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SF 3656

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 04/27/2018 10:39am

KEY: stricken = removed, old language. underscored = added, new language.

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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 Metropolitan Council budgeting requirements;
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; 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; 169.974, subdivision 2; 169A.24, 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.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, 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.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.33,
subdivisions 1, 2; 462A.37, subdivisions 1, 2; 473.13, subdivisions 1, 4, by adding
subdivisions; 473.146, subdivisions 1, 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; 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; 298.292, 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; 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.

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

ARTICLE 1

STATE GOVERNMENT

Section 1.

Minnesota Statutes 2016, section 3.855, subdivision 1a, is amended to read:


Subd. 1a.

Definitions.

(a) "Commission" means the Legislative Coordinating Commission
or a legislative commission established by the coordinating commission, as provided in
section 3.305, subdivision 6, to exercise the powers and discharge the duties of the
coordinating commission under this section or other law requiring action by the coordinating
commission on matters of public employment or compensation.

(b) "Ratification" must be by law. If a law makes ratification contingent upon the
fulfillment of an express condition, or has an effective date contingent upon the fulfillment
of an express condition, then ratification occurs on the date that the express condition has
been fulfilled or on the effective date, whichever is later. An express condition may include
the enactment of a law. The commissioner of management and budget shall determine
whether an express condition has been fulfilled.

Sec. 2.

Minnesota Statutes 2016, section 3.855, subdivision 2, is amended to read:


Subd. 2.

State employee negotiations.

(a) The commissioner of management and budget
shall regularly advise the commission on the progress of collective bargaining activities
with state employees under the state Public Employment Labor Relations Act. During
negotiations, the commission may make recommendations to the commissioner as it deems
appropriate but no recommendation shall impose any obligation or grant any right or privilege
to the parties.

(b) The commissioner shall submit to the chair of the commission any negotiated
collective bargaining agreements, arbitration awards, compensation plans, or salaries for
legislative approval or disapproval. Negotiated agreements shall be submitted within five
days of the date of approval by the commissioner or the date of approval by the affected
state employees, whichever occurs later. Arbitration awards shall be submitted within five
days of their receipt by the commissioner. If the commission disapproves a collective
bargaining agreement, award, compensation plan, or salary, the commission shall specify
in writing to the parties those portions with which it disagrees and its reasons. If the
commission approves a collective bargaining agreement, award, compensation plan, or
salary, it shall submit the matter to the legislature to be accepted or rejected under this
section.

(c) The commissioner shall submit to the chair of the commission any negotiated or
otherwise proposed changes affecting the provision of insurance to state employees, including
any changes to coverage and costs. Any changes must be submitted to the commission
within five days of approval of the commissioner and at least 45 days before submitting a
collective bargaining agreement or compensation plan that incorporates the proposed changes
to the insurance program. If the commission disapproves changes to the state employee
insurance program, the commission shall specify in writing to the commissioner those
portions with which it disagrees and its reasons. The commissioner must not submit to the
commission any collective bargaining agreement or compensation plan that includes any
changes to state employee insurance previously disapproved by the commission unless the
agreement or plan incorporates changes identified by the commission or otherwise addresses
the commission's objections to the changes to the insurance program. The requirements in
this paragraph do not apply to the premiums for insurance that are determined solely by the
commissioner of management and budget and are not negotiated with representatives of
employees.

(c) (d) When the legislature is not in session, the commission may give interim approval
to a negotiated collective bargaining agreement, salary, compensation plan, or arbitration
award. When the legislature is not in session, failure of the commission to disapprove a
collective bargaining agreement or arbitration award within 30 days constitutes approval.
The commission shall submit the negotiated collective bargaining agreements, salaries,
compensation plans, or arbitration awards for which it has provided approval to the entire
legislature for ratification at a special legislative session called to consider them or at its
next regular legislative session as provided in this section. Approval or disapproval by the
commission is not binding on the legislature.

(d) (e) When the legislature is not in session, the proposed collective bargaining
agreement, arbitration decision, salary, or compensation plan must be implemented upon
its approval by the commission, and state employees covered by the proposed agreement
or arbitration decision do not have the right to strike while the interim approval is in effect.
Wages and economic fringe benefit increases provided for in the agreement or arbitration
decision paid in accordance with the interim approval by the commission are not affected,
but the wages or benefit increases must cease to be paid or provided effective upon the
rejection of the agreement, arbitration decision, salary, or compensation plan, or upon
adjournment of the legislature without acting on it.

Sec. 3.

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. 4.

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. 5.

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. 6.

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


Subd. 3.

Uniform procedures.

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

EFFECTIVE DATE.

This section is effective January 8, 2019, provided that the uniform
procedures may be approved by the oversight commission as early as July 1, 2018.

Sec. 7.

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. 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 paragraph 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 January 8, 2019.

Sec. 8.

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


Subd. 4a.

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 January 6, 2020.

Sec. 9.

[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 state budget director, 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.

Sec. 10.

[3.9736] EVALUATION OF INFORMATION TECHNOLOGY PROJECTS.

Subdivision 1.

Definition.

For purposes of this section, "information technology project"
means a project performed by the Division of Information Technology under a service-level
agreement for 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. 11.

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 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) 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.

Sec. 12.

Minnesota Statutes 2017 Supplement, section 3.98, subdivision 1, as amended
by article 1, section 11, is amended to read:


Subdivision 1.

Preparation.

The head or chief administrative officer of each department
or agency of the state government, including the Supreme Court, shall, in consultation with
the Legislative Budget Office and consistent with the standards, guidelines, and procedures
adopted under section 3.8853,
prepare a fiscal note 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.

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 January 6, 2020.

Sec. 13.

Minnesota Statutes 2017 Supplement, section 3.98, subdivision 4, is amended to
read:


Subd. 4.

Uniform procedure.

The Legislative Budget Office commissioner of
management and budget
shall prescribe a uniform procedure to govern the departments and
agencies of the state in complying with the requirements of this section.

EFFECTIVE DATE.

This section is effective the day following final enactment and
supersedes the amendment under Laws 2017, First Special Session chapter 4, article 2,
section 8.

Sec. 14.

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. 15.

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. The data must
be supplied according to any procedures adopted under section 3.8853, subdivision 3,
including any 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 January 8, 2019.

Sec. 16.

[14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR
REMODELING; LEGISLATIVE NOTICE AND REVIEW.

Subdivision 1.

Definition.

As used in this section, "residential construction" means the
new construction or remodeling of any building subject to the Minnesota Residential Code.

Subd. 2.

Impact on housing; agency determination.

(a) An agency must determine if
implementation of a proposed rule, or any portion of a proposed rule, will, on average,
increase the cost of residential construction by $1,000 or more per unit, and whether the
proposed rule meets the state regulatory policy objectives described in section 14.002. In
calculating the cost of implementing a proposed rule, the agency may consider the impact
of other related proposed rules on the overall cost of residential construction. If applicable,
the agency may include offsetting savings that may be achieved through implementation
of related proposed rules in its calculation under this subdivision.

(b) The agency must make the determination required by paragraph (a) before the close
of the hearing record, or before the agency submits the record to the administrative law
judge if there is no hearing. Upon request of a party affected by the proposed rule, the
administrative law judge must review and approve or disapprove an agency's determination
under this subdivision.

Subd. 3.

Notice to legislature; legislative review.

If the agency determines that the
impact of a proposed rule meets or exceeds the cost threshold provided in subdivision 2, or
if the administrative law judge separately confirms the cost of any portion of a rule exceeds
the cost threshold provided in subdivision 2, the agency must notify, in writing, the chair
and ranking minority members of the policy committees of the house of representatives and
the senate with jurisdiction over the subject matter of the proposed rule within ten days of
the determination. The agency shall not adopt the proposed rule until after the adjournment
of the next session of the legislature convened on or after the date that notice required in
this subdivision is given to the chairs and ranking minority members.

EFFECTIVE DATE.

This section is effective August 1, 2018, and applies to
administrative rules for which a request for comment is published on or after that date.

Sec. 17.

[16A.104] FEDERAL FUNDS REPORT.

The commissioner must report to the chairs and ranking minority members of the house
of representatives Ways and Means and senate Finance Committee on receipt of federal
funds by the state. The report must be submitted with the governor's detailed operating
budget in accordance with section 16A.11, subdivision 1, in an odd-numbered year and
within ten days prior to the start of the regular session in accordance with section 3.3005,
subdivision 2, in an even-numbered year. The report must include the total amount of federal
funds received by the state in the fiscal year ending the prior June 30 and the total amount
of federal funds anticipated to be received by the state in the current fiscal year. For each
category of federal funding, the report must list:

(1) the name of the federal grant or federal funding source, the federal agency providing
the funding, a federal identification number, a description of the purpose of the federal
funding, and an electronic address at which additional relevant documents related to the
grant or funding program may be found;

(2) the amount of federal funding the state received through that grant or source in the
fiscal year ending the prior June 30 and the total amount of federal funds anticipated to be
received by the state in the current fiscal year;

(3) if there is a federal maintenance-of-effort requirement associated with the funding;

(4) the number of full-time equivalent state employees assigned to implement the federal
funding's purpose;

(5) the amount of funds spent, as a match or otherwise, in conjunction with receipt of
the federal funding in the fiscal year ending the prior June 30, and the amount of funds
anticipated to be spent in the current fiscal year, listing state and nonstate sources of spent
funds separately; and

(6) the maximum amount of the federal funds that may be used for indirect costs
associated with implementing the funds' purpose.

Sec. 18.

Minnesota Statutes 2016, section 16E.01, subdivision 1, is amended to read:


Subdivision 1.

Creation; chief information officer.

The Office of MN.IT Services
Division of Information Technology
, referred to in this chapter as the "office," "division,"
is an agency in the executive branch headed by a under the supervision of the commissioner,
who also is the state chief information officer
of administration. The appointment of the
commissioner is subject to the advice and consent of the senate under section 15.066.

Sec. 19.

Minnesota Statutes 2016, section 16E.015, is amended by adding a subdivision
to read:


Subd. 2a.

Commissioner.

"Commissioner" means the commissioner of administration.

Sec. 20.

Minnesota Statutes 2016, section 16E.016, is amended to read:


16E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY SERVICES
AND EQUIPMENT.

(a) The chief information officer is responsible for providing or entering into managed
services contracts for the provision, improvement, and development of the following
information technology systems and services to state agencies:

(1) state data centers;

(2) mainframes including system software;

(3) servers including system software;

(4) desktops including system software;

(5) laptop computers including system software;

(6) (4) a data network including system software;

(7) database, (5) electronic mail, office systems, reporting, and other standard software
tools
;

(8) business application software and related technical support services;

(9) (6) help desk for the components listed in clauses (1) to (8) (5);

(10) (7) maintenance, problem resolution, and break-fix for the components listed in
clauses (1) to (8) (5); and

(11) (8) regular upgrades and replacement for the components listed in clauses (1) to
(8); and (5).

(12) network-connected output devices.

(b) The chief information officer is responsible for providing or entering into managed
services contracts for the provision, improvement, and development of the following
information technology systems and services to a state agency, at the request of the agency:

(1) desktops including system software;

(2) laptop computers including system software;

(3) database, office systems, reporting, and other standard software tools;

(4) business application software and related technical support services;

(5) help desk for the components listed in clauses (1) to (4);

(6) maintenance, problem resolution, and break-fix for the components listed in clauses
(1) to (4);

(7) regular upgrades and replacement for the components listed in clauses (1) to (4); and

(8) network-connected output devices.

(b) (c) All state agency employees whose work primarily involves functions specified
in paragraph (a) are employees of the Office of MN.IT Services in the Division of Information
Technology under the Department of Administration
. This includes employees who directly
perform the functions in paragraph (a), as well as employees whose work primarily involves
managing, supervising, or providing administrative services or support services to employees
who directly perform these functions. The chief information officer may assign employees
of the office division to perform work exclusively for another state agency.

(c) (d) Subject to sections 16C.08 and 16C.09, the chief information officer may allow
a state agency to obtain services specified in paragraph (a) through a contract with an outside
vendor when the chief information officer and the agency head agree that a contract would
provide best value, as defined in section 16C.02, under the service-level agreement. The
chief information officer must require that Agency contracts with outside vendors ensure
that systems and services are compatible with standards established by the Office of MN.IT
Services
the Division of Information Technology.

(d) (e) The Minnesota State Retirement System, the Public Employees Retirement
Association, the Teachers Retirement Association, the State Board of Investment, the
Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide Radio
Board are not state agencies for purposes of this section.

EFFECTIVE DATE.

This section is effective July 1, 2018, and applies to contracts
entered into on or after that date.

Sec. 21.

Minnesota Statutes 2016, section 16E.02, is amended to read:


16E.02 OFFICE OF MN.IT SERVICES DIVISION OF INFORMATION
TECHNOLOGY
; STRUCTURE AND PERSONNEL.

Subdivision 1.

Office management and structure.

(a) The chief information officer is
appointed by the governor commissioner, subject to the advice and consent of the senate
under section 15.066
. The chief information officer serves in the unclassified service at the
pleasure of the governor commissioner. The chief information officer must have experience
leading enterprise-level information technology organizations. The chief information officer
is the state's chief information officer and information and telecommunications technology
advisor to the governor.

(b) The chief information officer may appoint other employees of the office division.
The staff of the office division must include individuals knowledgeable in information and
telecommunications technology systems and services and individuals with specialized
training in information security and accessibility.

(c) The chief information officer may appoint a Webmaster responsible for the supervision
and development of state Web sites under the control of the office division. The Webmaster,
if appointed, shall ensure that these Web sites are maintained in an easily accessible format
that is consistent throughout state government and are consistent with the accessibility
standards developed under section 16E.03, subdivision 9. The Webmaster, if appointed,
shall provide assistance and guidance consistent with the requirements of this paragraph to
other state agencies for the maintenance of other Web sites not under the direct control of
the office division.

Subd. 1a.

Accountability.

The chief information officer reports to the governor
commissioner
. The chief information officer must consult regularly with the commissioners
of administration, management and budget, human services, revenue, and other
commissioners as designated by the governor, on technology projects, standards, and services
as well as management of resources and staff utilization.

Sec. 22.

Minnesota Statutes 2017 Supplement, section 16E.0466, subdivision 1, is amended
to read:


Subdivision 1.

Consultation required.

(a) Every state agency with an information or
telecommunications project must consult with the Office of MN.IT Services Division of
Information Technology
to determine the information technology cost of the project if the
division is selected by an agency to perform the project
. Upon agreement between the
commissioner of a particular agency and the chief information officer, the agency must
transfer the information technology cost portion of the project to the Office of MN.IT
Services
commissioner of administration. Service level agreements must document all
project-related transfers under this section. Those agencies specified in section 16E.016,
paragraph (d) (e), are exempt from the requirements of this section.

(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating balance
appropriated to a state agency may be transferred to the information and telecommunications
technology systems and services account for the information technology cost of a specific
project, subject to the review of the Legislative Advisory Commission, under section 16E.21,
subdivision 3
.

Sec. 23.

Minnesota Statutes 2016, section 16E.055, is amended to read:


16E.055 ELECTRONIC GOVERNMENT SERVICES.

A state agency that implements electronic government services for fees, licenses, sales,
or other purposes must may use the single entry site created by the chief information officer
for all agencies to use for electronic government services.

Sec. 24.

Minnesota Statutes 2016, section 16E.14, is amended to read:


16E.14 MN.IT SERVICES INFORMATION TECHNOLOGY REVOLVING
FUND.

Subdivision 1.

Creation.

The MN.IT services information technology revolving fund
is created in the state treasury.

Subd. 2.

Appropriation and uses of fund.

Money in the MN.IT services information
technology
revolving fund is appropriated annually to the chief information officer
commissioner
to operate information and telecommunications services, including
management, consultation, and design services.

Subd. 3.

Reimbursements.

Except as specifically provided otherwise by law, each
agency shall reimburse the MN.IT services information technology revolving fund for the
cost of all services, supplies, materials, labor, and depreciation of equipment, including
reasonable overhead costs, which the chief information officer commissioner is authorized
and directed to furnish an agency. The chief information officer commissioner shall report
the rates to be charged for the revolving fund no later than July 1 each June 1 each
even-numbered calendar
year to the chair of the committee or division in the senate and
house of representatives with primary jurisdiction over the budget of the Office of MN.IT
Services
Division of Information Technology. These rates shall apply for the biennium
beginning July 1 of the following calendar year
.

Subd. 4.

Cash flow.

The commissioner of management and budget shall make appropriate
transfers to the revolving fund when requested by the chief information officer. The chief
information officer may make allotments and encumbrances in anticipation of such transfers.
In addition, the chief information officer commissioner, with the approval of the
commissioner of management and budget, may require an agency to make advance payments
to the revolving fund sufficient to cover the office's division's estimated obligation for a
period of at least 60 days. All reimbursements and other money received by the chief
information officer
commissioner under this section must be deposited in the MN.IT services
information technology revolving fund.

Subd. 5.

Liquidation.

If the MN.IT services information technology revolving fund is
abolished or liquidated, the total net profit from the operation of the fund must be distributed
to the various funds from which purchases were made. The amount to be distributed to each
fund must bear to the net profit the same ratio as the total purchases from each fund bears
to the total purchases from all the funds during the same period of time.

EFFECTIVE DATE.

This section is effective July 1, 2018. The commissioner shall
report rates to be charged for the revolving fund no later than July 1, 2018, for the biennium
beginning July 1, 2019.

Sec. 25.

Minnesota Statutes 2016, section 16E.18, subdivision 4, is amended to read:


Subd. 4.

Program participation.

The chief information officer may require request the
participation of state agencies and, the commissioner of education, and may request the
participation of
the Board of Regents of the University of Minnesota, and the Board of
Trustees of the Minnesota State Colleges and Universities, in the planning and
implementation of the network to provide interconnective technologies. The Board of
Trustees of the Minnesota State Colleges and Universities may opt out of participation as
a subscriber on the network, in whole or in part, if the board is able to secure
telecommunications services from another source that ensures it will achieve the policy
objectives set forth in subdivision 1.

Sec. 26.

Minnesota Statutes 2016, section 16E.18, subdivision 6, is amended to read:


Subd. 6.

Rates.

(a) The chief information officer shall establish reimbursement rates in
cooperation with the commissioner of management and budget to be billed to participating
agencies and educational institutions sufficient to cover the operating, maintenance, and
administrative costs of the system.

(b) An invoice or statement to an agency from the chief information officer must include
clear descriptions of the services the Office of MN.IT Services has provided. The invoice
or statement must categorize or code services in a manner prescribed by the agency, or the
chief information office must provide supplemental information with an invoice or statement
that categorizes or codes all services reflected on the invoice or statement in a manner
prescribed by the agency.

(c) Except as otherwise provided in subdivision 4, a direct appropriation made to an
educational institution for usage costs associated with the state information infrastructure
must only be used by the educational institution for payment of usage costs of the network
as billed by the chief information officer.

Sec. 27.

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. 28.

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. 29.

Minnesota Statutes 2016, section 179A.06, subdivision 3, is amended to read:


Subd. 3.

Fair share fee.

An exclusive representative may shall not require employees
who are not members of the exclusive representative to contribute a fair share fee for services
rendered by the exclusive representative. The fair share fee must be equal to the regular
membership dues of the exclusive representative, less the cost of benefits financed through
the dues and available only to members of the exclusive representative. In no event may
the fair share fee exceed 85 percent of the regular membership dues. The exclusive
representative shall provide advance written notice of the amount of the fair share fee to
the employer and to unit employees who will be assessed the fee. The employer shall provide
the exclusive representative with a list of all unit employees.

A challenge by an employee or by a person aggrieved by the fee must be filed in writing
with the commissioner, the public employer, and the exclusive representative within 30
days after receipt of the written notice. All challenges must specify those portions of the
fee challenged and the reasons for the challenge. The burden of proof relating to the amount
of the fair share fee is on the exclusive representative. The commissioner shall hear and
decide all issues in these challenges.

The employer shall deduct the fee from the earnings of the employee and transmit the
fee to the exclusive representative 30 days after the written notice was provided. If a challenge
is filed, the deductions for a fair share fee must be held in escrow by the employer pending
a decision by the commissioner.

EFFECTIVE DATE.

This section is effective the day following a decision by the
United States Supreme Court holding that public employees who are not members of an
exclusive representative shall not be required to pay fair share fees, but if that decision with
that holding is issued before July 1, 2018, then the effective date is July 1, 2018.

Sec. 30.

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. 31.

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. 32.

Minnesota Statutes 2017 Supplement, section 477A.03, subdivision 2b, is amended
to read:


Subd. 2b.

Counties.

(a) For aids payable in 2018 through 2024, the total aid payable
under section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 shall be
allocated as required under Laws 2014, chapter 150, article 4, section 6. For aids payable
in 2025 and thereafter, the total aid payable under section 477A.0124, subdivision 3, is
$100,795,000. Each calendar year, $500,000 of this appropriation shall be retained by the
commissioner of revenue to make reimbursements to the commissioner of management and
budget for payments made under section 611.27. The reimbursements shall be to defray the
additional costs associated with court-ordered counsel under section 611.27. Any retained
amounts not used for reimbursement in a year shall be included in the next distribution of
county need aid that is certified to the county auditors for the purpose of property tax
reduction for the next taxes payable year.

(b) For aids payable in 2018 and thereafter, the total aid under section 477A.0124,
subdivision 4
, is $130,873,444. The commissioner of revenue shall transfer to the
commissioner of management and budget
$207,000 annually for the cost of preparation of
local impact notes as required by section 3.987, and other local government activities to the
Legislative Coordinating Commission for use by the Legislative Budget Office
.

The commissioner of revenue shall transfer to the commissioner of education $7,000
annually for the cost of preparation of local impact notes for school districts as required by
section 3.987. The commissioner of revenue shall deduct the amounts transferred under this
paragraph from the appropriation under this paragraph. The amounts transferred are
appropriated to the commissioner of management and budget and the commissioner of
education respectively.

EFFECTIVE DATE.

This section is effective July 1, 2019.

Sec. 33.

Laws 2017, First Special Session chapter 4, article 1, section 10, subdivision 1,
is amended to read:


Subdivision 1.

Total Appropriation

$
2,642,000
$
2,662,000
2,643,000

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

The state chief information officer must
prioritize use of appropriations provided by
this section to enhance cybersecurity across
state government.

Sec. 34.

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. 35.

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. 36.

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 January 6, 2020.

Sec. 37.

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 July 1, 2018. The contract
required under this section must be executed no later than November 1, 2018, and must
provide for the Legislative Budget Office to have access to the fiscal note tracking system
from December 15, 2018, to January 5, 2020, and for the transfer of operational control of
the fiscal note tracking system to the Legislative Budget Office on January 6, 2020
.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 38. 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. The designated appointee must convene the first meeting no later than July 15,
2018. The first chair of the Legislative Budget Office Oversight Commission shall be a
member of the senate and shall serve until the commission elects a chair at a meeting in
January 2019.

Sec. 39. LEGISLATIVE BUDGET OFFICE DELIVERY OF FISCAL NOTES AND
LOCAL IMPACT NOTES BEFORE JANUARY 6, 2020.

Subdivision 1.

Management and budget responsibility.

Until January 6, 2020, the
responsibilities of the commissioner of management and budget with regard to fiscal notes
and local impact notes remains the same as on May 1, 2017.

Subd. 2.

Fiscal note request.

Until January 6, 2020, the commissioner of management
and budget must submit to the director of the Legislative Budget Office a daily list of all
new requests for fiscal notes that have been requested since the previous list submitted under
this subdivision. The commissioner must submit the daily fiscal note list at the end of each
business day. For fiscal note requests received between the end of the business day on Friday
and Monday morning, the commissioner shall submit the list on Monday morning.
Notwithstanding the daily list requirement in this subdivision, when the legislature is not
in session, the commissioner shall submit a weekly list of all fiscal notes received during
the previous week.

Subd. 3.

Local impact note request.

Until January 6, 2020, the commissioner of
management and budget will forward to the director of the Legislative Budget Office at the
end of each week a list of all requests for local impact notes that the commissioner has
received since the previous list submitted under this subdivision.

Subd. 4.

Legislative Budget Office sampling.

(a) Until January 6, 2020, the director
of the Legislative Budget Office shall select from among the requests for fiscal notes and
local impact notes a subset for the Legislative Budget Office to coordinate on a test basis.
Within 48 hours of receiving a list of requests from the commissioner of management and
budget, the director shall communicate to the lead nonpartisan fiscal analyst of the senate
and the chief nonpartisan fiscal analyst of the house of representatives whether the Legislative
Budget Office will coordinate a fiscal note or local impact note from the listed requests.
The subset selected by the director must include a cross-section of the jurisdictions of the
standing committees in the house of representatives and senate and must include a
representative number of multiagency fiscal notes. During the 2019 legislative session, the
Legislative Budget Office shall complete coordination of at least 300 fiscal notes and at
least two local impact notes.

(b) By June 30, 2019, the director of the Legislative Budget Office shall deliver a
summary report to the chairs and ranking minority members of the Committee on Finance
in the senate and the Committee on Ways and Means in the house of representatives and to
the lead nonpartisan fiscal analyst of the senate and the chief nonpartisan fiscal analyst of
the house of representatives identifying each fiscal note and local impact note request
received, the subset selected for coordination, the date the director received a list from the
commissioner of management and budget identifying the request, and the date of delivery
of completed notes.

Subd. 5.

Agency coordination.

(a) Until January 6, 2020, the head or chief administrative
officer of each department or agency of the state government, including the Supreme Court,
shall, in consultation with the Legislative Budget Office and consistent with the procedures
adopted under Minnesota Statutes, section 3.8853, prepare a fiscal note 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) 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.

Subd. 6.

Delivery of fiscal notes.

Until January 6, 2020, the director of the Legislative
Budget Office shall timely deliver completed fiscal notes and local impact notes, each clearly
labeled as "LBO-Coordinated Transition-Year Test Note," to the chair of the committee in
the house of representatives or the senate who requested the note and to the chief author of
the bill to which it relates.

Subd. 7.

Legislative Budget Office Oversight Commission performance assessment.

By November 1, 2019, the Legislative Budget Office Oversight Commission shall report
to the chairs and members of the Committee on Finance in the senate and the Committee
on Ways and Means in the house of representatives on the performance of the Legislative
Budget Office in coordinating fiscal notes and local impact notes during the 2019 legislative
session. The report shall consider the timeliness of the delivery of the notes and the quality
of the notes in comparison to the timeliness and quality of the notes coordinated on the same
bills by the commissioner of management and budget, and the cost-effectiveness of the
work of the Legislative Budget Office.

EFFECTIVE DATE.

This section is effective January 8, 2019, and expires on January
6, 2020.

Sec. 40. OFFICE OF MN.IT SERVICES; TRANSFER.

Minnesota Statutes, sections 15.039 and 43A.045, apply to the transfer from the Office
of MN.IT Services to the commissioner of administration.

Sec. 41. WORLD WAR I PLAQUE AUTHORIZED.

The state honors all Minnesota veterans who have honorably and bravely served in the
United States armed forces, both at home and abroad, during World War I. The commissioner
of administration shall place a memorial plaque in the court of honor on the Capitol grounds
to recognize the valiant service of Minnesota veterans who have honorably and bravely
served in the United States armed forces, both at home and abroad, during World War I.
This plaque will replace the current plaque honoring veterans who served abroad during
World War I. The Capitol Area Architectural and Planning Board shall solicit design
submissions from the public. Each design submission must include a commitment to furnish
the plaque. The Capitol Area Architectural and Planning Board shall select a design from
those submitted to use as a basis for final production. The selected design must be approved
by the commissioner of veterans affairs and must be furnished by the person or group who
submitted the design.

Sec. 42. APPROPRIATION AND TRANSFERS; SECRETARY OF STATE.

(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) Of the $207,000 transferred by the commissioner of revenue to the commissioner of
management and budget as provided in Minnesota Statutes, section 477A.03, subdivision
2b, paragraph (b), the commissioner of management and budget shall deposit $150,000 in
fiscal year 2019 into the account established in Minnesota Statutes, section 5.30, for the
purposes authorized under the Omnibus Appropriations Act of 2018, Public Law 115-1410,
and Section 101 of the Help America Vote Act of 2002, Public Law 107-252. This is a
onetime transfer.

(c) $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. 43. APPROPRIATION; DEPARTMENT OF HEALTH.

$33,000 is appropriated in fiscal year 2019 from the state government special revenue
fund to the commissioner of health to perform a cost analysis on rules impacting residential
construction or remodeling as specified in Minnesota Statutes, section 14.1275. This is a
onetime appropriation.

Sec. 44. REVISOR'S INSTRUCTION.

(a) The revisor of statutes shall change "Office of MN.IT Services" to "Division of
Information Technology" and change "commissioner of MN.IT Services" to "commissioner
of administration" wherever these terms occur in Minnesota Statutes. The revisor of statutes
shall change "the office" to "the division" throughout Minnesota Statutes, chapter 16E.

(b) The revisor of statutes shall recodify Minnesota Statutes, chapter 16E, in Minnesota
Statutes, chapter 16B.

Sec. 45. REPEALER.

(a) Minnesota Statutes 2016, section 16E.145, is repealed.

(b) Minnesota Statutes 2016, section 155A.28, subdivisions 1, 3, and 4, are repealed.

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

ARTICLE 2

ENERGY

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the appropriations
in Laws 2017, chapter 94, 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 for fiscal year 2018
are effective June 1, 2018.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. DEPARTMENT OF COMMERCE

Subdivision 1.

Total Appropriation

$
-0-
$
2,150,000
Appropriations by Fund
2018
2019
Special Revenue
-0-
2,150,000

Subd. 2.

Energy Resources

$
-0-
$
2,150,000
Appropriations by Fund
2018
2019
Special Revenue
-0-
2,150,000

$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.

Notwithstanding Minnesota Statutes, section
116C.779, subdivision 1, paragraph (j),
$2,000,000 in fiscal year 2019 is from the
renewable development account under
Minnesota Statutes, section 116C.779, for the
solar energy grants for school districts under
Minnesota Statutes, section 216C.418. This is
a onetime appropriation and is available until
June 30, 2021. Any unexpended funds
remaining after June 30, 2021, cancel to the
renewable development account.

Sec. 3.

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.

ARTICLE 3

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 (f) (e) and (g) (f), 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 2022, 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
$16,000,000 each year the either plant is in operation, and
$7,500,000 each year the plant is not in operation, if ordered by the commission pursuant
to paragraph (i) (h), $7,5000,000 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 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
(f) (e) and (g) (f) 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.

(j) (i) The utility shall file annually with the commission a petition for the recovery of
all funds required to be transferred or withheld under paragraphs (c), (d), and (h), for the
next year through a rider mechanism. The commission shall approve a reasonable cost
recovery schedule for all such funds.

(j) On or before January 15 of each year, the utility shall file a petition with the
commission setting forth the amounts withheld by the utility in the prior year under paragraph
(d) and the amount actually paid in that year for obligations identified in paragraph (d). If
the amount actually paid is less than the amount withheld, the utility shall 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 utility shall add the deficit to the amount withheld
in the current year under paragraph (d). Any surplus at the end of all programs identified
in paragraph (d) shall be returned to the customers of the utility.

(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 shall
be chosen by the public utility unless another method of selection is provided under this
section.
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.

(m) (n) The cost of acquiring the services of the independent third-party expert described
in paragraph (m) and any other costs incurred in administering the advisory group and its
actions as required by this section shall be paid from funds withheld by the public utility
under paragraph (d). The total withheld under this paragraph shall not exceed $500,000 per
year.

(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) (m).

(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:
(1)
projects funded by the account for the prior year and all previous years; (2) cost of
acquiring the services of an independent third-party expert described in paragraph (n); and
(3) any other administrative costs incurred by the utility in administering the advisory group
.
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.

(q) (s) By February 1, 2018, and each February 1 thereafter, the commissioner of
management and budget shall 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.

(r) (t) 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) (u) 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) (v) 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) (w) 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, except the amendments to
paragraphs (c) and (d) are effective January 16, 2021.

Sec. 2.

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


116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.

The utility subject to section 116C.779 shall operate a program to provide solar energy
production incentives for solar energy systems of no more than a total nameplate capacity
of 20 40 kilowatts direct current or less. The program shall be operated for eight consecutive
calendar years commencing in 2014. $5,000,000 shall 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 and not for any other program or purpose. Any unspent
amount allocated in the fifth year is available until December 31 of the sixth year. Beginning
with the allocation in the sixth year and thereafter, any unspent amount remaining at the
end of an allocation year must be transferred to the renewable development account.
Applications submitted in the fifth year may be amended without reapplication for that
portion of a project over a nameplate capacity of 20 kilowatts
. The solar 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. 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 or less does not require the utility to file
a plan with the commissioner. Any plan approved by the commissioner of commerce must
not provide an increased incentive scale 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.

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


Subd. 13b.

Pension rate base.

The commission must allow a public utility to include
in the rate base and recover from ratepayers the costs incurred to contribute to employee
pensions, including (1) accumulated contributions in excess of net periodic benefit costs,
and (2) contributions necessary to comply with the federal Pension Protection Act of 2006
and other applicable federal and state pension funding requirements. A public utility is
authorized to track for future recovery any unrecoverable return of pension rate base costs
and investments at the return on investment level established in the public utility's last
general rate case that have been incurred during the period between general rate cases.

Sec. 4.

Minnesota Statutes 2016, section 216B.1645, is amended by adding a subdivision
to read:


Subd. 2b.

Energy storage system pilot projects.

(a) A public utility may petition the
commission as provided in subdivision 2a to recover costs associated with the implementation
of an energy storage system pilot project, provided the following conditions are met:

(1) the public utility has submitted a report to the commission containing, at a minimum,
the following information regarding the proposed energy storage system pilot project:

(i) the storage technology utilized;

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

(iii) the proposed location;

(iv) the purchasing and installation costs;

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

(vi) the goals the project proposes to achieve, including 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;

(2) the utility has adequately responded to any commission requests for additional
information regarding the energy storage system pilot project; and

(3) the commission has determined that the energy storage system pilot project is in the
public interest.

(b) The commission may modify a proposed energy storage system pilot project the
commission approves for rate recovery.

(c) For the purposes of this subdivision:

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

(2) "pilot project" means a project deployed at a limited number of locations in order to
assess the technical and economic effectiveness of its operations.

Sec. 5.

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. 6.

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 each biennium 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 2022.

(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
shall 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 shall study alternative tracking system options, which shall be submitted
with the work plan to the commissioner 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. 7.

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 commercially available technology capable of
absorbing and storing energy, and delivering stored energy for use at a later time. For
purposes of this section, energy storage systems must be from a stationary source. For
purposes of this section:

(1) an energy storage system may be:

(i) either centralized or distributed; or

(ii) owned by a load-serving entity or local publicly owned electric utility, a customer
of a load-serving entity or local publicly owned electric utility, a third party, or jointly owned
by two or more of the entities under this item or any other entity;

(2) an energy storage system must:

(i) reduce demand for peak electrical generation;

(ii) defer or substitute for an investment in generation, transmission, or distribution
assets; or

(iii) improve the reliable operation of the electrical transmission or distribution grid;
and

(3) an energy storage system must:

(i) use mechanical, chemical, or thermal processes to store energy that was generated
at one time for use at a later time;

(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 that later time;

(iii) use mechanical, chemical, or thermal processes to store energy generated from
renewable resources for use at a later time; or

(iv) use mechanical, chemical, or thermal processes to store energy generated from
mechanical processes that would otherwise be wasted for delivery at a later time.

(g) "Investor-owned utility" means a utility, as defined in paragraph (b), that is owned
by private persons.

Sec. 8.

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


Subd. 7.

Energy storage systems assessment.

(a) Each investor-owned utility must
include as part of an integrated resource plan or plan modification filed by the investor-owned
utility an assessment of energy storage systems. The assessment must:

(1) consider energy storage systems as both transmission and distribution-interconnected
resources;

(2) analyze energy storage systems both as an alternative for and as an adjunct to
generation resources for ancillary services and resource adequacy; and

(3) require that in any prudence determination for a new resource acquisition that resource
options analysis must include a storage alternative.

(b) In approving a resource plan, the commission must determine, with respect to the
assessment required in paragraph (a), whether:

(1) the utility's forecast requirements are based on substantially accurate data and an
adequate forecasting method;

(2) the plan identifies and takes into account any present and projected reductions in
energy demand that may result from measures to improve energy efficiency in the industrial,
commercial, residential, and energy-producing sectors of the area being served; and

(3) the plan includes appropriate and up-to-date methods for modeling resources,
including the modeling and valuing of flexible operations.

Sec. 9.

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.

Sec. 10.

[216C.418] SOLAR ENERGY GRANTS FOR SCHOOL DISTRICTS.

Subdivision 1.

Definitions.

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

(b) "Energy storage system" means a commercially available technology capable of (1)
absorbing and storing electrical energy, and (2) dispatching stored electrical energy at a
later time.

(c) "Photovoltaic device" has the meaning given in section 216C.06, subdivision 16.

(d) "School district" means an independent or special school district.

(e) "Solar energy system" means photovoltaic devices installed alone or in conjunction
with a solar thermal system or an energy storage system.

(f) "Solar thermal system" means a flat plate or evacuated tube with a fixed orientation
that collects the sun's radiant energy and transfers it to a storage medium for distribution as
energy to heat or cool air or water.

Subd. 2.

Establishment.

A grant program is established under the Department of
Commerce to award grants to school districts to fund the design, purchase, and installation
of solar energy systems on school district buildings.

Subd. 3.

Eligible applicants.

In order to be eligible to receive a grant under this section,
a school district must obtain electric service from the public utility that owns a nuclear
electric generating facility in Minnesota.

Subd. 4.

Eligible expenditures.

(a) Grants awarded to a school district under this section:

(1) may be used to pay up to 95 percent of the cost of designing, engineering, purchasing,
and installing a solar energy system;

(2) must be used to fund a solar energy system whose capacity matches the electric load
of the school district building using the electricity generated, but must not exceed 300
kilowatts; and

(3) must be used to fund a solar energy system placed on, adjacent to, or in proximity
to the school district building using the electricity generated.

(b) A school district that receives a rebate or other financial incentive for a solar energy
system under section 116C.7792, or from any utility is not eligible to receive a grant under
this section for the same solar energy system.

Subd. 5.

Application process.

A school district must submit an application to the
commissioner on a form prescribed by the commissioner. The commissioner must develop
administrative procedures governing the application and grant award process, and must
award grants on a first-come, first-served basis.

Subd. 6.

Geographical distribution of grants.

The commissioner must endeavor to
award grants under this section to school districts located throughout the electric service
territory of the public utility that owns a nuclear electric generating facility in Minnesota.

Subd. 7.

Other funds.

A school district may issue debt under section 123B.62 to provide
its share of the costs for a solar energy system receiving a grant under this section.

EFFECTIVE DATE.

This section is effective June 1, 2018.

Sec. 11.

Minnesota Statutes 2016, section 216D.03, is amended by adding a subdivision
to read:


Subd. 5.

Contact information database.

The notification center must create a database
to collect, maintain, and continually update the contact information for each operator in
Minnesota.Each operator must furnish the notification center with the operator's telephone
number for 24 hours per day and seven days per week response related to each underground
facility excavation. The information contained in the database must be made available to
an excavator upon request to facilitate damage response or damage prevention related to
an excavation.

Sec. 12. 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. In examining the cost-effectiveness of energy storage systems,
the study must analyze:

(1) cost savings to ratepayers from the provision of services, including but not limited
to energy price arbitrage, ancillary services, resource adequacy, and transmission and
distribution asset deferral or substitution;

(2) direct-cost savings to customers that deploy energy storage systems;

(3) an improved ability to integrate renewable resources;

(4) improved reliability and power quality;

(5) the effect on retail electric rates over the useful life of a given energy storage system
compared to the impact on retail electric rates using a nonenergy storage system alternative
over the useful life of the nonenergy storage system alternative;

(6) reduced greenhouse gas emissions; and

(7) any other value reasonably related to the application of energy storage system
technology.

(b) By April 1, 2019, the commissioner of commerce shall submit the study to the chairs
and ranking minority members of the legislative committees with jurisdiction over energy
policy and finance.

ARTICLE 4

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, 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 for fiscal year 2018
are effective June 1, 2018.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

Subdivision 1.

Total Appropriation

$
-0-
$
17,025,000

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

Appropriations by Fund
2018
2019
General
-0-
17,000,000
Workforce
Development
-0-
25,000

Subd. 2.

Business and Community Development

-0-
2,000,000

$2,000,000 in fiscal year 2019 is for the
redevelopment grant and demolition loan
programs under Minnesota Statutes, sections
116J.571 to 116J.5764. This is a onetime
appropriation.

Subd. 3.

Broadband Development

-0-
15,000,000

$15,000,000 in fiscal year 2019 is for deposit
in the border-to-border broadband fund
account in the special revenue fund established
under Minnesota Statutes, section 116J.396.
This is a onetime appropriation.

Subd. 4.

Workforce Development

-0-
25,000

$25,000 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. WORKERS' COMPENSATION COURT
OF APPEALS

$
0
$
33,000

This appropriation is from the workers'
compensation fund.

ARTICLE 5

ECONOMIC DEVELOPMENT POLICY

Section 1.

Minnesota Statutes 2016, section 116J.8747, subdivision 2, is amended to read:


Subd. 2.

Qualified job training program.

To qualify for grants under this section, a
job training program must satisfy the following requirements:

(1) the program must be operated by a nonprofit corporation that qualifies under section
501(c)(3) of the Internal Revenue Code;

(2) the program must spend, on average, $15,000 or more per graduate of the program;

(3) the program must provide education and training in:

(i) basic skills, such as reading, writing, mathematics, and communications;

(ii) thinking skills, such as reasoning, creative thinking, decision making, and problem
solving; and

(iii) personal qualities, such as responsibility, self-esteem, self-management, honesty,
and integrity;

(4) the program may provide income supplements, when needed, to participants for
housing, counseling, tuition, and other basic needs;

(5) the program's education and training course must last for an average of at least six
months;

(6) individuals served by the program must:

(i) be 18 years of age or older; as of the date of enrollment, and

(ii) have federal adjusted gross household income of no more than $12,000 per year in
the calendar year immediately before entering the program that is 100 percent or less of the
federal poverty guideline for Minnesota, based on family size
; and

(iii) have assets of no more than $10,000, excluding the value of a homestead; and

(iv) not have been claimed as a dependent on the federal tax return of another person in
the previous taxable year; and

(7) (6) the program must be certified by the commissioner of employment and economic
development as meeting the requirements of this subdivision.

Sec. 2.

Minnesota Statutes 2016, section 116J.8747, subdivision 4, is amended to read:


Subd. 4.

Duties of program.

(a) A program certified by the commissioner under
subdivision 2 must comply with the requirements of this subdivision.

(b) A program must maintain records for each qualified graduate. The records must
include information sufficient to verify the graduate's eligibility under this section, identify
the employer, and describe the job including its compensation rate and benefits.

(c) A program must report by January 1 of each year to the commissioner. The report
must include, at least, information on:
is subject to the reporting requirements under section
116L.98.

(1) the number of graduates placed;

(2) demographic information on the graduates;

(3) the type of position in which each graduate is placed, including compensation
information;

(4) the tenure of each graduate at the placed position or in other jobs;

(5) the amount of employer fees paid to the program;

(6) the amount of money raised by the program from other sources; and

(7) the types and sizes of employers with which graduates have been placed and retained.

Sec. 3.

Minnesota Statutes 2017 Supplement, section 298.292, subdivision 2, is amended
to read:


Subd. 2.

Use of money.

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

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

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

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

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

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

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

(c) Money devoted to the trust fund under this section shall not be expended, appropriated,
or transferred from the trust fund for any purpose except as provided in this section.

Sec. 4.

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


Subd. 2.

Business and Community Development

$
46,074,000
$
40,935,000
Appropriations by Fund
General
$43,363,000
$38,424,000
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 the first year is and
$10,500,000 the second year are
for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Of this amount,
the commissioner of employment and
economic development may use up to three
percent for administration and monitoring of
the program. This appropriation is available
until spent. In fiscal year 2020 and beyond,
the base amount is $12,500,000.

(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 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, $1,500,000 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 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.

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 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 6

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.

Sec. 5.

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.

ARTICLE 7

WORKERS' COMPENSATION

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 at 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
at the Office of Administrative Hearings
. Salaries of compensation judges are 98.52 percent
of the salary of district court judges.

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.

If 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 written 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.

[176.2751] 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 coordination of the office's case management
system and the workers' compensation imaging system pending completion 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 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.

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

Subd. 6.

Data privacy.

(a) All documents filed with or issued by the department or
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.

EFFECTIVE DATE.

This section is effective June 1, 2018.

ARTICLE 8

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.

ARTICLE 9

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.

ARTICLE 10

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.

ARTICLE 11

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.

ARTICLE 12

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, articles 8 to 12 are effective September 16, 2018.

ARTICLE 13

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

$
.......
$
300,000
Appropriations by Fund
2018
2019
General
-0-
(700,000)
Environmental
-0-
1,000,000

Subd. 2.

Resource Management

0
0

(a) $700,000 the second year is a reduction
from the general fund for competitive
recycling grants under Minnesota Statutes,
section 115A.565.

(b) $700,000 the second year is from the
environmental fund for competitive recycling
grants under Minnesota Statutes, section
115A.565.

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-
$
3,382,000
Appropriations by Fund
2018
2019
General
-0-
(1,081,000)
Natural Resources
-0-
2,403,000
Game and Fish
-0-
2,060,000

Subd. 2.

Lands and Minerals Management

-0-
625,000

(a) $425,000 the second year is for aggregate
mapping. This is a onetime appropriation and
is available until June 30, 2020.

(b) $200,000 the second year is to expand
monitoring and modeling of water levels in
the Canisteo and Arcturus to Hill Annex
open-pit mine groups, with priority on the
latter. The monitoring and modeling results
must be used by the commissioner to develop
plans to control and reduce the water levels in
each pit group and ameliorate, mitigate, or
eliminate the public safety hazards resulting
from rising water in both open-pit groups. This
is a onetime appropriation.

Subd. 3.

Ecological and Water Resources

-0-
(475,000)

(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) $1,000,000 the second year is a reduction
from the general fund for water monitoring
and compliance.

(c) $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 Minnesotans'
attitude toward fish stocking. The survey must
include a representative sample of
Minnesotans from all regions of the state and
must examine Minnesotans' 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-
(131,000)

(a) $1,131,000 the second year is a reduction
to the general fund for the Next Generation
Core Forestry data system.

(b) $1,000,000 the second year is from the
forest management investment account in the
natural resources fund for the Next Generation
Core Forestry data system. The appropriation
is available until June 30, 2021.

Subd. 5.

Parks and Trails

-0-
1,363,000

(a) $100,000 the second year is from the
all-terrain vehicle account in the natural
resources fund to the commissioner of natural
resources 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) $150,000 the second year is from the
off-road vehicle account for a contract 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. This is
a onetime appropriation and is available until
June 30, 2019.

(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 share the cost by reimbursing
federal, state, county, and township entities
for additional needs on forest roads 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 section 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, 2021. To be eligible for
reimbursement under this paragraph, the
claimant must demonstrate that:

(1) the needs result from additional traffic
generated by the border-to-border touring
route; and

(2) increased use attributable to a
border-to-border touring route has caused at
least a 50 percent increase in maintenance
costs for forest roads under the claimant's
jurisdiction, based on a ten-year maintenance
average.

Before reimbursing a claim under this
paragraph, the commissioner must consider
whether the claim is consistent with claims
made by other entities that administer forest
roads on the touring route, in terms of the
amount requested for reimbursement and the
frequency of claims made.

(e) $313,000 the second year is from the
natural resources fund for a grant to St. Louis
County 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, $14,000 is from
the off-road vehicle account, and $14,000 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-
1,960,000

(a) $7,146,000 the second year is a reduction
from the operations account in the game and
fish fund.

(b) $8,606,000 the second year is from the
deer management account in the game and
fish fund.

(c) Notwithstanding Minnesota Statutes,
section 297A.94, $500,000 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.

(d) 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.

Subd. 7.

Enforcement

-0-
40,000

$40,000 the second year is from the all-terrain
vehicle account in the natural resources fund
for the development and implementation of
safety coursework for younger riders. This is
a onetime appropriation.

Subd. 8.

Cancellation

On July 1, 2018, $492,000 is canceled to the
general fund from the amount appropriated
for legal costs under Laws 2017, chapter 93,
article 1, section 3, subdivision 8.

Sec. 4. BOARD OF WATER AND SOIL
RESOURCES.

$
-0-
$
650,000

(a) $600,000 the second year is for a grant to
the Alexandria Lake Area Sanitary District
for lake management activities, including but
not limited to alum treatment in Lake Agnes,
carp removal in Lake Winona, and related
management and reassessment measures that
are intended to achieve and maintain
compliance with water quality standards for
phosphorus and the total maximum daily load
for Lake Winona. This is a onetime
appropriation and is available until June 30,
2020.

(b) $50,000 the second year is for a grant to
the Red River Basin Commission for water
quality and floodplain management. This
amount is in addition to the appropriation in
Laws 2017, chapter 93, article 1, section 4,
paragraph (i).

Sec. 5. METROPOLITAN COUNCIL

$
0
$
0
Appropriations by Fund
2018
2019
General
-0-
(270,000)
Natural Resources
-0-
270,000

(a) $270,000 the second year is a reduction
from the general fund for metropolitan area
regional parks operations and maintenance
according to Minnesota Statutes, section
473.351.

(b) $270,000 the second year is from the
natural resources fund for metropolitan area
regional parks and trails maintenance and
operations. This appropriation is from the
revenue deposited in the natural resources fund
under Minnesota Statutes, section 297A.94,
paragraph (h), clause (3).

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
.

ARTICLE 14

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 84.86, 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. 10.

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. 11.

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. 12.

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.

Sec. 13.

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 the 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. 14.

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. 15.

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. 16.

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. 17.

Minnesota Statutes 2016, section 86B.005, subdivision 8a, is amended to read:


Subd. 8a.

Marine carbon monoxide detection system.

"Marine carbon monoxide
detection system" means a device or system that meets the requirements of the American
Boat and Yacht Council Standard A-24, July, 2015, for carbon monoxide detection systems.

for detecting carbon monoxide that is certified by a nationally recognized testing laboratory
to conform to current UL Standards for use on recreational boats.

Sec. 18.

Minnesota Statutes 2016, section 86B.532, subdivision 1, is amended to read:


Subdivision 1.

Requirements; installation.

(a) No motorboat used for recreational
purposes
that has an enclosed accommodation compartment may be operated on any waters
of the state unless the motorboat is equipped with a functioning marine carbon monoxide
detection system installed according to the manufacturer's instructions and this subdivision.

(b) After May 1, 2017, No new motorboat used for recreational purposes that has an
enclosed accommodation compartment may be sold or offered for sale in Minnesota unless
the motorboat is equipped with a new functioning marine carbon monoxide detection system
installed according to the manufacturer's instructions and this subdivision.

(c) A marine carbon monoxide detection system must be located:

(1) to monitor the atmosphere of the enclosed accommodation compartment; and

(2) within ten feet or 3.048 meters of any designated sleeping accommodations.

(d) A marine carbon monoxide detection system, including a sensor, must not be located
within five feet or 1.52 meters of any cooking appliance.

Sec. 19.

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. 20.

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. 21.

Minnesota Statutes 2017 Supplement, section 89.17, is amended to read:


89.17 LEASES AND PERMITS.

(a) Notwithstanding the permit procedures of chapter 90, the commissioner may grant
and execute, in the name of the state, leases and permits for the use of any forest lands under
the authority of the commissioner for any purpose that in the commissioner's opinion is not
inconsistent with the maintenance and management of the forest lands, on forestry principles
for timber production. Every such lease or permit is revocable at the discretion of the
commissioner at any time subject to such conditions as may be agreed on in the lease. The
approval of the commissioner of administration is not required upon any such lease or
permit. No such lease or permit for a period exceeding 21 years shall be granted except with
the approval of the Executive Council.

(b) Public access to the leased land for outdoor recreation is the same as access would
be under state management.

(c) Notwithstanding section 16A.125, subdivision 5, after deducting the reasonable costs
incurred for preparing and issuing the lease, all remaining proceeds from leasing school
trust land and university land for roads on forest lands must be deposited into the respective
permanent fund for the lands.

(d) The commissioner may require a performance bond, security deposit, or other form
of security
for removing any improvements or personal property left on the leased premises
by the lessee upon termination or cancellation of the lease.

Sec. 22.

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. 23.

Minnesota Statutes 2016, section 92.50, is amended by adding a subdivision to
read:


Subd. 3.

Security requirement.

The commissioner may require a performance bond,
security deposit, or other form of security for removing any improvements or personal
property left on the leased premises by the lessee upon termination or cancellation of the
lease.

Sec. 24.

Minnesota Statutes 2016, section 94.10, subdivision 2, is amended to read:


Subd. 2.

Public sale requirements.

(a) After complying with subdivision 1 and before
any public sale of surplus state-owned land is made and at least 30 days before the sale, the
commissioner of natural resources shall publish a notice of the sale in a newspaper of general
distribution in the county in which the real property to be sold is situated. The notice shall
specify the time and place at which the sale will commence, a general description of the
lots or tracts to be offered, and a general statement of the terms of sale. The commissioner
shall also provide electronic notice of sale.

(b) The minimum bid for a parcel of land must include the estimated value or appraised
value of the land and any improvements and, if any of the land is valuable for merchantable
timber, the value of the merchantable timber. The minimum bid may include expenses
incurred by the commissioner in rendering the property salable, including survey, appraisal,
legal, advertising, and other expenses.

(c) The purchaser of state land must pay recording fees and the state deed tax.

(d) Except as provided under paragraph (e), parcels remaining unsold after the offering
may be sold to anyone agreeing to pay at least 75 percent of the appraised value. The sale
shall continue until all parcels are sold or until the commissioner orders a reappraisal or
withdraws the remaining parcels from sale.

(e) The commissioner may retain the services of a licensed real estate broker to find a
buyer for parcels remaining unsold after the offering. The sale price may be negotiated by
the broker, but must not be less than 90 percent of the appraised value as determined by the
commissioner. The broker's fee must be established by prior agreement between the
commissioner and the broker and must not exceed ten percent of the sale price for sales of
$10,000 or more. The broker's fee must be paid to the broker from the proceeds of the sale.

(f) Public sales of surplus state-owned land may be conducted through online auctions.

Sec. 25.

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. 26.

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
shall be credited to the deer management
account and is appropriated to the commissioner 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. 27.

[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 and a description
of how to register to vote before or on election day. On the Web page where an individual
has the option to print a license to hunt or fish, the commissioner must include a direct link
to the secretary of state's online voter registration Web page.

(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 on August 1, 2018, and applies to
licenses issued on or after March 1, 2019. Paragraph (b) is effective on August 1, 2018, and
applies to printed and digital versions of regulations updated on or after that date.

Sec. 28.

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. 29.

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. 30.

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. 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
,:

(a) A "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.

(b) A "person with a related condition" means a person who meets the diagnostic
definition under section 252.27, subdivision 1a.

(c) A "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 firearm 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.

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.

The board shall develop and utilize
performance-based or eligibility 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.

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 section 103A.212. The transition plan must include a goal of completing
statewide transition to comprehensive watershed management plans by 2025. The
metropolitan area may be considered for inclusion in the transition plan. The board may
amend the transition plan no more often than once every two years.

(b) The board may use the authority under section 103B.3369, subdivision 9, to support
development or implementation of a comprehensive watershed management plan under this
section.

Sec. 38.

Minnesota Statutes 2016, section 103F.361, subdivision 2, is amended to read:


Subd. 2.

Legislative intent.

It is the intent of sections 103F.361 to 103F.377 to authorize
and direct the board and the counties zoning authorities to implement the plan for the
Mississippi headwaters area.

Sec. 39.

Minnesota Statutes 2016, section 103F.363, subdivision 1, is amended to read:


Subdivision 1.

Generally.

Sections 103F.361 to 103F.377 apply to the counties of
Clearwater, Hubbard, Beltrami, Cass, Itasca, Aitkin, Crow Wing, and Morrison and all other
zoning authorities
.

Sec. 40.

Minnesota Statutes 2016, section 103F.365, is amended by adding a subdivision
to read:


Subd. 5.

Zoning authority.

"Zoning authority" means counties, organized townships,
local and special governmental units, joint powers boards, councils, commissions, boards,
districts, and all state agencies and departments within the corridor defined by the plan,
excluding statutory or home rule charter cities.

Sec. 41.

Minnesota Statutes 2016, section 103F.371, is amended to read:


103F.371 RESPONSIBILITIES OF OTHER GOVERNMENTAL UNITS.

(a) All local and special governmental units, councils, commissions, boards and districts
and all state agencies and departments must exercise their powers so as to further the purposes
of sections 103F.361 to 103F.377 and the plan. Land owned by the state, its agencies, and
political subdivisions shall be administered in accordance with the plan. The certification
procedure under section 103F.373 applies to all zoning authorities in the corridor defined
by the plan.

(b) Actions that comply with the land use ordinance are consistent with the plan. Actions
that do not comply with the ordinance may not be started until the board has been notified
and given an opportunity to review and comment on the consistency of the action with this
section.

Sec. 42.

Minnesota Statutes 2016, section 103F.373, subdivision 1, is amended to read:


Subdivision 1.

Purpose.

To assure ensure that the plan is not nullified by unjustified
exceptions in particular cases and to promote uniformity in the treatment of applications
for exceptions, a review and certification procedure is established for the following categories
of land use actions taken by the counties and zoning authorities directly or indirectly affecting
land use within the area covered by the plan:

(1) the adoption or amendment of an ordinance regulating the use of land, including
rezoning of particular tracts of land;

(2) the granting of a variance from provisions of the land use ordinance; and

(3) the approval of a plat which is inconsistent with the land use ordinance.

Sec. 43.

Minnesota Statutes 2016, section 103F.373, subdivision 3, is amended to read:


Subd. 3.

Procedure for certification.

A copy of the notices of public hearings or, when
a hearing is not required, a copy of the application to consider an action of a type specified
in subdivision 1, clauses (1) to (3), must be forwarded to the board by the county zoning
authority
at least 15 days before the hearing or meetings to consider the actions. The county
zoning authority shall notify the board of its final decision on the proposed action within
ten days of the decision. By 30 days after the board receives the notice, the board shall
notify the county zoning authority and the applicant of its the board's approval or disapproval
of the proposed action.

Sec. 44.

Minnesota Statutes 2016, section 103F.373, subdivision 4, is amended to read:


Subd. 4.

Disapproval of actions.

(a) If a notice of disapproval is issued by the board,
the county zoning authority or the applicant may, within 30 days of the notice, file with the
board a demand for a hearing. If a demand is not filed within the 30-day period, the
disapproval becomes final.

(b) If a demand is filed within the 30-day period, a hearing must be held within 60 days
of demand. The hearing must be preceded by two weeks' published notice. Within 30 days
after the hearing, the board must:

(1) affirm its disapproval of the proposed action; or

(2) certify approval of the proposed action.

Sec. 45.

[103F.452] APPLICABILITY.

The provisions of sections 103F.415 to 103F.455 are not applicable without the adoption
of an ordinance by the county or local government unit.

Sec. 46.

Minnesota Statutes 2017 Supplement, section 103G.222, subdivision 3, is amended
to read:


Subd. 3.

Wetland replacement siting.

(a) Impacted wetlands outside of a greater than
80 percent area must not be replaced in a greater than 80 percent area. All wetland
replacement must follow this priority order:

(1) in the same minor watershed as the impacted wetland;

(2) in the same watershed as the impacted wetland;

(3) in the same wetland bank service area as the impacted wetland; and

(4) in another wetland bank service area.

(b) Notwithstanding paragraph (a), wetland banking credits approved according to a
complete wetland banking application submitted to a local government unit by April 1,
1996, may be used to replace wetland impacts resulting from public transportation projects
statewide.

(c) Notwithstanding paragraph (a), clauses (1) and (2), the priority order for replacement
by wetland banking begins at paragraph (a), clause (3), according to rules adopted under
section 103G.2242, subdivision 1.

(d) When reasonable, practicable, and environmentally beneficial replacement
opportunities are not available in siting priorities listed in paragraph (a), the applicant may
seek opportunities at the next level.

(e) For the purposes of this section, "reasonable, practicable, and environmentally
beneficial replacement opportunities" are defined as opportunities that:

(1) take advantage of naturally occurring hydrogeomorphological conditions and require
minimal landscape alteration;

(2) have a high likelihood of becoming a functional wetland that will continue in
perpetuity;

(3) do not adversely affect other habitat types or ecological communities that are
important in maintaining the overall biological diversity of the area; and

(4) are available and capable of being done after taking into consideration cost, existing
technology, and logistics consistent with overall project purposes.

(f) Regulatory agencies, local government units, and other entities involved in wetland
restoration shall collaborate to identify potential replacement opportunities within their
jurisdictional areas.

(g) The board must establish wetland replacement ratios and wetland bank service area
priorities to implement the siting and targeting of wetland replacement and encourage the
use of high priority areas for wetland replacement.

(h) Wetland replacement sites identified in accordance with the priority order for
replacement siting in paragraph (a) as part of the completion of an adequate environmental
impact statement may be approved for a replacement plan under section 93.481, 103G.2242,
or 103G.2243 without further modification related to the priority order, notwithstanding
availability of new mitigation sites or availability of credits after completion of an adequate
environmental impact statement. Wetland replacement plan applications must be submitted
within one year of the adequacy determination of the environmental impact statement to be
eligible for approval under this paragraph.

(i) The wetland replacement priority order under paragraph (a), clauses (1) to (4), does
not apply to project-specific replacement sites intended to bank credits for single-user banks
before January 1, 2009.

Sec. 47.

Minnesota Statutes 2017 Supplement, section 103G.2242, subdivision 1, is
amended to read:


Subdivision 1.

Rules.

(a) The board, in consultation with the commissioner, shall adopt
rules governing the approval of wetland value replacement plans under this section and
public-waters-work permits affecting public waters wetlands under section 103G.245. These
rules must address the criteria, procedure, timing, and location of acceptable replacement
of wetland values and may address the state establishment and administration of a wetland
banking program for public and private projects, including provisions for an in-lieu fee
program; the administrative, monitoring, and enforcement procedures to be used; and a
procedure for the review and appeal of decisions under this section. In the case of peatlands,
the replacement plan rules must consider the impact on carbon. Any in-lieu fee program
established by the board must conform with Code of Federal Regulations, title 33, section
332.8, as amended.

(b) After the adoption of the rules, a replacement plan must be approved by a resolution
of the governing body of the local government unit, consistent with the provisions of the
rules or a comprehensive wetland protection and management plan approved under section
103G.2243.

(c) If the local government unit fails to apply the rules, or fails to implement a local
comprehensive wetland protection and management plan established under section
103G.2243, the government unit is subject to penalty as determined by the board.

(d) When making a determination under rules adopted pursuant to this subdivision on
whether a rare natural community will be permanently adversely affected, consideration of
measures to mitigate any adverse effect on the community must be considered. Wetland
banking credits shall be an acceptable mitigation measure for any adverse effects on a rare
natural community. The Department of Natural Resources may approve a wetland
replacement plan that includes restoration or credits from rare natural communities of
substantially comparable character and public value as mitigation for any rare natural
community adversely affected by a project.

Sec. 48.

Minnesota Statutes 2016, section 103G.2242, subdivision 14, is amended to read:


Subd. 14.

Fees established.

(a) Fees must be assessed for managing wetland bank
accounts and transactions as follows:

(1) account maintenance annual fee: one percent of the value of credits not to exceed
$500;

(2) account establishment, deposit, or transfer: 6.5 percent of the value of credits not to
exceed $1,000 per establishment, deposit, or transfer; and

(3) withdrawal fee: 6.5 percent of the value of credits withdrawn.

(b) The board may must establish fees at or based on costs to the agency below the
amounts in paragraph (a) for single-user or other dedicated wetland banking accounts.

(c) Fees for single-user or other dedicated wetland banking accounts established pursuant
to section 103G.005, subdivision 10i, clause (4), are limited to establishment of a wetland
banking account and are assessed at the rate of 6.5 percent of the value of the credits not to
exceed $1,000.

(d) The board may assess a fee to pay the costs associated with establishing conservation
easements, or other long-term protection mechanisms prescribed in the rules adopted under
subdivision 1, on property used for wetland replacement.

Sec. 49.

Minnesota Statutes 2016, section 114D.15, is amended by adding a subdivision
to read:


Subd. 3a.

Comprehensive local water management plan.

"Comprehensive local water
management plan" has the meaning given under section 103B.3363, subdivision 3.

Sec. 50.

Minnesota Statutes 2016, section 114D.15, is amended by adding a subdivision
to read:


Subd. 3b.

Comprehensive watershed management plan.

"Comprehensive watershed
management plan" has the meaning given under section 103B.3363, subdivision 3a.

Sec. 51.

Minnesota Statutes 2016, section 114D.15, subdivision 7, is amended to read:


Subd. 7.

Restoration.

"Restoration" means actions, including effectiveness monitoring,
that are
taken to pursue, achieve, and maintain water quality standards for impaired waters
in accordance with a TMDL that has been approved by the United States Environmental
Protection Agency under federal TMDL requirements
.

Sec. 52.

Minnesota Statutes 2016, section 114D.15, subdivision 11, is amended to read:


Subd. 11.

TMDL implementation plan.

"TMDL implementation plan" means:

(1) a document detailing restoration activities needed to meet the approved TMDL's
pollutant load allocations for point and nonpoint sources.; or

(2) one of the following that the commissioner of the Pollution Control Agency
determines to be, in whole or part, sufficient to meet applicable water quality standards:

(i) a comprehensive watershed management plan;

(ii) a comprehensive local water management plan; or

(iii) an existing statewide or regional strategy published by the Pollution Control Agency.

Sec. 53.

Minnesota Statutes 2016, section 114D.15, subdivision 13, is amended to read:


Subd. 13.

Watershed restoration and protection strategy or WRAPS.

"Watershed
restoration and protection strategy" or "WRAPS" means a document summarizing scientific
studies of a major watershed no larger than at approximately a hydrologic unit code 8 scale
including the physical, chemical, and biological assessment of the water quality of the
watershed; identification of impairments and water bodies in need of protection; identification
of biotic stressors and sources of pollution, both point and nonpoint; TMDL's for the
impairments; and an implementation table containing information to support strategies and
actions
designed to achieve and maintain water quality standards and goals.

Sec. 54.

Minnesota Statutes 2016, section 114D.20, subdivision 2, is amended to read:


Subd. 2.

Goals for implementation.

The following goals must guide the implementation
of this chapter:

(1) to identify impaired waters in accordance with federal TMDL requirements within
ten years after May 23, 2006,
and thereafter to ensure continuing evaluation of surface
waters for impairments;

(2) to submit TMDL's to the United States Environmental Protection Agency for all
impaired waters
in a timely manner in accordance with federal TMDL requirements;

(3) to set a reasonable time inform and support strategies for implementing restoration
of each identified impaired water and protection activities in a reasonable time period;

(4) to systematically evaluate waters, to provide assistance and incentives to prevent
waters from becoming impaired, and to improve the quality of waters that are listed as
impaired but do not have an approved TMDL addressing the impairment;

(5) to promptly seek the delisting of waters from the impaired waters list when those
waters are shown to achieve the designated uses applicable to the waters;

(6) to achieve compliance with federal Clean Water Act requirements in Minnesota;

(7) to support effective measures to prevent the degradation of groundwater according
to the groundwater degradation prevention goal under section 103H.001; and

(8) to support effective measures to restore degraded groundwater.

Sec. 55.

Minnesota Statutes 2016, section 114D.20, subdivision 3, is amended to read:


Subd. 3.

Implementation policies.

The following policies must guide the implementation
of this chapter:

(1) develop regional and, multiple pollutant, or watershed TMDL's and TMDL
implementation plans, and TMDL's and TMDL implementation plans for multiple pollutants

or WRAPSs
, where reasonable and feasible;

(2) maximize use of available organizational, technical, and financial resources to perform
sampling, monitoring, and other activities to identify degraded groundwater and impaired
waters, including use of citizen monitoring and citizen monitoring data used by the Pollution
Control Agency in assessing water quality that meets the requirements in Appendix D of
the Volunteer Surface Water Monitoring Guide, Minnesota
established by the commissioner
of the
Pollution Control Agency (2003);

(3) maximize opportunities for restoration of degraded groundwater and impaired waters,
by prioritizing and targeting of available programmatic, financial, and technical resources
and by providing additional state resources to complement and leverage available resources;

(4) use existing regulatory authorities to achieve restoration for point and nonpoint
sources of pollution where applicable, and promote the development and use of effective
nonregulatory measures to address pollution sources for which regulations are not applicable;

(5) use restoration methods that have a demonstrated effectiveness in reducing
impairments and provide the greatest long-term positive impact on water quality protection
and improvement and related conservation benefits while incorporating innovative approaches
on a case-by-case basis;

(6) identify for the legislature any innovative approaches that may strengthen or
complement existing programs;

(7) identify and encourage implementation of measures to prevent surface waters from
becoming impaired and to improve the quality of waters that are listed as impaired but have
no approved TMDL addressing the impairment using the best available data and technology,
and establish and report outcome-based performance measures that monitor the progress
and effectiveness of protection and restoration measures;

(8) monitor and enforce cost-sharing contracts and impose monetary damages in an
amount up to 150 percent of the financial assistance received for failure to comply; and

(9) identify and encourage implementation of measures to prevent groundwater from
becoming degraded and measures that restore groundwater resources.

Sec. 56.

Minnesota Statutes 2016, section 114D.20, subdivision 5, is amended to read:


Subd. 5.

Priorities for preparing WRAPSs AND TMDL's.

In consultation with the
Clean Water Council shall recommend, the commissioner of the Pollution Control Agency
must coordinate with the commissioners of natural resources, health, and agriculture and
with the Board of Water and Soil Resources to establish
priorities for scheduling and
preparing WRAPSs and TMDL's and TMDL implementation plans, taking into account,
considering
the severity and causes of the impairment impairments, the designated uses of
those the waters, and other applicable federal TMDL requirements. In recommending
priorities, the council shall also give Consideration to
, groundwater and high-quality waters
and watersheds watershed protection, waters and watersheds with declining water quality
trends, and waters and watersheds
:

(1) with impairments that pose the greatest potential risk to human health;

(2) with impairments that pose the greatest potential risk to threatened or endangered
species;

(3) with impairments that pose the greatest potential risk to aquatic health;

(4) where other public agencies and participating organizations and individuals, especially
local, basinwide basin-wide, watershed, or regional agencies or organizations, have
demonstrated readiness to assist in carrying out the responsibilities, including availability
and organization of human, technical, and financial resources necessary to undertake the
work; and

(5) where there is demonstrated coordination and cooperation among cities, counties,
watershed districts, and soil and water conservation districts in planning and implementation
of activities that will assist in carrying out the responsibilities.

Sec. 57.

Minnesota Statutes 2016, section 114D.20, subdivision 7, is amended to read:


Subd. 7.

Priorities for funding prevention actions.

The Clean Water Council shall
apply the priorities applicable under subdivision 6, as far as practicable, when recommending
priorities for funding actions to prevent groundwater and surface waters from becoming
degraded or impaired and to improve the quality of surface waters that are listed as impaired
but do not have an approved TMDL.

Sec. 58.

Minnesota Statutes 2016, section 114D.20, is amended by adding a subdivision
to read:


Subd. 8.

Alternatives; TMDL, TMDL implementation plan, or WRAPS.

(a) If the
commissioner of the Pollution Control Agency determines that a comprehensive watershed
management plan or comprehensive local water management plan contains information that
is sufficient and consistent with guidance from the United States Environmental Protection
Agency, including the recommended structure for category 4b demonstrations or its
replacement under section 303(d) of the federal Clean Water Act, the commissioner may
submit the plan to the Environmental Protection Agency according to federal TMDL
requirements as an alternative to developing a TMDL.

(b) A TMDL implementation plan or a WRAPS, or portions thereof, are not needed for
waters or watersheds when the commissioner of the Pollution Control Agency determines
that a comprehensive watershed management plan, a comprehensive local water management
plan, or a statewide or regional strategy published by the Pollution Control Agency meets
the definitions in section 114D.15, subdivisions 11 or 13.

(c) The commissioner of the Pollution Control Agency may request that the Board of
Water and Soil Resources conduct an evaluation of the implementation efforts under a
comprehensive watershed management plan or comprehensive local water management
plan when the commissioner makes a determination under paragraph (b). The board must
conduct the evaluation in accordance with section 103B.102.

(d) The commissioner of the Pollution Control Agency may amend or revoke a
determination made under paragraph (a) or (b) after considering the evaluation conducted
under paragraph (c).

Sec. 59.

Minnesota Statutes 2016, section 114D.20, is amended by adding a subdivision
to read:


Subd. 9.

Coordinating of municipal and local water quality activities.

A project,
practice, or program for water quality improvement or protection that is conducted by a
watershed management organization or a local government unit with a comprehensive
watershed management plan or other water management plan approved according to chapter
103B, 103C, or 103D may be considered as contributing to the requirements of a storm
water pollution prevention plan (SWPPP) for a municipal separate storm sewer systems
(MS4) permit unless the project, practice, or program was previously documented as
contributing to a different SWPPP for an MS4 permit.

Sec. 60.

Minnesota Statutes 2016, section 114D.26, is amended to read:


114D.26 WATERSHED RESTORATION AND PROTECTION STRATEGIES.

Subdivision 1.

Contents.

(a) The commissioner of the Pollution Control Agency shall
must
develop watershed restoration and protection strategies. for:

(1) quantifying impairments and risks to water quality;

(2) describing the causes of impairments and pollution sources;

(3) consolidating TMDLs in a major watershed; and

(4) informing comprehensive local water management plans and comprehensive
watershed management plans.

(b) To ensure effectiveness, efficiency, and accountability in meeting the goals of this
chapter, the commissioner of the Pollution Control Agency and the Board of Water and
Soil Resources must coordinate the schedule, budget, scope, and use of a WRAPS and
related documents and processes in consultation with local government units and in
consideration of section 114D.20, subdivision 8.
Each WRAPS shall must:

(1) identify impaired waters and waters in need of protection;

(2) identify biotic stressors causing impairments or threats to water quality;

(3) summarize watershed modeling outputs and resulting pollution load allocations, and
wasteload allocations, and priority areas for targeting actions to improve water quality and
identify areas with high pollutant-loading rates
;

(4) identify point sources of pollution for which a national pollutant discharge elimination
system permit is required under section 115.03;

(5) identify nonpoint sources of pollution for which a national pollutant discharge
elimination system permit is not required under section 115.03, with sufficient specificity
to prioritize and geographically locate inform watershed restoration and protection actions
strategies
;

(6) describe the current pollution loading and load reduction needed for each source or
source category to meet water quality standards and goals, including wasteload and load
allocations from TMDL's;

(7) contain a plan for ongoing identify water quality monitoring needed to fill data gaps,
determine changing conditions, and or gauge implementation effectiveness; and

(8) contain an implementation table of strategies and actions that are capable of
cumulatively achieving needed pollution load reductions for point and nonpoint sources,
including identifying:

(i) water quality parameters of concern;

(ii) current water quality conditions;

(iii) water quality goals and targets by parameter of concern; and

(iv) strategies and actions by parameter of concern and an example of the scale of
adoptions needed for each; with a timeline to meet the water quality restoration or protection
goals of this chapter.

(v) a timeline for achievement of water quality targets;

(vi) the governmental units with primary responsibility for implementing each watershed
restoration or protection strategy; and

(vii) a timeline and interim milestones for achievement of watershed restoration or
protection implementation actions within ten years of strategy adoption.

Subd. 2.

Reporting.

Beginning July 1, 2016, and every other year thereafter, The
commissioner of
the Pollution Control Agency must periodically report on its the agency's
Web site the progress toward implementation milestones and water quality goals for all
adopted TMDL's and, where available, WRAPS's
.

Subd. 3.

Timelines; administration.

Each year, (a) The commissioner of the Pollution
Control Agency must complete WRAPS's for at least ten percent of watershed restoration
and protection strategies for
the state's major watersheds. WRAPS shall be by June 30,
2023, unless the commissioner determines that a comprehensive watershed management
plan or comprehensive local water management plan, in whole or part, meets the definition
in section 114D.15, subdivision 11 or 13. As needed, the commissioner must update the
strategies, in whole or part, after consultation with the Board of Water and Soil Resources
and local government units.

(b) Watershed restoration and protection strategies are governed by the procedures for
approval and notice in section 114D.25, subdivisions 2 and 4, except that WRAPS the
strategies
need not be submitted to the United States Environmental Protection Agency.

Sec. 61.

Minnesota Statutes 2016, section 114D.35, subdivision 1, is amended to read:


Subdivision 1.

Public and stakeholder participation.

(a) Public agencies and private
entities involved in the implementation of implementing this chapter shall must encourage
participation by the public and stakeholders, including local citizens, landowners and, land
managers, and public and private organizations, in identifying impaired waters, in developing
TMDL's, in planning, priority setting, and implementing restoration of impaired waters, in
identifying degraded groundwater, and in protecting and restoring groundwater resources
.

(b) In particular, the commissioner of the Pollution Control Agency shall must make
reasonable efforts to provide timely information to the public and to stakeholders about
impaired waters that have been identified by the agency. The agency shall seek broad and
early public and stakeholder participation in scoping the activities necessary to develop a
TMDL, including the scientific models, methods, and approaches to be used in TMDL
development, and to implement restoration pursuant to section 114D.15, subdivision 7.
and
to inform and consult with the public and stakeholders in developing a WRAPS or TMDL.

(c) Public agencies and private entities involved in implementing restoration and
protection identified in a comprehensive watershed management plan or comprehensive
local water management plan must make efforts to inform, consult, and involve the public
and stakeholders.

(d) The commissioner of the Pollution Control Agency and the Board of Water and Soil
Resources must coordinate public and stakeholder participation in consultation with local
government units. To the extent practicable, implementation of this chapter shall be
accomplished in cooperation with local, state, federal, and tribal governments and private
sector organizations.

Sec. 62.

Minnesota Statutes 2016, section 114D.35, subdivision 3, is amended to read:


Subd. 3.

Education.

The Clean Water Council shall develop strategies for informing,
educating, and encouraging the participation of citizens, stakeholders, and others regarding
the identification of impaired waters, development of TMDL's, development of TMDL
implementation plans, implementation of restoration for impaired waters, identification of
degraded groundwater, and protection and restoration of groundwater resources
this chapter.
Public agencies shall be are responsible for implementing the strategies.

Sec. 63.

Minnesota Statutes 2016, section 115.03, subdivision 5, is amended to read:


Subd. 5.

Agency authority; national pollutant discharge elimination system.

(a)
Notwithstanding any other provisions prescribed in or pursuant to this chapter and, with
respect to the pollution of waters of the state, in chapter 116, or otherwise, the agency shall
have the authority to perform any and all acts minimally necessary including, but not limited
to, the establishment and application of standards, procedures, rules, orders, variances,
stipulation agreements, schedules of compliance, and permit conditions, consistent with
and, therefore not less stringent than the provisions of the Federal Water Pollution Control
Act, as amended, applicable to the participation by the state of Minnesota in the national
pollutant discharge elimination system (NPDES); provided that this provision shall not be
construed as a limitation on any powers or duties otherwise residing with the agency pursuant
to any provision of law.

(b) An activity that conveys or connects waters of the state without subjecting the
transferred water to intervening industrial, municipal, or commercial use does not require
a national pollutant discharge elimination system permit. This exemption does not apply to
pollutants introduced by the activity itself to the water being transferred.

Sec. 64.

Minnesota Statutes 2016, section 115.03, is amended by adding a subdivision to
read:


Subd. 5d.

Sugar beet storage.

Notwithstanding any other law to the contrary, the
commissioner shall not require a permittee who owns and operates a remote sugar beet
storage facility to install sedimentation pond liners as part of a national pollutant discharge
elimination system or state disposal system permit. For purposes of this subdivision, "remote
sugar beet storage facility" means an area where sugar beets are temporarily stored prior to
delivery to a sugar beet processing facility that is not located on land adjacent to the
processing facility.

Sec. 65.

Minnesota Statutes 2016, section 115.035, is amended to read:


115.035 EXTERNAL PEER REVIEW OF WATER QUALITY STANDARDS.

(a) When the commissioner convenes an external peer review panel during the
promulgation or amendment of water quality standards, the commissioner must provide
notice and take public comment on the charge questions for the external peer review panel
and must allow written and oral public comment as part of the external peer review panel
process.
Every new or revised numeric water quality standard must be supported by a
technical support document that provides the scientific basis for the proposed standard and
that has undergone external, scientific peer review. Numeric water quality standards in
which the agency is adopting, without change, a United States Environmental Protection
Agency criterion that has been through peer review are not subject to this paragraph.

Documentation of the external peer review panel, including the name or names of the peer
reviewer or reviewers, must be included in the statement of need and reasonableness for
the water quality standard. If the commissioner does not convene an external peer review
panel during the promulgation or amendment of water quality standards, the commissioner
must state the reason an external peer review panel will not be convened in the statement
of need and reasonableness.

(b) Every technical support document developed by the agency must be released in draft
form for public comment before peer review and before finalizing the technical support
document.

(c) The commissioner must provide public notice and information about the external
peer review through the request for comments published at the beginning of the rulemaking
process for the numeric water quality standard, and:

(1) the request for comments must identify the draft technical support document and
where the document can be found;

(2) the request for comments must include a proposed charge for the external peer review
and request comments on the charge;

(3) all comments received during the public comment period must be made available to
the external peer reviewers; and

(4) if the agency is not soliciting external peer review because the agency is adopting a
United States Environmental Protection Agency criterion without change, that must be
noted in the request for comments.

(d) The purpose of the external peer review is to evaluate whether the technical support
document and proposed standard are based on sound scientific knowledge, methods, and
practices. The external peer review must be conducted according to the guidance in the
most recent edition of the United States Environmental Protection Agency's Peer Review
Handbook. Peer reviewers must not have participated in developing the scientific basis of
the standard. Peer reviewers must disclose any activities or circumstances that could pose
a conflict of interest or create an appearance of a loss of impartiality that could interfere
with an objective review.

(e) The type of review and the number of peer reviewers depends on the nature of the
science underlying the standard. When the agency is developing significant new science or
science that expands significantly beyond current documented scientific practices or
principles, a panel review must be used.

(f) In response to the findings of the external peer review, the draft technical support
document must be revised as appropriate. The findings of the external peer review must be
documented and attached to the final technical support document, which must be an exhibit
as part of the statement of need and reasonableness in the rulemaking to adopt the new or
revised water quality standard. The final technical support document must note changes
made in response to the external peer review.

(b) (g) By December 15 each year, the commissioner shall post on the agency's Web
site a report identifying the water quality standards development work in progress or
completed in the past year, the lead agency scientist for each development effort, and
opportunities for public input.

Sec. 66.

[115.455] EFFLUENT LIMITATION COMPLIANCE.

To the extent allowable under federal law, for a municipality that constructs a publicly
owned treatment works facility or for an industrial national pollutant discharge elimination
system and state disposal system permit holder that constructs a treatment works facility to
comply with a new or modified effluent limitation, compliance with any new or modified
effluent limitation adopted after construction begins that would require additional capital
investment is required no sooner than 16 years after the date the facility begins operating.

Sec. 67.

Minnesota Statutes 2016, section 115A.51, is amended to read:


115A.51 APPLICATION REQUIREMENTS.

(a) Applications for assistance under the program shall demonstrate:

(a) (1) that the project is conceptually and technically feasible;

(b) (2) that affected political subdivisions are committed to implement the project, to
provide necessary local financing, and to accept and exercise the government powers
necessary to the project;

(c) (3) that operating revenues from the project, considering the availability and security
of sources of solid waste and of markets for recovered resources, together with any proposed
federal, state, or local financial assistance, will be sufficient to pay all costs over the projected
life of the project;

(d) (4) that the applicant has evaluated the feasible and prudent alternatives to disposal,
including the use of existing solid waste management facilities with reasonably available
capacity sufficient to accomplish the goals of the proposed project,
and has compared and
evaluated the costs of the alternatives, including capital and operating costs, and the effects
of the alternatives on the cost to generators;

(5) that the applicant has identified waste management objectives in applicable county
and regional solid waste management plans consistent with sections 115A.46, subdivision
2, and 473.149, subdivision 1, and other solid waste facilities identified in the county and
regional plan; and

(6) that the applicant has conducted a comparative analysis of the project against existing
public and private solid waste facilities, including an analysis of potential displacement of
facilities to determine whether the project is the most appropriate alternative to achieve the
identified waste management objectives, which considers:

(i) conformity with approved county or regional solid waste management plans;

(ii) consistency with the state's solid waste hierarchy and sections 115A.46, subdivision
2, paragraphs (e) and (f), and 473.149, subdivision 1; and

(iii) environmental standards related to public health, air, surface water, and groundwater.

(b) The commissioner may require completion of a comprehensive solid waste
management plan conforming to the requirements of section 115A.46, before accepting an
application. Within five days of filing an application with the agency, the applicant must
submit a copy of the application to each solid waste management facility mentioned in the
portion of the application addressing the requirements of paragraph (a), clauses (5) and (6).

Sec. 68.

Minnesota Statutes 2016, section 115A.94, subdivision 2, is amended to read:


Subd. 2.

Local authority.

A city or town may organize collection, after public notification
and hearing as required in subdivisions 4a to 4d 4f. A county may organize collection as
provided in subdivision 5. A city or town that has organized collection as of May 1, 2013,
is exempt from subdivisions 4a to 4d 4f.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 69.

Minnesota Statutes 2016, section 115A.94, subdivision 4a, is amended to read:


Subd. 4a.

Committee establishment.

(a) Before implementing an ordinance, franchise,
license, contract, or other means of organizing collection, a city or town, by resolution of
the governing body, must establish an organized a solid waste collection options committee
to identify, examine, and evaluate various methods of organized solid waste collection. The
governing body shall appoint the committee members.

(b) The organized solid waste collection options committee is subject to chapter 13D.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 70.

Minnesota Statutes 2016, section 115A.94, subdivision 4b, is amended to read:


Subd. 4b.

Committee duties.

The committee established under subdivision 4a shall:

(1) determine which methods of organized solid waste collection to examine, which
must include:

(i) the existing system of collection;

(i) (ii) a system in which a single collector collects solid waste from all sections of a
city or town; and

(ii) (iii) a system in which multiple collectors, either singly or as members of an
organization of collectors, collect solid waste from different sections of a city or town;

(2) establish a list of criteria on which the organized solid waste collection methods
selected for examination will be evaluated, which may include: costs to residential
subscribers, impacts on residential subscribers' ability to choose a provider of solid waste
service based on the desired level of service, costs and other factors, the impact of
miles
driven by collection vehicles on city streets and alleys and the incremental impact of miles
driven by collection vehicles
, initial and operating costs to the city of implementing the
organized solid waste collection system, providing incentives for waste reduction, impacts
on solid waste collectors, and other physical, economic, fiscal, social, environmental, and
aesthetic impacts;

(3) collect information regarding the operation and efficacy of existing methods of
organized solid waste collection in other cities and towns;

(4) seek input from, at a minimum:

(i) the governing body of the city or town;

(ii) the local official of the city or town responsible for solid waste issues;

(iii) persons currently licensed to operate solid waste collection and recycling services
in the city or town; and

(iv) residents of the city or town who currently pay for residential solid waste collection
services; and

(5) issue a report on the committee's research, findings, and any recommendations to
the governing body of the city or town.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 71.

Minnesota Statutes 2016, section 115A.94, subdivision 4c, is amended to read:


Subd. 4c.

Governing body; implementation.

The governing body of the city or town
shall consider the report and recommendations of the organized solid waste collection
options committee. The governing body must provide public notice and hold at least one
public hearing before deciding whether to implement organized collection. Organized
collection may begin no sooner than six months after the effective date of the decision of
the governing body of the city or town to implement organized collection.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 72.

Minnesota Statutes 2016, section 115A.94, subdivision 4d, is amended to read:


Subd. 4d.

Participating collectors proposal requirement.

Prior to Before establishing
a committee under subdivision 4a to consider organizing residential solid waste collection,
a city or town with more than one licensed collector must notify the public and all licensed
collectors in the community. The city or town must provide a 60-day period of at least 60
days
in which meetings and negotiations shall occur exclusively between licensed collectors
and the city or town to develop a proposal in which interested licensed collectors, as members
of an organization of collectors, collect solid waste from designated sections of the city or
town. The proposal shall include identified city or town priorities, including issues related
to zone creation, traffic, safety, environmental performance, service provided, and price,
and shall reflect existing haulers maintaining their respective market share of business as
determined by each hauler's average customer count during the six months prior to the
commencement of the 60-day exclusive negotiation period. If an existing hauler opts to be
excluded from the proposal, the city may allocate their customers proportionally based on
market share to the participating collectors who choose to negotiate. The initial organized
collection agreement executed under this subdivision must be for a period of three to seven
years. Upon execution of an agreement between the participating licensed collectors and
city or town, the city or town shall establish organized collection through appropriate local
controls and is not required to fulfill the requirements of subdivisions 4a, 4b, and 4c, except
that the governing body must provide the public notification and hearing required under
subdivision 4c.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 73.

Minnesota Statutes 2016, section 115A.94, is amended by adding a subdivision
to read:


Subd. 4e.

Parties to meet and confer.

Before the exclusive meetings and negotiations
under subdivision 4d, participating licensed collectors and elected officials of the city or
town must meet and confer regarding waste collection issues, including but not limited to
road deterioration, public safety, pricing mechanisms, and contractual considerations unique
to organized collection.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 74.

Minnesota Statutes 2016, section 115A.94, is amended by adding a subdivision
to read:


Subd. 4f.

Joint liability limited.

Notwithstanding section 604.02, an organized collection
agreement must not obligate a participating licensed collector for damages to third parties
solely caused by another participating licensed collector. The organized collection agreement
may include joint obligations for actions that are undertaken by all the participating licensed
collectors under this section.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 75.

Minnesota Statutes 2016, section 115A.94, subdivision 5, is amended to read:


Subd. 5.

County organized collection.

(a) A county may by ordinance require cities
and towns within the county to organize collection. Organized collection ordinances of
counties may:

(1) require cities and towns to require the separation and separate collection of recyclable
materials;

(2) specify the material to be separated; and

(3) require cities and towns to meet any performance standards for source separation
that are contained in the county solid waste plan.

(b) A county may itself organize collection under subdivisions 4a to 4d 4f in any city
or town that does not comply with a county organized collection ordinance adopted under
this subdivision, and the county may implement, as part of its organized collection, the
source separation program and performance standards required by its organized collection
ordinance.

EFFECTIVE DATE.

This section is effective January 1, 2019, and applies to organized
collection noticed under Minnesota Statutes, section 115A.94, subdivision 2, on or after
that date.

Sec. 76.

[115B.52] WATER QUALITY AND SUSTAINABILITY ACCOUNT.

Subdivision 1.

Definition.

For purposes of this section and section 115B.53, the term
"settlement" means the agreement and order entered on February 20, 2018, settling litigation
commenced by the state against the 3M Company under section 115B.17, subdivision 7.

Subd. 2.

Establishment.

The water quality and sustainability account is established as
an account in the remediation fund. The account consists of revenue deposited in the account
under the terms of the settlement and earnings on the investment of money in the account.

Subd. 3.

Expenditures.

Money in the account is appropriated to the commissioner of
the Pollution Control Agency and to the commissioner of natural resources for the purposes
authorized under the settlement.

Subd. 4.

Reporting.

The commissioner of the Pollution Control Agency and the
commissioner of natural resources must jointly submit:

(1) a biannual report to the chairs and ranking minority members of the legislative policy
and finance committees with jurisdiction over environment and natural resources on
expenditures from the water quality and sustainability account during the previous six
months; and

(2) by November 1 each year, a report to the legislature on expenditures from the water
quality and sustainability account during the previous fiscal year and a spending plan for
anticipated expenditures from the account during the current fiscal year.

Sec. 77.

[115B.53] WATER QUALITY AND SUSTAINABILITY STAKEHOLDERS.

The commissioner of the Pollution Control Agency and the commissioner of natural
resources must work with stakeholders to identify and recommend projects to receive funding
from the water quality and sustainability account under the settlement. Stakeholders include,
at a minimum, representatives of the agency, the Department of Natural Resources, east
metropolitan area municipalities, and the 3M Company.

Sec. 78.

Minnesota Statutes 2016, section 116.07, subdivision 2, is amended to read:


Subd. 2.

Adopting standards.

(a) The Pollution Control Agency shall improve air
quality by promoting, in the most practicable way possible, the use of energy sources and
waste disposal methods which produce or emit the least air contaminants consistent with
the agency's overall goal of reducing all forms of pollution. The agency shall also adopt
standards of air quality, including maximum allowable standards of emission of air
contaminants from motor vehicles, recognizing that due to variable factors, no single standard
of purity of air is applicable to all areas of the state. In adopting standards the Pollution
Control Agency shall give due recognition to the fact that the quantity or characteristics of
air contaminants or the duration of their presence in the atmosphere, which may cause air
pollution in one area of the state, may cause less or not cause any air pollution in another
area of the state, and it shall take into consideration in this connection such factors, including
others which it may deem proper, as existing physical conditions, zoning classifications,
topography, prevailing wind directions and velocities, and the fact that a standard of air
quality which may be proper as to an essentially residential area of the state, may not be
proper as to a highly developed industrial area of the state. Such standards of air quality
shall be premised upon scientific knowledge of causes as well as effects based on technically
substantiated criteria and commonly accepted practices. No local government unit shall set
standards of air quality which are more stringent than those set by the Pollution Control
Agency. Consistent with this recognition of the variability of air contamination levels and
conditions across the state, the agency must not apply or enforce a national or state ambient
air quality standard as an applicable standard for an individual source under an individual
facility permit issued pursuant to Code of Federal Regulations, title 40, part 70, unless the
permittee is a temporary source issued a permit under United States Code, title 42, section
7661c, paragraph (e).

(b) The Pollution Control Agency shall promote solid waste disposal control by
encouraging the updating of collection systems, elimination of open dumps, and
improvements in incinerator practices. The agency shall also adopt standards for the control
of the collection, transportation, storage, processing, and disposal of solid waste and sewage
sludge for the prevention and abatement of water, air, and land pollution, recognizing that
due to variable factors, no single standard of control is applicable to all areas of the state.
In adopting standards, the Pollution Control Agency shall give due recognition to the fact
that elements of control which may be reasonable and proper in densely populated areas of
the state may be unreasonable and improper in sparsely populated or remote areas of the
state, and it shall take into consideration in this connection such factors, including others
which it may deem proper, as existing physical conditions, topography, soils and geology,
climate, transportation, and land use. Such standards of control shall be premised on technical
criteria and commonly accepted practices.

(c) The Pollution Control Agency shall also adopt standards describing the maximum
levels of noise in terms of sound pressure level which may occur in the outdoor atmosphere,
recognizing that due to variable factors no single standard of sound pressure is applicable
to all areas of the state. Such standards shall give due consideration to such factors as the
intensity of noises, the types of noises, the frequency with which noises recur, the time
period for which noises continue, the times of day during which noises occur, and such
other factors as could affect the extent to which noises may be injurious to human health
or welfare, animal or plant life, or property, or could interfere unreasonably with the
enjoyment of life or property. In adopting standards, the Pollution Control Agency shall
give due recognition to the fact that the quantity or characteristics of noise or the duration
of its presence in the outdoor atmosphere, which may cause noise pollution in one area of
the state, may cause less or not cause any noise pollution in another area of the state, and
it shall take into consideration in this connection such factors, including others which it
may deem proper, as existing physical conditions, zoning classifications, topography,
meteorological conditions and the fact that a standard which may be proper in an essentially
residential area of the state, may not be proper as to a highly developed industrial area of
the state. Such noise standards shall be premised upon scientific knowledge as well as effects
based on technically substantiated criteria and commonly accepted practices. No local
governing unit shall set standards describing the maximum levels of sound pressure which
are more stringent than those set by the Pollution Control Agency.

(d) The Pollution Control Agency shall adopt standards for the identification of hazardous
waste and for the management, identification, labeling, classification, storage, collection,
transportation, processing, and disposal of hazardous waste, recognizing that due to variable
factors, a single standard of hazardous waste control may not be applicable to all areas of
the state. In adopting standards, the Pollution Control Agency shall recognize that elements
of control which may be reasonable and proper in densely populated areas of the state may
be unreasonable and improper in sparsely populated or remote areas of the state. The agency
shall consider existing physical conditions, topography, soils, and geology, climate,
transportation and land use. Standards of hazardous waste control shall be premised on
technical knowledge, and commonly accepted practices. Hazardous waste generator licenses
may be issued for a term not to exceed five years. No local government unit shall set
standards of hazardous waste control which are in conflict or inconsistent with those set by
the Pollution Control Agency.

(e) A person who generates less than 100 kilograms of hazardous waste per month is
exempt from the following agency hazardous waste rules:

(1) rules relating to transportation, manifesting, storage, and labeling for photographic
fixer and x-ray negative wastes that are hazardous solely because of silver content; and

(2) any rule requiring the generator to send to the agency or commissioner a copy of
each manifest for the transportation of hazardous waste for off-site treatment, storage, or
disposal, except that counties within the metropolitan area may require generators to provide
manifests.

Nothing in this paragraph exempts the generator from the agency's rules relating to on-site
accumulation or outdoor storage. A political subdivision or other local unit of government
may not adopt management requirements that are more restrictive than this paragraph.

(f) In any rulemaking proceeding under chapter 14 to adopt standards for air quality,
solid waste, or hazardous waste under this chapter, or standards for water quality under
chapter 115, the statement of need and reasonableness must include:

(1) an assessment of any differences between the proposed rule and:

(i) existing federal standards adopted under the Clean Air Act, United States Code, title
42, section 7412(b)(2); the Clean Water Act, United States Code, title 33, sections 1312(a)
and 1313(c)(4); and the Resource Conservation and Recovery Act, United States Code, title
42, section 6921(b)(1);

(ii) similar standards in states bordering Minnesota; and

(iii) similar standards in states within the Environmental Protection Agency Region 5;
and

(2) a specific analysis of the need and reasonableness of each difference.

If the proposed standards in a rulemaking subject to this paragraph are more stringent than
comparable federal standards, the statement of need and reasonableness must, in addition
to the requirements of this paragraph, include documentation that the federal standard does
not provide adequate protection for public health and the environment.

Sec. 79.

Minnesota Statutes 2016, section 116.07, is amended by adding a subdivision to
read:


Subd. 2c.

Exemption from standards for temporary storage facilities subject to
control.

(a) A temporary storage facility located at a commodity facility that is required to
be controlled under Minnesota Rules, part 7011.1005, subpart 3, is not subject to Minnesota
Rules, parts 7011.1000 to 7011.1015. For all portable equipment and fugitive dust emissions
directly associated with the temporary storage facility, it is determined that there is no
applicable specific standard of performance.

(b) For the purposes of this subdivision, the following terms have the meanings given
to them:

(1) "temporary storage facility" means a facility storing grain that:

(i) uses an asphalt, concrete, or comparable base material;

(ii) has rigid, self-supporting sidewalls;

(iii) provides adequate aeration; and

(iv) provides an acceptable covering; and

(2) "portable equipment" means equipment that is not fixed at any one spot and can be
moved, including but not limited to portable receiving pits, portable augers and conveyors,
and portable reclaim equipment directly associated with the temporary storage facility.

Sec. 80.

Minnesota Statutes 2017 Supplement, section 116.0714, is amended to read:


116.0714 NEW OPEN-AIR SWINE BASINS.

(a) The commissioner of the Pollution Control Agency or a county board shall not
approve any permits for the construction of new open-air swine basins, except that existing
facilities may use one basin of less than 1,000,000 gallons as part of a permitted waste
treatment program for resolving pollution problems or to allow conversion of an existing
basin of less than 1,000,000 gallons to a different animal type, provided all standards are
met. This section expires June 30, 2022.

(b) This section does not apply to basins used solely for wastewater from truck-washing
facilities.

Sec. 81.

Minnesota Statutes 2016, section 116.155, subdivision 1, is amended to read:


Subdivision 1.

Creation.

The remediation fund is created as a special revenue fund in
the state treasury to provide a reliable source of public money for response and corrective
actions to address releases of hazardous substances, pollutants or contaminants, agricultural
chemicals, and petroleum, and for environmental response actions at qualified landfill
facilities for which the agency has assumed such responsibility, including perpetual care of
such facilities. The specific purposes for which the general portion of the fund may be spent
are provided in subdivision 2. In addition to the general portion of the fund, the fund contains
two three accounts described in subdivisions 4 and 5 to 5a.

Sec. 82.

Minnesota Statutes 2016, section 116.155, is amended by adding a subdivision
to read:


Subd. 5a.

Water quality and sustainability account.