HF 1437

4th Engrossment - 89th Legislature (2015 - 2016) Posted on 06/02/2016 12:20pm

A bill for an act
relating to jobs; appropriating money to the Departments of Employment
and Economic Development, Labor and Industry, and Commerce; Bureau of
Mediation Services; Housing Finance Agency; Explore Minnesota Tourism;
Workers' Compensation Court of Appeals; Public Utilities Commission; making
policy changes to the Departments of Employment and Economic Development,
Labor and Industry, and Commerce; making changes to housing, unemployment
insurance, and energy provisions; creating a MNvest regulation exemption;
creating various jobs and workforce development programs; regulating
insurance; allowing additional unemployment insurance benefits for certain
poultry workers and steelworkers; requiring reports; appointing task forces;
modifying fees and penalties; amending Minnesota Statutes 2014, sections
12A.15, subdivision 1; 45.0135, by adding a subdivision; 60D.215, subdivision
2; 65B.44, by adding a subdivision; 80A.84; 116J.394; 116J.8738, subdivision
3, by adding a subdivision; 116L.17, subdivision 4; 116L.98, subdivisions 3,
5, 7; 168.013, subdivision 1d; 216B.16, subdivisions 6, 7b, 19; 216B.164,
subdivision 3; 216B.2425; 268.035, subdivisions 6, 21b, 26, 30; 268.051,
subdivision 7; 268.07, subdivisions 2, 3b; 268.085, subdivisions 1, 2; 268.095,
subdivision 10; 268.105, subdivisions 3, 7; 268.136, subdivision 1; 268.188;
268.194, subdivision 1; 268A.01, subdivisions 6, 10, by adding a subdivision;
268A.03; 268A.06; 268A.07; 268A.085; 326B.092, subdivision 7; 326B.096;
326B.106, subdivision 1; 326B.13, subdivision 8; 326B.986, subdivisions 5, 8;
327.20, subdivision 1; 341.321; Laws 1994, chapter 493, section 1; Laws 2014,
chapter 308, article 6, section 14, subdivision 5; proposing coding for new law
in Minnesota Statutes, chapters 80A; 116J; 116L; 216B; proposing coding for
new law as Minnesota Statutes, chapter 59D; repealing Minnesota Statutes 2014,
section 268.042, subdivision 4.

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

ARTICLE 1

JOBS APPROPRIATIONS

Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.

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

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2016		2017

Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1. Total Appropriation			$	123,064,000	$	105,221,000

Appropriations by Fund
	2016	2017
General	94,458,000	78,007,000
Remediation	700,000	700,000
Workforce Development	27,356,000	26,514,000

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

Subd. 2. Business and Community Development

Appropriations by Fund
General	48,694,000	44,286,000
Remediation	700,000	700,000

(a)(1) $15,000,000 each year is for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Of this amount,
the commissioner may use up to three percent
for administrative expenses and technology
upgrades. This appropriation is available
until expended.

(2) Of the amount appropriated in fiscal
year 2016, up to $4,000,000 is for a
loan to construct a $10,000,000 aircraft
manufacturing facility. Funds available
under this clause may be used for purchases
of materials and supplies made from July
1, 2015, through June 30, 2016, and which
are directly related to the construction of
the aircraft manufacturing facility. This
loan is not subject to the limitations under
Minnesota Statutes, section 116J.8731,
subdivision 5. The commissioner shall
forgive the loan after verification that the
project has satisfied performance goals and
contractual obligations as required under
Minnesota Statutes, section 116J.8731,
subdivision 7. The amount available under
this clause is available until June 30, 2019.

(b) $12,500,000 each year is for the
Minnesota job creation fund under Minnesota
Statutes, section 116J.8748. Of this amount,
the commissioner may use up to three
percent for administrative expenses. This
appropriation is available until expended.

(c) $1,272,000 each year is from the
general fund for contaminated site cleanup
and development grants under Minnesota
Statutes, sections 116J.551 to 116J.558. This
appropriation is available until expended.

(d) $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 expended.

(e) $1,425,000 each year is from the
general fund 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.

(f) $4,195,000 each year is from the general
fund 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 expended.

(g) $12,000 each year is from the general
fund for a grant to the Upper Minnesota Film
Office.

(h) $325,000 each year is from the general
fund for the Minnesota Film and TV Board.
The appropriation in each year is available
only upon receipt by the board of $1 in
matching contributions of money or in-kind
contributions from nonstate sources for every
$3 provided by this appropriation, except that
each year up to $50,000 is available on July
1 even if the required matching contribution
has not been received by that date.

(i) $3,500,000 the first year and $1,500,000
the second year are 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 expended.

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

(k) $1,373,000 in fiscal year 2016 is for the
workforce housing grants pilot program in
Laws 2014, chapter 308, article 6, section 14.
This appropriation is onetime and is available
until June 30, 2018. The commissioner of
employment and economic development may
use up to five percent for administrative costs.

(l) $2,000,000 each year is for the workforce
housing grant program in Minnesota Statutes,
section 116J.549. Of this amount, up to five
percent is for administration and monitoring
of the program. The first year appropriation
is available until June 30, 2019. The second
year appropriation is available until June 30,
2020.

(m) $139,000 each year is from the general
fund for the Center for Rural Policy and
Development.

(n) $400,000 the first year is from the
general fund for a grant to develop and
implement a southern and southwestern
Minnesota initiative foundation collaborative
pilot project. Funds available under this
paragraph must be used to support and
develop entrepreneurs in diverse populations
in southern and southwestern Minnesota.
This is a onetime appropriation.

(o) $1,900,000 in fiscal year 2016 and
$1,300,000 in fiscal year 2017 are from
the general fund for the greater Minnesota
business development public infrastructure
grant program under Minnesota Statutes,
section 116J.431. Funds available under this
paragraph may be used for site preparation
of property owned and to be used by private
entities.

(1) Notwithstanding any law to the contrary,
of the amount appropriated in fiscal year
2016, $1,800,000 is for a grant to the city
of Cambridge to fund ongoing development
and improvement of Trunk Highway 95
within the city of Cambridge, including
economic development, land acquisition and
enhancements, safety improvements, design,
engineering, environmental studies, corridor
mappings, right-of-way acquisitions, and
associated improvements. Notwithstanding
Minnesota Statutes, section 116J.431,
subdivision 1, a local match is not required for
this project. This is a onetime appropriation
and any unspent funds do not lapse.

(2) Notwithstanding any law to the contrary,
of the amount appropriated in fiscal year
2016, $100,000 is for a grant to the city of
Taylors Falls for economic development,
redevelopment, and job creation programs
and projects. This appropriation is available
until expended.

(p) $35,000 the first year is for an economic
development grant for the city of Delano
to reimburse the Delano Fourth of July
Committee, Incorporated for unanticipated
tax liabilities related to past city celebrations.

Subd. 3. Workforce Development

Appropriations by Fund
General	2,689,000	2,039,000
Workforce Development	20,067,000	18,667,000

(a) $1,039,000 each year from the general
fund and $3,104,000 each year from the
workforce development fund are for the adult
workforce development competitive grant
program. Of this amount, up to five percent
is for administration and monitoring of the
adult workforce development competitive
grant program. All grant awards shall be
for two consecutive years. Grants shall be
awarded in the first year.

(b) $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, to
provide employment and career advising to
youth, including career guidance in secondary
schools, to address the youth career advising
deficiency, to carry out activities outlined
in Minnesota Statutes, section 116L.561,
to provide support services, and to provide
work experience to youth in the workforce
service areas. The funds in this paragraph
may be used for expansion of the pilot
program combining career and higher
education advising in Laws 2013, chapter 85,
article 3, section 27. Activities in workforce
services areas under this paragraph may
serve all youth up to age 24.

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

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

(e) $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.

(f) $1,500,000 each year is from the
workforce development fund for the
Opportunities Industrialization Center
programs. Of this amount, $1,000,000 each
year is for the Emerging Workforce Coalition.

(g) $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 jobs skills development. This
project, which may have career guidance
components, including health and life skills,
is to encourage, train, and assist youth in
job-seeking skills, workplace orientation,
and job-site knowledge through coaching.
This grant requires a 25 percent match from
nonstate resources.

(h) $500,000 the first year and $500,000 the
second year are appropriated from the general
fund for the publication, dissemination,
and use of labor market information under
Minnesota Statutes, section 116J.4011, and
for pilot programs in the workforce service
areas to combine career and higher education
advising.

(i) $125,000 each year is from the workforce
development fund for a grant to Big
Brothers, Big Sisters of the Greater Twin
Cities for workforce readiness, employment
exploration, and skills development for
youth ages 12 to 21. The grant must serve
youth in the Twin Cities, Central Minnesota
and Southern Minnesota Big Brothers, Big
Sisters chapters.

(j) $900,000 in fiscal year 2016 and
$1,100,000 in fiscal year 2017 are 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 in their field
of study. The internship opportunities
must match students with paid internships
within STEM disciplines at small, for-profit
companies located in the seven-county
metropolitan area, having fewer than 150
total employees; or at small or medium,
for-profit companies located outside of the
seven-county metropolitan area, having
fewer than 250 total employees. At least 200
students must be matched in the first year
and at least 250 students must be matched in
the second year. 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 among women or
other underserved populations.

(k) $140,000 each year is from the workforce
development fund for a grant to the St.
Cloud Area Somali Salvation Organization
for youth development and crime prevention
activities. Grant funds may be used to
train and place mentors in elementary and
secondary schools; for athletic, social,
and other activities to foster leadership
development; to provide a safe place for
participating youth to gather after school, on
weekends, and on holidays; and activities to
improve the organizational and job readiness
skills of participating youth.

(l) $150,000 in fiscal year 2016 is for an
analysis of various options for the delivery
of a family medical leave insurance program
and associated costs and benefits. This is a
onetime appropriation.

(m) $200,000 in fiscal year 2016 is from the
workforce development fund for the uniform
outcome report card requirements under
Minnesota Statutes, section 116L.98. This is
a onetime appropriation.

(n) $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, 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.

(o) $500,000 the first year is for a grant to
the Eastside Enterprise Center for economic
development and job creation, including
loans, business and workforce training, and
business assistance. This appropriation
shall be divided equally between African
Economic Development Solutions, the Asian
Economic Development Association, and the
Latino Economic Development Center. This
is a onetime appropriation.

(p) $400,000 in fiscal year 2016 is for a grant
to YWCA Saint Paul for training and job
placement assistance, including commercial
driver's license training, through the job
placement and retention program. This is a
onetime appropriation.

(q) $800,000 in fiscal year 2016 is from
the workforce development fund for
the customized training program for
manufacturing industries under Minnesota
Statutes, section 116L.65. This is a onetime
appropriation and is available in either year
of the biennium. Of this amount:

(1) $350,000 is for a grant to Central Lakes
College for the purposes of this paragraph;

(2) $250,000 is for Minnesota West
Community and Technical College for the
purposes of this paragraph; and

(3) $200,000 is for South Central College for
the purposes of this paragraph.

(r) $900,000 in fiscal year 2016 and $900,000
in fiscal year 2017 are from the workforce
development fund for job training grants
under Minnesota Statutes, section 116L.42.

(s) $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.

(t) $200,000 in fiscal year 2016 and $200,000
in fiscal year 2017 are from the workforce
development fund for performance grants
under Minnesota Statutes, section 116J.8747,
to Twin Cities RISE! to provide training to
hard-to-train individuals. This is a onetime
appropriation.

(u) $200,000 in fiscal year 2016 is from
the workforce development fund for the
foreign-trained health care professionals
grant program modeled after the pilot
program conducted under Laws 2006,
chapter 282, article 11, section 2, subdivision
12, to encourage state licensure of
foreign-trained health care professionals,
including: physicians, with preference given
to primary care physicians who commit
to practicing for at least five years after
licensure in underserved areas of the state;
nurses; dentists; pharmacists; mental health
professionals; and other allied health care
professionals. The commissioner must
collaborate with health-related licensing
boards and Minnesota workforce centers to
award grants to foreign-trained health care
professionals sufficient to cover the actual
costs of taking a course to prepare health
care professionals for required licensing
examinations and the fee for the state
licensing examinations. When awarding
grants, the commissioner must consider the
following factors:

(1) whether the recipient's training involves
a medical specialty that is in high demand in
one or more communities in the state;

(2) whether the recipient commits to
practicing in a designated rural area or an
underserved urban community, as defined in
Minnesota Statutes, section 144.1501;

(3) whether the recipient's language skills
provide an opportunity for needed health care
access for underserved Minnesotans; and

(4) any additional criteria established by the
commissioner.

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

Subd. 4. General Support Services

Appropriations by Fund
General	2,659,000	2,854,000
Workforce Development	9,000	17,000

$150,000 each year is from the general fund
for the cost-of-living study required under
Minnesota Statutes, section 116J.013.

$1,300,000 in fiscal year 2016 and
$1,300,000 in fiscal year 2017 are for
operating the Olmstead Implementation
Office. The base appropriation for the
office is $1,269,000 for fiscal year 2018 and
$1,269,000 in fiscal year 2019.

Subd. 5. Minnesota Trade Office

2,292,000

2,292,000

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

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

(c) $270,000 each year is for the expansion
of Minnesota Trade Offices under Minnesota
Statutes, section 116J.978.

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

Subd. 6. Vocational Rehabilitation

Appropriations by Fund
General	21,361,000	20,361,000
Workforce Development	7,830,000	7,830,000

(a) $10,800,000 each year is from the general
fund for the state's vocational rehabilitation
program under Minnesota Statutes, chapter
268A.

(b) $2,261,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
268A.11.

(c) $5,745,000 each year from the general
fund and $6,830,000 each year from the
workforce development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15.

(d) $1,555,000 each year is from the general
fund for grants to programs that provide
employment support services to persons with
mental illness under Minnesota Statutes,
sections 268A.13 and 268A.14.

(e) $1,000,000 each year is from the
workforce development fund for grants under
Minnesota Statutes, section 268A.16, for
employment services for persons, including
transition-aged youth, who are deaf,
deafblind, or hard-of-hearing. If the amount
in the first year is insufficient, the amount in
the second year is available in the first year.

(f) $1,000,000 in fiscal year 2016 is for a
grant to Assistive Technology of Minnesota,
a statewide nonprofit organization that is
exclusively dedicated to the issues of access
to and the acquisition of assistive technology.
The purpose of the grant is to acquire assistive
technology and to work in tandem with
individuals using this technology to create
career paths. This is a onetime appropriation.

(g) For purposes of this subdivision,
Minnesota Diversified Industries, Inc. is an
eligible provider of services for persons with
severe disabilities under Minnesota Statutes,
section 268A.15.

Subd. 7. Services for the Blind

5,925,000

5,925,000

Subd. 8. Broadband Development

10,838,000

250,000

(a) $250,000 each year is for the Broadband
Development Office.

(b)(1) $10,588,000 in fiscal year 2016 is for
deposit in the border-to-border broadband
fund account created under Minnesota
Statutes, section 116J.396, and may be used
for the purposes provided in Minnesota
Statutes, section 116J.395. This is a onetime
appropriation and is available until June 30,
2017.

(2) Of the appropriation in clause (1), up
to three percent of this amount is for costs
incurred by the commissioner to administer
Minnesota Statutes, section 116J.395.
Administrative costs may include the
following activities related to measuring
progress toward the state's broadband goals
established in Minnesota Statutes, section
237.012:

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

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

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

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

(c)(1) Of the amount appropriated under
paragraph (b), $2,000,000 in fiscal year
2016 is for grants to cities for broadband
infrastructure and other eligible expenses,
as identified in Minnesota Statutes, section
116J.395, subdivision 2, for a wire-line
broadband infrastructure demonstration
project that is part of a public-private
partnership.

(2) In order to be awarded the broadband
infrastructure grant under clause (1), a city
must demonstrate:

(i) funding from nonstate sources that
matches the amount appropriated in clause
(1);

(ii) broadband service outages of 12 hours or
more in the area within its jurisdiction;

(iii) a decline in the number of businesses in
the area within its jurisdiction, as a result of
adequate broadband service; and

(iv) an agreement that the city will own
the broadband infrastructure as part of the
public-private partnership.

(3) The commissioner of employment and
economic development must award the
broadband infrastructure grant under clause
(1) before September 1, 2015.

Sec. 3. HOUSING FINANCE AGENCY

Subdivision 1. Total Appropriation

$

53,048,000

$

49,048,000

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

Unless otherwise specified, this appropriation
is for transfer to the housing development
fund for the programs specified in this
section. Except as otherwise indicated, this
transfer is part of the agency's permanent
budget base.

Subd. 2. Challenge Program

14,925,000

12,925,000

(a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
The agency must continue to strengthen its
efforts to address the disparity rate between
white households and indigenous American
Indians and communities of color. Of this
amount, $1,208,000 each year shall be made
available during the first 11 months of the
fiscal year exclusively for housing projects
for American Indians. Any funds not
committed to housing projects for American
Indians in the first 11 months of the fiscal year
shall be available for any eligible activity
under Minnesota Statutes, section 462A.33.

(b)(1) $2,000,000 the first year is a onetime
appropriation and is targeted for housing in
communities and regions that have:

(i) low housing vacancy rates;

(ii) cooperatively developed a plan that
identifies current and future housing needs;

(iii) evidence of anticipated job expansion; or

(iv) a significant portion of area employees
who commute more than 30 miles between
their residence and their employment.

(2) Among comparable housing proposals,
preference must be given to proposals that:

(i) include a meaningful contribution from
area employers that reduces the need for
deferred loan or grant funds from state
resources; or

(ii) provide housing opportunities for an
expanded range of household incomes
within a community or that provide housing
opportunities for a wide range of incomes
within the development.

(c) The base amount for this program in fiscal
year 2018 and thereafter is $12,925,000.

Subd. 3. Housing Trust Fund

13,471,000

11,471,000

(a) This appropriation is for deposit in the
housing trust fund account created under
Minnesota Statutes, section 462A.201, and
may be used for the purposes provided in
that section. To the extent that these funds
are used for the acquisition of housing, the
agency shall give priority among comparable
projects to projects that focus on creating
safe and stable housing for homeless youth
or projects that provide housing to trafficked
women and children.

(b) $2,000,000 the first year is a onetime
appropriation for temporary rental assistance
for families with school-age children who
have changed their school or home at least
once in the last school year. The agency,
in consultation with the Department of
Education, may establish additional targeting
criteria.

Subd. 4. Rental Assistance for Mentally Ill

2,838,000

2,838,000

This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness under Minnesota Statutes,
section 462A.2097. Among comparable
proposals, the agency shall prioritize those
proposals that target, in part, eligible persons
who desire to move to more integrated,
community-based settings.

Subd. 5. Family Homeless Prevention

8,519,000

8,519,000

This appropriation is for the family homeless
prevention and assistance programs under
Minnesota Statutes, section 462A.204.

Subd. 6. Home Ownership Assistance Fund

885,000

885,000

This appropriation is for the home ownership
assistance program under Minnesota
Statutes, section 462A.21, subdivision 8.
The agency shall continue to strengthen
its efforts to address the disparity gap in
the homeownership rate between white
households and indigenous American Indians
and communities of color.

Subd. 7. Affordable Rental Investment Fund

4,218,000

4,218,000

(a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and
for making equity take-out loans under
Minnesota Statutes, section 462A.05,
subdivision 39.

(b) The owner of federally assisted rental
property must agree to participate in
the applicable federally assisted housing
program and to extend any existing
low-income affordability restrictions on the
housing for the maximum term permitted.
The owner must also enter into an agreement
that gives local units of government,
housing and redevelopment authorities,
and nonprofit housing organizations the
right of first refusal if the rental property
is offered for sale. Priority must be given
among comparable federally assisted rental
properties to properties with the longest
remaining term under an agreement for
federal assistance. Priority must also be
given among comparable rental housing
developments to developments that are or
will be owned by local government units, a
housing and redevelopment authority, or a
nonprofit housing organization.

(c) The appropriation also may be used to
finance the acquisition, rehabilitation, and
debt restructuring of existing supportive
housing properties. For purposes of this
paragraph, "supportive housing" means
affordable rental housing with links to
services necessary for individuals, youth, and
families with children to maintain housing
stability.

Subd. 8. Housing Rehabilitation

6,515,000

6,515,000

This appropriation is for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14. Of
this amount, $2,772,000 each year is for the
rehabilitation of owner-occupied housing and
$3,743,000 each year is for the rehabilitation
of eligible rental housing. In administering a
rehabilitation program for rental housing, the
agency may apply the processes and priorities
adopted for administration of the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.

Subd. 9. Homeownership Education, Counseling, and Training

857,000

857,000

This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
Priority may be given to funding programs
that are aimed at culturally specific groups
who are providing services to members of
their communities.

Subd. 10. Capacity Building Grants

375,000

375,000

This appropriation is for nonprofit capacity
building grants under Minnesota Statutes,
section 462A.21, subdivision 3b. Of this
amount, $250,000 each year is for support
of the Homeless Management Information
System (HMIS).

Sec. 4. EXPLORE MINNESOTA TOURISM

$

14,118,000

$

14,248,000

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

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

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

Sec. 5. DEPARTMENT OF LABOR AND INDUSTRY

Subdivision 1. Total Appropriation

$

23,646,000

$

24,234,000

Appropriations by Fund
	2016	2017
General	1,184,000	1,202,000
Workers' Compensation	21,419,000	21,975,000
Workforce Development	1,043,000	1,057,000

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

Subd. 2. Workers' Compensation

11,226,000

11,782,000

This appropriation is from the workers'
compensation fund.

Subd. 3. Labor Standards and Apprenticeship

Appropriations by Fund
General	1,184,000	1,202,000
Workforce Development	1,043,000	1,057,000

(a) $1,084,000 in fiscal year 2016 and
$1,102,000 in fiscal year 2017 are from the
general fund for the labor standards and
apprenticeship program.

(b) $879,000 in fiscal year 2016 and $879,000
in fiscal year 2017 are from the workforce
development fund for the apprenticeship
program under Minnesota Statutes, chapter
178. Of this amount, $100,000 each year
is for labor education and advancement
program grants and to expand and promote
registered apprenticeship training in
nonconstruction trade programs.

(c) $164,000 the first year and $178,000
the second year are from the workforce
development fund for prevailing wage
enforcement.

Subd. 4. Workplace Safety

4,154,000

4,154,000

This appropriation is from the workers'
compensation fund.

Subd. 5. General Support

6,039,000

6,039,000

This appropriation is from the workers'
compensation fund.

Sec. 6. BUREAU OF MEDIATION SERVICES

$

2,183,000

$

2,183,000

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

(b) $125,000 each year is for purposes of the
Public Employment Relations Board under
Minnesota Statutes, section 179A.041.

(c) $256,000 each year is for the Office
of Collaboration and Dispute Resolution
under Minnesota Statutes, section 179.90.
Of this amount, $160,000 each year is
for grants under Minnesota Statutes,
section 179.91, and $96,000 each year is
for intergovernmental and public policy
collaboration and operation of the office.

Sec. 7. WORKERS' COMPENSATION COURT OF APPEALS

$

1,703,000

$

1,703,000

This appropriation is from the workers'
compensation fund.

Sec. 8. DEPARTMENT OF COMMERCE

Subdivision 1. Total Appropriation

$

27,313,000

$

27,689,000

Appropriations by Fund
	2016	2017
General	24,270,000	24,646,000
Special Revenue	1,240,000	1,240,000
Petroleum Tank	1,052,000	1,052,000
Workers' Compensation	751,000	751,000

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

Subd. 2. Financial Institutions

4,885,000

4,885,000

Subd. 3. Petroleum Tank Release Compensation Board

1,052,000

1,052,000

This appropriation is from the petroleum
tank fund.

Subd. 4. Administrative Services

6,968,000

7,353,000

$375,000 each year is for additional
compliance efforts with unclaimed property.
The commissioner may issue contracts for
these services.

$100,000 each year is for the support of
broadband development.

$162,000 in fiscal year 2016 and $33,000 in
fiscal year 2017 are from the general fund
for rulemaking and administration under
Minnesota Statutes, section 80A.461.

$92,000 in fiscal year 2016 is appropriated
from the general fund to the commissioner
of commerce and is transferred to the
department of administration for the purpose
of completing the transfer of functions study
as follows:

(a) The commissioner of the Department
of Administration shall contract with the
Management, Analysis, and Development
Division of Minnesota Management and
Budget for a study to examine potential cost
savings and program efficiencies that may
result from transferring certain functions
and staff of the division of energy resources
in the Department of Commerce to the
Public Utilities Commission. In conducting
the study, the Management, Analysis, and
Development Division must:

(1) analyze the functions of the various
offices of both the division of energy
resources and the commission;

(2) assess any duplicative functions of staff
and redundant management positions;

(3) assess whether transferring specific
functions and staff would result in a clearer
and more functional link between authority
and responsibility for accomplishing various
activities;

(4) consider whether any such transfers would
make governmental decisions regarding
energy more transparent to the public;

(5) determine which specific positions,
including administrative support, could be
eliminated as a result of the transfer without
appreciably diminishing the quantity or
quality of work produced;

(6) calculate the budgetary savings that could
be realized as a result of transferring functions
and eliminating redundant positions;

(7) estimate any cost savings that would
accrue to regulated utilities as a result of
transferring functions;

(8) assess the benefits and costs of various
options with respect to transferring functions
and staff; and

(9) assume that any transfer is subject to the
provisions of Minnesota Statutes, section
15.039.

(b) The study must, by January 1, 2016, be
submitted to the chairs and ranking minority
members of the senate and house committees
with jurisdiction over energy policy and state
government operations.

Subd. 5. Telecommunications

Appropriations by Fund
General	1,009,000	1,009,000
Special Revenue	1,240,000	1,240,000

$1,240,000 each year is from the
telecommunication access fund for the
following transfers. This appropriation is
added to the department's base.

(1) $800,000 each year is to the commissioner
of human services to supplement the ongoing
operational expenses of the Commission
of Deaf, DeafBlind, and Hard-of-Hearing
Minnesotans;

(2) $290,000 each year is to the chief
information officer for the purpose of
coordinating technology accessibility and
usability; and

(3) $150,000 each year is to the Legislative
Coordinating Commission for captioning of
legislative coverage.

Subd. 6. Enforcement

Appropriations by Fund
General	4,622,000	4,622,000
Workers' Compensation	198,000	198,000

Subd. 7. Energy Resources

3,424,000

3,415,000

$150,000 each year is for grants to
providers of low-income weatherization
services to install renewable energy
equipment in households that are eligible for
weatherization assistance under Minnesota's
weatherization assistance program state
plan as provided for in Minnesota Statutes,
section 216C.264.

Subd. 8. Insurance

Appropriations by Fund
General	3,362,000	3,362,000
Workers' Compensation	553,000	553,000

Sec. 9. PUBLIC UTILITIES COMMISSION

$

6,966,000

$

6,930,000

ARTICLE 2

DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2014, section 116J.394, is amended to read:

116J.394 DEFINITIONS.

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

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

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

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

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

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

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

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

(i) "Unserved areas" means areas of Minnesota in which households or businesses
lack access to wire-line broadband service at speeds that meet a Federal Communications
Commission threshold of four megabits per second download and one megabit per second
upload, as defined in section 116J.39.

Sec. 2.

[116J.549] WORKFORCE HOUSING DEVELOPMENT PROGRAM.

Subdivision 1.

Establishment.

The commissioner of employment and economic
development shall establish a workforce housing development program to award grants to
eligible project areas to be used for qualified expenditures.

Subd. 2.

Definitions.

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

(b) "Eligible project area" means a home rule charter or statutory city with a
population exceeding 500; a community that has a combined population of 1,500 residents
located within 15 miles of a home rule charter or statutory city; or an area served by a joint
county-city economic development authority.

(c) "Joint county-city economic development authority" means an economic
development authority formed under Laws 1988, chapter 516, section 1, as a joint
partnership between a city and county and excluding those established by the county only.

(d) "Market rate residential rental properties" means properties that are rented
at market value, including new modular homes, new manufactured homes, and new
manufactured homes on leased land or in a manufactured home park, and excludes:

(1) properties constructed with financial assistance requiring the property to be
occupied by residents that meet income limits under federal or state law of initial
occupancy; and

(2) properties constructed with federal, state, or local flood recovery assistance,
regardless of whether that assistance imposed income limits as a condition of receiving
assistance.

(e) "Qualified expenditure" means expenditures for market rate residential rental
properties including acquisition of property; construction of improvements; and provisions
of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related
financing costs.

Subd. 3.

Application.

The commissioner shall develop forms and procedures
for soliciting and reviewing application for grants under this section. At a minimum, a
city must include in its application a resolution of its governing body certifying that the
matching amount as required under this section is available and committed.

Subd. 4.

Program requirements.

(a) The commissioner must not award a grant to
an eligible project area under this section until the following determinations are made:

(1) the average vacancy rate for rental housing located in the eligible project area,
and in any other city located within 15 miles or less of the boundaries of the area, has been
five percent or less for at least the prior two-year period;

(2) one or more businesses located in the eligible project area, or within 25 miles
of the area, that employs a minimum of 20 full-time equivalent employees in aggregate
have provided a written statement to the eligible project area indicating that the lack of
available rental housing has impeded their ability to recruit and hire employees; and

(3) the eligible project area has certified that the grants will be used for qualified
expenditures for the development of rental housing to serve employees of businesses
located in the eligible project area or surrounding area.

(b) Preference for grants awarded under this section shall be given to eligible project
areas with less than 18,000 people.

Subd. 5.

Allocation.

The amount of a grant may not exceed 25 percent of the
rental housing development project cost. The commissioner shall not award a grant to
a city without certification by the city that the amount of the grant shall be matched by
a local unit of government, business, or nonprofit organization with $1 for every $2
provided in grant funds.

Subd. 6.

Report.

Beginning January 15, 2016, the commissioner must annually
submit a report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over taxes and workforce development
specifying the projects that received grants under this section and the specific purposes for
which the grant funds were used.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Minnesota Statutes 2014, section 116J.8738, subdivision 3, is amended to read:

Subd. 3.

Certification of qualified business.

(a) A business may apply to
the commissioner for certification as a qualified business under this section. The
commissioner shall specify the form of the application, the manner and times for applying,
and the information required to be included in the application. The commissioner may
impose an application fee in an amount sufficient to defray the commissioner's cost of
processing certifications. Application fees are deposited in the greater Minnesota business
expansion administration account in the special revenue fund. A business must file a copy
of its application with the chief clerical officer of the city at the same time it applies to the
commissioner. For an agricultural processing facility located outside the boundaries of a
city, the business must file a copy of the application with the county auditor.

(b) The commissioner shall certify each business as a qualified business that:

(1) satisfies the requirements of subdivision 2;

(2) the commissioner determines would not expand its operations in greater
Minnesota without the tax incentives available under subdivision 4; and

(3) enters a business subsidy agreement with the commissioner that pledges to
satisfy the minimum expansion requirements of paragraph (c) within three years or less
following execution of the agreement.

The commissioner must act on an application within 90 days after its filing. Failure
by the commissioner to take action within the 90-day period is deemed approval of the
application.

(c) The business must increase the number of full-time equivalent employees
in greater Minnesota from the time the business subsidy agreement is executed by two
employees or ten percent, whichever is greater.

(d) The city, or a county for an agricultural processing facility located outside the
boundaries of a city, in which the business proposes to expand its operations may file
comments supporting or opposing the application with the commissioner. The comments
must be filed within 30 days after receipt by the city of the application and may include a
notice of any contribution the city or county intends to make to encourage or support the
business expansion, such as the use of tax increment financing, property tax abatement,
additional city or county services, or other financial assistance.

(e) Certification of a qualified business is effective for the seven-year period
beginning on the first day of the calendar month immediately following the date that the
commissioner informs the business of the award of the benefit.

EFFECTIVE DATE.

This section is effective retroactively from August 1, 2014.

Sec. 4.

Minnesota Statutes 2014, section 116J.8738, is amended by adding a
subdivision to read:

Subd. 6.

Funds.

Amounts in the greater Minnesota business expansion
administration account in the special revenue fund are appropriated to the commissioner of
employment and economic development for costs associated with processing applications
under subdivisions 3, 4, and 5, and for personnel and administrative expenses related to
administering the greater Minnesota business expansion program.

EFFECTIVE DATE.

This section is effective retroactively from August 1, 2014.

Sec. 5.

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

Subd. 4.

Use of funds.

Funds granted by the board under this section may be used
for any combination of the following, except as otherwise provided in this section:

(1) employment transition services such as developing readjustment plans for
individuals; outreach and intake; early readjustment; job or career counseling; testing;
orientation; assessment of skills and aptitudes; provision of occupational and labor market
information; job placement assistance; job search; job development; prelayoff assistance;
relocation assistance; programs provided in cooperation with employers or labor
organizations to provide early intervention in the event of plant closings or substantial
layoffs; and entrepreneurial training and business consulting;

(2) support services, including assistance to help the participant relocate to employ
existing skills; out-of-area job search assistance; family care assistance, including child
care; commuting assistance; emergency housing and rental assistance; counseling
assistance, including personal and financial; health care; emergency health assistance;
emergency financial assistance; work-related tools and clothing; and other appropriate
support services that enable a person to participate in an employment and training program
with the goal of reemployment;

(3) specific, short-term training to help the participant enhance current skills
in a similar occupation or industry; entrepreneurial training, customized training, or
on-the-job training; basic and remedial education to enhance current skills; and literacy
and work-related English training for non-English speakers; and

(4) long-term training in a new occupation or industry, including occupational skills
training or customized training in an accredited program recognized by one or more
relevant industries. Long-term training shall only be provided to dislocated workers whose
skills are obsolete and who have no other transferable skills likely to result in employment
at a comparable wage rate. Training shall only be provided for occupations or industries
with reasonable expectations of job availability based on the service provider's thorough
assessment of local labor market information where the individual currently resides or
is willing to relocate. This clause shall not restrict training in personal services or other
such industries.; and

(5) direct training services to provide a measurable increase in the job-related
skills of participating incumbent workers, including basic assessment, counseling, and
preemployment training services requested by the qualifying employer.

Sec. 6.

[116L.40] DEFINITIONS.

Subdivision 1.

Scope.

When used in sections 116L.40 to 116L.42, the following
terms have the meanings given them unless the context requires otherwise.

Subd. 2.

Agreement.

"Agreement" means the agreement between an employer and
the commissioner for a project.

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of employment
and economic development.

Subd. 4.

Disability.

"Disability" has the meaning given under United States Code,
title 42, chapter 126.

Subd. 5.

Employee.

"Employee" means the individual employed in a new job.

Subd. 6.

Employer.

"Employer" means the individual, corporation, partnership,
limited liability company, or association providing new jobs and entering into an agreement.

Subd. 7.

New job.

"New job" means a job:

(1) that is provided by a new or expanding business at a location in Minnesota
outside of the metropolitan area, as defined in section 473.121, subdivision 2;

(2) that provides at least 32 hours of work per week for a minimum of nine months
per year and is permanent with no planned termination date;

(3) that is certified by the commissioner as qualifying under the program before the
first employee is hired to fill the job; and

(4) for which an employee hired was not (i) formerly employed by the employer
in the state, or (ii) a replacement worker, including a worker newly hired as a result of a
labor dispute.

Subd. 8.

Program.

"Program" means the project or projects established under
sections 116L.40 to 116L.42.

Subd. 9.

Program costs.

"Program costs" means all necessary and incidental
costs of providing program services, except that program costs are increased by $1,000
per employee for an individual with a disability. The term does not include the cost of
purchasing equipment to be owned or used by the training or educational institution or
service.

Subd. 10.

Program services.

"Program services" means training and education
specifically directed to new jobs that are determined to be appropriate by the commissioner,
including in-house training; services provided by institutions of higher education and
federal, state, or local agencies; or private training or educational services. Administrative
services and assessment and testing costs are included.

Subd. 11.

Project.

"Project" means a training arrangement that is the subject of an
agreement entered into between the commissioner and an employer to provide program
services.

Sec. 7.

[116L.41] COMMISSIONER'S DUTIES AND POWERS; AGREEMENTS.

Subdivision 1.

Service provision.

Upon request, the commissioner shall provide
or coordinate the provision of program services under sections 116L.40 to 116L.42 to
a business eligible for grants under section 116L.42. The commissioner shall specify
the form of and required information to be provided with applications for projects to be
funded with grants under section 116L.42.

Subd. 2.

Agreements; required terms.

(a) The commissioner may enter into an
agreement to establish a project with an employer that:

(1) identifies program costs to be paid from sources under the program;

(2) identifies program costs to be paid by the employer;

(3) provides that on-the-job training costs for employees may not exceed 50 percent
of the annual gross wages and salaries of the new jobs in the first full year after execution
of the agreement up to a maximum of $10,000 per eligible employee;

(4) provides that each employee must be paid wages at least equal to the median
hourly wage for the county in which the job is located, as reported in the most recently
available data from the United States Bureau of the Census, plus benefits, by the earlier of
the end of the training period or 18 months of employment under the project; and

(5) provides that job training will be provided and the length of time of training.

(b) Before entering into a final agreement, the commissioner shall:

(1) determine that sufficient funds for the project are available under section
116L.42; and

(2) investigate the applicability of other training programs and determine whether
the job skills partnership grant program is a more suitable source of funding for the
training and whether the training can be completed in a timely manner that meets the
needs of the business.

The investigation under clause (2) must be completed within 15 days or as soon
as reasonably possible after the employer has provided the commissioner with all the
requested information.

Subd. 3.

Grant funds sufficient.

The commissioner must not enter into an agreement
under subdivision 2 unless the commissioner determines that sufficient funds are available.

Subd. 4.

Allocation.

The commissioner shall allocate grant funds under section
116L.42 to project applications based on a first-come, first-served basis, determined on the
basis of the commissioner's receipt of a complete application for the project, including the
provision of all of the required information. The agreement must specify the amount of
grant funds available to the employer for each year covered by the agreement.

Subd. 5.

Application fee.

The commissioner may charge each employer an
application fee to cover part or all of the administrative and legal costs incurred, not to
exceed $500 per employer. The fee is deemed approved under section 16A.1283. The fee
is deposited in the jobs training account in the special revenue fund and amounts in the
account are appropriated to the commissioner for the costs of administering the program.
The commissioner shall refund the fee to the employer if the application is denied because
program funding is unavailable.

Sec. 8.

[116L.42] JOBS TRAINING GRANTS.

Subdivision 1.

Recovery of program costs.

Amounts paid by employers for
program costs are repaid by a job training grant equal to the lesser of the following:

(1) the amount of program costs specified in the agreement for the project; or

(2) the amount of program costs paid by the employer for new employees under
a project.

Subd. 2.

Reports.

(a) By February 1, 2018, the commissioner shall report to the
governor and the legislature on the program. The report must include at least:

(1) the amount of grants issued under the program;

(2) the number of individuals receiving training under the program, including the
number of new hires who are individuals with disabilities;

(3) the number of new hires attributable to the program, including the number of
new hires who are individuals with disabilities;

(4) an analysis of the effectiveness of the grant in encouraging employment; and

(5) any other information the commissioner determines appropriate.

(b) The report to the legislature must be distributed as provided in section 3.195.

Sec. 9.

[116L.667] RURAL CAREER COUNSELING COORDINATORS.

Subdivision 1.

Requirement.

Each workforce service area located outside of the
metropolitan area, as defined in section 473.121, subdivision 2, except for a service area
that serves a single city outside of the metropolitan area, must have a career counseling
coordinator who is responsible for improving coordination and communication of
workforce development programs and services within the workforce service area, with
other workforce service areas and career counseling coordinators, and with administering
agencies. A career counseling coordinator may serve as the coordinator for up to two
service areas.

Subd. 2.

Responsibilities.

A career counseling coordinator is responsible for:

(1) understanding the needs of existing, new, and prospective service area businesses
in regard to workforce development programs, resources, and other services;

(2) connecting job seekers, secondary and higher education institutions, employers,
and other stakeholders and partners;

(3) providing services to job seekers including career counseling, training, and
work experience opportunities;

(4) assessing and compiling information about all workforce development programs
and services offered in the assigned workforce service area, including adult basic
education programs and programs and services at higher education institutions and
kindergarten through grade 12 schools;

(5) making recommendations to the commissioner regarding ways to improve
career counseling coordination, possible program changes, and new workforce programs
or initiatives;

(6) sharing best practices and collaborating with other career counseling coordinators
to promote and enable state-level coordination among workforce development programs
and administering agencies including, but not limited to, the Departments of Employment
and Economic Development, Education, and Labor and Industry, and the Office of Higher
Education; and

(7) promoting available workforce development and career counseling programs and
resources in the workforce service area.

Subd. 3.

Reporting; consolidation.

The workforce council in each of the workforce
service areas having a career counseling coordinator shall submit an annual report to
the commissioner that includes, but is not limited to, a narrative of and the number of
businesses, job seekers, and other stakeholders served by the career counseling coordinator
function, an accounting of workforce development and career counseling programs
and services offered in the assigned workforce service area, and any recommendations
for changes to workforce development efforts in the workforce service area. Beginning
January 15, 2016, and each year thereafter, the commissioner shall consolidate the reports
and submit the consolidated report to the legislative committees with jurisdiction over
economic development and workforce policy and finance.

Sec. 10.

Minnesota Statutes 2014, section 116L.98, subdivision 3, is amended to read:

Subd. 3.

Uniform outcome report card; reporting by commissioner.

(a) By
December 31 of each even-numbered year, the commissioner must report to the chairs
and ranking minority members of the committees of the house of representatives and the
senate having jurisdiction over economic development and workforce policy and finance
the following information separately for each of the previous two fiscal or calendar years,
for each program subject to the requirements of subdivision 1:

(1) the total number of participants enrolled;

(2) the median pre-enrollment wages based on participant wages for the second
through the fifth calendar quarters immediately preceding the quarter of enrollment
excluding those with zero income;

(3) the total number of participants with zero income in the second through fifth
calendar quarters immediately preceding the quarter of enrollment;

(4) the total number of participants enrolled in training;

(5) the total number of participants enrolled in training by occupational group;

(6) the total number of participants that exited the program and the average
enrollment duration of participants that have exited the program during the year;

(7) the total number of exited participants who completed training;

(8) the total number of exited participants who attained a credential;

(9) the total number of participants employed during three consecutive quarters
immediately following the quarter of exit, by industry;

(10) the median wages of participants employed during three consecutive quarters
immediately following the quarter of exit;

(11) the total number of participants employed during eight consecutive quarters
immediately following the quarter of exit, by industry; and

(12) the median wages of participants employed during eight consecutive quarters
immediately following the quarter of exit.;

(13) the total cost of the program;

(14) the total cost of the program per participant;

(15) the cost per credential received by a participant; and

(16) the administrative cost of the program.

(b) The report to the legislature must contain participant information by education
level, race and ethnicity, gender, and geography, and a comparison of exited participants
who completed training and those who did not.

(c) The requirements of this section apply to programs administered directly by the
commissioner or administered by other organizations under a grant made by the department.

Sec. 11.

Minnesota Statutes 2014, section 116L.98, subdivision 5, is amended to read:

Subd. 5.

Information.

(a) The information collected and reported under
subdivisions 3 and 4 shall be made available on the department's Web site.

(b) The commissioner must provide analysis of the data required under subdivision 3.

(c) The analysis under paragraph (b) must also include an executive summary of
program outcomes, including but not limited to enrollment, training, credentials, pre-
and post-program employment and wages, and a comparison of program outcomes by
participant characteristics.

(d) The data required in the comparative analysis under paragraph (c) must be
presented in both written and graphic format.

Sec. 12.

Minnesota Statutes 2014, section 116L.98, subdivision 7, is amended to read:

Subd. 7.

Workforce program net impact analysis.

(a) By January 15, 2015, the
commissioner must report to the committees of the house of representatives and the senate
having jurisdiction over economic development and workforce policy and finance on
the results of the net impact pilot project already underway as of the date of enactment
of this section.

(b) The commissioner shall contract with an independent entity to conduct an
ongoing net impact analysis of the programs included in the net impact pilot project under
paragraph (a), career pathways programs, and any other programs deemed appropriate
by the commissioner. The net impact methodology used by the independent entity under
this paragraph must be based on the methodology and evaluation design used in the net
impact pilot project under paragraph (a).

(c) By January 15, 2017, and every four years thereafter, the commissioner must
report to the committees of the house of representatives and the senate having jurisdiction
over economic development and workforce policy and finance the following information
for each program subject to paragraph (b):

(1) the net impact of workforce services on individual employment, earnings, and
public benefit usage outcomes; and

(2) a cost-benefit analysis for understanding the monetary impacts of workforce
services from the participant and taxpayer points of view.

The report under this paragraph must be made available to the public in an electronic
format on the Department of Employment and Economic Development's Web site.

(d) The department is authorized to create and maintain data-sharing agreements
with other departments, including corrections, human services, and any other department
that are necessary to complete the analysis. The department shall supply the information
collected for use by the independent entity conducting net impact analysis pursuant to the
data practices requirements under chapters 13, 13A, 13B, and 13C.

Sec. 13.

Minnesota Statutes 2014, section 268A.01, subdivision 6, is amended to read:

Subd. 6.

Community rehabilitation facility provider.

"Community rehabilitation
facility provider" means an entity which meets the definition of community rehabilitation
program in the federal Rehabilitation Act of 1973, as amended. However, for the
purposes of sections 268A.03, clause (1), 268A.06, 268A.085, and 268A.15, community
rehabilitation facility provider means an a nonprofit or public entity which is operated for
the primary purpose of providing or facilitating employment for persons with a severe
disability that provides at least one extended employment subprogram for persons with
the most significant disabilities.

EFFECTIVE DATE.

This section is effective July 1, 2015.

Sec. 14.

Minnesota Statutes 2014, section 268A.01, subdivision 10, is amended to read:

Subd. 10.

Extended employment program.

"Extended employment program"
means the center-based noncompetitive employment and supported employment
subprograms.

Sec. 15.

Minnesota Statutes 2014, section 268A.01, is amended by adding a
subdivision to read:

Subd. 15.

Noncompetitive employment.

"Noncompetitive employment" means
paid work:

(1) that is performed on a full-time or part-time basis, including self-employment,
for which the person is compensated at a rate that is less than the higher rate specified in
the Fair Labor Standards Act of 1938, United States Code, title 29, section 206, subsection
(a)(1), or the rate specified in the applicable state or local minimum wage law; and

(2)(i) for which the person is paid less than the customary rate paid by the employer
for the same or similar work performed by other nondisabled employees who are similarly
situated in similar occupations by the same employer and who have similar training,
experience, and skills; or

(ii) which is performed at a location where the employee does not interact with
nondisabled persons, not including supervisory personnel or persons who are providing
services to the employee, to the same extent that nondisabled persons who are in
comparable positions interact with other persons.

Sec. 16.

Minnesota Statutes 2014, section 268A.03, is amended to read:

268A.03 POWERS AND DUTIES.

The commissioner shall:

(1) certify the community rehabilitation facilities providers to offer extended
employment programs, grant funds to the extended employment programs, and perform
the duties as specified in section 268A.15;

(2) provide vocational rehabilitation services to persons with disabilities in
accordance with the federal Rehabilitation Act of 1973, Public Law 93-112, as amended.
Persons with a disability are entitled to free choice of vendor for any medical, dental,
prosthetic, or orthotic services provided under this paragraph;

(3) expend funds and provide technical assistance for the establishment,
improvement, maintenance, or extension of public and other nonprofit rehabilitation
facilities or centers;

(4) maintain a contractual or regulatory relationship with the United States as
authorized by the Social Security Act, as amended. Under this relationship, the state will
undertake to make determinations referred to in those public laws with respect to all
individuals in Minnesota, or with respect to a class or classes of individuals in this state that
is designated in the agreement at the state's request. It is the purpose of this relationship to
permit the citizens of this state to obtain all benefits available under federal law;

(5) provide an in-service training program for rehabilitation services employees by
paying for its direct costs with state and federal funds;

(6) conduct research and demonstration projects; provide training and instruction,
including establishment and maintenance of research fellowships and traineeships, along
with all necessary stipends and allowances; disseminate information to persons with a
disability and the general public; and provide technical assistance relating to vocational
rehabilitation and independent living;

(7) receive and disburse pursuant to law money and gifts available from
governmental and private sources including, but not limited to, the federal Department
of Education and the Social Security Administration, for the purpose of vocational
rehabilitation or independent living;

(8) design all state plans for vocational rehabilitation or independent living services
required as a condition to the receipt and disbursement of any money available from
the federal government;

(9) cooperate with other public or private agencies or organizations for the purpose
of vocational rehabilitation or independent living. Money received from school districts,
governmental subdivisions, mental health centers or boards, and private nonprofit
organizations is appropriated to the commissioner for conducting joint or cooperative
vocational rehabilitation or independent living programs;

(10) enter into contractual arrangements with instrumentalities of federal, state, or
local government and with private individuals, organizations, agencies, or facilities with
respect to providing vocational rehabilitation or independent living services;

(11) take other actions required by state and federal legislation relating to vocational
rehabilitation, independent living, and disability determination programs;

(12) hire staff and arrange services and facilities necessary to perform the duties
and powers specified in this section; and

(13) adopt, amend, suspend, or repeal rules necessary to implement or make
specific programs that the commissioner by sections 268A.01 to 268A.15 is empowered
to administer.

Sec. 17.

Minnesota Statutes 2014, section 268A.06, is amended to read:

268A.06 COMMUNITY REHABILITATION FACILITIES PROVIDERS.

Subdivision 1.

Application.

Any city, town, county, nonprofit corporation,
regional treatment center, or any combination thereof, may apply to the commissioner for
assistance in establishing or operating a community rehabilitation facility an extended
employment program. Application for assistance must be on forms prescribed by the
commissioner. An applicant is not eligible for a grant under this section unless its audited
financial statements of the prior fiscal year have been approved by the commissioner.

Subd. 2.

Funding.

In order to provide the necessary funds for extended employment
programs offered by a community rehabilitation facility provider, the governing body of
any city, town, or county may expend money which may be available for such purposes in
the general fund, and may levy a tax on the taxable property in the city, town, or county. Any
city, town, county, or nonprofit corporation may accept gifts or grants from any source for
the rehabilitation facility extended employment program. Any money appropriated, taxed,
or received as a gift or grant may be used to match funds available on a matching basis.

Sec. 18.

Minnesota Statutes 2014, section 268A.07, is amended to read:

268A.07 REQUIREMENTS FOR CERTIFICATION.

Subdivision 1.

Benefits.

A community rehabilitation facility provider must, as
a condition for receiving program certification, provide employees in center-based
noncompetitive employment with personnel benefits prescribed in rules adopted by the
commissioner of the Department of employment and economic development.

Subd. 2.

Grievance procedure.

A community rehabilitation facility provider must,
as a condition for receiving program certification, provide to employees in center-based
noncompetitive employment subprograms, a grievance procedure which has as its final
step provisions for final and binding arbitration.

Sec. 19.

Minnesota Statutes 2014, section 268A.085, is amended to read:

268A.085 COMMUNITY REHABILITATION FACILITY PROVIDER
GOVERNING BOARDS.

Subdivision 1.

Appointment; membership.

Every city, town, county, nonprofit
corporation, or combination thereof establishing a rehabilitation facility an extended
employment program shall appoint a rehabilitation facility governing board of no fewer
than seven voting members before becoming eligible for the assistance provided by
sections 268A.06 to 268A.15. When any city, town, or county singly establishes such a
rehabilitation facility an extended employment program, the governing board shall be
appointed by the chief executive officer of the city or the chair of the governing board
of the county or town. When any combination of cities, towns, counties, or nonprofit
corporations establishes a rehabilitation facility an extended employment program, the
chief executive officers of the cities, nonprofit corporations, and the chairs of the governing
bodies of the counties or towns shall appoint the board. If a nonprofit corporation singly
establishes a rehabilitation facility an extended employment program, the corporation
shall appoint the board of directors. Membership on a board shall be representative of
the community served and shall include a person with a disability. If a county establishes
an extended employment program and manages the program with county employees, the
governing board shall be the county board of commissioners, and other provisions of this
chapter pertaining to membership on the governing board do not apply.

Subd. 2.

Duties.

Subject to the provisions of sections 268A.06 to 268A.15 and the
rules of the department, each rehabilitation facility governing board shall:

(1) review and evaluate the need for extended employment programs offered by the
rehabilitation facility provided under sections 268A.06 to 268A.15;

(2) recruit and promote local financial support for extended employment programs
from private sources including: the United Way; business, industrial, and private
foundations; voluntary agencies; and other lawful sources, and promote public support
for municipal and county appropriations;

(3) promote, arrange, and implement working agreements with other educational
and social service agencies, both public and private, and any other allied agencies; and

(4) when an extended employment program offered by the rehabilitation facility is
certified, act as the its administrator of the rehabilitation facility and its programs for
purposes of this chapter.

Sec. 20.

Laws 2014, chapter 308, article 6, section 14, subdivision 5, is amended to read:

Subd. 5.

Allocation.

The amount of a grant may not exceed the lesser of $400,000
$1,000,000 or ten 25 percent of the rental housing development project cost. The
commissioner shall not award a grant to a city without certification by the city that the
amount of the grant shall be matched by a local unit of government, business, or nonprofit
organization with $1 for every $2 provided in grant funds.

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies retroactively to grants that have been previously received or awarded.

Sec. 21. MECHANISMS AND COSTS; MINNESOTA PAID FAMILY AND
MEDICAL LEAVE PROGRAM.

The Department of Employment and Economic Development, in collaboration with
the Departments of Labor and Industry and Health and Human Services, shall report on
the most efficient and effective mechanisms that would provide partial wage replacement
for workers taking parental, family, or medical leave.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 3

DEPARTMENT OF COMMERCE

Section 1.

Minnesota Statutes 2014, section 12A.15, subdivision 1, is amended to read:

Subdivision 1.

State cost-share for federal assistance.

State appropriations may be
used to pay 100 percent of the nonfederal share for state agencies and, local governments,
and utility cooperatives under section 12.221. An appropriation from the bond proceeds
fund may be used as cost-share for federal disaster assistance for publicly owned capital
improvement projects.

Sec. 2.

Minnesota Statutes 2014, section 45.0135, is amended by adding a subdivision
to read:

Subd. 9.

Administrative penalty for insurance fraud.

(a) The commissioner may:

(1) impose an administrative penalty against any person in an amount as set forth in
paragraph (b) for each intentional act of insurance fraud committed by that person; and

(2) order restitution to any person suffering loss as a result of the insurance fraud.

(b) The administrative penalty for each violation described in paragraph (a) may be
no more than:

(1) $20,000 if the funds or the value of the property or services wrongfully obtained
exceeds $5,000;

(2) $10,000 if the funds or value of the property or services wrongfully obtained
exceeds $1,000, but not more than $5,000;

(3) $3,000 if the funds or value of the property or services wrongfully obtained is
more than $500, but not more than $1,000; and

(4) $1,000 if the funds or value of the property or services wrongfully obtained
is $500 or less.

(c) If an administrative penalty is not paid after all rights of appeal have been
waived or exhausted, the commissioner may bring a civil action in a court of competent
jurisdiction to collect the administrative penalty, including expenses and litigation costs,
reasonable attorney fees, and interest.

(d) This section does not affect a person's right to seek recovery, including expenses
and litigation costs, reasonable attorney fees, and interest, against any person that commits
insurance fraud.

(e) For purposes of this subdivision, "insurance fraud" has the meaning given in
section 60A.951, subdivision 4.

(f) Hearings under this subdivision must be conducted in accordance with chapter
14 and any other applicable law.

(g) All revenues from penalties, expenses, costs, fees, and interest collected under
paragraphs (a) to (c) shall be deposited in the insurance fraud prevention account under
section 45.0135, subdivision 6.

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies with respect to acts committed on or after that date.

Sec. 3.

[59D.01] APPLICATION.

(a) This chapter does not apply to:

(1) a policy of insurance offered in compliance with chapters 60A to 79A;

(2) a debt cancellation or debt suspension contract, including a guaranteed asset
protection waiver, being offered by a banking institution or credit union in compliance
with chapter 48 or 52; and

(3) a debt cancellation or debt suspension contract being offered in compliance with
Code of Federal Regulations, title 12, parts 37, 721, or other federal law.

(b) Guaranteed asset protection waivers regulated under this chapter are not
insurance and are not subject to chapters 60A to 79A. Persons selling, soliciting, or
negotiating guaranteed asset protection waivers to borrowers in compliance with this
chapter are exempt from chapter 60K.

(c) The commissioner of commerce has the full investigatory authority of chapter 45
to enforce the terms of this chapter.

Sec. 4.

[59D.02] DEFINITIONS.

Subdivision 1.

Terms.

For purposes of this chapter, the terms defined in subdivisions
2 to 10 have the meanings given them.

Subd. 2.

Administrator.

"Administrator" means a person, other than an insurer
or creditor who performs administrative or operational functions pursuant to guaranteed
asset protection waiver programs.

Subd. 3.

Borrower.

"Borrower" means a debtor, retail buyer, or lessee under a
finance agreement.

Subd. 4.

Creditor.

"Creditor" means:

(1) the lender in a loan or credit transaction;

(2) the lessor in a lease transaction;

(3) a dealer or seller of motor vehicles that provides credit to purchasers of the motor
vehicles provided that the entities comply with this section;

(4) the seller in commercial retail installment transactions; or

(5) the assignees of any of the forgoing to whom the credit obligation is payable.

Subd. 5.

Finance agreement.

"Finance agreement" means a loan, lease, or retail
installment sales contract for the purchase or lease of a motor vehicle.

Subd. 6.

Free look period.

"Free look period" means the period of time from the
effective date of the GAP waiver until the date the borrower may cancel the contract without
penalty, fees, or costs to the borrower. This period of time must not be shorter than 30 days.

Subd. 7.

Guaranteed asset protection waiver.

"Guaranteed asset protection waiver"
or "GAP waiver" means a contractual agreement wherein a creditor agrees for a separate
charge to cancel or waive all or part of amounts due on a borrower's finance agreement in
the event of a total physical damage loss or unrecovered theft of the motor vehicle.

Subd. 8.

Insurer.

"Insurer" means an insurance company licensed, registered, or
otherwise authorized to do business under Minnesota law.

Subd. 9.

Motor vehicle.

"Motor vehicle" means self-propelled or towed vehicles
designed for personal or commercial use, including, but not limited to, automobiles;
trucks; motorcycles; recreational vehicles; all-terrain vehicles; snowmobiles; campers;
boats; personal watercraft; and motorcycle, boat, camper, and personal watercraft trailers.
A creditor is prohibited from selling a GAP waiver in conjunction with the sale or lease of
any used motor vehicle that is an automobile or truck that is valued at less than $5,000.

Subd. 10.

Person.

"Person" includes an individual, company, association,
organization, partnership, business trust, corporation, and every form of legal entity.

Sec. 5.

[59D.03] COMMERCIAL TRANSACTIONS EXEMPTED.

Sections 59D.04, subdivision 3, and 59D.06 do not apply to a guaranteed asset
protection waiver offered in connection with a lease or retail installment sale associated
with any transaction not for personal, family, or household purposes.

Sec. 6.

[59D.04] GUARANTEED ASSET PROTECTION WAIVER
REQUIREMENTS.

Subdivision 1.

Authorization.

GAP waivers may be offered, sold, or provided to
borrowers in Minnesota in compliance with this chapter.

Subd. 2.

Payment options.

GAP waivers may, at the option of the creditor, be sold
for a single payment or may be offered with a monthly or periodic payment option.

Subd. 3.

Certain costs not considered finance charge or interest.

Notwithstanding
any other provision of law, any cost to the borrower for a guaranteed asset protection
waiver entered into in compliance with United States Code, title 15, sections 1601 to
1667F, and its implementing regulations under Code of Federal Regulations, title 12, part
226, as they may be amended from time to time, must be separately stated and is not to
be considered a finance charge or interest.

Subd. 4.

Insurance.

A retail seller must insure its GAP waiver obligations under a
contractual liability or other insurance policy issued by an insurer. A creditor, other than a
retail seller, may insure its GAP waiver obligations under a contractual liability policy or
other such policy issued by an insurer. The insurance policy may be directly obtained by a
creditor or retail seller, or may be procured by an administrator to cover a creditor's or
retail seller's obligations. Retail sellers that are lessors on motor vehicles are not required
to insure obligations related to GAP waivers on leased vehicles.

Subd. 5.

Financing agreement.

The GAP waiver must be part of, or a separate
addendum to, the finance agreement and must remain a part of the finance agreement upon
the assignment, sale, or transfer of the finance agreement by the creditor.

Subd. 6.

Purchase restriction.

The extension of credit, the terms of the credit, or
the terms and conditions of the related motor vehicle sale or lease must not be conditioned
upon the purchase of a GAP waiver.

Subd. 7.

Reporting.

A creditor that offers a GAP waiver must report the sale of, and
forward funds received on, all such waivers to the designated party, if any, as prescribed
in any applicable administrative services agreement, contractual liability policy, other
insurance policy, or other specified program documents.

Subd. 8.

Fiduciary responsibilities.

Funds received or held by a creditor or
administrator and belonging to an insurer, creditor, or administrator, pursuant to the terms
of a written agreement, must be held by the creditor or administrator in a fiduciary capacity.

Subd. 9.

Defined terms.

The terms defined in section 59D.02 are not intended to
provide actual terms that are required in guaranteed asset protection waivers.

Sec. 7.

[59D.05] CONTRACTUAL LIABILITY OR OTHER INSURANCE
POLICIES.

Subdivision 1.

Reimbursement or payment statement.

Contractual liability or
other insurance policies insuring GAP waivers must state the obligation of the insurer to
reimburse or pay to the creditor any sums the creditor is legally obligated to waive under
the GAP waivers issued by the creditor and purchased or held by the borrower.

Subd. 2.

Coverage of assignee.

Coverage under a contractual liability or other
insurance policy insuring a GAP waiver must also cover a subsequent assignee upon the
assignment, sale, or transfer of the finance agreement.

Subd. 3.

Term.

Coverage under a contractual liability or other insurance policy
insuring a GAP waiver must remain in effect unless canceled or terminated in compliance
with applicable laws.

Subd. 4.

Effect of cancellation or termination.

The cancellation or termination of
a contractual liability or other insurance policy must not reduce the insurer's responsibility
for GAP waivers issued by the creditor before the date of cancellation or termination and
for which a premium has been received by the insurer.

Sec. 8.

[59D.06] DISCLOSURES.

(a) Guaranteed asset protection waivers must disclose, as applicable, in writing and
in clear, understandable language that is easy to read, the following:

(1) the name and address of the initial creditor and the borrower at the time of sale,
and the identity of any administrator if different from the creditor;

(2) the purchase price and the terms of the GAP waiver, including without limitation,
the requirements for protection, conditions, or exclusions associated with the GAP waiver;

(3) that the borrower may cancel the GAP waiver within a free look period as
specified in the waiver, and will be entitled to a full refund of the purchase price, so
long as no benefits have been provided;

(4) the procedure the borrower must follow, if any, to obtain GAP waiver benefits
under the terms and conditions of the waiver, including a telephone number and address
where the borrower may apply for waiver benefits;

(5) whether or not the GAP waiver is cancelable after the free look period and the
conditions under which it may be canceled or terminated including the procedures for
requesting a refund due;

(6) that in order to receive a refund due in the event of a borrower's cancellation of
the GAP waiver agreement or early termination of the finance agreement after the free
look period of the GAP waiver, the borrower, in accordance with the terms of the waiver,
must provide a written cancellation request to the creditor, administrator, or other party.
If such a request is being made because of the termination of the finance agreement,
notice must be provided to the creditor, administrator, or other party within 90 days of the
occurrence of the event terminating the finance agreement;

(7) the methodology for calculating a refund of the unearned purchase price of the
GAP waiver due in the event of cancellation of the GAP waiver or early termination
of the finance agreement;

(8) that the extension of credit, the terms of the credit, or the terms and conditions
of the related motor vehicle sale or lease are not conditioned upon the purchase of the
GAP waiver; and

(9) that the extension of credit, the terms of the credit, or the terms and conditions
of the related motor vehicle sale or lease are not conditioned upon the purchase of the
GAP waiver.

(b) The creditor or any person offering a GAP waiver must provide the following
verbatim disclosure orally and in bold, 14-point type, either in a separate writing or as
part of the agreement: "THE GAP WAIVER IS OPTIONAL. YOU DO NOT HAVE
TO PURCHASE THIS PRODUCT IN ORDER TO BUY [OR LEASE] THIS MOTOR
VEHICLE. YOU ALSO HAVE A LIMITED RIGHT TO CANCEL."

Sec. 9.

[59D.07] CANCELLATION; REFUNDS.

Subdivision 1.

Refund requirements during free look period.

A GAP waiver must
provide that, if a borrower cancels a waiver within the free look period, the borrower will
be entitled to a full refund of the purchase price, so long as no benefits have been provided.

Subd. 2.

Refund requirements after free-look period.

(a) Guaranteed asset
protection waivers may be cancelable or noncancelable after the free-look period.

(b) In the event of a borrower's cancellation of the GAP waiver or early termination
of the finance agreement, after the agreement has been in effect beyond the free-look
period, the borrower may be entitled to a refund of any unearned portion of the purchase
price of the waiver unless the waiver provides otherwise. In order to receive a refund,
the borrower, in accordance with any applicable terms of the waiver, must provide a
written request to the creditor, administrator, or other party. If such a request is being
made because of the termination of the finance agreement, notice must be provided to
the creditor, administrator, or other party within 90 days of the occurrence of the event
terminating the finance agreement.

(c) If the cancellation of a GAP waiver occurs as a result of a default under the
finance agreement or the repossession of the motor vehicle associated with the finance
agreement, or any other termination of the finance agreement, any refund due may be paid
directly to the creditor or administrator and applied as set forth in subdivision 3.

Subd. 3.

How applied.

A refund under subdivision 1 or 2 may be applied by the
creditor as a reduction of the amount owed under the finance agreement, unless the
borrower can show that the finance agreement has been paid in full.

Sec. 10.

Minnesota Statutes 2014, section 60D.215, subdivision 2, is amended to read:

Subd. 2.

Expenses.

Each registered insurer subject to this section is liable for and
shall pay the reasonable expenses of the commissioner's participation in a supervisory
college in accordance with subdivision 3, including reasonable travel expenses. For
purposes of this section, a supervisory college may be convened as either a temporary
or permanent forum for communication and cooperation between the regulators charged
with the supervision of the insurer or its affiliates, and the commissioner may establish a
regular assessment to the insurer for the payment of these expenses. A registered insurer's
liability for expenses under this subdivision is limited to the actual, incurred costs of the
commissioner's participation in their supervisory college.

Sec. 11.

Minnesota Statutes 2014, section 65B.44, is amended by adding a subdivision
to read:

Subd. 2a.

Person convicted of insurance fraud.

(a) A person convicted of
insurance fraud under section 609.611 in a case related to this chapter or of employment of
runners under section 609.612 may not enforce a contract for payment of services eligible
for reimbursement under subdivision 2, against an insured or reparation obligor.

(b) After a period of five years from the date of conviction, a person described in
paragraph (a) may apply to district court to extinguish the collateral sanction set forth in
paragraph (a), which the court may grant in its reasonable discretion.

EFFECTIVE DATE.

This section is effective the day following final enactment,
and applies with respect to acts committed on or after that date.

Sec. 12.

[80A.461] MNVEST REGISTRATION EXEMPTION.

Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in
paragraphs (b) through (e) have the meanings given them.

(b) "MNvest issuer" means an entity organized under the laws of Minnesota, other
than a general partnership, that satisfies the requirements of Code of Federal Regulations,
title 17, part 230.147, and the following requirements:

(1) the principal office of the entity is located in Minnesota;

(2) as of the last day of the most recent semiannual fiscal period of the entity, at least
80 percent, or other threshold permitted by Code of Federal Regulations, title 17, part
230.147, of the entity's assets were located in Minnesota;

(3) except in the case of an entity whose gross revenue during the most recent period
of 12 full months did not exceed $5,000, the entity derived at least 80 percent, or other
threshold permitted by Code of Federal Regulations, title 17, part 230.147, of the entity's
gross revenues from the operation of a business in Minnesota during (i) the previous fiscal
year, if the MNvest offering begins during the first six months of the entity's fiscal year; or
(ii) during the 12 months ending on the last day of the sixth month of the entity's current
fiscal year, if the MNvest offering begins following the last day;

(4) the entity does not attempt to limit its liability, or the liability of any other
person, for fraud or intentional misrepresentation in connection with the offering of its
securities in a MNvest offering; and

(5) the entity is not:

(i) engaged in the business of investing, reinvesting, owning, holding, or trading in
securities, except that the entity may hold securities of one class in an entity that is not
itself engaged in the business of investing, reinvesting, owning, holding, or trading in
securities; or

(ii) subject to the reporting requirements of the Securities and Exchange Act of
1934, section 13 or 15(d), United States Code, title 15, sections 78m and 78o(d).

(c) "MNvest offering" means an offer, or an offer and sale, of securities by a MNvest
issuer that: (1) is conducted exclusively through a MNvest portal, and (2) satisfies the
requirements of this section and other requirements the administrator imposes by rule.

(d) "MNvest portal" means an Internet Web site that is operated by a portal operator
for the offer or sale of MNvest offerings under this section or registered securities under
section 80A.50, paragraph (b), and satisfies the requirements of subdivision 6.

(e) "Portal operator" means an entity, including an issuer, that:

(1) is authorized to do business in Minnesota;

(2) is a broker-dealer registered under this chapter or otherwise registers with the
administrator as a portal operator in accordance with subdivision 7, paragraph (a), and is
therefore excluded from broker-dealer registration; and

(3) satisfies such other conditions as the administrator may determine.

Subd. 2.

Generally.

The offer, sale, and issuance of securities in a MNvest offering
is exempt from the requirements of sections 80A.49 to 80A.54, except 80A.50, paragraph
(a), clause (3), and 80A.71, if the issuer meets the qualifications under this section.

Subd. 3.

MNvest offering.

A MNvest offering must satisfy the following
requirements:

(1) the issuer must be a MNvest issuer on the date that its securities are first offered
for sale in the offering and continuously through the closing of the offering;

(2) the offering must meet the requirements of the federal exemption for intrastate
offerings in section 3(a)(11) of the Securities Act of 1933, United States Code, title 15,
section 77c(a)(11), and Rule 147 adopted under the Securities Act of 1933, Code of
Federal Regulations, title 17, part 230.147;

(3) the sale of securities must be conducted exclusively through a MNvest portal;

(4) the MNvest issuer shall require the portal operator to provide or make available
to prospective purchasers through the MNvest portal a copy of the MNvest issuer's balance
sheet and income statement for the MNvest issuer's most recent fiscal year, if the issuer
was in existence. For offerings beginning more than 90 days after the issuer's most recent
fiscal year end, or if the MNvest issuer was not in existence the previous calendar year, the
MNvest issuer must provide or make available a balance sheet as of a date not more than
90 days before the commencement of the MNvest offering for the MNvest issuer's most
recently completed fiscal year, or such shorter portion the MNvest issuer was in existence
during that period, and the year-to-date period, or inception-to-date period, if shorter,
corresponding with the more recent balance sheet required by this clause;

(5) in any 12-month period, the MNvest issuer shall not raise more than the
aggregate amounts set forth in item (i) or (ii), either in cash or other consideration, in
connection with one or more MNvest offerings:

(i) $2,000,000 if the financial statements described in clause (4) have been (A)
audited by a certified public accountant firm licensed under chapter 326A using auditing
standards issued by either the American Institute of Certified Public Accountants or the
Public Company Oversight Board, or (B) reviewed by a certified public accountant
firm licensed under chapter 326A using the Statements on Standards for Accounting
and Review Services issued by the Accounting and Review Services Committee of the
American Institute of Certified Public Accountants; or

(ii) $1,000,000 if the financial statements described in clause (4) have not been
audited or reviewed as described in item (i);

(6) the MNvest issuer must use at least 80 percent of the net proceeds of the offering
in connection with the operation of its business within Minnesota;

(7) no single purchaser may purchase more than $10,000 in securities of the MNvest
issuer under this exemption in connection with a single MNvest offering unless the
purchaser is an accredited investor;

(8) all payments for the purchase of securities must be held in escrow until the
aggregate capital deposited into escrow from all purchasers is equal to or greater than the
stated minimum offering amount. Purchasers will receive a return of all their subscription
funds if the minimum offering amount is not raised by the stipulated expiration date
required in subdivision 4, clause (2). The escrow agent must be a bank, regulated trust
company, savings bank, savings association, or credit union authorized to do business
in Minnesota. Prior to the execution of the escrow agreement between the issuer and
the escrow agent, the escrow agent must conduct searches of the issuer, its executive
officers, directors, governors, and managers, as provided to the escrow agent by the portal
operator, against the Specially Designated Nationals list maintained by the Office of
Foreign Assets Control. The escrow agent is only responsible to act at the direction of the
party establishing the escrow account and does not have a duty or liability, contractual
or otherwise, to an investor or other person except as set forth in the applicable escrow
agreement or other contract;

(9) the MNvest issuer shall require the portal operator to make available to the
prospective purchaser through the MNvest portal a disclosure document that meets the
requirements set forth in subdivision 4;

(10) before selling securities to a prospective purchaser on a MNvest portal, the
MNvest issuer shall require the portal operator to obtain from the prospective purchaser
the certification required under subdivision 5;

(11) not less than ten days before the beginning of an offering of securities in reliance
on the exemption under this section, the MNvest issuer shall provide the following to
the administrator:

(i) a notice of claim of exemption from registration, specifying that the MNvest
issuer will be conducting an offering in reliance on the exemption under this section;

(ii) a copy of the disclosure document to be provided to prospective purchasers in
connection with the offering, as described in subdivision 4; and

(iii) a filing fee of $300; and

(12) the MNvest issuer and the portal operator may engage in solicitation and
advertising of the MNvest offering provided that:

(i) the advertisement contains disclaiming language which clearly states:

(A) the advertisement is not the offer and is for informational purposes only;

(B) the offering is being made in reliance on the exemption under this section;

(C) the offering is directed only to residents of the state;

(D) all offers and sales are made through a MNvest portal; and

(E) the Department of Commerce is the securities regulator in Minnesota;

(ii) along with the disclosures required under item (i), the advertisement may contain
no more than the following information:

(A) the name and contact information of the MNvest issuer;

(B) a brief description of the general type of business of the MNvest issuer;

(C) the minimum offering amount the MNvest issuer is attempting to raise through
its offering;

(D) a description of how the issuer will use the funds raised through the MNvest
offering;

(E) the duration that the MNvest offering will remain open;

(F) the MNvest issuer's logo; and

(G) a link to the MNvest issuer's Web site and the MNvest portal in which the
MNvest offering is being made;

(iii) the advertisement complies with all applicable state and federal laws.

Subd. 4.

Required disclosures to prospective MNvest offering purchasers.

The MNvest issuer shall require the portal operator to make available to the prospective
purchaser through the MNvest portal a printable or downloadable disclosure document
containing the following:

(1) the MNvest issuer's type of entity, the address and telephone number of its
principal office, its formation history for the previous five years, a summary of the material
facts of its business plan and its capital structure, and its intended use of the offering
proceeds, including any amounts to be paid from the proceeds of the MNvest offering, as
compensation or otherwise, to an owner, executive officer, director, governor, manager,
member, or other person occupying a similar status or performing similar functions on
behalf of the MNvest issuer;

(2) the MNvest offering must stipulate the date on which the offering will expire,
which must not be longer than 12 months from the date the MNvest offering commenced;

(3) a copy of the escrow agreement between the escrow agent, the MNvest issuer,
and, if applicable, the portal operator, as described in subdivision 3, clause (8);

(4) the financial statements required under subdivision 3, clause (4);

(5) the identity of all persons owning more than ten percent of any class of equity
interests in the company;

(6) the identity of the executive officers, directors, governors, managers, members,
and other persons occupying a similar status or performing similar functions in the name of
and on the behalf of the MNvest issuer, including their titles and their relevant experience;

(7) the terms and conditions of the securities being offered, a description of investor
exit strategies, and of any outstanding securities of the MNvest issuer; the minimum and
maximum amount of securities being offered; either the percentage economic ownership
of the MNvest issuer represented by the offered securities, assuming the minimum and, if
applicable, maximum number of securities being offered is sold, or the valuation of the
MNvest issuer implied by the price of the offered securities; the price per share, unit, or
interest of the securities being offered; any restrictions on transfer of the securities being
offered; and a disclosure that any future issuance of securities might dilute the value of
securities being offered;

(8) the identity of and consideration payable to a person who has been or will be
retained by the MNvest issuer to assist the MNvest issuer in conducting the offering and
sale of the securities, including a portal operator, but excluding (i) persons acting primarily
as accountants or attorneys, and (ii) employees whose primary job responsibilities involve
operating the business of the MNvest issuer rather than assisting the MNvest issuer in
raising capital;

(9) a description of any pending material litigation, legal proceedings, or regulatory
action involving the MNvest issuer or any executive officers, directors, governors,
managers, members, and other persons occupying a similar status or performing similar
functions in the name of and on behalf of the MNvest issuer;

(10) a statement of the material risks unique to the MNvest issuer and its business
plans;

(11) a statement that the securities have not been registered under federal or state
securities law and that the securities are subject to limitations on resale; and

(12) the following legend must be displayed conspicuously in the disclosure
document:

"IN MAKING AN INVESTMENT DECISION, PURCHASERS MUST RELY
ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF
THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE
SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR
STATE SECURITIES COMMISSION OR DIVISION OR OTHER REGULATORY
AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE
NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY
OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY SUBSECTION
(e) OF SEC RULE 147 (CODE OF FEDERAL REGULATIONS, TITLE 17, PART
230.147 (e)) AS PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT
TO REGISTRATION OR EXEMPTION THEREFROM. PURCHASERS SHOULD
BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL
RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME."

Subd. 5.

Required certification from MNvest offering purchasers.

Before
selling securities to a prospective purchaser through a MNvest portal, the MNvest issuer
shall require the portal operator to obtain from the prospective purchaser through the
applicable MNvest portal a written or electronic certification that includes, at a minimum,
the following statements:

"I UNDERSTAND AND ACKNOWLEDGE THAT:

If I make an investment in an offering through this MNvest portal, it is very likely
that I am investing in a high-risk, speculative business venture that could result in the
complete loss of my investment, and I need to be able to afford such a loss.

This offering has not been reviewed or approved by any state or federal securities
commission or division or other regulatory authority and that no such person or authority
has confirmed the accuracy or determined the adequacy of any disclosure made to me
relating to this offering.

If I make an investment in an offering through this MNvest portal, it is very likely
that the investment will be difficult to transfer or sell and, accordingly, I may be required
to hold the investment indefinitely.

By entering into this transaction with the company, I am affirmatively representing
myself as being a Minnesota resident at the time that this contract is formed, and if this
representation is subsequently shown to be false, the contract is void."

Subd. 6.

MNvest portal.

A MNvest portal must satisfy the requirements of clauses
(1) through (4):

(1) the Web site does not contain the word "MNvest" in its URL address;

(2) the Web site implements steps to limit Web site access to the offer or sale of
securities to only Minnesota residents when conducting MNvest offerings; and

(3) MNvest offerings may not be viewed on the MNvest portal by a prospective
purchaser until:

(i) the portal operator verifies, through its exercise of reasonable steps, such as using
a third-party verification service or as otherwise approved by the administrator, that the
prospective purchaser is a Minnesota resident; and

(ii) the prospective purchaser makes an affirmative acknowledgment, electronically
through the MNvest portal, that:

(A) I am a Minnesota resident;

(B) the securities and investment opportunities listed on this Web site involve
high-risk, speculative business ventures. If I choose to invest in any securities or
investment opportunity listed on this Web site, I may lose all of my investment, and
I can afford such a loss;

(C) the securities and investment opportunities listed on this Web site have not
been reviewed or approved by any state or federal securities commission or division or
other regulatory authority, and no such person or authority, including this Web site, has
confirmed the accuracy or determined the adequacy of any disclosure made to prospective
investors relating to any offering; and

(D) if I choose to invest in any securities or investment opportunity listed on this
Web site, I understand that the securities I will acquire may be difficult to transfer or sell,
that there is no ready market for the sale of such securities, that it may be difficult or
impossible for me to sell or otherwise dispose of this investment at any price, and that,
accordingly, I may be required to hold this investment indefinitely; and

(4) the Web site complies with all other rules adopted by the administrator.

Subd. 7.

Portal operator.

(a) An entity, other than a registered broker-dealer,
wishing to become a portal operator shall file with the administrator:

(1) form ....... [to be approved by the administrator], including all applicable
schedules and supplemental information;

(2) a copy of the articles of incorporation or other documents that indicate the
entity's form of organization; and

(3) a filing fee of $200.

(b) A portal operator's registration expires 12 months from the date the administrator
has approved the entity as a portal operator, and subsequent registration for the succeeding
12-month period shall be issued upon written application and upon payment of a renewal
fee of $200, without filing of further statements or furnishing any further information,
unless specifically requested by the administrator. This section is not applicable to a
registered broker-dealer functioning as a portal operator.

(c) A portal operator that is not a broker-dealer registered under this chapter shall not:

(1) offer investment advice or recommendations, provided that a portal operator
shall not be deemed to be offering investment advice or recommendations merely because
it (i) selects, or may perform due diligence with respect to, issuers or offerings to be listed,
or (ii) provides general investor educational materials;

(2) provide transaction-based compensation for securities sold under this chapter to
employees, agents, or other persons unless the employees, agents, or other persons are
registered with the administrator and permitted to receive such compensation;

(3) charge a fee to the issuer for an offering of securities on a MNvest portal unless
the fee is (i) a fixed amount for each offering, (ii) a variable amount based on the length of
time that the securities are offered on the MNvest portal, or (iii) a combination of such
fixed and variable amounts; or

(4) hold, manage, possess, or otherwise handle purchaser funds or securities. This
restriction does not apply if the issuer is the portal operator.

(d) A portal operator shall provide the administrator with read-only access to
administrative sections of the MNvest portal.

(e) A portal operator shall comply with the record-keeping requirements of this
paragraph, provided that the failure of a portal operator that is not an issuer to maintain
records in compliance with this paragraph shall not affect the MNvest issuer's exemption
from registration afforded by this section:

(1) a portal operator shall maintain and preserve, for a period of five years from either
the date of the closing or termination of the securities offering, the following records:

(i) the name of each issuer whose securities have been listed on its MNvest portal;

(ii) the full name, residential address, Social Security number, date of birth, and
copy of a state-issued identification for all owners with greater than ten percent voting
equity in an issuer;

(iii) copies of all offering materials that have been displayed on its MNvest portal;

(iv) the names and other personal information of each purchaser who has registered
at its MNvest portal;

(v) any agreements and contracts between the portal operator and the issuer; and

(vi) any information used to establish that a MNvest issuer, prospective MNvest
purchaser, or MNvest purchaser is a Minnesota resident;

(2) a portal operator shall, upon written request of the administrator, furnish to the
administrator any records required to be maintained and preserved under this subdivision;

(3) the records required to be kept and preserved under this subdivision must be
maintained in a manner, including by any electronic storage media, that will permit the
immediate location of any particular document so long as such records are available for
immediate and complete access by representatives of the administrator. Any electronic
storage system must preserve the records exclusively in a nonrewriteable, nonerasable
format; verify automatically the quality and accuracy of the storage media recording
process; serialize the original and, if applicable, duplicate units storage media, and
time-date for the required period of retention the information placed on such electronic
storage media; and be able to download indexes and records preserved on electronic
storage media to an acceptable medium. In the event that a records retention system
commingles records required to be kept under this subdivision with records not required to
be kept, representatives of the administrator may review all commingled records; and

(4) a portal operator shall maintain such other records as the administrator shall
determine by rule.

Subd. 8.

Portal operator; privacy of purchaser information.

(a) For purposes of
this subdivision, "personal information" means information provided to a portal operator
by a prospective purchaser or purchaser that identifies, or can be used to identify, the
prospective purchaser or purchaser.

(b) Except as provided in paragraph (c), a portal operator must not disclose personal
information without written or electronic consent from the prospective purchaser or
purchaser that authorizes the disclosure.

(c) Paragraph (b) does not apply to:

(1) records required to be provided to the administrator under subdivision 7,
paragraph (e);

(2) the disclosure of personal information to a MNvest issuer relating to its MNvest
offering; or

(3) the disclosure of personal information to the extent required or authorized under
other law.

Subd. 9.

Bad actor disqualification.

(a) An exemption under this section is not
available for a sale if securities in the MNvest issuer; any predecessor of the MNvest
issuer; any affiliated issuer; any director, executive officer, other officer participating in
the MNvest offering, general partner, or managing member of the MNvest issuer; any
beneficial owner of 20 percent or more of the MNvest issuer's outstanding voting equity
securities, calculated on the basis of voting power; any promoter connected with the
MNvest issuer in any capacity at the time of the sale; any investment manager of an
issuer that is a pooled investment fund; any general partner or managing member of any
investment manager; or any director, executive officer, or other officer participating in
the offering of any investment manager or general partner or managing member of the
investment manager:

(1) has been convicted, within ten years before the offering, or five years, in the case
of MNvest issuers, their predecessors, and affiliated issuers, of any felony or misdemeanor:

(i) in connection with the purchase or sale of any security;

(ii) involving the making of any false filing with the Securities and Exchange
Commission or a state administrator; or

(iii) arising out of the conduct of the business of an underwriter, broker, dealer,
municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;

(2) is subject to any order, judgment, or decree of any court of competent jurisdiction,
entered within five years before the sale, that, at the time of the sale, restrains or enjoins
the person from engaging or continuing to engage in any conduct or practice:

(i) in connection with the purchase or sale of any security;

(ii) involving the making of any false filing with the Securities and Exchange
Commission or a state administrator; or

(iii) arising out of the conduct of the business of an underwriter, broker, dealer,
municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;

(3) is subject to a final order of a state securities commission or an agency or officer
of a state performing like functions; a state authority that supervises or examines banks,
savings associations, or credit unions; a state insurance commission or an agency or
officer of a state performing like functions; an appropriate federal banking agency; the
United States Commodity Futures Trading Commission; or the National Credit Union
Administration that:

(i) at the time of the offering, bars the person from:

(A) association with an entity regulated by the commission, authority, agency, or
officer;

(B) engaging in the business of securities, insurance, or banking; or

(C) engaging in savings association or credit union activities; or

(ii) constitutes a final order based on a violation of any law or regulation that prohibits
fraudulent, manipulative, or deceptive conduct entered within ten years before the offering;

(4) is subject to an order of the Securities and Exchange Commission entered pursuant
to section 15(b) or 15B(c) of the Securities Exchange Act of 1934, United States Code, title
15, section 78o(b) or 78o-4(c) or section 203(e) or (f) of the Investment Advisers Act of
1940, United States Code, title 15, section 80b-3(e) or (f) that, at the time of the offering:

(i) suspends or revokes the person's registration as a broker, dealer, municipal
securities dealer, or investment adviser;

(ii) places limitations on the activities, functions, or operations of the person; or

(iii) bars the person from being associated with any entity or from participating in
the offering of any penny stock;

(5) is subject to any order of the Securities and Exchange Commission or a state
administrator entered within five years before the sale that, at the time of the sale, orders
the person to cease and desist from committing or causing a violation or future violation of:

(i) any scienter-based antifraud provision of the federal securities laws, including
without limitation section 17(a)(1) of the Securities Act of 1933, United States Code, title
15, section 77q(a)(1), section 10(b) of the Securities Exchange Act of 1934, United States
Code, title 15, section 78j(b) and Code of Federal Regulations, title 17, section 240.10b-5,
section 15(c)(1) of the Securities Exchange Act of 1934, United States Code, title 15,
section 78o(c)(1) and section 206(1) of the Investment Advisers Act of 1940, United
States Code, title 15, section 80b-6(1), or any other rule or regulation thereunder; or

(ii) section 5 of the Securities Act of 1933, United States Code, title 15, section 77e;

(6) is suspended or expelled from membership in, or suspended or barred from
association with a member of, a registered national securities exchange or a registered
national or affiliated securities association for any act or omission to act constituting
conduct inconsistent with just and equitable principles of trade;

(7) has filed as a registrant or issuer, or was or was named as an underwriter in, any
registrations statement or Regulation A offering statement filed with the Securities and
Exchange Commission or a state administrator that, within five years before the sale, was
the subject of a refusal order, stop order, or order suspending the Regulation A exemption,
or is, at the time of the sale, the subject of an investigation or proceeding to determine
whether a stop order or suspension order should be issued; or

(8) is subject to a United States Postal Service false representation order entered
within five years before the offering, or is, at the time of the offering, subject to a
temporary restraining order or preliminary injunction with respect to conduct alleged by
the United States Postal Service to constitute a scheme or device for obtaining money or
property through the mail by means of false representations.

(b) Paragraph (a) does not apply:

(1) with respect to any conviction, order, judgment, decree, suspension, expulsion,
or bar that occurred or was issued before September 23, 2013;

(2) upon a showing of good cause and without prejudice to any other action by
the Securities and Exchange Commission or a state administrator, if the Securities and
Exchange Commission or a state administrator determines that it is not necessary under
the circumstances that an exemption be denied;

(3) if, before the relevant offering, the court of regulatory authority that entered the
relevant order, judgment, or decree advises in writing, whether contained in the relevant
judgment, order, or decree or separately to the Securities and Exchange Commission or a
state administrator or their staff, that disqualification under paragraph (a) should not arise
as a consequence of the order, judgment, or decree; or

(4) if the MNvest issuer establishes that it did not know and, in the exercise of
reasonable care, could not have known that a disqualification existed under paragraph (a).

(c) For purposes of paragraph (a), events relating to any affiliated issuer that occurred
before the affiliation arose will not be considered disqualifying if the affiliated entity is not:

(1) in control of the issuer; or

(2) under common control with the issuer by a third party that was in control of the
affiliated entity at the time of the events.

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies with respect to acts committed on or after that date.

Sec. 13.

Minnesota Statutes 2014, section 80A.84, is amended to read:

80A.84 SECTION 607; PUBLIC RECORDS; CONFIDENTIALITY.

(a) Presumption of public records. Except as otherwise provided in subsection
(b), records obtained by the administrator or filed under this chapter, including a record
contained in or filed with a registration statement, application, notice filing, or report, are
public records and are available for public examination.

(b) Nonpublic records. The following records are not public records and are not
available for public examination under subsection (a):

(1) a record obtained by the administrator in connection with an audit or inspection
under section 80A.66(d) or an investigation under section 80A.79;

(2) a part of a record filed in connection with a registration statement under sections
80A.49 and 80A.51 through 80A.53 or a record under section 80A.66(d) that contains
trade secrets or confidential information if the person filing the registration statement or
report has asserted a claim of confidentiality or privilege that is authorized by law;

(3) a record that is not required to be provided to the administrator or filed under this
chapter and is provided to the administrator only on the condition that the record will not
be subject to public examination or disclosure;

(4) a nonpublic record received from a person specified in section 80A.85(a);

(5) any social security number, residential address unless used as a business address,
and residential telephone number contained in a record that is filed; and

(6) a record obtained by the administrator through a designee of the administrator
that a rule or order under this chapter determines has been:

(A) expunged from the administrator's records by the designee; or

(B) determined to be nonpublic or nondisclosable by that designee if the administrator
finds the determination to be in the public interest and for the protection of investors; and

(7) a record furnished to the administrator by a portal operator under section
80A.461, subdivision 7, paragraph (e).

(c) Administrator discretion to disclose. If disclosure is for the purpose of a civil,
administrative, or criminal investigation, action, or proceeding or to a person specified
in section 80A.85(a), the administrator may disclose a record obtained in connection
with an audit or inspection under section 80A.66(d) or a record obtained in connection
with an investigation under section 80A.79.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 14.

Minnesota Statutes 2014, section 168.013, subdivision 1d, is amended to read:

Subd. 1d.

Trailer.

(a) On trailers registered at a gross vehicle weight of greater than
3,000 7,200 pounds, the annual tax is based on total gross weight and is 30 percent of the
Minnesota base rate prescribed in subdivision 1e, when the gross weight is 15,000 pounds
or less, and when the gross weight of a trailer is more than 15,000 pounds, the tax for the
first eight years of vehicle life is 100 percent of the tax imposed in the Minnesota base rate
schedule, and during the ninth and succeeding years of vehicle life the tax is 75 percent
of the Minnesota base rate prescribed by subdivision 1e.

(b) Farm trailers with a gross weight in excess of 10,000 pounds and as described in
section 168.002, subdivision 8, are taxed as farm trucks as prescribed in subdivision 1c.

(c) Effective on and after July 1, 2001, Trailers registered at a gross vehicle weight
of 3,000 7,200 pounds or less must display a distinctive plate. The registration on the
license plate is valid for the life of the trailer only if it remains registered at the same gross
vehicle weight. The onetime registration tax for trailers registered for the first time in
Minnesota is $55. For trailers registered in Minnesota before July 1, 2001, and for which:

(1) registration is desired for the remaining life of the trailer, the registration tax
is $25; or

(2) permanent registration is not desired, the biennial registration tax is $10 for the
first renewal if registration is renewed between and including July 1, 2001, and June 30,
2003. These trailers must be issued permanent registration at the first renewal on or after
July 1, 2003, and the registration tax is $20.

For trailers registered at a gross weight of 3,000 pounds or less before July 1, 2001,
but not renewed until on or after July 1, 2003, the registration tax is $20 and permanent
registration must be issued.

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies to taxes payable for registrations and registration renewals due on or after
January 1, 2016. This section supersedes any amendment to Minnesota Statutes, section
168.013, subdivision 1d, made during the 2015 regular legislative session in S.F. No.
1647, regardless of order of enactment.

Sec. 15.

Minnesota Statutes 2014, section 216B.16, subdivision 6, is amended to read:

Subd. 6.

Factors considered, generally.

The commission, in the exercise of its
powers under this chapter to determine just and reasonable rates for public utilities, shall
give due consideration to the public need for adequate, efficient, and reasonable service
and to the need of the public utility for revenue sufficient to enable it to meet the cost of
furnishing the service, including adequate provision for depreciation of its utility property
used and useful in rendering service to the public, and to earn a fair and reasonable return
upon the investment in such property. In determining the rate base upon which the utility
is to be allowed to earn a fair rate of return, the commission shall give due consideration to
evidence of the cost of the property when first devoted to public use, to prudent acquisition
cost to the public utility less appropriate depreciation on each, to construction work in
progress, to offsets in the nature of capital provided by sources other than the investors,
and to other expenses of a capital nature. For purposes of determining rate base, the
commission shall consider the original cost of utility property included in the base and
shall make no allowance for its estimated current replacement value. If the commission
orders a generating facility to terminate its operations before the end of the facility's
physical life in order to comply with a specific state or federal energy statute or policy,
the commission may allow the public utility to recover any positive net book value of the
facility as determined by the commission.

Sec. 16.

Minnesota Statutes 2014, section 216B.16, subdivision 7b, is amended to read:

Subd. 7b.

Transmission cost adjustment.

(a) Notwithstanding any other provision
of this chapter, the commission may approve a tariff mechanism for the automatic annual
adjustment of charges for the Minnesota jurisdictional costs net of associated revenues of:

(i) new transmission facilities that have been separately filed and reviewed and
approved by the commission under section 216B.243 or new transmission or distribution
facilities that are certified as a priority project or deemed to be a priority transmission
project under section 216B.2425;

(ii) new transmission facilities approved by the regulatory commission of the state
in which the new transmission facilities are to be constructed, to the extent approval
is required by the laws of that state, and determined by the Midcontinent Independent
System Operator to benefit the utility or integrated transmission system; and

(iii) charges incurred by a utility under a federally approved tariff that accrue
from other transmission owners' regionally planned transmission projects that have been
determined by the Midcontinent Independent System Operator to benefit the utility or
integrated transmission system.

(b) Upon filing by a public utility or utilities providing transmission service, the
commission may approve, reject, or modify, after notice and comment, a tariff that:

(1) allows the utility to recover on a timely basis the costs net of revenues of
facilities approved under section 216B.243 or certified or deemed to be certified under
section 216B.2425 or exempt from the requirements of section 216B.243;

(2) allows the utility to recover charges incurred under a federally approved tariff that
accrue from other transmission owners' regionally planned transmission projects that have
been determined by the Midcontinent Independent System Operator to benefit the utility
or integrated transmission system. These charges must be reduced or offset by revenues
received by the utility and by amounts the utility charges to other regional transmission
owners, to the extent those revenues and charges have not been otherwise offset;

(3) allows the utility to recover on a timely basis the costs net of revenues of facilities
approved by the regulatory commission of the state in which the new transmission
facilities are to be constructed and determined by the Midcontinent Independent System
Operator to benefit the utility or integrated transmission system;

(4) allows the utility to recover costs associated with distribution planning required
under section 216B.2425;

(5) allows the utility to recover costs associated with investments in distribution
facilities to modernize the utility's grid that have been certified by the commission under
section 216B.2425;

(6) allows a return on investment at the level approved in the utility's last general
rate case, unless a different return is found to be consistent with the public interest;

(5) (7) provides a current return on construction work in progress, provided that
recovery from Minnesota retail customers for the allowance for funds used during
construction is not sought through any other mechanism;

(6) (8) allows for recovery of other expenses if shown to promote a least-cost project
option or is otherwise in the public interest;

(7) (9) allocates project costs appropriately between wholesale and retail customers;

(8) (10) provides a mechanism for recovery above cost, if necessary to improve the
overall economics of the project or projects or is otherwise in the public interest; and

(9) (11) terminates recovery once costs have been fully recovered or have otherwise
been reflected in the utility's general rates.

(c) A public utility may file annual rate adjustments to be applied to customer bills
paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:

(1) a description of and context for the facilities included for recovery;

(2) a schedule for implementation of applicable projects;

(3) the utility's costs for these projects;

(4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
the project; and

(5) calculations to establish that the rate adjustment is consistent with the terms
of the tariff established in paragraph (b).

(d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
paragraph (b), the commission shall approve the annual rate adjustments provided that,
after notice and comment, the costs included for recovery through the tariff were or are
expected to be prudently incurred and achieve transmission system improvements at the
lowest feasible and prudent cost to ratepayers.

Sec. 17.

Minnesota Statutes 2014, section 216B.16, subdivision 19, is amended to read:

Subd. 19.

Multiyear rate plan.

(a) A public utility may propose, and the
commission may approve, approve as modified, or reject, a multiyear rate plan as provided
in this subdivision. The term "multiyear rate plan" refers to a plan establishing the rates the
utility may charge for each year of the specified period of years, which cannot exceed three
five years, to be covered by the plan. A utility proposing a multiyear rate plan shall provide
a general description of the utility's major planned investments over the plan period.
The commission may also require the utility to provide a set of reasonable performance
measures and incentives that are quantifiable, verifiable, and consistent with state energy
policies. The commission may allow the utility to adjust recovery of its cost of capital or
other costs in a reasonable manner within the plan period. The utility may propose:

(1) recovery of the utility's forecasted rate base, based on a formula, a budget forecast,
or a fixed escalation rate, individually or in combination. The forecasted rate base must
include the utility's planned capital investments and investment-related costs, including
income tax impacts, depreciation and property taxes, as well as forecasted capacity-related
costs from purchased power agreements that are not recovered through subdivision 7;

(2) recovery of operations and maintenance expenses, based on an electricity-related
price index or other formula;

(3) tariffs that expand the products and services available to customers, including,
but not limited to, an affordability rate for low-income residential customers; and

(4) adjustments to the rates approved under the multiyear plan for rate changes
that the commission determines to be just and reasonable, including, but not limited
to, changes in the utility's cost of operating its nuclear facilities, or other significant
investments not addressed in the plan.

(b) A utility that has filed a petition with the commission to approve a multiyear
rate plan may request to be allowed to implement interim rates for the first and second
years of the multiyear plan. If the commission approves the request, interim rates shall be
implemented in the same manner as allowed under subdivision 3.

(c) The commission may approve a multiyear rate plan only if it finds that the plan
establishes just and reasonable rates for the utility, applying the factors described in
subdivision 6. Consistent with subdivision 4, the burden of proof to demonstrate that the
multiyear rate plan is just and reasonable is on the public utility proposing the plan.

(b) (d) Rates charged under the multiyear rate plan must be based only upon the
utility's reasonable and prudent costs of service over the term of the plan, as determined
by the commission, provided that the costs are not being recovered elsewhere in rates.
Rate adjustments authorized under subdivisions 6b and 7 may continue outside of a plan
authorized under this subdivision.

(c) (e) The commission may, by order, establish terms, conditions, and procedures
for a multiyear rate plan necessary to implement this section and ensure that rates remain
just and reasonable during the course of the plan, including terms and procedures for rate
adjustment. At any time prior to conclusion of a multiyear rate plan, the commission,
upon its own motion or upon petition of any party, has the discretion to examine the
reasonableness of the utility's rates under the plan, and adjust rates as necessary.

(d) (f) In reviewing a multiyear rate plan proposed in a general rate case under
this section, the commission may extend the time requirements for issuance of a final
determination prescribed in this section by an additional 90 days beyond its existing
authority under subdivision 2, paragraph (f).

(e) (g) A utility may not file a multiyear rate plan that would establish rates under the
terms of the plan until after May 31, 2012.

(h) The commission may initiate a proceeding to determine a set of performance
measures that can be used to assess a utility operating under a multiyear rate plan.

Sec. 18.

[216B.1638] RECOVERY OF NATURAL GAS EXTENSION PROJECT
COSTS.

Subdivision 1.

Definitions.

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

(b) "Contribution in aid of construction" means a monetary contribution, paid by
a developer or local unit of government to a utility providing natural gas service to a
community receiving that service as the result of a natural gas extension project, that
reduces or offsets the difference between the total revenue requirement of the project and
the revenue generated from the customers served by the project.

(c) "Developer" means a developer of the project or a person that owns or will own
the property served by the project.

(d) "Local unit of government" means a city, county, township, commission, district,
authority, or other political subdivision or instrumentality of this state.

(e) "Natural gas extension project" or "project" means the construction of new
infrastructure or upgrades to existing natural gas facilities necessary to serve currently
unserved or inadequately served areas.

(f) "Revenue deficiency" means the deficiency in funds that results when projected
revenues from customers receiving natural gas service as the result of a natural gas
extension project, plus any contributions in aid of construction paid by these customers,
fall short of the total revenue requirement of the natural gas extension project.

(g) "Total revenue requirement" means the total cost of extending and maintaining
natural gas service to a currently unserved or inadequately served area.

(h) "Transport customer" means a customer for whom a natural gas utility transports
gas the customer has purchased from another natural gas supplier.

(i) "Unserved or inadequately served area" means an area in this state lacking
adequate natural gas pipeline infrastructure to meet the demand of existing or potential
end-use customers.

Subd. 2.

Filing.

(a) A public utility may petition the commission outside of a
general rate case for a rider that shall include all of the utility's customers, including
transport customers, to recover the revenue deficiency from a natural gas extension project.

(b) The petition shall include:

(1) a description of the natural gas extension project, including the number and
location of new customers to be served and the distance over which natural gas will be
distributed to serve the unserved or inadequately served area;

(2) the project's construction schedule;

(3) the proposed project budget;

(4) the amount of any contributions in aid of construction;

(5) a description of efforts made by the public utility to offset the revenue deficiency
through contributions in aid to construction;

(6) the amount of the revenue deficiency, and how recovery of the revenue deficiency
will be allocated among industrial, commercial, residential, and transport customers;

(7) the proposed method to be used to recover the revenue deficiency from each
customer class, such as a flat fee, a volumetric charge, or another form of recovery;

(8) the proposed termination date of the rider to recover the revenue deficiency; and

(9) a description of benefits to the public utility's existing natural gas customers that
will accrue from the natural gas extension project.

Subd. 3.

Review; approval.

(a) The commission shall allow opportunity for
comment on the petition.

(b) The commission shall approve a public utility's petition for a rider to recover the
costs of a natural gas extension project if it determines that:

(1) the project is designed to extend natural gas service to an unserved or
inadequately served area; and

(2) project costs are reasonable and prudently incurred.

(c) The commission must not approve a rider under this section that allows a utility
to recover more than 33 percent of the costs of a natural gas extension project.

(d) The revenue deficiency from a natural gas extension project recoverable through
a rider under this section must include the currently authorized rate of return, incremental
income taxes, incremental property taxes, incremental depreciation expenses, and any
incremental operation and maintenance costs.

Subd. 4.

Commission authority; order.

The commission may issue orders
necessary to implement and administer this section.

Subd. 5.

Implementation.

Nothing in this section commits a public utility to
implement a project approved by the commission. The public utility seeking to provide
natural gas service shall notify the commission whether it intends to proceed with the
project as approved by the commission.

Subd. 6.

Evaluation and report.

By January 15, 2017, and every three years
thereafter, the commission shall report to the chairs and ranking minority members of the
senate and house of representatives committees having jurisdiction over energy policy:

(1) the number of public utilities and projects proposed and approved under this
section;

(2) the total cost of each project;

(3) rate impacts of the cost recovery mechanism; and

(4) an assessment of the effectiveness of the cost recovery mechanism in realizing
increased natural gas service to unserved or inadequately served areas from natural gas
extension projects.

Sec. 19.

Minnesota Statutes 2014, section 216B.164, subdivision 3, is amended to read:

Subd. 3.

Purchases; small facilities.

(a) This paragraph applies to cooperative
electric associations and municipal utilities. For a qualifying facility having less than
40-kilowatt capacity, the customer shall be billed for the net energy supplied by the utility
according to the applicable rate schedule for sales to that class of customer. A cooperative
electric association or municipal utility may charge an additional fee to recover the
fixed costs not already paid for by the customer through the customer's existing billing
arrangement. Any additional charge by the utility must be reasonable and appropriate
for that class of customer based on the most recent cost of service study. The cost of
service study must be made available for review by a customer of the utility upon request.
In the case of net input into the utility system by a qualifying facility having less than
40-kilowatt capacity, compensation to the customer shall be at a per kilowatt-hour rate
determined under paragraph (c) or, (d), or (f).

(b) This paragraph applies to public utilities. For a qualifying facility having less
than 1,000-kilowatt capacity, the customer shall be billed for the net energy supplied by
the utility according to the applicable rate schedule for sales to that class of customer. In
the case of net input into the utility system by a qualifying facility having: (1) more than
40-kilowatt but less than 1,000-kilowatt capacity, compensation to the customer shall be
at a per kilowatt-hour rate determined under paragraph (c); or (2) less than 40-kilowatt
capacity, compensation to the customer shall be at a per-kilowatt rate determined under
paragraph (c) or (d).

(c) In setting rates, the commission shall consider the fixed distribution costs to the
utility not otherwise accounted for in the basic monthly charge and shall ensure that the
costs charged to the qualifying facility are not discriminatory in relation to the costs
charged to other customers of the utility. The commission shall set the rates for net
input into the utility system based on avoided costs as defined in the Code of Federal
Regulations, title 18, section 292.101, paragraph (b)(6), the factors listed in Code of
Federal Regulations, title 18, section 292.304, and all other relevant factors.

(d) Notwithstanding any provision in this chapter to the contrary, a qualifying
facility having less than 40-kilowatt capacity may elect that the compensation for net input
by the qualifying facility into the utility system shall be at the average retail utility energy
rate. "Average retail utility energy rate" is defined as the average of the retail energy rates,
exclusive of special rates based on income, age, or energy conservation, according to the
applicable rate schedule of the utility for sales to that class of customer.

(e) If the qualifying facility or net metered facility is interconnected with a
nongenerating utility which has a sole source contract with a municipal power agency or a
generation and transmission utility, the nongenerating utility may elect to treat its purchase
of any net input under this subdivision as being made on behalf of its supplier and shall
be reimbursed by its supplier for any additional costs incurred in making the purchase.
Qualifying facilities or net metered facilities having less than 1,000-kilowatt capacity if
interconnected to a public utility, or less than 40-kilowatt capacity if interconnected to a
cooperative electric association or municipal utility may, at the customer's option, elect to
be governed by the provisions of subdivision 4.

EFFECTIVE DATE.

This section is effective July 1, 2015, and applies to
customers installing net metered systems after that day.

Sec. 20.

Minnesota Statutes 2014, section 216B.2425, is amended to read:

216B.2425 STATE TRANSMISSION AND DISTRIBUTION PLAN.

Subdivision 1.

List.

The commission shall maintain a list of certified high-voltage
transmission line projects.

Subd. 2.

List development; transmission projects report.

(a) By November
1 of each odd-numbered year, a transmission projects report must be submitted to the
commission by each utility, organization, or company that:

(1) is a public utility, a municipal utility, a cooperative electric association, the
generation and transmission organization that serves each utility or association, or a
transmission company; and

(2) owns or operates electric transmission lines in Minnesota, except a company or
organization that owns a transmission line that serves a single customer or interconnects a
single generating facility.

(b) The report may be submitted jointly or individually to the commission.

(c) The report must:

(1) list specific present and reasonably foreseeable future inadequacies in the
transmission system in Minnesota;

(2) identify alternative means of addressing each inadequacy listed;

(3) identify general economic, environmental, and social issues associated with
each alternative; and

(4) provide a summary of public input related to the list of inadequacies and the role
of local government officials and other interested persons in assisting to develop the list
and analyze alternatives.

(d) To meet the requirements of this subdivision, reporting parties may rely on
available information and analysis developed by a regional transmission organization
or any subgroup of a regional transmission organization and may develop and include
additional information as necessary.

(e) In addition to providing the information required under this subdivision, a utility
operating under a multiyear rate plan approved by the commission under section 216B.16,
subdivision 19, shall identify in its report investments that it considers necessary to
modernize the transmission and distribution system by enhancing reliability, improving
security against cyber and physical threats, and by 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.

Subd. 3.

Commission approval.

By June 1 of each even-numbered year, the
commission shall adopt a state transmission project list and shall certify, certify as
modified, or deny certification of the transmission and distribution projects proposed
under subdivision 2. The commission may only certify a project that is a high-voltage
transmission line as defined in section 216B.2421, subdivision 2, that the commission
finds is:

(1) necessary to maintain or enhance the reliability of electric service to Minnesota
consumers;

(2) needed, applying the criteria in section 216B.243, subdivision 3; and

(3) in the public interest, taking into account electric energy system needs and
economic, environmental, and social interests affected by the project.

Subd. 4.

List; effect.

Certification of a project as a priority electric transmission
project satisfies section 216B.243. A certified project on which construction has not begun
more than six years after being placed on the list, must be reapproved by the commission.

Subd. 5.

Transmission inventory.

The Department of Commerce shall create,
maintain, and update annually an inventory of transmission lines in the state.

Subd. 6.

Exclusion.

This section does not apply to any transmission line proposal
that has been approved by, or was pending before, a local unit of government, the
Environmental Quality Board, or the Public Utilities Commission on August 1, 2001.

Subd. 7.

Transmission needed to support renewable resources.

(a) Each entity
subject to this section shall determine necessary transmission upgrades to support
development of renewable energy resources required to meet objectives under section
216B.1691 and shall include those upgrades in its report under subdivision 2.

(b) MS 2008 [Expired]

Subd. 8.

Distribution study for distributed generation.

Each entity subject to
this section that is operating under a multiyear rate plan approved under section 216B.16,
subdivision 19, shall conduct a distribution study to identify interconnection points on
its distribution system for small-scale distributed generation resources and shall identify
necessary distribution upgrades to support the continued development of distributed
generation resources, and shall include the study in its report required under subdivision 2.

Sec. 21. TASK FORCE ON NO-FAULT AUTO INSURANCE ISSUES.

Subdivision 1.

Establishment.

The task force on no-fault auto insurance is
established to review certain issues related to no-fault automobile insurance reform.

Subd. 2.

Membership; meetings; staff.

(a) The task force shall be composed of
the following 19 members, who must be appointed by July 1, 2015, and who serve at the
pleasure of their appointing authorities:

(1) the commissioner of commerce or a designee;

(2) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the minority leader;

(3) two members of the senate, one appointed by the Subcommittee on Committees
of the Committee on Rules and Administration and one appointed by the minority leader;

(4) a person appointed by the Minnesota Chiropractic Association;

(5) a person appointed by the Insurance Federation of Minnesota;

(6) a person appointed by the Insurance Federation of Minnesota who is not a
member of the Federation;

(7) a person appointed by the Minnesota Association for Justice;

(8) a person appointed by the Minnesota Medical Association;

(9) a person appointed by the Minnesota Glass Association;

(10) a person appointed by the Minnesota Hospital Association;

(11) a person appointed by the Minnesota Ambulance Association;

(12) a person appointed by the Minnesota Physical Therapy Association;

(13) a person appointed by the Academy of Emergency Physicians-Minnesota
Chapter;

(14) a person appointed by the Medical Group Management Association of
Minnesota;

(15) a representative of a medical consulting company specializing in the delivery of
independent medical examinations, appointed by the commissioner;

(16) a person appointed by the Minnesota Defense Lawyers Association; and

(17) a person appointed by the Minnesota Ambulatory Surgery Center Association.

(b) Compensation and expense reimbursement must be as provided under Minnesota
Statutes, section 15.059, subdivision 3, to members of the task force.

(c) The commissioner of commerce shall convene the task force by August 1, 2015,
and shall appoint a chair from the membership of the task force. Staffing and technical
assistance must be provided by the Department of Commerce.

Subd. 3.

Duties.

The task force shall review and evaluate the following issues
related to no-fault automobile insurance reform:

(1) no-fault arbitration process;

(2) independent medical exam process;

(3) treatment standards and fee schedules; and

(4) no-fault health provider oversight.

Subd. 4.

Report.

By February 1, 2016, the task force must submit to the
chairs and ranking minority members of the house of representatives and senate
committees and divisions with primary jurisdiction over commerce and transportation its
written recommendations, including any draft legislation necessary to implement the
recommendations.

Subd. 5.

Expiration.

The task force expires the day after submitting the report
under subdivision 4, or February 2, 2016, whichever is earlier.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 22. COMPETITIVE RATE FOR ENERGY-INTENSIVE,
TRADE-EXPOSED ELECTRIC UTILITY CUSTOMER.

Subdivision 1.

Definitions.

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

(b) "Clean energy technology" is energy technology that generates electricity from a
carbon neutral generating resource including, but not limited to, solar, wind, hydroelectric,
and biomass.

(c) "Energy-intensive trade-exposed customer" is defined to include:

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

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

(3) a steel mill and related facilities;

(4) a retail customer of an investor-owned electric utility that has facilities under a
single electric service agreement that (i) collectively imposes a peak electrical demand of
at least 10,000 kilowatts on the electric utility's system, and (ii) has a combined annual
average load factor in excess of 80 percent; and

(5) any other retail customer of an investor-owned electric utility that is subject to
globally competitive pressures and whose electric energy costs are at least ten percent of
the customer's overall cost of production.

(d) "EITE rate schedule" means a rate schedule under which an investor-owned
electric utility may set terms of service to an individual or group of energy-intensive
trade-exposed customers.

(e) "EITE rate" means the rate or rates offered by the investor-owned electric utility
under an EITE rate schedule.

Subd. 2.

Rates and terms of EITE rate schedule.

(a) It is the energy policy of the
state of Minnesota to ensure competitive electric rates for energy-intensive trade-exposed
customers. To achieve this objective, an investor-owned electric utility that has at least
50,000 retail electric customers, but no more than 200,000 retail electric customers, shall
have the ability to propose various EITE rate options within their service territory under
an EITE rate schedule that include, but are not limited to, fixed-rates, market-based rates,
and rates to encourage utilization of new clean energy technology.

(b) Notwithstanding Minnesota Statutes, section 216B.03, 216B.05, 216B.06,
216B.07, or 216B.16, the commission shall, upon a finding of net benefit to the utility or
the state, approve an EITE rate schedule and any corresponding EITE rate.

(c) The commission shall make a final determination in a proceeding begun under
this section within 90 days of a miscellaneous rate filing by the electric utility.

(d) Upon approval of any EITE rate schedule, the utility shall create a separate
account to track the difference in revenue between what would have been collected under
the electric utility's applicable standard tariff and the EITE rate schedule. In its next
general rate case or through an EITE cost recovery rate rider between general rate cases,
the commission shall allow the utility to recover any costs, including reduced revenues, or
refund any savings, including increased revenues, associated with providing service to a
customer under an EITE rate schedule. The utility shall not recover any costs or refund
any savings under this section from any energy-intensive trade-exposed customer or any
low-income residential ratepayers as defined in Minnesota Statutes, section 216B.16,
subdivision 15.

Subd. 3.

Low-income funding.

Upon the filing of a utility for approval of an EITE
rate schedule under this section, the filing utility must deposit $10,000 into an account
devoted to funding a program approved by the commission under Minnesota Statutes,
section 216B.16, subdivision 15. The funds shall be used to expand the outreach of the
commission-approved affordability program.

ARTICLE 4

HOUSING

Section 1.

Minnesota Statutes 2014, section 327.20, subdivision 1, is amended to read:

Subdivision 1.

Rules.

No domestic animals or house pets of occupants of
manufactured home parks or recreational camping areas shall be allowed to run at large,
or commit any nuisances within the limits of a manufactured home park or recreational
camping area. Each manufactured home park or recreational camping area licensed under
the provisions of sections 327.10, 327.11, and 327.14 to 327.28 shall, among other things,
provide for the following:

(1) A responsible attendant or caretaker shall be in charge of every manufactured
home park or recreational camping area at all times, who shall maintain the park or
area, and its facilities and equipment in a clean, orderly and sanitary condition. In any
manufactured home park containing more than 50 lots, the attendant, caretaker, or other
responsible park employee, shall be readily available at all times in case of emergency.

(2) All manufactured home parks shall be well drained and be located so that the
drainage of the park area will not endanger any water supply. No wastewater from
manufactured homes or recreational camping vehicles shall be deposited on the surface of
the ground. All sewage and other water carried wastes shall be discharged into a municipal
sewage system whenever available. When a municipal sewage system is not available, a
sewage disposal system acceptable to the state commissioner of health shall be provided.

(3) No manufactured home shall be located closer than three feet to the side lot lines
of a manufactured home park, if the abutting property is improved property, or closer than
ten feet to a public street or alley. Each individual site shall abut or face on a driveway
or clear unoccupied space of not less than 16 feet in width, which space shall have
unobstructed access to a public highway or alley. There shall be an open a space of at least
ten feet between the sides of adjacent manufactured homes including their attachments
and at least three feet between manufactured homes when parked end to end. The space
between manufactured homes may be used for the parking of motor vehicles and other
property, if the vehicle or other property is parked at least ten feet from the nearest
adjacent manufactured home position. The requirements of this paragraph shall not apply
to recreational camping areas and variances may be granted by the state commissioner
of health in manufactured home parks when the variance is applied for in writing and in
the opinion of the commissioner the variance will not endanger the health, safety, and
welfare of manufactured home park occupants.

(4) An adequate supply of water of safe, sanitary quality shall be furnished at each
manufactured home park or recreational camping area. The source of the water supply
shall first be approved by the state Department of Health.

(5) All plumbing shall be installed in accordance with the rules of the state
commissioner of labor and industry and the provisions of the Minnesota Plumbing Code.

(6) In the case of a manufactured home park with less than ten manufactured homes,
a plan for the sheltering or the safe evacuation to a safe place of shelter of the residents of
the park in times of severe weather conditions, such as tornadoes, high winds, and floods.
The shelter or evacuation plan shall be developed with the assistance and approval of
the municipality where the park is located and shall be posted at conspicuous locations
throughout the park. The park owner shall provide each resident with a copy of the
approved shelter or evacuation plan, as provided by section 327C.01, subdivision 1c.
Nothing in this paragraph requires the Department of Health to review or approve any
shelter or evacuation plan developed by a park. Failure of a municipality to approve a plan
submitted by a park shall not be grounds for action against the park by the Department of
Health if the park has made a good faith effort to develop the plan and obtain municipal
approval.

(7) A manufactured home park with ten or more manufactured homes, licensed prior
to March 1, 1988, shall provide a safe place of shelter for park residents or a plan for the
evacuation of park residents to a safe place of shelter within a reasonable distance of the
park for use by park residents in times of severe weather, including tornadoes and high
winds. The shelter or evacuation plan must be approved by the municipality by March 1,
1989. The municipality may require the park owner to construct a shelter if it determines
that a safe place of shelter is not available within a reasonable distance from the park. A
copy of the municipal approval and the plan shall be submitted by the park owner to the
Department of Health. The park owner shall provide each resident with a copy of the
approved shelter or evacuation plan, as provided by section 327C.01, subdivision 1c.

(8) A manufactured home park with ten or more manufactured homes, receiving
an initial license after March 1, 1988, must provide the type of shelter required by
section 327.205, except that for manufactured home parks established as temporary,
emergency housing in a disaster area declared by the President of the United States or
the governor, an approved evacuation plan may be provided in lieu of a shelter for a
period not exceeding 18 months.

(9) For the purposes of this subdivision, "park owner" and "resident" have the
meanings given them in section 327C.01.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Laws 1994, chapter 493, section 1, is amended to read:

Section 1. OLMSTED COUNTY HOUSING AND REDEVELOPMENT
AUTHORITY; MEMBERS.

Subdivision 1.

City and county appointees as housing and redevelopment
authority.

Notwithstanding Minnesota Statutes, section 469.006, the Olmsted County
Housing and Redevelopment Authority has seven members, four appointed by the city
council of the city of Rochester and three appointed by the county board of Olmsted
county. Of the first four appointees of the city council under this act, one must be
appointed for a one-year term, two for two-year terms, and one for a three-year term. Of
the first three appointees of the county board under this act, one must be appointed for a
one-year term, one for a two-year term, and one for a three-year term. Later appointments
to fill terms are for five years. An appointment to a vacancy is for the unexpired term.

Subd. 2.

County board may serve as housing and redevelopment authority.

Notwithstanding subdivision 1, the county board may, by resolution, provide that the
Olmsted County Board will constitute the county housing and redevelopment authority
and that the appointment procedures in subdivision 1 shall not apply. If the Olmsted
County Board acts under this subdivision, it must also provide in the resolution for any
additional members needed to comply with Code of Federal Regulations, title 24, part 964.

EFFECTIVE DATE; TRANSITION.

This section is effective the day after the
latter of the city council of the city of Rochester and the Olmsted County Board of
Commissioners and their respective chief clerical officers timely complete their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3. Terms of members of the
Olmsted County Housing and Redevelopment Authority serving on or after the effective
date of this section terminate as provided in the resolution adopted by the county board.

ARTICLE 5

LABOR AND INDUSTRY

Section 1.

Minnesota Statutes 2014, section 326B.092, subdivision 7, is amended to
read:

Subd. 7.

License fees and license renewal fees.

(a) The license fee for each
license is the base license fee plus any applicable board fee, continuing education fee, and
contractor recovery fund fee and additional assessment, as set forth in this subdivision.

(b) For purposes of this section, "license duration" means the number of years for
which the license is issued except that:

(1) if the initial license is not issued for a whole number of years, the license duration
shall be rounded up to the next whole number; and

(2) if the department receives an application for license renewal after the renewal
deadline, license duration means the number of years for which the renewed license would
have been issued if the renewal application had been submitted on time and all other
requirements for renewal had been met.

(c) The base license fee shall depend on whether the license is classified as an entry
level, master, journeyman, or business license, and on the license duration. The base
license fee shall be:

License Classification	License Duration
	1 Year	2 Years	3 Years
Entry level	$10	$20	$30
Journeyman Journeyworker	$20	$40	$60
Master	$40	$80	$120
Business	$90	$180	$270

(d) If there is a continuing education requirement for renewal of the license, then
a continuing education fee must be included in the renewal license fee. The continuing
education fee for all license classifications shall be: $10 if the renewal license duration
is one year; and $20 if the renewal license duration is two years; and $30 if the renewal
license duration is three years.

(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to
326B.93, then a board fee must be included in the license fee and the renewal license fee.
The board fee for all license classifications shall be: $4 if the license duration is one year;
$8 if the license duration is two years; and $12 if the license duration is three years.

(f) If the application is for the renewal of a license issued under sections 326B.802
to 326B.885, then the contractor recovery fund fee required under section 326B.89,
subdivision 3, and any additional assessment required under section 326B.89, subdivision
16, must be included in the license renewal fee.

(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period
July 1, 2015, through June 30, 2017, the following fees apply:

	License Classification	License Duration
		1 year	2 years
	Entry level	$10	$20
	Journeyworker	$15	$35
	Master	$30	$75
	Business		$160

If there is a continuing education requirement for renewal of the license, then a
continuing education fee must be included in the renewal license fee. The continuing
education fee for all license classifications shall be $5.

Sec. 2.

Minnesota Statutes 2014, section 326B.096, is amended to read:

326B.096 REINSTATEMENT OF LICENSES.

Subdivision 1.

Reinstatement after revocation.

(a) If a license is revoked under
this chapter and if an applicant for a license needs to pass an examination administered by
the commissioner before becoming licensed, then, in order to have the license reinstated,
the person who holds the revoked license must:

(1) retake the examination and achieve a passing score; and

(2) meet all other requirements for an initial license, including payment of the
application and examination fee and the license fee. The person holding the revoked
license is not eligible for Minnesota licensure without examination based on reciprocity.

(b) If a license is revoked under a chapter other than this chapter, then, in order to
have the license reinstated, the person who holds the revoked license must:

(1) apply for reinstatement to the commissioner no later than two years after the
effective date of the revocation;

(2) pay a $100 $50 reinstatement application fee and any applicable renewal license
fee; and

(3) meet all applicable requirements for licensure, except that, unless required by the
order revoking the license, the applicant does not need to retake any examination and does
not need to repay a license fee that was paid before the revocation.

Subd. 2.

Reinstatement after suspension.

If a license is suspended, then, in order
to have the license reinstated, the person who holds the suspended license must:

(1) apply for reinstatement to the commissioner no later than two years after the
completion of the suspension period;

(2) pay a $100 $50 reinstatement application fee and any applicable renewal license
fee; and

(3) meet all applicable requirements for licensure, except that, unless required by the
order suspending the license, the applicant does not need to retake any examination and
does not need to repay a license fee that was paid before the suspension.

Subd. 3.

Reinstatement after voluntary termination.

A licensee who is not an
individual may voluntarily terminate a license issued to the person under this chapter. If a
licensee has voluntarily terminated a license under this subdivision, then, in order to have
the license reinstated, the person who holds the terminated license must:

(1) apply for reinstatement to the commissioner no later than the date that the license
would have expired if it had not been terminated;

(2) pay a $100 $50 reinstatement application fee and any applicable renewal license
fee; and

(3) meet all applicable requirements for licensure, except that the applicant does not
need to repay a license fee that was paid before the termination.

EFFECTIVE DATE.

The amendments to this section are effective July 1, 2015,
and expire July 1, 2017.

Sec. 3.

Minnesota Statutes 2014, section 326B.106, subdivision 1, is amended to read:

Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and
sections 326B.101 to 326B.194, the commissioner shall by rule and in consultation
with the Construction Codes Advisory Council establish a code of standards for the
construction, reconstruction, alteration, and repair of buildings, governing matters of
structural materials, design and construction, fire protection, health, sanitation, and safety,
including design and construction standards regarding heat loss control, illumination,
and climate control. The code must also include duties and responsibilities for code
administration, including procedures for administrative action, penalties, and suspension
and revocation of certification. The code must conform insofar as practicable to model
building codes generally accepted and in use throughout the United States, including a
code for building conservation. In the preparation of the code, consideration must be
given to the existing statewide specialty codes presently in use in the state. Model codes
with necessary modifications and statewide specialty codes may be adopted by reference.
The code must be based on the application of scientific principles, approved tests, and
professional judgment. To the extent possible, the code must be adopted in terms of
desired results instead of the means of achieving those results, avoiding wherever possible
the incorporation of specifications of particular methods or materials. To that end the code
must encourage the use of new methods and new materials. Except as otherwise provided
in sections 326B.101 to 326B.194, the commissioner shall administer and enforce the
provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed
to similar buildings without significant modifications including provisions for use of
building systems as specified in the industrial/modular program specified in section
326B.194. Additional plan review fees associated with similar plans must be based on
costs commensurate with the direct and indirect costs of the service.

(c) Beginning with the 2018 edition of the model building codes and every six
years thereafter, the commissioner shall review the new model building codes and adopt
the model codes as amended for use in Minnesota, within two years of the published
edition date. The commissioner may adopt amendments to the building codes prior to the
adoption of the new building codes to advance construction methods, technology, or
materials, or, where necessary to protect the health, safety, and welfare of the public, or to
improve the efficiency or the use of a building.

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model
residential energy code and the new model commercial energy code in accordance with
federal law for which the United States Department of Energy has issued an affirmative
determination in compliance with United States Code, title 42, section 6833. The
commissioner may adopt amendments prior to adoption of the new energy codes, as
amended for use in Minnesota, to advance construction methods, technology, or materials,
or, where necessary to protect the health, safety, and welfare of the public, or to improve
the efficiency or use of a building.

EFFECTIVE DATE.

This section is effective August 1, 2015, and applies to all
model code adoptions beginning with the 2018 model building code.

Sec. 4.

Minnesota Statutes 2014, section 326B.13, subdivision 8, is amended to read:

Subd. 8.

Effective date of rules.

A rule to adopt or amend the State Building Code is
effective 180 270 days after publication of the rule's notice of adoption in the State Register.
The rule may provide for a later effective date. The rule may provide for an earlier effective
date if the commissioner or board proposing the rule finds that an earlier effective date is
necessary to protect public health and safety after considering, among other things, the need
for time for training of individuals to comply with and enforce the rule. The commissioner
must publish an electronic version of the entire adopted rule chapter on the department's
Web site within ten days of receipt from the revisor of statutes. The commissioner shall
clearly indicate the effective date of the rule on the department's Web site.

Sec. 5.

Minnesota Statutes 2014, section 326B.986, subdivision 5, is amended to read:

Subd. 5.

Boiler engineer license fees.

(a) For purposes of calculating license fees
and renewal license fees required under section 326B.092:

(1) the boiler special engineer license is an entry level license;

(2) the following licenses are journeyman licenses: first class engineer, Grade A;
first class engineer, Grade B; first class engineer, Grade C; second class engineer, Grade
A; second class engineer, Grade B; second class engineer, Grade C; and provisional
license; and

(3) the following licenses are master licenses: boiler chief engineer, Grade A; boiler
chief engineer, Grade B; boiler chief engineer, Grade C; boiler commissioner inspector
certificate of competency; and traction or hobby boiler engineer.

(b) Notwithstanding section 326B.092, subdivision 7, paragraph (a), the license
duration for steam traction and hobby engineer licenses are one year only for the purpose
of calculating license fees under section 326B.092, subdivision 7, paragraph (b).

Sec. 6.

Minnesota Statutes 2014, section 326B.986, subdivision 8, is amended to read:

Subd. 8.

Certificate of competency.

The fee for issuance of the original certificate
of competency is $85 for inspectors who did not pay the national board examination fee
specified in subdivision 6, or $35 for inspectors who paid that examination fee. (a) Each
applicant for a certificate of competency must complete an interview with the chief boiler
inspector before issuance of the certificate of competency.

(b) All initial certificates of competency shall be effective for more than one calendar
year and shall expire on December 31 of the year after the year in which the application
is made. The commissioner shall in a manner determined by the commissioner, without
the need for any rulemaking under chapter 14, phase in the renewal of certificates of
competency from one calendar year to two calendar years. By June 30, 2011,

(c) All renewed certificates of competency shall be valid for two calendar years. The
fee for renewal of the state of Minnesota certificate of competency is $35 for one year or
$70 for two years, and is due the day after the certificate expires.

EFFECTIVE DATE.

The amendments to paragraphs (a) and (c) are effective July
1, 2015, and expire July 1, 2017.

Sec. 7.

Minnesota Statutes 2014, section 341.321, is amended to read:

341.321 FEE SCHEDULE.

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

(1) referees, $80 for each initial license and each renewal;

(2) promoters, $700 for each initial license and each renewal;

(3) judges and knockdown judges, $80 for each initial license and each renewal;

(4) trainers and seconds, $80 for each initial license and each renewal;

(5) ring announcers, $80 for each initial license and each renewal;

(6) seconds, $80 for each initial license and each renewal;

(7) (6) timekeepers, $80 for each initial license and each renewal;

(8) (7) professional combatants, $100 for each initial license and each renewal $70;

(8) amateur combatants, $50;

(9) managers, $80 for each initial license and each renewal; and

(10) ringside physicians, $80 for each initial license and each renewal.

In addition to the license fee and the late filing penalty fee in section 341.32, subdivision
2, if applicable, an individual who applies for a professional license on the same day
within the 48 hours preceding when the combative sporting event is held shall pay a late
fee of $100 plus the original license fee of $120 at the time the application is submitted.

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

(1) referees, $80 for each initial license and each renewal;

(2) promoters, $700 for each initial license and each renewal;

(3) judges and knockdown judges, $80 for each initial license and each renewal;

(4) trainers, $80 for each initial license and each renewal;

(5) ring announcers, $80 for each initial license and each renewal;

(6) seconds, $80 for each initial license and each renewal;

(7) timekeepers, $80 for each initial license and each renewal;

(8) combatant, $60 for each initial license and each renewal;

(9) managers, $80 for each initial license and each renewal; and

(10) ringside physicians, $80 for each initial license and each renewal.

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

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

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

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

If four percent of the gross ticket sales is greater than $1,500, the balance is due to the
commissioner within 24 hours of the completed contest.

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

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

ARTICLE 6

UNEMPLOYMENT INSURANCE

Section 1.

Minnesota Statutes 2014, section 268.035, subdivision 6, is amended to read:

Subd. 6.

Benefit year.

"Benefit year" means the period of 52 calendar weeks
beginning the date a benefit account is effective. For a benefit account established
effective any January 1, April 1, July 1, or October 1, or January 2, 2000, or October 2,
2011, the benefit year will be a period of 53 calendar weeks.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 2.

Minnesota Statutes 2014, section 268.035, subdivision 21b, is amended to read:

Subd. 21b.

Preponderance of the evidence.

"Preponderance of the evidence"
means evidence in substantiation support of a fact that, when weighed against the evidence
opposing the fact, is more convincing and has a greater probability of truth than the
evidence opposing the fact.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 3.

Minnesota Statutes 2014, section 268.035, subdivision 26, is amended to read:

Subd. 26.

Unemployed.

An applicant is considered "unemployed" (1) in any week
that:

(1) the applicant performs less than 32 hours of service in employment, covered
employment, noncovered employment, self-employment, or volunteer work; and

(2) any earnings with respect to that week are less than the applicant's weekly
unemployment benefit amount.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 4.

Minnesota Statutes 2014, section 268.035, subdivision 30, is amended to read:

Subd. 30.

Wages paid.

(a) "Wages paid" means the amount of wages:

(1) that have been actually paid; or

(2) that have been credited to or set apart so that payment and disposition is under
the control of the employee.

(b) Wage payments delayed beyond the regularly scheduled pay date are considered
"wages paid" on the missed pay date. Back pay is considered "wages paid" on the date
of actual payment. Any wages earned but not paid with no scheduled date of payment is
considered "wages paid" on the last day of employment.

(b) (c) Wages paid does not include wages earned but not paid except as provided
for in this subdivision.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 5.

Minnesota Statutes 2014, section 268.051, subdivision 7, is amended to read:

Subd. 7.

Tax rate buydown.

(a) Any taxpaying employer that has been assigned
a tax rate based upon an experience rating, and has no amounts past due under this
chapter, may, upon the payment of an amount equivalent to any portion or all of the
unemployment benefits used in computing the experience rating plus a surcharge of 25
percent, obtain a cancellation of unemployment benefits used equal to the payment made,
less the surcharge. The payment is applied to the most recent unemployment benefits paid
that are used in computing the experience rating. Upon the payment, the commissioner
must compute a new experience rating for the employer, and compute a new tax rate.

(b) Payments for a tax rate buydown may be made only by electronic payment
and must be received within 120 calendar days from the beginning of the calendar year
for which the tax rate is effective.

(c) For calendar years 2011, 2012, and 2013, the surcharge of 25 percent provided
for in paragraph (a) does not apply.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 6.

Minnesota Statutes 2014, section 268.07, subdivision 2, is amended to read:

Subd. 2.

Benefit account requirements.

(a) Unless paragraph (b) applies, to
establish a benefit account an applicant must have total wage credits in the applicant's four
quarter base period of at least: (1) $2,400; or (2) 5.3 percent of the state's average annual
wage rounded down to the next lower $100, whichever is higher.

(b) To establish a new benefit account within 52 calendar weeks following the
expiration of the benefit year on a prior benefit account, an applicant must have performed
services actual work in subsequent covered employment and have been paid wages in one
or more completed calendar quarters that started after the effective date of the prior benefit
account. The wages paid for those services that employment must be at least enough to
meet the requirements of paragraph (a). A benefit account under this paragraph may not
be established effective earlier than the Sunday following the end of the most recent
completed calendar quarter in which the requirements of paragraph (a) were met. One
of the reasons for this paragraph is to prevent An applicant from establishing may not
establish a second benefit account as a result of one loss of employment.

EFFECTIVE DATE.

This section is effective August 2, 2015, except the amendment
striking "within 52 calendar weeks" is effective the day following final enactment.

Sec. 7.

Minnesota Statutes 2014, section 268.07, subdivision 3b, is amended to read:

Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for
unemployment benefits is effective the Sunday of the calendar week that the application
was filed. An application for unemployment benefits may be backdated one calendar week
before the Sunday of the week the application was actually filed if the applicant requests
the backdating at the time the application is filed. An application may be backdated only
if the applicant was unemployed during the period of the backdating. If an individual
attempted to file an application for unemployment benefits, but was prevented from filing
an application by the department, the application is effective the Sunday of the calendar
week the individual first attempted to file an application.

(b) A benefit account established under subdivision 2 is effective the date the
application for unemployment benefits was effective.

(c) A benefit account, once established, may later be withdrawn only if:

(1) the applicant has not been paid any unemployment benefits on that benefit
account; and

(2) a new application for unemployment benefits is filed and a new benefit account is
established at the time of the withdrawal.

A determination or amended determination of eligibility or ineligibility issued under
section 268.101, that was sent before the withdrawal of the benefit account, remains in
effect and is not voided by the withdrawal of the benefit account.

(d) An application for unemployment benefits is not allowed before the Sunday
following the expiration of the benefit year on a prior benefit account. Except as allowed
under paragraph (c), an applicant may establish only one benefit account each 52 calendar
weeks. This paragraph applies to benefit accounts established under any federal law or
the law of any other state.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 8.

Minnesota Statutes 2014, section 268.085, subdivision 1, is amended to read:

Subdivision 1.

Eligibility conditions.

An applicant may be eligible to receive
unemployment benefits for any week if:

(1) the applicant has filed a continued request for unemployment benefits for that
week under section 268.0865;

(2) the week for which unemployment benefits are requested is in the applicant's
benefit year;

(3) the applicant was unemployed as defined in section 268.035, subdivision 26;

(4) the applicant was available for suitable employment as defined in subdivision
15. The applicant's weekly unemployment benefit amount is reduced one-fifth for each
day the applicant is unavailable for suitable employment. This clause does not apply to
an applicant who is in reemployment assistance training, or each day the applicant is on
jury duty or serving as an election judge;

(5) the applicant was actively seeking suitable employment as defined in subdivision
16. This clause does not apply to an applicant who is in reemployment assistance training
or who was on jury duty throughout the week;

(6) the applicant has served a nonpayable period of one week that the applicant is
otherwise entitled to some amount of unemployment benefits. This clause does not apply
if the applicant would have been entitled to federal disaster unemployment assistance
because of a disaster in Minnesota, but for the applicant's establishment of a benefit
account under section 268.07; and

(7) the applicant has been participating in reemployment assistance services, such as
job development of, and adherence to, a work search and resume writing classes plan, if
the applicant has been determined in need of reemployment assistance services directed
to participate by the commissioner, unless. This clause does not apply if the applicant
has good cause for failing to participate.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 9.

Minnesota Statutes 2014, section 268.085, subdivision 2, is amended to read:

Subd. 2.

Not eligible.

An applicant is ineligible for unemployment benefits for
any week:

(1) that occurs before the effective date of a benefit account;

(2) that the applicant, at the beginning of the week, has an outstanding fraud
overpayment balance under section 268.18, subdivision 2, including any penalties and
interest;

(3) that occurs in a period when the applicant is a student in attendance at, or on
vacation from a secondary school including the period between academic years or terms;

(4) that the applicant is incarcerated or performing court-ordered community service.
The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day
the applicant is incarcerated or performing court-ordered community service;

(5) that the applicant fails or refuses to provide information on an issue of
ineligibility required under section 268.101;

(6) that the applicant is performing services 32 hours or more, in employment,
covered employment, noncovered employment, volunteer work, or self-employment
regardless of the amount of any earnings; or

(7) with respect to which the applicant is receiving, has received, or has filed an
application for unemployment benefits under any federal law or the law of any other
state. If the appropriate agency finally determines that the applicant is not entitled to the
unemployment benefits establish a benefit account under federal law or the law of any
other state, this clause does not apply.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 10.

Minnesota Statutes 2014, section 268.095, subdivision 10, is amended to read:

Subd. 10.

Ineligibility duration.

(a) Ineligibility from the payment of all
unemployment benefits under subdivisions 1 and 4 is for the duration of the applicant's
unemployment and until the end of the calendar week that the applicant had total wages
paid for actual work performed in subsequent covered employment sufficient to meet
one-half of the requirements of section 268.07, subdivision 2, paragraph (a).

(b) Ineligibility imposed under subdivisions 1 and 4 begins on the Sunday of the
week that the applicant became separated from employment.

(c) In addition to paragraph (a), if the applicant was discharged from employment
because of aggravated employment misconduct, wage credits from that employment are
canceled and cannot be used for purposes of a benefit account under section 268.07,
subdivision 2.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 11.

Minnesota Statutes 2014, section 268.105, subdivision 3, is amended to read:

Subd. 3.

Withdrawal of an appeal.

(a) Any An appeal that is pending before
an unemployment law judge may be withdrawn by the appealing person party, or an
authorized representative of that person party, upon by filing of a notice of withdrawal. A
notice of withdrawal may be filed by mail or by electronic transmission.

(b) The appeal must, by order, be dismissed if a notice of withdrawal is filed, unless
an unemployment law judge directs that further adjudication is proceedings are required
for a proper result. An order of dismissal issued as a result of a notice of withdrawal is
not subject to reconsideration or appeal.

(c) A notice of withdrawal may be filed by mail or by electronic transmission. A
party may file a new appeal after the order of dismissal, but the original 20-calendar-day
period for appeal begins from the date of issuance of the determination and that time
period is not suspended or restarted by the notice of withdrawal and order of dismissal.
The new appeal may only be filed by mail or facsimile transmission.

(d) For purposes of this subdivision, "appeals" includes a request for reconsideration
filed under subdivision 2.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 12.

Minnesota Statutes 2014, section 268.105, subdivision 7, is amended to read:

Subd. 7.

Judicial review.

(a) The Minnesota Court of Appeals must, by writ
of certiorari to the department, review the unemployment law judge's decision on
reconsideration, provided a petition for the writ is filed with the court and a copy is served
upon the unemployment law judge or the commissioner and any other party within 30
calendar days of the sending of the unemployment law judge's decision on reconsideration
under subdivision 2. Three days are added to the 30-calendar-day period if the decision on
reconsideration was mailed to the parties.

(b) Any employer petitioning for a writ of certiorari must pay to the court the
required filing fee in accordance with the Rules of Civil Appellate Procedure. If the
employer requests a written transcript of the testimony received at the hearing conducted
under subdivision 1, the employer must pay to the department the cost of preparing the
transcript. That money is credited to the administration account.

(c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a
result of an applicant's petition, the department must furnish to the applicant at no cost a
written transcript of any testimony received at the hearing conducted under subdivision 1,
and, if requested, a copy of all exhibits entered into evidence. No filing fee or cost bond is
required of an applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.

(d) The Minnesota Court of Appeals may affirm the decision of the unemployment
law judge or remand the case for further proceedings; or it may reverse or modify the
decision if the substantial rights of the petitioner may have been prejudiced because the
findings, inferences, conclusion, or decision are:

(1) in violation of constitutional provisions;

(2) in excess of the statutory authority or jurisdiction of the department;

(3) made upon unlawful procedure;

(4) affected by other error of law;

(5) unsupported by substantial evidence in view of the entire record as submitted; or

(6) arbitrary or capricious.

(e) The department is considered the primary responding party to any judicial action
involving an unemployment law judge's decision. The department may be represented by
an attorney licensed to practice law in Minnesota who is an employee of the department.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 13.

Minnesota Statutes 2014, section 268.136, subdivision 1, is amended to read:

Subdivision 1.

Shared work plan requirements.

An employer may submit a
proposed shared work plan for an employee group to the commissioner for approval in a
manner and format set by the commissioner. The proposed shared work plan must include:

(1) a certified statement that the normal weekly hours of work of all of the proposed
participating employees were full time or regular part time but are now reduced, or will be
reduced, with a corresponding reduction in pay, in order to prevent layoffs;

(2) the name and Social Security number of each participating employee;

(3) the number of layoffs that would have occurred absent the employer's ability to
participate in a shared work plan;

(4) a certified statement that each participating employee was first hired by the
employer at least one year before the proposed shared work plan is submitted and is not a
seasonal, temporary, or intermittent worker;

(5) the hours of work each participating employee will work each week for the
duration of the shared work plan, which must be at least 50 percent of the normal weekly
hours but no more than 90 80 percent of the normal weekly hours, except that the plan
may provide for a uniform vacation shutdown of up to two weeks;

(6) a certified statement that any health benefits and pension benefits provided by
the employer to participating employees will continue to be provided under the same
terms and conditions as though the participating employees' hours of work each week had
not been reduced;

(7) a certified statement that the terms and implementation of the shared work plan is
consistent with the employer's obligations under state and federal law;

(8) an acknowledgement that the employer understands that unemployment benefits
paid under a shared work plan will be used in computing the future tax rate of a taxpaying
employer or charged to the reimbursable account of a nonprofit or government employer;

(9) the proposed duration of the shared work plan, which must be at least two months
and not more than one year, although a plan may be extended for up to an additional
year upon approval of the commissioner;

(10) a starting date beginning on a Sunday at least 15 calendar days after the date the
proposed shared work plan is submitted; and

(11) a signature of an owner or officer of the employer who is listed as an owner or
officer on the employer's account under section 268.045.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 14.

Minnesota Statutes 2014, section 268.188, is amended to read:

268.188 SUBPOENAS; OATHS.

(a) The commissioner or an unemployment law judge has authority to administer
oaths and affirmations, take depositions, certify to official acts, and issue subpoenas to
compel the attendance of individuals and the production of documents and other personal
property necessary in connection with the administration of the Minnesota unemployment
insurance program.

(b) Individuals subpoenaed, other than applicants or officers and employees of an
employer that is the subject of the inquiry, are paid witness fees the same as witness fees
in civil actions in district court. The fees need not be paid in advance.

(c) The subpoena is enforceable through the district court in Ramsey County.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 15.

Minnesota Statutes 2014, section 268.194, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

There is established as a special state trust fund,
separate and apart from all other public money or funds of this state, an unemployment
insurance trust fund, that is administered by the commissioner exclusively for the payment
of unemployment benefits. This trust fund consists of:

(1) all taxes collected;

(2) interest earned upon any money in the trust fund;

(3) reimbursements paid by nonprofit organizations and the state and political
subdivisions;

(4) tax rate buydown payments under section 268.051, subdivision 7;

(5) any money received as a loan from the federal unemployment trust fund in
accordance with United States Code, title 42, section 1321, of the Social Security Act;

(6) any other money received under a reciprocal unemployment benefit arrangement
with the federal government or any other state;

(7) money recovered on overpaid unemployment benefits except, if allowed by
federal law, five percent of any recovered amount is credited to the administration account;

(8) all money credited to the account under this chapter;

(9) all money credited to the account of Minnesota in the federal unemployment
trust fund under United States Code, title 42, section 1103, of the Social Security Act,
also known as the Reed Act; and

(10) all money received for the trust fund from any other source.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 16. SPECIAL UNEMPLOYMENT BENEFIT ASSISTANCE.

Notwithstanding Minnesota Statutes, sections 268.085, subdivision 3, paragraph (a),
and 268.035, subdivision 29, paragraph (a), clause (13), applicants laid off due to lack of
work from a facility engaged directly in the extraction or processing of iron ore in Itasca
County, St. Louis County, or Lake County, between March 1, 2015, and December 31,
2015, will not be ineligible for unemployment benefits because of:

(1) the receipt of vacation pay from the employer engaged in the extraction or
processing of iron ore; or

(2) the receipt of supplemental unemployment benefits from the employer engaged
in the extraction or processing of iron ore.

EFFECTIVE DATE.

This section is effective the day following final enactment and
is effective retroactively from March 1, 2015. This section expires December 31, 2016.

Sec. 17. POULTRY WORKER EXTRA UNEMPLOYMENT BENEFITS.

Subdivision 1.

Extra benefits; availability.

Extra unemployment benefits are
available to an applicant if the applicant was laid off by:

(1) a commercial poultry producer as a result of the confirmed presence of highly
pathogenic avian influenza in the commercial poultry producer's flock; or

(2) a commercial poultry processor as a result of the confirmed presence of highly
pathogenic avian influenza in the flock of its poultry supplier.

Subd. 2.

Payment from fund.

Extra unemployment benefits are payable from
the unemployment insurance trust fund.

Subd. 3.

Eligibility conditions.

An applicant is eligible to receive extra
unemployment benefits under this section for any week through December 31, 2016,
following the effective date of the applicant's benefit account of regular unemployment
benefits, as a result of a layoff described under subdivision 1, if:

(1) a majority of the applicant's wage credits were with a commercial poultry
producer or processor described in subdivision 1;

(2) the applicant meets the eligibility requirements of Minnesota Statutes, section
268.085;

(3) the applicant is not subject to a disqualification under Minnesota Statutes, section
268.095; and

(4) the applicant is not entitled to regular unemployment benefits and the applicant
is not entitled to receive unemployment benefits under any other state or federal law
for that week.

Subd. 4.

Weekly amount of extra benefits.

The weekly extra unemployment
benefits amount available to an applicant is the same as the applicant's weekly regular
unemployment benefit amount on the benefit account established as a result of a layoff
under subdivision 1.

Subd. 5.

Maximum amount of extra unemployment benefits.

(a) The maximum
amount of extra unemployment benefits available is equal to 13 weeks at the applicant's
weekly extra unemployment benefits amount.

(b) If an applicant qualifies for a new regular benefit account under Minnesota
Statutes, section 268.07, at any time after exhausting regular unemployment benefits
as a result of the layoff under subdivision 1, the applicant must apply for and exhaust
entitlement to those new regular unemployment benefits.

Subd. 6.

Program expiration.

The extra unemployment benefit program under this
section expires on December 31, 2016. No extra unemployment benefits may be paid for
any week after the expiration of the program.

EFFECTIVE DATE.

This section is effective August 2, 2015.

Sec. 18. REPEALER.

Minnesota Statutes 2014, section 268.042, subdivision 4, is repealed.

EFFECTIVE DATE.

This section is effective August 2, 2015.