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SF 3656

Conference Committee Report - 90th Legislature (2017 - 2018) Posted on 05/19/2018 07:09pm

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CONFERENCE COMMITTEE REPORT ON S.F. No. 3656

A bill for an act
relating to state government; appropriating money for agriculture, rural
development, housing, state government, public safety, transportation, environment,
natural resources, energy, jobs, economic development, higher education,
prekindergarten through grade 12 education, health, and human services; modifying
agriculture, rural development, and housing provisions; specifying conditions of
legislative ratification of proposed collective bargaining agreements; requiring
proposed changes to state employee group insurance to be submitted separately
to Legislative Coordinating Commission; requiring certain information about
collective bargaining agreements and compensation plans be submitted to
Legislative Coordinating Commission; creating transition period for Legislative
Budget Office to take responsibility for coordinating fiscal notes and local impact
notes; establishing Legislative Budget Office Oversight Commission; modifying
the effective date of certain provisions governing preparation of fiscal notes;
abolishing Office of MN.IT Services; establishing division of information
technology within Department of Administration; permitting agencies more
flexibility in contracting for information technology projects; requiring agencies
to determine impact of proposed rule on cost of residential construction or
remodeling; requiring notice to applicable legislative committees; precluding
adoption of residential construction rules having certain cost until after next
legislative session; exempting hair braiders from cosmetology registration
requirements; prohibiting exclusive representative from charging fair share fee to
nonmembers; investigating possible registration or voting by ineligible voters and
reporting to law enforcement; increasing penalties for child pornography offenses;
requiring reports on court-imposed stays of sentence or adjudication for sex
offenses; restricting grounds that permit reunification of parents and children after
parent sexually abuses child; increasing maximum penalty for certain invasion of
privacy crimes involving minors; requiring predatory offender registration for
certain invasion of privacy crimes involving minors; requiring collection of
information on connection between pornography and sex trafficking; expanding
authorized prostitution penalty assessment to include additional crimes; expanding
criminal sexual conduct offenses for persons in current or recent positions of
authority over juveniles and for peace officers who engage in sexual activity with
those in custody; extending sunset date for court technology fund; expanding list
of prior offenses that support a conviction of first-degree driving while impaired;
prohibiting Department of Human Rights from using federal funds to expand
program; modifying various provisions governing transportation and public safety
policy and finance; modifying certain loan programs; modifying energy provisions;
modifying environment and natural resources provisions; adding to and deleting
from state parks, recreation areas, and forests; modifying drainage law; creating
accounts; providing for disposition of certain receipts; modifying renewable
development account utility annual contribution; modifying solar energy incentive
program; establishing pension rate base; establishing criteria for utility cost recovery
of energy storage system pilot projects; establishing utility stakeholder group;
requiring investor-owned utilities to include in integrated resource plans an
assessment of energy storage systems; establishing solar energy grant program for
school districts; extending expiration date for an assessment; requiring creation of
an excavation notice system contact information database; requiring cost-benefit
analysis of energy storage systems; modifying job training program requirements;
limiting use of funds in Douglas J. Johnson economic protection trust fund;
modifying youth skills training program; modifying accessibility requirements for
public buildings; modifying fees for manufactured home installers; adopting
recommendations of Workers' Compensation Advisory Council; adjusting basis
for determining salary for judges of Workers' Compensation Court of Appeals;
adopting recommendations of Unemployment Insurance Advisory Council;
modifying certain higher education policy provisions; making clarifying and
technical changes to loan forgiveness and research grant programs; providing for
school safety, general education, education excellence, teachers, special education,
facilities and technology, libraries, early education, and state agencies; making
forecast adjustments; modifying provisions governing children and families,
licensing, state-operated services, chemical and mental health, community supports
and continuing care, and health care; modifying Department of Human Services
administrative funds transfer; establishing Minnesota Health Policy Commission;
repealing preferred incontinence program in medical assistance; increasing
reimbursement rates for doula services; modifying telemedicine service limits;
modifying EPSDT screening payments; modifying capitation payment delay;
modifying provisions relating to wells and borings; adding security screening
systems to ionizing radiation-producing equipment regulation; authorizing statewide
tobacco cessation services; establishing an opioid reduction pilot program;
establishing a low-value health services study; requiring coverage of 3D
mammograms; requiring disclosure of facility fees; establishing a step therapy
override process; requiring the synchronization of prescription refills; prohibiting
a health plan company from preventing a pharmacist from informing a patient of
a price differential; converting allied health professionals to a birth month renewal
cycle; modifying temporary license suspensions and background checks for
health-related professions; requiring a prescriber to access the prescription
monitoring program before prescribing certain controlled substances; authorizing
the Board of Pharmacy to impose a fee from a prescriber or pharmacist accessing
prescription monitoring data through a service offered by the board's vendor;
requiring administrative changes at the Office of Health Facility Complaints;
providing access to information and data sharing; making technical changes;
requiring rulemaking; requiring reports; amending Minnesota Statutes 2016,
sections 3.3005, subdivision 8; 3.855, subdivisions 1a, 2, by adding a subdivision;
10A.01, subdivision 35; 13.64, by adding a subdivision; 16A.103, subdivisions 1,
1b, by adding a subdivision; 16A.88, subdivision 2; 16A.97; 16E.01, subdivision
1; 16E.015, by adding a subdivision; 16E.016; 16E.02; 16E.055; 16E.14; 16E.18,
subdivisions 4, 6; 16E.21, subdivision 3; 17.117, subdivisions 1, 4; 17.494; 17.4982,
by adding subdivisions; 18.83, subdivision 7; 18C.425, subdivision 6; 18C.80,
subdivision 2; 21.89, subdivision 2; 41A.16, subdivisions 1, 2; 41A.17, subdivision
1; 62A.30, by adding a subdivision; 62D.115, subdivision 4; 80E.13; 84.0895,
subdivision 2; 84.86, subdivision 1; 86B.005, subdivision 8a; 86B.532, subdivision
1; 88.10, by adding a subdivision; 88.75, subdivision 1; 89.551; 92.50, by adding
a subdivision; 94.10, subdivision 2; 97A.051, subdivision 2; 97A.433, subdivisions
4, 5; 97B.015, subdivision 6; 97B.1055; 97C.345, subdivision 3a; 103B.3369,
subdivisions 5, 9; 103B.801, subdivisions 2, 5; 103E.021, subdivision 6; 103E.071;
103E.351, subdivision 1; 103F.361, subdivision 2; 103F.363, subdivision 1;
103F.365, by adding a subdivision; 103F.371; 103F.373, subdivisions 1, 3, 4;
103G.2242, subdivision 14; 103H.275, subdivision 1; 103I.205, subdivision 9;
103I.301, subdivision 6; 114D.15, subdivisions 7, 11, 13, by adding subdivisions;
114D.20, subdivisions 2, 3, 5, 7, by adding subdivisions; 114D.26; 114D.35,
subdivisions 1, 3; 115.03, subdivision 5, by adding a subdivision; 115.035;
115A.51; 115A.94, subdivisions 2, 4a, 4b, 4c, 4d, 5, by adding subdivisions;
116.07, subdivision 2, by adding a subdivision; 116.155, subdivision 1, by adding
a subdivision; 116.993, subdivisions 2, 6; 116J.8747, subdivisions 2, 4; 119B.011,
subdivision 19, by adding a subdivision; 119B.02, subdivision 7; 119B.03,
subdivision 9; 120A.20, subdivision 2; 122A.63, subdivisions 1, 4, 5, 6, by adding
a subdivision; 123B.595, by adding a subdivision; 123B.61; 124D.09, subdivisions
4, 22; 124D.151, subdivisions 2, 3; 124E.20, subdivision 1; 125B.26, subdivision
4, by adding a subdivision; 126C.10, subdivisions 2e, 24; 126C.17, subdivisions
1, 2, 5, 6, 7, 7a; 126C.40, subdivision 1; 126C.44; 127A.70, subdivision 2; 135A.15,
subdivision 2; 136A.15, subdivision 8; 136A.16, subdivisions 1, 2, 5, 8, 9;
136A.162; 136A.1701, subdivision 7; 136A.1791, subdivision 8; 136A.1795,
subdivision 2; 136A.64, subdivision 1; 136A.822, subdivision 10; 136A.901,
subdivision 1; 144.121, subdivision 1a, by adding a subdivision; 144A.53,
subdivision 2; 147.012; 147.02, by adding a subdivision; 147A.06; 147A.07;
147B.02, subdivision 9, by adding a subdivision; 147C.15, subdivision 7, by adding
a subdivision; 147D.17, subdivision 6, by adding a subdivision; 147D.27, by adding
a subdivision; 147E.15, subdivision 5, by adding a subdivision; 147E.40,
subdivision 1; 147F.07, subdivision 5, by adding subdivisions; 147F.17, subdivision
1; 148.7815, subdivision 1; 151.065, by adding a subdivision; 151.214; 151.71,
by adding a subdivision; 152.126, subdivisions 6, 10; 155A.25, subdivision 1a;
155A.28, by adding a subdivision; 161.088, subdivision 2; 161.115, subdivision
111; 161.14, by adding subdivisions; 161.32, subdivision 2; 168.013, subdivision
6; 168.101, subdivision 2a; 168.127, subdivisions 4, 6; 168.27, by adding
subdivisions; 168.301, subdivision 3; 168.326; 168.33, subdivision 8a, by adding
a subdivision; 168.346, subdivision 1; 168A.05, by adding a subdivision; 168A.12,
subdivision 2; 168A.151, subdivision 1; 168A.17, by adding a subdivision;
168A.29, subdivision 1; 169.011, subdivision 60; 169.14, subdivision 5; 169.18,
subdivisions 10, 11, 12; 169.20, by adding a subdivision; 169.26, subdivision 1;
169.28; 169.29; 169.71, subdivision 4; 169.81, subdivision 5, by adding a
subdivision; 169.8261, subdivision 2; 169.92, subdivision 4; 169.974, subdivision
2; 169A.24, subdivision 1; 171.041; 171.16, subdivisions 2, 3; 171.18, subdivision
1; 174.12, subdivision 8; 174.37, subdivision 6; 174.66; 175A.05; 176.231,
subdivision 9; 179A.06, subdivision 3; 201.022, by adding subdivisions; 205A.07,
subdivision 2; 214.075, subdivisions 1, 4, 5, 6; 214.077; 214.10, subdivision 8;
216B.16, by adding a subdivision; 216B.1641; 216B.1645, by adding a subdivision;
216B.2422, subdivision 1, by adding a subdivision; 216D.03, by adding a
subdivision; 216G.01, subdivision 3; 221.031, subdivision 2d; 221.0314,
subdivision 9; 221.036, subdivisions 1, 3; 221.122, subdivision 1; 221.161,
subdivision 1, by adding a subdivision; 221.171, subdivision 1; 243.166, subdivision
1b; 244.052, subdivision 4; 245.4889, by adding a subdivision; 245A.175; 245C.14;
245C.15, by adding a subdivision; 245C.22, by adding a subdivision; 245C.24,
by adding a subdivision; 245D.071, subdivision 5; 245D.091, subdivisions 2, 3,
4; 254A.035, subdivision 2; 254B.02, subdivision 1; 254B.06, subdivision 1;
256.01, subdivision 14b, by adding a subdivision; 256B.04, subdivision 14;
256B.0625, subdivision 58, by adding subdivisions; 256B.0659, subdivisions 3a,
11, 21, 24, 28, by adding a subdivision; 256B.0915, subdivision 6; 256B.092,
subdivisions 1b, 1g; 256B.093, subdivision 1; 256B.4914, subdivision 4; 256I.04,
by adding subdivisions; 256K.45, subdivision 2; 256M.41, subdivision 3, by adding
a subdivision; 256N.24, by adding a subdivision; 260.012; 260.835, subdivision
2; 268.035, subdivisions 4, 12; 268.044, subdivisions 2, 3; 268.047, subdivision
3; 268.051, subdivisions 2a, 3; 268.053, subdivision 1; 268.057, subdivision 5;
268.059; 268.066; 268.067; 268.069, subdivision 1; 268.085, subdivisions 3, 3a;
268.095, subdivision 6a; 268.105, subdivision 6; 268.145, subdivision 1; 299A.01,
by adding a subdivision; 299A.705; 299A.707, by adding a subdivision; 299A.785,
subdivision 1; 326B.106, subdivision 9; 326B.815, subdivision 1; 327.31, by
adding a subdivision; 327B.041; 327C.095, subdivisions 4, 6, 12, 13, by adding
a subdivision; 349A.05; 357.021, subdivision 2b; 360.013, by adding a subdivision;
360.017, subdivision 1; 360.021, subdivision 1; 360.062; 360.063, subdivisions
1, 3; 360.064, subdivision 1; 360.065, subdivision 1; 360.066, subdivision 1;
360.067, by adding a subdivision; 360.071, subdivision 2; 360.305, subdivision
6; 394.22, by adding a subdivision; 394.23; 394.231; 394.25, subdivision 3;
462.352, by adding a subdivision; 462.355, subdivision 1; 462.357, subdivision
9, by adding a subdivision; 462A.05, subdivision 14b; 462A.33, subdivisions 1,
2; 462A.37, subdivisions 1, 2; 473.13, by adding subdivisions; 473.149, subdivision
3; 473.3994, by adding a subdivision; 473.606, subdivision 5; 473.8441, subdivision
4; 474A.02, by adding subdivisions; 474A.03, subdivision 1; 474A.04, subdivision
1a; 474A.047, subdivision 2; 474A.061, subdivisions 1, 2a, 2b, 2c, 4, by adding
subdivisions; 474A.062; 474A.091, subdivisions 1, 2, 3, 5, 6, by adding a
subdivision; 474A.131, subdivisions 1, 1b, 2; 474A.14; 475.58, subdivision 4;
574.26, subdivision 1a; 609.3241; 609.341, subdivision 10; 609.342, subdivision
1; 609.343, subdivision 1; 609.344, subdivision 1; 609.345, subdivision 1; 609.746,
subdivision 1; 617.246, subdivisions 2, 3, 4, 7; 617.247, subdivisions 3, 4, 9;
626.556, by adding a subdivision; Minnesota Statutes 2017 Supplement, sections
3.8853, subdivisions 1, 2, by adding subdivisions; 3.972, subdivision 4; 3.98,
subdivisions 1, 4; 15A.083, subdivision 7; 16A.152, subdivision 2; 16E.0466,
subdivision 1; 18C.70, subdivision 5; 18C.71, subdivision 4; 84.01, subdivision
6; 84.925, subdivision 1; 84.9256, subdivision 1; 84D.03, subdivisions 3, 4;
84D.108, subdivisions 2b, 2c; 85.0146, subdivision 1; 89.17; 97A.075, subdivision
1; 103G.222, subdivision 3; 103G.2242, subdivision 1; 103I.005, subdivisions 2,
8a, 17a; 103I.205, subdivisions 1, 4; 103I.208, subdivision 1; 103I.235, subdivision
3; 103I.601, subdivision 4; 116.0714; 116C.779, subdivision 1; 116C.7792;
119B.011, subdivision 20; 119B.025, subdivision 1; 119B.06, subdivision 1;
119B.09, subdivision 1; 119B.095, subdivision 2; 119B.13, subdivision 1;
122A.187, by adding a subdivision; 123B.03, subdivision 1; 124D.151, subdivisions
5, 6; 124D.68, subdivision 2; 124E.03, subdivision 2; 136A.1275, subdivisions 2,
3; 136A.1789, subdivision 2; 136A.646; 136A.672, by adding a subdivision;
136A.822, subdivision 6; 136A.8295, by adding a subdivision; 147.01, subdivision
7; 147A.28; 147B.08; 147C.40; 152.105, subdivision 2; 161.088, subdivision 5;
168.013, subdivision 1a; 169.18, subdivision 7; 169.829, subdivision 4; 171.06,
subdivision 2; 175.46, subdivision 13; 216B.1691, subdivision 2f; 216B.241,
subdivision 1d; 216B.62, subdivision 3b; 245.4889, subdivision 1; 245A.03,
subdivision 7; 245A.06, subdivision 8; 245A.11, subdivision 2a; 245C.16,
subdivision 1; 245D.03, subdivision 1; 256B.0625, subdivisions 3b, 17; 256B.0911,
subdivisions 1a, 3a, 3f, 5; 256B.49, subdivision 13; 256B.4914, subdivisions 2,
3, 5, 10, 10a; 256I.03, subdivision 8; 256I.04, subdivision 2b; 256I.05, subdivision
3; 268.035, subdivisions 15, 20; 268.046, subdivision 1; 268.07, subdivision 1;
268.085, subdivision 13a; 268.095, subdivision 6; 268.18, subdivisions 2b, 5;
298.2215; 298.292, subdivision 2; 364.09; 462A.2035, subdivisions 1, 1b; 473.4051,
subdivision 2; 473.4485, subdivision 2; 475.59, subdivision 1; 477A.03, subdivision
2b; Laws 2010, chapter 361, article 4, section 78; Laws 2014, chapter 312, article
27, section 76; Laws 2015, First Special Session chapter 4, article 4, section 146,
as amended; Laws 2016, chapter 189, article 3, sections 3, subdivision 5; 48; Laws
2017, chapter 88, article 1, section 2, subdivisions 2, 4; Laws 2017, chapter 89,
article 1, section 2, subdivisions 18, 20, 29, 31, 32, 33, 34, 40; Laws 2017, chapter
94, article 1, sections 2, subdivisions 2, 3; 4, subdivision 5; 7, subdivision 7; 9;
Laws 2017, First Special Session chapter 1, article 4, section 31; Laws 2017, First
Special Session chapter 3, article 1, section 4, subdivisions 1, 2, 4; Laws 2017,
First Special Session chapter 4, article 1, section 10, subdivision 1; article 2,
sections 1; 3; 9; 58; Laws 2017, First Special Session chapter 5, article 1, section
19, subdivisions 2, 3, 4, 5, 6, 7, 9; article 2, sections 56; 57, subdivisions 2, 3, 4,
5, 6, 12, 21, 22, 23, 26, 34; article 4, section 12, subdivisions 2, as amended, 3, 4,
5; article 5, section 14, subdivisions 2, 3, 4; article 6, section 3, subdivisions 2, 3,
4; article 8, sections 9, subdivision 6; 10, subdivisions 5a, 6, 12; article 9, section
2, subdivision 2; article 10, section 6, subdivision 2; article 11, sections 9,
subdivision 2; 12; Laws 2017, First Special Session chapter 6, article 1, section
52; article 3, section 49; article 4, section 61; article 10, section 144; proposing
coding for new law in Minnesota Statutes, chapters 3; 11A; 14; 16A; 17; 62J; 62Q;
97A; 103B; 103F; 115; 115B; 116C; 120B; 123B; 124D; 136A; 144; 147A; 147B;
147C; 147D; 147E; 147F; 161; 168A; 176; 216C; 246; 256B; 260C; 299A; 327;
349A; 360; 383A; 609; repealing Minnesota Statutes 2016, sections 16A.98;
16E.145; 122A.63, subdivisions 7, 8; 126C.16, subdivisions 1, 3; 126C.17,
subdivision 9a; 136A.15, subdivisions 2, 7; 136A.1701, subdivision 12; 155A.28,
subdivisions 1, 3, 4; 168.013, subdivision 21; 214.075, subdivision 8; 221.161,
subdivisions 2, 3, 4; 256B.0625, subdivision 18b; 256B.0705; 268.053, subdivisions
4, 5; 349A.16; 360.063, subdivision 4; 360.065, subdivision 2; 360.066,
subdivisions 1a, 1b; Minnesota Statutes 2017 Supplement, section 256B.0625,
subdivision 31c; Laws 2008, chapter 368, article 1, section 21, subdivision 2; Laws
2016, chapter 189, article 25, section 62, subdivision 16; Laws 2017, First Special
Session chapter 4, article 2, section 59; Minnesota Rules, part 5600.0605, subparts
5, 8.

May 19, 2018
The Honorable Michelle L. Fischbach
President of the Senate
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
We, the undersigned conferees for S.F. No. 3656 report that we have agreed upon the
items in dispute and recommend as follows:
That the House recede from its amendments and that S.F. No. 3656 be further amended
as follows:
Delete everything after the enacting clause and insert:
"

ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown in
parentheses, subtracted from the appropriations in Laws 2017, First Special Session chapter
4, article 1, to the agencies and for the purposes specified in this article. The appropriations
are from the general fund, or another named fund, and are available for the fiscal years
indicated for each purpose. The figures "2018" and "2019" used in this article mean that
the appropriations listed under them are available for the fiscal year ending June 30, 2018,
or June 30, 2019, respectively.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. LEGISLATURE

$
.......
$
90,000

$90,000 is from the general fund to the
Legislative Coordinating Commission for rent
payments for the Office of the Revisor of
Statutes. This is a onetime appropriation.

Sec. 3. STATE AUDITOR

$
.......
$
(269,094)

This is a general reduction to office operations.
The auditor may not reduce operations or
services related to public pensions. This is a
onetime reduction.

Sec. 4. SECRETARY OF STATE

$
.......
$
1,534,000

(a) $1,534,000 is appropriated in fiscal year
2019 from the account established in
Minnesota Statutes, section 5.30, pursuant to
the Help America Vote Act, to the secretary
of state for the purposes of modernizing,
securing, and updating the statewide voter
registration system and for cyber security
upgrades as authorized by federal law. This is
a onetime appropriation and is available until
June 30, 2022.

(b) $110,000 expended by the secretary of
state in fiscal year 2018 for increasing secure
access to the statewide voter registration
system was money appropriated for carrying
out the purposes authorized under the
Omnibus Appropriations Act of 2018, Public
Law 115-1410, and the Help America Vote
Act of 2002, Public Law 107-252, section 101,
and is deemed to be credited towards any
match required by those laws.

Sec. 5. MINNESOTA MANAGEMENT AND
BUDGET

$
129,094
$
140,000

(a) $140,000 in fiscal year 2019 is from the
general fund for grants to reimburse the
documented litigation costs incurred by
counties in defending the constitutionality of
Minnesota Statutes, section 6.481, as enacted
in Laws 2015, chapter 77, article 2, section 3,
in Otto v. Wright County, et. al. (A16-1634).
The grants must be apportioned as follows:

(1) up to $70,000 is for a grant to Wright
County; and

(2) up to $70,000 is for a grant to Becker
County.

This is a onetime appropriation. The
commissioner must provide each grant upon
certification of the final litigation costs
incurred by the affected county, provided that
the total grant must not exceed the amounts
specified in this paragraph.

(b) Notwithstanding any provision of law to
the contrary, $129,094 in fiscal year 2018 is
from the general fund for a payment to the city
of Austin, for both its 2016 fire state aid
payment under Minnesota Statutes, section
69.021, subdivision 7, and its 2016
supplemental state aid payment under
Minnesota Statutes, section 423A.022, upon
certification by the city that the sum of the fire
state aid and the supplemental state aid that
the city transmitted to the Austin Parttime
Firefighters Relief Association in calendar
year 2015 to fund the volunteers firefighters'
service pensions met or exceeded the amount
required under the bylaws of that association.
Of these amounts:

(1) $103,892 is for the fire state aid; and

(2) $25,202 is for the supplemental state aid.

This is a onetime appropriation. The payment
required by this paragraph must be provided
no later than June 30, 2018.

Sec. 6. EFFECTIVE DATE.

This article is effective the day following final enactment.

ARTICLE 2

STATE GOVERNMENT OPERATIONS

Section 1.

Minnesota Statutes 2016, section 3.855, is amended by adding a subdivision
to read:


Subd. 5.

Information required.

The commissioner of management and budget must
submit to the Legislative Coordinating Commission the following information with the
submission of a collective bargaining agreement or compensation plan under subdivisions
2 and 3:

(1) for each agency and for each proposed agreement, a comparison of biennial
compensation costs under the current agreement or plan to the projected biennial
compensation costs under the proposed agreement or plan, paid with funds appropriated
from the general fund;

(2) for each agency and for each proposed agreement and plan, a comparison of biennial
compensation costs under the current agreement or plan to the projected compensation costs
under the proposed agreement or plan, paid with funds appropriated from each fund other
than the general fund;

(3) for each agency and for each proposed agreement and plan, an identification of the
amount of the additional biennial compensation costs that are attributable to salary and
wages and to the cost of nonsalary and nonwage benefits; and

(4) for each agency, for each of clauses (1) to (3), the impact of the aggregate of all
agreements and plans being submitted to the commission.

Sec. 2.

[5.42] DISPLAY OF BUSINESS ADDRESS ON WEB SITE.

(a) A business entity may request in writing that all addresses submitted by the business
entity to the secretary of state be omitted from display on the secretary of state's Web site.
A business entity may only request that all addresses be omitted from display if the entity
certifies that:

(1) there is only one shareholder, member, manager, or owner of the business entity;

(2) the shareholder, manager, member, or owner is a natural person; and

(3) at least one of the addresses provided is the residential address of the sole shareholder,
manager, member, or owner.

The secretary of state shall post a notice that this option is available and a link to the form
needed to make a request on the secretary's Web site. The secretary of state shall also attach
a copy of the request form to all business filing forms provided in a paper format that require
a business entity to submit an address.

(b) This section does not change the classification of data under chapter 13 and addresses
shall be made available to the public in response to requests made by telephone, mail,
electronic mail, and facsimile transmission.

EFFECTIVE DATE.

This section is effective August 1, 2018, and applies to business
entity filings filed with the secretary of state on or after that date.

Sec. 3.

Minnesota Statutes 2017 Supplement, section 6.481, subdivision 3, is amended to
read:


Subd. 3.

CPA firm audit.

(a) A county audit performed by a CPA firm must meet the
standards and be in a form meeting recognized industry auditing standards. The state auditor
may require additional information from the CPA firm if the state auditor determines that
is in the public interest, but the state auditor must accept the audit unless the state auditor
determines the audit or its form does not meet recognized industry auditing standards. The
state auditor may make additional examinations as the auditor determines to be in the public
interest.

(b) When the state auditor requires additional information from the CPA firm or makes
additional examinations that the state auditor determines to be in the public interest, the
state auditor must afford counties and CPA firms an opportunity to respond to potential
findings, conclusions, or questions, as follows:

(1) at least 30 days before beginning a review for work performed by a certified public
accountant firm licensed in chapter 326A, the state auditor must notify the county and CPA
firm that the state auditor will be conducting a review and must identify the type and scope
of review the state auditor will perform;

(2) throughout the state auditor's review, the auditor shall allow the county and the CPA
firm at least 30 days to respond to any request by the auditor for documents or other
information;

(3) the state auditor must provide the CPA firm with a draft report of the state auditor's
findings at least 30 days before issuing a final report;

(4) at least 20 days before issuing a final report, the state auditor must hold a formal exit
conference with the CPA firm to discuss the findings in the state auditor's draft report;

(5) the state auditor shall make changes to the draft report that are warranted as a result
of information provided by the CPA firm during the state auditor's review; and

(6) the state auditor's final report must include any written responses provided by the
CPA firm.

Sec. 4.

Minnesota Statutes 2016, section 13.072, subdivision 1, is amended to read:


Subdivision 1.

Opinion; when required.

(a) Upon request of a government entity or a
member of the legislature
, the commissioner may must give a written opinion on any question
relating to public the requirements of this chapter, including questions about access to
government data by a member of the public or another government entity, the rights of
subjects of data, or the classification of data under this chapter or other Minnesota statutes
governing government data practices. Upon request of any person who disagrees with a
determination regarding data practices made by a government entity, the commissioner may
must
give a written opinion regarding the person's rights as a subject of government data
or right to have access to government data.

(b) Upon request of a body subject to chapter 13D or a member of the legislature, the
commissioner may must give a written opinion on any question relating to the body's duties
under
requirements of chapter 13D. Upon request of a person who disagrees with the manner
in which members of a governing body perform their duties under chapter 13D, the
commissioner may must give a written opinion on compliance with chapter 13D. A governing
body or person requesting an opinion under this paragraph must pay the commissioner a
fee of $200. Money received by the commissioner under this paragraph is appropriated to
the commissioner for the purposes of this section.

(c) If the commissioner determines that no opinion will be issued, the commissioner
shall give the government entity or body subject to chapter 13D or person requesting the
opinion notice of the decision not to issue the opinion within five business days of receipt
of the request. If this notice is not given, the commissioner shall issue an opinion within 20
days of receipt of the request.

(d) (c) The commissioner shall issue an opinion under this subdivision within 20 days
of receipt of the request.
For good cause and upon written notice to the person requesting
the opinion, the commissioner may extend this deadline for one additional 30-day period.
The notice must state the reason for extending the deadline. The government entity or the
members of a body subject to this chapter or chapter 13D must be provided a reasonable
opportunity to explain the reasons for its decision regarding the data or how they perform
their duties under chapter 13D. The commissioner or the government entity or body subject
to chapter 13D may choose to give notice to the subject of the data concerning the dispute
regarding the data or compliance with this chapter or chapter 13D.

(e) (d) This section does not apply to a determination made by the commissioner of
health under section 13.3805, subdivision 1, paragraph (b), or 144.6581.

(f) (e) A written, numbered, and published opinion issued by the attorney general shall
take precedence over an opinion issued by the commissioner under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment and
applies to requests for opinions submitted on or after that date.

Sec. 5.

Minnesota Statutes 2016, section 16A.013, is amended by adding a subdivision to
read:


Subd. 1a.

Opportunity to make gifts via Web site.

The commissioner of management
and budget must maintain a secure Web site which permits any person to make a gift of
money electronically for any purpose authorized by subdivision 1. Gifts made using the
Web site are subject to all other requirements of this section, sections 16A.014 to 16A.016,
and any other applicable law governing the receipt of gifts by the state and the purposes for
which a gift may be used. The Web site must include historical data on the total amount of
gifts received using the site, itemized by month.

Sec. 6.

Minnesota Statutes 2017 Supplement, section 16A.152, subdivision 2, is amended
to read:


Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account reaches
$1,596,522,000;

(3) the amount necessary to increase the aid payment schedule for school district aids
and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
tenth of a percent without exceeding the amount available and with any remaining funds
deposited in the budget reserve; and

(4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5
, by the same amount; and.

(5) the clean water fund established in section 114D.50 until $22,000,000 has been
transferred into the fund.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

(d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been
made.

Sec. 7.

[16E.031] STATE AND LOCAL GOVERNMENT USER ACCEPTANCE
TESTING.

(a) Any state agency implementing a new information technology business software
application or new business software application functionality that significantly impacts
the operations of local units of government must provide opportunities for local government
representative involvement in user acceptance testing, unless the testing is deemed not
feasible or necessary by the relevant agency commissioner, in consultation with
representatives of local units of government and the chief information officer.

(b) The requirements in paragraph (a) only apply to new software applications and new
software application functionality where local units of government will be primary users,
as determined by the relevant agency head in consultation with representatives of local units
of government and the chief information officer. The requirements in paragraph (a) do not
apply to routine software upgrades or application changes that are primarily intended to
comply with federal law, rules, or regulations.

(c) School districts are not local units of government for the purposes of this section.

EFFECTIVE DATE.

This section is effective July 1, 2018, and applies to business
software application projects initiated on or after that date.

Sec. 8.

Minnesota Statutes 2016, section 155A.25, subdivision 1a, is amended to read:


Subd. 1a.

Schedule.

(a) The schedule for fees and penalties is as provided in this
subdivision.

(b) Three-year license fees are as follows:

(1) $195 initial practitioner, manager, or instructor license, divided as follows:

(i) $155 for each initial license; and

(ii) $40 for each initial license application fee;

(2) $115 renewal of practitioner license, divided as follows:

(i) $100 for each renewal license; and

(ii) $15 for each renewal application fee;

(3) $145 renewal of manager or instructor license, divided as follows:

(i) $130 for each renewal license; and

(ii) $15 for each renewal application fee;

(4) $350 initial salon license, divided as follows:

(i) $250 for each initial license; and

(ii) $100 for each initial license application fee;

(5) $225 renewal of salon license, divided as follows:

(i) $175 for each renewal; and

(ii) $50 for each renewal application fee;

(6) $4,000 initial school license, divided as follows:

(i) $3,000 for each initial license; and

(ii) $1,000 for each initial license application fee; and

(7) $2,500 renewal of school license, divided as follows:

(i) $2,000 for each renewal; and

(ii) $500 for each renewal application fee.

(c) Penalties may be assessed in amounts up to the following:

(1) reinspection fee, $150;

(2) manager and owner with expired practitioner found on inspection, $150 each;

(3) expired practitioner or instructor found on inspection, $200;

(4) expired salon found on inspection, $500;

(5) expired school found on inspection, $1,000;

(6) failure to display current license, $100;

(7) failure to dispose of single-use equipment, implements, or materials as provided
under section 155A.355, subdivision 1, $500;

(8) use of prohibited razor-type callus shavers, rasps, or graters under section 155A.355,
subdivision 2
, $500;

(9) performing nail or cosmetology services in esthetician salon, or performing esthetician
or cosmetology services in a nail salon, $500;

(10) owner and manager allowing an operator to work as an independent contractor,
$200;

(11) operator working as an independent contractor, $100;

(12) refusal or failure to cooperate with an inspection, $500;

(13) practitioner late renewal fee, $45; and

(14) salon or school late renewal fee, $50.

(d) Administrative fees are as follows:

(1) homebound service permit, $50 three-year fee;

(2) name change, $20;

(3) certification of licensure, $30 each;

(4) duplicate license, $20;

(5) special event permit, $75 per year;

(6) registration of hair braiders, $20 per year;

(7) (6) $100 for each temporary military license for a cosmetologist, nail technician,
esthetician, or advanced practice esthetician one-year fee;

(8) (7) expedited initial individual license, $150;

(9) (8) expedited initial salon license, $300;

(10) (9) instructor continuing education provider approval, $150 each year; and

(11) (10) practitioner continuing education provider approval, $150 each year.

Sec. 9.

Minnesota Statutes 2016, section 155A.28, is amended by adding a subdivision to
read:


Subd. 5.

Hair braiders exempt.

The practice of hair braiding is exempt from the
requirements of this chapter.

Sec. 10.

Minnesota Statutes 2016, section 201.022, is amended by adding a subdivision
to read:


Subd. 4.

Voter records updated due to voting report.

No later than eight weeks after
the election, the county auditor must use the statewide voter registration system to produce
a report that identifies each voter whose record indicates that it was updated due to voting.
The county auditor must investigate each record that is challenged for a reason related to
eligibility to determine if the voter appears to have been ineligible to vote. If the county
auditor determines that a voter appears to have been ineligible to vote and either registered
to vote or voted in the previous election, the county auditor must notify the law enforcement
agency or the county attorney as provided in section 201.275.

Sec. 11.

Minnesota Statutes 2016, section 201.022, is amended by adding a subdivision
to read:


Subd. 5.

Inactive voter report.

By November 6, 2018, the secretary of state must develop
a report within the statewide voter registration system that provides information on inactive
voters who registered on election day and were possibly ineligible. For elections on or after
November 6, 2018, no later than eight weeks after the election, the county auditor must use
the statewide voter registration system to produce the report. The county auditor must
investigate each record to determine if the voter appears to have been ineligible to vote. If
the county auditor determines that a voter appears to have been ineligible to vote and
registered to vote in the previous election, the county auditor must notify the law enforcement
agency or the county attorney as provided in section 201.275.

Sec. 12.

Minnesota Statutes 2016, section 240.01, is amended by adding a subdivision to
read:


Subd. 18a.

Racing or gaming-related vendor.

"Racing or gaming-related vendor"
means any person or entity that manufactures, sells, provides, distributes, repairs, or maintains
equipment or supplies used at a Class A facility or provides services to a Class A facility
or Class B license holder that are directly related to the running of a horse race, simulcasting,
pari-mutuel betting, or card playing.

Sec. 13.

Minnesota Statutes 2016, section 240.02, subdivision 6, is amended to read:


Subd. 6.

Annual report.

The commission shall on February 15 of each odd-numbered
year submit a report to the governor and legislature on its activities, organizational structure,
receipts and disbursements, and recommendations for changes in the laws relating to racing
and pari-mutuel betting.

Sec. 14.

Minnesota Statutes 2016, section 240.08, subdivision 5, is amended to read:


Subd. 5.

Revocation and suspension.

(a) The commission may revoke a class C license
for a violation of law or rule which in the commission's opinion adversely affects the integrity
of horse racing in Minnesota, the public health, welfare, or safety, or for an intentional false
statement made in a license application.

The commission may suspend a class C license for up to one year for a violation of law,
order or rule.

The commission may delegate to its designated agents the authority to impose suspensions
of class C licenses, and the revocation or suspension of a class C license may be appealed
to the commission according to its rules.

(b) A license revocation or suspension If the commission revokes or suspends a license
for more than 90 180 days is, in lieu of appealing to the commission under paragraph (a),
the license holder has the right to request
a contested case hearing under sections 14.57 to
14.69 of the Administrative Procedure Act and is in addition to criminal penalties imposed
for a violation of law or rule.
chapter 14. The request must be made in writing to the
commission by certified mail or personal service. A request sent by certified mail must be
postmarked within ten days after the license holder receives the revocation or suspension
order from the commission. A request sent by personal service must be received by the
commission within ten days after the license holder receives the revocation or suspension
order from the commission.
The commission may summarily suspend a license for more
than
up to 90 days prior to a contested case hearing where it is necessary to ensure the
integrity of racing or to protect the public health, welfare, or safety. The license holder may
appeal a summary suspension by making a written request to the commission within five
calendar days after the license holder receives notice of the summary suspension.
A contested
case
hearing must be held within 30 ten days of the commission's receipt of the request for
appeal of a
summary suspension and the administrative law judge's report must be issued
within 30 days from the close of the hearing record. In all cases involving summary
suspension the commission must issue its final decision within 30 days from receipt of the
report of the administrative law judge and subsequent exceptions and argument under section
14.61.
to determine whether the license should remain suspended pending a final disciplinary
action.

Sec. 15.

Minnesota Statutes 2016, section 240.131, subdivision 7, is amended to read:


Subd. 7.

Payments to state.

(a) A regulatory fee is imposed at the rate of one percent
of all amounts wagered by Minnesota residents with an authorized advance deposit wagering
provider. The fee shall be declared on a form prescribed by the commission. The ADW
provider must pay the fee to the commission no more than seven 15 days after the end of
the month in which the wager was made. Fees collected under this paragraph must be
deposited in the state treasury and credited to a racing and card-playing regulation account
in the special revenue fund and are appropriated to the commission to offset the costs
associated with regulating horse racing and pari-mutuel wagering in Minnesota.

(b) A breeders fund fee is imposed in the amount of one-quarter of one percent of all
amounts wagered by Minnesota residents with an authorized advance deposit wagering
provider. The fee shall be declared on a form prescribed by the commission. The ADW
provider must pay the fee to the commission no more than seven 15 days after the end of
the month in which the wager was made. Fees collected under this paragraph must be
deposited in the state treasury and credited to a racing and card-playing regulation account
in the special revenue fund and are appropriated to the commission to offset the cost of
administering the breeders fund and promote horse breeding in Minnesota.

Sec. 16.

Minnesota Statutes 2016, section 240.22, is amended to read:


240.22 FINES.

(a) The commission shall by rule establish a schedule of civil fines for violations of laws
related to horse racing or of the commission's rules. The schedule must be based on and
reflect the culpability, frequency and severity of the violator's actions. The commission may
impose a fine from this schedule on a licensee for a violation of those rules or laws relating
to horse racing. The fine is in addition to any criminal penalty imposed for the same violation.
Fines imposed by the commission must be paid to the commission and except as provided
in paragraph (c), forwarded to the commissioner of management and budget for deposit in
the state treasury and credited to a racing and card-playing regulation account in the special
revenue fund and appropriated to the commission to distribute in the form of grants, contracts,
or expenditures
to support racehorse adoption, retirement, and repurposing.

(b) If the commission issues a fine in excess of $5,000, the license holder has the right
to request a contested case hearing under chapter 14, to be held as set forth in Minnesota
Rules, chapter 1400. The appeal of a fine must be made in writing to the commission by
certified mail or personal service. An appeal sent by certified mail must be postmarked
within ten days after the license holder receives the fine order from the commission. An
appeal sent by personal service must be received by the commission within ten days after
the license holder receives the fine order from the commission.

(c) If the commission is the prevailing party in a contested case proceeding, the
commission may recover, from amounts to be forwarded under paragraph (a), reasonable
attorney fees and costs associated with the contested case.

Sec. 17.

Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:


Subdivision 1.

Biennial report.

The commissioner shall report to the legislature by
March 1 of each odd-numbered year on the overall incidence of the income tax, sales and
excise taxes, and property tax. The report shall present information on the distribution of
the tax burden as follows: (1) for the overall income distribution, using a systemwide
incidence measure such as the Suits index or other appropriate measures of equality and
inequality; (2) by income classes, including at a minimum deciles of the income distribution;
and (3) by other appropriate taxpayer characteristics. The report must also include information
on the distribution of the burden of federal taxes borne by Minnesota residents.

Sec. 18.

Minnesota Statutes 2016, section 349A.06, subdivision 11, is amended to read:


Subd. 11.

Cancellation, suspension, and refusal to renew contracts or locations.

(a)
The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer from
selling lottery tickets at a business location who:

(1) has been convicted of a felony or gross misdemeanor;

(2) has committed fraud, misrepresentation, or deceit;

(3) has provided false or misleading information to the lottery; or

(4) has acted in a manner prejudicial to public confidence in the integrity of the lottery.

(b) The director may cancel, suspend, or refuse to renew the contract of any lottery
retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:

(1) changes business location;

(2) fails to account for lottery tickets received or the proceeds from tickets sold;

(3) fails to remit funds to the director in accordance with the director's rules;

(4) violates a law or a rule or order of the director;

(5) fails to comply with any of the terms in the lottery retailer's contract;

(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;

(7) in the opinion of the director fails to maintain a sufficient sales volume to justify
continuation as a lottery retailer; or

(8) has violated section 340A.503, subdivision 2, clause (1), two or more times within
a two-year period; or

(9) has violated the rules adopted pursuant to subdivision 6, clause (1), requiring a lottery
retailer to retain appropriate amounts from gross receipts from the sale of lottery tickets in
order to pay prizes to holders of winning tickets, three or more times within a one-year
period
.

(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's contract
or prohibit a lottery retailer from selling lottery tickets at a business location if there is a
material change in any of the factors considered by the director under subdivision 2.

(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery retailer
from selling lottery tickets at a business location under this subdivision is a contested case
under sections 14.57 to 14.69 and is in addition to any criminal penalties provided for a
violation of law or rule.

(e) The director may temporarily suspend a contract or temporarily prohibit a lottery
retailer from selling lottery tickets at a business location without notice for any of the reasons
specified in this subdivision provided that a hearing is conducted within seven days after a
request for a hearing is made by a lottery retailer. Within 20 days after receiving the
administrative law judge's report, the director shall issue an order vacating the temporary
suspension or prohibition or making any other appropriate order. If no hearing is requested
within 30 days of the temporary suspension or prohibition taking effect, the suspension or
prohibition becomes permanent unless the director vacates or modifies the order.

(f) A lottery retailer whose contract was solely canceled, suspended, or not renewed
pursuant to paragraph (b), clause (9), may petition the director to reinstate a canceled or
suspended contract, or enter into a new contract, after two years have passed since the order
took effect.

Sec. 19. VALUATION OF PIPELINE OPERATING PROPERTY;
ADMINISTRATIVE RULES.

(a) No later than January 1, 2019, the commissioner of revenue must adopt amendments
to applicable administrative rules, including Minnesota Rules, part 8100.0300, related to
the valuation of pipeline operating property in Minnesota. The amendments must be designed
to improve the valuation methodology so that it produces a more accurate estimate of market
value. The commissioner must consider recent agreements, settlements, and judgments
related to state-assessed pipeline operating property valuations that resulted in an increase
or decrease in assessed market value in developing the amendments required by this section.

(b) The commissioner may use the expedited rulemaking process under Minnesota
Statutes, section 14.389, to adopt the rules required by this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 20. VALUATION METHOD OF PUBLIC UTILITY OPERATING PROPERTY;
REPORT.

(a) The commissioner of revenue shall prepare a report on the valuation of the operating
property of public utilities, as defined in Minnesota Statutes, section 216B.02, subdivision
4, in the state of Minnesota.

(b) The report must compile and explain, in detail, the number of state-assessed public
utility valuations that have been appealed in the last 20 years, the basis for the appeals, and
the extent to which the market value was increased or reduced, by agreement, settlement,
or judgment, and list and provide detail on the taxing jurisdictions that have been issued a
refund order in the last 20 years as a result of agreement, settlement, or judgment, including
the year and amount paid.

(c) The commissioner shall submit the report to the committees of the house of
representatives and senate having jurisdiction over taxes by December 1, 2018, and file the
report as required by Minnesota Statutes, section 3.195.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 21. NORDIC WORLD CUP SKI CHAMPIONSHIP.

(a) Upon request of U.S. Ski and Snowboard, The Loppet Foundation, or other affiliated
organization, the Minnesota Amateur Sports Commission must support the preparation and
submission of a competitive bid to host an International Ski Federation Nordic World Cup
Ski Championship event in Minnesota. If the event is awarded, the commission must partner
with the organizing committee as an event host. Commission activities may include but are
not limited to assisting in the development of public-private partnerships to support the
event; soliciting sponsors; participating in public outreach activities; permitting the
commission's facilities to be developed and used as event venues; and providing other
administrative, technical, logistical, or financial support, within available resources.

(b) Within 30 days after a bid is submitted and, if an event is awarded to Minnesota as
a host, within 30 days after receiving notice of the award, the commission must notify the
chairs and ranking minority members of the legislative committees with jurisdiction over
the commission. The notification must describe the commission's work in support of the
event and indicate whether the commission anticipates seeking supplemental state or local
funds or other public resources to continue that work.

EFFECTIVE DATE.

This section is effective the day following final enactment and
expires upon conclusion of a Nordic World Cup Ski Championship event hosted in
Minnesota.

Sec. 22. REPEALER.

Minnesota Statutes 2016, section 155A.28, subdivisions 1, 3, and 4, are repealed effective
July 1, 2018.

ARTICLE 3

LEGISLATIVE BUDGET OFFICE

Section 1.

Minnesota Statutes 2017 Supplement, section 3.8853, subdivision 1, is amended
to read:


Subdivision 1.

Establishment; duties.

The Legislative Budget Office is established
under control of the Legislative Coordinating Commission to provide the house of
representatives and senate with nonpartisan, accurate, and timely information on the fiscal
impact of proposed legislation, without regard to political factors.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 3.8853, subdivision 2, is amended
to read:


Subd. 2.

Director; staff.

The Legislative Coordinating Commission Legislative Budget
Office Oversight Commission
must appoint a director who and establish the director's duties.
The director
may hire staff necessary to do the work of the office. The director serves in
the unclassified service for
a term of six years and may not be removed during a term except
for cause after a public hearing.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 3.

Minnesota Statutes 2017 Supplement, section 3.8853, is amended by adding a
subdivision to read:


Subd. 3.

Uniform standards and procedures.

The director of the Legislative Budget
Office must adopt uniform standards and procedures governing the timely preparation of
fiscal notes as required by this section and section 3.98. The standards and procedures are
not effective until they are approved by the Legislative Budget Office Oversight Commission.
Upon approval, the standards and procedures must be published in the State Register and
on the office's Web site.

EFFECTIVE DATE.

This section is effective September 1, 2019, except that the
uniform standards and procedures to be used may be developed and adopted by the oversight
commission prior to the effective date of this section.

Sec. 4.

Minnesota Statutes 2017 Supplement, section 3.8853, is amended by adding a
subdivision to read:


Subd. 4.

Access to data; treatment.

Upon request of the director of the Legislative
Budget Office, the head or chief administrative officer of each department or agency of
state government, including the Supreme Court, must promptly supply data that are used
to prepare a fiscal note, including data that are not public data under section 13.64 or other
applicable law, unless there are federal laws or regulations that prohibit the provision of the
not public data for this purpose. Not public data supplied under this subdivision may only
be used by the Legislative Budget Office to review a department or agency's work in
preparing a fiscal note and may not be used or disseminated for any other purpose, including
use by or dissemination to a legislator or to any officer, department, agency, or committee
within the legislative branch. Violation of this subdivision by the director or other staff of
the Legislative Budget Office is cause for removal, suspension without pay, or immediate
dismissal at the direction of the oversight commission.

EFFECTIVE DATE.

This section is effective September 1, 2019.

Sec. 5.

Minnesota Statutes 2017 Supplement, section 3.8853, is amended by adding a
subdivision to read:


Subd. 5.

Fiscal note delivery and posting.

The director of the Legislative Budget Office
must deliver a completed fiscal note to the legislative committee chair who made the request,
and to the chief author of the legislation to which it relates. Within 24 hours of completion
of a fiscal note, the director of the Legislative Budget Office must post a completed fiscal
note on the office's public Web site. This subdivision does not apply to an unofficial fiscal
note that is not public data under section 13.64, subdivision 3.

EFFECTIVE DATE.

This section is effective September 1, 2019.

Sec. 6.

[3.8854] LEGISLATIVE BUDGET OFFICE OVERSIGHT COMMISSION.

(a) The Legislative Budget Office Oversight Commission consists of:

(1) two members of the senate appointed by the senate majority leader;

(2) two members of the senate appointed by the senate minority leader;

(3) two members of the house of representatives appointed by the speaker of the house;
and

(4) two members of the house of representatives appointed by the minority leader.

The director of the Legislative Budget Office is the executive secretary of the commission.
The chief nonpartisan fiscal analyst of the house of representatives, the lead nonpartisan
fiscal analyst of the senate, the commissioner of management and budget or a designee, and
the legislative auditor are ex officio, nonvoting members of the commission.

(b) Members serve at the pleasure of the appointing authority, or until they are not
members of the legislative body from which they were appointed. Appointing authorities
shall fill vacancies on the commission within 30 days of a vacancy being created.

(c) The commission shall meet in January of each odd-numbered year to elect its chair
and vice-chair. They shall serve until successors are elected. The chair and vice-chair shall
alternate biennially between the senate and the house of representatives. The commission
shall meet at the call of the chair. The members shall serve without compensation but may
be reimbursed for their reasonable expenses consistent with the rules of the legislature
governing expense reimbursement.

(d) The commission shall review the work of the Legislative Budget Office and make
recommendations, as the commission determines necessary, to improve the office's ability
to fulfill its duties, and shall perform other functions as directed by this section, and sections
3.8853 and 3.98.

Sec. 7.

Minnesota Statutes 2017 Supplement, section 3.98, subdivision 1, is amended to
read:


Subdivision 1.

Preparation; duties.

(a) The head or chief administrative officer of each
department or agency of the state government, including the Supreme Court, shall cooperate
with the Legislative Budget Office and the Legislative Budget Office must
prepare a fiscal
note consistent with the standards and procedures adopted under section 3.8853, at the
request of the chair of the standing committee to which a bill has been referred, or the chair
of the house of representatives Ways and Means Committee, or the chair of the senate
Committee on Finance.

(b) Upon request of the Legislative Budget Office, the head or chief administrative
officer of each department or agency of state government, including the Supreme Court,
must promptly supply all information necessary for the Legislative Budget Office to prepare
an accurate and timely fiscal note.

(c) The Legislative Budget Office may adopt standards and guidelines governing timing
of responses to requests for information and governing access to data, consistent with laws
governing access to data. Agencies must comply with these standards and guidelines and
the Legislative Budget Office must publish them on the office's Web site.

(d) (b) For purposes of this subdivision, "Supreme Court" includes all agencies,
committees, and commissions supervised or appointed by the state Supreme Court or the
state court administrator.

EFFECTIVE DATE.

This section is effective September 1, 2019.

Sec. 8.

Minnesota Statutes 2016, section 10A.01, subdivision 35, is amended to read:


Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative auditor,
director of the Legislative Budget Office, chief clerk of the house of representatives, revisor
of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of
Senate Counsel, Research, and Fiscal Analysis, House Research, or the House Fiscal Analysis
Department;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a state
board or commission that has either the power to adopt, amend, or repeal rules under chapter
14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend, or
repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of Administrative
Hearings or unemployment law judge in the Department of Employment and Economic
Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the Department
of Public Safety;

(15) member or executive director of the Higher Education Facilities Authority;

(16) member of the board of directors or president of Enterprise Minnesota, Inc.;

(17) member of the board of directors or executive director of the Minnesota State High
School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755;

(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;

(20) manager of a watershed district, or member of a watershed management organization
as defined under section 103B.205, subdivision 13;

(21) supervisor of a soil and water conservation district;

(22) director of Explore Minnesota Tourism;

(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section
97A.056;

(24) citizen member of the Clean Water Council established in section 114D.30;

(25) member or chief executive of the Minnesota Sports Facilities Authority established
in section 473J.07;

(26) district court judge, appeals court judge, or Supreme Court justice;

(27) county commissioner;

(28) member of the Greater Minnesota Regional Parks and Trails Commission; or

(29) member of the Destination Medical Center Corporation established in section
469.41.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 9.

Minnesota Statutes 2016, section 13.64, is amended by adding a subdivision to
read:


Subd. 4.

Fiscal note data must be shared with Legislative Budget Office.

A head or
chief administrative officer of a department or agency of the state government, including
the Supreme Court, must provide data that are used to prepare a fiscal note, including data
that are not public data under this section to the director of the Legislative Budget Office
upon the director's request and consistent with section 3.8853, subdivision 4, unless there
are federal laws or regulations that prohibit the provision of the not public data for this
purpose. The data must be supplied according to any standards and procedures adopted
under section 3.8853, subdivision 3, including any standards and procedures governing
timeliness. Notwithstanding section 13.05, subdivision 9, a responsible authority may not
require the Legislative Budget Office to pay a cost for supplying data requested under this
subdivision.

EFFECTIVE DATE.

This section is effective September 1, 2019.

Sec. 10.

Laws 2017, First Special Session chapter 4, article 2, section 1, the effective date,
is amended to read:


EFFECTIVE DATE.

This section is effective January 8, 2019 July 1, 2018.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 11.

Laws 2017, First Special Session chapter 4, article 2, section 3, the effective date,
is amended to read:


EFFECTIVE DATE.

Except where otherwise provided by law, this section is effective
January 8, 2019 July 1, 2018.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 12.

Laws 2017, First Special Session chapter 4, article 2, section 9, the effective date,
is amended to read:


EFFECTIVE DATE.

This section is effective January 8, 2019 September 1, 2019.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 13.

Laws 2017, First Special Session chapter 4, article 2, section 58, the effective
date, is amended to read:


EFFECTIVE DATE.

This section is effective January 8, 2019. September 1, 2019.
The contract required under this section must be approved by the Legislative Budget Office
Oversight Commission and be executed no later than November 1, 2018, and must provide
for transfer of operational control of the fiscal note tracking system to the Legislative Budget
Office effective September 1, 2019.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 14. LEGISLATIVE BUDGET OFFICE OVERSIGHT COMMISSION; FIRST
APPOINTMENTS; FIRST CHAIR; FIRST MEETING.

Appointments to the Legislative Budget Office Oversight Commission under Minnesota
Statutes, section 3.8854, must be made by July 1, 2018. The chair of the Legislative
Coordinating Commission must designate one appointee to convene the commission's first
meeting and serve as its chair until a chair is elected by the commission as provided in
Minnesota Statutes, section 3.8854. The designated appointee must convene the first meeting
no later than July 15, 2018.

Sec. 15. LEGISLATIVE BUDGET OFFICE DIRECTOR ORIENTATION AND
TRAINING.

Before September 1, 2019, the commissioner of management and budget shall provide
orientation and training to the director of the Legislative Budget Office and any staff of the
Legislative Budget Office designated by the director on the use of the fiscal note system.
The commissioner of management and budget must provide opportunities to the director
of the Legislative Budget Office and staff designated by the director of the Legislative
Budget Office to learn from the Department of Management and Budget's work on fiscal
note requests during the 2019 regular legislative session to facilitate the transfer of duties
required by this act.

Sec. 16. REPEALER.

(a) Minnesota Statutes 2017 Supplement, section 3.98, subdivision 4, is repealed effective
September 1, 2019.

(b) Laws 2017, First Special Session chapter 4, article 2, section 59, is repealed.

EFFECTIVE DATE.

This section is effective the day following final enactment unless
a different date is specified.

ARTICLE 4

INFORMATION TECHNOLOGY

Section 1.

[3.9736] EVALUATION OF INFORMATION TECHNOLOGY
PROJECTS.

Subdivision 1.

Definition.

For purposes of this section, "information technology project"
means a project managed or performed by the Office of MN.IT Services on behalf of a state
agency.

Subd. 2.

Selection of project for review; schedule for evaluation; report.

Annually,
the legislative auditor may submit to the Legislative Audit Commission a list of three to
five information technology projects proposed for review. In selecting projects to include
on the list, the legislative auditor may consider the cost of the project to the state, the impact
of the project on state agencies and public users, and the legislature's interest in ensuring
that state agencies meet the needs of the public. The legislative auditor may include
completed projects and ongoing projects and shall give particular consideration to forensic
review of high-profile problematic projects from which recommendations may be developed
to prevent problems on future projects. Annually, the Legislative Audit Commission may
select at least one information technology project for the legislative auditor's evaluation.
The legislative auditor may evaluate the selected information technology project according
to an evaluation plan established under subdivision 3 and submit a written report to the
Legislative Audit Commission.

Subd. 3.

Evaluation plan.

The Legislative Audit Commission may establish an evaluation
plan that identifies elements the legislative auditor must include in an evaluation of an
information technology project. The Legislative Audit Commission may modify the
evaluation plan as needed.

Sec. 2.

Minnesota Statutes 2016, section 16A.11, subdivision 1, is amended to read:


Subdivision 1.

When.

The governor shall submit a three-part budget to the legislature.
Parts one and two, the budget message and detailed operating budget, must be submitted
by the fourth Tuesday in January in each odd-numbered year. However, in a year following
the election of a governor who had not been governor the previous year, parts one and two
must be submitted by the third Tuesday in February. Part three, the detailed recommendations
as to capital expenditure, must be submitted as follows: agency capital budget requests by
July 15 of each odd-numbered year, and governor's recommendations by January 15 of each
even-numbered year. Detailed recommendations as to information technology expenditure
must be submitted as part of the detailed operating budget. Information technology
recommendations must include projects to be funded during the next biennium and planning
estimates for an additional two bienniums. Information technology recommendations must
specify purposes of the funding such as infrastructure, hardware, software, or training.

Sec. 3.

Minnesota Statutes 2016, section 16A.11, is amended by adding a subdivision to
read:


Subd. 6a.

Information technology and cyber security.

(a) Detailed recommendations
as to information and telecommunications technology systems and services expenditures
must be submitted as part of the detailed operating budget. These recommendations must
include projects to be funded during the next biennium and planning estimates for an
additional two bienniums and must specify purposes of the funding, such as infrastructure,
hardware, software, or training. The detailed operating budget must also separately
recommend expenditures for the maintenance and enhancement of cyber security for the
state's information and telecommunications technology systems and services.

(b) The commissioner of management and budget, in consultation with the state chief
information officer, shall establish budget guidelines for the recommendations required by
this subdivision. Unless otherwise set by the commissioner at a higher amount, the amount
to be budgeted each fiscal year for maintenance and enhancement of cyber security must
be at least 3.5 percent of a department's or agency's total operating budget for information
and telecommunications technology systems and services in that year.

(c) As used in this subdivision:

(1) "cyber security" has the meaning given in section 16E.03, subdivision 1, paragraph
(d); and

(2) "information and telecommunications technology systems and services" has the
meaning given in section 16E.03, subdivision 1, paragraph (a).

Sec. 4.

Minnesota Statutes 2016, section 16E.03, subdivision 7, is amended to read:


Subd. 7.

Cyber security systems.

In consultation with the attorney general and
appropriate agency heads, the chief information officer shall develop cyber security policies,
guidelines, and standards, and shall install and administer state data security systems on the
state's computer facilities consistent with these policies, guidelines, standards, and state law
to ensure the integrity of computer-based and other data and to ensure applicable limitations
on access to data, consistent with the public's right to know as defined in chapter 13. The
chief information officer is responsible for overall security of state agency networks
connected to the Internet. Each department or agency head is responsible for the security
of the department's or agency's data within the guidelines of established enterprise policy.
Unless otherwise expressly provided by law, at least 3.5 percent of each department's or
agency's expenditures in a fiscal year for information and telecommunications technology
systems and services must be directed to the maintenance and enhancement of cyber security.

EFFECTIVE DATE.

This section is effective July 1, 2018, and applies to expenditures
in fiscal years beginning on or after that date.

ARTICLE 5

ENERGY POLICY

Section 1.

Minnesota Statutes 2017 Supplement, section 116C.779, subdivision 1, is
amended to read:


Subdivision 1.

Renewable development account.

(a) The renewable development
account is established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account shall be credited to the account. Earnings, such
as interest, dividends, and any other earnings arising from assets of the account, shall be
credited to the account. Funds remaining in the account at the end of a fiscal year are not
canceled to the general fund but remain in the account until expended. The account shall
be administered by the commissioner of management and budget as provided under this
section.

(b) On July 1, 2017, the public utility that owns the Prairie Island nuclear generating
plant must transfer all funds in the renewable development account previously established
under this subdivision and managed by the public utility to the renewable development
account established in paragraph (a). Funds awarded to grantees in previous grant cycles
that have not yet been expended and unencumbered funds required to be paid in calendar
year 2017 under paragraphs (e) and (f) and (g), and sections 116C.7792 and 216C.41, are
not subject to transfer under this paragraph.

(c) Except as provided in subdivision 1a, Beginning January 15, 2018 2019, and
continuing each January 15 thereafter, the public utility that owns the Prairie Island and
Monticello
nuclear generating plant plants must transfer to the renewable development
account $500,000 each year for each dry cask containing spent fuel that is located at the
Prairie Island power plant for
the following amounts each year the either plant is in operation,
and $7,500,000 each year the plant is not in operation
: (1) $23,000,000 in 2019; (2)
$28,000,000 in 2020; (3) $28,000,000 in 2021; and (4) $20,000,000 beginning in 2022 and
each year thereafter.
If ordered by the commission pursuant to paragraph (i). (h), the public
utility must transfer $7,500,000 each year the Prairie Island plant is not in operation and
$5,250,000 each year the Monticello plant is not in operation.
The fund transfer must be
made if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility
at Prairie Island or Monticello for any part of a year.

(d) Except as provided in subdivision 1a, beginning January 15, 2018, and continuing
each January 15 thereafter, the public utility that owns the Monticello nuclear generating
plant must transfer to the renewable development account $350,000 each year for each dry
cask containing spent fuel that is located at the Monticello nuclear power plant for each
year the plant is in operation, and $5,250,000 each year the plant is not in operation if ordered
by the commission pursuant to paragraph (i). The fund transfer must be made if nuclear
waste is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.

(e) (d) Each year, the public utility shall withhold from the funds transferred to the
renewable development account under paragraphs paragraph (c) and (d) the amount necessary
to pay its obligations for that calendar year under paragraphs (e), (f) and (g), (j), and (n),
and sections 116C.7792 and 216C.41, for that calendar year.

(f) (e) If the commission approves a new or amended power purchase agreement, the
termination of a power purchase agreement, or the purchase and closure of a facility under
section 216B.2424, subdivision 9, with an entity that uses poultry litter to generate electricity,
the public utility subject to this section shall enter into a contract with the city in which the
poultry litter plant is located to provide grants to the city for the purposes of economic
development on the following schedule: $4,000,000 in fiscal year 2018; $6,500,000 each
fiscal year in 2019 and 2020; and $3,000,000 in fiscal year 2021. The grants shall be paid
by the public utility from funds withheld from the transfer to the renewable development
account, as provided in paragraphs (b) and (e) (d).

(g) (f) If the commission approves a new or amended power purchase agreement, or the
termination of a power purchase agreement under section 216B.2424, subdivision 9, with
an entity owned or controlled, directly or indirectly, by two municipal utilities located north
of Constitutional Route No. 8, that was previously used to meet the biomass mandate in
section 216B.2424, the public utility that owns a nuclear generating plant shall enter into a
grant contract with such entity to provide $6,800,000 per year for five years, commencing
30 days after the commission approves the new or amended power purchase agreement, or
the termination of the power purchase agreement, and on each June 1 thereafter through
2021, to assist the transition required by the new, amended, or terminated power purchase
agreement. The grant shall be paid by the public utility from funds withheld from the transfer
to the renewable development account as provided in paragraphs (b) and (e) (d).

(h) (g) The collective amount paid under the grant contracts awarded under paragraphs
(e) and (f) and (g) is limited to the amount deposited into the renewable development account,
and its predecessor, the renewable development account, established under this section, that
was not required to be deposited into the account under Laws 1994, chapter 641, article 1,
section 10.

(i) (h) After discontinuation of operation of the Prairie Island nuclear plant or the
Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
discontinued facility, the commission shall require the public utility to pay $7,500,000 for
the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello
facility for any year in which the commission finds, by the preponderance of the evidence,
that the public utility did not make a good faith effort to remove the spent nuclear fuel stored
at the facility to a permanent or interim storage site out of the state. This determination shall
be made at least every two years.

(i) The public utility must annually file with the commission a petition to recover through
a rider mechanism all funds it is required to transfer or withhold under paragraphs (c) to (f)
for the next year. The commission must approve a reasonable cost recovery schedule for
all funds under this paragraph.

(j) On or before January 15 of each year, the public utility must file a petition with the
commission identifying the amounts withheld by the public utility the prior year under
paragraph (d) and the amount actually paid the prior year for obligations identified in
paragraph (d). If the amount actually paid is less than the amount withheld, the public utility
must deduct the surplus from the amount withheld for the current year under paragraph (d).
If the amount actually paid is more than the amount withheld, the public utility must add
the deficiency amount to the amount withheld for the current year under paragraph (d). Any
surplus remaining in the account after all programs identified in paragraph (d) are terminated
must be returned to the public utility's customers.

(j) (k) Funds in the account may be expended only for any of the following purposes:

(1) to stimulate research and development of renewable electric energy technologies;

(2) to encourage grid modernization, including, but not limited to, projects that implement
electricity storage, load control, and smart meter technology; and

(3) to stimulate other innovative energy projects that reduce demand and increase system
efficiency and flexibility.

Expenditures from the fund must benefit Minnesota ratepayers receiving electric service
from the utility that owns a nuclear-powered electric generating plant in this state or the
Prairie Island Indian community or its members.

The utility that owns a nuclear generating plant is eligible to apply for grants under this
subdivision.

(k) (l) For the purposes of paragraph (j) (k), the following terms have the meanings
given:

(1) "renewable" has the meaning given in section 216B.2422, subdivision 1, paragraph
(c), clauses (1), (2), (4), and (5); and

(2) "grid modernization" means:

(i) enhancing the reliability of the electrical grid;

(ii) improving the security of the electrical grid against cyberthreats and physical threats;
and

(iii) increasing energy conservation opportunities by facilitating communication between
the utility and its customers through the use of two-way meters, control technologies, energy
storage and microgrids, technologies to enable demand response, and other innovative
technologies.

(l) (m) A renewable development account advisory group that includes, among others,
representatives of the public utility and its ratepayers, and includes at least one representative
of the Prairie Island Indian community appointed by that community's tribal council, shall
develop recommendations on account expenditures. Members of the advisory group must
be chosen by the public utility.
The advisory group must design a request for proposal and
evaluate projects submitted in response to a request for proposals. The advisory group must
utilize an independent third-party expert to evaluate proposals submitted in response to a
request for proposal, including all proposals made by the public utility. A request for proposal
for research and development under paragraph (j) (k), clause (1), may be limited to or include
a request to higher education institutions located in Minnesota for multiple projects authorized
under paragraph (j) (k), clause (1). The request for multiple projects may include a provision
that exempts the projects from the third-party expert review and instead provides for project
evaluation and selection by a merit peer review grant system. In the process of determining
request for proposal scope and subject and in evaluating responses to request for proposals,
the advisory group must strongly consider, where reasonable, potential benefit to Minnesota
citizens and businesses and the utility's ratepayers.

(n) The cost of acquiring the services of the independent third-party expert described in
paragraph (m) and any other reasonable costs incurred to administer the advisory group and
its actions required by this section must be paid from funds withheld by the public utility
under paragraph (d). The total amount withheld under this paragraph must not exceed
$125,000 each year.

(m) (o) The advisory group shall submit funding recommendations to the public utility,
which has full and sole authority to determine which expenditures shall be submitted by
the advisory group to the legislature commission. The commission may approve proposed
expenditures, may disapprove proposed expenditures that it finds not to be in compliance
with this subdivision or otherwise not in the public interest, and may, if agreed to by the
public utility, modify proposed expenditures. The commission shall, by order, submit its
funding recommendations to the legislature as provided under paragraph (n) (p).

(n) (p) The commission shall present its recommended appropriations from the account
to the senate and house of representatives committees with jurisdiction over energy policy
and finance annually by February 15. Expenditures from the account must be appropriated
by law. In enacting appropriations from the account, the legislature:

(1) may approve or disapprove, but may not modify, the amount of an appropriation for
a project recommended by the commission; and

(2) may not appropriate money for a project the commission has not recommended
funding.

(o) (q) A request for proposal for renewable energy generation projects must, when
feasible and reasonable, give preference to projects that are most cost-effective for a particular
energy source.

(p) (r) The advisory group must annually, by February 15, report to the chairs and ranking
minority members of the legislative committees with jurisdiction over energy policy on
projects funded by the account under paragraph (k) for the prior year and all previous years.
The report must, to the extent possible and reasonable, itemize the actual and projected
financial benefit to the public utility's ratepayers of each project.

(s) By June 1, 2018, and each June 1 thereafter, the public utility that owns the Prairie
Island Nuclear Electric Generating Plant must submit to the commissioner of management
and budget an estimate of the amount the public utility will deposit into the account the
following January 15, based on the provisions of paragraphs (c) to (h) and any appropriations
made from the fund during the most recent legislative session.

(q) (t) By February 1 June 30, 2018, and each February 1 June 30 thereafter, the
commissioner of management and budget shall must estimate the balance in the account as
of the following January 31, taking into account the balance in the account as of June 30
and the information provided under paragraph (r). By July 15, 2018, and each July 15
thereafter, the commissioner of management and budget must
submit a written report
regarding the availability of funds in and obligations of the account to the chairs and ranking
minority members of the senate and house committees with jurisdiction over energy policy
and finance, the public utility, and the advisory group. If more than $15,000,000 is estimated
to be available in the account as of January 31, the advisory group must, by January 31 the
next year, issue a request for proposals to initiate a grant cycle for the purposes of paragraph
(k).

(r) (u) A project receiving funds from the account must produce a written final report
that includes sufficient detail for technical readers and a clearly written summary for
nontechnical readers. The report must include an evaluation of the project's financial,
environmental, and other benefits to the state and the public utility's ratepayers.

(s) (v) Final reports, any mid-project status reports, and renewable development account
financial reports must be posted online on a public Web site designated by the commissioner
of commerce.

(t) (w) All final reports must acknowledge that the project was made possible in whole
or part by the Minnesota renewable development account, noting that the account is financed
by the public utility's ratepayers.

(u) (x) Of the amount in the renewable development account, priority must be given to
making the payments required under section 216C.417.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 116C.7792, is amended to read:


116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.

(a) The utility subject to section 116C.779 shall must operate a program to provide solar
energy production incentives for solar energy systems of no more than a total aggregate
nameplate capacity of 20 40 kilowatts direct current per premises. The owner of a solar
energy system installed before June 1, 2018, is eligible to receive a production incentive
under this section for any additional solar energy systems constructed at the same customer
location, provided the aggregate capacity of all systems at the customer location does not
exceed 40 kilowatts
.

(b) The program shall must be operated for eight consecutive calendar years commencing
in 2014. $5,000,000 shall must be allocated in each of the first four years, $15,000,000 in
the fifth year, $10,000,000 in each of the sixth and seventh years, and $5,000,000 in the
eighth year from funds withheld from transfer to the renewable development account under
section 116C.779, subdivision 1, paragraphs (b) and (e) paragraph (d), and placed in a
separate account for the purpose of the solar production incentive program operated by the
utility. Money in the separate account must not be used for any other program or purpose.
Any unspent amount allocated in the fifth year is available until December 31 of the sixth
year. Any unspent amount remaining at the end of an allocation year must be transferred
to the renewable development account or returned to customers
.

(c) The solar energy system must be sized to less than 120 percent of the customer's
on-site annual energy consumption when combined with other distributed generation
resources and subscriptions provided under section 216B.1641 associated with the premise
.
The production incentive must be paid for ten years commencing with the commissioning
of the system.

(d) The utility must file a plan to operate the program with the commissioner of
commerce. The utility may not operate the program until it is approved by the commissioner.
A change to the program to include projects up to a nameplate capacity of 40 kilowatts does
not require the utility to file an amended plan with the commissioner. Any plan approved
by the commissioner of commerce must not provide an increased incentive over prior years
unless the commissioner demonstrates that changes in the market for solar energy facilities
require an increase.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 3.

[116C.7793] PRAIRIE ISLAND NET ZERO PROJECT.

Subdivision 1.

Program established.

The Prairie Island Net Zero Project is established
with the goal of the Prairie Island Indian Community developing an energy system that
results in net zero emissions.

Subd. 2.

Grant.

The commissioner of employment and economic development must
enter into a grant contract with the Prairie Island Indian Community to provide the amounts
appropriated each year under subdivision 4 to stimulate research, development, and
implementation of renewable energy projects benefiting the Prairie Island Indian Community
or its members. Any examination conducted by the commissioner of employment and
economic development to determine the sufficiency of the financial stability and capacity
of the Prairie Island Indian Community to carry out the purposes of this grant is limited to
the Community Services Department of the Prairie Island Indian Community.

Subd. 3.

Plan; report.

The Prairie Island Indian Community must file a plan with the
commissioner of employment and economic development no later than July 1, 2019,
describing the Prairie Island Net Zero Project elements and implementation strategy. The
Prairie Island Indian Community must file a report on July 1, 2020, and each July 1 thereafter
through 2025, describing the progress made in implementing the project and the uses of
expended funds.

Subd. 4.

Appropriation.

Notwithstanding section 116C.779, subdivision 1, paragraph
(k), $3,000,000 in fiscal year 2019, $7,000,000 in fiscal year 2020, $4,500,000 in fiscal
year 2021, $9,000,000 in fiscal year 2022, $8,000,000 in fiscal year 2023, and $8,500,000
in fiscal year 2024 are appropriated from the renewable development account under section
116C.779, subdivision 1, to the commissioner of employment and economic development
for a grant to the Prairie Island Indian Community for the purposes of this section. Any
funds remaining at the end of a fiscal year do not cancel to the renewable development
account but remain available until spent. This subdivision expires the day after the last
transfer of funds to the commissioner.

Subd. 5.

Transfer.

(a) Any funds appropriated under section 216C.417, subdivision 2,
that are unexpended at the end of a fiscal year are transferred to the commissioner of
employment and economic development for a grant to the Prairie Island Indian Community
for the purposes of this section.

(b) Beginning in fiscal year 2019 and continuing each year thereafter, on the day
following the public release of the February state budget forecast the commissioner of
management and budget must compare the obligation forecasted in each fiscal year for the
Made in Minnesota solar production incentive program under section 216C.417 with the
obligations forecasted under that program in the previous year's February state budget
forecast. If the amount in the most recent forecast in any one fiscal year is less than the
amount of the obligation forecasted for the same fiscal year in the previous February forecast,
the commissioner of management and budget must transfer the difference from the renewable
development account established in section 116C.779 to the commissioner of employment
and economic development for a grant to the Prairie Island Indian Community for the Prairie
Island Net Zero Project in section 116C.7793.

(c) The total amount appropriated and transferred from the renewable development
account under this subdivision and subdivision 4 must not exceed $45,000,000.

(d) This subdivision expires the day following the day that the total amount appropriated
and transferred from the renewable development account under this subdivision and
subdivision 4 equals $45,000,000.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 4.

Minnesota Statutes 2016, section 216B.16, is amended by adding a subdivision to
read:


Subd. 7e.

Energy storage system pilot projects.

(a) A public utility may petition the
commission under this section to recover costs associated with the implementation of an
energy storage system pilot project. As part of the petition, the public utility must submit a
report to the commission containing, at a minimum, the following information regarding
the proposed energy storage system pilot project:

(1) the storage technology utilized;

(2) the energy storage capacity and the duration of output at that capacity;

(3) the proposed location;

(4) the purchase and installation costs;

(5) how the project will interact with existing distributed generation resources on the
utility's grid; and

(6) the goals the project proposes to achieve, which may include controlling frequency
or voltage, mitigating transmission congestion, providing emergency power supplies during
outages, reducing curtailment of existing renewable energy generators, and reducing peak
power costs.

(b) A utility may petition the commission to approve a rate schedule that provides for
the automatic adjustment of charges to recover prudently incurred investments, expenses,
or costs associated with energy storage system pilot projects approved by the commission
under this subdivision. A petition filed under this subdivision must include the elements
listed in section 216B.1645, subdivision 2a, paragraph (b), clauses (1) to (4), and must
describe the benefits of the pilot project.

(c) The commission may approve, or approve as modified, a rate schedule filed under
this subdivision if it determines the proposed energy storage system pilot project is in the
public interest. A rate schedule filed under this subdivision may include the elements listed
in section 216B.1645, subdivision 2a, paragraph (a), clauses (1) to (5).

(d) The commission must make its determination under paragraph (c) within 90 days of
the filing under paragraph (a).

(e) Nothing in this subdivision prohibits or deters the deployment of energy storage
systems.

(f) For the purposes of this subdivision:

(1) "energy storage system" has the meaning given in section 216B.2422, subdivision
1; and

(2) "pilot project" means a project that is owned, operated, and controlled by a public
utility to optimize safe and reliable system operations and is deployed at a limited number
of locations in order to assess the technical and economic effectiveness of its operations.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 5.

Minnesota Statutes 2016, section 216B.16, is amended by adding a subdivision to
read:


Subd. 13a.

Pension and other benefits rate base.

The commission must allow a public
utility to include in the rate base and recover from ratepayers combined pension and other
postemployment benefit costs. Postemployment benefit costs include retiree medical,
determined as the difference between accumulated contributions and accumulated expenses,
offset by related accumulated deferred income tax. A public utility is authorized to track
for future recovery any unrecovered return of pension and other postemployment rate base
costs and investments at the return on investment level established in the public utility's last
general rate case.

Sec. 6.

Minnesota Statutes 2016, section 216B.1641, is amended to read:


216B.1641 COMMUNITY SOLAR GARDEN.

(a) The public utility subject to section 116C.779 shall file by September 30, 2013, a
plan with the commission to operate a community solar garden program which shall begin
operations within 90 days after commission approval of the plan. Other public utilities may
file an application at their election. The community solar garden program must be designed
to offset the energy use of not less than five subscribers in each community solar garden
facility of which no single subscriber has more than a 40 percent interest. The owner of the
community solar garden may be a public utility or any other entity or organization that
contracts to sell the output from the community solar garden to the utility under section
216B.164. There shall be no limitation on the number or cumulative generating capacity of
community solar garden facilities other than the limitations imposed under section 216B.164,
subdivision 4c
, or other limitations provided in law or regulations.

(b) A solar garden is a facility that generates electricity by means of a ground-mounted
or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for the
electricity generated in proportion to the size of their subscription. The solar garden must
have a nameplate capacity of no more than one megawatt. Each subscription shall be sized
to represent at least 200 watts of the community solar garden's generating capacity and to
supply, when combined with other distributed generation resources serving the premises,
no more than 120 percent of the average annual consumption of electricity by each subscriber
at the premises to which the subscription is attributed.

(c) The solar generation facility must be located in the service territory of the public
utility filing the plan. Subscribers must be retail customers of the public utility located in
the same county or a county contiguous to where the facility is located.

(d) The public utility must purchase from the community solar garden all energy generated
by the solar garden. The purchase shall be at the rate calculated under section 216B.164,
subdivision 10
, or, until that rate for the public utility has been approved by the commission,
the applicable retail rate. A solar garden is eligible for any incentive programs offered under
either section 116C.7792 or section 216C.415. A subscriber's portion of the purchase shall
be provided by a credit on the subscriber's bill.

(e) The commission may approve, disapprove, or modify a community solar garden
program. Any plan approved by the commission must:

(1) reasonably allow for the creation, financing, and accessibility of community solar
gardens;

(2) establish uniform standards, fees, and processes for the interconnection of community
solar garden facilities that allow the utility to recover reasonable interconnection costs for
each community solar garden;

(3) not apply different requirements to utility and nonutility community solar garden
facilities;

(4) be consistent with the public interest;

(5) identify the information that must be provided to potential subscribers to ensure fair
disclosure of future costs and benefits of subscriptions;

(6) include a program implementation schedule;

(7) identify all proposed rules, fees, and charges; and

(8) identify the means by which the program will be promoted.

(f) Notwithstanding any other law, neither the manager of nor the subscribers to a
community solar garden facility shall be considered a utility solely as a result of their
participation in the community solar garden facility.

(g) Within 180 days of commission approval of a plan under this section, a utility shall
begin crediting subscriber accounts for each community solar garden facility in its service
territory, and shall file with the commissioner of commerce a description of its crediting
system.

(h) For the purposes of this section, the following terms have the meanings given:

(1) "subscriber" means a retail customer of a utility who owns one or more subscriptions
of a community solar garden facility interconnected with that utility; and

(2) "subscription" means a contract between a subscriber and the owner of a solar garden.

Sec. 7.

Minnesota Statutes 2017 Supplement, section 216B.1691, subdivision 2f, is amended
to read:


Subd. 2f.

Solar energy standard.

(a) In addition to the requirements of subdivisions 2a
and 2b, each public utility shall generate or procure sufficient electricity generated by solar
energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at
least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is
generated by solar energy.

(b) For a public utility with more than 200,000 retail electric customers, at least ten
percent of the 1.5 percent goal must be met by solar energy generated by or procured from
solar photovoltaic devices with a nameplate capacity of 20 40 kilowatts or less.

(c) A public utility with between 50,000 and 200,000 retail electric customers:

(1) must meet at least ten percent of the 1.5 percent goal with solar energy generated by
or procured from solar photovoltaic devices with a nameplate capacity of 40 kilowatts or
less; and

(2) may apply toward the ten percent goal in clause (1) individual customer subscriptions
of 40 kilowatts or less to a community solar garden program operated by the public utility
that has been approved by the commission.

(d) The solar energy standard established in this subdivision is subject to all the provisions
of this section governing a utility's standard obligation under subdivision 2a.

(e) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the retail
electric sales in Minnesota be generated by solar energy.

(f) For the purposes of calculating the total retail electric sales of a public utility under
this subdivision, there shall be excluded retail electric sales to customers that are:

(1) an iron mining extraction and processing facility, including a scram mining facility
as defined in Minnesota Rules, part 6130.0100, subpart 16; or

(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board
manufacturer.

Those customers may not have included in the rates charged to them by the public utility
any costs of satisfying the solar standard specified by this subdivision.

(g) A public utility may not use energy used to satisfy the solar energy standard under
this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may
not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the
solar standard under this subdivision.

(h) Notwithstanding any law to the contrary, a solar renewable energy credit associated
with a solar photovoltaic device installed and generating electricity in Minnesota after
August 1, 2013, but before 2020 may be used to meet the solar energy standard established
under this subdivision.

(i) Beginning July 1, 2014, and each July 1 through 2020, each public utility shall file
a report with the commission reporting its progress in achieving the solar energy standard
established under this subdivision.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 8.

Minnesota Statutes 2017 Supplement, section 216B.241, subdivision 1d, is amended
to read:


Subd. 1d.

Technical assistance.

(a) The commissioner shall evaluate energy conservation
improvement programs on the basis of cost-effectiveness and the reliability of the
technologies employed. The commissioner shall, by order, establish, maintain, and update
energy-savings assumptions that must be used when filing energy conservation improvement
programs. The commissioner shall establish an inventory of the most effective energy
conservation programs, techniques, and technologies, and encourage all Minnesota utilities
to implement them, where appropriate, in their service territories. The commissioner shall
describe these programs in sufficient detail to provide a utility reasonable guidance
concerning implementation. The commissioner shall prioritize the opportunities in order of
potential energy savings and in order of cost-effectiveness. The commissioner may contract
with a third party to carry out any of the commissioner's duties under this subdivision, and
to obtain technical assistance to evaluate the effectiveness of any conservation improvement
program. The commissioner may assess up to $850,000 annually for the purposes of this
subdivision. The assessments must be deposited in the state treasury and credited to the
energy and conservation account created under subdivision 2a. An assessment made under
this subdivision is not subject to the cap on assessments provided by section 216B.62, or
any other law.

(b) Of the assessment authorized under paragraph (a), the commissioner may expend
up to $400,000 annually $800,000 for the purpose of developing, operating, maintaining,
and providing technical support for a uniform electronic data reporting and tracking system
available to all utilities subject to this section, in order to enable accurate measurement of
the cost and energy savings of the energy conservation improvements required by this
section. This paragraph expires June 30, 2018 2019.

(c) The commissioner must establish a utility stakeholder group to direct development
and maintenance of the tracking system available to all utilities. The utility stakeholder
group will direct 50 percent of the biennium expenditures. The utility stakeholder group
must include but is not limited to stakeholders representative of the Minnesota Rural Electric
Association, the Minnesota Municipal Utility Association, investor-owned utilities, municipal
power agencies, energy conservation organizations, and businesses that work in energy
efficiency. One of the stakeholder members must serve as chair. The utility stakeholder
group must develop and submit its work plan to the commissioner. The utility stakeholder
group must study alternative tracking system options, which must be submitted to the
commissioner with the work plan by January 15, 2020. The utility stakeholder group must
meet regularly at the call of the chair. Meetings of the utility stakeholder group are subject
to chapter 13D.

Sec. 9.

Minnesota Statutes 2016, section 216B.2422, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more
of electric power and serving, either directly or indirectly, the needs of 10,000 retail
customers in Minnesota. Utility does not include federal power agencies.

(c) "Renewable energy" means electricity generated through use of any of the following
resources:

(1) wind;

(2) solar;

(3) geothermal;

(4) hydro;

(5) trees or other vegetation;

(6) landfill gas; or

(7) predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge.

(d) "Resource plan" means a set of resource options that a utility could use to meet the
service needs of its customers over a forecast period, including an explanation of the supply
and demand circumstances under which, and the extent to which, each resource option
would be used to meet those service needs. These resource options include using,
refurbishing, and constructing utility plant and equipment, buying power generated by other
entities, controlling customer loads, and implementing customer energy conservation.

(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating
resource of 30 megawatts or greater.

(f) "Energy storage system" means a commercially available technology that:

(1) uses mechanical, chemical, or thermal processes to:

(i) store energy, including energy generated from renewable resources and energy that
would otherwise be wasted, and deliver the stored energy for use at a later time; or

(ii) store thermal energy for direct use for heating or cooling at a later time in a manner
that reduces the demand for electricity at the later time;

(2) is composed of stationary equipment;

(3) if being used for electric grid benefits, is operationally visible and capable of being
controlled by the distribution or transmission entity managing it, to enable and optimize the
safe and reliable operation of the electric system; and

(4) achieves any of the following:

(i) reduces peak or electrical demand;

(ii) defers the need or substitutes for an investment in electric generation, transmission,
or distribution assets;

(iii) improves the reliable operation of the electrical transmission or distribution systems,
while ensuring transmission or distribution needs are not created; or

(iv) lowers customer costs by storing energy when the cost of generating or purchasing
it is low and delivering it to customers when those costs are high.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 10.

Minnesota Statutes 2016, section 216B.2422, is amended by adding a subdivision
to read:


Subd. 7.

Energy storage systems assessment.

(a) Each public utility required to file a
resource plan under subdivision 2 must include in the filing an assessment of energy storage
systems that analyzes how the deployment of energy storage systems contributes to:

(1) meeting identified generation and capacity needs; and

(2) evaluating ancillary services.

(b) The assessment must employ appropriate modeling methods to enable the analysis
required in paragraph (a).

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 11.

Minnesota Statutes 2017 Supplement, section 216B.62, subdivision 3b, is amended
to read:


Subd. 3b.

Assessment for department regional and national duties.

In addition to
other assessments in subdivision 3, the department may assess up to $500,000 per fiscal
year for performing its duties under section 216A.07, subdivision 3a. The amount in this
subdivision shall be assessed to energy utilities in proportion to their respective gross
operating revenues from retail sales of gas or electric service within the state during the last
calendar year and shall be deposited into an account in the special revenue fund and is
appropriated to the commissioner of commerce for the purposes of section 216A.07,
subdivision 3a
. An assessment made under this subdivision is not subject to the cap on
assessments provided in subdivision 3 or any other law. For the purpose of this subdivision,
an "energy utility" means public utilities, generation and transmission cooperative electric
associations, and municipal power agencies providing natural gas or electric service in the
state. This subdivision expires June 30, 2018 2019.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 12.

Minnesota Statutes 2017 Supplement, section 216C.417, subdivision 2, is amended
to read:


Subd. 2.

Appropriation.

(a) Unspent money remaining in the account established under
Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the
renewable development account in the special revenue fund established under Minnesota
Statutes, section 116C.779, subdivision 1.

(b) There is annually appropriated from the renewable development account in the special
revenue fund established in Minnesota Statutes, section 116C.779, to the commissioner of
commerce money sufficient to make the incentive payments required under Minnesota
Statutes 2016, section 216C.415. Any funds appropriated under this paragraph that are
unexpended at the end of a fiscal year must be transferred to the commissioner of employment
and economic development as provided under section 116C.7793, subdivision 5. Any funds
remaining after the transfer under this paragraph
cancel to the renewable development
account.

(c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of
this appropriation may be used for administrative costs.

Sec. 13.

Minnesota Statutes 2016, section 216D.04, is amended by adding a subdivision
to read:


Subd. 5.

Contact information required.

(a) An operator must furnish accurate contact
information necessary for underground facility damage prevention and damage response
requested by the notification center.

(b) The contact information for each affected operator must be available to the excavator
that provided notice under subdivision 1.

Sec. 14.

Laws 2017, chapter 94, article 10, section 28, is amended to read:


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

(a) No rebate may be paid under Minnesota Statutes 2016, section 216C.416, to an owner
of a solar thermal system whose application was approved by the commissioner of commerce
after the effective date of this act.

(b) Unspent money remaining in the account established under Minnesota Statutes 2014,
section 216C.416, as of July 2, 2017, must be transferred to the C-LEAF renewable
development
account established under Minnesota Statutes 2016, section 116C.779,
subdivision 1
.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 15.

Laws 2017, chapter 94, article 10, section 29, is amended to read:


Sec. 29. RENEWABLE DEVELOPMENT ACCOUNT; TRANSFER OF
UNEXPENDED GRANT FUNDS.

(a) No later than 30 days after the effective date of this section, the utility subject to
Minnesota Statutes, section 116C.779, subdivision 1, must notify in writing each person
who received a grant funded from the renewable development account previously established
under that subdivision:

(1) after January 1, 2012; and

(2) before January 1, 2012, if the funded project remains incomplete as of the effective
date of this section.

The notice must contain the provisions of this section and instructions directing grant
recipients how unexpended funds can be transferred to the clean energy advancement fund
renewable development
account.

(b) A recipient of a grant from the renewable development account previously established
under Minnesota Statutes, section 116C.779, subdivision 1, must, no later than 30 days after
receiving the notice required under paragraph (a), transfer any grant funds that remain
unexpended as of the effective date of this section to the clean energy advancement fund
renewable development
account if, by that effective date, all of the following conditions
are met:

(1) the grant was awarded more than five years before the effective date of this section;

(2) the grant recipient has failed to obtain control of the site on which the project is to
be constructed;

(3) the grant recipient has failed to secure all necessary permits or approvals from any
unit of government with respect to the project; and

(4) construction of the project has not begun.

(c) A recipient of a grant from the renewable development account previously established
under Minnesota Statutes, section 116C.779, subdivision 1, must transfer any grant funds
that remain unexpended five years after the grant funds are received by the grant recipient
if, by that date, the conditions in paragraph (b), clauses (2) to (4), have been met. The grant
recipient must transfer the unexpended funds no later than 30 days after the fifth anniversary
of the receipt of the grant funds.

(d) A person who transfers funds to the clean energy advancement fund renewable
development
account under this section is eligible to apply for funding from the clean energy
advancement fund
renewable development account.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 16.

BIOMASS BUSINESS COMPENSATION.

Subdivision 1.

Office of Administrative Hearings; claims process.

The chief
administrative law judge of the Office of Administrative Hearings must name an
administrative law judge to administer a claims award process to compensate businesses
negatively affected by the sale and closure of the biomass plant identified under Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (e). The administrative law judge may
establish a process, including the development of application forms, to consider claims for
affected businesses and issue awards to eligible businesses. An application form developed
for the process must, at a minimum, require the name of the business, the business address
and telephone number, and the name of a contact person.

Subd. 2.

Eligibility.

To be eligible for compensation, an affected business must verify
that as of May 1, 2017, it was operating under the terms of a valid contract or provide other
documentation demonstrating an ongoing business relationship of preparing, supplying, or
transporting products, fuel, or by-products to or from either the company operating the
biomass plant identified under Minnesota Statutes, section 116C.779, subdivision 1,
paragraph (e), or a fertilizer plant integrated with the biomass plant identified under
Minnesota Statutes, section 116C.779, subdivision 1, paragraph (e).

Subd. 3.

Calculating award.

(a) An eligible business may make a claim for compensation
based on decreased net revenue and the loss of value of investments in real or personal
property essential to business operations with the biomass plant identified under Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (e). All such losses must be attributable
to the termination of the contract under Minnesota Statutes, section 216B.2424, subdivision
9.

(b) When filing a claim of decreased net revenue, an eligible business must demonstrate
the extent of its decreased business activity by providing copies of any contracts or other
documentation under subdivision 2, including financial statements showing the eligible
business's financial performance over the past five years for supplying or managing material
for, or receiving material from, the biomass plant identified under Minnesota Statutes,
section 116C.779, subdivision 1, paragraph (e). The business must also present evidence
of any alternative business opportunities it has pursued or could pursue to mitigate the loss
of revenue from the termination of the contract, as the value of alternative opportunities
offsets compensation provided under this section.

(c) In filing a claim of loss of value of investments in real or personal property, an eligible
business must provide:

(1) evidence that the property was essential to fulfilling the contract with the biomass
plant identified under Minnesota Statutes, section 116C.779, subdivision 1, paragraph (e);

(2) evidence that the eligible business is unable to fully repurpose the property to another
productive use after the termination of the contract under Minnesota Statutes, section
216B.2424, subdivision 9; and

(3) documentation of the eligible business's investment in the property, minus any
economic depreciation.

An eligible business must also provide a valuation of the use, sales, salvage, or scrap value
of the property for which the loss is claimed, as the value of the property offsets compensation
provided under this section.

(d) A business seeking compensation under this section must report any payment received
from business interruption insurance policies, settlements, or other forms of compensation
related to the termination of the contract of the biomass plant identified under Minnesota
Statutes, section 116C.779, subdivision 1, paragraph (e). All payments identified in this
paragraph offset compensation provided under this section.

(e) A business seeking compensation under this section must provide any other
documentation it deems appropriate, or as required by the administrative law judge, to
support its claim, including a narrative of the facts of the business claim that gives rise to
the request for compensation.

(f) Regardless of actual losses, an award of compensation must not exceed the average
of the eligible business's annual net revenue generated from a contract or business relationship
with the biomass plant identified under Minnesota Statutes, section 116C.779, subdivision
1, paragraph (e), for the past five years, multiplied by two.

(g) Minnesota Statutes, section 13.591, applies to data submitted by a business requesting
compensation under this section.

Subd. 4.

Priority.

(a) The administrative law judge may give priority to claims by eligible
businesses that demonstrate a significant effort to:

(1) mitigate losses resulting from the closure of the biomass plant identified under
Minnesota Statutes, section 116C.779, subdivision 1, paragraph (e); or

(2) repurpose the business for another use through retasking and retooling.

(b) The administrative law judge must consider whether a business requests compensation
for a total business loss without mitigation efforts when determining awards under this
section.

Subd. 5.

Amount of claim.

Any claim is limited by and proportional to the amount
provided for compensation in the biomass business compensation fund established in section
17, and the number of claimants.

Subd. 6.

Deadlines.

The administrative law judge must make an application process for
compensation available by August 1, 2018. A business seeking to submit a request for
compensation under this section must file claims with the administrative law judge within
60 days following closure of the biomass plant. The administrative law judge must issue
award determination orders within 180 days after the deadline for filing claims.

Subd. 7.

Appeals.

Orders issued by the administrative law judge under this section are
final. An order denying compensation claimed under this section is subject to the contested
case review procedures under Minnesota Statutes, chapter 14.

Subd. 8.

Expiration.

This section expires June 30, 2021.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 17.

BIOMASS BUSINESS COMPENSATION ACCOUNT.

Subdivision 1.

Account established.

A biomass business compensation account is
established as a separate account in the special revenue fund in the state treasury.
Appropriations and transfers to the account must be credited to the account. Earnings, such
as interest, and any other earnings arising from the assets of the account are credited to the
account. Funds remaining in the account as of December 31, 2020, must be transferred to
the renewable development account established under Minnesota Statutes, section 116C.779.

Subd. 2.

Funding for the special account.

Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (k), on July 1, 2019, $40,000,000 must be transferred
from the renewable development account under Minnesota Statutes, section 116C.779, to
the biomass business compensation account established under subdivision 1. The transferred
funds are appropriated to pay eligible obligations under the biomass business compensation
program established under section 16.

Subd. 3.

Payment of expenses.

Beginning on July 1, 2019, the chief administrative law
judge must certify to the commissioner of management and budget the total costs incurred
to administer the biomass business compensation claims process. The commissioner of
management and budget must transfer an amount equal to the certified costs incurred for
biomass business compensation claim activities from the renewable development account
under Minnesota Statutes, section 116C.779, and deposit it to the administrative hearings
account under Minnesota Statutes, section 14.54. Transfers may occur quarterly, based on
quarterly cost and revenue reports, throughout the fiscal year, with final certification and
reconciliation after each fiscal year. The total amount transferred under this subdivision
must not exceed $200,000.

Subd. 4.

Expiration.

This section expires June 30, 2021.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 18. REPORT; COST-BENEFIT ANALYSIS OF ENERGY STORAGE
SYSTEMS.

(a) The commissioner of commerce must contract with an independent consultant selected
through a request for proposal process to produce a report analyzing the potential costs and
benefits of energy storage systems, as defined in Minnesota Statutes, section 216B.2422,
subdivision 1, in Minnesota. The study may also include scenarios examining energy storage
systems that are not capable of being controlled by a utility. The commissioner must engage
a broad group of Minnesota stakeholders, including electric utilities and others, to develop
and provide information for the report. The study must:

(1) identify and measure the different potential costs and savings produced by energy
storage system deployment, including but not limited to:

(i) generation, transmission, and distribution facilities asset deferral or substitution;

(ii) impacts on ancillary services costs;

(iii) impacts on transmission and distribution congestion;

(iv) impacts on peak power costs;

(v) impacts on emergency power supplies during outages;

(vi) impacts on curtailment of renewable energy generators; and

(vii) reduced greenhouse gas emissions;

(2) analyze and estimate the:

(i) costs and savings to customers that deploy energy storage systems;

(ii) impact on the utility's ability to integrate renewable resources;

(iii) impact on grid reliability and power quality; and

(iv) effect on retail electric rates over the useful life of a given energy storage system
compared to providing the same services using other facilities or resources;

(3) consider the findings of analysis conducted by the Midcontinent Independent System
Operator on energy storage capacity accreditation and participation in regional energy
markets, including updates of the analysis; and

(4) include case studies of existing energy storage applications currently providing the
benefits described in clauses (1) and (2).

(b) By May 1, 2019, the commissioner of commerce must submit the study to the chairs
and ranking minority members of the senate and house of representatives committees with
jurisdiction over energy policy and finance.

Sec. 19. REPEALER.

Minnesota Statutes 2016, section 216B.2423, is repealed.

EFFECTIVE DATE.

This section is effective June 1, 2018.

ARTICLE 6

JOBS AND ECONOMIC GROWTH

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the appropriations
in Laws 2017, chapter 94, and appropriated to the agencies and for the purposes specified
in this article. The appropriations are from the general fund, or another named fund, and
are available for the fiscal year indicated for each purpose. The figures "2018" and "2019"
used in this article mean that the addition to the appropriations listed under them are available
for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The first year" is
fiscal year 2018. "The second year" is fiscal year 2019.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

Subdivision 1.

Total Appropriation

$
-0-
$
16,550,000
Appropriations by Fund
2018
2019
General
-0-
16,500,000
Workforce
Development
-0-
50,000

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

Subd. 2.

Business and Community Development

-0-
1,500,000

$1,500,000 in fiscal year 2019 is for a grant
to the city of Cambridge for costs associated
with relocating and constructing a propane
distribution facility and for costs associated
with demolition, cleanup and restoration of
the existing propane facility. Eligible costs
include: land acquisition, site preparation and
improvements, moving expenses, building
construction, rail construction, rail switch
construction, demolition, environmental
remediation, engineering, and other necessary
site improvements. This is a onetime
appropriation and is available until the project
is completed or abandoned subject to
Minnesota Statutes, section 16A.642.

Subd. 3.

Broadband Development

-0-
15,000,000

$15,000,000 in fiscal year 2019 is for transfer
to the border-to-border broadband fund
account in the special revenue fund established
under Minnesota Statutes, section 116J.396
and may be used for purposes provided in
Minnesota Statutes, section 116J.395. This
appropriation is onetime and is available until
spent. Of this appropriation, up to three
percent is for costs incurred by the
commissioner to administer Minnesota
Statutes, section 116J.395. Administrative
costs may include the following activities
related to measuring progress toward the
state's broadband goals established in
Minnesota Statutes, section 237.012:

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

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

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

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

Subd. 4.

Workforce Development

-0-
50,000

$50,000 in fiscal year 2019 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 is a onetime
appropriation and is in addition to other funds
previously appropriated to the board.

Sec. 3. DEPARTMENT OF COMMERCE

Subdivision 1.

Total Appropriation

$
-0-
$
150,000
Appropriations by Fund
2018
2019
Special Revenue
-0-
150,000

Subd. 2.

Energy Resources

$
-0-
$
150,000
Appropriations by Fund
2018
2019
Special Revenue
-0-
150,000

$150,000 the second year is from the
renewable development account in the special
revenue fund established in Minnesota
Statutes, section 116C.779, subdivision 1, to
conduct an energy storage systems cost-benefit
analysis. This is a onetime appropriation.

Sec. 4.

Laws 2017, chapter 94, article 1, section 2, subdivision 2, as amended by Laws
2017, First Special Session chapter 7, section 2, is amended to read:


Subd. 2.

Business and Community Development

$
46,074,000
$
40,935,000
39,435,000
Appropriations by Fund
General
$43,363,000
$38,424,000
$36,924,000
Remediation
$700,000
$700,000
Workforce
Development
$1,861,000
$1,811,000
Special Revenue
$150,000
-0-

(a) $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.

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

(1) training, lending, and business services;

(2) model outreach and training in greater
Minnesota; and

(3) development of new business incubators.

This is a onetime appropriation.

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

(d) $125,000 each year 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.

(e)(1) $12,500,000 each year is for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administration and monitoring of
the program. This appropriation is available
until spent.

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

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

(4) Of the amount appropriated in fiscal year
2019, $1,000,000 is for a grant to the city of
Minnetonka for a forgivable loan to a
high-risk, high-return jobs retention and
creation initiative to be conducted by a local
business that produces lactic acid/lactate, to
help grow and expand the bioeconomy in
Minnesota. The grant under this section is not
subject to the limitations under Minnesota
Statutes, section 116J.8731, subdivision 5, or
the performance goals, contractual obligations,
and other requirements under Minnesota
Statutes, sections 116J.8731, subdivision 7;
116J.993; and 116J.994. Grant funds are
available until June 30, 2021.

(5) Of the amount appropriated in fiscal year
2019, $1,000,000 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
$15,000,000 on expansion activities by
December 31, 2019, 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 195
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.

(f) $8,500,000 each year is in fiscal year 2018
and $7,000,000 in fiscal year 2019 are
for the
Minnesota job creation fund under Minnesota
Statutes, section 116J.8748. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administrative expenses. This
appropriation is available until expended. In
fiscal year 2020 and beyond, the base amount
is $8,000,000.

(g) $1,647,000 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. In fiscal year 2020 and beyond, the base
amount is $1,772,000.

(h) $12,000 each year is for a grant to the
Upper Minnesota Film Office.

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

(j) $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 June 30,
2021.

(k) $139,000 each year is for a grant to the
Rural Policy and Development Center under
Minnesota Statutes, section 116J.421.

(l)(1) $1,300,000 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. If the appropriation
for either year is insufficient, the appropriation
for the other year is available. In fiscal year
2020 and beyond, the base amount is
$1,787,000. Funds available under this
paragraph may be used for site preparation of
property owned and to be used by private
entities.

(2) Of the amounts appropriated, $1,600,000
in fiscal year 2018 is for a grant to the city of
Thief River Falls to support utility extensions,
roads, and other public improvements related
to the construction of a wholesale electronic
component distribution center at least 700,000
square feet in size and investing a minimum
of $200,000,000. Notwithstanding Minnesota
Statutes, section 116J.431, a local match is
not required. Grant funds are available from
July 1, 2017, to June 30, 2021.

(m) $876,000 the first year and $500,000 the
second year are 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. 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.

(n) $875,000 each year is for a grant to
Enterprise Minnesota, Inc. for the small
business growth acceleration program under
Minnesota Statutes, section 116O.115. This
is a onetime appropriation.

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

(p) $275,000 in fiscal year 2018 is from the
general fund to the commissioner of
employment and economic development for
a grant to Community and Economic
Development Associates (CEDA) for an
economic development study and analysis of
the effects of current and projected economic
growth in southeast Minnesota. CEDA shall
report on the findings and recommendations
of the study to the committees of the house of
representatives and senate with jurisdiction
over economic development and workforce
issues by February 15, 2019. All results and
information gathered from the study shall be
made available for use by cities in southeast
Minnesota by March 15, 2019. This
appropriation is available until June 30, 2020.

(q) $2,000,000 in fiscal year 2018 is for a
grant to Pillsbury United Communities for
construction and renovation of a building in
north Minneapolis for use as the "North
Market" grocery store and wellness center,
focused on offering healthy food, increasing
health care access, and providing job creation
and economic opportunities in one place for
children and families living in the area. To the
extent possible, Pillsbury United Communities
shall employ individuals who reside within a
five mile radius of the grocery store and
wellness center. This appropriation is not
available until at least an equal amount of
money is committed from nonstate sources.
This appropriation is available until the project
is completed or abandoned, subject to
Minnesota Statutes, section 16A.642.

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

(s) $875,000 each year is for the host
community economic development grant
program established in Minnesota Statutes,
section 116J.548.

(t) $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.

(u) $161,000 each year is from the workforce
development fund for a grant to the Rural
Policy and Development Center. This is a
onetime appropriation.

(v) $300,000 each year is from the workforce
development fund for a grant to Enterprise
Minnesota, Inc. This is a onetime
appropriation.

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

(x) $1,350,000 each year is from the
workforce development fund for job training
grants under Minnesota Statutes, section
116L.42.

(y)(1) $519,000 in fiscal year 2018 is for
grants to local communities to increase the
supply of quality child care providers in order
to support economic development. At least 60
percent of grant funds must go to communities
located outside of the seven-county
metropolitan area, as defined under Minnesota
Statutes, section 473.121, subdivision 2. Grant
recipients must obtain a 50 percent nonstate
match to grant funds in either cash or in-kind
contributions. Grant funds available under this
paragraph must be used to implement solutions
to reduce the child care shortage in the state
including but not limited to funding for child
care business start-ups or expansions, training,
facility modifications or improvements
required for licensing, and assistance with
licensing and other regulatory requirements.
In awarding grants, the commissioner must
give priority to communities that have
documented a shortage of child care providers
in the area.

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

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

(z) $319,000 in fiscal year 2018 is from the
general fund for a grant to the East Phillips
Improvement Coalition to create the East
Phillips Neighborhood Institute (EPNI) to
expand culturally tailored resources that
address small business growth and create
green jobs. The grant shall fund the
collaborative work of Tamales y Bicicletas,
Little Earth of the United Tribes, a nonprofit
serving East Africans, and other coalition
members towards developing EPNI as a
community space to host activities including,
but not limited to, creation and expansion of
small businesses, culturally specific
entrepreneurial activities, indoor urban
farming, job training, education, and skills
development for residents of this low-income,
environmental justice designated
neighborhood. Eligible uses for grant funds
include, but are not limited to, planning and
start-up costs, staff and consultant costs,
building improvements, rent, supplies, utilities,
vehicles, marketing, and program activities.
The commissioner shall submit a report on
grant activities and quantifiable outcomes to
the committees of the house of representatives
and the senate with jurisdiction over economic
development by December 15, 2020. This
appropriation is available until June 30, 2020.

(aa) $150,000 the first year is from the
renewable development account in the special
revenue fund established in Minnesota
Statutes, section 116C.779, subdivision 1, to
conduct the biomass facility closure economic
impact study.

(bb)(1) $300,000 in fiscal year 2018 is for a
grant to East Side Enterprise Center (ESEC)
to expand culturally tailored resources that
address small business growth and job
creation. This appropriation is available until
June 30, 2020. The appropriation shall fund
the work of African Economic Development
Solutions, the Asian Economic Development
Association, the Dayton's Bluff Community
Council, and the Latino Economic
Development Center in a collaborative
approach to economic development that is
effective with smaller, culturally diverse
communities that seek to increase the
productivity and success of new immigrant
and minority populations living and working
in the community. Programs shall provide
minority business growth and capacity
building that generate wealth and jobs creation
for local residents and business owners on the
East Side of St. Paul.

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

(cc) $150,000 in fiscal year 2018 is for a grant
to Mille Lacs County for the purpose of
reimbursement grants to small resort
businesses located in the city of Isle with less
than $350,000 in annual revenue, at least four
rental units, which are open during both
summer and winter months, and whose
business was adversely impacted by a decline
in walleye fishing on Lake Mille Lacs.

(dd)(1) $250,000 in fiscal year 2018 is for a
grant to the Small Business Development
Center hosted at Minnesota State University,
Mankato, for a collaborative initiative with
the Regional Center for Entrepreneurial
Facilitation. Funds available under this section
must be used to provide entrepreneur and
small business development direct professional
business assistance services in the following
counties in Minnesota: Blue Earth, Brown,
Faribault, Le Sueur, Martin, Nicollet, Sibley,
Watonwan, and Waseca. For the purposes of
this section, "direct professional business
assistance services" must include, but is not
limited to, pre-venture assistance for
individuals considering starting a business.
This appropriation is not available until the
commissioner determines that an equal amount
is committed from nonstate sources. Any
balance in the first year does not cancel and
is available for expenditure in the second year.

(2) Grant recipients shall report to the
commissioner by February 1 of each year and
include information on the number of
customers served in each county; the number
of businesses started, stabilized, or expanded;
the number of jobs created and retained; and
business success rates in each county. By April
1 of each year, the commissioner shall report
the information submitted by grant recipients
to the chairs of the standing committees of the
house of representatives and the senate having
jurisdiction over economic development
issues.

(ee) $500,000 in fiscal year 2018 is for the
central Minnesota opportunity grant program
established under Minnesota Statutes, section
116J.9922. This appropriation is available until
June 30, 2022.

(ff) $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.

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. 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.

(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.

Sec. 6.

Laws 2017, chapter 94, article 1, section 4, subdivision 5, is amended to read:


Subd. 5.

General Support

6,239,000
6,539,000
Appropriations by Fund
Workforce
Development Fund
200,000
500,000
Workers'
Compensation
6,039,000
6,039,000

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

(b) $200,000 in fiscal year 2018 is from the
workforce development fund for the
commissioner of labor and industry to convene
and collaborate with stakeholders as provided
under Minnesota Statutes, section 175.46,
subdivision 3
, and to develop youth skills
training competencies for approved
occupations. This is a onetime appropriation.

(c) $500,000 in fiscal year 2019 is from the
workforce development fund to administer the
youth skills training program under Minnesota
Statutes, section 175.46. The commissioner
shall award up to five grants each year to local
partnerships located throughout the state, not
to exceed $100,000 per local partnership grant.
The commissioner may use a portion up to
five percent
of this appropriation for
administration of the grant program. The base
amount for this program is $500,000
$1,000,000
each year beginning in fiscal year
2020.

Sec. 7.

Laws 2017, chapter 94, article 1, section 6, is amended to read:


Sec. 6. WORKERS' COMPENSATION COURT
OF APPEALS

$
1,913,000
$
1,913,000
1,946,000

This appropriation is from the workers'
compensation fund.

Sec. 8.

Laws 2017, chapter 94, article 1, section 7, subdivision 7, is amended to read:


Subd. 7.

Energy Resources

4,847,000
4,847,000
Appropriations by Fund
General
4,247,000
4,247,000
Special Revenue
600,000
600,000

(a) $150,000 each year is to remediate
vermiculate insulation from households that
are eligible for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.

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

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

(d) $500,000 each year is from the renewable
development account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for costs associated
with any third-party expert evaluation of a
proposal submitted in response to a request
for proposal to the renewable development
advisory group under Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(l). No portion of this appropriation may be
expended or retained by the commissioner of
commerce. Any funds appropriated under this
paragraph that are unexpended at the end of a
fiscal year cancel to the renewable
development account.

Sec. 9.

Laws 2017, chapter 94, article 1, section 9, is amended to read:


Sec. 9. PUBLIC FACILITIES AUTHORITY

$
1,800,000
$
-0-

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

(b) $600,000 in fiscal year 2018 is for a grant
to the Ramsey/Washington Recycling and
Energy Board to design, construct, and equip
capital improvements to the
Ramsey/Washington Recycling and Energy
Center in Newport.

(c) $900,000 in fiscal year 2018 is for a grant
to the Clear Lake-Clearwater Sewer Authority
to remove and replace the existing wastewater
treatment facility. This project is intended to
prevent the discharge of phosphorus into the
Mississippi River. This appropriation is not
available until the commissioner of
management and budget determines that at
least $200,000 is committed to the project
from nonstate sources and the authority has
applied for at least two grants to offset the
cost. An amount equal to any grant money
received by the authority must be returned to
the general fund. This appropriation is
available until June 30, 2019.

ARTICLE 7

ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2017 Supplement, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

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

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 2.

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


Subd. 9a.

Taconite economic development fund.

(a) 25.1 cents per ton for distributions
in 2002 and thereafter must be paid to the taconite economic development fund. No
distribution shall be made under this paragraph in 2004 or any subsequent year in which
total industry production falls below 30 million tons. Distribution shall only be made to a
Minnesota taconite pellet producer's fund under section 298.227 if the producer timely pays
its tax under section 298.24 by the dates provided under section 298.27, or pursuant to the
due dates provided by an administrative agreement with the commissioner.

(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate sold
in the form of pellet chips and fines not exceeding 5/16 inch in size and not including crushed
pellets shall be paid to the taconite economic development fund. The amount paid shall not
exceed $700,000 annually for all companies Minnesota taconite pellet producers. If the
initial amount to be paid to the fund exceeds this amount, each company's Minnesota taconite
pellet producer's
payment shall be prorated so the total does not exceed $700,000.

EFFECTIVE DATE.

This section is effective retroactively from December 31, 2016.

Sec. 3.

Minnesota Statutes 2016, section 465.73, is amended to read:


465.73 LOAN FROM, SECURED BY U.S. AGRICULTURE DEPARTMENT
AGENCY.

For purposes of constructing, repairing, or acquiring city halls, town halls, fire halls or
fire or rescue equipment, or libraries or child care facilities if otherwise authorized by law,
a statutory city, home rule charter city, county, or town may borrow not to exceed $450,000
$750,000
from (i) funds granted to a rural electric cooperative organized under chapter
308A by the United States Department of Agriculture Rural Business-Cooperative Service
or (ii) directly from or in the form of funds guaranteed by the Rural Housing Service or
other agency of the United States Department of Agriculture by a note secured by a mortgage
or other security agreement on the property purchased with the borrowed funds. The city,
county, or town may pledge its full faith and credit and assign or pledge the revenues, if
any, from the facilities or equipment so financed together with any other properly available
funds to secure the loan. The obligation of the note is not to be included when computing
the net debt of the city, county, or town, nor is the approval of the voters required for the
issuance of the note.

Sec. 4. TRANSFER 2018 DISTRIBUTION ONLY.

For the 2018 distribution, the fund established under Minnesota Statutes, section 298.28,
subdivision 7, shall receive ten cents per ton of any excess of the balance remaining after
distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6.

EFFECTIVE DATE.

This section is effective for the 2018 distribution, and the transfer
must be made within ten days of the August 2018 payment.

Sec. 5. DISLOCATED WORKER RAPID RESPONSE ACTIVITY.

Notwithstanding anything to the contrary, of the money appropriated to the Job Skills
Partnership Board for the purposes of Minnesota Statutes, section 116L.17, under Minnesota
Statutes, section 116L.20, subdivision 2, at least $650,000 in fiscal year 2019 is for a grant
to Career Solutions in St. Cloud to address the substantial anticipated job losses at the
Electrolux plant in St. Cloud. These services shall be provided by Career Solutions. Grant
funds may be used according to Minnesota Statutes, section 116L.17, subdivision 4,
including, but not limited to, GED programs, English language courses, computer literacy
efforts, and training in the manufacturing and construction trades. In addition, the
commissioner of employment and economic development is directed to take all necessary
steps, including application for any required federal waivers, to begin providing services
to affected workers before December 31, 2018.

Sec. 6. REVISOR'S INSTRUCTION; PROGRAM NAME CLARIFICATION.

In Minnesota Statutes, the revisor of statutes shall change the term "Minnesota investment
fund" to "North Star Disaster Contingency Account" wherever it is apparent from context
that the term "Minnesota investment fund" refers to the program under Minnesota Statutes,
section 116J.8731, subdivisions 8 and 9.

ARTICLE 8

LABOR AND INDUSTRY

Section 1.

Minnesota Statutes 2017 Supplement, section 175.46, subdivision 13, is amended
to read:


Subd. 13.

Grant awards.

(a) The commissioner shall award grants to local partnerships
located throughout the state, not to exceed $100,000 per local partnership grant. The
commissioner may use up to five percent of this amount for administration of the grant
program.

(b) 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.

(b) (c) Grant awards may not be used to directly or indirectly pay the wages of a student
learner.

Sec. 2.

Minnesota Statutes 2016, section 326B.106, subdivision 9, is amended to read:


Subd. 9.

Accessibility.

(a) Public buildings. The code must provide for making require
new
public buildings constructed or remodeled after July 1, 1963, and existing public
buildings when remodeled, to be
accessible to and usable by persons with disabilities,
although this does not require the remodeling of public buildings solely to provide
accessibility and usability to persons with disabilities when remodeling would not otherwise
be undertaken
.

(b) Leased space. No agency of the state may lease space for agency operations in a
non-state-owned building unless the building satisfies the requirements of the State Building
Code for accessibility by persons with disabilities, or is eligible to display the state symbol
of accessibility. This limitation applies to leases of 30 days or more for space of at least
1,000 square feet.

(c) Meetings or conferences. Meetings or conferences for the public or for state
employees which are sponsored in whole or in part by a state agency must be held in
buildings that meet the State Building Code requirements relating to accessibility for persons
with disabilities. This subdivision does not apply to any classes, seminars, or training
programs offered by the Minnesota State Colleges and Universities or the University of
Minnesota. Meetings or conferences intended for specific individuals none of whom need
the accessibility features for persons with disabilities specified in the State Building Code
need not comply with this subdivision unless a person with a disability gives reasonable
advance notice of an intent to attend the meeting or conference. When sign language
interpreters will be provided, meetings or conference sites must be chosen which allow
participants who are deaf or hard-of-hearing to see the sign language interpreters clearly.

(d) Exemptions. The commissioner may grant an exemption from the requirements of
paragraphs (b) and (c) in advance if an agency has demonstrated that reasonable efforts
were made to secure facilities which complied with those requirements and if the selected
facilities are the best available for access for persons with disabilities. Exemptions shall be
granted using criteria developed by the commissioner in consultation with the Council on
Disability.

(e) Symbol indicating access. The wheelchair symbol adopted by Rehabilitation
International's Eleventh World Congress is the state symbol indicating buildings, facilities,
and grounds which are accessible to and usable by persons with disabilities. In the interests
of uniformity, this symbol is the sole symbol for display in or on all public or private
buildings, facilities, and grounds which qualify for its use. The secretary of state shall obtain
the symbol and keep it on file. No building, facility, or grounds may display the symbol
unless it is in compliance with the rules adopted by the commissioner under subdivision 1.
Before any rules are proposed for adoption under this paragraph, the commissioner shall
consult with the Council on Disability. Rules adopted under this paragraph must be enforced
in the same way as other accessibility rules of the State Building Code.

Sec. 3.

Minnesota Statutes 2016, section 326B.815, subdivision 1, is amended to read:


Subdivision 1.

Fees.

(a) For the purposes of calculating fees under section 326B.092,
an initial or renewed residential contractor, residential remodeler, or residential roofer license
is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured
home installers under section 327B.041 is $300 $180 for a three-year period.

(b) All initial and renewal licenses, except for manufactured home installer licenses,
shall be effective for two years and shall expire on March 31 of the year after the year in
which the application is made.

(c) The commissioner shall in a manner determined by the commissioner, without the
need for any rulemaking under chapter 14, phase in the renewal of residential contractor,
residential remodeler, and residential roofer licenses from one year to two years. By June
30, 2011, all renewed residential contractor, residential remodeler, and residential roofer
licenses shall be two-year licenses.

Sec. 4.

Minnesota Statutes 2016, section 327B.041, is amended to read:


327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and
the requirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements
of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education
requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured
home installers shall be satisfied by successful completion of a written examination
administered and developed specifically for the examination of manufactured home installers.
The examination must be administered and developed by the commissioner. The
commissioner and the state building official shall seek advice on the grading, monitoring,
and updating of examinations from the Minnesota Manufactured Housing Association;

(3) a local government unit may not place a surcharge on a license fee, and may not
charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt
from licensure under sections 326B.802 to 326B.885;

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply;
and

(6) manufactured home installers are not subject to the contractor recovery fund in
section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a
manufactured home installer for any individual who holds an unexpired license or certificate
issued by any other state or other United States jurisdiction if the licensing requirements of
that jurisdiction meet or exceed the corresponding licensing requirements of the department
and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. For the
purposes of calculating fees under section 326B.092, licensure as a manufactured home
installer is a business license.

ARTICLE 9

WORKERS' COMPENSATION GENERAL

Section 1.

Minnesota Statutes 2017 Supplement, section 15A.083, subdivision 7, is
amended to read:


Subd. 7.

Workers' Compensation Court of Appeals and compensation judges.

Salaries of judges of the Workers' Compensation Court of Appeals are 98.52 105 percent
of the salary for district court workers' compensation judges of the Office of Administrative
Hearings
. The salary of the chief judge of the Workers' Compensation Court of Appeals is
98.52 107 percent of the salary for a chief district court judge workers' compensation judges
of the Office of Administrative Hearings
. Salaries of compensation judges are 98.52 percent
of the salary of district court judges.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 2.

Minnesota Statutes 2016, section 175A.05, is amended to read:


175A.05 QUORUM.

Subdivision 1.

Judges' quorum.

A majority of the judges of the Workers' Compensation
Court of Appeals shall constitute a quorum for the exercise of the powers conferred and the
duties imposed on the Workers' Compensation Court of Appeals except that all appeals
shall be heard by no more than a panel of three of the five judges unless the case appealed
is determined to be of exceptional importance by the chief judge prior to assignment of the
case to a panel, or by a three-fifths vote of the judges prior to assignment of the case to a
panel or after the case has been considered by the panel but prior to the service and filing
of the decision.

Subd. 2.

Vacancy.

A vacancy shall not impair the ability of the remaining judges of the
Workers' Compensation Court of Appeals to exercise all the powers and perform all of the
duties of the Workers' Compensation Court of Appeals.

Subd. 3.

Retired judges.

Where the number of Workers' Compensation Court of Appeals
judges available to hear a case is insufficient to constitute a quorum, the chief judge of the
Workers' Compensation Court of Appeals may, with the retired judge's consent, assign a
judge who is retired from the Workers' Compensation Court of Appeals or the Office of
Administrative Hearings to hear any case properly assigned to a judge of the Workers'
Compensation Court of Appeals. The retired judge assigned to the case may act on it with
the full powers of the judge of the Workers' Compensation Court of Appeals. A retired
judge performing this service shall receive pay and expenses in the amount and manner
provided by law for judges serving on the court, less the amount of retirement pay the judge
is receiving under chapter 352 or 490.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 3.

Minnesota Statutes 2016, section 176.231, subdivision 9, is amended to read:


Subd. 9.

Uses which that may be made of reports.

(a) Reports filed with the
commissioner under this section may be used in hearings held under this chapter, and for
the purpose of state investigations and for statistics. These reports are available to the
Department of Revenue for use in enforcing Minnesota income tax and property tax refund
laws, and the information shall be protected as provided in chapter 270B.

(b) The division or Office of Administrative Hearings or Workers' Compensation Court
of Appeals may permit the examination of its file by the employer, insurer, employee, or
dependent of a deceased employee or any person who furnishes written signed authorization
to do so from the employer, insurer, employee, or dependent of a deceased employee.
Reports filed under this section and other information the commissioner has regarding
injuries or deaths shall be made available to the Workers' Compensation Reinsurance
Association for use by the association in carrying out its responsibilities under chapter 79.

(c) The division may provide the worker identification number assigned under section
176.275, subdivision 1, without a signed authorization required under paragraph (b) to an:

(1) attorney who represents one of the persons described in paragraph (b);

(2) attorney who represents an intervenor or potential intervenor under section 176.361;

(3) intervenor; or

(4) employee's assigned qualified rehabilitation consultant under section 176.102.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 4.

[176.2611] COORDINATION OF THE OFFICE OF ADMINISTRATIVE
HEARINGS' CASE MANAGEMENT SYSTEM AND THE WORKERS'
COMPENSATION IMAGING SYSTEM.

Subdivision 1.

Definitions.

(a) For purposes of this section, the definitions in this
subdivision apply unless otherwise specified.

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

(c) "Department" means the Department of Labor and Industry.

(d) "Document" includes all data, whether in electronic or paper format, that is filed
with or issued by the office or department related to a claim-specific dispute resolution
proceeding under this section.

(e) "Office" means the Office of Administrative Hearings.

Subd. 2.

Applicability.

This section governs filing requirements pending completion
of the workers' compensation modernization program and access to documents and data in
the office's case management system, the workers' compensation Informix imaging system,
and the system that will be developed as a result of the workers' compensation modernization
program. This section prevails over any conflicting provision in this chapter, Laws 1998,
chapter 366, or corresponding rules.

Subd. 3.

Documents that must be filed with the office.

Except as provided in
subdivision 4 and section 176.421, all documents that require action by the office under
this chapter must be filed, electronically or in paper format, with the office as required by
the chief administrative law judge. Filing a document that initiates or is filed in preparation
for a proceeding at the office satisfies any requirement under this chapter that the document
must be filed with the commissioner.

Subd. 4.

Documents that must be filed with the commissioner.

(a) The following
documents must be filed directly with the commissioner in the format and manner prescribed
by the commissioner:

(1) all requests for an administrative conference under section 176.106, regardless of
the amount in dispute;

(2) a motion to intervene in an administrative conference that is pending at the department;

(3) any other document related to an administrative conference that is pending at the
department;

(4) an objection to a penalty assessed by the commissioner or the department;

(5) requests for medical and rehabilitation dispute certification under section 176.081,
subdivision 1, paragraph (c), including related documents; and

(6) except as provided in this subdivision or subdivision 3, any other document required
to be filed with the commissioner.

(b) The filing requirement in paragraph (a), clause (1), makes no changes to the
jurisdictional provisions in section 176.106. A claim petition that contains only medical or
rehabilitation issues, unless primary liability is disputed, is considered to be a request for
an administrative conference and must be filed with the commissioner.

(c) The commissioner must refer a timely, unresolved objection to a penalty under
paragraph (a), clause (4), to the office within 60 calendar days.

Subd. 5.

Form revision and access to documents and data.

(a) The commissioner
must revise dispute resolution forms, in consultation with the chief administrative law judge,
to reflect the filing requirements in this section.

(b) For purposes of this subdivision, "complete, read-only electronic access" means the
ability to view all data and document contents, including scheduling information, related
to workers' compensation disputes, except for the following:

(1) a confidential mediation statement, including any documents submitted with the
statement for the mediator's review;

(2) work product of a compensation judge, mediator, or commissioner that is not issued.
Examples of work product include personal notes of hearings or conferences and draft
decisions;

(3) the department's Vocational Rehabilitation Unit's case management system data;

(4) the special compensation fund's case management system data; and

(5) audit trail information.

(c) The office must be provided with continued, complete, read-only electronic access
to the workers' compensation Informix imaging system.

(d) The department must be provided with read-only electronic access to the office's
case management system, including the ability to view all data, including scheduling
information, but excluding access into filed documents.

(e) The office must send the department all documents that are accepted for filing or
issued by the office. The office must send the documents to the department, electronically
or by courier, within two business days of when the documents are accepted for filing or
issued by the office.

(f) The department must place documents that the office sends to the department in the
appropriate imaged file for the employee.

(g) The department must send the office copies of the following documents, electronically
or by courier, within two business days of when the documents are filed with or issued by
the department:

(1) notices of discontinuance;

(2) decisions issued by the department; and

(3) mediated agreements.

(h) Upon integration of the office's case management system and the department's system
resulting from the workers' compensation modernization program, each agency will be
provided with complete, read-only electronic access to the other agency's system.

(i) Each agency's responsible authority pursuant to section 13.02, subdivision 16, is
responsible for its own employees' use and dissemination of the data and documents in the
workers' compensation Informix imaging system, the office's case management system, and
the system developed as a result of the workers' compensation modernization program.

Subd. 6.

Data privacy.

(a) All documents filed with or issued by the department or the
office under this chapter are private data on individuals and nonpublic data pursuant to
chapter 13, except that the documents are available to the following:

(1) the office;

(2) the department;

(3) the employer;

(4) the insurer;

(5) the employee;

(6) the dependent of a deceased employee;

(7) an intervenor in the dispute;

(8) the attorney to a party in the dispute;

(9) a person who furnishes written authorization from the employer, insurer, employee,
or dependent of a deceased employee; and

(10) a person, agency, or other entity allowed access to the documents under this chapter
or other law.

(b) The office and department may post notice of scheduled proceedings on the agencies'
Web sites and at their principal places of business in any manner that protects the employee's
identifying information.

Subd. 7.

Workers' Compensation Court of Appeals.

The Workers' Compensation
Court of Appeals has authority to amend its rules of procedure to reflect electronic filing
with the office under this section for purposes of section 176.421, subdivision 5, and to
allow electronic filing with the court under section 176.285. The court may amend its rules
using the procedure in section 14.389.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 5.

Laws 2017, chapter 94, article 1, section 6, is amended to read:


Sec. 6. WORKERS' COMPENSATION COURT
OF APPEALS

$
1,913,000
$
1,913,000
1,946,000

This appropriation is from the workers'
compensation fund.

ARTICLE 10

HOSPITAL OUTPATIENT FEE SCHEDULE

Section 1.

[176.1364] WORKERS' COMPENSATION HOSPITAL OUTPATIENT
FEE SCHEDULE.

Subdivision 1.

Definitions.

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

(b) "Addendum A" means the addendum entitled "OPPS APCs for CY 2018," or its
successor, developed by the Centers for Medicare and Medicaid Services (Medicare) for
use in the Medicare Hospital Outpatient Prospective Payment System (OPPS) system under
Code of Federal Regulations, title 42, part 419, as may be amended from time to time.

(c) "Addendum B" means the addendum entitled "OPPS Payment by HCPCS Codes for
CY 2018," or its successor, developed by the Centers for Medicare and Medicaid Services
(Medicare) for use in the Medicare Hospital Outpatient Prospective Payment System (OPPS)
system under Code of Federal Regulations, title 42, part 419, as may be amended from time
to time.

(d) "HCPCS code" means a numeric or alphanumeric code included in the Centers for
Medicare and Medicaid Services' Healthcare Common Procedure Coding System. A HCPCS
code is used to identify a specific medical service.

(e) "Hospital" means a facility that is licensed by the Department of Health under section
144.50.

(f) "HOFS" means the workers' compensation hospital outpatient fee schedule established
under subdivision 3.

(g) "Insurer" includes workers' compensation insurers and self-insured employers.

(h) "Services" includes articles, supplies, procedures, and implantable devices provided
by the hospital with the service. Services are identified by a code described in subdivision
3.

Subd. 2.

Applicability.

(a) This section only applies to payment of charges for hospital
outpatient services if the charges include a service listed in the workers' compensation
hospital outpatient fee schedule established by the commissioner under subdivision 3. If
the charges do not include a service listed in the HOFS, payment shall be:

(1) the liability for each service that is included in the workers' compensation relative
value fee schedule as provided in section 176.136, subdivision 1a, and corresponding rules
adopted by the commissioner to implement the relative value fee schedule; or

(2) the liability as provided in section 176.136, subdivision 1b, paragraphs (b) and (c),
for each service that is not included in the workers' compensation relative value fee schedule.

(b) This section does not apply to outpatient services provided at a hospital that is certified
by Medicare as a critical access hospital. Outpatient services provided by these hospitals
shall be paid as provided in section 176.136, subdivision 1b, paragraph (a).

Subd. 3.

Hospital outpatient fee schedule (HOFS).

(a) Effective for hospital outpatient
services on or after October 1, 2018, the commissioner shall establish a workers'
compensation hospital outpatient fee schedule (HOFS) to establish the payment for hospital
bills with charges for services with a J1 or J2 status indicator as listed in the status indicator
(SI) column of Addendum B and the comprehensive observation services Ambulatory
Payment Classification (APC) 8011 with a J2 status indicator in Addendum A. The
commissioner shall publish a link to the HOFS in the State Register before October 1, 2018,
and shall maintain the current HOFS on the department's Web site.

(b) The amount listed for each of the procedures in the HOFS as described in paragraph
(a) shall be the relative weight for the procedure multiplied by a HOFS conversion factor
that results in the same overall payment for hospital outpatient services under this section
as the actual payments made in the most recent 12-month period available before the effective
date of this section. The commissioner must establish separate conversion factors to achieve
the same overall payment for noncritical access hospitals of 100 or fewer licensed beds and
hospitals with more than 100 licensed beds. The commissioner shall establish the two
conversion factors according to the requirements in clauses (1) to (4) in consultation with
insurer and hospital representatives.

(1) The commissioner shall obtain a suitable sample of de-identified data for Minnesota
workers' compensation outpatient cases at Minnesota hospitals for the most recently available
12-month period. The commissioner may obtain de-identified data from any reliable source,
including Minnesota hospitals and insurers, or their representatives. Any data provided to
the commissioner by a hospital, insurer, or their representative under this subdivision is
nonpublic data under section 13.02, subdivision 9.

(2) The sample must be divided into a data set for hospitals over 100 licensed beds, and
100 or fewer licensed beds, excluding critical access hospitals.

(3) For each data set the commissioner shall:

(i) calculate the total amount of the actual payments made in the most recent 12-month
period available before the effective date of this section, adjusted for inflation to July 2018;
and

(ii) apply all of the payment provisions in this section to each claim including, as
applicable, payment under the relative value fee schedule or 85 percent of the hospital's
usual and customary charge under section 176.136, subdivisions 1a and 1b, to determine
the total payment amount using the Medicare conversion factor in effect for the OPPS in
effect on July 1, 2018.

(4) The commissioner shall calculate the Minnesota conversion factor to equal the
Medicare conversion factor multiplied by the ratio of total payments under clause (3), item
(i), divided by the total payments under clause (3), item (ii).

(c) For purposes of this section:

(1) the relative weight is the amount in the "relative weight" column in Addendum B
and Addendum A for comprehensive observation services.

(2) references to J1, J2, and H status indicators; Addenda A and B; APC 8011; and
HCPCS code G0378 includes any successor status indicators, addenda, APC, or HCPCS
code established by the Centers for Medicare and Medicaid Services.

(d) On October 1 of each year, the commissioner shall adjust the HOFS conversion
factors based on the market basket index for inpatient hospital services calculated by
Medicare and published on its Web site. The adjustment on each October 1 shall be a
percentage equal to the value of that index averaged over the four quarters of the most recent
calendar year divided by the value of that index over the four quarters of the prior calendar
year.

(e) No later than October 1, 2021, and at least once every three years thereafter, the
commissioner shall update the HOFS established under this subdivision by incorporating
services with a J1 or J2 status indicator, and the corresponding relative weights, listed in
the Addenda A and B most recently available on Medicare's Web site as of the preceding
July 1. If Addenda A and B are not available on Medicare's Web site on the preceding July
1, the HOFS most recently published on the department's Web site remains in effect.

(1) Each time the HOFS is updated under this paragraph, the commissioner shall adjust
the conversion factors so that there is no difference between the overall payment under the
new HOFS and the overall payment under the HOFS most recently in effect, for services
in both HOFSs.

(2) The conversion factor adjustments under this paragraph shall be made separately for
each hospital category in paragraph (b).

(3) The conversion factor adjustments under this paragraph must be made before making
any additional adjustment under paragraph (d).

(f) The commissioner shall give notice in the State Register of the adjusted conversion
factor in paragraph (d) no later than October 1 annually. The commissioner shall give notice
in the State Register of an updated HOFS under paragraph (e) no later than October 1 of
the year in which the HOFS becomes effective. The notice must include a link to the HOFS
published on the department's Web site. The notices, the updated fee schedules, and the
adjusted conversion factors are not rules subject to chapter 14, but have the force and effect
of law as of the effective date published in the State Register.

Subd. 4.

Payment under the hospital outpatient fee schedule.

(a) Services in the
HOFS, and other hospital outpatient services provided with or as part of service in the
HOFS, are paid according to paragraphs (b) and (c).

(b) If a hospital bill includes a charge for one or more services with a J1 status indicator,
payment shall be as provided in this paragraph.

(1) If the bill includes a charge for only one service with only a J1 status indicator,
payment shall be the amount listed in the HOFS for that service, regardless of the amount
charged by the hospital.

(2) If the bill includes charges for more than one service with a J1 status indicator, the
service with the highest listed fee in the HOFS shall be paid at 100 percent of the listed fee.
Each additional service listed in the hospital outpatient fee shall be paid at 50 percent of
the listed fee. Payment under this clause shall be based on the applicable percentage of the
listed fee, regardless of the amount charged by the hospital.

(3) If the bill includes an additional charge for a service that does not have a J1 status
indicator listed in the HOFS, no separate payment is made for the additional service. Payment
for the additional service, including any service with a J2 status indicator, is packaged into
and is not paid separately from the payment amount listed in the HOFS for the service with
the J1 status indicator. Implantable devices are paid separately only as provided in subdivision
5.

(4) The insurer must not deny payment for any additional service packaged into payment
for a service listed in the HOFS on the basis that the additional service was not reasonably
required or causally related to an admitted work injury.

(c) If a hospital bill includes one or more charges for services with a J2 status indicator,
and does not include any charges for services with a J1 status indicator, payment shall be
as provided in this paragraph.

(1) Except for services packaged into an observation service as provided in clause (4),
payment for each service with a J2 status indicator shall be the amount listed in the HOFS,
regardless of the amount charged by the hospital.

(2) If a service without a HCPCS code is billed with a service with a J2 status indicator,
payment is packaged into the payment for the J2 service.

(3) Payment for drugs with a HCPCS code is separate from payment for the service with
the J2 code as provided in this clause.

(i) If the drug is delivered by injection or infusion, payment for the drug is packaged
into payment for the injection or infusion service.

(ii) If the drug is not delivered by injection or infusion, payment for the drug is paid at
the Medicare Average Sales Price (ASP) of the drug on the day the drug is dispensed. No
later than October 1, 2018, and October 1 of each subsequent year, the commissioner must
publish on the department's Web site a link to the ASP most recently available as of the
preceding July 1. If no ASP is available, the most recently posted ASP linked on the
department's Web site remains in effect.

(4) If a bill includes eight or more units of service with the HCPCS code G0378
(observation services, per hour), and there is a physician's or dentist's order for observation,
payment shall be the amount listed in the HOFS for the comprehensive observation services
Ambulatory Payment Classification 8011, regardless of the amount charged by the hospital.
All other services billed by the hospital, including other services with a J2 status indicator,
are packaged into the payment amount and are not paid separately from the payment amount
listed in the fee schedule for HCPCS code G0378.

(5) For any other service on the same bill as the service with a J2 status indicator, payment
shall be as provided in subdivision 2, paragraph (a).

Subd. 5.

Implantable devices.

The maximum fee for any service in the HOFS includes
payment for all implantable devices, even if the Medicare OPPS would otherwise allow
separate payment for the implantable device. However, separate payment in the amount of
85 percent of the hospital's usual and customary charge for an implantable device is allowed
if the implantable device:

(1) has an H status indicator in Addendum B;

(2) is properly charged on a bill with a service with a J1 status indicator in the HOFS;
and

(3) is properly billed with another HCPCS code, if required by Medicare's OPPS system.

The commissioner shall update the HOFS each October 1 to include any HCPCS codes that
are payable under this section according to the Addendum B most recently available on the
preceding July 1.

Subd. 6.

Study.

(a) The commissioner shall conduct a study analyzing the percentage
of claims with a service in the HOFS that were paid timely and the percentage of claims
paid accurately. The commissioner must report the results of the study and recommendations
to the Workers' Compensation Advisory Council and chairs and ranking minority members
of the house of representatives and senate committees with jurisdiction over workers'
compensation by January 15, 2021.

(b) Based on the results of the study, the WCAC shall consider whether there is a
minimum 80 percent compliance in timeliness and accuracy of payments, and additional
statutory amendments, including but not limited to:

(1) a maximum ten percent reduction in payments under the HOFS; and

(2) an increase in indemnity benefits to injured workers.

Subd. 7.

Rulemaking.

The commissioner may adopt or amend rules, using the authority
in section 14.386, paragraph (a), to implement this section. The rules are not subject to
expiration under section 14.386, paragraph (b).

EFFECTIVE DATE.

This section is effective for hospital outpatient services provided
on or after October 1, 2018.

ARTICLE 11

OUTPATIENT BILLING, PAYMENT, AND DISPUTE RESOLUTION

Section 1.

Minnesota Statutes 2016, section 176.136, subdivision 1b, is amended to read:


Subd. 1b.

Limitation of liability.

(a) The liability of the employer for treatment, articles,
and supplies provided to an employee while an inpatient or outpatient at a Critical Access
Hospital certified by the Centers for Medicare and Medicaid Services, or while an outpatient
at a hospital with 100 or fewer licensed beds,
shall be the hospital's usual and customary
charge, unless the charge is determined by the commissioner or a compensation judge to
be unreasonably excessive.

(b) The liability of the employer for the treatment, articles, and supplies that are not
limited by paragraph (a), subdivision 1a, or 1c, or section 176.1362, 176.1363, or 176.1364,
shall be limited to 85 percent of the provider's usual and customary charge, or 85 percent
of the prevailing charges for similar treatment, articles, and supplies furnished to an injured
person when paid for by the injured person, whichever is lower, except as provided in
paragraph (e)
. On this basis, the commissioner or compensation judge may determine the
reasonable value of all treatment, services, and supplies, and the liability of the employer
is limited to that amount. The commissioner may by rule establish the reasonable value of
a service, article, or supply in lieu of the 85 percent limitation in this paragraph. A prevailing
charge established under Minnesota Rules, part 5221.0500, subpart 2, must be based on no
more than two years of billing data immediately preceding the date of the service.

(c) The limitation of liability for charges provided by paragraph (b) does not apply to a
nursing home that participates in the medical assistance program and whose rates are
established by the commissioner of human services.

(d) An employer's liability for treatment, articles, and supplies provided under this chapter
by a health care provider located outside of Minnesota is limited to the payment that the
health care provider would receive if the treatment, article, or supply were paid under the
workers' compensation law of the jurisdiction in which the treatment was provided.

(e) The limitation of the employer's liability based on 85 percent of prevailing charge
does not apply to charges by an ambulatory surgical center as defined in section 176.1363,
subdivision 1, paragraph (b), or a hospital as defined in section 176.1364, subdivision 1,
paragraph (e).

(f) For purposes of this chapter, "inpatient" means a patient that has been admitted to a
hospital by an order from a physician or dentist. If there is no inpatient admission order,
the patient is deemed an outpatient. The hospital must provide documentation of an inpatient
order upon the request of the employer.

EFFECTIVE DATE.

This section is effective for treatment, articles, and supplies
provided on or after October 1, 2018.

Sec. 2.

[176.1365] OUTPATIENT BILLING, PAYMENT, AND DISPUTE
RESOLUTION.

Subdivision 1.

Scope.

This section applies to billing, payment, and dispute resolution
for services provided by an ambulatory surgical center (ASC) under section 176.1363 and
hospital outpatient services under section 176.1364. For purposes of this section, "insurer"
includes self-insured employer and "services" is as defined in section 176.1364.

Subd. 2.

Outpatient billing, coding, and prior notification.

(a) Ambulatory surgical
centers and hospitals must bill workers' compensation insurers for services governed by
sections 176.1363 and 176.1364 using the same codes, formats, and details that are required
for billing the Medicare program, including coding consistent with the American Medical
Association Current Procedural Terminology coding system and Medicare's Ambulatory
Surgical Center Payment System, Outpatient Prospective Payment System, Outpatient Code
Editor, Healthcare Current Procedural Terminology Coding System, and the National Correct
Coding Initiative Policy Manual for Medicare Services and associated Web page and tables.

(b) All charges for ASC or hospital outpatient fee schedule services governed by sections
176.1363 and 176.1364 must be submitted to the insurer on the appropriate electronic
transaction required by section 176.135, subdivisions 7 and 7a. ASCs must submit charges
on the electronic 837P form. ASCs must not separately bill for the services and items
included in the ASC facility fee under Code of Federal Regulations, title 42, section
416.164(a). Minnesota Rules, part 5221.4033, subpart 1a, does not apply to ASCs under
this section, but does apply to hospital outpatient facility fees to the extent they are not
covered by the hospital outpatient fee schedule under section 176.1364.

(c) Hospitals, ASCs, and insurers must comply with the prior notification and approval
or authorization requirements specified in Minnesota Rules, part 5221.6050, subpart 9. Prior
notification may be provided by either the hospital, ASC, or the surgeon. For purposes of
prior notification under Minnesota Rules, part 5221.6050, subpart 9, "inpatient" has the
meaning as provided under section 176.136, subdivision 1b, paragraph (d).

(d) ASC or hospital bills must be submitted to insurers as required by section 176.135,
subdivisions 7 and 7a, and within the time period required by section 62Q.75, subdivision
3. Insurers must respond to the initial bill as provided in section 176.135, subdivisions 6
and 7a. Copies of any records or reports relating to the items for which payment is sought
are separately payable as provided in section 176.135, subdivision 7, paragraph (a).

Subd. 3.

ASC or hospital request for reconsideration; insurer response; time frames.

(a) Following receipt of the insurer's explanation of review (EOR) or explanation of benefits
(EOB), the ASC or hospital may request reconsideration of a payment denial or reduction.
The ASC or hospital must submit its request for reconsideration in writing to the insurer
within one year of the date of the EOR or EOB.

(b) The insurer must issue a written response to the ASC or hospital's request for
reconsideration within 30 days, as provided in section 176.135, subdivision 6. The written
response must address the issues raised by the request for reconsideration and not simply
reiterate the information on the EOR or EOB.

Subd. 4.

Insurer request for reimbursement of overpayment; time frame.

If the
payer determines it has overpaid an ASC or hospital's charges based on workers'
compensation statutes and rules, the payer must submit its request for reimbursement in
writing to the ASC or hospital within one year of the date of the payment.

Subd. 5.

Medical requests for administrative conference; time frame to file.

(a) An
ASC, hospital, or insurer must notify the provider or payer, as applicable, of its intent to
file a medical request for an administrative conference under section 176.106 at least 20
days before filing one with the department. The insurer, or the ASC or hospital if permitted
by section 176.136, subdivision 2, must file the medical request for an administrative
conference no later than the latest of:

(1) one year after the date of the initial EOR or EOB if the ASC or hospital does not
request a reconsideration of a payment denial or reduction under subdivision 3;

(2) one year after the date of the insurer's response to the ASC or hospital's request for
reconsideration under subdivision 3; or

(3) one year after the insurer's request for reimbursement of an overpayment from an
ASC or hospital under subdivision 4.

(b) Paragraph (a) does not prohibit an employee from filing a medical request for
assistance or claim petition for the payment denied or reduced by the insurer. However, the
ASC or hospital may not bill the employee for the denied or reduced payment when
prohibited by this chapter.

Subd. 6.

Interest.

(a) An insurer must pay the ASC or hospital interest at an annual rate
of four percent if it is determined that the insurer is liable for additional ASC or hospital
charges following a denial of payment. Interest is payable by the insurer on the additional
amount owed from the date payment was due.

(b) An ASC or hospital must pay the insurer interest at an annual rate of four percent if
it is determined that the hospital owes the insurer reimbursement following the insurer's
request for reimbursement of an overpayment. Interest is payable by the ASC or hospital
on the amount of the overpayment from the date the overpayment was made.

EFFECTIVE DATE.

This section is effective for services provided on or after October
1, 2018.

ARTICLE 12

AMBULATORY SURGICAL CENTERS

Section 1.

[176.1363] AMBULATORY SURGICAL CENTER PAYMENT.

Subdivision 1.

Definitions.

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

(b) "Ambulatory surgical center" or "ASC" means a facility that is: (1) certified as an
ASC by the Centers for Medicare and Medicaid Services; or (2) licensed by the Department
of Health as a freestanding outpatient surgical center and not owned by a hospital.

(c) "Conversion factor" means the Medicare ambulatory surgical center payment system
(ASCPS) conversion factor used for ASCs that meet the Medicare quality reporting
requirements, whether or not the ASC submitting the bill has met the quality reporting
requirements.

(d) "Covered surgical procedures and ancillary services" means the procedures listed in
ASCPS, addendum AA, and the ancillary services integral to covered surgical procedures
listed in ASCPS, addendum BB.

(e) "Insurer" includes workers' compensation insurers and self-insured employers.

(f) "Ambulatory surgical center payment system" or "ASCPS" means the system
developed by the Centers for Medicare and Medicaid Services for payment of surgical
services provided by federally certified ASCs as specified in:

(1) Code of Federal Regulations, title 42, part 416, including without limitation the
geographic adjustment for the ASC and the multiple surgical procedure reduction rule;

(2) annual revisions to Code of Federal Regulations, title 42, part 416, as published in
the Federal Register;

(3) the corresponding addendum AA (final ASC covered surgical procedures), addendum
BB (final covered ancillary services integral to covered surgical procedures), addendum
DD1 (final ASC payment indicators), and any successor or replacement addenda; and

(4) the Medicare claims processing manual.

(g) "Medicare ASCPS payment" means the Medicare ASCPS payment used for ASCs
that meet the Medicare quality reporting requirements, whether or not the ASC submitting
the bill has met the Medicare quality reporting requirements.

Subd. 2.

Payment for covered surgical procedures and ancillary services based on
Medicare ASCPS.

(a) Except as provided in subdivisions 3 and 4, the payment to the ASC
for covered surgical procedures and ancillary services shall be the lesser of:

(1) the ASC's usual and customary charge for all services, supplies, and implantable
devices provided; or

(2) the Medicare ASCPS payment, times a multiplier of 320 percent.

(i) The amount payable under this clause includes payment for all implantable devices,
even if the Medicare ASCPS would otherwise allow separate payment for the implantable
device.

(ii) The 320 percent described in this clause must be adjusted if, on July 1, 2019, or any
subsequent July 1, the conversion factor is less than 98 percent of the conversion factor in
effect on the previous July 1. When this occurs, the multiplier must be 320 percent times
98 percent divided by the percentage that the current Medicare conversion factor bears to
the Medicare conversion factor in effect on the prior July 1. In subsequent years, the
multiplier is 320 percent, unless the Medicare ASCPS conversion factor declines by more
than two percent.

(b) Payment under this section is effective for covered surgical procedures and ancillary
services provided by an ASC on or after October 1, 2018, through September 30, 2019, and
shall be based on the addenda AA, BB, and DD1 most recently available on the Centers for
Medicare and Medicaid Services Web site as of July 1, 2018, and the corresponding rules
and Medicare claims processing manual described in subdivision 1, paragraph (f).

(1) Payment for covered surgical procedures and ancillary services provided by an ASC
on or after each subsequent October 1 shall be based on the addenda AA, BB, and DD1
most recently available on the Centers for Medicare and Medicaid Services Web site as of
the preceding July 1 and the corresponding rules and Medicare claims processing manual.

(2) If the Centers for Medicare and Medicaid Services has not updated addendum AA,
BB, or DD1 on its Web site since the commissioner's previous notice under paragraph (c),
the addenda identified in the notice published by the commissioner in paragraph (c) and the
corresponding rules and Medicare claims processing manual shall remain in effect.

(3) Addenda AA, BB, and DD1 under this subdivision includes successor or replacement
addenda.

(c) The commissioner shall annually give notice in the State Register of any adjustment
to the multiplier under paragraph (a), clause (2), and of the applicable addenda in paragraph
(b) no later than October 1. The notice must identify and include a link to the applicable
addenda. The notices and any adjustment to the multiplier are not rules subject to chapter
14, but have the force and effect of law as of the effective date published in the State Register.

Subd. 3.

Payment for compensable surgical services not covered under ASCPS.

(a)
If a surgical procedure provided by an ASC is compensable under this chapter but is not
listed in addendum AA or BB of the Medicare ASCPS, payment must be 75 percent of the
ASC's usual and customary charge for the procedure with the highest charge. Payment for
each subsequent surgical procedure not listed in addendum AA or BB must be paid at 50
percent of the ASC's usual and customary charge.

(b) Payment must be 75 percent of the ASC's usual and customary charge for a surgical
procedure or ancillary service if the procedure or service is listed in Medicare ASCPS
addendum AA or BB and: (1) the payment indicator provides it is paid at a reasonable cost;
(2) the payment indicator provides it is contractor priced; or (3) a payment rate is not
otherwise provided.

Subd. 4.

Study.

The commissioner shall conduct a study analyzing the impact of the
reforms, including timeliness and accuracy of payment under this section, and recommend
further changes if needed. The commissioner must report the results of the study to the
Workers' Compensation Advisory Council and the chairs and ranking minority members
of the legislative committees with jurisdiction over workers' compensation by January 15,
2021.

Subd. 5.

Rulemaking.

The commissioner may adopt or amend rules using the authority
in section 14.386, paragraph (a), to implement this section and the Medicare ASCPS for
workers' compensation. The rules are not subject to expiration under section 14.386,
paragraph (b).

EFFECTIVE DATE.

This section is effective for procedures and services provided by
an ASC on or after October 1, 2018, except subdivision 5 is effective the day following
final enactment.

ARTICLE 13

WORKERS' COMPENSATION BENEFITS

Section 1.

Minnesota Statutes 2016, section 176.011, subdivision 15, is amended to read:


Subd. 15.

Occupational disease.

(a) "Occupational disease" means a mental impairment
as defined in paragraph (d) or physical disease arising out of and in the course of employment
peculiar to the occupation in which the employee is engaged and due to causes in excess of
the hazards ordinary of employment and shall include undulant fever. Physical stimulus
resulting in mental injury and mental stimulus resulting in physical injury shall remain
compensable. Mental impairment is not considered a disease if it results from a disciplinary
action, work evaluation, job transfer, layoff, demotion, promotion, termination, retirement,
or similar action taken in good faith by the employer. Ordinary diseases of life to which the
general public is equally exposed outside of employment are not compensable, except where
the diseases follow as an incident of an occupational disease, or where the exposure peculiar
to the occupation makes the disease an occupational disease hazard. A disease arises out of
the employment only if there be a direct causal connection between the conditions under
which the work is performed and if the occupational disease follows as a natural incident
of the work as a result of the exposure occasioned by the nature of the employment. An
employer is not liable for compensation for any occupational disease which cannot be traced
to the employment as a direct and proximate cause and is not recognized as a hazard
characteristic of and peculiar to the trade, occupation, process, or employment or which
results from a hazard to which the worker would have been equally exposed outside of the
employment.

(b) If immediately preceding the date of disablement or death, an employee was employed
on active duty with an organized fire or police department of any municipality, as a member
of the Minnesota State Patrol, conservation officer service, state crime bureau, as a forest
officer by the Department of Natural Resources, state correctional officer, or sheriff or
full-time deputy sheriff of any county, and the disease is that of myocarditis, coronary
sclerosis, pneumonia or its sequel, and at the time of employment such employee was given
a thorough physical examination by a licensed doctor of medicine, and a written report
thereof has been made and filed with such organized fire or police department, with the
Minnesota State Patrol, conservation officer service, state crime bureau, Department of
Natural Resources, Department of Corrections, or sheriff's department of any county, which
examination and report negatived any evidence of myocarditis, coronary sclerosis, pneumonia
or its sequel, the disease is presumptively an occupational disease and shall be presumed
to have been due to the nature of employment. If immediately preceding the date of
disablement or death, any individual who by nature of their position provides emergency
medical care, or an employee who was employed as a licensed police officer under section
626.84, subdivision 1; firefighter; paramedic; state correctional officer; emergency medical
technician; or licensed nurse providing emergency medical care; and who contracts an
infectious or communicable disease to which the employee was exposed in the course of
employment outside of a hospital, then the disease is presumptively an occupational disease
and shall be presumed to have been due to the nature of employment and the presumption
may be rebutted by substantial factors brought by the employer or insurer. Any substantial
factors which shall be used to rebut this presumption and which are known to the employer
or insurer at the time of the denial of liability shall be communicated to the employee on
the denial of liability.

(c) A firefighter on active duty with an organized fire department who is unable to
perform duties in the department by reason of a disabling cancer of a type caused by exposure
to heat, radiation, or a known or suspected carcinogen, as defined by the International
Agency for Research on Cancer, and the carcinogen is reasonably linked to the disabling
cancer, is presumed to have an occupational disease under paragraph (a). If a firefighter
who enters the service after August 1, 1988, is examined by a physician prior to being hired
and the examination discloses the existence of a cancer of a type described in this paragraph,
the firefighter is not entitled to the presumption unless a subsequent medical determination
is made that the firefighter no longer has the cancer.

(d) For the purposes of this chapter, "mental impairment" means a diagnosis of
post-traumatic stress disorder by a licensed psychiatrist or psychologist. For the purposes
of this chapter, "post-traumatic stress disorder" means the condition as described in the most
recently published edition of the Diagnostic and Statistical Manual of Mental Disorders by
the American Psychiatric Association. For purposes of section 79.34, subdivision 2, one or
more compensable mental impairment claims arising out of a single event or occurrence
shall constitute a single loss occurrence.

(e) If, preceding the date of disablement or death, an employee who was employed on
active duty as: a licensed police officer; a firefighter; a paramedic; an emergency medical
technician; a licensed nurse employed to provide emergency medical services outside of a
medical facility; a public safety dispatcher; an officer employed by the state or a political
subdivision at a corrections, detention, or secure treatment facility; a sheriff or full-time
deputy sheriff of any county; or a member of the Minnesota State Patrol is diagnosed with
a mental impairment as defined in paragraph (d), and had not been diagnosed with the mental
impairment previously, then the mental impairment is presumptively an occupational disease
and shall be presumed to have been due to the nature of employment. This presumption
may be rebutted by substantial factors brought by the employer or insurer. Any substantial
factors that are used to rebut this presumption and that are known to the employer or insurer
at the time of the denial of liability shall be communicated to the employee on the denial
of liability. The mental impairment is not considered an occupational disease if it results
from a disciplinary action, work evaluation, job transfer, layoff, demotion, promotion,
termination, retirement, or similar action taken in good faith by the employer.

EFFECTIVE DATE.

This section is effective for employees with dates of injury on
or after January 1, 2019.

Sec. 2.

Minnesota Statutes 2016, section 176.101, subdivision 2, is amended to read:


Subd. 2.

Temporary partial disability.

(a) In all cases of temporary partial disability
the compensation shall be 66-2/3 percent of the difference between the weekly wage of the
employee at the time of injury and the wage the employee is able to earn in the employee's
partially disabled condition. This compensation shall be paid during the period of disability
except as provided in this section, payment to be made at the intervals when the wage was
payable, as nearly as may be, and subject to the maximum rate for temporary total
compensation.

(b) Temporary partial compensation may be paid only while the employee is employed,
earning less than the employee's weekly wage at the time of the injury, and the reduced
wage the employee is able to earn in the employee's partially disabled condition is due to
the injury. Except as provided in section 176.102, subdivision 11, paragraphs (b) and (c),
temporary partial compensation may not be paid for more than 225 275 weeks, or after 450
weeks after the date of injury, whichever occurs first.

(c) Temporary partial compensation must be reduced to the extent that the wage the
employee is able to earn in the employee's partially disabled condition plus the temporary
partial disability payment otherwise payable under this subdivision exceeds 500 percent of
the statewide average weekly wage.

Sec. 3.

Minnesota Statutes 2016, section 176.101, subdivision 2a, is amended to read:


Subd. 2a.

Permanent partial disability.

(a) Compensation for permanent partial disability
is as provided in this subdivision. Permanent partial disability must be rated as a percentage
of the whole body in accordance with rules adopted by the commissioner under section
176.105. The percentage determined pursuant to the rules must be multiplied by the
corresponding amount in the following table:

Impairment Rating
Amount
(percent)
less than 5.5
$
75,000
78,800
5.5 to less than 10.5
80,000
84,000
10.5 to less than 15.5
85,000
89,300
15.5 to less than 20.5
90,000
94,500
20.5 to less than 25.5
95,000
99,800
25.5 to less than 30.5
100,000
105,000
30.5 to less than 35.5
110,000
115,500
35.5 to less than 40.5
120,000
126,000
40.5 to less than 45.5
130,000
136,500
45.5 to less than 50.5
140,000
147,000
50.5 to less than 55.5
165,000
173,300
55.5 to less than 60.5
190,000
199,500
60.5 to less than 65.5
215,000
225,800
65.5 to less than 70.5
240,000
252,000
70.5 to less than 75.5
265,000
278,300
75.5 to less than 80.5
315,000
330,800
80.5 to less than 85.5
365,000
383,300
85.5 to less than 90.5
415,000
435,800
90.5 to less than 95.5
465,000
488,300
95.5 up to and including 100
515,000
540,800

An employee may not receive compensation for more than a 100 percent disability of
the whole body, even if the employee sustains disability to two or more body parts.

(b) Permanent partial disability is payable upon cessation of temporary total disability
under subdivision 1. If the employee requests payment in a lump sum, then the compensation
must be paid within 30 days. This lump-sum payment may be discounted to the present
value calculated up to a maximum five percent basis. If the employee does not choose to
receive the compensation in a lump sum, then the compensation is payable in installments
at the same intervals and in the same amount as the employee's temporary total disability
rate on the date of injury. Permanent partial disability is not payable while temporary total
compensation is being paid.

Sec. 4.

Minnesota Statutes 2016, section 176.101, subdivision 4, is amended to read:


Subd. 4.

Permanent total disability.

For permanent total disability, as defined in
subdivision 5, the compensation shall be 66-2/3 percent of the daily wage at the time of the
injury, subject to a maximum weekly compensation equal to the maximum weekly
compensation for a temporary total disability and a minimum weekly compensation equal
to 65 percent of the statewide average weekly wage. This compensation shall be paid during
the permanent total disability of the injured employee but after a total of $25,000 of weekly
compensation has been paid, the amount of the weekly compensation benefits being paid
by the employer shall be reduced by the amount of any disability benefits being paid by
any government disability benefit program if the disability benefits are occasioned by the
same injury or injuries which give rise to payments under this subdivision. This reduction
shall also apply to any old age and survivor insurance benefits. Payments shall be made at
the intervals when the wage was payable, as nearly as may be. In case an employee who is
permanently and totally disabled becomes an inmate of a public institution, no compensation
shall be payable during the period of confinement in the institution, unless there is wholly
dependent on the employee for support some person named in section 176.111, subdivision
1, 2 or 3
, in which case the compensation provided for in section 176.111, during the period
of confinement, shall be paid for the benefit of the dependent person during dependency.
The dependency of this person shall be determined as though the employee were deceased.
Permanent total disability shall cease at age 67 because the employee is presumed retired
from the labor market
72, except that if an employee is injured after age 67, permanent total
disability benefits shall cease after five years of those benefits have been paid
. This
presumption is rebuttable by the employee. The subjective statement the employee is not
retired is not sufficient in itself to rebut the presumptive evidence of retirement but may be
considered along with other evidence.

Sec. 5.

Minnesota Statutes 2016, section 176.102, subdivision 11, is amended to read:


Subd. 11.

Retraining; compensation.

(a) Retraining is limited to 156 weeks. An
employee who has been approved for retraining may petition the commissioner or
compensation judge for additional compensation not to exceed 25 percent of the
compensation otherwise payable. If the commissioner or compensation judge determines
that this additional compensation is warranted due to unusual or unique circumstances of
the employee's retraining plan, the commissioner may award additional compensation in
an amount not to exceed the employee's request. This additional compensation shall cease
at any time the commissioner or compensation judge determines the special circumstances
are no longer present.

(b) If the employee is not employed during a retraining plan that has been specifically
approved under this section, temporary total compensation is payable for up to 90 days after
the end of the retraining plan; except that, payment during the 90-day period is subject to
cessation in accordance with section 176.101. If the employee is employed during the
retraining plan but earning less than at the time of injury, temporary partial compensation
is payable at the rate of 66-2/3 percent of the difference between the employee's weekly
wage at the time of injury and the weekly wage the employee is able to earn in the employee's
partially disabled condition, subject to the maximum rate for temporary total compensation.
Temporary partial compensation is not subject to the 225-week 275-week or 450-week
limitations provided by section 176.101, subdivision 2, during the retraining plan, but is
subject to those limitations before and after the plan.

(c) Any request for retraining shall be filed with the commissioner before 208 weeks of
any combination of temporary total or temporary partial compensation have been paid.
Retraining shall not be available after 208 weeks of any combination of temporary total or
temporary partial compensation benefits have been paid unless the request for the retraining
has been filed with the commissioner prior to the time the 208 weeks of compensation have
been paid.

(d) The employer or insurer must notify the employee in writing of the 208-week
limitation for filing a request for retraining with the commissioner. This notice must be
given before 80 weeks of temporary total disability or temporary partial disability
compensation have been paid, regardless of the number of weeks that have elapsed since
the date of injury. If the notice is not given before the 80 weeks, the period of time within
which to file a request for retraining is extended by the number of days the notice is late,
but in no event may a request be filed later than 225 weeks after any combination of
temporary total disability or temporary partial disability compensation have been paid. The
commissioner may assess a penalty of $25 per day that the notice is late, up to a maximum
penalty of $2,000, against an employer or insurer for failure to provide the notice. The
penalty is payable to the commissioner for deposit in the assigned risk safety account.

Sec. 6.

Minnesota Statutes 2016, section 176.83, subdivision 5, is amended to read:


Subd. 5.

Treatment standards for medical services.

(a) In consultation with the Medical
Services Review Board or the rehabilitation review panel, the commissioner shall adopt
rules establishing standards and procedures for health care provider treatment. The rules
shall apply uniformly to all providers including those providing managed care under section
176.1351. The rules shall be used to determine whether a provider of health care services
and rehabilitation services, including a provider of medical, chiropractic, podiatric, surgical,
hospital, or other services, is performing procedures or providing services at a level or with
a frequency that is excessive, unnecessary, or inappropriate under section 176.135,
subdivision 1
, based upon accepted medical standards for quality health care and accepted
rehabilitation standards.

(b) The rules shall include, but are not limited to, the following:

(1) criteria for diagnosis and treatment of the most common work-related injuries
including, but not limited to, low back injuries and upper extremity repetitive trauma injuries;

(2) criteria for surgical procedures including, but not limited to, diagnosis, prior
conservative treatment, supporting diagnostic imaging and testing, and anticipated outcome
criteria;

(3) criteria for use of appliances, adaptive equipment, and use of health clubs or other
exercise facilities;

(4) criteria for diagnostic imaging procedures;

(5) criteria for inpatient hospitalization;

(6) criteria for treatment of chronic pain; and

(7) criteria for the long-term use of opioids or other scheduled medications to alleviate
intractable pain and improve function, including the use of written contracts between the
injured worker and the health care provider who prescribes the medication.; and

(8) criteria for treatment of post-traumatic stress disorder. In developing such treatment
criteria, the commissioner and the Medical Services Review Board shall consider the
guidance set forth in the American Psychological Association's most recently adopted
Clinical Practice Guideline for the Treatment of Posttraumatic Stress Disorder (PTSD) in
Adults. The commissioner shall adopt such rules using the expedited rulemaking process
in section 14.389, including subdivision 5, to commence promptly upon final enactment of
the legislation enacting this clause. Such rules shall apply to employees with all dates of
injury who receive treatment after the commissioner adopts the rules. In consultation with
the Medical Services Review Board, the commissioner shall review and update the rules
governing criteria for treatment of post-traumatic stress disorder each time the American
Psychological Association adopts a significant change to their Clinical Practice Guideline
for the Treatment of PTSD in Adults, using the expedited rulemaking process in section
14.389, including subdivision 5.

(c) If it is determined by the payer that the level, frequency, or cost of a procedure or
service of a provider is excessive, unnecessary, or inappropriate according to the standards
established by the rules, the provider shall not be paid for the procedure, service, or cost by
an insurer, self-insurer, or group self-insurer, and the provider shall not be reimbursed or
attempt to collect reimbursement for the procedure, service, or cost from any other source,
including the employee, another insurer, the special compensation fund, or any government
program unless the commissioner or compensation judge determines at a hearing or
administrative conference that the level, frequency, or cost was not excessive under the
rules in which case the insurer, self-insurer, or group self-insurer shall make the payment
deemed reasonable.

(d) A rehabilitation provider who is determined by the rehabilitation review panel board,
after hearing, to be consistently performing procedures or providing services at an excessive
level or cost may be prohibited from receiving any further reimbursement for procedures
or services provided under this chapter. A prohibition imposed on a provider under this
subdivision may be grounds for revocation or suspension of the provider's license or
certificate of registration to provide health care or rehabilitation service in Minnesota by
the appropriate licensing or certifying body. The commissioner and Medical Services Review
Board shall review excessive, inappropriate, or unnecessary health care provider treatment
under section 176.103.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 7. EFFECTIVE DATE.

Unless otherwise specified, this article is effective for employees with dates of injury
on or after October 1, 2018.

ARTICLE 14

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; POLICY

Section 1.

Minnesota Statutes 2016, section 268.035, subdivision 12, is amended to read:


Subd. 12.

Covered employment.

(a) "Covered employment" means the following unless
excluded as "noncovered employment" under subdivision 20:

(1) an employee's entire employment during the calendar quarter if:

(i) (1) 50 percent or more of the employment during the quarter is performed primarily
in Minnesota;

(ii) (2) 50 percent or more of the employment during the quarter is not performed
primarily in Minnesota or any other state, or Canada, but some of the employment is
performed in Minnesota and the base of operations or the place from which the employment
is directed or controlled is in Minnesota; or

(iii) the employment during the quarter is not performed primarily in Minnesota or any
other state and the base of operations or place from which the employment is directed or
controlled is not in any state where part of the employment is performed, but the
employee's
residence is in Minnesota during 50 percent or more of the calendar quarter;

(2) an employee's entire employment during the calendar quarter performed within the
United States or Canada, if:

(i) the employment is not covered employment under the unemployment insurance
program of any other state, federal law, or the law of Canada; and

(ii) the place from which the employment is directed or controlled is in Minnesota;

(3) the employment during the calendar quarter, is performed entirely outside the United
States and Canada, by an employee who is a United States citizen in the employ of an
American employer, if the employer's principal place of business in the United States is
located in Minnesota. For the purposes of this clause, an "American employer," for the
purposes of this clause, means a corporation organized under the laws of any state, an
individual who is a resident of the United States, or a partnership if two-thirds or more of
the partners are residents of the United States, or a trust, if all of the trustees are residents
of the United States
is as defined under the Federal Unemployment Tax Act, United States
Code title 26, chapter 23, section 3306, subsection (j)(3)
; and

(4) all the employment during the calendar quarter is performed by an officer or member
of the crew of an American vessel on or in connection with the vessel, if the operating on
navigable waters within, or within and without, the United States, and the
office from which
the operations of the vessel operating on navigable waters within, or within and without,
the United States
are ordinarily and regularly supervised, managed, directed, and controlled
is in Minnesota.

(b) "Covered employment" includes covered agricultural employment under subdivision
11.

(c) For the purposes of section 268.095, "covered employment" includes employment
covered under an unemployment insurance program:

(1) of any other state; or

(2) established by an act of Congress.; or

(3) the law of Canada.

(d) The percentage of employment performed under paragraph (a) is determined by the
amount of hours worked.

(e) Covered employment does not include any employment defined as "noncovered
employment" under subdivision 20.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 268.035, subdivision 20, is amended
to read:


Subd. 20.

Noncovered employment.

"Noncovered employment" means:

(1) employment for the United States government or an instrumentality thereof, including
military service;

(2) employment for a state, other than Minnesota, or a political subdivision or
instrumentality thereof;

(3) employment for a foreign government;

(4) employment covered under the federal Railroad Unemployment Insurance Act;

(5) employment for a church or convention or association of churches, or a nonprofit
organization operated primarily for religious purposes that is operated, supervised, controlled,
or principally supported by a church or convention or association of churches;

(6) employment for an elementary or secondary school with a curriculum that includes
religious education that is operated by a church, a convention or association of churches,
or a nonprofit organization that is operated, supervised, controlled, or principally supported
by a church or convention or association of churches;

(7) employment for Minnesota or a political subdivision, or a nonprofit organization, of
a duly ordained or licensed minister of a church in the exercise of a ministry or by a member
of a religious order in the exercise of duties required by the order;

(8) employment for Minnesota or a political subdivision, or a nonprofit organization, of
an individual receiving rehabilitation of "sheltered" work in a facility conducted for the
purpose of carrying out a program of rehabilitation for individuals whose earning capacity
is impaired by age or physical or mental deficiency or injury or a program providing
"sheltered" work for individuals who because of an impaired physical or mental capacity
cannot be readily absorbed in the competitive labor market. This clause applies only to
services performed in a facility certified by the Rehabilitation Services Branch of the
department or in a day training or habilitation program licensed by the Department of Human
Services;

(9) employment for Minnesota or a political subdivision, or a nonprofit organization, of
an individual receiving work relief or work training as part of an unemployment work relief
or work training program financed in whole or in part by any federal agency or an agency
of a state or political subdivision thereof. This clause does not apply to programs that require
unemployment benefit coverage for the participants;

(10) employment for Minnesota or a political subdivision, as an elected official, a member
of a legislative body, or a member of the judiciary;

(11) employment as a member of the Minnesota National Guard or Air National Guard;

(12) employment for Minnesota or a political subdivision, or instrumentality thereof, of
an individual serving on a temporary basis in case of fire, flood, tornado, or similar
emergency;

(13) employment as an election official or election worker for Minnesota or a political
subdivision, if the compensation for that employment was less than $1,000 in a calendar
year;

(14) employment for Minnesota that is a major policy-making or advisory position in
the unclassified service;

(15) employment for Minnesota in an unclassified position established under section
43A.08, subdivision 1a;

(16) employment for a political subdivision of Minnesota that is a nontenured major
policy making or advisory position;

(17) domestic employment in a private household, local college club, or local chapter
of a college fraternity or sorority, if the wages paid in any calendar quarter in either the
current or prior calendar year to all individuals in domestic employment totaled less than
$1,000.

"Domestic employment" includes all service in the operation and maintenance of a
private household, for a local college club, or local chapter of a college fraternity or sorority
as distinguished from service as an employee in the pursuit of an employer's trade or business;

(18) employment of an individual by a son, daughter, or spouse, and employment of a
child under the age of 18 by the child's father or mother;

(19) employment of an inmate of a custodial or penal institution;

(20) employment for a school, college, or university, by a student who is enrolled and
whose primary relation to the school, college, or university is as a student. This does not
include an individual whose primary relation to the school, college, or university is as an
employee who also takes courses;

(21) employment of an individual who is enrolled as a student in a full-time program at
a nonprofit or public educational institution that maintains a regular faculty and curriculum
and has a regularly organized body of students in attendance at the place where its educational
activities are carried on, taken for credit at the institution, that combines academic instruction
with work experience, if the employment is an integral part of the program, and the institution
has so certified to the employer, except that this clause does not apply to employment in a
program established for or on behalf of an employer or group of employers;

(22) employment of a foreign college or university student who works on a seasonal or
temporary basis under the J-1 visa summer work travel program described in Code of Federal
Regulations, title 22, section 62.32;

(22) (23) employment of university, college, or professional school students in an
internship or other training program with the city of St. Paul or the city of Minneapolis
under Laws 1990, chapter 570, article 6, section 3;

(23) (24) employment for a hospital by a patient of the hospital. "Hospital" means an
institution that has been licensed by the Department of Health as a hospital;

(24) (25) employment as a student nurse for a hospital or a nurses' training school by
an individual who is enrolled and is regularly attending classes in an accredited nurses'
training school;

(25) (26) employment as an intern for a hospital by an individual who has completed a
four-year course in an accredited medical school;

(26) (27) employment as an insurance salesperson, by other than a corporate officer, if
all the wages from the employment is solely by way of commission. The word "insurance"
includes an annuity and an optional annuity;

(27) (28) employment as an officer of a township mutual insurance company or farmer's
mutual insurance company under chapter 67A;

(28) (29) employment of a corporate officer, if the officer directly or indirectly, including
through a subsidiary or holding company, owns 25 percent or more of the employer
corporation, and employment of a member of a limited liability company, if the member
directly or indirectly, including through a subsidiary or holding company, owns 25 percent
or more of the employer limited liability company;

(29) (30) employment as a real estate salesperson, other than a corporate officer, if all
the wages from the employment is solely by way of commission;

(30) (31) employment as a direct seller as defined in United States Code, title 26, section
3508;

(31) (32) employment of an individual under the age of 18 in the delivery or distribution
of newspapers or shopping news, not including delivery or distribution to any point for
subsequent delivery or distribution;

(32) (33) casual employment performed for an individual, other than domestic
employment under clause (17), that does not promote or advance that employer's trade or
business;

(33) (34) employment in "agricultural employment" unless it is "covered agricultural
employment" under subdivision 11; or

(34) (35) if employment during one-half or more of any pay period was covered
employment, all the employment for the pay period is covered employment; but if during
more than one-half of any pay period the employment was noncovered employment, then
all of the employment for the pay period is noncovered employment. "Pay period" means
a period of not more than a calendar month for which a payment or compensation is ordinarily
made to the employee by the employer.

Sec. 3.

Minnesota Statutes 2016, section 268.051, subdivision 2a, is amended to read:


Subd. 2a.

Unemployment insurance tax limits reduction.

(a) If the balance in the trust
fund on December 31 of any calendar year is four percent or more above the amount equal
to an average high cost multiple of 1.0, future unemployment taxes payable must be reduced
by all amounts above 1.0. The amount of tax reduction for any taxpaying employer is the
same percentage of the total amount above 1.0 as the percentage of taxes paid by the
employer during the calendar year is of the total amount of taxes that were paid by all
nonmaximum experience rated employers during the year except taxes paid by employers
assigned a tax rate equal to the maximum experience rating plus the applicable base tax
rate
.

(b) For purposes of this subdivision, "average high cost multiple" has the meaning given
in Code of Federal Regulations, title 20, section 606.3, as amended through December 31,
2015. An amount equal to an average high cost multiple of 1.0 is a federal measure of
adequate reserves in relation to the state's current economy. The commissioner must calculate
and publish, as soon as possible following December 31 of any calendar year, the trust fund
balance on December 31 along with the amount an average high cost multiple of 1.0 equals.
Actual wages paid must be used in the calculation and estimates may not be used.

(c) The unemployment tax reduction under this subdivision does not apply to employers
that were at assigned a tax rate equal to the maximum experience rating plus the applicable
base tax rate
for the year, nor to high experience rating industry employers under subdivision
5, paragraph (b)
. Computations under paragraph (a) are not subject to the rounding
requirement of section 268.034. The refund provisions of section 268.057, subdivision 7,
do not apply.

(d) The unemployment tax reduction under this subdivision applies to taxes paid payable
between March 1 and December 15 of the year following the December 31 computation
under paragraph (a).

(e) The amount equal to the average high cost multiple of 1.0 on December 31, 2012,
must be used for the calculation under paragraph (a) but only for the calculation made on
December 31, 2015. Notwithstanding paragraph (d), the tax reduction resulting from the
application of this paragraph applies to unemployment taxes paid between July 1, 2016,
and June 30, 2017.
If there was an experience rating history transfer under subdivision 4,
the successor employer must receive that portion of the predecessor employer's tax reduction
equal to that portion of the experience rating history transferred. The predecessor employer
retains that portion of tax reduction not transferred to the successor. This paragraph applies
to that portion of the tax reduction that remains unused at the time notice of acquisition is
provided under subdivision 4, paragraph (e).

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 4. ADDITIONAL UNEMPLOYMENT BENEFITS PROGRAM FOR WORKERS
LAID OFF FROM INTERNATIONAL BILDRITE, INC.

Subdivision 1.

Availability of additional benefits.

Additional unemployment benefits
are available from the Minnesota unemployment insurance trust fund to an applicant who
was laid off due to lack of work between December 1, 2017, and June 30, 2018, at
International Bildrite, Inc. facilities in International Falls.

Subd. 2.

Eligibility requirements.

An applicant is eligible to receive additional
unemployment benefits under this section for any week beginning April 1, 2018, through
the week ending June 1, 2019, if:

(1) the applicant established a benefit account under Minnesota Statutes, section 268.07,
with a majority of the wage credits from International Bildrite, Inc., and has exhausted the
maximum amount of regular unemployment benefits available on that benefit account; and

(2) the applicant meets the same requirements that an applicant for regular unemployment
benefits must meet under Minnesota Statutes, section 268.069, subdivision 1.

Subd. 3.

Weekly and maximum amount of additional unemployment benefits.

(a)
The weekly benefit amount of additional unemployment benefits is the same as the weekly
benefit amount of regular unemployment benefits on the benefit account established in
subdivision 2, clause (1).

(b) The maximum amount of additional unemployment benefits available to an applicant
under this section is an amount equal to 13 weeks of payment at the applicant's weekly
additional unemployment benefit amount.

(c) If an applicant qualifies for a new regular benefit account that meets the requirements
of subdivision 4, paragraph (b), before the applicant has been paid additional unemployment
benefits, and that new regular benefit account meets the requirements of subdivision 2,
clause (1), the applicant's weekly additional unemployment benefit amount is equal to the
weekly unemployment benefit amount on the applicant's new regular benefit account.

Subd. 4.

Qualifying for a new regular benefit account.

(a) If after exhausting the
maximum amount of regular unemployment benefits available as a result of the layoff under
subdivision 1, an applicant qualifies for the new regular benefit account under Minnesota
Statutes, section 268.07, the applicant must apply for and establish that new regular benefit
account.

(b) If the applicant's weekly benefit amount under the new regular benefit account is
equal to or higher than the applicant's weekly additional unemployment benefit amount, the
applicant must request unemployment benefits under the new regular benefit account. An
applicant is ineligible for additional unemployment benefits under this section until the
applicant has exhausted the maximum amount of unemployment benefits available on the
new regular benefit account.

(c) If the applicant's weekly unemployment benefit amount on the new regular benefit
account is less than the applicant's weekly benefit amount of additional unemployment
benefits, the applicant must request additional unemployment benefits. An applicant is
ineligible for new regular unemployment benefits until the applicant has exhausted the
maximum amount of additional unemployment benefits available under this section.

Subd. 5.

Charging of benefits.

Additional unemployment benefits paid under this section
must be used to compute the future unemployment tax rate of a taxpaying employer or
charged to the reimbursing account of government or nonprofit employers.

Subd. 6.

Eligibility for federal Trade Readjustment Allowance benefits.

An applicant
who has applied and been determined eligible for federal Trade Readjustment Allowance
benefits is not eligible for extended unemployment benefits under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5. EFFECTIVE DATE.

Unless otherwise specified, this article is effective September 16, 2018.

ARTICLE 15

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; INTEREST

Section 1.

Minnesota Statutes 2016, section 268.057, subdivision 5, is amended to read:


Subd. 5.

Interest on amounts past due.

If any amounts due from an employer under
this chapter or section 116L.20, except late fees under section 268.044, are not received on
the date due the unpaid balance bears the commissioner must assess interest on any amount
that remains unpaid.
Interest is assessed at the rate of one percent per month or any part of
a month. Interest is not assessed on unpaid interest. Interest collected under this subdivision
is credited to the contingent account.

EFFECTIVE DATE.

This section is effective October 1, 2019.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 268.18, subdivision 2b, is amended
to read:


Subd. 2b.

Interest.

On any unemployment benefits obtained by misrepresentation, and
any penalty amounts assessed under subdivision 2, the commissioner must assess interest
at the rate of one percent per month on any amount that remains unpaid beginning 30 calendar
days after the date of a determination of overpayment penalty. Interest is assessed at the
rate of one percent per month or any part of a month.
A determination of overpayment
penalty must state that interest will be assessed. Interest is not assessed in the same manner
as on employer debt under section 268.057, subdivision 5
on unpaid interest. Interest
payments collected under this subdivision are is credited to the trust fund.

EFFECTIVE DATE.

This section is effective October 1, 2019.

Sec. 3. EFFECTIVE DATE.

Unless otherwise specified, this article is effective September 16, 2018.

ARTICLE 16

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; BASE PERIODS

Section 1.

Minnesota Statutes 2016, section 268.035, subdivision 4, is amended to read:


Subd. 4.

Base period.

(a) "Base period," unless otherwise provided in this subdivision,
means the most recent four completed calendar quarters before the effective date of an
applicant's application for unemployment benefits if the application has an effective date
occurring after the month following the most recent completed calendar quarter. The base
period under this paragraph is as follows:

If the application for unemployment
benefits is effective on or between these
dates:
The base period is the prior:
February 1 - March 31
January 1 - December 31
May 1 - June 30
April 1 - March 31
August 1 - September 30
July 1 - June 30
November 1 - December 31
October 1 - September 30

(b) If an application for unemployment benefits has an effective date that is during the
month following the most recent completed calendar quarter, then the base period is the
first four of the most recent five completed calendar quarters before the effective date of
an applicant's application for unemployment benefits. The base period under this paragraph
is as follows:

If the application for unemployment
benefits is effective on or between these
dates:
The base period is the prior:
January 1 - January 31
October 1 - September 30
April 1 - April 30
January 1 - December 31
July 1 - July 31
April 1 - March 31
October 1 - October 31
July 1 - June 30

(c) Regardless of paragraph (a), a base period of the first four of the most recent five
completed calendar quarters must be used if the applicant would have more wage credits
under that base period than under a base period of the four most recent completed calendar
quarters.

(d) If the applicant under paragraph (b) has insufficient wage credits to establish a benefit
account, then a base period of the most recent four completed calendar quarters before the
effective date of the applicant's application for unemployment benefits must be used.

(e) (d) If the applicant has insufficient wage credits to establish a benefit account under
a base period of the four most recent completed calendar quarters, or a base period of the
first four of the most recent five completed calendar quarters, but during either base period
the applicant received workers' compensation for temporary disability under chapter 176
or a similar federal law or similar law of another state, or if the applicant whose own serious
illness caused a loss of work for which the applicant received compensation for loss of
wages from some other source, the applicant may request a base period as follows:

(1) if an applicant was compensated for a loss of work of seven to 13 weeks, during a
base period referred to in paragraph (a) or (b), then
the base period is the first four of the
most recent six completed calendar quarters before the effective date of the application for
unemployment benefits;

(2) if an applicant was compensated for a loss of work of 14 to 26 weeks, during a base
period referred to in paragraph (a) or (b), then
the base period is the first four of the most
recent seven completed calendar quarters before the effective date of the application for
unemployment benefits;

(3) if an applicant was compensated for a loss of work of 27 to 39 weeks, during a base
period referred to in paragraph (a) or (b), then
the base period is the first four of the most
recent eight completed calendar quarters before the effective date of the application for
unemployment benefits; and

(4) if an applicant was compensated for a loss of work of 40 to 52 weeks, during a base
period referred to in paragraph (a) or (b), then
the base period is the first four of the most
recent nine completed calendar quarters before the effective date of the application for
unemployment benefits.

(f) (e) No base period under this subdivision may include wage credits upon which a
prior benefit account was established.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 268.07, subdivision 1, is amended
to read:


Subdivision 1.

Application for unemployment benefits; determination of benefit
account.

(a) An application for unemployment benefits may be filed in person, by mail, or
by electronic transmission as the commissioner may require. The applicant must be
unemployed at the time the application is filed and must provide all requested information
in the manner required. If the applicant is not unemployed at the time of the application or
fails to provide all requested information, the communication is not an application for
unemployment benefits.

(b) The commissioner must examine each application for unemployment benefits to
determine the base period and the benefit year, and based upon all the covered employment
in the base period the commissioner must determine the weekly unemployment benefit
amount available, if any, and the maximum amount of unemployment benefits available,
if any. The determination, which is a document separate and distinct from a document titled
a determination of eligibility or determination of ineligibility issued under section 268.101,
must be titled determination of benefit account. A determination of benefit account must
be sent to the applicant and all base period employers, by mail or electronic transmission.

(c) If a base period employer did not provide wage detail information for the applicant
as required under section 268.044, or provided erroneous information, or wage detail is not
yet due and the applicant is using a base period under section 268.035, subdivision 4,
paragraph (d),
the commissioner may accept an applicant certification of wage credits, based
upon the applicant's records, and issue a determination of benefit account.

(d) An employer must provide wage detail information on an applicant within five
calendar days of request by the commissioner, in a manner and format requested, when:

(1) the applicant is using a base period under section 268.035, subdivision 4, paragraph
(d); and

(2) wage detail under section 268.044 is not yet required to have been filed by the
employer.

(e) (d) The commissioner may, at any time within 24 months from the establishment of
a benefit account, reconsider any determination of benefit account and make an amended
determination if the commissioner finds that the wage credits listed in the determination
were incorrect for any reason. An amended determination of benefit account must be
promptly sent to the applicant and all base period employers, by mail or electronic
transmission. This subdivision does not apply to documents titled determinations of eligibility
or determinations of ineligibility issued under section 268.101.

(f) (e) If an amended determination of benefit account reduces the weekly unemployment
benefit amount or maximum amount of unemployment benefits available, any unemployment
benefits that have been paid greater than the applicant was entitled is an overpayment of
unemployment benefits. A determination or amended determination issued under this section
that results in an overpayment of unemployment benefits must set out the amount of the
overpayment and the requirement under section 268.18, subdivision 1, that the overpaid
unemployment benefits must be repaid.

Sec. 3. EFFECTIVE DATE.

Unless otherwise specified, this article is effective September 16, 2018.

ARTICLE 17

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; HOUSEKEEPING

Section 1.

Minnesota Statutes 2017 Supplement, section 268.035, subdivision 15, is
amended to read:


Subd. 15.

Employment.

(a) "Employment" means service performed by:

(1) an individual who is an employee under the common law of employer-employee and
not an independent contractor;

(2) an officer of a corporation;

(3) a member of a limited liability company who is an employee under the common law
of employer-employee; or

(4) an individual who is an employee under the Federal Insurance Contributions Act,
United States Code, title 26, chapter 21, sections 3121 (d)(3)(A) and 3121 (d)(3)(D); or

(4) (5) product demonstrators in retail stores or other locations to aid in the sale of
products. The person that pays the wages is the employer.

(b) Employment does not include service as a juror.

(c) Construction industry employment is defined in subdivision 9a. Trucking and
messenger/courier industry employment is defined in subdivision 25b. Rules on determining
worker employment status are described under Minnesota Rules, chapter 3315.

Sec. 2.

Minnesota Statutes 2016, section 268.044, subdivision 2, is amended to read:


Subd. 2.

Failure to timely file report; late fees.

(a) Any employer that fails to submit
the quarterly wage detail report when due must pay a late fee of $10 per employee, computed
based upon the highest of:

(1) the number of employees reported on the last wage detail report submitted;

(2) the number of employees reported in the corresponding quarter of the prior calendar
year; or

(3) if no wage detail report has ever been submitted, the number of employees listed at
the time of employer registration.

The late fee is canceled if the wage detail report is received within 30 calendar days
after a demand for the report is sent to the employer by mail or electronic transmission. A
late fee assessed an employer may not be canceled more than twice each 12 months. The
amount of the late fee assessed may not be less than $250.

(b) If the wage detail report is not received in a manner and format prescribed by the
commissioner within 30 calendar days after demand is sent under paragraph (a), the late
fee assessed under paragraph (a) doubles and a renewed demand notice and notice of the
increased late fee will be sent to the employer by mail or electronic transmission.

(c) Late fees due under this subdivision may be canceled, in whole or in part, under
section 268.066 where good cause for late submission is found by the commissioner 268.067.

Sec. 3.

Minnesota Statutes 2016, section 268.047, subdivision 3, is amended to read:


Subd. 3.

Exceptions for taxpaying employers.

Unemployment benefits paid will not
be used in computing the future tax rate of a taxpaying base period employer when:

(1) the applicant's wage credits from that employer are less than $500;

(2) the applicant quit the employment, unless it was determined under section 268.095,
to have been because of a good reason caused by the employer or because the employer
notified the applicant of discharge within 30 calendar days. This exception applies only to
unemployment benefits paid for periods after the applicant's quitting the employment and,
if the applicant is rehired by the employer, continues only until the beginning of the week
the applicant is rehired
; or

(3) the employer discharged the applicant from employment because of employment
misconduct as determined under section 268.095. This exception applies only to
unemployment benefits paid for periods after the applicant's discharge from employment
and, if the applicant is rehired by the employer, continues only until the beginning of the
week the applicant is rehired
.

EFFECTIVE DATE.

This section is effective October 1, 2019.

Sec. 4.

Minnesota Statutes 2016, section 268.059, is amended to read:


268.059 GARNISHMENT FOR DELINQUENT TAXES AND UNEMPLOYMENT
BENEFIT OVERPAYMENTS.

Subdivision 1.

Notice Authority.

The commissioner may give notice to any employer
that an employee owes any amounts due under this chapter or section 116L.20, and that the
obligation should be withheld from the employee's wages. The commissioner may proceed
only if the amount due is uncontested or if the time for any appeal has expired.
The
commissioner may garnish an employee's wages to collect amounts due under this chapter
or section 116L.20, as set forth in this section. Chapter 571 does not apply, except as
referenced in this section.

Subd. 1a.

Notice.

The commissioner may not proceed with a garnishment until 30
calendar days after sending to the debtor employee, by mail or electronic transmission, a
notice of intent to garnish wages and exemption notice. That notice must list include:

(1) the amount due from the debtor;

(2) demand for immediate payment; and

(3) the intention to serve a garnishment notice on the debtor's employer.

The notice expires 180 calendar days after it has been sent to the debtor provided that
the notice may be renewed by sending a new notice that is in accordance with this section.
The renewed notice has the effect of reinstating the priority of the original notice. The
exemption notice must be in substantially the same form as in section 571.72.
The exemption
notice must inform the debtor of the right to claim exemptions contained in section 550.37,
subdivision 14
. If no claim of exemption is received by the commissioner within 30 calendar
days after sending of the notice, the commissioner may proceed with the garnishment. The
notice to the debtor's employer may be served by mail or electronic transmission and must
be in substantially the same form as in section 571.75.

Subd. 2.

Employer action.

(a) Thirty calendar days after sending the notice of intent to
garnish, the commissioner may send to the debtor's employer, by mail or electronic
transmission, a notice of garnishment, including a worksheet for determining the amount
to be withheld from wages each pay period. The amount to be withheld from wages is
subject to the limitations in section 571.922.
Upon receipt of the garnishment notice, the
employer must withhold from the earnings wages due or to become due to the employee,
the amount shown on the notice plus accrued interest, subject to section 571.922 determined
by the employer plus accrued interest
. The employer must continue to withhold each pay
period the amount shown on the notice determined by the employer plus accrued interest
until the garnishment notice is released by the commissioner. Upon receipt of notice by the
employer, the claim of the commissioner has priority over any subsequent garnishments or
wage assignments. The commissioner may arrange between the employer and employee
for withholding a portion of the total amount due the employee each pay period,
agree to
accept a withholding amount that is less than the amount determined by the employer on
the worksheet
until the total amount shown on the notice due plus accrued interest has been
withheld.

(b) The "earnings due" any employee For the purposes of this section, "wages" is as
defined in section 571.921 268.035, subdivision 29.

(b) (c) The maximum garnishment allowed for any one pay period must be decreased
by any amounts payable under any other garnishment action served before the garnishment
notice, and any amounts covered by any irrevocable and previously effective assignment
of wages;. The employer must give notice to the commissioner of the amounts and the facts
relating to the other garnishment or assignment within ten calendar days after the service
of the garnishment notice
on the form worksheet provided by the commissioner.

(c) (d) Within ten calendar days after the expiration of the pay period, the employer must
remit to the commissioner, on a form and in the manner prescribed by the commissioner,
the amount withheld during each pay period.

Subd. 3.

Discharge or discipline prohibited.

(a) If the employee ceases to be employed
by the employer before the full amount set forth on the garnishment notice due plus accrued
interest has been withheld, the employer must immediately notify the commissioner in
writing or by electronic transmission, as prescribed by the commissioner, of the termination
date of the employee and the total amount withheld. No employer may discharge or discipline
any employee because the commissioner has proceeded under this section. If an employer
discharges an employee in violation of this section, the employee has the same remedy as
provided in section 571.927, subdivision 2.

(b) This section applies if the employer is the state of Minnesota or any political
subdivision.

(c) The commissioner must refund to the employee any excess amounts withheld from
the employee.

(d) An employer that fails or refuses to comply with this section is jointly and severally
liable for the total amount due from the employee. Any amount due from the employer
under this paragraph may be collected in the same manner as any other amounts due from
an employer under this chapter.

Sec. 5.

Minnesota Statutes 2016, section 268.085, subdivision 3, is amended to read:


Subd. 3.

Vacation and sick payments that delay unemployment benefits.

(a) An
applicant is not eligible to receive unemployment benefits for any week the applicant is
receiving, has received, or will receive vacation pay, sick pay, or personal time off pay, also
known as "PTO."

This paragraph only applies upon temporary, indefinite, or seasonal separation and does
not apply:

(1) upon a permanent separation from employment; or

(2) to payments from a vacation fund administered by a union or a third party not under
the control of the employer.

Payments under this paragraph subdivision are applied to the period immediately
following the temporary, indefinite, or seasonal separation. later of the date of separation
from employment or the date the applicant first becomes aware that the employer will be
making a payment. The date the payment is actually made or received, or that an applicant
must agree to a release of claims, does not affect the application of this paragraph.

(b) This subdivision applies to all the weeks of payment. The weeks of payment is
determined as follows:

(1) if the payments are made periodically, the total of the payments to be received is
divided by the applicant's last level of regular weekly pay from the employer; or

(2) if the payment is made in a lump sum, that sum is divided by the applicant's last level
of regular weekly pay from the employer.

The "last level of regular weekly pay" includes commissions, bonuses, and overtime
pay if that is part of the applicant's ongoing regular compensation.

(c) Under this subdivision, if the payment with respect to a week is equal to or more
than the applicant's weekly unemployment benefit amount, the applicant is ineligible for
benefits for that week. If the payment with respect to a week is less than the applicant's
weekly unemployment benefit amount, unemployment benefits are reduced by the amount
of the payment.

(b) (d) An applicant is not eligible to receive unemployment benefits for any week the
applicant is receiving, has received, or will receive severance pay, bonus pay, or any other
payments paid by an employer because of, upon, or after separation from employment.

This paragraph only applies if the payment is:

(1) considered wages under section 268.035, subdivision 29; or

(2) subject to the Federal Insurance Contributions Act (FICA) tax imposed to fund Social
Security and Medicare.

Payments under this paragraph are applied to the period immediately following the later
of the date of separation from employment or the date the applicant first becomes aware
that the employer will be making a payment. The date the payment is actually made or
received, or that an applicant must agree to a release of claims, does not affect the application
of this paragraph.

This paragraph does not apply to earnings under subdivision 5, back pay under
subdivision 6, or vacation pay, sick pay, or personal time off pay under paragraph (a).

(e) Paragraph (a) applies to all the weeks of payment. The weeks of payment is determined
in accordance with subdivision 3, paragraph (b).

(f) Under this subdivision, if the payment with respect to a week is equal to or more than
the applicant's weekly unemployment benefit amount, the applicant is ineligible for benefits
for that week. If the payment with respect to a week is less than the applicant's weekly
unemployment benefit amount, unemployment benefits are reduced by the amount of the
payment.

(c) (g) An applicant is not eligible to receive unemployment benefits for any week the
applicant is receiving, has received, will receive, or has applied for pension, retirement, or
annuity payments from any plan contributed to by a base period employer including the
United States government. The base period employer is considered to have contributed to
the plan if the contribution is excluded from the definition of wages under section 268.035,
subdivision 29
. If the pension, retirement, or annuity payment is paid in a lump sum, an
applicant is not considered to have received a payment if:

(1) the applicant immediately deposits that payment in a qualified pension plan or
account; or

(2) that payment is an early distribution for which the applicant paid an early distribution
penalty under the Internal Revenue Code, United States Code, title 26, section 72(t)(1).

This paragraph does not apply to Social Security benefits under subdivision 4 or 4a.

(d) (h) This subdivision applies to all the weeks of payment. The number of weeks of
payment is determined as follows:

(1) if the payments are made periodically, the total of the payments to be received is
divided by the applicant's last level of regular weekly pay from the employer; or

(2) If the payment is made in a lump sum, that sum is divided by the applicant's last
level of regular weekly pay from the employer to determine the weeks of payment.

For purposes of this paragraph subdivision, the "last level of regular weekly pay" includes
commissions, bonuses, and overtime pay if that is part of the applicant's ongoing regular
compensation.

(e) (i) Under this subdivision, if the payment with respect to a week is equal to or more
than the applicant's weekly unemployment benefit amount, the applicant is ineligible for
benefits for that week. If the payment with respect to a week is less than the applicant's
weekly unemployment benefit amount, unemployment benefits are reduced by the amount
of the payment.

Sec. 6.

Minnesota Statutes 2016, section 268.085, subdivision 3a, is amended to read:


Subd. 3a.

Workers' compensation and disability insurance offset.

(a) An applicant
is not eligible to receive unemployment benefits for any week in which the applicant is
receiving or has received compensation for loss of wages equal to or in excess of the
applicant's weekly unemployment benefit amount under:

(1) the workers' compensation law of this state;

(2) the workers' compensation law of any other state or similar federal law; or

(3) any insurance or trust fund paid in whole or in part by an employer.

(b) This subdivision does not apply to an applicant who has a claim pending for loss of
wages under paragraph (a); however, before unemployment benefits may be paid when a
claim is pending, the issue of the applicant being available for suitable employment, as
required under subdivision 1, clause (4), is must be determined under section 268.101,
subdivision 2
. If the applicant later receives compensation as a result of the pending claim,
the applicant is subject to the provisions of paragraph (a) and the unemployment benefits
paid are subject to recoupment by the commissioner to the extent that the compensation
constitutes
overpaid unemployment benefits under section 268.18, subdivision 1.

(c) If the amount of compensation described under paragraph (a) for any week is less
than the applicant's weekly unemployment benefit amount, unemployment benefits requested
for that week are reduced by the amount of that compensation payment.

Sec. 7.

Minnesota Statutes 2017 Supplement, section 268.085, subdivision 13a, is amended
to read:


Subd. 13a.

Leave of absence.

(a) An applicant on a voluntary leave of absence is
ineligible for unemployment benefits for the duration of the leave of absence. An applicant
on an involuntary leave of absence is not ineligible under this subdivision.

A leave of absence is voluntary when work that the applicant can then perform is available
with the applicant's employer but the applicant chooses not to work. A medical leave of
absence is not presumed to be voluntary.

(b) A period of vacation requested by the applicant, paid or unpaid, is a voluntary leave
of absence. A vacation period assigned by an employer under: (1) a uniform vacation
shutdown; (2) a collective bargaining agreement; or (3) an established employer policy, is
an involuntary leave of absence.

(c) A leave of absence is a temporary stopping of work that has been approved by the
employer. A voluntary leave of absence is not a quit and an involuntary leave of absence
is not or a discharge from employment for purposes of. Section 268.095 does not apply to
a leave of absence
.

(d) An applicant who is on a paid leave of absence, whether the leave of absence is
voluntary or involuntary, is ineligible for unemployment benefits for the duration of the
leave.

(e) This subdivision applies to a leave of absence from a base period employer, an
employer during the period between the end of the base period and the effective date of the
benefit account, or an employer during the benefit year.

Sec. 8.

Minnesota Statutes 2017 Supplement, section 268.095, subdivision 6, is amended
to read:


Subd. 6.

Employment misconduct defined.

(a) Employment misconduct means any
intentional, negligent, or indifferent conduct, on the job or off the job, that displays clearly:

(1) is a serious violation of the standards of behavior the employer has the right to
reasonably expect of the employee; or.

(2) a substantial lack of concern for the employment.

(b) Regardless of paragraph (a), the following is not employment misconduct:

(1) conduct that was a consequence of the applicant's mental illness or impairment;

(2) conduct that was a consequence of the applicant's inefficiency or inadvertence;

(3) simple unsatisfactory conduct;

(4) conduct an average reasonable employee would have engaged in under the
circumstances;

(5) conduct that was a consequence of the applicant's inability or incapacity;

(6) good faith errors in judgment if judgment was required;

(7) absence because of illness or injury of the applicant, with proper notice to the
employer;

(8) absence, with proper notice to the employer, in order to provide necessary care
because of the illness, injury, or disability of an immediate family member of the applicant;

(9) conduct that was a consequence of the applicant's chemical dependency, unless the
applicant was previously diagnosed chemically dependent or had treatment for chemical
dependency, and since that diagnosis or treatment has failed to make consistent efforts to
control the chemical dependency; or

(10) conduct that was a consequence of the applicant, or an immediate family member
of the applicant, being a victim of domestic abuse, sexual assault, or stalking. For the
purposes of this subdivision, "domestic abuse," "sexual assault," and "stalking" have the
meanings given them in subdivision 1.

(c) Regardless of paragraph (b), clause (9), conduct in violation of sections 169A.20,
169A.31, 169A.50 to 169A.53, or 171.177 that interferes with or adversely affects the
employment is employment misconduct.

(d) If the conduct for which the applicant was discharged involved only a single incident,
that is an important fact that must be considered in deciding whether the conduct rises to
the level of employment misconduct under paragraph (a). This paragraph does not require
that a determination under section 268.101 or decision under section 268.105 contain a
specific acknowledgment or explanation that this paragraph was considered.

(e) The definition of employment misconduct provided by this subdivision is exclusive
and no other definition applies.

Sec. 9.

Minnesota Statutes 2016, section 268.095, subdivision 6a, is amended to read:


Subd. 6a.

Aggravated employment misconduct defined.

(a) For the purpose of this
section, "aggravated employment misconduct" means:

(1) The commission of any act, on the job or off the job, that would amount to a gross
misdemeanor or felony is aggravated employment misconduct if the act substantially
interfered with the employment or
had a significant adverse effect on the employment; or.

A criminal charge or conviction is not necessary to determine aggravated employment
misconduct under this paragraph. If an applicant is convicted of a gross misdemeanor or
felony, the applicant is presumed to have committed the act.

(2) (b) For an employee of a facility as defined in section 626.5572, aggravated
employment misconduct includes an act of patient or resident abuse, financial exploitation,
or recurring or serious neglect, as defined in section 626.5572 and applicable rules.

(b) If an applicant is convicted of a gross misdemeanor or felony for the same act for
which the applicant was discharged, it is aggravated employment misconduct if the act
substantially interfered with the employment or had a significant adverse effect on the
employment.

(c) The definition of aggravated employment misconduct provided by this subdivision
is exclusive and no other definition applies.

Sec. 10. EFFECTIVE DATE.

Unless otherwise specified, this article is effective September 16, 2018.

ARTICLE 18

UNEMPLOYMENT INSURANCE ADVISORY COUNCIL; TECHNICAL

Section 1.

Minnesota Statutes 2016, section 268.044, subdivision 3, is amended to read:


Subd. 3.

Missing or erroneous information.

(a) Any employer that submits the wage
detail report, but fails to include all required employee information or enters erroneous
information, is subject to an administrative service fee of $25 for each employee for whom
the information is partially missing or erroneous.

(b) Any employer that submits the wage detail report, but fails to include an employee,
is subject to an administrative service fee equal to two percent of the total wages for each
employee for whom the information is completely missing.

(c) An administrative service fee under this subdivision must be canceled under section
268.067
if the commissioner determines that the failure or error by the employer occurred
because of ignorance or inadvertence.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 268.046, subdivision 1, is amended
to read:


Subdivision 1.

Tax accounts assigned.

(a) Any person that contracts with a taxpaying
employer to have that person obtain the taxpaying employer's workforce and provide workers
to the taxpaying employer for a fee is, as of the effective date of the contract, assigned for
the duration of the contract the taxpaying employer's account under section 268.045. That
tax account must be maintained by the person separate and distinct from every other tax
account held by the person and identified in a manner prescribed by the commissioner. The
tax account is, for the duration of the contract, considered that person's account for all
purposes of this chapter. The workers obtained from the taxpaying employer and any other
workers provided by that person to the taxpaying employer, including officers of the
taxpaying employer as defined in section 268.035, subdivision 20, clause (28) (29), whose
wages paid by the person are considered paid in covered employment under section 268.035,
subdivision 24
, for the duration of the contract between the taxpaying employer and the
person, must, under section 268.044, be reported on the wage detail report under that tax
account, and that person must pay any taxes due at the tax rate computed for that account
under section 268.051, subdivision 2.

(b) Any workers of the taxpaying employer who are not covered by the contract under
paragraph (a) must be reported by the taxpaying employer as a separate unit on the wage
detail report under the tax account assigned under paragraph (a). Taxes and any other
amounts due on the wages reported by the taxpaying employer under this paragraph may
be paid directly by the taxpaying employer.

(c) If the taxpaying employer that contracts with a person under paragraph (a) does not
have a tax account at the time of the execution of the contract, an account must be registered
for the taxpaying employer under section 268.042 and the new employer tax rate under
section 268.051, subdivision 5, must be assigned. The tax account is then assigned to the
person as provided for in paragraph (a).

(d) A person that contracts with a taxpaying employer under paragraph (a) must, within
30 calendar days of the execution or termination of a contract, notify the commissioner by
electronic transmission, in a format prescribed by the commissioner, of that execution or
termination. The taxpaying employer's name, the account number assigned, and any other
information required by the commissioner must be provided by that person.

(e) Any contract subject to paragraph (a) must specifically inform the taxpaying employer
of the assignment of the tax account under this section and the taxpaying employer's
obligation under paragraph (b). If there is a termination of the contract, the tax account is,
as of the date of termination, immediately assigned to the taxpaying employer.

Sec. 3.

Minnesota Statutes 2016, section 268.051, subdivision 3, is amended to read:


Subd. 3.

Computation of a taxpaying employer's experience rating.

(a) On or before
each December 15, the commissioner must compute an experience rating for each taxpaying
employer who has been required to file filed wage detail reports for the 12 four calendar
months quarters ending on the prior June 30. The experience rating computed is applicable
for the following calendar year.

The experience rating is the ratio obtained by dividing 125 percent of the total
unemployment benefits required under section 268.047 to be used in computing the
employer's tax rate during the 48 16 calendar months quarters ending on the prior June 30,
by the employer's total taxable payroll for that same period.

(b) The experience rating is computed to the nearest one-hundredth of a percent, to a
maximum of 8.90 percent.

(c) The use of 125 percent of unemployment benefits paid under paragraph (a), rather
than 100 percent of the amount of unemployment benefits paid, is done in order for the trust
fund to recover from all taxpaying employers a portion of the costs of unemployment benefits
paid that do not affect any individual employer's future experience rating because of the
reasons set out in subdivision 2, paragraph (f).

Sec. 4.

Minnesota Statutes 2016, section 268.053, subdivision 1, is amended to read:


Subdivision 1.

Election.

(a) Any nonprofit organization that has employees in covered
employment must pay taxes on a quarterly basis in accordance with section 268.051 unless
it elects to make reimbursements to the trust fund the amount of unemployment benefits
charged to its reimbursable account under section 268.047.

The organization may elect to make reimbursements for a period of not less than 24
calendar months beginning with the date that the organization was determined to be an
employer with covered employment by filing a notice of election not later than 30 calendar
days after the date of the determination.

(b) Any nonprofit organization that makes an election will continue to be liable for
reimbursements until it files a notice terminating its election before the beginning of the
calendar quarter the termination is to be effective.

A nonprofit organization that has been making reimbursements that files a notice of
termination of election must be assigned the new employer tax rate under section 268.051,
subdivision 5
, until it qualifies for an experience rating under section 268.051, subdivision
3
.

(c) Any nonprofit organization that has been paying taxes may elect to make
reimbursements by filing a notice of election. The election is effective at the beginning of
the next calendar quarter. The election is not terminable by the organization for 24 calendar
months.

(d) The commissioner may for good cause extend the period that a notice of election,
or a notice of termination, must be filed and may permit an election to be retroactive.

(e) (d) A notice of election or notice terminating election must be filed by electronic
transmission in a format prescribed by the commissioner.

Sec. 5.

Minnesota Statutes 2016, section 268.066, is amended to read:


268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.

(a) The commissioner must cancel as uncollectible any amounts due from an employer
under this chapter or section 116L.20, that remain unpaid six years after the amounts have
been first determined due, except where the delinquent amounts are secured by a notice of
lien, a judgment, are in the process of garnishment, or are under a payment plan.

(b) The commissioner may cancel at any time as uncollectible any amount due, or any
portion of an amount due, from an employer under this chapter or section 116L.20, that (1)
are uncollectible due to death or bankruptcy, or (2) the Collection Division of the Department
of Revenue under section 16D.04 was unable to collect.

(c) The commissioner may cancel at any time any interest, penalties, or fees due from
an employer, or any portions due, if the commissioner determines that it is not in the public
interest to pursue collection of the amount due. This paragraph does not apply to
unemployment insurance taxes or reimbursements due.

Sec. 6.

Minnesota Statutes 2016, section 268.067, is amended to read:


268.067 COMPROMISE.

(a) The commissioner may compromise in whole or in part any action, determination,
or decision that affects only an employer and not an applicant. This paragraph applies if it
is determined by a court of law, or a confession of judgment, that an applicant, while
employed, wrongfully took from the employer $500 or more in money or property.

(b) The commissioner may at any time compromise any unemployment insurance tax
or, reimbursement, interest, penalty, fee, costs, or any other amount due from an employer
under this chapter or section 116L.20.

(c) Any compromise involving an amount over $10,000 must be authorized by an attorney
licensed to practice law in Minnesota who is an employee of the department designated by
the commissioner for that purpose.

(d) Any compromise must be in the best interest of the state of Minnesota.

Sec. 7.

Minnesota Statutes 2016, section 268.069, subdivision 1, is amended to read:


Subdivision 1.

Requirements.

The commissioner must pay unemployment benefits
from the trust fund to an applicant who has met each of the following requirements:

(1) the applicant has filed an application for unemployment benefits and established a
benefit account in accordance with section 268.07;

(2) the applicant has not been held ineligible for unemployment benefits under section
268.095 because of a quit or discharge;

(3) the applicant has met all of the ongoing eligibility requirements under section 268.085;

(4) the applicant does not have an outstanding overpayment of unemployment benefits,
including any penalties or interest; and

(5) the applicant has not been held ineligible for unemployment benefits under section
268.182 because of a false representation or concealment of facts 268.183.

Sec. 8.

Minnesota Statutes 2016, section 268.105, subdivision 6, is amended to read:


Subd. 6.

Representation; fees.

(a) In any proceeding under subdivision 1 or 2, an
applicant or employer may be represented by any authorized representative.

Except for services provided by an attorney-at-law, no person may charge an applicant
a fee of any kind for advising, assisting, or representing an applicant in a hearing or, on
reconsideration, or in a proceeding under subdivision 7.

(b) An applicant may not be charged fees, costs, or disbursements of any kind in a
proceeding before an unemployment law judge, the Minnesota Court of Appeals, or the
Supreme Court of Minnesota.

(c) No attorney fees may be awarded, or costs or disbursements assessed, against the
department as a result of any proceedings under this section.

Sec. 9.

Minnesota Statutes 2016, section 268.145, subdivision 1, is amended to read:


Subdivision 1.

Notification.

(a) Upon filing an application for unemployment benefits,
the applicant must be informed that:

(1) unemployment benefits are subject to federal and state income tax;

(2) there are requirements for filing estimated tax payments;

(3) the applicant may elect to have federal income tax withheld from unemployment
benefits;

(4) if the applicant elects to have federal income tax withheld, the applicant may, in
addition, elect to have Minnesota state income tax withheld; and

(5) at any time during the benefit year the applicant may change a prior election.

(b) If an applicant elects to have federal income tax withheld, the commissioner must
deduct ten percent for federal income tax. If an applicant also elects to have Minnesota state
income tax withheld, the commissioner must make an additional five percent deduction for
state income tax. Any amounts amount deducted or offset under sections 268.155, 268.18,
and 268.184 have
section 268.085 has priority over any amounts deducted under this section.
Federal income tax withholding has priority over state income tax withholding.

(c) An election to have income tax withheld may not be retroactive and only applies to
unemployment benefits paid after the election.

Sec. 10.

Minnesota Statutes 2017 Supplement, section 268.18, subdivision 5, is amended
to read:


Subd. 5.

Remedies.

(a) Any method undertaken to recover an overpayment of
unemployment benefits, including any penalties and interest, is not an election of a method
of recovery.

(b) Intervention or lack thereof, in whole or in part, in a workers' compensation matter
under section 176.361 is not an election of a remedy and does not prevent the commissioner
from determining an applicant ineligible for unemployment benefits or taking action under
section 268.183
.

Sec. 11. REVISOR'S INSTRUCTION.

The revisor of statutes is instructed to make the following changes in Minnesota Statutes:

(1) change the term "fraud" to "misrepresentation" in sections 268.085, subdivision 2,
and 268.186, subdivision 1;

(2) delete the term "bona fide" wherever it appears in section 268.035;

(3) replace the term "under" with "subject to" in section 268.047, subdivision 2, clause
(8);

(4) replace the term "displays clearly" with "shows" in chapter 268;

(5) replace the term "entire" with "hearing" in section 268.105;

(6) replace "24 calendar months" with "eight calendar quarters" in section 268.052,
subdivision 2.

Sec. 12. REPEALER.

Minnesota Statutes 2016, section 268.053, subdivisions 4 and 5, are repealed.

Sec. 13. EFFECTIVE DATE.

Unless otherwise specified, this article is effective September 16, 2018.

ARTICLE 19

ENVIRONMENT AND NATURAL RESOURCES

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown in
parentheses, subtracted from the appropriations in Laws 2017, chapter 93, or appropriated
to the agencies and for the purposes specified in this article. The appropriations are from
the general fund, or another named fund, and are available for the fiscal year indicated for
each purpose. The figures "2018" and "2019" used in this article mean that the addition to
the appropriations listed under them are available for the fiscal year ending June 30, 2018,
or June 30, 2019, respectively. "The first year" is fiscal year 2018. "The second year" is
fiscal year 2019.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. POLLUTION CONTROL AGENCY

Subdivision 1.

Total Appropriation

$
-0-
$
300,000
Appropriations by Fund
2018
2019
General
-0-
(300,000)
Environmental
-0-
600,000

Subd. 2.

Resource Management

-0-
-0-

(a) $300,000 the second year is a reduction
from the general fund for competitive
recycling grants under Minnesota Statutes,
section 115A.565. This is a onetime reduction.

(b) $300,000 the second year is from the
environmental fund for competitive recycling
grants under Minnesota Statutes, section
115A.565. This is a onetime appropriation.

Subd. 3.

Watershed

-0-
300,000

$300,000 the second year is from the
environmental fund for a grant to the
Minnesota Association of County Feedlot
Officers to develop, in coordination with the
Pollution Control Agency and the University
of Minnesota Extension program, an online
training curriculum related to animal feedlot
requirements under Minnesota Rules, chapter
7020. The curriculum must be developed to:

(1) provide base-level knowledge to new and
existing county feedlot pollution control
officers on feedlot registration, permitting,
compliance, enforcement, and program
administration;

(2) provide assistance to new and existing
county feedlot pollution control officers for
working efficiently and effectively with
producers; and

(3) reduce the incidence of manure or nutrients
entering surface water or groundwater.

This is a onetime appropriation and is
available until June 30, 2020.

Sec. 3. NATURAL RESOURCES.

Subdivision 1.

Total Appropriation

$
-0-
$
3,934,000
Appropriations by Fund
2018
2019
General
-0-
275,000
Natural Resources
-0-
2,905,000
Game and Fish
-0-
754,000

Subd. 2.

Lands and Minerals Management

-0-
654,000

(a) $335,000 the second year is for aggregate
mapping. This is a onetime appropriation and
is available until June 30, 2020.

(b) $319,000 the second year is from the
mineral management account in the natural
resources fund for environmental research
relating to mine permitting, in consultation
with the Mineral Coordinating Committee.

Subd. 3.

Ecological and Water Resources

-0-
525,000

(a) $425,000 the second year is for grants to
lake associations to manage aquatic invasive
species, including grants for projects to control
and provide public awareness of aquatic
invasive species and for watercraft inspections
in partnership with local units of government.
This is a onetime appropriation.

(b) $100,000 the second year is from the
heritage enhancement account in the game and
fish fund for a grant to the Board of Regents
of the University of Minnesota to conduct a
statewide survey and analysis of Minnesota
anglers' attitude toward fish stocking. The
survey must include a representative sample
of anglers from all regions of the state and
must examine Minnesota anglers' attitudes
toward the stocking of each fish species that
is or has been stocked by the Department of
Natural Resources. The Board of Regents must
report the results of the survey and analysis to
the chairs and ranking minority members of
the legislative committees with jurisdiction
over environment and natural resources
finance no later than March 1, 2020. The
report must include data about the amount
spent on stocking each fish species. This is a
onetime appropriation.

Subd. 4.

Forest Management

-0-
-0-

(a) $1,131,000 the second year is a reduction
to the general fund for the Next Generation
Core Forestry data system. This is a onetime
reduction.

(b) $1,131,000 the second year is from the
forest management investment account in the
natural resources fund for the Next Generation
Core Forestry data system. This is a onetime
appropriation and is available until June 30,
2021.

Subd. 5.

Parks and Trails Management

-0-
1,415,000

(a) $100,000 the second year is from the
all-terrain vehicle account in the natural
resources fund for a grant to the city of
Virginia to develop, in cooperation with the
Quad Cities ATV Club, an all-terrain vehicle
trail system in the cities of Virginia, Eveleth,
Gilbert, and Mountain Iron and surrounding
areas. This is a onetime appropriation and is
available until June 30, 2021.

(b) $200,000 the second year is from the
off-road vehicle account in the natural
resources fund for a contract with a project
administrator to assist the commissioner in
planning, designing, and providing a system
of state touring routes for off-road vehicles by
identifying sustainable, legal routes suitable
for licensed four-wheel drive vehicles and a
system of recreational trails for registered
off-road vehicles. Any portion of this
appropriation not used for the project
administrator is available for signage or
promotion of the system. This is a onetime
appropriation.

(c) $200,000 the second year is from the
off-road vehicle account in the natural
resources fund for a contract to prepare a
comprehensive, statewide, strategic master
plan for trails for off-road vehicles. The master
plan must be consistent with federal, tribal,
state, and local law and regulations. The
commissioner must consult with the Minnesota
Four Wheel Drive Association in developing
contract criteria. This is a onetime
appropriation and is available until June 30,
2019.

(d) $200,000 the second year is from the
off-road vehicle account in the natural
resources fund to reimburse federal, county,
and township entities for additional needs on
roads under the claimant's jurisdiction when
the needs are a result of increased use by
off-road vehicles and are attributable to a
border-to-border touring route established by
the commissioner. This paragraph does apply
to roads that are operated by a public road
authority as defined in Minnesota Statutes,
section 160.02, subdivision 25. This is a
onetime appropriation and is available until
June 30, 2023. To be eligible for
reimbursement under this paragraph, the
claimant must demonstrate that the needs
result from additional traffic generated by the
border-to-border touring route.

(e) $315,000 the second year is from the
natural resources fund for a grant to St. Louis
County to be used as a match to a state
bonding grant for trail and bridge construction
and for a maintenance fund for a five-mile
segment of the Voyageur Country ATV trail
system, including a multiuse bridge over the
Vermilion River that would serve ATVs,
snowmobiles, off-road vehicles, off-highway
motorcycles, and emergency vehicles in St.
Louis County. Of this amount, $285,000 is
from the all-terrain vehicle account, $15,000
is from the off-road vehicle account, and
$15,000 is from the off-highway motorcycle
account. This is a onetime appropriation and
is available until June 30, 2021.

(f) $300,000 the second year is from the
natural resources fund for a grant to Lake
County to match other funding sources to
develop the Prospectors Loop trail system. Of
this amount, $270,000 is from the all-terrain
vehicle account, $15,000 is from the
off-highway motorcycle account, and $15,000
is from the off-road vehicle account. This is
a onetime appropriation and is available until
June 30, 2021.

(g) $100,000 the second year is from the
all-terrain vehicle account in the natural
resources fund for wetland delineation and
work on an environmental assessment
worksheet for the Taconite State Trail from
Ely to Tower consistent with the 2017
Taconite State Trail Master Plan. This is a
onetime appropriation and is available until
June 30, 2021.

Subd. 6.

Fish and Wildlife Management

-0-
1,092,000

(a) $438,000 the second year is for wildlife
disease surveillance and response. This is a
onetime appropriation.

(b) The commissioner may use up to $7,000
of the amount appropriated from the general
fund in Laws 2017, chapter 93, article 1,
section 3, subdivision 8, to cover the cost of:

(1) the redesign of the printed and digital
versions of fishing regulations and hunting
and trapping regulations; and

(2) the reprogramming of the electronic
licensing system, to conform to the
requirements of providing voter registration
information under Minnesota Statutes, section
97A.409.

(c) Notwithstanding Minnesota Statutes,
section 297A.94, $654,000 the second year is
from the heritage enhancement account in the
game and fish fund for planning and
emergency response to disease outbreaks in
wildlife. This is a onetime appropriation and
is available until June 30, 2020.

Subd. 7.

Enforcement

-0-
248,000

(a) $208,000 the second year is for responding
to escaped animals from Cervidae farms,
including inspection of farmed Cervidae,
farmed Cervidae facilities, and farmed
Cervidae records when the commissioner has
reasonable suspicion that laws protecting
native wild animals or other provisions of
Minnesota Statutes, section 35.155 have been
violated. This is a onetime appropriation.

(b) $40,000 the second year is from the
all-terrain vehicle account in the natural
resources fund to develop a voluntary online
youth all-terrain vehicle training program
under Minnesota Statutes, section 84.925,
subdivision 1. This is a onetime appropriation.

Sec. 4. BOARD OF WATER AND SOIL
RESOURCES.

$
-0-
$
25,000

$25,000 the second year is for a grant to the
Red River Basin Commission for water quality
and floodplain management. This is a onetime
appropriation.

Sec. 5. NATURAL RESOURCES DAMAGES
ACCOUNT TRANSFER

By June 30, 2018, any money in the general
portion of the remediation fund dedicated for
the purposes of the natural resources damages
account must be transferred to the natural
resources damages account.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

Laws 2010, chapter 361, article 4, section 78, is amended to read:


Sec. 78. APPROPRIATION; MOOSE TRAIL.

$100,000 in fiscal year 2011 is appropriated to the commissioner of natural resources
from the all-terrain vehicle account in the natural resources fund for a grant to the city of
Hoyt Lakes to convert the Moose Trail snowmobile trail to for a dual usage trail, so that it
may also be used as an
off-highway vehicle trail connecting the city of Biwabik to the Iron
Range Off-Highway Vehicle Recreation Area. This is a onetime appropriation and is available
until spent June 30, 2020.

Sec. 7.

Laws 2016, chapter 189, article 3, section 3, subdivision 5, is amended to read:


Subd. 5.

Parks and Trails Management

-0-
6,459,000
Appropriations by Fund
2016
2017
General
-0-
2,929,000
Natural Resources
-0-
3,530,000

$2,800,000 the second year is a onetime
appropriation.

$2,300,000 the second year is from the state
parks account in the natural resources fund.
Of this amount, $1,300,000 is onetime, of
which $1,150,000 is for strategic park
acquisition.

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

$100,000 the second year is for the
improvement of the infrastructure for sanitary
sewer service at the Woodenfrog Campground
in Kabetogama State Forest. This is a onetime
appropriation.

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

$210,000 the first year is from the water
recreation account in the natural resources
fund for implementation of Minnesota
Statutes, section 86B.532, established in this
act. This is a onetime appropriation. The
commissioner of natural resources shall seek
federal and other nonstate funds to reimburse
the department for the initial costs of
producing and distributing carbon monoxide
boat warning labels. All amounts collected
under this paragraph shall be deposited into
the water recreation account.

$1,000,000 the second year is from the natural
resources fund for a grant to Lake County for
construction, including bridges, of the
Prospectors ATV Trail System linking the
communities of Ely, Babbitt, Embarrass, and
Tower; Bear Head Lake and Lake
Vermilion-Soudan Underground Mine State
Parks; the Taconite State Trail; and the Lake
County Regional ATV Trail System. Of this
amount, $900,000 is from the all-terrain
vehicle account, $50,000 is from the
off-highway motorcycle account, and $50,000
is from the off-road vehicle account. This is
a onetime appropriation and is available until
June 30, 2019
.

Sec. 8.

Laws 2016, chapter 189, article 3, section 4, is amended to read:


Sec. 4. BOARD OF WATER AND SOIL
RESOURCES

$
-0-
$
479,000

$479,000 the second year is for the
development of a detailed plan to implement
a working lands watershed restoration program
to incentivize the establishment and
maintenance of perennial crops that includes
the following:

(1) a process for selecting pilot watersheds
that are expected to result in the greatest water
quality improvements and exhibit readiness
to participate in the program;

(2) an assessment of the quantity of
agricultural land that is expected to be eligible
for the program in each watershed;

(3) an assessment of landowner interest in
participating in the program;

(4) an assessment of the contract terms and
any recommendations for changes to the terms,
including consideration of variable payment
rates for lands of different priority or type;

(5) an assessment of the opportunity to
leverage federal funds through the program
and recommendations on how to maximize
the use of federal funds for assistance to
establish perennial crops;

(6) an assessment of how other state programs
could complement the program;

(7) an estimate of water quality improvements
expected to result from implementation in pilot
watersheds;

(8) an assessment of how to best integrate
program implementation with existing
conservation requirements and develop
recommendations on harvest practices and
timing to benefit wildlife production;

(9) an assessment of the potential viability and
water quality benefit of cover crops used in
biomass processing facilities;

(10) a timeline for implementation,
coordinated to the extent possible with
proposed biomass processing facilities; and

(11) a projection of funding sources needed
to complete implementation.;

(12) outreach to local governments, interest
groups, and individual farmers on the
economic and environmental benefits of
perennial and cover crops;

(13) establishment of detailed criteria to target
the location of perennial and cover crops on
a watershed basis to maximize the
environmental benefit at the lowest cost; and

(14) development of model contracts to
include payment rates, duration, type of crops,
harvest standards, and monitoring procedures
for use in future program implementation.

This is a onetime appropriation and is
available until June 30, 2018 2019.

The board shall coordinate development of
the working lands watershed restoration plan
with stakeholders and the commissioners of
natural resources, agriculture, and the
Pollution Control Agency. The board must
submit an interim report by October 15, 2017
2018
, and the feasibility study and program
plan by February 1, 2018 2019, to the chairs
and ranking minority members of the
legislative committees and divisions with
jurisdiction over agriculture, natural resources,
and environment policy and finance and to the
Clean Water Council.

Sec. 9.

Laws 2017, chapter 93, article 1, section 3, subdivision 6, is amended to read:


Subd. 6.

Fish and Wildlife Management

68,207,000
67,750,000
69,210,000
Appropriations by Fund
2018
2019
Natural Resources
1,912,000
1,912,000
Game and Fish
66,295,000
65,838,000
67,298,000

(a) $8,283,000 the first year and $8,386,000
the second year are from the heritage
enhancement account in the game and fish
fund only for activities specified in Minnesota
Statutes, section 297A.94, paragraph (e),
clause (1). Notwithstanding Minnesota
Statutes, section 297A.94, five percent of this
appropriation may be used for expanding
hunter and angler recruitment and retention.

(b) Notwithstanding Minnesota Statutes,
section 297A.94, $30,000 the first year is from
the heritage enhancement account in the game
and fish fund for the commissioner of natural
resources to contract with a private entity to
search for a site to construct a world-class
shooting range and club house for use by the
Minnesota State High School League and for
other regional, statewide, national, and
international shooting events. The
commissioner must provide public notice of
the search, including making the public aware
of the process through the Department of
Natural Resources' media outlets, and solicit
input on the location and building options for
the facility. The siting search process must
include a public process to determine if any
business or individual is interested in donating
land for the facility, anticipated to be at least
500 acres. The site search team must meet
with interested third parties affected by or
interested in the facility. The commissioner
must submit a report with the results of the
site search to the chairs and ranking minority
members of the legislative committees and
divisions with jurisdiction over environment
and natural resources by March 1, 2018. This
is a onetime appropriation.

(c) Notwithstanding Minnesota Statutes,
section 297A.94, $30,000 the first year is from
the heritage enhancement account in the game
and fish fund for a study of lead shot
deposition on state lands. By March 1, 2018,
the commissioner shall provide a report of the
study to the chairs and ranking minority
members of the legislative committees with
jurisdiction over natural resources policy and
finance. This is a onetime appropriation.

(d) Notwithstanding Minnesota Statutes,
section 297A.94, $500,000 the first year is
from the heritage enhancement account in the
game and fish fund for planning and
emergency response to disease outbreaks in
wildlife. This is a onetime appropriation and
is available until June 30, 2019.

(e) $8,606,000 the second year is from the
deer management account in the game and
fish fund for the purposes specified under
Minnesota Statutes, section 97A.075,
subdivision 1, paragraph (b).

Sec. 10.

Laws 2017, chapter 93, article 1, section 4, is amended to read:


Sec. 4. BOARD OF WATER AND SOIL
RESOURCES

$
14,311,000
$
14,164,000

(a) $3,423,000 the first year and $3,423,000
the second year are for natural resources block
grants to local governments. Grants must be
matched with a combination of local cash or
in-kind contributions. The base grant portion
related to water planning must be matched by
an amount as specified by Minnesota Statutes,
section 103B.3369. The board may reduce the
amount of the natural resources block grant
to a county by an amount equal to any
reduction in the county's general services
allocation to a soil and water conservation
district from the county's previous year
allocation when the board determines that the
reduction was disproportionate.

(b) $3,116,000 the first year and $3,116,000
the second year are for grants to soil and water
conservation districts for the purposes of
Minnesota Statutes, sections 103C.321 and
103C.331, and for general purposes, nonpoint
engineering, and implementation and
stewardship of the reinvest in Minnesota
reserve program. Expenditures may be made
from these appropriations for supplies and
services benefiting soil and water conservation
districts. Any district receiving a payment
under this paragraph shall maintain a Web
page that publishes, at a minimum, its annual
report, annual audit, annual budget, and
meeting notices.

(c) $260,000 the first year and $260,000 the
second year are for feedlot water quality cost
share grants for feedlots under 300 animal
units and nutrient and manure management
projects in watersheds where there are
impaired waters.

(d) $1,200,000 the first year and $1,200,000
the second year are for soil and water
conservation district cost-sharing contracts for
perennially vegetated riparian buffers, erosion
control, water retention and treatment, and
other high-priority conservation practices.

(e) $100,000 the first year and $100,000 the
second year are for county cooperative weed
management cost-share programs and to
restore native plants in selected invasive
species management sites.

(f) $761,000 the first year and $761,000 the
second year are for implementation,
enforcement, and oversight of the Wetland
Conservation Act, including administration of
the wetland banking program and in-lieu fee
mechanism.

(g) $300,000 the first year is for improving
the efficiency and effectiveness of Minnesota's
wetland regulatory programs through
continued examination of United States Clean
Water Act section 404 assumption including
negotiation of draft agreements with the
United States Environmental Protection
Agency and the United States Army Corps of
Engineers, planning for an online permitting
system, upgrading the existing wetland
banking database, and developing an in-lieu
fee wetland banking program as authorized
by statute. This is a onetime appropriation and
is available until June 30, 2019
.

(h) $166,000 the first year and $166,000 the
second year are to provide technical assistance
to local drainage management officials and
for the costs of the Drainage Work Group. The
Board of Water and Soil Resources must
coordinate the stakeholder drainage work
group in accordance with Minnesota Statutes,
section 103B.101, subdivision 13, to evaluate
and make recommendations to accelerate
drainage system acquisition and establishment
of ditch buffer strips under Minnesota Statutes,
chapter 103E, or compatible alternative
practices required by Minnesota Statutes,
section 103F.48. The evaluation and
recommendations must be submitted in a
report to the senate and house of
representatives committees with jurisdiction
over agriculture and environment policy by
February 1, 2018.

(i) $100,000 the first year and $100,000 the
second year are for a grant to the Red River
Basin Commission for water quality and
floodplain management, including
administration of programs. This appropriation
must be matched by nonstate funds. If the
appropriation in either year is insufficient, the
appropriation in the other year is available for
it.

(j) $140,000 the first year and $140,000 the
second year are for grants to Area II
Minnesota River Basin Projects for floodplain
management.

(k) $125,000 the first year and $125,000 the
second year are for conservation easement
stewardship.

(l) $240,000 the first year and $240,000 the
second year are for a grant to the Lower
Minnesota River Watershed District to defray
the annual cost of operating and maintaining
sites for dredge spoil to sustain the state,
national, and international commercial and
recreational navigation on the lower Minnesota
River.

(m) $4,380,000 the first year and $4,533,000
the second year are for Board of Water and
Soil Resources agency administration and
operations.

(n) Notwithstanding Minnesota Statutes,
section 103C.501, the board may shift
cost-share funds in this section and may adjust
the technical and administrative assistance
portion of the grant funds to leverage federal
or other nonstate funds or to address
high-priority needs identified in local water
management plans or comprehensive water
management plans.

(o) The appropriations for grants in this section
are available until June 30, 2021, except
returned grants are available for two years
after they are returned. If an appropriation for
grants in either year is insufficient, the
appropriation in the other year is available for
it.

(p) Notwithstanding Minnesota Statutes,
section 16B.97, the appropriations for grants
in this section are exempt from Department
of Administration, Office of Grants
Management Policy 08-08 Grant Payments
and 08-10 Grant Monitoring.

ARTICLE 20

ENVIRONMENT AND NATURAL RESOURCES POLICY

Section 1.

[11A.236] ACCOUNT FOR INVESTMENT OF PERMIT TO MINE
FINANCIAL ASSURANCE MONEY.

Subdivision 1.

Establishment; appropriation.

(a) The State Board of Investment, when
requested by the commissioner of natural resources, may invest money collected by the
commissioner as part of financial assurance provided under a permit to mine issued under
chapter 93. The State Board of Investment may establish one or more accounts into which
money may be deposited for the purposes of this section, subject to the policies and
procedures of the State Board of Investment. Use of any money in the account shall be
restricted to the financial assurance purposes identified in sections 93.46 to 93.51, and rules
adopted thereunder, and as authorized under any trust fund agreements or other conditions
established under a permit to mine.

(b) Money in the accounts is appropriated to the commissioner for the purposes for
which the account is established under this section.

Subd. 2.

Account maintenance and investment.

The commissioner of natural resources
may deposit money in the appropriate account and may withdraw money from the appropriate
account for the financial assurance purposes identified in sections 93.46 to 93.51 and rules
adopted thereunder and as authorized under any trust fund agreements or other conditions
established under the permit to mine for which the financial assurance is provided, subject
to the policies and procedures of the State Board of Investment. Investment strategies related
to an account established under this section must be determined jointly by the commissioner
of natural resources and the executive director of the State Board of Investment. The
authorized investments for an account shall be the investments authorized under section
11A.24 that are made available for investment by the State Board of Investment. Investment
transactions must be at a time and in a manner determined by the executive director of the
State Board of Investment. Decisions to withdraw money from the account must be
determined by the commissioner of natural resources, subject to the policies and procedures
of the State Board of Investment. Investment earnings must be credited to the appropriate
account for financial assurance under the identified permit to mine. An account may be
terminated by the commissioner of natural resources at any time, so long as the termination
is in accordance with applicable statutes, rules, trust fund agreements, or other conditions
established under the permit to mine, subject to the policies and procedures of the State
Board of Investment.

Sec. 2.

Minnesota Statutes 2016, section 17.494, is amended to read:


17.494 AQUACULTURE PERMITS; RULES.

(a) The commissioner shall act as permit or license coordinator for aquatic farmers and
shall assist aquatic farmers to obtain licenses or permits.

By July 1, 1992, (b) A state agency issuing multiple permits or licenses for aquaculture
shall consolidate the permits or licenses required for every aquatic farm location. The
Department of Natural Resources transportation permits are exempt from this requirement.
State agencies shall adopt rules or issue commissioner's orders that establish permit and
license requirements, approval timelines, and compliance standards. Saltwater aquatic farms,
as defined in section 17.4982, and processing facilities for saltwater aquatic life, as defined
in section 17.4982, must be classified as agricultural operations for purposes of any
construction, discharge, or other permit issued by the Pollution Control Agency.

Nothing in this section modifies any state agency's regulatory authority over aquaculture
production.

Sec. 3.

Minnesota Statutes 2016, section 17.4982, is amended by adding a subdivision to
read:


Subd. 20a.

Saltwater aquaculture.

"Saltwater aquaculture" means the commercial
propagation and rearing of saltwater aquatic life, including, but not limited to, crustaceans,
primarily for consumption as human food.

Sec. 4.

Minnesota Statutes 2016, section 17.4982, is amended by adding a subdivision to
read:


Subd. 20b.

Saltwater aquatic farm.

"Saltwater aquatic farm" means a facility used for
saltwater aquaculture, including, but not limited to, artificial ponds, vats, tanks, raceways,
and other facilities that an aquatic farmer owns or has exclusive control of for the sole
purpose of producing saltwater aquatic life.

Sec. 5.

Minnesota Statutes 2016, section 17.4982, is amended by adding a subdivision to
read:


Subd. 20c.

Saltwater aquatic life.

"Saltwater aquatic life" means aquatic species that
are saltwater obligates or perform optimally when raised in salinities closer to that of natural
seawater and need saltwater to survive.

Sec. 6.

[17.499] TRANSPORTATION OR IMPORTATION OF SALTWATER
AQUATIC LIFE; QUARANTINE REQUIREMENT.

Subdivision 1.

Purpose.

The legislature finds that it is in the public interest to increase
private saltwater aquaculture production and processing in this state under the coordination
of the commissioner of agriculture. Additional private production will reduce dependence
on foreign suppliers and benefit the rural economy by creating new jobs and economic
activity.

Subd. 2.

Transportation permit.

(a) Notwithstanding the requirements in section
17.4985, saltwater aquatic life transportation and importation requirements are governed
by this section. A transportation permit is required prior to any importation or intrastate
transportation of saltwater aquatic life not exempted under subdivision 3. A transportation
permit may be used for multiple shipments within the 30-day term of the permit if the source
and the destination remain the same. Transportation permits must be obtained from the
commissioner prior to shipment of saltwater aquatic life.

(b) An application for a transportation permit must be made in the form required by the
commissioner. The commissioner may reject an incomplete application.

(c) An application for a transportation permit must be accompanied by satisfactory
evidence, as determined by the commissioner, that the shipment is free of any nonindigenous
species of animal other than the saltwater aquatic species and either:

(1) the facility from which the saltwater aquatic life originated has provided
documentation of 36 or more consecutive months of negative testing by an approved
laboratory as free of any disease listed by OIE - the World Organisation for Animal Health
for that species following the testing guidelines outlined in the OIE Aquatic Animal Health
Code for crustaceans or the AFS Fish Health Blue Book for other species, as appropriate;
or

(2) the saltwater aquatic life to be imported or transported includes documentation of
negative testing for that specific lot by an approved laboratory as free of any disease listed
by OIE - the World Organisation for Animal Health for crustaceans or in the AFS Fish
Health Blue Book for other species, as appropriate.

If a shipment authorized by the commissioner under clause (1) includes saltwater aquatic
life that originated in a foreign country, the shipment must be quarantined at the receiving
facility according to a quarantine plan approved by the commissioner. A shipment authorized
by the commissioner under clause (2) must be quarantined at the receiving facility according
to a quarantine plan approved by the commissioner.

(d) For purposes of this subdivision, "approved laboratory" means a laboratory approved
by the commissioner or the United States Department of Agriculture, Animal and Plant
Health Inspection Services.

(e) No later than 14 calendar days after a completed transportation permit application
is received, the commissioner must approve or deny the transportation permit application.

(f) A copy of the transportation permit must accompany a shipment of saltwater aquatic
life while in transit and must be available for inspection by the commissioner.

(g) A vehicle used by a licensee for transporting aquatic life must be identified with the
license number and the licensee's name and town of residence as it appears on the license.
A vehicle used by a licensee must have identification displayed so that it is readily visible
from either side of the vehicle in letters and numbers not less than 2-1/2 inches high and
three-eighths inch wide. Identification may be permanently affixed to vehicles or displayed
on removable plates or placards placed on opposite doors of the vehicle or on the tanks
carried on the vehicle.

(h) An application to license a vehicle for brood stock or larvae transport or for use as
a saltwater aquatic life vendor that is received by the commissioner is a temporary license
until approved or denied by the commissioner.

Subd. 3.

Exemptions.

(a) A transportation permit is not required to transport or import
saltwater aquatic life:

(1) previously processed for use as food or other purposes unrelated to propagation;

(2) transported directly to an outlet for processing as food or for other food purposes if
accompanied by shipping documents;

(3) that is being exported if accompanied by shipping documents;

(4) that is being transported through the state if accompanied by shipping documents;
or

(5) transported intrastate within or between facilities licensed for saltwater aquaculture
by the commissioner if accompanied by shipping documents.

(b) Shipping documents required under paragraph (a) must include the place of origin,
owner or consignee, destination, number, species, and satisfactory evidence, as determined
by the commissioner, of the disease-free certification required under subdivision 2, paragraph
(c), clauses (1) and (2).

Sec. 7.

Minnesota Statutes 2017 Supplement, section 84.01, subdivision 6, is amended to
read:


Subd. 6.

Legal counsel.

The commissioner of natural resources may appoint attorneys
or outside counsel to render title opinions, represent the department in severed mineral
interest forfeiture actions brought pursuant to section 93.55, and, notwithstanding any statute
to the contrary, represent the state in quiet title or title registration actions affecting land or
interests in land administered by the commissioner and in all proceedings relating to road
vacations
.

Sec. 8.

Minnesota Statutes 2016, section 84.0895, subdivision 2, is amended to read:


Subd. 2.

Application.

(a) Subdivision 1 does not apply to:

(1) plants on land classified for property tax purposes as class 2a or 2c agricultural land
under section 273.13, or on ditches and roadways a ditch, or on an existing public road
right-of-way as defined in section 84.92, subdivision 6a, except for ground not previously
disturbed by construction or maintenance
; and

(2) noxious weeds designated pursuant to sections 18.76 to 18.88 or to weeds otherwise
designated as troublesome by the Department of Agriculture.

(b) If control of noxious weeds is necessary, it takes priority over the protection of
endangered plant species, as long as a reasonable effort is taken to preserve the endangered
plant species first.

(c) The taking or killing of an endangered plant species on land adjacent to class 3 or
3b agricultural land as a result of the application of pesticides or other agricultural chemical
on the class 3 or 3b land is not a violation of subdivision 1, if reasonable care is taken in
the application of the pesticide or other chemical to avoid impact on adjacent lands. For the
purpose of this paragraph, class 3 or 3b agricultural land does not include timber land, waste
land, or other land for which the owner receives a state paid wetlands or native prairie tax
credit.

(d) The accidental taking of an endangered plant, where the existence of the plant is not
known at the time of the taking, is not a violation of subdivision 1.

Sec. 9.

Minnesota Statutes 2016, section 84.775, subdivision 1, is amended to read:


Subdivision 1.

Civil citation; authority to issue.

(a) A conservation officer or other
licensed peace officer may issue a civil citation to a person who operates:

(1) an off-highway motorcycle in violation of sections 84.773, subdivision 1 or 2, clause
(1); 84.777; 84.788 to 84.795; or 84.90;

(2) an off-road vehicle in violation of sections 84.773, subdivision 1 or 2, clause (1);
84.777; 84.798 to 84.804; or 84.90; or

(3) an all-terrain vehicle in violation of sections 84.773, subdivision 1 or 2, clause (1);
84.777; 84.90; or 84.922 to 84.928.

(b) A civil citation under paragraph (a) shall require restitution for public and private
property damage and impose a penalty of:

(1) $100 for the first offense;

(2) $200 for the second offense; and

(3) $500 for third and subsequent offenses.

(c) A conservation officer or other licensed peace officer may issue a civil citation to a
person who operates an off-highway motorcycle, off-road vehicle, or all-terrain vehicle in
violation of section 84.773, subdivision 2, clause (2) or (3). A civil citation under this
paragraph shall require restitution for damage to wetlands and impose a penalty of:

(1) $100 for the first offense;

(2) $500 for the second offense; and

(3) $1,000 for third and subsequent offenses.

(d) If the peace officer determines that there is damage to property requiring restitution,
the commissioner must send a written explanation of the extent of the damage and the cost
of the repair by first class mail to the address provided by the person receiving the citation
within 15 days of the date of the citation.

(e) An off-road vehicle or all-terrain vehicle that is equipped with a snorkel device and
receives a civil citation under this section is subject to twice the penalty amounts in
paragraphs (b) and (c).

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 10.

Minnesota Statutes 2016, section 84.86, subdivision 1, is amended to read:


Subdivision 1.

Required rules.

With a view of achieving maximum use of snowmobiles
consistent with protection of the environment the commissioner of natural resources shall
adopt rules in the manner provided by chapter 14, for the following purposes:

(1) Registration of snowmobiles and display of registration numbers.

(2) Use of snowmobiles insofar as game and fish resources are affected.

(3) Use of snowmobiles on public lands and waters, or on grant-in-aid trails.

(4) Uniform signs to be used by the state, counties, and cities, which are necessary or
desirable to control, direct, or regulate the operation and use of snowmobiles.

(5) Specifications relating to snowmobile mufflers.

(6) A comprehensive snowmobile information and safety education and training program,
including but not limited to the preparation and dissemination of snowmobile information
and safety advice to the public, the training of snowmobile operators, and the issuance of
snowmobile safety certificates to snowmobile operators who successfully complete the
snowmobile safety education and training course. For the purpose of administering such
program and to defray expenses of training and certifying snowmobile operators, the
commissioner shall collect a fee from each person who receives the youth or adult training.
The commissioner shall collect a fee, to include a $1 issuing fee for licensing agents, for
issuing a duplicate snowmobile safety certificate. The commissioner shall establish both
fees in a manner that neither significantly overrecovers nor underrecovers costs, including
overhead costs, involved in providing the services. The fees are not subject to the rulemaking
provisions of chapter 14 and section 14.386 does not apply. The fees may be established
by the commissioner notwithstanding section 16A.1283. The fees, except for the issuing
fee for licensing agents under this subdivision, shall be deposited in the snowmobile trails
and enforcement account in the natural resources fund and the amount thereof, except for
the electronic licensing system commission established by the commissioner under section
84.027, subdivision 15, and issuing fees collected by the commissioner, is appropriated
annually to the Enforcement Division of the Department of Natural Resources for the
administration of such programs. In addition to the fee established by the commissioner,
instructors may charge each person any fee paid by the instructor for the person's online
training course and
up to the established fee amount for class materials and expenses. The
commissioner shall cooperate with private organizations and associations, private and public
corporations, and local governmental units in furtherance of the program established under
this clause. School districts may cooperate with the commissioner and volunteer instructors
to provide space for the classroom portion of the training. The commissioner shall consult
with the commissioner of public safety in regard to training program subject matter and
performance testing that leads to the certification of snowmobile operators.

(7) The operator of any snowmobile involved in an accident resulting in injury requiring
medical attention or hospitalization to or death of any person or total damage to an extent
of $500 or more, shall forward a written report of the accident to the commissioner on such
form as the commissioner shall prescribe. If the operator is killed or is unable to file a report
due to incapacitation, any peace officer investigating the accident shall file the accident
report within ten business days.

Sec. 11.

Minnesota Statutes 2017 Supplement, section 84.91, subdivision 1, is amended
to read:


Subdivision 1.

Acts prohibited.

(a) No owner or other person having charge or control
of any snowmobile or all-terrain vehicle shall authorize or permit any individual the person
knows or has reason to believe is under the influence of alcohol or a controlled substance
or other substance to operate the snowmobile or all-terrain vehicle anywhere in this state
or on the ice of any boundary water of this state.

(b) No owner or other person having charge or control of any snowmobile or all-terrain
vehicle shall knowingly authorize or permit any person, who by reason of any physical or
mental disability is incapable of operating the vehicle, to operate the snowmobile or all-terrain
vehicle anywhere in this state or on the ice of any boundary water of this state.

(c) A person who operates or is in physical control of a snowmobile or all-terrain vehicle
anywhere in this state or on the ice of any boundary water of this state is subject to chapter
169A. In addition to the applicable sanctions under chapter 169A, a person who is convicted
of violating section 169A.20 or an ordinance in conformity with it while operating a
snowmobile or all-terrain vehicle
, or who refuses to comply with a lawful request to submit
to testing under sections 169A.50 to 169A.53 or 171.177, or an ordinance in conformity
with it, shall be prohibited from operating a snowmobile or all-terrain vehicle for a period
of one year. The commissioner shall notify the person of the time period during which the
person is prohibited from operating a snowmobile or all-terrain vehicle.

(d) Administrative and judicial review of the operating privileges prohibition is governed
by section 97B.066, subdivisions 7 to 9, if the person does not have a prior impaired driving
conviction or prior license revocation, as defined in section 169A.03. Otherwise,
administrative and judicial review of the prohibition is governed by section 169A.53 or
171.177.

(e) The court shall promptly forward to the commissioner and the Department of Public
Safety copies of all convictions and criminal and civil sanctions imposed under:

(1) this section and chapters;

(2) chapter 169 and relating to snowmobiles and all-terrain vehicles;

(3) chapter 169A relating to snowmobiles and all-terrain vehicles.; and

(4) section 171.177.

(f) A person who violates paragraph (a) or (b), or an ordinance in conformity with either
of them, is guilty of a misdemeanor. A person who operates a snowmobile or all-terrain
vehicle during the time period the person is prohibited from operating a vehicle under
paragraph (c) is guilty of a misdemeanor.

EFFECTIVE DATE.

This section is effective August 1, 2018, and applies to violations
committed on or after that date.

Sec. 12.

Minnesota Statutes 2017 Supplement, section 84.925, subdivision 1, is amended
to read:


Subdivision 1.

Program Training and certification programs established.

(a) The
commissioner shall establish:

(1) a comprehensive all-terrain vehicle environmental and safety education and training
certification program, including the preparation and dissemination of vehicle information
and safety advice to the public, the training of all-terrain vehicle operators, and the issuance
of all-terrain vehicle safety certificates to vehicle operators over the age of 12 years who
successfully complete the all-terrain vehicle environmental and safety education and training
course.; and

(2) a voluntary all-terrain vehicle online training program for youth and a parent or
guardian, offered at no charge for operators at least six years of age but younger than ten
years of age.

(b) A parent or guardian must be present at the hands-on a training portion of the program
for when the youth who are six through ten is under ten years of age.

(b) (c) For the purpose of administering the program and to defray the expenses of
training and certifying vehicle operators, the commissioner shall collect a fee from each
person who receives the training for certification under paragraph (a), clause (1). The
commissioner shall collect a fee, to include a $1 issuing fee for licensing agents, for issuing
a duplicate all-terrain vehicle safety certificate. The commissioner shall establish both fees
in a manner that neither significantly overrecovers nor underrecovers costs, including
overhead costs, involved in providing the services. The fees are not subject to the rulemaking
provisions of chapter 14 and section 14.386 does not apply. The fees may be established
by the commissioner notwithstanding section 16A.1283. Fee proceeds, except for the issuing
fee for licensing agents under this subdivision, shall be deposited in the all-terrain vehicle
account in the natural resources fund and the amount thereof, except for the electronic
licensing system commission established by the commissioner under section 84.027,
subdivision 15
, and issuing fees collected by the commissioner, is appropriated annually to
the Enforcement Division of the Department of Natural Resources for the administration
of the programs. In addition to the fee established by the commissioner, instructors may
charge each person up to the established fee amount for class materials and expenses.

(c) (d) The commissioner shall cooperate with private organizations and associations,
private and public corporations, and local governmental units in furtherance of the program
programs
established under this section. School districts may cooperate with the
commissioner and volunteer instructors to provide space for the classroom portion of the
training. The commissioner shall consult with the commissioner of public safety in regard
to training program the subject matter of the training programs and performance testing that
leads to the certification of vehicle operators. The commissioner shall incorporate a riding
component in the safety education and training program certification programs established
under this section, and may incorporate a riding component in the training program as
established in paragraph (a), clause (2)
.

Sec. 13.

Minnesota Statutes 2017 Supplement, section 84.9256, subdivision 1, is amended
to read:


Subdivision 1.

Prohibitions on youthful operators.

(a) Except for operation on public
road rights-of-way that is permitted under section 84.928 and as provided under paragraph
(j), a driver's license issued by the state or another state is required to operate an all-terrain
vehicle along or on a public road right-of-way.

(b) A person under 12 years of age shall not:

(1) make a direct crossing of a public road right-of-way;

(2) operate an all-terrain vehicle on a public road right-of-way in the state; or

(3) operate an all-terrain vehicle on public lands or waters, except as provided in
paragraph (f).

(c) Except for public road rights-of-way of interstate highways, a person 12 years of age
but less than 16 years may make a direct crossing of a public road right-of-way of a trunk,
county state-aid, or county highway or operate on public lands and waters or state or
grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety certificate
issued by the commissioner and is accompanied by a person 18 years of age or older who
holds a valid driver's license.

(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years old,
but less than 16 years old, must:

(1) successfully complete the safety education and training program under section 84.925,
subdivision 1, including a riding component; and

(2) be able to properly reach and control the handle bars and reach the foot pegs while
sitting upright on the seat of the all-terrain vehicle.

(e) A person at least six ten years of age may take the safety education and training
program and may receive an all-terrain vehicle safety certificate under paragraph (d), but
the certificate is not valid until the person reaches age 12.

(f) A person at least ten years of age but under 12 years of age may operate an all-terrain
vehicle with an engine capacity up to 110cc if the vehicle is a class 1 all-terrain vehicle with
straddle-style seating or up to 170cc if the vehicle is a class 1 all-terrain vehicle with
side-by-side-style seating on public lands or waters if accompanied by a parent or legal
guardian.

(g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.

(h) A person under the age of 16 may not operate an all-terrain vehicle on public lands
or waters or on state or grant-in-aid trails if the person cannot properly reach and control:

(1) the handle bars and reach the foot pegs while sitting upright on the seat of the
all-terrain vehicle with straddle-style seating; or

(2) the steering wheel and foot controls of a class 1 all-terrain vehicle with
side-by-side-style seating while sitting upright in the seat with the seat belt fully engaged.

(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than 16
years old, may make a direct crossing of a public road right-of-way of a trunk, county
state-aid, or county highway or operate an all-terrain vehicle on public lands and waters or
state or grant-in-aid trails if:

(1) the nonresident youth has in possession evidence of completing an all-terrain safety
course offered by the ATV Safety Institute or another state as provided in section 84.925,
subdivision 3; and

(2) the nonresident youth is accompanied by a person 18 years of age or older who holds
a valid driver's license.

(j) A person 12 years of age but less than 16 years of age may operate an all-terrain
vehicle on the roadway, bank, slope, or ditch of a public road right-of-way as permitted
under section 84.928 if the person:

(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner;
and

(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

Sec. 14.

Minnesota Statutes 2016, section 84.928, subdivision 2, is amended to read:


Subd. 2.

Operation generally.

A person may not drive or operate an all-terrain vehicle:

(1) at a rate of speed greater than reasonable or proper under the surrounding
circumstances;

(2) in a careless, reckless, or negligent manner so as to endanger or to cause injury or
damage to the person or property of another;

(3) without headlight and taillight lighted at all times if the vehicle is equipped with
headlight and taillight;

(4) without a functioning stoplight if so equipped;

(5) in a tree nursery or planting in a manner that damages or destroys growing stock;

(6) without a brake operational by either hand or foot;

(7) with more than one person on the vehicle, except as allowed under section 84.9257;

(8) at a speed exceeding ten miles per hour on the frozen surface of public waters within
100 feet of a person not on an all-terrain vehicle or within 100 feet of a fishing shelter; or

(9) with a snorkel device that has a raised air intake six inches or more above the vehicle
manufacturer's original air intake, except within the Iron Range Off-Highway Vehicle
Recreation Area as described in section 85.013, subdivision 12a, or other public off-highway
vehicle recreation areas; or

(10) (9) in a manner that violates operation rules adopted by the commissioner.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 15.

Minnesota Statutes 2017 Supplement, section 84D.03, subdivision 3, is amended
to read:


Subd. 3.

Bait harvest from infested waters.

(a) Taking wild animals from infested
waters for bait or aquatic farm purposes is prohibited except as provided in paragraph (b),
(c), or (d) and section 97C.341.

(b) In waters that are listed as infested waters, except those listed as infested with
prohibited invasive species of fish or certifiable diseases of fish, as defined under section
17.4982, subdivision 6, taking wild animals may be permitted for:

(1) commercial taking of wild animals for bait and aquatic farm purposes as provided
in a permit issued under section 84D.11, subject to rules adopted by the commissioner; and

(2) bait purposes for noncommercial personal use in waters that contain Eurasian
watermilfoil, when the infested waters are listed solely because they contain Eurasian
watermilfoil and if the equipment for taking is limited to cylindrical minnow traps not
exceeding 16 inches in diameter and 32 inches in length.

(c) In streams or rivers that are listed as infested waters, except those listed as infested
with certifiable diseases of fish, as defined under section 17.4982, subdivision 6, the harvest
of bullheads, goldeyes, mooneyes, sheepshead (freshwater drum), and suckers for bait by
hook and line for noncommercial personal use is allowed as follows:

(1) fish taken under this paragraph must be used on the same body of water where caught
and while still on that water body. Where the river or stream is divided by barriers such as
dams, the fish must be caught and used on the same section of the river or stream;

(2) fish taken under this paragraph may not be transported live from or off the water
body;

(3) fish harvested under this paragraph may only be used in accordance with this section;

(4) any other use of wild animals used for bait from infested waters is prohibited;

(5) fish taken under this paragraph must meet all other size restrictions and requirements
as established in rules; and

(6) all species listed under this paragraph shall be included in the person's daily limit as
established in rules, if applicable.

(d) In the Minnesota River downstream of Granite Falls, the Mississippi River
downstream of St. Anthony Falls, and the St. Croix River downstream of the dam at Taylors
Falls, including portions described as Minnesota-Wisconsin boundary waters in Minnesota
Rules, part 6266.0500, subpart 1, items A and B, the harvest of gizzard shad by cast net for
noncommercial personal use as bait for angling, as provided in a permit issued under section
84D.11, is allowed as follows:

(1) nontarget species must immediately be returned to the water;

(2) gizzard shad taken under this paragraph must be used on the same body of water
where caught and while still on that water body. Where the river is divided by barriers such
as dams, the gizzard shad must be caught and used on the same section of the river;

(3) gizzard shad taken under this paragraph may not be transported off the water body;
and

(4) gizzard shad harvested under this paragraph may only be used in accordance with
this section.

This paragraph expires December 1, 2017.

(e) Equipment authorized for minnow harvest in a listed infested water by permit issued
under paragraph (b) may not be transported to, or used in, any waters other than waters
specified in the permit.

(f) Bait intended for sale may not be held in infested water after taking and before sale,
unless authorized under a license or permit according to Minnesota Rules, part 6216.0500.

EFFECTIVE DATE.

This section is effective retroactively from December 1, 2017.

Sec. 16.

Minnesota Statutes 2017 Supplement, section 84D.03, subdivision 4, is amended
to read:


Subd. 4.

Restrictions in infested and noninfested waters; commercial fishing and
turtle, frog, and crayfish harvesting.

(a) All nets, traps, buoys, anchors, stakes, and lines
used for commercial fishing or turtle, frog, or crayfish harvesting in an infested water that
is listed because it contains invasive fish, invertebrates, aquatic plants or aquatic macrophytes
other than Eurasian watermilfoil,
or certifiable diseases, as defined in section 17.4982, must
be tagged with tags provided by the commissioner, as specified in the commercial licensee's
license or permit. Tagged gear must not be used in water bodies other than those specified
in the license or permit. The license or permit may authorize department staff to remove
tags after the from gear is that has been decontaminated according to a protocol specified
by the commissioner if use of the decontaminated gear in other water bodies would not pose
an unreasonable risk of harm to natural resources or the use of natural resources in the state
.
This tagging requirement does not apply to commercial fishing equipment used in Lake
Superior.

(b) All nets, traps, buoys, anchors, stakes, and lines used for commercial fishing or turtle,
frog, or crayfish harvesting in an infested water that is listed solely because it contains
Eurasian watermilfoil must be dried for a minimum of ten days or frozen for a minimum
of two days before they are used in any other waters, except as provided in this paragraph.
Commercial licensees must notify the department's regional or area fisheries office or a
conservation officer before removing nets or equipment from an infested water listed solely
because it contains Eurasian watermilfoil and before resetting those nets or equipment in
any other waters. Upon notification, the commissioner may authorize a commercial licensee
to move nets or equipment to another water without freezing or drying, if that water is listed
as infested solely because it contains Eurasian watermilfoil.

(c) A commercial licensee must remove all aquatic macrophytes from nets and other
equipment before placing the equipment into waters of the state.

(d) The commissioner shall provide a commercial licensee with a current listing of listed
infested waters at the time that a license or permit is issued.

Sec. 17.

Minnesota Statutes 2017 Supplement, section 84D.108, subdivision 2b, is amended
to read:


Subd. 2b.

Gull Lake pilot study.

(a) The commissioner may include an additional
targeted pilot study to include water-related equipment with zebra mussels attached for the
Gull Narrows State Water Access Site, Government Point State Water Access Site, and
Gull East State
water access Site sites on Gull Lake (DNR Division of Waters number
11-0305) in Cass and Crow Wing Counties using the same authorities, general procedures,
and requirements provided for the Lake Minnetonka pilot project in subdivision 2a. Lake
service providers participating in the Gull Lake targeted pilot study place of business must
be located in Cass or Crow Wing County.

(b) If an additional targeted pilot project for Gull Lake is implemented under this section,
the report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over natural resources required under Laws
2016, chapter 189, article 3, section 48, must also include the Gull Lake targeted pilot study
recommendations and assessments.

(c) This subdivision expires December 1, 2019.

Sec. 18.

Minnesota Statutes 2017 Supplement, section 84D.108, subdivision 2c, is amended
to read:


Subd. 2c.

Cross Lake pilot study.

(a) The commissioner may include an additional
targeted pilot study to include water-related equipment with zebra mussels attached for the
Cross Lake #1 State
water access Site sites on Cross Lake (DNR Division of Waters number
18-0312) in Crow Wing County using the same authorities, general procedures, and
requirements provided for the Lake Minnetonka pilot project in subdivision 2a. The place
of business of lake service providers participating in the Cross Lake targeted pilot study
must be located in Cass or Crow Wing County.

(b) If an additional targeted pilot project for Cross Lake is implemented under this
section, the report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over natural resources required under Laws
2016, chapter 189, article 3, section 48, must also include the Cross Lake targeted pilot
study recommendations and assessments.

(c) This subdivision expires December 1, 2019.

Sec. 19.

Minnesota Statutes 2017 Supplement, section 85.0146, subdivision 1, is amended
to read:


Subdivision 1.

Advisory council created.

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

(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board
Cuyuna Range Economic Development, Inc.
;

(2) a representative of for the Croft Mine Historical Park Joint Powers Board appointed
by the members of the Cuyuna Country State Recreation Area Citizens Advisory Council
who are appointed under clauses (1) and (4) to (13)
;

(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked
as a miner in the local area
member at large appointed by the members of the Cuyuna
Country State Recreation Area Citizens Advisory Council who are appointed under clauses
(1) and (4) to (13)
;

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

(5) an elected state official the state senator representing the state recreation area;

(6) the member from the state house of representatives representing the state recreation
area;

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

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

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

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

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

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

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

Sec. 20.

Minnesota Statutes 2017 Supplement, section 86B.331, subdivision 1, is amended
to read:


Subdivision 1.

Acts prohibited.

(a) An owner or other person having charge or control
of a motorboat may not authorize or allow an individual the person knows or has reason to
believe is under the influence of alcohol or a controlled or other substance to operate the
motorboat in operation on the waters of this state.

(b) An owner or other person having charge or control of a motorboat may not knowingly
authorize or allow a person, who by reason of a physical or mental disability is incapable
of operating the motorboat, to operate the motorboat in operation on the waters of this state.

(c) A person who operates or is in physical control of a motorboat on the waters of this
state is subject to chapter 169A. In addition to the applicable sanctions under chapter 169A,
a person who is convicted of violating section 169A.20 or an ordinance in conformity with
it while operating a motorboat, shall be prohibited from operating a motorboat on the waters
of this state for a period of 90 days between May 1 and October 31, extending over two
consecutive years if necessary. If the person operating the motorboat refuses to comply with
a lawful demand to submit to testing under sections 169A.50 to 169A.53 or 171.177, or an
ordinance in conformity with it, the person shall be prohibited from operating a motorboat
for a period of one year. The commissioner shall notify the person of the period during
which the person is prohibited from operating a motorboat.

(d) Administrative and judicial review of the operating privileges prohibition is governed
by section 97B.066, subdivisions 7 to 9, if the person does not have a prior impaired driving
conviction or prior license revocation, as defined in section 169A.03. Otherwise,
administrative and judicial review of the prohibition
is governed by section 169A.53 or
171.177.

(e) The court shall promptly forward to the commissioner and the Department of Public
Safety copies of all convictions and criminal and civil sanctions imposed under: (1) this
section and chapters; (2) chapter 169 and relating to motorboats; (3) chapter 169A relating
to motorboats
; and (4) section 171.177.

(f) A person who violates paragraph (a) or (b), or an ordinance in conformity with either
of them, is guilty of a misdemeanor.

(g) For purposes of this subdivision, a motorboat "in operation" does not include a
motorboat that is anchored, beached, or securely fastened to a dock or other permanent
mooring, or a motorboat that is being rowed or propelled by other than mechanical means.

EFFECTIVE DATE.

This section is effective August 1, 2018, and applies to crimes
committed on or after that date.

Sec. 21.

Minnesota Statutes 2016, section 88.10, is amended by adding a subdivision to
read:


Subd. 3.

Wildland firefighters; training and licensing.

Forest officers and all
individuals employed as wildland firefighters under this chapter are not subject to the
requirements of chapter 299N.

Sec. 22.

Minnesota Statutes 2016, section 88.75, subdivision 1, is amended to read:


Subdivision 1.

Misdemeanor offenses; damages; injunctive relief.

(a) Any person
who violates any of the provisions of sections 88.03 to 88.22 for which no specific penalty
is therein prescribed shall be guilty of a misdemeanor and be punished accordingly.

(b) Failure by any person to comply with any provision or requirement of sections 88.03
to 88.22 to which such person is subject shall be deemed a violation thereof.

(c) Any person who violates any provisions of sections 88.03 to 88.22, in addition to
any penalties therein prescribed, or hereinbefore in this section prescribed, for such violation,
shall also be liable in full damages to any and every person suffering loss or injury by reason
of such violation, including liability to the state, and any of its political subdivisions, for
all expenses incurred in fighting or preventing the spread of, or extinguishing, any fire
caused by, or resulting from, any violation of these sections. Notwithstanding any statute
to the contrary, an attorney who is licensed to practice law in Minnesota and is an employee
of the Department of Natural Resources may represent the commissioner in proceedings
under this subdivision that are removed to district court from conciliation court.
All expenses
so collected by the state shall be deposited in the general fund. When a fire set by any person
spreads to and damages or destroys property belonging to another, the setting of the fire
shall be prima facie evidence of negligence in setting and allowing the same to spread.

(d) At any time the state, or any political subdivision thereof, either of its own motion,
or at the suggestion or request of the director, may bring an action in any court of competent
jurisdiction to restrain, enjoin, or otherwise prohibit any violation of sections 88.03 to 88.22,
whether therein described as a crime or not, and likewise to restrain, enjoin, or prohibit any
person from proceeding further in, with, or at any timber cutting or other operations without
complying with the provisions of those sections, or the requirements of the director pursuant
thereto; and the court may grant such relief, or any other appropriate relief, whenever it
shall appear that the same may prevent loss of life or property by fire, or may otherwise aid
in accomplishing the purposes of sections 88.03 to 88.22.

Sec. 23.

Minnesota Statutes 2016, section 89.551, is amended to read:


89.551 APPROVED FIREWOOD REQUIRED.

(a) After the commissioner issues an order under paragraph (b), a person may not possess
firewood on land administered by the commissioner of natural resources unless the firewood:

(1) was obtained from a firewood distribution facility located on land administered by
the commissioner;

(2) was obtained from a firewood dealer who is selling firewood that is approved by the
commissioner under paragraph (b); or

(3) has been approved by the commissioner of natural resources under paragraph (b).

(b) The commissioner of natural resources shall, by written order published in the State
Register, approve firewood for possession on lands administered by the commissioner. The
order is not subject to the rulemaking provisions of chapter 14, and section 14.386 does not
apply.

(c) A violation under this section is subject to confiscation of firewood and after May
1, 2008, confiscation
and a $100 penalty. A firewood dealer shall be subject to confiscation
and assessed a $100 penalty for each sale of firewood not approved under the provisions
of this section and sold for use on land administered by the commissioner.

(d) For the purposes of this section, "firewood" means any wood that is intended for use
in a campfire, as defined in section 88.01, subdivision 25.

Sec. 24.

Minnesota Statutes 2016, section 97A.051, subdivision 2, is amended to read:


Subd. 2.

Summary of fish and game laws.

(a) The commissioner shall prepare a
summary of the hunting and fishing laws and rules and deliver a sufficient supply to license
vendors to furnish one copy to each person obtaining a hunting, fishing, or trapping license.

(b) At the beginning of the summary, under the heading "Trespass," the commissioner
shall summarize the trespass provisions under sections 97B.001 to 97B.945, state that
conservation officers and peace officers must enforce the trespass laws, and state the penalties
for trespassing.

(c) In the summary the commissioner shall, under the heading "Duty to Render Aid,"
summarize the requirements under section 609.662 and state the penalties for failure to
render aid to a person injured by gunshot.

Sec. 25.

Minnesota Statutes 2017 Supplement, section 97A.075, subdivision 1, is amended
to read:


Subdivision 1.

Deer, bear, and lifetime licenses.

(a) For purposes of this subdivision,
"deer license" means a license issued under section 97A.475, subdivisions 2, clauses (5),
(6), (7), (13), (14), and (15); 3, paragraph (a), clauses (2), (3), (4), (10), (11), and (12); and
8, paragraph (b), and licenses issued under section 97B.301, subdivision 4.

(b) $16 from each annual deer license issued under section 97A.475, subdivisions 2,
clauses (5), (6), and (7); 3, paragraph (a), clauses (2), (3), and (4); and 8, paragraph (b);
$2
from each annual deer license and $2 issued under sections 97A.475, subdivisions 2, clauses
(13), (14), and (15); and 3, paragraph (a), clauses (10), (11), and (12); and 97B.301,
subdivision 4; $16
annually from the lifetime fish and wildlife trust fund, established in
section 97A.4742, for each license issued to a person 18 years of age or older under section
97A.473, subdivision 4,; and $2 annually from the lifetime fish and wildlife trust fund for
each license issued to a person under 18 years of age under section 97A.473, subdivision
4,
shall be credited to the deer management account and is appropriated to the commissioner
for deer habitat improvement or deer management programs
. The deer management account
is established as an account in the game and fish fund and may be used only for deer habitat
improvement or deer management programs.

(c) $1 from each annual deer license and each bear license and $1 annually from the
lifetime fish and wildlife trust fund, established in section 97A.4742, for each license issued
under section 97A.473, subdivision 4, shall be credited to the deer and bear management
account and is appropriated to the commissioner for deer- and bear-management programs,
including a computerized licensing system.

(d) Fifty cents from each deer license is credited to the emergency deer feeding and wild
Cervidae health-management account and is appropriated for emergency deer feeding and
wild Cervidae health management. Money appropriated for emergency deer feeding and
wild Cervidae health management is available until expended.

When the unencumbered balance in the appropriation for emergency deer feeding and
wild Cervidae health management exceeds $2,500,000 at the end of a fiscal year, the
unencumbered balance in excess of $2,500,000 is canceled and available for deer- and
bear-management programs and computerized licensing.

Sec. 26.

[97A.409] VOTER REGISTRATION INFORMATION.

(a) On the Department of Natural Resources online license sales Web site for purchasing
a resident license to hunt or fish that is required under the game and fish laws, the
commissioner must include the voter registration eligibility requirements, a description of
how to register to vote before or on election day, and a direct link to the secretary of state's
online voter registration Web site. The information and link must be easily readable and
displayed in a prominent location.

(b) In the printed and digital versions of fishing regulations and hunting and trapping
regulations, the commissioner must include the voter registration eligibility requirements,
a description of how to register to vote before or on election day, and a link to the secretary
of state's online voter registration Web page. In addition, the commissioner must include a
voter registration application in the printed and digital versions of fishing regulations and
hunting and trapping regulations.

(c) The secretary of state must provide the required voter registration information to the
commissioner. The secretary of state must prepare and approve an alternate form of the
voter registration application to be used in the regulations.

EFFECTIVE DATE.

Paragraph (a) is effective August 1, 2018, and applies to licenses
issued on or after March 1, 2019. Paragraph (b) is effective August 1, 2018, and applies to
printed and digital versions of regulations updated on or after that date.

Sec. 27.

Minnesota Statutes 2016, section 97A.433, subdivision 4, is amended to read:


Subd. 4.

Discretionary separate selection; eligibility.

(a) The commissioner may
conduct a separate selection for up to 20 percent of the elk licenses to be issued for an area.
Only owners of, and tenants living on, at least 160 acres of agricultural or grazing land in
the area, and their family members, are eligible for the separate selection. Persons that are
unsuccessful in a separate selection must be included in the selection for the remaining
licenses. Persons who obtain an elk license in a separate selection must allow public elk
hunting on their land during the elk season for which the license is valid
may sell the license
to any Minnesota resident eligible to hunt big game for no more than the original cost of
the license
.

(b) The commissioner may by rule establish criteria for determining eligible family
members under this subdivision.

Sec. 28.

Minnesota Statutes 2016, section 97A.433, subdivision 5, is amended to read:


Subd. 5.

Mandatory separate selection.

The commissioner must conduct a separate
selection for 20 percent of the elk licenses to be issued each year. Only individuals who
have applied at least ten times for an elk license and who have never received a license are
eligible for this separate selection. A person who is unsuccessful in a separate selection
under this subdivision must be included in the selection for the remaining licenses.

Sec. 29.

Minnesota Statutes 2016, section 97B.015, subdivision 6, is amended to read:


Subd. 6.

Provisional certificate for persons with permanent physical or
developmental disability.

Upon the recommendation of a course instructor, the
commissioner may issue a provisional firearms safety certificate to a person who satisfactorily
completes the classroom portion of the firearms safety course but is unable to pass the
written or an alternate format exam portion of the course because of a permanent physical
disability or
developmental disability as defined in section 97B.1055, subdivision 1. The
certificate is valid only when used according to section 97B.1055.

Sec. 30.

Minnesota Statutes 2016, section 97B.081, subdivision 3, is amended to read:


Subd. 3.

Exceptions.

(a) It is not a violation of this section for a person to:

(1) cast the rays of a spotlight, headlight, or other artificial light to take raccoons
according to section 97B.621, subdivision 3, or tend traps according to section 97B.931;

(2) hunt fox or coyote from January 1 to March 15 while using a handheld an artificial
light, provided that the person is:

(i) on foot;

(ii) using a shotgun;

(iii) not within a public road right-of-way;

(iv) using a handheld or electronic calling device; and

(v) not within 200 feet of a motor vehicle; or

(3) cast the rays of a handheld artificial light to retrieve wounded or dead big game
animals, provided that the person is:

(i) on foot; and

(ii) not in possession of a firearm or bow.

(b) It is not a violation of subdivision 2 for a person to cast the rays of a spotlight,
headlight, or other artificial light to:

(1) carry out any agricultural, safety, emergency response, normal vehicle operation, or
occupation-related activities that do not involve taking wild animals; or

(2) carry out outdoor recreation as defined in section 97B.001 that is not related to
spotting, locating, or taking a wild animal.

(c) Except as otherwise provided by the game and fish laws, it is not a violation of this
section for a person to use an electronic range finder device from one-half hour before
sunrise until one-half hour after sunset while lawfully hunting wild animals.

(d) It is not a violation of this section for a licensed bear hunter to cast the rays of a
handheld artificial light to track or retrieve a wounded or dead bear while possessing a
firearm, provided that the person:

(1) has the person's valid bear-hunting license in possession;

(2) is on foot; and

(3) is following the blood trail of a bear that was shot during legal shooting hours.

Sec. 31.

Minnesota Statutes 2016, section 97B.1055, is amended to read:


97B.1055 HUNTING BY PERSONS WITH A PERMANENT PHYSICAL OR
DEVELOPMENTAL DISABILITY.

Subdivision 1.

Definitions.

For purposes of this section and section 97B.015, subdivision
6
,:

(1) "person with developmental disability" means a person who has been diagnosed as
having substantial limitations in present functioning, manifested as significantly subaverage
intellectual functioning, existing concurrently with demonstrated deficits in adaptive behavior,
and who manifests these conditions before the person's 22nd birthday.;

A (2) "person with a related condition" means a person who meets the diagnostic
definition under section 252.27, subdivision 1a.; and

(3) "person with a permanent physical disability" means a person who has a physical
disability that prevents them from being able to navigate natural terrain or hold a firearm
for the purpose of a required field component for the firearms safety training program under
section 97B.020.

Subd. 2.

Obtaining a license.

(a) Notwithstanding section 97B.020, a person with a
permanent physical disability or
developmental disability may obtain a firearms hunting
license with a provisional firearms safety certificate issued under section 97B.015,
subdivision 6
.

(b) Any person accompanying or assisting a person with a permanent physical disability
or
developmental disability under this section must possess a valid firearms safety certificate
issued by the commissioner.

Subd. 3.

Assistance required.

A person who obtains a firearms hunting license under
subdivision 2 must be accompanied and assisted by a parent, guardian, or other adult person
designated by a parent or guardian when hunting. A person who is not hunting but is solely
accompanying and assisting a person with a permanent physical disability or developmental
disability need not obtain a hunting license.

Subd. 4.

Prohibited activities.

(a) This section does not entitle a person to possess a
firearm if the person is otherwise prohibited from possessing a firearm under state or federal
law or a court order.

(b) No person shall knowingly authorize or permit a person, who by reason of a permanent
physical disability or
developmental disability is incapable of safely possessing a firearm,
to possess a firearm to hunt in the state or on any boundary water of the state.

Sec. 32.

Minnesota Statutes 2016, section 97C.345, subdivision 3a, is amended to read:


Subd. 3a.

Cast nets for gizzard shad.

(a) Cast nets may be used only to take gizzard
shad for use as bait for angling:

(1) from July 1 to November 30; and

(2) from the Minnesota River downstream of Granite Falls, Mississippi River downstream
of St. Anthony Falls, and the St. Croix River downstream of the dam at Taylors Falls,
including portions described as Minnesota-Wisconsin boundary waters in Minnesota Rules,
part 6266.0500, subpart 1, items A and B, that are listed as infested waters as allowed under
section 84D.03, subdivision 3.

(b) Cast nets used under this subdivision must be monofilament and may not exceed
seven five feet in diameter radius, and mesh size must be from three-eighths to five-eighths
inch bar measure. No more than two cast nets may be used at one time.

(c) This subdivision expires December 1, 2017. The commissioner must report to the
chairs and ranking minority members of the house of representatives and senate committees
with jurisdiction over environment and natural resources by March 1, 2018, on the number
of permits issued, conservation impacts from the use of cast nets, and recommendations for
any necessary changes in statutes or rules.

EFFECTIVE DATE.

This section is effective retroactively from December 1, 2017.

Sec. 33.

Minnesota Statutes 2016, section 103B.3369, subdivision 5, is amended to read:


Subd. 5.

Financial assistance.

A base grant, contract, or payment may be awarded to a
county or other local unit of government that provides a match utilizing a water
implementation tax or other local source. A water implementation tax that a county or other
local unit of government
intends to use as a match to the base grant must be levied at a rate
sufficient to generate a minimum amount determined by the board. The board may award
performance-based or watershed-based grants, contracts, or payments to local units of
government that are responsible for implementing elements of applicable portions of
watershed management plans, comprehensive plans, local water management plans, or
comprehensive watershed management plans, developed or amended, adopted and approved,
according to chapter 103B, 103C, or 103D. Upon request by a local government unit, the
board may also award performance-based grants to local units of government to carry out
TMDL implementation plans as provided in chapter 114D, if the TMDL implementation
plan has been incorporated into the local water management plan according to the procedures
for approving comprehensive plans, watershed management plans, local water management
plans, or comprehensive watershed management plans under chapter 103B, 103C, or 103D,
or if the TMDL implementation plan has undergone a public review process. Notwithstanding
section 16A.41, the board may award performance-based grants, contracts, or payments on
an advanced basis. The fee authorized in section 40A.152 may be used as a local match or
as a supplement to state funding to accomplish implementation of comprehensive plans,
watershed management plans, local water management plans, or comprehensive watershed
management plans under this chapter and chapter 103C or 103D.

Sec. 34.

Minnesota Statutes 2016, section 103B.3369, subdivision 9, is amended to read:


Subd. 9.

Performance-based Criteria.

(a) The board shall must develop and utilize
performance-based criteria for local water resources restoration, protection, and management
programs and projects. The criteria may include but are not limited to science-based
assessments, organizational capacity, priority resource issues, community outreach and
support, partnership potential, potential for multiple benefits, and program and project
delivery efficiency and effectiveness.

(b) Notwithstanding paragraph (a), the board may develop and utilize eligibility criteria
for base amounts of state funding to local governments.

Sec. 35.

[103B.461] RED RIVER BASIN COMMISSION.

Subdivision 1.

Purposes.

The Red River Basin Commission was created to:

(1) facilitate transboundary and basin-wide dialogue and consultation with citizens, land
users, organizations, and governments; and

(2) coordinate basin-wide interstate and international efforts on water management,
including but not limited to flood mitigation, water quality, water supply, drainage, aquatic
health, and recreation.

Subd. 2.

Membership.

The Red River Basin Commission must have basin-wide
representation of members and alternates to serve on the commission consistent with the
adopted bylaws of the commission. Selection and terms of members are as defined in the
commission's bylaws.

Subd. 3.

Duties.

The Red River Basin Commission must:

(1) develop and coordinate comprehensive water management goals for the Red River
basin by aligning the work plans in the major watersheds in the states of Minnesota, North
Dakota, and South Dakota and the Canadian province of Manitoba;

(2) advise on developing and using systems to monitor and evaluate the Red River basin
and incorporating the data obtained from these systems into planning and implementation
processes;

(3) conduct public meetings at locations in the Red River basin regarding the public's
perspective on water resource issues, needs, and priorities in the basin;

(4) conduct an ongoing information and education program on water management in
the Red River basin, including an annual conference;

(5) advise on developing projects in the major watersheds that are scientifically sound,
have landowner and local government support, and reduce potential flood damages and
inputs of pollutants into the Red River;

(6) develop and implement a framework plan for natural resources and provide periodic
budget requests and reports to the governors of Minnesota, North Dakota, and South Dakota,
to the premier of Manitoba, and to the respective legislatures, provincial members, and
congressional representatives of the respective states and province regarding progress on
meeting water management goals and funding or policy recommendations;

(7) administer funds for implementing projects and track and report the results achieved
for each project; and

(8) assess the collective work in the Red River basin and make recommendations to the
states of Minnesota, North Dakota, and South Dakota, to the Canadian province of Manitoba,
and to their respective legislatures, provincial members, and congressional representatives
on the actions needed to sustain or accelerate components of the framework plan for natural
resources in the Red River basin and the major watersheds of the Red River basin.

Sec. 36.

Minnesota Statutes 2016, section 103B.801, subdivision 2, is amended to read:


Subd. 2.

Program purposes.

The purposes of the comprehensive watershed management
plan program under section 103B.101, subdivision 14, paragraph (a), are to:

(1) align local water planning purposes and procedures under this chapter and chapters
103C and 103D on watershed boundaries to create a systematic, watershed-wide,
science-based approach to watershed management;

(2) acknowledge and build off existing local government structure, water plan services,
and local capacity;

(3) incorporate and make use of data and information, including watershed restoration
and protection strategies under section 114D.26, which may serve to fulfill all or some of
the requirements under chapter 114D
;

(4) solicit input and engage experts from agencies, citizens, and stakeholder groups;

(5) focus on implementation of prioritized and targeted actions capable of achieving
measurable progress; and

(6) serve as a substitute for a comprehensive plan, local water management plan, or
watershed management plan developed or amended, approved, and adopted, according to
this chapter or chapter 103C or 103D.

Sec. 37.

Minnesota Statutes 2016, section 103B.801, subdivision 5, is amended to read:


Subd. 5.

Timelines; administration.

(a) The board shall develop and adopt, by June
30, 2016, a transition plan for development, approval, adoption, and coordination of plans
consistent with sec