text beginThe information provided to the commissioner
must include aggregate data on the:
deleted text end

deleted text begin (i) person hours and payroll covered by agreements filed;
deleted text end

deleted text begin (ii) number of claims filed;
deleted text end

deleted text begin (iii) average cost per claim;
deleted text end

deleted text begin (iv) number of litigated claims, including the number of claims submitted to arbitration,
the Workers' Compensation Court of Appeals, the Office of Administrative Hearings, the
district court, the Minnesota Court of Appeals or the supreme court;
deleted text end

deleted text begin (v) number of contested claims resolved prior to arbitration;
deleted text end

deleted text begin (vi) projected incurred costs and actual costs of claims;
deleted text end

deleted text begin (vii) employer's safety history;
deleted text end

deleted text begin (viii) number of workers participating in vocational rehabilitation; and
deleted text end

deleted text begin (ix) number of workers participating in light-duty programs.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (b) are effective June 1, 2019. Paragraph (c)
is effective August 1, 2020.
new text end

Sec. 2.

Minnesota Statutes 2018, section 176.231, subdivision 1, is amended to read:


Subdivision 1.

Time limitation.

new text begin(a) new text endWhere death or serious injury occurs to an employee
during the course of employment, the employer shall report the injury or death to the
commissioner and insurer within 48 hours after its occurrence. Where any other injury
occurs which wholly or partly incapacitates the employee from performing labor or service
for more than three calendar days, the employer shall report the injury to the insurer on a
form prescribed by the commissioner within ten days from its occurrence. An insurer and
self-insured employer shall report the injury to the commissioner no later than 14 days from
its occurrence. Where an injury has once been reported but subsequently death ensues, the
employer shall report the death to the commissioner and insurer within 48 hours after the
employer receives notice of this fact. An employer who provides notice to the Occupational
Safety and Health Division of the Department of Labor and Industry of a fatality within the
eight-hour time frame required by law, or of an inpatient hospitalization within the 24-hour
time frame required by law, has satisfied the employer's obligation under this section.

new text begin (b) At the time an injury is required to be reported to the commissioner, the insurer or
self-insured employer must also specify whether the injury is covered by a collective
bargaining agreement approved by the commissioner under section 176.1812. Notice must
be provided in the format and manner prescribed by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020.
new text end