SF 942

as introduced - 90th Legislature (2017 - 2018) Posted on 02/15/2017 10:50am

A bill for an act
relating to jobs; appropriating money for the Departments of Employment and
Economic Development, Labor and Industry, and Commerce; the Bureau of
Mediation Services; Public Employment Relations Board; Housing Finance Agency;
Explore Minnesota Tourism; Workers' Compensation Court of Appeals; and Public
Utilities Commission; making policy and technical changes; modifying fees;
providing penalties; requiring reports; amending Minnesota Statutes 2016, sections
16C.144, by adding subdivisions; 45.0135, subdivision 7; 46.131, subdivision 7,
by adding a subdivision; 47.59, subdivision 2; 47.60, subdivisions 1, 2, 4, by adding
a subdivision; 47.601, subdivision 2, by adding a subdivision; 47.65, subdivision
2; 53.04, subdivision 3a; 53.09, subdivision 2; 53A.03; 53B.11, subdivision 1;
53C.02; 55.04, subdivision 2; 56.02; 58.10, subdivision 1; 58A.045, subdivision
2; 59A.03, subdivision 2; 80A.61; 80A.65, subdivision 2; 116J.8731, subdivisions
2, 5, by adding a subdivision; 116J.8748, subdivisions 1, 3, 4, 6; 116L.665;
116M.14, subdivision 4; 116M.17, subdivision 4; 116M.18, subdivisions 1a, 4,
4a, 8; 175.45; 177.27, subdivision 2, by adding a subdivision; 177.30; 177.32,
subdivision 1; 181.03, subdivision 1, by adding subdivisions; 181.032; 181.101;
216B.2401; 216B.241, subdivisions 1, 1c, 1d, 3, 5a; 239.101, subdivision 2;
326B.092, subdivision 7; 326B.153, subdivision 1; 326B.37, by adding
subdivisions; 326B.89, subdivisions 1, 5; 332.30; 332.54, subdivision 7; 332A.06;
332B.04, subdivision 6; Laws 2015, First Special Session chapter 1, article 1,
sections 4, as amended; 5, subdivision 2; Laws 2016, chapter 189, article 7, section
2, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter
326B; repealing Minnesota Statutes 2016, sections 46.131, subdivision 5; 326B.89,
subdivision 14; Laws 2009, chapter 37, article 3, section 4; Minnesota Rules, parts
4355.0100; 4355.0200; 4355.0300; 4355.0400; 4355.0500.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS. new text end

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

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2018 new text end		new text begin 2019 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 156,964,000 new text end

new text begin $ new text end

new text begin 157,456,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 130,482,000 new text end	new text begin 130,961,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 25,782,000 new text end	new text begin 25,795,000 new text end

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

new text begin Subd. 2. new text end new text begin Business and Community Development new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 47,961,000 new text end	new text begin 47,961,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 900,000 new text end	new text begin 900,000 new text end

new text begin (a) $15,000,000 each year is for the Minnesota
investment fund under Minnesota Statutes,
section 116J.8731. Of this amount, up to three
percent is for administration and monitoring
of the program. This appropriation is available
until spent. The base for this program is
$11,000,000 in fiscal year 2020 and
$11,000,000 in fiscal year 2021.
new text end

new text begin (b) $12,500,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, up to three
percent is for administration and monitoring
of the program. This appropriation is available
until spent. The base for this program is
$6,500,000 in fiscal year 2020 and $6,500,000
in fiscal year 2021.
new text end

new text begin (c) $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. This appropriation is available
until spent.
new text end

new text begin (d) $750,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Funds
available under this paragraph are for transfer
into the emerging entrepreneur program
special revenue fund account created under
Minnesota Statutes, chapter 116M, and are
available until spent. Of this amount, up to
five percent is for administration and
monitoring of the program.
new text end

new text begin (e) $900,000 each year from the workforce
development fund is for the job training
incentive program under Minnesota Statutes,
section 116L.42. Of this amount, up to five
percent is for administration and monitoring
of the program.
new text end

new text begin (f) $1,300,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until spent.
new text end

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

new text begin (h) $1,272,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
spent.
new text end

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

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

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

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

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

new text begin (n) $750,000 each year is for a grant to the
Neighborhood Development Center for small
business programs.
new text end

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

new text begin (p) $125,000 each year is for a grant to the
White Earth Nation for the White Earth Nation
Integrated Business Development System to
provide business assistance with workforce
development, outreach, technical assistance,
infrastructure and operational support,
financing, and other business development
activities.
new text end

new text begin (q) $875,000 each year is for a grant to
Enterprise Minnesota, Inc. for the small
business growth acceleration program under
Minnesota Statutes, section 116O.115.
new text end

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

new text begin (s) $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.
new text end

new text begin (t) $1,500,000 each year is from the general
fund for a grant to the Minnesota Film and TV
Board for the film production jobs program
under Minnesota Statutes, section 116U.26.
This appropriation is available until spent.
new text end

new text begin Subd. 3. new text end new text begin Broadband Development new text end

new text begin 30,250,000 new text end

new text begin 30,250,000 new text end

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

new text begin (b) $30,000,000 each year 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.
This appropriation is available until spent. Of
this appropriation, up to three percent is for
costs incurred by the commissioner to
administer Minnesota Statutes, section
116J.395. Administrative costs may include
the following activities related to measuring
progress toward the state's broadband goals
established in Minnesota Statutes, section
237.012:
new text end

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

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

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

new text begin 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.
new text end

new text begin Subd. 4. new text end new text begin Minnesota Trade Office new text end

new text begin 2,292,000 new text end

new text begin 2,292,000 new text end

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

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

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

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

new text begin Subd. 5. new text end new text begin Workforce Development new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 13,114,000 new text end	new text begin 13,114,000 new text end
new text begin Workforce Development new text end	new text begin 17,017,000 new text end	new text begin 17,017,000 new text end

new text begin (a) $2,039,000 each year from the general fund
and $4,604,000 each year from the workforce
development fund are for the pathways to
prosperity competitive grant program. Of this
amount, up to five percent is for administration
and monitoring of the program.
new text end

new text begin (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.
new text end

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

new text begin (d) $1,000,000 each year is from the general
fund and $3,348,000 each year is from the
workforce development fund for the youth at
work competitive grant program under
Minnesota Statutes, section 116L.562. Of this
amount, up to 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.
new text end

new text begin (e) $500,000 each year from the general fund
and $500,000 each year from the workforce
development fund is for rural career
counseling coordinators in the workforce
service areas and for the purposes specified
in Minnesota Statutes, section 116L.667. Of
these amounts, up to five percent is for
administration and monitoring of the program.
new text end

new text begin (f) $250,000 each year is for the higher
education career advising program. Of this
amount, up to five percent is for administration
and monitoring of the program.
new text end

new text begin (g) $1,000,000 each year is for a competitive
grant program for grants to organizations
providing services to relieve economic
disparities in the Southeast Asian community
through workforce recruitment, development,
job creation, assistance of smaller
organizations to increase capacity, and
outreach. Of this amount, up to five percent
is for administration and monitoring of the
program.
new text end

new text begin (h) $1,500,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals, such as job training, employment
preparation, internships, job assistance to
fathers, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants made
under this section must focus on low-income
communities, young adults from families with
a history of intergenerational poverty, and
communities of color. Of this amount, up to
five percent is for administration and
monitoring of the program.
new text end

new text begin (i) $1,000,000 each year is for the high-wage,
high-demand, nontraditional jobs grant
program under Minnesota Statutes, section
116L.99. Of this amount, up to five percent is
for administration and monitoring of the
program.
new text end

new text begin (j) $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.
new text end

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

new text begin (l) $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.
new text end

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

new text begin (n) $375,000 each year is for a grant to the
YWCA of Minneapolis to provide
economically challenged individuals the jobs
skills training, career counseling, and job
placement assistance necessary to secure a
child development associate credential and to
have a career path in early childhood
education.
new text end

new text begin (o) $1,000,000 each year is for a grant to
EMERGE Community Development, in
collaboration with community partners, for
services targeting Minnesota communities
with the highest concentrations of African and
African-American joblessness, based on the
most recent census tract data, to provide
employment readiness training, credentialed
training placement, job placement and
retention services, supportive services for
hard-to-employ individuals, and a general
education development fast track and adult
diploma program.
new text end

new text begin (p) $1,000,000 each year is for a grant to the
Minneapolis Foundation for a strategic
intervention program designed to target and
connect program participants to meaningful,
sustainable living-wage employment.
new text end

new text begin (q) $600,000 each year is for performance
grants under Minnesota Statutes, section
116J.8747, to Twin Cities R!SE to provide
training to hard-to-train individuals.
new text end

new text begin (r) $750,000 each year is for a grant to Latino
Communities United in Service (CLUES) to
expand culturally tailored programs that
address employment and education skill gaps
for working parents and underserved youth by
providing new job skills training to stimulate
higher wages for low-income people, family
support systems designed to reduce
intergenerational poverty, and youth
programming to promote educational
advancement and career pathways. At least
50 percent of this amount must be used for
programming targeted at greater Minnesota.
new text end

new text begin (s) $250,000 each year is for transfer to the
Department of Education for a grant to the
American Indian Opportunities and
Industrialization Center, in collaboration with
the Northwest Indian Community
Development Center, to reduce academic
disparities for American Indian students and
adults. The grant funds may be used to
provide:
new text end

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

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

new text begin (3) assistance in obtaining a GED;
new text end

new text begin (4) remedial training leading to enrollment in
a postsecondary higher education institution;
new text end

new text begin (5) real-time work experience in information
technology fields; and
new text end

new text begin (6) contextualized adult basic education.
new text end

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

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

new text begin (u) $500,000 each year from the workforce
development fund is 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.
new text end

new text begin (v) $1,100,000 each year from the workforce
development fund is 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 employees; or at small
or medium for-profit companies located
outside of the seven-county metropolitan area,
having fewer than 250 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
individuals with barriers to employment.
new text end

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

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

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

new text begin (3) increase the number of summer internship
opportunities;
new text end

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

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

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

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

new text begin (x) $215,000 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.
new text end

new text begin Subd. 6. new text end new text begin Vocational Rehabilitation new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 25,611,000 new text end	new text begin 25,611,000 new text end
new text begin Workforce Development new text end	new text begin 7,830,000 new text end	new text begin 7,830,000 new text end

new text begin (a) $14,300,000 each year is for the state's
vocational rehabilitation program under
Minnesota Statutes, chapter 268A. The base
for this program is $10,800,000 in fiscal year
2020 and $10,800,000 in fiscal year 2021.
new text end

new text begin (b) $2,761,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
268A.11.
new text end

new text begin (c) $6,830,000 each year from the workforce
development fund and $5,995,000 each year
from the general fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15.
new text end

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

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

new text begin Subd. 7. new text end new text begin Services for the Blind new text end

new text begin 6,425,000 new text end

new text begin 6,425,000 new text end

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

new text begin Subd. 8. new text end new text begin General Support Services new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,829,000 new text end	new text begin 5,308,000 new text end
new text begin Workforce Development new text end	new text begin 35,000 new text end	new text begin 48,000 new text end

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

new text begin (b) $150,000 each year is for the cost-of-living
study required under Minnesota Statutes,
section 116J.013.
new text end

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

new text begin (d) $1,000,000 each year is for the
capacity-building grant program to assist
nonprofit organizations offering or seeking to
offer workforce development and economic
development programming. Of this amount,
up to five percent is for administration and
monitoring of the program.
new text end

Sec. 3. new text begin HOUSING FINANCE AGENCY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 60,798,000 new text end

new text begin $ new text end

new text begin 50,798,000 new text end

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

new text begin 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.
new text end

new text begin Subd. 2. new text end new text begin Challenge Program new text end

new text begin 12,925,000 new text end

new text begin 12,925,000 new text end

new text begin This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
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.
new text end

new text begin Subd. 3. new text end new text begin Housing Trust Fund new text end

new text begin 17,646,000 new text end

new text begin 11,646,000 new text end

new text begin 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. Of
this amount, $6,000,000 in fiscal year 2018 is
a onetime appropriation for rental assistance
for homeless or highly mobile families with
children eligible for enrollment in a
prekindergarten through grade 12 academic
program.
new text end

new text begin Subd. 4. new text end new text begin Rental Assistance for Mentally Ill new text end

new text begin 4,088,000 new text end

new text begin 4,088,000 new text end

new text begin 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.
new text end

new text begin Subd. 5. new text end new text begin Family Homeless Prevention new text end

new text begin 10,519,000 new text end

new text begin 8,519,000 new text end

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

new text begin Of this amount, $2,000,000 in fiscal year 2018
is a onetime appropriation to provide
assistance to homeless or highly mobile
families with children eligible for enrollment
in a prekindergarten through grade 12
academic program. Grantees receiving funding
under this paragraph are not required to have
an advisory committee as described in section
462A.204, subdivision 6.
new text end

new text begin Subd. 6. new text end new text begin Home Ownership Assistance Fund new text end

new text begin 2,385,000 new text end

new text begin 885,000 new text end

new text begin 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.
new text end

new text begin Subd. 7. new text end new text begin Affordable Rental Investment Fund new text end

new text begin 4,218,000 new text end

new text begin 4,218,000 new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin Subd. 8. new text end new text begin Housing Rehabilitation new text end

new text begin 6,515,000 new text end

new text begin 6,515,000 new text end

new text begin 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.
new text end

new text begin Subd. 9. new text end new text begin Homeownership Education, Counseling, and Training new text end

new text begin 857,000 new text end

new text begin 857,000 new text end

new text begin This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
new text end

new text begin Subd. 10. new text end new text begin Capacity-Building Grants new text end

new text begin 1,145,000 new text end

new text begin 645,000 new text end

new text begin (a) This appropriation is for nonprofit
capacity-building grants under Minnesota
Statutes, section 462A.21, subdivision 3b. Of
this amount, $125,000 each year is for support
of the Homeless Management Information
System (HMIS).
new text end

new text begin (b) $500,000 in fiscal year 2018 is a onetime
appropriation for competitive grants to
nonprofit housing organizations, housing and
redevelopment authorities, or other political
subdivisions to provide intensive financial
education and coaching services to individuals
or families who have the goal of
homeownership. Financial education and
coaching services include but are not limited
to asset building, development of spending
plans, credit report education, repair and
rebuilding, consumer protection training, and
debt reduction. Priority must be given to
organizations that have experience serving
underserved populations.
new text end

new text begin Subd. 11. new text end new text begin Direct Appropriation new text end

new text begin 500,000 new text end

new text begin 500,000 new text end

new text begin This appropriation is for a grant to Build
Wealth Minnesota to provide a family
stabilization plan program including program
outreach, financial literacy education, and
budget and debt counseling.
new text end

Sec. 4. new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end

new text begin 17,910,000 new text end

new text begin $ new text end

new text begin 14,360,000 new text end

new text begin To develop maximum private sector
involvement in tourism, $500,000 in fiscal
year 2018 and $500,000 in fiscal year 2019
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 2018 shall be based on fiscal year
2017 private sector contributions. The
incentive in fiscal year 2019 shall be based on
fiscal year 2018 private sector contributions.
This incentive is ongoing.
new text end

new text begin 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.
new text end

new text begin $600,000 in fiscal year 2018 is for the major
events grant program. This appropriation is
available until June 30, 2021.
new text end

new text begin $100,000 each year is for a grant to the
Northern Lights International Music Festival.
new text end

Sec. 5. new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 30,125,000 new text end

new text begin $ new text end

new text begin 28,619,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 3,081,000 new text end	new text begin 1,866,000 new text end
new text begin Workers' Compensation new text end	new text begin 24,975,000 new text end	new text begin 24,975,000 new text end
new text begin Workforce Development new text end	new text begin 2,069,000 new text end	new text begin 1,778,000 new text end

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

new text begin Subd. 2. new text end new text begin Workers' Compensation new text end

new text begin 14,782,000 new text end

new text begin 14,782,000 new text end

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

new text begin (b)(1) $3,000,000 each year is for workers'
compensation system upgrades. This
appropriation is available until June 30, 2021.
The base appropriation for fiscal year 2020
and beyond is $0.
new text end

new text begin (2) This appropriation includes funds for
information technology project services and
support subject to the provisions of Minnesota
Statutes, section 16E.0466. Any ongoing
information technology costs must be
incorporated into the service level agreement
and must be paid to the Office of MN.IT
Services by the commissioner of labor and
industry under the rates and mechanism
specified in that agreement.
new text end

new text begin Subd. 3. new text end new text begin Labor Standards and Apprenticeship new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,081,000 new text end	new text begin 1,866,000 new text end
new text begin Workforce Development new text end	new text begin 1,569,000 new text end	new text begin 1,278,000 new text end

new text begin (a) $1,781,000 in fiscal year 2018 and
$1,796,000 in fiscal year 2019 are from the
general fund for the labor standards and
apprenticeship program.
new text end

new text begin (b) $1,300,000 in fiscal year 2018 and $70,000
in fiscal year 2019 are from the general fund
for the labor standards technology
modernization project. The base for this
project is $70,000, subject to Minnesota
Statutes, section 16E.0466. Ongoing
information technology costs must be
incorporated into the service level agreement
and must be paid to the Office of MN.IT
Services by the commissioner of labor and
industry under the rates and mechanism
specified in that agreement.
new text end

new text begin (c) $1,119,000 in fiscal year 2018 and
$1,128,000 in fiscal year 2019 are from the
workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178.
new text end

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

new text begin (e) $300,000 in fiscal year 2018 is from the
workforce development fund for labor
education and advancement program grants
under Minnesota Statutes, section 178.11, to
expand and promote registered apprenticeship
training for minorities and women. The base
for fiscal year 2020 is $300,000.
new text end

new text begin Subd. 4. new text end new text begin Workplace Safety new text end

new text begin 4,154,000 new text end

new text begin 4,154,000 new text end

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

new text begin Subd. 5. new text end new text begin General Support new text end

new text begin Appropriations by Fund new text end
new text begin Workers' Compensation new text end	new text begin 6,039,000 new text end	new text begin 6,039,000 new text end
new text begin Workforce Development new text end	new text begin 500,000 new text end	new text begin 500,000 new text end

new text begin $500,000 each year is from the workforce
development fund for the PIPELINE program.
new text end

Sec. 6. new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end

new text begin 2,577,000 new text end

new text begin $ new text end

new text begin 2,654,000 new text end

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

new text begin (b) $644,000 each year is for the Office of
Collaboration and Dispute Resolution under
Minnesota Statutes, section 179.90. Of this
amount, $410,000 each year is for grants under
Minnesota Statutes, section 179.91, and
$234,000 each year is for intergovernmental
and public policy collaboration and operation
of the office.
new text end

Sec. 7. new text begin PUBLIC EMPLOYMENT RELATIONS BOARD new text end

new text begin $ new text end

new text begin 525,000 new text end

new text begin $ new text end

new text begin 525,000 new text end

Sec. 8. new text begin WORKERS' COMPENSATION COURT OF APPEALS new text end

new text begin $ new text end

new text begin 2,034,000 new text end

new text begin $ new text end

new text begin 2,033,000 new text end

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

Sec. 9. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 27,544,000 new text end

new text begin $ new text end

new text begin 28,260,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 24,489,000 new text end	new text begin 25,196,000 new text end
new text begin Special Revenue new text end	new text begin 1,240,000 new text end	new text begin 1,240,000 new text end
new text begin Petroleum Tank new text end	new text begin 1,064,000 new text end	new text begin 1,073,000 new text end
new text begin Workers' Compensation new text end	new text begin 751,000 new text end	new text begin 751,000 new text end

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

new text begin Subd. 2. new text end new text begin Financial Institutions new text end

new text begin -0- new text end

new text begin -0- new text end

new text begin Subd. 3. new text end new text begin Petroleum Tank Release Compensation Board new text end

new text begin 1,064,000 new text end

new text begin 1,073,000 new text end

new text begin This appropriation is from the petroleum tank
fund.
new text end

new text begin Subd. 4. new text end new text begin Administrative Services new text end

new text begin 8,741,000 new text end

new text begin 9,448,000 new text end

new text begin $100,000 each year is for the support of
broadband development.
new text end

new text begin Subd. 5. new text end new text begin Telecommunications new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,009,000 new text end	new text begin 1,009,000 new text end
new text begin Special Revenue new text end	new text begin 1,240,000 new text end	new text begin 1,240,000 new text end

new text begin $1,240,000 each year is from the
telecommunication access fund for the
following transfers.
new text end

new text begin (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;
new text end

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

new text begin (3) $100,000 each year is to the Legislative
Coordinating Commission for captioning of
legislative coverage; and
new text end

new text begin (4) $50,000 each year is to the Office of
MN.IT Services for a consolidated access fund
to provide grants to other state agencies related
to accessibility of their Web-based services.
new text end

new text begin Subd. 6. new text end new text begin Enforcement new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 5,386,000 new text end	new text begin 5,386,000 new text end
new text begin Workers' Compensation new text end	new text begin 198,000 new text end	new text begin 198,000 new text end

new text begin Subd. 7. new text end new text begin Energy Resources new text end

new text begin 4,937,000 new text end

new text begin 4,937,000 new text end

new text begin $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 under Minnesota
Statutes, section 216C.264.
new text end

new text begin $260,000 each year is to remediate vermiculate
insulation from households that are eligible
for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.
new text end

new text begin Subd. 8. new text end new text begin Insurance new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,416,000 new text end	new text begin 4,416,000 new text end
new text begin Workers' Compensation new text end	new text begin 553,000 new text end	new text begin 553,000 new text end

Sec. 10. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin 7,465,000 new text end

new text begin $ new text end

new text begin 7,465,000 new text end

Sec. 11.

Laws 2015, First Special Session chapter 1, article 1, section 4, as amended by
Laws 2016, chapter 189, article 7, section 43, is amended to read:

Sec. 4. EXPLORE MINNESOTA TOURISM

$

14,118,000

$

14,248,000

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

(b) Funding for the marketing grants is
available either year of the biennium.
Unexpended deleted text begin grant deleted text end funds deleted text begin from the first year
are available in the second year deleted text end new text begin up to $250,000
are available until June 30, 2019 new text end .

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2015.
new text end

Sec. 12.

Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is
amended to read:

Subd. 2. Workers' Compensation

15,226,000

17,782,000

This appropriation is from the workers'
compensation fund.

$4,000,000 in fiscal year 2016 and $6,000,000
in fiscal year 2017 are for workers'
compensation system upgrades new text begin and are
available through June 30, 2021 new text end . The base
appropriation for this purpose is $3,000,000
in fiscal year 2018 and $3,000,000 in fiscal
year 2019. The base appropriation for fiscal
year 2020 and beyond is zero.

This appropriation includes funds for
information technology project services and
support subject to the provisions of Minnesota
Statutes, section 16E.0466. Any ongoing
information technology costs will be
incorporated into the service level agreement
and will be paid to the Office of MN.IT
Services by the commissioner of labor and
industry under the rates and mechanism
specified in that agreement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2015.
new text end

ARTICLE 2

COMMERCE

Section 1.

Minnesota Statutes 2016, section 16C.144, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Funding. new text end

new text begin (a) The commissioner of commerce is authorized to set and fix a fee
to fund the program under this section. The fee shall be paid as a percentage of the total
investment cost for a project that has received a fully executed work order contract under
the conditions imposed by this section. The fee percentage shall be adjusted on the basis of
the total value of the contracts approved relative to the funding level needed to operate the
program.
new text end

new text begin (b) Fees collected under this subdivision must be deposited in the guaranteed energy
savings program account under subdivision 8.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 16C.144, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Guaranteed energy savings program account; appropriation. new text end

new text begin (a) A
guaranteed energy savings program account is created as a separate account in the special
revenue fund. The account consists of funds donated, allocated, transferred, or otherwise
provided to the account, including fees collected and deposited under subdivision 7. Earnings,
including interest, dividends, and any other earnings arising from account assets, must be
credited to the account.
new text end

new text begin (b) Funds in the account are annually appropriated to the commissioner of commerce
for activities under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 45.0135, subdivision 7, is amended to read:

Subd. 7.

Assessment.

Each insurer authorized to sell insurance in the state of Minnesota,
including surplus lines carriers, and having Minnesota earned premium the previous calendar
year shall remit an assessment to the commissioner for deposit in the insurance fraud
prevention account on or before June 1 of each year. The amount of the assessment shall
be based on the insurer's total assets and on the insurer's total written Minnesota premium,
for the preceding fiscal year, as reported pursuant to section 60A.13. The assessment is
calculated to be an amount up to the following:

	Total Assets	Assessment
	Less than $100,000,000		$	deleted text begin 200 deleted text end new text begin 375 new text end
	$100,000,000 to $1,000,000,000		$	deleted text begin 750 deleted text end new text begin 1,375 new text end
	Over $1,000,000,000		$	deleted text begin 2,000 deleted text end new text begin 3,625 new text end
	Minnesota Written Premium	Assessment
	Less than $10,000,000		$	deleted text begin 200 deleted text end new text begin 375 new text end
	$10,000,000 to $100,000,000		$	deleted text begin 750 deleted text end new text begin 1,375 new text end
	Over $100,000,000		$	deleted text begin 2,000 deleted text end new text begin 3,625 new text end

For purposes of this subdivision, the following entities are not considered to be insurers
authorized to sell insurance in the state of Minnesota: risk retention groups; or township
mutuals organized under chapter 67A.

Sec. 4.

Minnesota Statutes 2016, section 46.131, subdivision 7, is amended to read:

Subd. 7.

Fiscal year assessments.

Such assessments shall be levied on July 1, 1965,
and deleted text begin at deleted text end new text begin prior to new text end the beginning of each fiscal period beginning July 1 and ending June 30
thereafter, and shall be based on the total estimated expense as herein referred to during
such period. new text begin Assessment revenue will be remitted to the commissioner for deposit in the
financial institutions account on or before July 1 of each year.
new text end

Sec. 5.

Minnesota Statutes 2016, section 46.131, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Financial institutions account; appropriation. new text end

new text begin (a) The financial institutions
account is created as a separate account in the special revenue fund. The account consists
of funds received from assessments under subdivision 7 and examination fees under
subdivision 8. Earnings, including interest, dividends, and any other earnings arising from
account assets, must be credited to the account.
new text end

new text begin (b) Funds in the account are annually appropriated to the commissioner of commerce
for activities under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 47.59, subdivision 2, is amended to read:

Subd. 2.

Application.

Extensions of credit or purchases of extensions of credit by
financial institutions under sections 47.20, 47.21, 47.201, 47.204, 47.58, deleted text begin 47.60, deleted text end 48.153,
48.185, 48.195, 59A.01 to 59A.15, 334.01, 334.011, 334.012, 334.022, 334.06, and 334.061
to 334.19 may, but need not, be made according to those sections in lieu of the authority
set forth in this section to the extent those sections authorize the financial institution to make
extensions of credit or purchase extensions of credit under those sections. If a financial
institution elects to make an extension of credit or to purchase an extension of credit under
those other sections, the extension of credit or the purchase of an extension of credit is
subject to those sections and not this section, except this subdivision, and except as expressly
provided in those sections. A financial institution may also charge an organization a rate of
interest and any charges agreed to by the organization and may calculate and collect finance
and other charges in any manner agreed to by that organization. Except for extensions of
credit a financial institution elects to make under section 334.01, 334.011, 334.012, 334.022,
334.06, or 334.061 to 334.19, chapter 334 does not apply to extensions of credit made
according to this section or the sections listed in this subdivision. This subdivision does not
authorize a financial institution to extend credit or purchase an extension of credit under
any of the sections listed in this subdivision if the financial institution is not authorized to
do so under those sections. A financial institution extending credit under any of the sections
listed in this subdivision shall specify in the promissory note, contract, or other loan document
the section under which the extension of credit is made.

Sec. 7.

Minnesota Statutes 2016, section 47.60, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the terms defined have the
meanings given them:

(a) "Consumer small loan" is a loan transaction in which cash is advanced to a borrower
for the borrower's own personal, family, or household purpose. A consumer small loan is
a short-term, unsecured loan to be repaid in a single installment. The cash advance of a
consumer small loan is equal to or less than $350. A consumer small loan includes an
indebtedness evidenced by but not limited to a promissory note or agreement to defer the
presentation of a personal check for a fee.

(b) "Consumer small loan lender" is a financial institution as defined in section 47.59
or a business entity registered with the commissioner and engaged in the business of making
consumer small loans.

new text begin (c) "Closed" or "close" means that one of the following has occurred in connection with
a consumer small loan or short-term lender concerning the customer's payment instrument:
new text end

new text begin (1) the payment instrument is redeemed by the customer by payment to the registrant
or licensee of the face amount of the payment instrument in cash;
new text end

new text begin (2) the payment instrument is exchanged by the registrant or licensee for a cashier's
check or cash from the customer's financial institution;
new text end

new text begin (3) the payment instrument is deposited by the registrant or licensee, and the registrant
or licensee has evidence that the person has satisfied the obligation;
new text end

new text begin (4) the payment instrument is collected by the registrant or licensee or its agent through
any civil remedy available under the laws of this state; or
new text end

new text begin (5) any other reason that the commissioner may deem to be proper under this section.
new text end

Sec. 8.

Minnesota Statutes 2016, section 47.60, subdivision 2, is amended to read:

Subd. 2.

Authorization, terms, conditions, and prohibitions.

(a) In lieu of the interest,
finance charges, or fees in any other law, a consumer small loan lender may charge the
following:

(1) on any amount up to and including $50, a charge of $5.50 may be added;

(2) on amounts in excess of $50, but not more than $100, a charge may be added equal
to ten percent of the loan proceeds plus a $5 administrative fee;

(3) on amounts in excess of $100, but not more than $250, a charge may be added equal
to seven percent of the loan proceeds with a minimum of $10 plus a $5 administrative fee;

(4) for amounts in excess of $250 and not greater than the maximum in subdivision 1,
paragraph (a), a charge may be added equal to six percent of the loan proceeds with a
minimum of $17.50 plus a $5 administrative fee.

(b) The term of a loan made under this section shall be for no more than 30 calendar
days.

(c) After maturity, the contract rate must not exceed 2.75 percent per month of the
remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly
rate in the contract for each calendar day the balance is outstanding.

(d) No insurance charges or other charges must be permitted to be charged, collected,
or imposed on a consumer small loan except as authorized in this section.

(e) On a loan transaction in which cash is advanced in exchange for a personal check,
a return check charge may be charged as authorized by section 604.113, subdivision 2,
paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph
(b), may not be demanded or assessed against the borrower.

(f) A loan made under this section must not be repaid by the proceeds of another loan
made under this section by the same lender or related interest. The proceeds from a loan
made under this section must not be applied to another loan from the same lender or related
interest. No loan to a single borrower made pursuant to this section shall be split or divided
and no single borrower shall have outstanding more than one loan with the result of collecting
a higher charge than permitted by this section or in an aggregate amount of principal exceed
at any one time the maximum of $350.

new text begin (g) A borrower is prohibited from receiving more than four consumer small loans from
all registrants or licensees in any 12-month period. A consumer small loan lender is prohibited
from making a consumer small loan to a borrower if making that consumer small loan would
result in a borrower receiving more than four consumer small loans from all consumer small
loan lenders in any 12-month period.
new text end

new text begin (h) A consumer small loan lender must independently verify the total number of consumer
small loans taken by the borrower and the number of days the borrower has been indebted
through consumer small loans within the immediately preceding 365 days. Verification
must include:
new text end

new text begin (1) examination of the consumer small loan lender's own records, including records
maintained at the location at which the borrower is applying for the transaction and records
maintained at other locations within the state that are owned and operated by the consumer
small loan lender; and
new text end

new text begin (2) utilization of a privately operated, real-time, electronically accessible database as
defined under subdivision 7 that the commissioner determines to be capable of providing
a consumer small loan lender with adequate verification information necessary to ensure
compliance with this paragraph.
new text end

new text begin (i) A consumer small loan lender shall have a duty to promptly report each consumer
small loan transaction to the database under subdivision 7.
new text end

new text begin (k) A consumer small loan lender may not engage in any device or subterfuge to evade
the requirements of this section or section 47.601, including but not limited to:
new text end

new text begin (1) making, offering, or arranging a consumer small loan on terms that otherwise would
be prohibited by this section or section 47.601;
new text end

new text begin (2) making loans disguised as personal property sales and leaseback transactions; or
new text end

new text begin (3) disguising loan proceeds as cash rebates.
new text end

Sec. 9.

Minnesota Statutes 2016, section 47.60, subdivision 4, is amended to read:

Subd. 4.

Books of account; annual report; schedule of charges; disclosures.

(a) A
lender filing under subdivision 3 shall keep and use in the business books, accounts, and
records as will enable the commissioner to determine whether the filer is complying with
this section.

(b) A lender filing under subdivision 3 shall annually on or before March 15 file a report
to the commissioner giving the information the commissioner reasonably requires concerning
the business and operations during the preceding calendar year, including the information
required to be reported under section 47.601, subdivision 4. new text begin A fee of $130 must be submitted
with the annual report.
new text end

(c) A lender filing under subdivision 3 shall display prominently in each place of business
a full and accurate schedule, to be approved by the commissioner, of the charges to be made
and the method of computing those charges. A lender shall furnish a copy of the contract
of loan to a person obligated on it or who may become obligated on it at any time upon the
request of that person. This is in addition to any disclosures required by the federal Truth
in Lending Act, United States Code, title 15.

(d) A lender filing under subdivision 3 shall, upon repayment of the loan in full, mark
indelibly every obligation signed by the borrower with the word "Paid" or "Canceled" within
20 days after repayment.

(e) A lender filing under subdivision 3 shall display prominently, in each licensed place
of business, a full and accurate statement of the charges to be made for loans made under
this section. The statement of charges must be displayed in a notice, on plastic or other
durable material measuring at least 12 inches by 18 inches, headed "CONSUMER NOTICE
REQUIRED BY THE STATE OF MINNESOTA." The notice shall include, immediately
above the statement of charges, the following sentence, or a substantially similar sentence
approved by the commissioner: "These loan charges are higher than otherwise permitted
under Minnesota law. Minnesota law permits these higher charges only because short-term
small loans might otherwise not be available to consumers. If you have another source of
a loan, you may be able to benefit from a lower interest rate and other loan charges." The
notice must not contain any other statement or information, unless the commissioner has
determined that the additional statement or information is necessary to prevent confusion
or inaccuracy. The notice must be designed with a type size that is large enough to be readily
noticeable and legible. The form of the notice must be approved by the commissioner prior
to its use.

new text begin (f) Every consumer small loan lender shall report to the commissioner within 30 days
any material changes to any of the information submitted by the consumer small loan lender's
original application.
new text end

Sec. 10.

Minnesota Statutes 2016, section 47.60, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Database of outstanding consumer small loan or short-term loan
transactions. new text end

new text begin (a) The commissioner shall, on or before July 1, 2018, implement a common
database with real-time access through an Internet connection for consumer small loan or
short-term loan lenders as provided in this subdivision unless implementing the database
by that date would be financially impracticable for the commissioner to design and operate
a database or because a contract with a qualified third-party provider has not been entered
into. The database shall be accessible to the department and the consumer small loan or
short-term loan lender to verify whether any consumer small loan or short-term loan
transactions are outstanding for a particular person. A consumer small loan or short-term
loan lender shall accurately and promptly submit such data before entering into each
consumer small loan or short-term loan transactions in such format as the commissioner
may require by rule or order, including the customer's name, Social Security number or
employment authorization alien number, address, driver's license number, amount of the
transaction, data of transaction, date that the completed transaction is closed, and any
additional information required by the commissioner. The commissioner may adopt rules
to administer and enforce the provisions of this subdivision and to ensure that the database
is used by consumer small loan or short-term loan lenders in accordance with this section.
new text end

new text begin (b) The commissioner shall impose a fee of $1 per transaction for data required to be
submitted by a consumer small loan or short-term loan lender, which fee may be charged
to the borrower.
new text end

new text begin (c) The commissioner may operate the database described in paragraph (a) or may select
and contract with a third-party provider to operate the database. If the commissioner contracts
with a third-party provider for the operation of the database, all of the following apply:
new text end

new text begin (1) the commissioner shall ensure that the third-party provider selected as the database
provider operates the database pursuant to the provisions of this subdivision;
new text end

new text begin (2) the commissioner shall consider cost of service and ability to meet all the requirements
of this subdivision in selecting a third-party provider as the database provider;
new text end

new text begin (3) in selecting a third-party provider to act as the database provider, the commissioner
shall give strong consideration to the third-party provider's ability to prevent fraud, abuse,
and other unlawful activities associated with deferred presentment service transactions and
provide additional tools for the administration and enforcement of this section;
new text end

new text begin (4) the third-party provider shall use the data collected under this subdivision only as
prescribed in this section and the contract with the department and for no other purpose;
new text end

new text begin (5) if the third-party provider violates this section, the commissioner may terminate the
contract and the third-party provider may be barred from becoming a party to any other
state contracts;
new text end

new text begin (6) a person injured by the third-party provider's violation of this section may maintain
a civil cause of action against the third-party provider and may recover actual damages plus
reasonable attorney fees and court costs; and
new text end

new text begin (7) the commissioner may require that the third-party provider collect the fee assessed
in paragraph (b) from the consumer small loan or short-term lender. The third-party provider
shall remit the fee collected from the consumer small loan or short-term lender to the
commissioner no later than the first day of each month. The third-party provider shall deposit
any fee collected in a separate escrow account in a federally insured financial institution
and shall hold the fee deposited in trust for the state.
new text end

new text begin (d) The database described in paragraph (a) shall allow a consumer small loan or
short-term loan lender accessing the database to do all of the following:
new text end

new text begin (1) verify whether a customer has any open consumer small loan or short-term loan
transactions with any consumer small loan or short-term loan lender that have not been
closed;
new text end

new text begin (2) provide information necessary to ensure consumer small loan or short-term loan
lender compliance with any requirements imposed by the United States Treasury Office of
Foreign Assets Control and United States Treasury Office of Financial Crimes Enforcement
Network; and
new text end

new text begin (3) track and monitor the number of customers who notify a consumer small loan or
short-term loan lender of violations of this subdivision, the number of times a consumer
small loan or short-term loan lender agreed that a violation occurred, the number of times
that a consumer small loan or short-term loan lender did not agree that a violation occurred,
the amount of restitution paid, and any other information the commissioner requires by rule
or order.
new text end

new text begin (e) While operating the database, the database provider shall do all of the following:
new text end

new text begin (1) establish and maintain a process for responding to transaction verification requests
due to technical difficulties occurring with the database that prevent the registrant or licensee
from accessing the database through the Internet;
new text end

new text begin (2) comply with any applicable federal and state provisions to prevent identity theft;
new text end

new text begin (3) provide accurate and secure receipt, transmission, and storage of customer data; and
new text end

new text begin (4) meet the requirements of this section.
new text end

new text begin (f) When the database provider receives notification that a consumer small loan or
short-term transaction has been closed, the database provider shall designate the transaction
as closed in the database immediately, but in no event after 11:59 p.m. on the day the
commissioner or database provider receives notification.
new text end

new text begin (g) The database provider shall automatically designate a consumer small loan or
short-term loan transaction as closed in the database five days after the transaction maturity
date unless a consumer small loan or short-term loan lender reports to the database provider
before that time that the transaction remains open because of the customer's failure to make
payment; that the transaction is open because the customer's payment instrument or an
electronic redeposit is in the process of clearing the banking system; that the transaction
remains open because the customer's payment instrument is being returned to the consumer
small loan or short-term loan lender for insufficient funds, a closed account, or a stop
payment order; or because of any other factors determined by the commissioner. If a
consumer small loan or short-term loan lender reports the status of a transaction as open in
a timely manner, the transaction remains an open transaction until it is closed and the
database provider is notified that the transaction is closed.
new text end

new text begin (h) If a consumer small loan or short-term loan lender stops providing consumer small
loan or short-term loan transactions, the database provider shall designate all open
transactions with that registrant or licensee as closed in the database 60 days after the date
the consumer small loan or short-term loan lender stops offering consumer small loan or
short-term loan transactions, unless the consumer small loan or short-term loan lender reports
to the database provider before the expiration of the 60-day period which of its transactions
remain open and the specific reason each transaction remains open. The consumer small
loan or short-term loan lender shall also provide to the commissioner a reasonably acceptable
plan that outlines how the consumer small loan or short-term loan lender will continue to
update the database after it stops offering deferred presentment service transactions. The
commissioner shall promptly approve or disapprove the plan and immediately notify the
consumer small loan or short-term loan lender of the commissioner's decision. If the plan
is disapproved, the consumer small loan or short-term loan lender may submit a new plan
or may submit a modified plan for the consumer small loan or short-term loan lender to
follow. If at any time the commissioner reasonably determines that a consumer small loan
or short-term loan lender that has stopped offering consumer small loan or short-term loan
transactions is not updating the database in accordance with its approved plan, the
commissioner shall immediately close or instruct the database provider to immediately close
all remaining open transactions of that consumer small loan or short-term loan lender.
new text end

new text begin (i) The response to an inquiry to the database provider by a consumer small loan or
short-term loan lender shall state only that a person is eligible or ineligible for a new
consumer small loan or short-term loan transaction and describe the reason for that
determination. Only the person seeking the transaction may make a direct inquiry to the
database provider to request a more detailed explanation of a particular transaction that was
the basis for the ineligibility determination. Any information regarding any person's
transaction history is confidential; is not subject to public inspection; is not a public record
subject to the disclosure requirements of the Minnesota Government Data Practices Act,
chapter 13; is not subject to discovery, subpoena, or other compulsory process, except in
an administrative or legal action arising under this subdivision; and shall not be disclosed
to any person other than the commissioner.
new text end

new text begin (j) The commissioner may access the database provided under paragraph (a) only for
purposes of an investigation of, examination of, or enforcement action concerning an
individual database provider, registrant or licensee, customer, or other person.
new text end

new text begin (k) The commissioner shall investigate violations of and enforce this section. The
commissioner shall not delegate the commissioner's responsibilities under this subdivision
to any third-party provider.
new text end

new text begin (l)(1) The commissioner shall make a determination that the database is fully operational
and shall send written notification to each registrant or licensee subject to the provisions of
this section:
new text end

new text begin (i) that the database has been implemented; and
new text end

new text begin (ii) of the exact date that the database shall be considered operational for the data entry
requirement established in clause (2);
new text end

new text begin (2) A consumer small loan or short-term loan lender shall promptly and accurately enter
into the database all transactions undertaken by the registrant or licensee upon receipt of
the written notification established in this paragraph.
new text end

new text begin (m) The commissioner may, by rule or order, do all of the following:
new text end

new text begin (1) require that data be retained in the database only as required to ensure consumer
small loan or short-term loan lender compliance with this section;
new text end

new text begin (2) require that customer transaction data in the database is archived within 365 days
after the customer transaction is closed unless needed for a pending enforcement or legal
action;
new text end

new text begin (3) require that any identifying customer information is deleted from the database when
data is archived; and
new text end

new text begin (4) require that data in the database concerning a customer transaction is deleted from
the database three years after the customer transaction is closed, or if any administrative,
legal, or law enforcement action is pending, three years after the administrative, legal, or
law enforcement action is completed, whichever is later.
new text end

new text begin (n) The commissioner may maintain access to data archived under paragraph (m) for
examination, investigation, or legislative or policy review.
new text end

new text begin (o) A consumer small loan or short-term loan lender may rely on the information
contained in the database as accurate and is not subject to any administrative penalty or
civil liability as a result or relying on inaccurate information contained in the database,
provided the consumer small loan or short-term lender accurately and promptly submits
such data as required before entering into a consumer small loan or short-term loan
transaction with a customer.
new text end

new text begin (p) The commissioner may use the database to administer and enforce this section.
new text end

new text begin (q) The commissioner may require a database provider to file a report by March 1 of
each year containing the following information:
new text end

new text begin (1) the total number and dollar amount of consumer small loan or short-term loan
transactions entered into in the calendar year ending December 3 of the previous year;
new text end

new text begin (2) the total number and dollar amount of consumer small loan or short-term loan
transactions outstanding as of December 31 of the previous year;
new text end

new text begin (3) the total dollar amount of fees collected for consumer small loan or short-term loan
transactions as of December 31 of the previous year;
new text end

new text begin (4) the minimum, maximum, and average dollar amount of consumer small loan or
short-term loan transactions entered into, the total dollar amount of the net charge-offs and
write-offs, and the net recoveries of registrants or licensees as of December 31 of the previous
year;
new text end

new text begin (5) the average consumer small loan or short-term loan transactions amount, the average
number of transactions, and the average aggregate consumer small loan or short-term loan
transactions amount entered into per customer as of December 31 of the previous year;
new text end

new text begin (6) the average number of days a customer was engaged in a consumer small loan or
short-term loan transactions for the previous year; and
new text end

new text begin (7) an estimate of the average total fees paid per customer for consumer small loan or
short-term loan transactions for the previous year.
new text end

new text begin (r) Enforcement of this section is effective 90 days after the database implementation
date established by the commissioner as set forth in paragraph (l).
new text end

Sec. 11.

Minnesota Statutes 2016, section 47.601, subdivision 2, is amended to read:

Subd. 2.

Consumer short-term loan contract.

(a) No contract or agreement between
a consumer short-term loan lender and a borrower residing in Minnesota may contain the
following:

(1) a provision selecting a law other than Minnesota law under which the contract is
construed or enforced;

(2) a provision choosing a forum for dispute resolution other than the state of Minnesota;
or

(3) a provision limiting class actions against a consumer short-term lender for violations
of subdivision 3 or for making consumer short-term loans:

(i) without a required license issued by new text begin or a required registration with new text end the commissioner;
or

(ii) in which interest rates, fees, charges, or loan amounts exceed those allowable under
section deleted text begin 47.59, subdivision 6, or deleted text end 47.60, subdivision 2 deleted text begin , other than by de minimis amounts if
no pattern or practice exists deleted text end .

(b) Any provision prohibited by paragraph (a) is void and unenforceable.

(c) A consumer short-term loan lender must furnish a copy of the written loan contract
to each borrower. The contract and disclosures must be written in the language in which
the loan was negotiated with the borrower and must contain:

(1) the name; address, which may not be a post office box; and telephone number of the
lender making the consumer short-term loan;

(2) the name and title of the individual employee or representative who signs the contract
on behalf of the lender;

(3) an itemization of the fees and interest charges to be paid by the borrower;

(4) in bold, 24-point type, the annual percentage rate as computed under United States
Code, chapter 15, section 1606; and

(5) a description of the borrower's payment obligations under the loan.

(d) The holder or assignee of a check or other instrument evidencing an obligation of a
borrower in connection with a consumer short-term loan takes the instrument subject to all
claims by and defenses of the borrower against the consumer short-term lender.

Sec. 12.

Minnesota Statutes 2016, section 47.601, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Requirements; prohibitions. new text end

new text begin (a) A consumer short-term lender may not make
a consumer short-term loan to a borrower that will cause a borrower to have, as of the date
of the loan and within the immediately preceding 365 days:
new text end

new text begin (1) more than four consumer short-term loans; or
new text end

new text begin (2) consumer short-term loan debt totaling more than 90 days.
new text end

new text begin In determining the number of loans and days of indebtedness, a consumer short-term
lender must aggregate the consumer short-term loan transaction for which the determination
is being made with all the consumer short-term loans the borrower has taken from all
consumer short-term lenders within the immediately preceding 365 days. A consumer
short-term lender may not make a consumer short-term loan to a borrower if the lender is
unable to verify the number of loans the borrower has taken or the days the borrower has
been indebted in total from all consumer short-term lenders within the immediately preceding
365 days.
new text end

new text begin (b) A consumer short-term lender must independently verify the total number of consumer
short-term loans taken by the borrower and the number of days the borrower has been
indebted through consumer short-term loans within the immediately preceding 365 days.
Verification must include:
new text end

new text begin (1) examination of the consumer short-term lender's own records, including records
maintained at the location at which the borrower is applying for the transaction and records
maintained at other locations within the state that are owned and operated by the consumer
short-term lender; and
new text end

new text begin (2) utilization of a privately operated, real-time, electronically accessible database as
defined under section 47.60, subdivision 7, that the commissioner determines to be capable
of providing a consumer short-term lender with adequate verification information necessary
to ensure compliance with this paragraph.
new text end

new text begin (c) A consumer short-term lender shall have a duty to promptly report each consumer
short-term loan transaction to the database under section 47.60, subdivision 7.
new text end

new text begin (d) A consumer short-term lender may not engage in any device or subterfuge to evade
the requirements of this section or section 47.60, including but not limited to:
new text end

new text begin (1) making, offering, or arranging a consumer short-term loan on terms that otherwise
would be prohibited by this section or section 47.60;
new text end

new text begin (2) making loans disguised as personal property sales and leaseback transactions; or
new text end

new text begin (3) disguising loan proceeds as cash rebates.
new text end

Sec. 13.

Minnesota Statutes 2016, section 47.65, subdivision 2, is amended to read:

Subd. 2.

Application.

Before installation and operation, a transmission facility application
by a person who is required to submit an application under subdivision 1 shall be submitted
to the commissioner on a form provided by the commissioner which states:

(a) The location where the transmission facility will be operated;

(b) The ownership of the transmission facility;

(c) If applicable, the bonding or insurance company which has provided the bond for
the transmission facility; and

(d) Such other information as the commissioner requires.

If the commissioner finds that (a) the facility will be properly and safely managed, (b)
the applicant is financially sound, (c) there is a reasonable probability of success for the
facility, (d) the proposed charges for making the services of the facility available to financial
institutions are fair, equitable and nondiscriminatory, and (e) all information has been
furnished by the applicant, the commissioner shall approve the application within 90 days.
If the commissioner has not denied the application within 90 days of the submission of the
application, the authorization shall be deemed granted. For each application, a $500 fee
shall be paid to the commissioner. For each application for change in pricing structure, a
$50 fee shall be paid to the commissioner. If the $500 fee or the $50 fee is less than the
costs incurred by the commissioner in approving or disapproving the application, the
application fee shall be equal to those costs. new text begin An annual license fee of $80 for each location
shall be submitted with the annual renewal in the Nationwide Multi-State Licensing System.
new text end

Sec. 14.

Minnesota Statutes 2016, section 53.04, subdivision 3a, is amended to read:

Subd. 3a.

Loans.

(a) The right to make loans, secured or unsecured, at the rates and on
the terms and other conditions permitted under chapters 47 and 334. Loans made under this
authority must be in amounts in compliance with section 53.05, clause (7). A licensee making
a loan under this chapter secured by a lien on real estate shall comply with the requirements
of section 47.20, subdivision 8. new text begin To the extent a licensee under this chapter makes loans that
meet the definition of a "consumer small loan" under section 47.60, subdivision 1, paragraph
(a), or a "consumer short-term loan" under section 47.601, subdivision 1, paragraph (d),
such loans are governed by sections 47.60 and 47.601.
new text end

(b) Loans made under this subdivision may be secured by real or personal property, or
both. If the proceeds of a loan secured by a first lien on the borrower's primary residence
are used to finance the purchase of the borrower's primary residence, the loan must comply
with the provisions of section 47.20.

(c) An agency or instrumentality of the United States government or a corporation
otherwise created by an act of the United States Congress or a lender approved or certified
by the secretary of housing and urban development, or approved or certified by the
administrator of veterans affairs, or approved or certified by the administrator of the Farmers
Home Administration, or approved or certified by the Federal Home Loan Mortgage
Corporation, or approved or certified by the Federal National Mortgage Association, that
engages in the business of purchasing or taking assignments of mortgage loans and undertakes
direct collection of payments from or enforcement of rights against borrowers arising from
mortgage loans, is not required to obtain a certificate of authorization under this chapter in
order to purchase or take assignments of mortgage loans from persons holding a certificate
of authorization under this chapter.

(d) This subdivision does not authorize an industrial loan and thrift company to make
loans under an overdraft checking plan.

Sec. 15.

Minnesota Statutes 2016, section 53.09, subdivision 2, is amended to read:

Subd. 2.

Annual report.

(1) Each industrial loan and thrift company shall annually on
or before the first day of March file a report with the commissioner stating in detail, under
appropriate heads, its assets and liabilities at the close of business on the last day of the
preceding calendar year and, if applicable, information required under section 47.601,
subdivision 4. This report shall be made under oath in the form prescribed by the
commissioner. new text begin An annual license fee of $780 for the principal and $530 for each location
must be submitted with the annual report.
new text end

(2) Each industrial loan and thrift company which holds authority to accept accounts
pursuant to section 53.04, subdivision 5, shall in place of the requirement in clause (1)
submit the reports required of state banks pursuant to section 48.48.

(3) Within 30 days following a change in controlling ownership of the capital stock of
an industrial loan and thrift company, it shall file a written report with the commissioner
stating in detail the nature of such change in ownership.

Sec. 16.

Minnesota Statutes 2016, section 53A.03, is amended to read:

53A.03 APPLICATION FOR LICENSE; FEES.

(a) An application for a license must be in writing, under oath, and in the form prescribed
and furnished by the commissioner and must contain the following:

(1) the full name and address (both of residence and place of business) of the applicant,
and if the applicant is a partnership or association, of every member, and the name and
business address if the applicant is a corporation;

(2) the county and municipality, with street and number, if any, of all currency exchange
locations operated by the applicant; and

(3) the applicant's occupation or profession, for the ten years immediately preceding the
application; present or previous connection with any other currency exchange in this or any
other state; whether the applicant has ever been convicted of any crime; and the nature of
the applicant's occupancy of the premises to be licensed; and if the applicant is a partnership
or a corporation, the information specified in this paragraph must be supplied for each
partner and each officer and director of the corporation. If the applicant is a partnership or
a nonpublicly held corporation, the information specified in this paragraph must be required
of each partner and each officer, director, and stockholders owning in excess of ten percent
of the corporate stock of the corporation.

(b) The application shall be accompanied by a nonrefundable fee of $1,000 for the review
of the initial application. Upon approval by the commissioner, an additional license fee of
deleted text begin $500 deleted text end new text begin $780 new text end must be paid by the applicant as an annual license fee for the remainder of the
calendar year. An annual license fee of deleted text begin $500 deleted text end new text begin $780 new text end is due for each subsequent calendar year
of operation upon submission of a license renewal application on or before September 1.
Fees must be deposited in the state treasury and credited to the general fund. Upon payment
of the required annual license fee, the commissioner shall issue a license for the year
beginning January 1.

(c) The commissioner shall require the applicant to submit to a background investigation
conducted by the Bureau of Criminal Apprehension as a condition of licensure. As part of
the background investigation, the Bureau of Criminal Apprehension shall conduct criminal
history checks of Minnesota records and is authorized to exchange fingerprints with the
Federal Bureau of Investigation for the purpose of a criminal background check of the
national files. The cost of the investigation must be paid by the applicant.

(d) For purposes of this section, "applicant" includes an employee who exercises
management or policy control over the company, a director, an officer, a limited or general
partner, a manager, or a shareholder holding more than ten percent of the outstanding stock
of the corporation.

Sec. 17.

Minnesota Statutes 2016, section 53B.11, subdivision 1, is amended to read:

Subdivision 1.

Fee.

The annual fee for renewal of a license under this chapter is deleted text begin $2,500 deleted text end new text begin
$3,030 new text end .

Sec. 18.

Minnesota Statutes 2016, section 53C.02, is amended to read:

53C.02 SALES FINANCE COMPANY; LICENSE, FEES, REFUND.

(a) No person shall engage in the business of a sales finance company in this state without
a license therefor as provided in sections 53C.01 to 53C.14 provided, however, that no bank,
trust company, savings bank, savings association, or credit union, whether state or federally
chartered, industrial loan and thrift company, or licensee under the Minnesota Regulated
Loan Act authorized to do business in this state shall be required to obtain a license under
sections 53C.01 to 53C.14.

(b) The application for a license shall be in writing, under oath and in the form prescribed
by the commissioner. The application shall contain the name of the applicant; date of
incorporation, if incorporated; the address where the business is or is to be conducted and
similar information as to any branch office of the applicant; the name and resident address
of the owner or partners, or, if a corporation or association, of the directors, trustees and
principal officers, and other pertinent information the commissioner requires.

(c) The licensee fee for the fiscal year beginning July 1 and ending June 30 of the
following year, or any part thereof shall be the sum of deleted text begin $250 deleted text end new text begin $330 new text end for the principal place of
business of the licensee, and the sum of deleted text begin $125 deleted text end new text begin $205 new text end for each branch of the licensee, maintained
in this state. Any licensee who proves to the satisfaction of the commissioner, by affidavit
or other proof satisfactory to the commissioner, that during the 12 calendar months of the
immediately preceding fiscal year, for which the license has been paid that the licensee has
not held retail installment contracts exceeding $15,000 in amount, shall be entitled to a
refund of that portion of each license fee paid in excess of $25. The commissioner shall
certify to the commissioner of management and budget that the licensee is entitled to a
refund, and payment thereof shall be made by the commissioner of management and budget.
The amount necessary to pay for the refundment of the license fee is appropriated out of
the general fund. All license fees received by the commissioner under sections 53C.01 to
53C.14 shall be deposited with the commissioner of management and budget.

(d) Each license shall specify the location of the office or branch and must be
conspicuously displayed there. In case the location be changed, the commissioner shall
endorse the change of location on the license.

(e) Upon the filing of such application, and the payment of the fee, the commissioner
shall issue a license to the applicant to engage in the business of a sales finance company
under and in accordance with the provisions of sections 53C.01 to 53C.14 for a period which
shall expire the last day of June next following the date of its issuance. The license shall
not be transferable or assignable. No licensee shall transact any business provided for by
sections 53C.01 to 53C.14 under any other name.

Sec. 19.

Minnesota Statutes 2016, section 55.04, subdivision 2, is amended to read:

Subd. 2.

Application for license.

Application for license shall be in writing, under oath,
and in the form prescribed by the commissioner of commerce, and contain the name and
address, both of the residence and place of business, of the applicant, and if the applicant
is a partnership or unincorporated association, of every member thereof, and if a corporation,
of each officer and director thereof; also the county and municipality, with street and number,
if any, where the business is to be conducted; and further information the commissioner of
commerce requires. The applicant at the time of making application shall pay to the
commissioner the sum of $250 as a fee for investigating the application, and the additional
sum of deleted text begin $150 deleted text end new text begin $330 new text end as an annual license fee for a period terminating on the last day of the
current calendar year.

Sec. 20.

Minnesota Statutes 2016, section 56.02, is amended to read:

56.02 APPLICATION FEE.

Application for license shall be in writing, under oath, and in the form prescribed by the
commissioner, and contain the name and the address, both of the residence and place of
business, of the applicant and, if the applicant is a copartnership or association, of every
member thereof, and if a corporation, of each officer and director thereof; also the county
and municipality, with street and number, if any, where the business is to be conducted, and
such further information as the commissioner may require. The applicant at the time of
making application, shall pay to the commissioner the sum of $500 as a fee for investigating
the application, and the additional sum of deleted text begin $250 deleted text end new text begin $530 new text end as an annual license fee for a period
terminating on the last day of the current calendar year. In addition to the annual license
fee, every licensee hereunder shall pay to the commissioner the actual costs of each
examination, as provided for in section 56.10. All moneys collected by the commissioner
under this chapter shall be turned over to the commissioner of management and budget and
credited by the commissioner of management and budget to the general fund of the state.

Every applicant shall also prove, in form satisfactory to the commissioner, that the
applicant has available for the operation of the business at the location specified in the
application, liquid assets of at least $50,000.

Sec. 21.

Minnesota Statutes 2016, section 58.10, subdivision 1, is amended to read:

Subdivision 1.

Amounts.

The following fees must be paid to the commissioner:

(1) for a residential mortgage originator license, $1,000, $50 of which is credited to the
consumer education account in the special revenue fund;

(2) for a renewal license, deleted text begin $500 deleted text end new text begin $780 new text end , $50 of which is credited to the consumer education
account in the special revenue fund;

(3) for a residential mortgage servicer's license, deleted text begin $500 deleted text end new text begin $530 new text end ;

(4) for a renewal license, deleted text begin $250 deleted text end new text begin $530 new text end ; and

(5) for a certificate of exemption, $100.

Sec. 22.

Minnesota Statutes 2016, section 58A.045, subdivision 2, is amended to read:

Subd. 2.

Fees.

The following fees must be paid to the commissioner:

(1) for a mortgage loan originator license, $90; and

(2) for a renewal mortgage loan originator license, deleted text begin $50 deleted text end new text begin $75 new text end .

Sec. 23.

Minnesota Statutes 2016, section 59A.03, subdivision 2, is amended to read:

Subd. 2.

Required fees.

The applicant at the time of making application, shall pay to
the commissioner the sum of deleted text begin $250 deleted text end new text begin $280 new text end as a fee for investigating the application, and the
additional sum of deleted text begin $200 deleted text end new text begin $280 new text end as an annual licensee fee for a period terminating on May 31
of each year. In addition to the annual license fee, every licensee shall pay to the
commissioner the actual costs of each examination as may be required to be conducted
under the terms of sections 59A.01 to 59A.15.

Sec. 24.

Minnesota Statutes 2016, section 80A.61, is amended to read:

80A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT,
FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER
REPRESENTATIVE.

(a) Application for initial registration by broker-dealer, agent, deleted text begin or deleted text end investment adviser new text begin ,
or investment adviser representative new text end . A person shall register as a broker-dealer, agent,
deleted text begin or deleted text end investment adviser new text begin , or investment adviser representative new text end by filing an application and a
consent to service of process complying with section 80A.88, and paying the fee specified
in section 80A.65 and any reasonable fees charged by the designee of the administrator for
processing the filing. The application must contain:

(1) the information or record required for the filing of a uniform application; and

(2) upon request by the administrator, any other financial or other information or record
that the administrator determines is appropriate.

(b) Amendment. If the information or record contained in an application filed under
subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant
shall promptly file a correcting amendment.

(c) Effectiveness of registration. If an order is not in effect and a proceeding is not
pending under section 80A.67, registration becomes effective at noon on the 45th day after
a completed application is filed, unless the registration is denied. A rule adopted or order
issued under this chapter may set an earlier effective date or may defer the effective date
until noon on the 45th day after the filing of any amendment completing the application.

(d) Registration renewal. A registration is effective until midnight on December 31 of
the year for which the application for registration is filed. Unless an order is in effect under
section 80A.67, a registration may be automatically renewed each year by filing such records
as are required by rule adopted or order issued under this chapter, by paying the fee specified
in section 80A.65, and by paying costs charged by the designee of the administrator for
processing the filings.

(e) Additional conditions or waivers. A rule adopted or order issued under this chapter
may impose such other conditions, not inconsistent with the National Securities Markets
Improvement Act of 1996. An order issued under this chapter may waive, in whole or in
part, specific requirements in connection with registration as are in the public interest and
for the protection of investors.

(f) Funding portal registration. A funding portal that has its principal place of business
in the state of Minnesota shall register with the state of Minnesota by filing with the
administrator a copy of the information or record required for the filing of an application
for registration as a funding portal in the manner established by the Securities and Exchange
Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with
any rule adopted or order issued, and any amendments thereto.

(g) Application for investment adviser representative registration.

(1) The application for initial registration as an investment adviser representative pursuant
to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities
Industry Registration or Transfer) in accordance with the form instructions and by filing
the form U-4 with the IARD. The application for initial registration must also include the
following:

(i) proof of compliance by the investment adviser representative with the examination
requirements of:

(A) the Uniform Investment Adviser Law Examination (Series 65); or

(B) the General Securities Representative Examination (Series 7) and the Uniform
Combined State Law Examination (Series 66);

(ii) any other information the administrator may reasonably require.

(2) The application for the annual renewal registration as an investment adviser
representative shall be filed with the IARD.

(3)(i) The investment adviser representative is under a continuing obligation to update
information required by Form U-4 as changes occur;

(ii) An investment adviser representative and the investment adviser must file promptly
with the IARD any amendments to the representative's Form U-4; and

(iii) An amendment will be considered to be filed promptly if the amendment is filed
within 30 days of the event that requires the filing of the amendment.

(4) An application for initial or renewal of registration is not considered filed for purposes
of section 80A.58 until the required fee and all required submissions have been received
by the administrator.

(5) The application for withdrawal of registration as an investment adviser representative
pursuant to section 80A.58 shall be completed by following the instructions on Form U-5
(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5
with the IARD.

Sec. 25.

Minnesota Statutes 2016, section 80A.65, subdivision 2, is amended to read:

Subd. 2.

Registration application and renewal filing fee.

Every applicant for an initial
or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, deleted text begin $50 deleted text end new text begin $65 new text end
in the case of an agent, deleted text begin and deleted text end $100 in the case of an investment adviser new text begin , and $50 in the case
of an investment adviser representative new text end . When an application is denied or withdrawn, the
filing fee shall be retained. A registered agent who has terminated employment with one
broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer
fee of $25.

Sec. 26.

Minnesota Statutes 2016, section 216B.2401, is amended to read:

216B.2401 ENERGY SAVINGS POLICY GOAL.

The legislature finds that energy savings are an energy resource, and that cost-effective
energy savings are preferred over all other energy resources. The legislature further finds
that cost-effective energy savings should be procured systematically and aggressively in
order to reduce utility costs for businesses and residents, improve the competitiveness and
profitability of businesses, create more energy-related jobs, reduce the economic burden of
fuel imports, and reduce pollution and emissions that cause climate change. Therefore, it
is the energy policy of the state of Minnesota to achieve annual energy savings equal to at
least deleted text begin 1.5 deleted text end new text begin two new text end percent of annual retail energy sales of electricity and natural gas through
cost-effective energy conservation improvement programs and rate design, energy efficiency
achieved by energy consumers without direct utility involvement, energy codes and appliance
standards, programs designed to transform the market or change consumer behavior, energy
savings resulting from efficiency improvements to the utility infrastructure and system, and
other efforts to promote energy efficiency and energy conservation.

Sec. 27.

Minnesota Statutes 2016, section 216B.241, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section and section 216B.16, subdivision
6b, the terms defined in this subdivision have the meanings given them.

(a) "Commission" means the Public Utilities Commission.

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

(c) "Department" means the Department of Commerce.

(d) "Energy conservation" means demand-side management of energy supplies resulting
in a net reduction in energy use. Load management that reduces overall energy use is energy
conservation.

(e) "Energy conservation improvement" means a project that results in energy efficiency
or energy conservation. Energy conservation improvement may include waste heat that is
recovered and converted into electricity, but does not include electric utility infrastructure
projects approved by the commission under section 216B.1636. Energy conservation
improvement also includes waste heat recovered and used as thermal energy new text begin and combined
heat and power as defined in paragraph (p) new text end .

(f) "Energy efficiency" means measures or programs, including energy conservation
measures or programs, that target consumer behavior, equipment, processes, new text begin facility
performance, operations and maintenance, new text end or devices designed to produce either an absolute
decrease in consumption of electric energy or natural gas or a decrease in consumption of
electric energy or natural gas on a per unit of production basis without a reduction in the
quality or level of service provided to the energy consumer.

(g) "Gross annual retail energy sales" means annual electric sales to all retail customers
in a utility's or association's Minnesota service territory or natural gas throughput to all retail
customers, including natural gas transportation customers, on a utility's distribution system
in Minnesota. For purposes of this section, gross annual retail energy sales exclude:

(1) gas sales to:

(i) a large energy facility;

(ii) a large customer facility whose natural gas utility has been exempted by the
commissioner under subdivision 1a, paragraph (b), with respect to natural gas sales made
to the large customer facility; and

(iii) a commercial gas customer facility whose natural gas utility has been exempted by
the commissioner under subdivision 1a, paragraph (c), with respect to natural gas sales
made to the commercial gas customer facility; and

(2) electric sales to a large customer facility whose electric utility has been exempted
by the commissioner under subdivision 1a, paragraph (b), with respect to electric sales made
to the large customer facility.

(h) "Investments and expenses of a public utility" includes the investments and expenses
incurred by a public utility in connection with an energy conservation improvement, including
but not limited to:

(1) the differential in interest cost between the market rate and the rate charged on a
no-interest or below-market interest loan made by a public utility to a customer for the
purchase or installation of an energy conservation improvement;

(2) the difference between the utility's cost of purchase or installation of energy
conservation improvements and any price charged by a public utility to a customer for such
improvements.

(i) "Large customer facility" means all buildings, structures, equipment, and installations
at a single site that collectively (1) impose a peak electrical demand on an electric utility's
system of not less than 20,000 kilowatts, measured in the same way as the utility that serves
the customer facility measures electrical demand for billing purposes or (2) consume not
less than 500 million cubic feet of natural gas annually. In calculating peak electrical demand,
a large customer facility may include demand offset by on-site cogeneration facilities and,
if engaged in mineral extraction, may aggregate peak energy demand from the large customer
facility's mining and processing operations.

(j) "Large energy facility" has the meaning given it in section 216B.2421, subdivision
2, clause (1).

(k) "Load management" means an activity, service, or technology to change the timing
or the efficiency of a customer's use of energy that allows a utility or a customer to respond
to wholesale market fluctuations or to reduce peak demand for energy or capacity.

(l) "Low-income programs" means energy conservation improvement programs that
directly serve the needs of low-income persons, including low-income renters.

(m) "Qualifying utility" means a utility that supplies the energy to a customer that enables
the customer to qualify as a large customer facility.

(n) "Waste heat recovered and used as thermal energy" means capturing heat energy
that would otherwise be exhausted or dissipated to the environment from machinery,
buildings, or industrial processes and productively using such recovered thermal energy
where it was captured or distributing it as thermal energy to other locations where it is used
to reduce demand-side consumption of natural gas, electric energy, or both.

(o) "Waste heat recovery converted into electricity" means an energy recovery process
that converts otherwise lost energy from the heat of exhaust stacks or pipes used for engines
or manufacturing or industrial processes, or the reduction of high pressure in water or gas
pipelines.

new text begin (p) "Combined heat and power" means the concurrent production of electricity or
mechanical power and useful thermal energy, heating, or cooling from a single source of
energy. Combined heat and power includes topping-cycle systems that produce electricity
first, then recover the excess thermal energy for heating or cooling applications and
bottoming-cycle systems that use waste heat from an existing process to produce electricity.
A bottoming cycle may use the heat source to produce electricity using an organic rankine
cycle or backpressure steam turbine.
new text end

Sec. 28.

Minnesota Statutes 2016, section 216B.241, subdivision 1c, is amended to read:

Subd. 1c.

Energy-saving goals.

(a) The commissioner shall establish energy-saving
goals for energy conservation improvement expenditures and shall evaluate an energy
conservation improvement program on how well it meets the goals set.

(b) new text begin Unless modified by the commissioner under paragraph (d), new text end each individual new text begin electric
new text end utility and association shall have an annual energy-savings goal equivalent to deleted text begin 1.5 deleted text end new text begin two new text end percent
new text begin of gross annual retail sales, and each individual natural gas utility shall have an annual
energy-savings goal equivalent to 1.5 percent new text end of gross annual retail energy sales deleted text begin unless
modified by the commissioner under paragraph (d) deleted text end . The savings goals must be calculated
based on the most recent three-year weather-normalized average. deleted text begin A deleted text end new text begin The effective date and
interim requirements for the energy-savings goals are established in paragraph (d). An
electric new text end utility or association may elect to carry forward new text begin annual new text end energy savings in excess of
deleted text begin 1.5 deleted text end new text begin two new text end percent deleted text begin for a year deleted text end to new text begin one of new text end the succeeding three calendar years deleted text begin , except that deleted text end new text begin . Energy new text end
savings from electric utility infrastructure projects allowed under paragraph deleted text begin (d) deleted text end new text begin (e) new text end may be
carried forward deleted text begin for deleted text end new text begin to one of the succeeding new text end five new text begin calendar new text end years. deleted text begin A particular energy savings
can be used only for one year's goal. deleted text end new text begin A natural gas utility may elect to carry forward energy
savings in excess of 1.5 percent to one of the succeeding three calendar years.
new text end

(c) deleted text begin The commissioner must adopt a filing schedule that is designed to have all utilities
and associations operating under an energy-savings plan by calendar year 2010. deleted text end new text begin Electric
public utilities have a collective goal of 800 megawatts of installed combined heat and
power systems, as defined in subdivision 1, by 2025. Natural gas public utilities have a
collective goal of 34 trillion British thermal units of combined heat and power, as defined
in subdivision 1, by 2025. The commissioner shall, in consultation with utilities and
stakeholders, establish the following by December 31, 2018:
new text end

new text begin (1) specific combined heat and power goals for each utility that will lead to cumulative
achievement of 800 megawatts and 34 trillion British thermal units;
new text end

new text begin (2) eligible technologies for inclusion in the combined heat and power goal;
new text end

new text begin (3) combined heat and power system efficiency standards;
new text end

new text begin (4) utility combined heat and power project evaluation criteria;
new text end

new text begin (5) methodologies for quantifying performance metrics of combined heat and power
systems;
new text end

new text begin (6) attribution of energy savings between electric and natural gas utilities; and
new text end

new text begin (7) measurement and verification requirements.
new text end

new text begin (d) By October 1, 2017, electric public utilities and natural gas public utilities shall file
a modification to their respective energy conservation improvement program plans pursuant
to Minnesota Rules, part 7690.0700. Municipal and cooperative utilities or associations
shall file the updated energy-savings goals in the regularly scheduled planning cycle by
June 1, 2018. The commissioner may approve the energy conservation improvement plans
or modifications with the interim goals outlined in clauses (1) and (2). The goals established
in paragraph (b) are effective no later than January 1, 2020:
new text end

new text begin (1) beginning January 1, 2018, each electric public utility shall have a plan to achieve
an energy-savings goal of 1.7 percent and by January 1, 2019, an energy-savings goal of
1.9 percent; and
new text end

new text begin (2) beginning January 1, 2018, each public natural gas utility subject to this section shall
have a plan to achieve an energy-savings goal of 1.2 percent and by January 1, 2019, an
energy-savings goal of 1.4 percent.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end In its energy conservation improvement plan filing, a utility or association may
request the commissioner to adjust its annual energy-savings percentage goal based on its
historical conservation investment experience, customer class makeup, load growth, a
conservation potential study, or other factors the commissioner determines warrants an
adjustment. The commissioner may not approve a plan of a public utility new text begin or association
providing electric service new text end that provides for an annual energy-savings goal of less than deleted text begin one deleted text end new text begin
1.5 new text end percent of gross annual retail energy sales from energy conservation improvements new text begin , and
not less than one percent gross annual retail energy sales from energy conservation
improvements from a utility providing natural gas service new text end .

deleted text begin A deleted text end new text begin An electric new text end utility or association may include in its energy conservation plan energy
savings from electric utility infrastructure projects approved by the commission under
section 216B.1636 new text begin , combined heat and power systems, new text end or waste heat recovery converted
into electricity projects that may count as energy savings in addition to a minimum
energy-savings goal of at least deleted text begin one deleted text end new text begin 1.5 new text end percent for energy conservation improvements.
Energy savings from electric utility infrastructure projects, as defined in section 216B.1636,
may be included in the energy conservation plan of a deleted text begin municipal utility or cooperative electric
association deleted text end new text begin public utility or association new text end . Electric utility infrastructure projects must result
in increased energy efficiency greater than that which would have occurred through normal
maintenance activity.

deleted text begin (e) deleted text end new text begin (f) new text end An energy-savings goal is not satisfied by attaining the revenue expenditure
requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
energy-savings goal established in this subdivision.

deleted text begin (f) deleted text end new text begin (g) new text end An association or utility is not required to make energy conservation investments
to attain the energy-savings goals of this subdivision that are not cost-effective even if the
investment is necessary to attain the energy-savings goals. For the purpose of this paragraph,
in determining cost-effectiveness, the commissioner shall consider the costs and benefits
to ratepayers, the utility, participants, and society. In addition, the commissioner shall
consider the rate at which an association or municipal utility is increasing its energy savings
and its expenditures on energy conservation.

deleted text begin (g) deleted text end new text begin (h) new text end On an annual basis, the commissioner shall produce and make publicly available
a report on the annual energy savings and estimated carbon dioxide reductions achieved by
the energy conservation improvement programs for the two most recent years for which
data is available. The commissioner shall report on program performance both in the
aggregate and for each entity filing an energy conservation improvement plan for approval
or review by the commissioner.

deleted text begin (h) By January 15, 2010, the commissioner shall report to the legislature whether the
spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.
deleted text end

Sec. 29.

Minnesota Statutes 2016, section 216B.241, subdivision 1d, is amended to read:

Subd. 1d.

Technical assistance.

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

deleted text begin (b) Of the assessment authorized under paragraph (a), the commissioner may expend
up to $400,000 annually for the purpose of developing, operating, maintaining, and providing
technical support for a uniform electronic data reporting and tracking system available to
all utilities subject to this section, in order to enable accurate measurement of the cost and
energy savings of the energy conservation improvements required by this section. This
paragraph expires June 30, 2017, and may be used for no more than three annual assessments
occurring prior to that date.
deleted text end

Sec. 30.

Minnesota Statutes 2016, section 216B.241, subdivision 3, is amended to read:

Subd. 3.

Ownership of energy conservation improvement.

An energy conservation
improvement made to or installed in a building in accordance with this section, except
systems owned by the utility and designed to turn off, limit, or vary the delivery of energy, new text begin
including combined heat and power systems, new text end are the exclusive property of the owner of the
building except to the extent that the improvement is subjected to a security interest in favor
of the utility in case of a loan to the building owner. The utility has no liability for loss,
damage or injury caused directly or indirectly by an energy conservation improvement
except for negligence by the utility in purchase, installation, or modification of the product.

Sec. 31.

Minnesota Statutes 2016, section 216B.241, subdivision 5a, is amended to read:

Subd. 5a.

Qualifying solar energy project.

(a) A utility or association may include in
its conservation plan programs for the installation of qualifying solar energy projects as
defined by section 216B.2411 to the extent of the spending allowed for generation projects
by section 216B.2411. The cost-effectiveness of a qualifying solar energy project may be
determined by a different standard than for other energy conservation improvements under
this section if the commissioner determines it is in the public interest to do so to encourage
solar energy projects. Energy savings from qualifying solar energy projects new text begin implemented
in electric public utility or association service territories new text end may not be counted toward the
minimum energy-savings goal of at least deleted text begin one deleted text end new text begin two new text end percent for energy conservation
improvements required under subdivision 1c, but may, if the conservation plan is approved:

(1) be counted toward energy savings above that minimum percentage; and

(2) be eligible for a performance incentive under section 216B.16, subdivision 6c, or
216B.241, subdivision 2c, that is distinct from the incentive for energy conservation and is
based on the competitiveness and cost-effectiveness of solar projects in relation to other
potential solar projects available to the utility.

(b) Qualifying solar energy projects may not be considered when establishing
demand-side management targets under section 216B.2422, 216B.243, or any other section
of this chapter.

Sec. 32.

Minnesota Statutes 2016, section 239.101, subdivision 2, is amended to read:

Subd. 2.

Weights and measures fees.

The director shall charge a fee to the owner for
inspecting and testing weights and measures, providing metrology services and consultation,
and providing petroleum quality assurance tests at the request of a licensed distributor.
Money collected by the director must be paid into the state treasury deleted text begin and deleted text end new text begin as follows: (1) ten
percent of metrology fees and 20 percent of all other fees must be credited to the petroleum
inspection fee account; and (2) the remainder must be new text end credited to the state general fund.

Sec. 33.

Minnesota Statutes 2016, section 332.30, is amended to read:

332.30 ACCELERATED MORTGAGE PAYMENT PROVIDER; BOND
REQUIREMENTS.

(a) Before beginning business in this state, an accelerated mortgage payment provider,
as defined in section 332A.02, subdivision 8, clause (9), shall submit to the commissioner
of commerce an authorization fee of deleted text begin $250 deleted text end new text begin $280 new text end and either:

(1) a surety bond in which the accelerated mortgage payment provider is the obligor, in
an amount determined by the commissioner; or

(2) if the commissioner agrees to accept it, a deposit:

(i) in cash in an amount equivalent to the bond amount; or

(ii) of authorized securities, as defined in section 50.14, with an aggregate market value
equal to the bond amount. The cash or securities must be deposited with the commissioner
of management and budget.

(b) The amount of the bond required by the commissioner shall vary with the amount
of Minnesota client funds held or to be held by the obligor. For new businesses, the bond
must be no less than $100,000, except as provided in section 332.301. The commissioner
may increase the required bond amount upon 30 days' notice to the accelerated mortgage
payment provider.

(c) If a bond is submitted, it must name as surety an insurance company authorized to
transact fidelity and surety business in this state. The bond must run to the state of Minnesota
for the use of the state and of any person who may have a claim against the obligor arising
out of the obligor's activities as an accelerated mortgage payment provider. The bond must
be conditioned that the obligor will not commit any fraudulent act and will faithfully conform
to and abide by the provisions of accelerated mortgage payment agreements with Minnesota
residents.

If an accelerated mortgage payment provider has failed to account to a mortgagor or
distribute funds to the mortgagee as required by an accelerated mortgage payment agreement,
the mortgagor or the mortgagor's legal representative or receiver or the commissioner shall
have, in addition to any other legal remedies, a right of action in the name of the debtor on
the bond or the security given pursuant to this section.

new text begin (d) An annual license fee of $280 must be submitted with the annual renewal in the
Nationwide Multi-State Licensing System.
new text end

Sec. 34.

Minnesota Statutes 2016, section 332.54, subdivision 7, is amended to read:

Subd. 7.

Fees.

The fee for a credit services organization's registration is deleted text begin $1,000 deleted text end new text begin $1,530 new text end
for issuance or renewal for each location of business.

Sec. 35.

Minnesota Statutes 2016, section 332A.06, is amended to read:

332A.06 RENEWAL OF REGISTRATION.

Each year, each registrant under the provisions of this chapter must, not more than 60
nor less than 30 days before its registration is to expire, apply to the commissioner for
renewal of its registration on a form prescribed by the commissioner. The application must
be signed by the registrant under penalty of perjury, contain current information on all
matters required in the original application, and be accompanied by a payment of deleted text begin $250 deleted text end new text begin
$530 new text end . The registrant must maintain a continuous surety bond that satisfies the requirements
of section 332A.04, subdivision 4, provided that the commissioner may require a different
amount that is at least equal to the largest amount that has accrued in the registrant's trust
account during the previous year. The renewal is effective for one year. The commissioner
may, for good cause shown, temporarily waive any requirement of this section.

Sec. 36.

Minnesota Statutes 2016, section 332B.04, subdivision 6, is amended to read:

Subd. 6.

Renewal of registration.

Each year, each registrant under the provisions of
this chapter must, not more than 60 nor less than 30 days before its registration is to expire,
apply to the commissioner for renewal of its registration on a form prescribed by the
commissioner. The application must be signed by the registrant under penalty of perjury,
contain current information on all matters required in the original application, and be
accompanied by a payment of deleted text begin $250 deleted text end new text begin $530 new text end . The registrant must maintain a continuous surety
bond that satisfies the requirements of section 332A.04, subdivision 4. The renewal is
effective for one year. The commissioner may, for good cause shown, temporarily waive
any requirement of this section.

Sec. 37. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Laws 2009, chapter 37, article 3, section 4, new text end new text begin is repealed retroactively from the day
following its final enactment.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2016, section 46.131, subdivision 5, new text end new text begin is repealed.
new text end

ARTICLE 3

DEPARTMENT OF LABOR AND INDUSTRY

Section 1.

Minnesota Statutes 2016, section 175.45, is amended to read:

175.45 deleted text begin COMPETENCY deleted text end STANDARDS FOR DUAL TRAINING.

Subdivision 1.

Duties; goal.

The commissioner of labor and industry shall new text begin convene
industry representatives, new text end identify new text begin occupational new text end competency standards deleted text begin for dual training deleted text end new text begin , and
provide technical assistance to develop dual-training programs new text end . deleted text begin The goal of dual training
is to provide employees of an employer with training to acquire competencies that the
employer requires. deleted text end The new text begin competency new text end standards shall be identified for employment in
occupations in advanced manufacturing, health care services, information technology, and
agriculture. Competency standards are not rules and are exempt from the rulemaking
provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do
not apply.

Subd. 2.

deleted text begin Definition; competency standards deleted text end new text begin Definitions new text end .

For purposes of this section,
new text begin the following terms have the meanings given them:
new text end

new text begin (1) new text end "competency standards" means the specific knowledge and skills necessary for a
particular occupation deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) "dual-training program" means an employment-based earn-as-you-learn program
where the trainee is employed by a participating employer and receives structured on-the-job
training and technical instruction in accordance with the competency standards.
new text end

Subd. 3.

Competency standards identification process.

In identifying competency
standards, the commissioner shall consult with the commissioner of the Office of Higher
Education and the commissioner of employment and economic development and convene
recognized industry experts, representative employers, higher education institutions,
representatives of the disabled community, and representatives of labor to assist in identifying
credible competency standards. Competency standards must be consistent with, to the extent
available and practical, recognized international and national standards.

Subd. 4.

Duties.

The commissioner shall:

(1) new text begin convene industry representatives to identify, develop, and implement dual-training
programs;
new text end

new text begin (2) new text end identify competency standards for deleted text begin entry level deleted text end new text begin entry-level new text end and higher skill levels;

deleted text begin (2) deleted text end new text begin (3) new text end verify the competency standards and skill levels and their transferability by subject
matter expert representatives of each respective industry;

deleted text begin (3) deleted text end new text begin (4) new text end develop models for Minnesota educational institutions to engage in providing
education and training to meet the competency standards established;

deleted text begin (4) deleted text end new text begin (5) new text end encourage participation by employers and labor in the new text begin competency new text end standard
identification process for occupations in their industry; deleted text begin and
deleted text end

deleted text begin (5) deleted text end new text begin (6) new text end align deleted text begin dual training competency standards deleted text end new text begin dual-training programs new text end with other
workforce initiatives deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) provide technical assistance to develop dual-training programs.
new text end

Subd. 5.

Notification.

The commissioner must communicate identified competency
standards to the commissioner of the Office of Higher Education for the purpose of the deleted text begin dual
training deleted text end new text begin dual-training new text end competency grant program under section 136A.246. The commissioner
of labor and industry shall maintain the competency standards on the department's Web
site.

Sec. 2.

Minnesota Statutes 2016, section 177.27, subdivision 2, is amended to read:

Subd. 2.

Submission of records; penalty.

The commissioner may require the employer
of employees working in the state to submit to the commissioner photocopies, certified
copies, or, if necessary, the originals of employment records which the commissioner deems
necessary or appropriate. The records which may be required include full and correct
statements in writing, including sworn statements by the employer, containing information
relating to wages, hours, names, addresses, and any other information pertaining to the
employer's employees and the conditions of their employment as the commissioner deems
necessary or appropriate.

The commissioner may require the records to be submitted new text begin in a specific format new text end by
certified mail delivery or, if necessary, by personal delivery by the employer or a
representative of the employer, as authorized by the employer in writing.

The commissioner may fine the employer up to deleted text begin $1,000 deleted text end new text begin $10,000 new text end for each failure to submit
or deliver records as required by this section. This penalty is in addition to any penalties
provided under section 177.32, subdivision 1. In determining the amount of a civil penalty
under this subdivision, the appropriateness of such penalty to the size of the employer's
business and the gravity of the violation shall be considered.

Sec. 3.

Minnesota Statutes 2016, section 177.27, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Subpoenas. new text end

new text begin In order to carry out the purposes of this section, the commissioner
may issue subpoenas to compel persons to appear before the commissioner to give testimony
and produce documents, apparatus, devices, equipment, or materials. Upon the application
of the commissioner, a district court shall treat the failure of any person to obey a subpoena
lawfully issued by the commissioner under this subdivision as a contempt of court.
new text end

Sec. 4.

Minnesota Statutes 2016, section 177.30, is amended to read:

177.30 KEEPING RECORDS; PENALTY.

(a) Every employer subject to sections 177.21 to 177.44 must make and keep a record
of:

(1) the name, address, and occupation of each employee;

(2) the rate of pay, and the amount paid each pay period to each employee new text begin , including
whether each employee is paid by the hour, shift, day, week, salary, piece, commission, or
other new text end ;

(3) the hours worked each day and each workweek by the employee new text begin , including for all
employees paid at piece rate, the number of pieces completed at each piece rate new text end ;

(4) new text begin any personnel policies provided to employees;
new text end

new text begin (5) a copy of the notice provided to each employee as required by section 181.032, clause
(d);
new text end

new text begin (6) new text end for each employer subject to sections 177.41 to 177.44, and while performing work
on public works projects funded in whole or in part with state funds, the employer shall
furnish under oath signed by an owner or officer of an employer to the contracting authority
and the project owner every two weeks, a certified payroll report with respect to the wages
and benefits paid each employee during the preceding weeks specifying for each employee:
name; identifying number; prevailing wage master job classification; hours worked each
day; total hours; rate of pay; gross amount earned; each deduction for taxes; total deductions;
net pay for week; dollars contributed per hour for each benefit, including name and address
of administrator; benefit account number; and telephone number for health and welfare,
vacation or holiday, apprenticeship training, pension, and other benefit programs; and

deleted text begin (5) deleted text end new text begin (7) new text end other information the commissioner finds necessary and appropriate to enforce
sections 177.21 to 177.435. The records must be kept for three years in deleted text begin or near deleted text end the premises
where an employee works except each employer subject to sections 177.41 to 177.44, and
while performing work on public works projects funded in whole or in part with state funds,
the records must be kept for three years after the contracting authority has made final payment
on the public works project.

(b) new text begin All records required to be kept under paragraph (a) must be readily available for
inspection by the commissioner on the premises of employment during reasonable office
hours under section 177.27, subdivision 1.
new text end

new text begin (c) new text end The commissioner may fine an employer up to deleted text begin $1,000 deleted text end new text begin $10,000 new text end for each failure to
maintain records as required by this section. This penalty is in addition to any penalties
provided under section 177.32, subdivision 1. In determining the amount of a civil penalty
under this subdivision, the appropriateness of such penalty to the size of the employer's
business and the gravity of the violation shall be considered.

Sec. 5.

Minnesota Statutes 2016, section 177.32, subdivision 1, is amended to read:

Subdivision 1.

Misdemeanors.

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

(1) hinders or delays the commissioner in the performance of duties required under
sections 177.21 to 177.435;

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

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

(4) falsifies any record;

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

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

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

(8) refuses to allow adequate time from work as required by section 177.253; or

(9) otherwise violates any provision of sections 177.21 to 177.44.

new text begin (b) An employer is guilty of a gross misdemeanor if the employer fails to pay any wages
due to an employee or employees under sections 177.21 to 177.44, and the total of any such
wages in relation to all affected employees is $10,000 or more.
new text end

Sec. 6.

Minnesota Statutes 2016, section 181.03, subdivision 1, is amended to read:

Subdivision 1.

Prohibited practices.

deleted text begin An employer may not, directly or indirectly and
with intent to defraud: deleted text end new text begin (a) No employer shall commit wage theft.
new text end

new text begin (b) For purposes of this section, wage theft is committed if:
new text end

(1) deleted text begin cause deleted text end new text begin an employer has failed to pay an employee all wages to which that employee
is entitled;
new text end

new text begin (2) an employer directly or indirectly causes new text end any employee to give a receipt for wages
for a greater amount than that actually paid to the employee for services rendered;

deleted text begin (2) deleted text end new text begin (3) an employer new text end directly or indirectly deleted text begin demand deleted text end new text begin demands new text end or deleted text begin receive deleted text end new text begin receives new text end from any
employee any rebate or refund from the wages owed the employee under contract of
employment with the employer; deleted text begin or
deleted text end

deleted text begin (3) deleted text end new text begin (4) an employer new text end in any manner deleted text begin make deleted text end new text begin makes new text end or deleted text begin attempt deleted text end new text begin attempts new text end to make it appear
that the wages paid to any employee were greater than the amount actually paid to the
employee deleted text begin . deleted text end new text begin ; or
new text end

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

Sec. 7.

Minnesota Statutes 2016, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Enforcement. new text end

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

Sec. 8.

Minnesota Statutes 2016, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Citations. new text end

new text begin The commissioner may issue a citation for failure to pay wages of
up to $1,000 by serving the citation on the employer. The citation shall direct the employer
to pay to the commissioner any back pay, gratuities, and compensatory damages owed to
the employee within 15 days. The citation may require the employer to correct the violation,
may require the employer to cease and desist from committing the violation, and may assess
a monetary penalty of up to $1,000. In determining the amount of the monetary penalty,
the commissioner shall consider the factors described in section 14.045, subdivision 3. If
the citation includes a penalty assessment, then the penalty is due and payable on the date
the citation becomes final. The commissioner shall vacate the citation if: (1) before the
citation was issued, the employer paid to the employee the back pay, gratuities, and
compensatory damages specified in the citation; and (2) within the five days after the citation
is issued, the employer provides to the commissioner evidence acceptable to the
commissioner that the employer made the payment described in clause (1).
new text end

Sec. 9.

Minnesota Statutes 2016, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Administrative review. new text end

new text begin (a) Within 15 days after the commissioner issues a
citation under subdivision 5, the employer to whom the citation is issued may request an
expedited hearing to review the citation. The request for hearing must be in writing and
must be served on the commissioner at the address specified in the citation. If the employer
does not request a hearing or if the employer's written request for hearing is not served on
the commissioner by the 15th day after the commissioner issues the citation, the citation
becomes a final order of the commissioner and is not subject to review by any court or
agency. The hearing request must state the reasons for seeking review of the citation. The
employer to whom the citation is issued and the commissioner are the parties to the expedited
hearing. The commissioner must notify the employer to whom the citation is issued of the
time and place of the hearing at least 15 days before the hearing. The hearing shall be
conducted under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this
section. If a hearing has been held, the commissioner shall not issue a final order until at
least five days after the date of the administrative law judge's report. Any person aggrieved
by the administrative law judge's report may, within those five days, serve written comments
to the commissioner on the report and the commissioner shall consider and enter the
comments in the record. The commissioner's final order shall comply with sections 14.61,
subdivision 2, and 14.62, subdivisions 1 and 2a, and may be appealed in the manner provided
in sections 14.63 to 14.69.
new text end

new text begin (b) When an employer to whom a citation under subdivision 5 was issued requests an
expedited hearing under paragraph (a), the employer is presumed to have committed each
violation listed in the citation. The employer to whom the citation was issued may rebut
this presumption by showing that the employer did not commit the violation.
new text end

Sec. 10.

Minnesota Statutes 2016, section 181.03, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Effect on other laws. new text end

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

Sec. 11.

Minnesota Statutes 2016, section 181.032, is amended to read:

181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER new text begin ; NOTICE
TO EMPLOYEE new text end .

(a) At the end of each pay period, the employer shall provide each employee an earnings
statement, either in writing or by electronic means, covering that pay period. An employer
who chooses to provide an earnings statement by electronic means must provide employee
access to an employer-owned computer during an employee's regular working hours to
review and print earnings statements.

(b) The earnings statement may be in any form determined by the employer but must
include:

(1) the name of the employee;

(2) the deleted text begin hourly deleted text end rate new text begin or rates new text end of pay deleted text begin (if applicable) deleted text end new text begin and basis thereof, including whether
the employee is paid by hour, shift, day, week, salary, piece, commission, or other method new text end ;

(3) new text begin allowances, if any, claimed pursuant to permitted meals and lodging;
new text end

new text begin (4) new text end the total number of hours worked by the employee unless exempt from chapter 177;

deleted text begin (4) deleted text end new text begin (5) new text end the total amount of gross pay earned by the employee during that period;

deleted text begin (5) deleted text end new text begin (6) new text end a list of deductions made from the employee's pay;

deleted text begin (6) deleted text end new text begin (7) new text end the net amount of pay after all deductions are made;

deleted text begin (7) deleted text end new text begin (8) new text end the date on which the pay period ends; deleted text begin and
deleted text end

deleted text begin (8) deleted text end new text begin (9) new text end the legal name of the employer and the operating name of the employer if different
from the legal name deleted text begin . deleted text end new text begin ;
new text end

new text begin (10) the physical address of the employer's main office or principal place of business,
and a mailing address if different; and
new text end

new text begin (11) the telephone number of the employer.
new text end

(c) An employer must provide earnings statements to an employee in writing, rather
than by electronic means, if the employer has received at least 24 hours notice from an
employee that the employee would like to receive earnings statements in written form. Once
an employer has received notice from an employee that the employee would like to receive
earnings statements in written form, the employer must comply with that request on an
ongoing basis.

new text begin (d) At the start of employment, an employer shall provide each employee a written notice
containing the following information:
new text end

new text begin (1) the rate or rates of pay and basis thereof, including whether the employee is paid by
the hour, shift, day, week, salary, piece, commission, or other method;
new text end

new text begin (2) allowances, if any, claimed pursuant to permitted meals and lodging;
new text end

new text begin (3) paid vacation, sick time, or other paid time off accruals and terms of use;
new text end

new text begin (4) whether the employee is exempt from minimum wage, overtime, and other provisions
of chapter 177, and on what basis;
new text end

new text begin (5) a list of deductions that may be made from the employee's pay;
new text end

new text begin (6) the dates on which the pay periods start and end and the regularly scheduled payday;
new text end

new text begin (7) the legal name of the employer and the operating name of the employer if different
from the legal name;
new text end

new text begin (8) the physical address of the employer's main office or principal place of business, and
a mailing address if different; and
new text end

new text begin (9) the telephone number of the employer.
new text end

new text begin (e) The employer must keep a copy of the notice under paragraph (d) signed by each
employee acknowledging receipt of the notice. The notice must be provided to each employee
in English and in the employee's native language.
new text end

new text begin (f) An employer must provide the employee any written changes to the information
contained in the notice under paragraph (d) at least seven calendar days prior to the time
the changes take effect. The changes must be signed by the employee before the changes
go into effect. The employer must keep a signed copy of all notice of changes as well as
the initial notices under paragraph (d).
new text end

Sec. 12.

Minnesota Statutes 2016, section 181.101, is amended to read:

181.101 WAGES; HOW OFTEN PAID.

(a) Except as provided in paragraph (b), every employer must pay all wages earned by
an employee at least once every deleted text begin 31 deleted text end new text begin 16 new text end days on a regular payday designated in advance by
the employer regardless of whether the employee requests payment at longer intervals.
deleted text begin Unless paid earlier, the wages earned during the first half of the first 31-day pay period
become due on the first regular payday following the first day of work. deleted text end new text begin Payment for the
first day of work must be received no later than the first regular payday after the first 16
calendar days of employment or within 31 calendar days of the first day of employment,
whichever comes first. new text end If wages earned are not paid, the commissioner of labor and industry
or the commissioner's representative may demand payment on behalf of an employee. If
payment is not made within deleted text begin ten deleted text end new text begin five new text end days of demand, the commissioner may charge and
collect the wages earned and a penalty in the amount of the employee's average daily earnings
at the rate agreed upon in the contract of employment, not exceeding 15 days in all, for each
day beyond the deleted text begin ten-day deleted text end new text begin five-day new text end limit following the demand. Money collected by the
commissioner must be paid to the employee concerned. This section does not prevent an
employee from prosecuting a claim for wages. This section does not prevent a school district,
other public school entity, or other school, as defined under section 120A.22, from paying
any wages earned by its employees during a school year on regular paydays in the manner
provided by an applicable contract or collective bargaining agreement, or a personnel policy
adopted by the governing board. For purposes of this section, "employee" includes a person
who performs agricultural labor as defined in section 181.85, subdivision 2. For purposes
of this section, wages are earned on the day an employee works.

(b) An employer of a volunteer firefighter, as defined in section 424A.001, subdivision
10, a member of an organized first responder squad that is formally recognized by a political
subdivision in the state, or a volunteer ambulance driver or attendant must pay all wages
earned by the volunteer firefighter, first responder, or volunteer ambulance driver or attendant
at least once every 31 days, unless the employer and the employee mutually agree upon
payment at longer intervals.

Sec. 13.

Minnesota Statutes 2016, 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 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.

(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
	Entry level	$10	$20
	Journeyworker	$20	$40
	Master	$40	$80
	Business		$180

(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.

(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925,
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; and $8 if
the license duration is two 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, deleted text begin 2015 deleted text end new text begin 2017 new text end , through deleted text begin June 30, 2017 deleted text end new text begin September 30, 2021 new text end , the following fees apply:

	License Classification	License Duration
		1 year	2 years
	Entry level	$10	$20
	Journeyworker	$15	deleted text begin $35 deleted text end new text begin $30 new text end
	Master	$30	deleted text begin $75 deleted text end new text begin $60 new text end
	Business		deleted text begin $160 deleted text end new text begin $120 new text end

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. 14.

new text begin [326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO
CODE.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "place of public accommodation"
means a publicly or privately owned facility that is designed for occupancy by 200 or more
people and includes a sports or entertainment arena, stadium, theater, community or
convention hall, special event center, indoor amusement facility or water park, or swimming
pool.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin Construction, additions, and alterations to a place of public
accommodation must be designed and constructed to comply with the State Building Code.
new text end

new text begin Subd. 3. new text end

new text begin Enforcement. new text end

new text begin In a municipality that has not adopted the code by ordinance
under section 326B.121, subdivision 2, the commissioner shall enforce this section in
accordance with section 326B.107, subdivision 1.
new text end

Sec. 15.

Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:

Subdivision 1.

Building permits.

(a) Fees for building permits submitted as required
in section deleted text begin 326B.106 deleted text end new text begin 326B.107 new text end include:

(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality;
and

(2) the surcharge required by section 326B.148.

(b) The total valuation and fee schedule is:

(1) $1 to $500, deleted text begin $29.50 deleted text end new text begin $21 new text end ;

(2) $501 to $2,000, deleted text begin $28 deleted text end new text begin $21 new text end for the first $500 plus deleted text begin $3.70 deleted text end new text begin $2.75 new text end for each additional $100
or fraction thereof, to and including $2,000;

(3) $2,001 to $25,000, deleted text begin $83.50 deleted text end new text begin $62.25 new text end for the first $2,000 plus deleted text begin $16.55 deleted text end new text begin $12.50 new text end for each
additional $1,000 or fraction thereof, to and including $25,000;

(4) $25,001 to $50,000, deleted text begin $464.15 deleted text end new text begin $349.75 new text end for the first $25,000 plus deleted text begin $12 deleted text end new text begin $9 new text end for each
additional $1,000 or fraction thereof, to and including $50,000;

(5) $50,001 to $100,000, deleted text begin $764.15 deleted text end new text begin $574.75 new text end for the first $50,000 plus deleted text begin $8.45 deleted text end new text begin $6.25 new text end for
each additional $1,000 or fraction thereof, to and including $100,000;

(6) $100,001 to $500,000, deleted text begin $1,186.65 deleted text end new text begin $887.25 new text end for the first $100,000 plus deleted text begin $6.75 deleted text end new text begin $5 new text end for
each additional $1,000 or fraction thereof, to and including $500,000;

(7) $500,001 to $1,000,000, deleted text begin $3,886.65 deleted text end new text begin $2,887.25 new text end for the first $500,000 plus deleted text begin $5.50 deleted text end new text begin $4.25 new text end
for each additional $1,000 or fraction thereof, to and including $1,000,000; and

(8) $1,000,001 and up, deleted text begin $6,636.65 deleted text end new text begin $5,012.25 new text end for the first $1,000,000 plus deleted text begin $4.50 deleted text end new text begin $2.75 new text end
for each additional $1,000 or fraction thereof.

(c) Other inspections and fees are:

(1) inspections outside of normal business hours (minimum charge two hours), $63.25
per hour;

(2) reinspection fees, $63.25 per hour;

(3) inspections for which no fee is specifically indicated (minimum charge one-half
hour), $63.25 per hour; and

(4) additional plan review required by changes, additions, or revisions to approved plans
(minimum charge one-half hour), $63.25 per hour.

(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25,
then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment,
hourly wages, and fringe benefits of the employees involved.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective
July 1, 2017, and the amendments to it expire October 1, 2021.
new text end

Sec. 16.

Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Wind electric systems. new text end

new text begin (a) The inspection fee for the installation of a wind
turbine is:
new text end

new text begin (1) 0 watts to and including 100,000 watts, $80;
new text end

new text begin (2) 100,001 watts to and including 500,000 watts, $105;
new text end

new text begin (3) 500,001 watts to and including 1,000,000 watts, $120;
new text end

new text begin (4) 1,000,001 watts to and including 1,500,000 watts, $125;
new text end

new text begin (5) 1,500,001 watts to and including 2,000,000 watts, $130;
new text end

new text begin (6) 2,000,001 watts to and including 3,000,000 watts, $145; and
new text end

new text begin (7) 3,000,001 watts and larger, $160.
new text end

new text begin (b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
current energy output of one individual wind turbine.
new text end

Sec. 17.

Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Solar photovoltaic systems. new text end

new text begin (a) The inspection fee for the installation of a
solar photovoltaic system is:
new text end

new text begin (1) 0 watts to and including 5,000 watts, $60;
new text end

new text begin (2) 5,001 watts to and including 10,000 watts, $100;
new text end

new text begin (3) 10,001 watts to and including 20,000 watts, $150;
new text end

new text begin (4) 20,001 watts to and including 30,000 watts, $200;
new text end

new text begin (5) 30,001 watts to and including 40,000 watts, $250;
new text end

new text begin (6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional
10,000 watts over 40,000 watts;
new text end

new text begin (7) 1,000,000 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts
over 1,000,000 watts; and
new text end

new text begin (8) 5,000,000 watts and larger, $8,650, and $10 for each additional 10,000 watts over
5,000,000 watts.
new text end

new text begin (b) For the purpose of paragraph (a), the watt rating is the total estimated alternating
current energy output of the solar photovoltaic system.
new text end

Sec. 18.

Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Gross annual receipts" means the total amount derived from residential contracting
or residential remodeling activities, regardless of where the activities are performed, and
must not be reduced by costs of goods sold, expenses, losses, or any other amount.

(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.

(d) "Residential real estate" means a new or existing building constructed for habitation
by one to four families, and includes detached garages new text begin intended for storage of vehicles
associated with the residential real estate new text end .

(e) "Fund" means the contractor recovery fund.

(f) "Owner" when used in connection with real property, means a person who has any
legal or equitable interest in real property and includes a condominium or townhome
association that owns common property located in a condominium building or townhome
building or an associated detached garage. Owner does not include any real estate developer
or any owner using, or intending to use, the property for a business purpose and not as
owner-occupied residential real estate.

Sec. 19.

Minnesota Statutes 2016, section 326B.89, subdivision 5, is amended to read:

Subd. 5.

Payment limitations.

The commissioner shall not pay compensation from the
fund to an owner or a lessee in an amount greater than $75,000 per licensee. The
commissioner shall not pay compensation from the fund to owners and lessees in an amount
that totals more than deleted text begin $150,000 deleted text end new text begin $300,000 new text end per licensee. The commissioner shall only pay
compensation from the fund for a final judgment that is based on a contract directly between
the licensee and the homeowner or lessee that was entered into prior to the cause of action
and that requires licensure as a residential building contractor or residential remodeler.

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 326B.89, subdivision 14, new text end new text begin is repealed.
new text end

ARTICLE 4

DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2016, section 116J.8731, subdivision 2, is amended to read:

Subd. 2.

Administration.

new text begin (a) new text end Except as otherwise provided in this section, the
commissioner shall administer the fund as part of the Small Cities Development Block
Grant Program and funds shall be made available to local communities and recognized
Indian tribal governments in accordance with the rules adopted for economic development
grants in the small cities community development block grant program. All units of general
purpose local government are eligible applicants for Minnesota investment funds. The
commissioner may provide forgivable loans directly to a private enterprise and not require
a local community or recognized Indian tribal government application other than a resolution
supporting the assistance.

new text begin (b) new text end Eligible applicants for the state-funded portion of the fund also include development
authorities as defined in section 116J.552, subdivision 4, provided that the governing body
of the municipality approves, by resolution, the application of the development authority.
new text begin A local government entity may receive more than one award in a fiscal year. new text end The
commissioner may also make funds available within the department for eligible expenditures
under subdivision 3, clause (2).

new text begin (c) new text end A home rule charter or statutory city, county, or town may loan or grant money
received from repayment of funds awarded under this section to a regional development
commission, other regional entity, or statewide community capital fund as determined by
the commissioner, to capitalize or to provide the local match required for capitalization of
a regional or statewide revolving loan fund. new text begin Any repayment of funds to a local entity under
this section may be used for purposes noted in section 116J.407 and for other economic
development purposes including loans to businesses in any industry and community
development planning, and the local entity is not limited by the provisions in this section.
new text end

Sec. 2.

Minnesota Statutes 2016, section 116J.8731, subdivision 5, is amended to read:

Subd. 5.

Grant limits.

A Minnesota investment fund grant may not be approved for an
amount in excess of $1,000,000. This limit covers all money paid to complete the same
project, whether paid to one or more grant recipients and whether paid in one or more fiscal
years. A local community or recognized Indian tribal government may retain 40 percent,
but not more than $100,000, of a Minnesota investment fund grant when it is repaid to the
local community or recognized Indian tribal government by the person or entity to which
it was loaned by the local community or Indian tribal government. Money repaid to the state
must be credited to a Minnesota investment revolving loan account in the state treasury.
Funds in the account are appropriated to the commissioner and must be used in the same
manner as are funds appropriated to the Minnesota investment fund. Funds repaid to the
state through existing Minnesota investment fund agreements must be credited to the
Minnesota investment revolving loan account effective July 1, 2005. A grant or loan may
not be made to a person or entity for the operation or expansion of a casino or a store which
is used solely or principally for retail sales. Persons or entities receiving grants or loans
must pay each employee total compensation, including benefits not mandated by law, that
on an annualized basis is equal to at least 110 percent of the federal poverty level for a
family of four. new text begin $2,000,000 of each year's annual appropriation, but no more than 50 percent
of the appropriation, must be allocated to Minnesota businesses owned by minorities,
veterans, women, or persons with a disability. Any unused portion is available for all other
businesses beginning on January 1.
new text end

Sec. 3.

Minnesota Statutes 2016, section 116J.8731, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Transfer. new text end

new text begin The commissioner may transfer up to $2,000,000 of a fiscal year's
appropriation between the Minnesota job creation fund program and Minnesota investment
fund to meet business demand.
new text end

Sec. 4.

Minnesota Statutes 2016, section 116J.8748, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement
under section 116J.994 that must include, but is not limited to: specification of the duration
of the agreement, job goals and a timeline for achieving those goals over the duration of
the agreement, construction and other investment goals and a timeline for achieving those
goals over the duration of the agreement, and the value of benefits the firm may receive
following achievement of capital investment and employment goals. The local government
and business must report to the commissioner on the business performance using the forms
developed by the commissioner.

(c) "Business" means an individual, corporation, partnership, limited liability company,
association, or other entity.

(d) "Capital investment" means money that is expended for the purpose of building or
improving real fixed property where employees under paragraphs (g) and (h) are or will be
employed and also includes construction materials, services, and supplies, and the purchase
and installation of equipment and machinery as provided under subdivision 4, paragraph
(b), clause (5).

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

(f) "Minnesota job creation fund business" means a business that is designated by the
commissioner under subdivision 3.

new text begin (g) "Minority person" means a person belonging to a racial or ethnic minority as defined
in Code of Federal Regulations, title 49, section 23.5.
new text end

deleted text begin (g) deleted text end new text begin (h) new text end "New full-time employee" means an employee who:

(1) begins work at a Minnesota job creation fund business facility noted in a business
subsidy agreement and following the designation as a job creation fund business; and

(2) has expected work hours of at least 2,080 hours annually.

new text begin (i) "Persons with disabilities" means an individual with a disability, as defined under
the Americans with Disabilities Act, United States Code, title 42, section 12102.
new text end

deleted text begin (h) deleted text end new text begin (j) new text end "Retained job" means a full-time position:

(1) that existed at the facility prior to the designation as a job creation fund business;
and

(2) has expected work hours of at least 2,080 hours annually.

new text begin (k) "Veteran" means a veteran as defined in section 197.447.
new text end

deleted text begin (i) deleted text end new text begin (l) new text end "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).

Sec. 5.

Minnesota Statutes 2016, section 116J.8748, subdivision 3, is amended to read:

Subd. 3.

Minnesota job creation fund business designation; requirements.

(a) To
receive designation as a Minnesota job creation fund business, a business must satisfy all
of the following conditions:

(1) the business is or will be engaged in, within Minnesota, one of the following as its
primary business activity:

(i) manufacturing;

(ii) warehousing;

(iii) distribution;

(iv) information technology;

(v) finance;

(vi) insurance; or

(vii) professional or technical services;

(2) the business must not be primarily engaged in lobbying; gambling; entertainment;
professional sports; political consulting; leisure; hospitality; or professional services provided
by attorneys, accountants, business consultants, physicians, or health care consultants, or
primarily engaged in making retail sales to purchasers who are physically present at the
business's location;

(3) the business must enter into a binding construction and job creation business subsidy
agreement with the commissioner to expend new text begin directly, or ensure expenditure by or in
partnership with a third party constructing or managing the project, new text end at least $500,000 in
capital investment in a capital investment project that includes a new, expanded, or remodeled
facility within one year following designation as a Minnesota job creation fund business new text begin or
$250,000 if the project is located outside the metropolitan area as defined in section 200.02,
subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans,
women, or persons with a disability; new text end and:

(i) create at least ten new full-time employee positions within two years of the benefit
date following the designation as a Minnesota job creation fund business new text begin or five new full-time
employee positions within two years of the benefit date if the project is located outside the
metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business
is cumulatively owned by minorities, veterans, women, or persons with a disability new text end ; or

(ii) expend at least $25,000,000, which may include the installation and purchase of
machinery and equipment, in capital investment and retain at least 200 employees for projects
located in the metropolitan area as defined in section 200.02, subdivision 24, and 75
employees for projects located outside the metropolitan area;

(4) positions or employees moved or relocated from another Minnesota location of the
Minnesota job creation fund business must not be included in any calculation or determination
of job creation or new positions under this paragraph; and

(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the
working hours of an employee for the purpose of hiring an individual to satisfy job creation
goals under this subdivision.

(b) Prior to approving the proposed designation of a business under this subdivision, the
commissioner shall consider the following:

(1) the economic outlook of the industry in which the business engages;

(2) the projected sales of the business that will be generated from outside the state of
Minnesota;

(3) how the business will build on existing regional, national, and international strengths
to diversify the state's economy;

(4) whether the business activity would occur without financial assistance;

(5) whether the business is unable to expand at an existing Minnesota operation due to
facility or land limitations;

(6) whether the business has viable location options outside Minnesota;

(7) the effect of financial assistance on industry competitors in Minnesota;

(8) financial contributions to the project made by local governments; and

(9) any other criteria the commissioner deems necessary.

(c) Upon receiving notification of local approval under subdivision 2, the commissioner
shall review the determination by the local government and consider the conditions listed
in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local
area to designate a business as a Minnesota job creation fund business.

(d) If the commissioner designates a business as a Minnesota job creation fund business,
the business subsidy agreement shall include the performance outcome commitments and
the expected financial value of any Minnesota job creation fund benefits.

(e) The commissioner may amend an agreement once, upon request of a local government
on behalf of a business, only if the performance is expected to exceed thresholds stated in
the original agreement.

(f) A business may apply to be designated as a Minnesota job creation fund business at
the same location more than once only if all goals under a previous Minnesota job creation
fund agreement have been met and the agreement is completed.

Sec. 6.

Minnesota Statutes 2016, section 116J.8748, subdivision 4, is amended to read:

Subd. 4.

Certification; benefits.

(a) The commissioner may certify a Minnesota job
creation fund business as eligible to receive a specific value of benefit under paragraphs (b)
and (c) when the business has achieved its job creation and capital investment goals noted
in its agreement under subdivision 3.

(b) A qualified Minnesota job creation fund business may be certified eligible for the
benefits in this paragraph for up to five years for projects located in the metropolitan area
as defined in section 200.02, subdivision 24, and seven years for projects located outside
the metropolitan area, as determined by the commissioner when considering the best interests
of the state and local area. new text begin Notwithstanding section 16B.98, subdivision 5, paragraph (a),
clause (3), or section 16B.98, subdivision 5, paragraph (b), grant agreements for projects
located outside the metropolitan area may be for up to seven years in length. new text end The eligibility
for the following benefits begins the date the commissioner certifies the business as a
qualified Minnesota job creation fund business under this subdivision:

(1) up to five percent rebate for projects located in the metropolitan area as defined in
section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan
area, on capital investment on qualifying purchases as provided in subdivision 5 with the
total rebate for a project not to exceed $500,000;

(2) an award of up to $500,000 based on full-time job creation and wages paid as provided
in subdivision 6 with the total award not to exceed $500,000;

(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards
are allowable for projects that have at least $25,000,000 in capital investment and 200 new
employees new text begin in the metropolitan area as defined in section 200.02, subdivision 24, and 75
new employees for projects located outside the metropolitan area new text end ;

(4) up to $1,000,000 in capital investment rebates are allowable for projects that have
at least $25,000,000 in capital investment and 200 retained employees for projects located
in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for
projects located outside the metropolitan area; and

(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
include the installation and purchases of machinery and equipment. These expenditures are
not eligible for the capital investment rebate provided under subdivision 5.

(c) The job creation award may be provided in multiple years as long as the qualified
Minnesota job creation fund business continues to meet the job creation goals provided for
in its agreement under subdivision 3 and the total award does not exceed $500,000 except
as provided under paragraph (b), clauses (3) and (4).

(d) No rebates or award may be provided until the Minnesota job creation fund business
new text begin or a third party constructing or managing the project new text end has at least $500,000 in capital
investment in the project and at least ten full-time jobs have been created and maintained
for at least one year or the retained employees, as provided in paragraph (b), clause (4),
remain for at least one year. The agreement may require additional performance outcomes
that need to be achieved before rebates and awards are provided. If fewer retained jobs are
maintained, but still above the minimum under this subdivision, the capital investment
award shall be reduced on a proportionate basis.

(e) The forms needed to be submitted to document performance by the Minnesota job
creation fund business must be in the form and be made under the procedures specified by
the commissioner. The forms shall include documentation and certification by the business
that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66,
and other provisions as specified by the commissioner.

(f) Minnesota job creation fund businesses must pay each new full-time employee added
pursuant to the agreement total compensation, including benefits not mandated by law, that
on an annualized basis is equal to at least 110 percent of the federal poverty level for a
family of four.

(g) A Minnesota job creation fund business must demonstrate reasonable progress on
deleted text begin its deleted text end capital investment expenditures within six months following designation as a Minnesota
job creation fund business to ensure that the capital investment goal in the agreement under
subdivision 1 will be met. Businesses not making reasonable progress will not be eligible
for benefits under the submitted application and will need to work with the local government
unit to resubmit a new application and request to be a Minnesota job creation fund business.
Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not
be considered a default of the business subsidy agreement.

Sec. 7.

Minnesota Statutes 2016, section 116J.8748, subdivision 6, is amended to read:

Subd. 6.

Job creation award.

(a) A qualified Minnesota job creation fund business is
eligible for an annual award for each new job created and maintained by the business using
the following schedule: $1,000 for each job position paying annual wages at least $26,000
but less than $35,000; $2,000 for each job position paying at least $35,000 but less than
$45,000; and $3,000 for each job position paying at least $45,000; and as noted in the goals
under the agreement provided under subdivision 1. new text begin These awards are increased by $1,000
if the business is located outside the metropolitan area as defined in section 200.02,
subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans,
women, or persons with a disability.
new text end

(b) The job creation award schedule must be adjusted annually using the percentage
increase in the federal poverty level for a family of four.

(c) Minnesota job creation fund businesses seeking an award credit provided under
subdivision 4 must submit forms and applications to the Department of Employment and
Economic Development as prescribed by the commissioner.

Sec. 8.

Minnesota Statutes 2016, section 116L.665, is amended to read:

116L.665 WORKFORCE DEVELOPMENT deleted text begin COUNCIL deleted text end new text begin BOARD new text end .

Subdivision 1.

Creation.

The governor's Workforce Development deleted text begin Council is created
under the authority of the Workforce Investment Act, United States Code, title 29, section
2801, et seq. Local workforce development councils are authorized under the Workforce
Investment Act. The governor's Workforce Development Council serves as Minnesota's
Workforce Investment Board for the purposes of the federal Workforce Investment Act. deleted text end new text begin
Board serves as Minnesota's state workforce development board for the purposes of the
federal Workforce Innovation and Opportunity Act, United States Code, title 29, section
3111, and must perform the duties under that act.
new text end

Subd. 2.

Membership.

new text begin (a) new text end The governor's Workforce Development deleted text begin Council deleted text end new text begin Board new text end is
composed of deleted text begin 31 deleted text end members appointed by the governor. deleted text begin The members may be removed pursuant
to section 15.059. deleted text end In selecting the representatives of the deleted text begin council deleted text end new text begin board new text end , the governor shall
ensure that deleted text begin 50 percent deleted text end new text begin a majority new text end of the members come from deleted text begin nominations provided by local
workforce councils. Local education representatives shall come from nominations provided
by local education to employment partnerships. The 31 members shall represent the following
sectors: deleted text end new text begin the private sector, pursuant to United States Code, title 29, section 3111. For the
public members, membership terms, compensation of members, and removal of members
are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable, the
membership should be balanced as to gender and ethnic diversity.
new text end

deleted text begin (a) State agencies: the following individuals shall serve on the council:
deleted text end

deleted text begin (1) commissioner of the Minnesota Department of Employment and Economic
Development;
deleted text end

deleted text begin (2) commissioner of the Minnesota Department of Education; and
deleted text end

deleted text begin (3) commissioner of the Minnesota Department of Human Services.
deleted text end

deleted text begin (b) Business and industry: six individuals shall represent the business and industry sectors
of Minnesota.
deleted text end

deleted text begin (c) Organized labor: six individuals shall represent labor organizations of Minnesota.
deleted text end

deleted text begin (d) Community-based organizations: four individuals shall represent community-based
organizations of Minnesota. Community-based organizations are defined by the Workforce
Investment Act as private nonprofit organizations that are representative of communities
or significant segments of communities and that have demonstrated expertise and
effectiveness in the field of workforce investment and may include entities that provide job
training services, serve youth, serve individuals with disabilities, serve displaced
homemakers, union-related organizations, employer-related nonprofit organizations, and
organizations serving nonreservation Indians and tribal governments.
deleted text end

deleted text begin (e) Education: six individuals shall represent the education sector of Minnesota as follows:
deleted text end

deleted text begin (1) one individual shall represent local public secondary education;
deleted text end

deleted text begin (2) one individual shall have expertise in design and implementation of school-based
service-learning;
deleted text end

deleted text begin (3) one individual shall represent leadership of the University of Minnesota;
deleted text end

deleted text begin (4) one individual shall represent secondary/postsecondary vocational institutions;
deleted text end

deleted text begin (5) the chancellor of the Board of Trustees of the Minnesota State Colleges and
Universities; and
deleted text end

deleted text begin (6) one individual shall have expertise in agricultural education.
deleted text end

deleted text begin (f) Other: two individuals shall represent other constituencies including:
deleted text end

deleted text begin (1) units of local government; and
deleted text end

deleted text begin (2) applicable state or local programs.
deleted text end

deleted text begin The speaker and the minority leader of the house of representatives shall each appoint
a representative to serve as an ex officio member of the council. The majority and minority
leaders of the senate shall each appoint a senator to serve as an ex officio member of the
council.
deleted text end

deleted text begin The governor shall appoint one individual representing public libraries, one individual
with expertise in assisting women in obtaining employment in high-wage, high-demand,
nontraditional occupations, and one individual representing adult basic education programs
to serve as nonvoting advisors to the council.
deleted text end

new text begin (b) No person shall serve as a member of more than one category described in paragraph
(a).
new text end

new text begin (c) Voting members shall consist of the following:
new text end

new text begin (1) the governor or the governor's designee;
new text end

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

new text begin (3) two members of the senate, one appointed by the senate majority leader and one
appointed by the senate minority leader;
new text end

new text begin (4) a majority of the members must be representatives of businesses in the state appointed
by the governor who:
new text end

new text begin (i) are owners of businesses, chief executives, or operating officers of businesses, or
other business executives or employers with optimum policy-making or hiring authority
and who, in addition, may be members of a local board under United States Code, title 29,
section 3122(b)(2)(A)(i);
new text end

new text begin (ii) represent businesses, including small businesses, or organizations representing
businesses that provide employment opportunities that, at a minimum, include high-quality,
work-relevant training and development in in-demand industry sectors or occupations in
the state; and
new text end

new text begin (iii) are appointed from individuals nominated by state business organizations and
business trade associations;
new text end

new text begin (5) six representatives of labor organizations appointed by the governor, including:
new text end

new text begin (i) representatives of labor organizations who have been nominated by state labor
federations; and
new text end

new text begin (ii) a member of a labor organization or a training director from a joint labor organization;
new text end

new text begin (6) commissioners of the state agencies with primary responsibility for core programs
identified within the state plan including:
new text end

new text begin (i) the Department of Employment and Economic Development;
new text end

new text begin (ii) the Department of Education; and
new text end

new text begin (iii) the Department of Human Services.
new text end

new text begin (7) two chief elected officials, appointed by the governor, collectively representing cities
and counties;
new text end

new text begin (8) two representatives who are people of color or people with disabilities, appointed
by the governor, of community-based organizations that have demonstrated experience and
expertise in addressing the employment, training, or education needs of individuals with
barriers to employment; and
new text end

new text begin (9) four officials responsible for education programs in the state, appointed by the
governor, including chief executive officers of community colleges and other institutions
of higher education, including:
new text end

new text begin (i) the chancellor of the Minnesota State Colleges and Universities;
new text end

new text begin (ii) the president of the University of Minnesota;
new text end

new text begin (iii) a president from a private postsecondary school; and
new text end

new text begin (iv) a representative of career and technical education.
new text end

new text begin (d) The nonvoting members of the board shall be appointed by the governor and consist
of one of each of the following:
new text end

new text begin (1) a representative of Adult Basic Education;
new text end

new text begin (2) a representative of public libraries;
new text end

new text begin (3) a person with expertise in women's economic security;
new text end

new text begin (4) the chair or executive director of the Minnesota Workforce Council Association;
new text end

new text begin (5) the commissioner of labor and industry;
new text end

new text begin (6) the commissioner of the Office of Higher Education;
new text end

new text begin (7) the commissioner of corrections;
new text end

new text begin (8) the commissioner of management and budget;
new text end

new text begin (9) two representatives of community-based organizations who are people of color or
people with disabilities who have demonstrated experience and expertise in addressing the
employment, training, and education needs of individuals with barriers to employment;
new text end

new text begin (10) a representative of secondary, post-secondary, or career-technical education;
new text end

new text begin (11) a representative of school-based service learning;
new text end

new text begin (12) a representative of the Council on Asian-Pacific Minnesotans;
new text end

new text begin (13) a representative of the Minnesota Council on Latino Affairs;
new text end

new text begin (14) a representative of the Council for Minnesotans of African Heritage;
new text end

new text begin (15) a representative of the Minnesota Indian Affairs Council;
new text end

new text begin (16) a representative of the Minnesota State Council on Disability; and
new text end

new text begin (17) a representative of the Office on the Economic Status of Women.
new text end

deleted text begin (g) Appointment: deleted text end new text begin (e) new text end Each member shall be appointed for a term of three years from the
first day of January or July immediately following their appointment. Elected officials shall
forfeit their appointment if they cease to serve in elected office.

deleted text begin (h) Members of the council are compensated as provided in section 15.059, subdivision
3.
deleted text end

Subd. 2a.

deleted text begin Council deleted text end new text begin Board new text end meetings new text begin ; chair new text end .

deleted text begin (a) If compliance with section 13D.02 is
impractical, the Governor's Workforce Development Council may conduct a meeting of its
members by telephone or other electronic means so long as the following conditions are
met:
deleted text end

deleted text begin (1) all members of the council participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;
deleted text end

deleted text begin (2) members of the public present at the regular meeting location of the council can hear
clearly all discussion and testimony and all votes of members of the council and, if needed,
receive those services required by sections 15.44 and 15.441;
deleted text end

deleted text begin (3) at least one member of the council is physically present at the regular meeting location;
and
deleted text end

deleted text begin (4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
deleted text end

deleted text begin (b) Each member of the council participating in a meeting by telephone or other electronic
means is considered present at the meeting for purposes of determining a quorum and
participating in all proceedings.
deleted text end

deleted text begin (c) If telephone or other electronic means is used to conduct a meeting, the council, to
the extent practical, shall allow a person to monitor the meeting electronically from a remote
location. The council may require the person making such a connection to pay for
documented marginal costs that the council incurs as a result of the additional connection.
deleted text end

deleted text begin (d) If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the council shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and of the
provisions of paragraph (c). The timing and method of providing notice is governed by
section 13D.04.
deleted text end

new text begin (a) The board shall hold regular in-person meetings at least quarterly and as often as
necessary to perform the duties outlined in the statement of authority and the board's bylaws.
Meetings shall be called by the chair. Special meetings may be called as needed. Notices
of all meetings shall be made at least 48 hours before the meeting date.
new text end

new text begin (b) The governor shall designate a chair from among the appointed business representative
voting members. The chair shall approve an agenda for each meeting. Members shall submit
a written request for consideration of an agenda item no less than 24 hours in advance of
the meeting. Members of the public may submit a written request within 48 hours of a
meeting to be considered for inclusion at the agenda. Members of the public attending a
meeting of the board may address the board only with the approval or at the request of the
chair.
new text end

new text begin (c) All meeting notices must be posted on the board's Web site. All meetings of the board
and committees must be open to the public. The board must make available to the public,
on a regular basis through electronic means and open meetings, information regarding the
activities of the board, information regarding membership, and, on request, minutes of
formal meetings of the board.
new text end

new text begin (d) For the purpose of conducting business before the board at a duly called meeting, a
simple majority of the voting members, excluding any vacancies, constitutes a quorum.
new text end

deleted text begin Subd. 3. deleted text end

deleted text begin Purpose; duties. deleted text end

deleted text begin The governor's Workforce Development Council shall replace
the governor's Job Training Council and assume all of its requirements, duties, and
responsibilities under the Workforce Investment Act. Additionally, the Workforce
Development Council shall assume the following duties and responsibilities:
deleted text end

deleted text begin (a) Review the provision of services and the use of funds and resources under applicable
federal human resource programs and advise the governor on methods of coordinating the
provision of services and the use of funds and resources consistent with the laws and
regulations governing the programs. For purposes of this section, applicable federal and
state human resource programs mean the:
deleted text end

deleted text begin (1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.;
deleted text end

deleted text begin (2) Carl D. Perkins Vocational and Applied Technology Education Act, United States
Code, title 20, section 2301, et seq.;
deleted text end

deleted text begin (3) Adult Education Act, United States Code, title 20, section 1201, et seq.;
deleted text end

deleted text begin (4) Wagner-Peyser Act, United States Code, title 29, section 49;
deleted text end

deleted text begin (5) Personal Responsibility and Work Opportunities Act of 1996 (TANF);
deleted text end

deleted text begin (6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp
Employment and Training Program, United States Code, title 7, section 2015(d)(4); and
deleted text end

deleted text begin (7) programs defined in section 116L.19, subdivision 5.
deleted text end

deleted text begin Additional federal and state programs and resources can be included within the scope
of the council's duties if recommended by the governor after consultation with the council.
deleted text end

deleted text begin (b) Review federal, state, and local education, postsecondary, job skills training, and
youth employment programs, and make recommendations to the governor and the legislature
for establishing an integrated seamless system for providing education and work skills
development services to learners and workers of all ages.
deleted text end

deleted text begin (c) Advise the governor on the development and implementation of statewide and local
performance standards and measures relating to applicable federal human resource programs
and the coordination of performance standards and measures among programs.
deleted text end

deleted text begin (d) Promote education and employment transitions programs and knowledge and skills
of entrepreneurship among employers, workers, youth, and educators, and encourage
employers to provide meaningful work-based learning opportunities.
deleted text end

deleted text begin (e) Evaluate and identify exemplary education and employment transitions programs
and provide technical assistance to local partnerships to replicate the programs throughout
the state.
deleted text end

deleted text begin (f) Advise the governor on methods to evaluate applicable federal human resource
programs.
deleted text end

deleted text begin (g) Sponsor appropriate studies to identify human investment needs in Minnesota and
recommend to the governor goals and methods for meeting those needs.
deleted text end

deleted text begin (h) Recommend to the governor goals and methods for the development and coordination
of a human resource system in Minnesota.
deleted text end

deleted text begin (i) Examine federal and state laws, rules, and regulations to assess whether they present
barriers to achieving the development of a coordinated human resource system.
deleted text end

deleted text begin (j) Recommend to the governor and to the federal government changes in state or federal
laws, rules, or regulations concerning employment and training programs that present barriers
to achieving the development of a coordinated human resource system.
deleted text end

deleted text begin (k) Recommend to the governor and to the federal government waivers of laws and
regulations to promote coordinated service delivery.
deleted text end

deleted text begin (l) Sponsor appropriate studies and prepare and recommend to the governor a strategic
plan which details methods for meeting Minnesota's human investment needs and for
developing and coordinating a state human resource system.
deleted text end

deleted text begin (m) Provide the commissioner of employment and economic development and the
committees of the legislature with responsibility for economic development with
recommendations provided to the governor under this subdivision.
deleted text end

deleted text begin (n) In consultation with local workforce councils and the Department of Employment
and Economic Development, develop an ongoing process to identify and address local gaps
in workforce services.
deleted text end

Subd. 4.

Executive committee duties.

The executive committee must, with advice and
input of local workforce deleted text begin councils deleted text end new text begin boards new text end and other stakeholders as appropriate, develop
performance standards for the state workforce centers. By January deleted text begin 15, 2002 deleted text end new text begin 2019 new text end , and each
odd-numbered year thereafter, the executive committee shall submit a report to the senate
and house of representatives committees with jurisdiction over workforce development
programs regarding the performance and outcomes of the workforce centers. The report
must provide recommendations regarding workforce center funding levels and sources,
program changes, and administrative changes.

Subd. 5.

Subcommittees.

The chair of the Workforce Development deleted text begin Council deleted text end new text begin Board new text end may
establish subcommittees in order to carry out the duties and responsibilities of the deleted text begin council deleted text end new text begin
board new text end .

Subd. 6.

Staffing.

The deleted text begin Department of deleted text end new text begin commissioner of new text end employment and economic
development must provide staff deleted text begin , including but not limited to professional, technical, and
clerical staff deleted text end new text begin to the board new text end necessary to deleted text begin perform the duties assigned to the Minnesota
Workforce Development Council. All staff report to the commissioner deleted text end new text begin carry out the duties
of the board new text end . deleted text begin The council may ask for assistance from other units of deleted text end new text begin At the request of the
board, new text end state deleted text begin government as deleted text end new text begin departments and agencies must provide the board with the
assistance new text end it requires deleted text begin in order deleted text end to fulfill its duties and responsibilities.

Subd. 7.

Expiration.

The deleted text begin council deleted text end new text begin board new text end expires if there is no federal funding for the
human resource programs within the scope of the deleted text begin council's deleted text end new text begin board's new text end duties.

Subd. 8.

Funding.

The commissioner deleted text begin shall develop recommendations on a funding
formula for allocating Workforce Investment Act funds to the council with a minimum
allocation deleted text end of new text begin employment and economic development must provide at least new text end $350,000 deleted text begin per deleted text end new text begin
each fiscal new text end year deleted text begin . The commissioner shall report the funding formula recommendations to
the legislature by January 15, 2011 deleted text end new text begin from existing agency resources to the board for staffing
and administrative expenses new text end .

Sec. 9.

Minnesota Statutes 2016, section 116M.14, subdivision 4, is amended to read:

Subd. 4.

Low-income area.

"Low-income area" means:

(1) Minneapolis, St. Paul;

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

(3) the area outside the metropolitan area.

Sec. 10.

Minnesota Statutes 2016, section 116M.17, subdivision 4, is amended to read:

Subd. 4.

Reports.

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

Sec. 11.

Minnesota Statutes 2016, section 116M.18, subdivision 1a, is amended to read:

Subd. 1a.

Statewide loans.

To the extent there is sufficient eligible demand, loans shall
be made so that an approximately equal dollar amount of loans are made to businesses in
the metropolitan area as in the nonmetropolitan area. After deleted text begin September 30 deleted text end new text begin March 31 new text end of each
deleted text begin calendar deleted text end new text begin fiscal new text end year, the department may allow loans to be made anywhere in the state
without regard to geographic area.

Sec. 12.

Minnesota Statutes 2016, section 116M.18, subdivision 4, is amended to read:

Subd. 4.

Business loan criteria.

(a) The criteria in this subdivision apply to loans made
by nonprofit corporations under the program.

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

(c) A loan must be used to support a business owned by a minority or a low-income
person, woman, veteran, or a person with disabilities. Priority must be given for loans to
the lowest income areas.

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

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

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

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

new text begin (h) Up to ten percent of a loan's principal amount may be forgiven if the department
approves and the borrower has met lender criteria including being current with all payments.
new text end

Sec. 13.

Minnesota Statutes 2016, section 116M.18, subdivision 4a, is amended to read:

Subd. 4a.

Microenterprise loan.

new text begin (a) new text end Program grants may be used to make microenterprise
loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans
are subject to this section except that:

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

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

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

(4) they do not require a match.

new text begin (b) Up to ten percent of a loan's principal amount may be forgiven if the department
approves and the borrower has met lender criteria including being current with all payments.
new text end

Sec. 14.

Minnesota Statutes 2016, section 116M.18, subdivision 8, is amended to read:

Subd. 8.

Reporting requirements.

A nonprofit corporation that receives a program
grant shall:

(1) submit an annual report to the deleted text begin board and deleted text end department by deleted text begin March 30 deleted text end new text begin February 15 new text end of
each year that includes a description of businesses supported by the grant program, an
account of loans made during the calendar year, the program's impact on minority business
enterprises and job creation for minority persons and low-income persons, the source and
amount of money collected and distributed by the program, the program's assets and
liabilities, and an explanation of administrative expenses; and

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

Sec. 15.

Laws 2016, chapter 189, article 7, section 2, subdivision 2, is amended to read:

Subd. 2. Business and Community Development

-0-

8,021,000

Appropriations by Fund
General	-0-	7,271,000
Workforce Development	-0-	750,000

(a) $9,000,000 in fiscal year 2017 is a onetime
reduction in the general fund appropriation
for the Minnesota investment fund under
Minnesota Statutes, section 116J.8731. The
base funding for this purpose is $11,000,000
in fiscal year 2018 and each fiscal year
thereafter.

(b) $11,500,000 in fiscal year 2017 is a
onetime reduction in the general fund
appropriation for the Minnesota job creation
fund under Minnesota Statutes, section
116J.8748. The base funding for this program
is $6,500,000 in fiscal year 2018 and each
fiscal year thereafter.

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

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

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

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

(g) $100,000 in fiscal year 2017 is from the
general fund for an easy-to-understand manual
to instruct aspiring business owners in how to
start a child care business. The commissioner
shall work in consultation with relevant state
and local agencies and affected stakeholders
to produce the manual. The manual must be
made available electronically to interested
persons. This is a onetime appropriation and
is available until June 30, 2019.

(h) $2,500,000 in fiscal year 2017 is for grants
to initiative foundations to provide financing
for business startups, expansions, and
maintenance; and for business ownership
transition and succession. This is a onetime
appropriation. Of the amount appropriated:

(1) $357,000 is for a grant to the Southwest
Initiative Foundation;

(2) $357,000 is for a grant to the West Central
Initiative Foundation;

(3) $357,000 is for a grant to the Southern
Minnesota Initiative Foundation;

(4) $357,000 is for a grant to the Northwest
Minnesota Foundation;

(5) $357,000 is for a grant to the Initiative
Foundation;

(6) $357,000 is for a grant to the Northland
Foundation; and

(7) $357,000 is for a grant for the Minnesota
emerging entrepreneur program under
Minnesota Statutes, chapter 116M. Funds
available under this clause new text begin are for deposit in
the emerging entrepreneur program special
revenue fund account created under Minnesota
Statutes, chapter 116M, and are available until
spent and new text end must be allocated as follows:

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

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

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

(j) $4,500,000 in fiscal year 2017 is for a grant
to the Minnesota Film and TV Board for the
film production jobs program under Minnesota
Statutes, section 116U.26. This appropriation
is in addition to the appropriation in Laws
2015, First Special Session chapter 1, article
1, section 2, subdivision 2. This is a onetime
appropriation.

(k) $3,651,000 in fiscal year 2017 is from the
general fund for a grant to Mille Lacs County
to develop and operate the Lake Mille Lacs
area economic relief program established in
section 45. This is a onetime appropriation.

(l) $500,000 in fiscal year 2017 is from the
general fund for grants to local communities
outside of the metropolitan area as defined
under Minnesota Statutes, section 473.121,
subdivision 2, to increase the supply of quality
child care providers in order to support
regional economic development. Grant
recipients must match state funds on a
dollar-for-dollar basis. Grant funds available
under this section must be used to implement
solutions to reduce the child care shortage in
the state, including but not limited to funding
for child care business start-up or expansion,
training, facility modifications or
improvements required for licensing, and
assistance with licensing and other regulatory
requirements. In awarding grants, the
commissioner must give priority to
communities in greater Minnesota that have
documented a shortage of child care providers
in the area. This is a onetime appropriation
and is available until June 30, 2019.

By September 30, 2017, grant recipients must
report to the commissioner on the outcomes
of the grant program, including but not limited
to the number of new providers, the number
of additional child care provider jobs created,
the number of additional child care slots, and
the amount of local funds invested.

By January 1, 2018, the commissioner must
report to the standing committees of the
legislature having jurisdiction over child care
and economic development on the outcomes
of the program to date.

(m) $100,000 in fiscal year 2017 is from the
general fund for a grant to the city of Madelia
to provide match funding for a federal
Economic Development Agency technical
assistance grant. This is a onetime
appropriation.

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

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

(p) $2,600,000 in fiscal year 2017 is for a
transfer to the Board of Regents of the
University of Minnesota for academic and
applied research through MnDRIVE at the
Natural Resources Research Institute to
develop new technologies that enhance the
long-term viability of the Minnesota mining
industry. The research must be done in
consultation with the Mineral Coordinating
Committee established by Minnesota Statutes,
section 93.0015. This is a onetime transfer.

(q) Of the amount appropriated in fiscal year
2017 for the Minnesota Investment Fund in
Laws 2015, First Special Session chapter 1,
article 1, section 2, subdivision 2, paragraph
(a), $450,000 is for a grant to the Lake
Superior-Poplar River Water District to
acquire interests in real property, engineer,
design, permit, and construct infrastructure to
transport and treat water from Lake Superior
through the Poplar River Valley to serve
domestic, irrigation, commercial, stock
watering, and industrial water users. This grant
does not require a local match. This is a
onetime appropriation. This amount is
available until June 30, 2019.

new text begin (r) $500,000 is for the Minnesota emerging
entrepreneur program under Minnesota
Statutes, section 116M.18. Of this amount, up
to five percent is for administration and
monitoring of the program. For fiscal year
2018 and thereafter, the base amount is
$750,000 per year. Funds available under this
paragraph are for deposit in the emerging
entrepreneur program special revenue fund
account created under Minnesota Statutes,
chapter 116M, and are available until spent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively to July 1, 2016.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 4355.0100; 4355.0200; 4355.0300; 4355.0400; and 4355.0500, new text end new text begin
are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-2327

46.131 ASSESSMENTS AND FEES FOR FINANCIAL INSTITUTIONS.

Subd. 5.

Application and adjustment of fees.

If the income from the fees provided for herein during any fiscal year shall be more than 103 percent of such expenditures for that year, any excess above such sum of 103 percent may be carried over to succeeding years in order to cover any deficit below 103 percent which may occur in such succeeding years. If the income from the fees provided for herein during any fiscal year shall produce less than the expenditures for that year, the Department of Commerce in adjusting its schedule of fees for use in the next fiscal year shall fix the fees so as to produce income in the amount of the expenditures for the latter year plus the amount of the difference between the expenditures for the first year referred to herein and the total income from such fees during the year and plus three percent of the total expenditures for both the latter and the first year referred to herein.

326B.89 CONTRACTOR RECOVERY FUND.

Subd. 14.

Accelerated compensation.

(a) Payments made from the fund to compensate owners and lessees that do not exceed the jurisdiction limits for conciliation court matters as specified in section 491A.01 may be paid on an accelerated basis if all of the following requirements in paragraphs (b) and (c) have been satisfied.

(b) The owner or the lessee has served upon the commissioner a verified application for compensation that complies with the requirements set out in subdivision 6 and the commissioner determines based on review of the application that compensation should be paid from the fund. The commissioner shall calculate the actual and direct out-of-pocket loss in the transaction, minus attorney fees, litigation costs or fees, interest on the loss and on the judgment obtained as a result of the loss, and any satisfaction of the judgment, and make payment to the owner or the lessee up to the conciliation court jurisdiction limits within 45 days after the owner or lessee serves the verified application.

(c) The commissioner may pay compensation to owners or lessees that totals not more than $50,000 per licensee per fiscal year under this accelerated process. The commissioner may prorate the amount of compensation paid to owners or lessees under this subdivision if applications submitted by owners and lessees seek compensation in excess of $50,000 against a licensee. Any unpaid portion of a verified application that has been prorated under this subdivision shall be satisfied in the manner set forth in subdivision 9.

Repealed Minnesota Session Laws: 17-2327

Laws 2009, chapter 37, article 3, section 4

Sec. 4.

Minnesota Statutes 2008, section 47.60, subdivision 6, is amended to read:

Subd. 6.

Penalties for violation.

A deleted text begin person deleted text end new text begin business entity new text end or the deleted text begin person's deleted text end new text begin entity's new text end members, officers, directors, agents, and employees who violate or participate in the violation of any of the provisions of this section may be liable in the same manner as in section 56.19.

Repealed Minnesota Rule: 17-2327

4355.0100 PURPOSE.

The purpose of this chapter is to establish:

A.

procedures for use of the revolving loan fund under Minnesota Statutes, section 116M.18;

B.

procedures for the Minnesota emerging entrepreneur program to certify and enter into agreements with nonprofit corporations; and

C.

procedures for nonprofit corporations to make loans to eligible businesses.

4355.0200 DEFINITIONS.

Subpart 1.

Scope.

For the purposes of this chapter the terms in this part and in Minnesota Statutes, section 116M.14, have the meanings given.

Subp. 2.

Grant agreements.

"Grant agreements" means an agreement between the state and a nonprofit corporation through which the state provides funds to carry out specified programs, services, or activities.

Subp. 3.

Nonprofit corporation.

"Nonprofit corporation" means a not-for-profit organization operating in one or more eligible cities and certified by the board to receive grants and disburse these funds in the nature of loans to qualifying businesses.

Subp. 4.

Nonprofit revolving loan fund.

"Nonprofit revolving loan fund" means a board-certified revolving loan fund established by a nonprofit corporation to provide loans to new and expanding businesses in low-income areas.

Subp. 5.

Urban revolving loan fund.

"Urban revolving loan fund" means a fund established by the board to make grants to nonprofit corporations.

4355.0300 BUSINESS LOANS BY NONPROFIT CORPORATIONS.

Subpart 1.

Generally.

The board shall make available funds from the urban revolving loan fund for nonprofit corporations. The money awarded to each corporation shall be appropriated to its nonprofit revolving loan fund to be used to make loans to businesses in low-income areas. The funds are to be awarded on a project-by-project basis and must be matched by the corporation with an equal amount of money from sources other than government appropriations.

Subp. 2.

Grant agreement required.

A grant agreement must be established with each nonprofit corporation certified for funding by the board. Grant agreements shall be valid for a period of one year from the time they are fully executed. Agreements may be renewed by the board based on an evaluation of the corporation's lending activities, a finding that the corporation has complied with all the provisions of the agreement, and has made substantive progress in achieving the goals described in its application.

In the event that a grant agreement is not renewed, the corporation must continue to administer all loans it may have made under the provisions of the grant agreement and Minnesota Statutes, section 116M.18.

Subp. 3.

Application by nonprofit corporation.

Any nonprofit corporation wishing to be certified as a participant in the urban challenge grant program must apply in a form prescribed by the board. The application must include:

A.

an assurance signed by the nonprofit corporation's chair that the applicant will comply with all applicable state and federal laws and requirements;

B.

a resolution passed by the applicant's board of directors approving the submission of an application and authorizing execution of the grant agreement if funds are made available;

C.

a plan demonstrating the applicant's eligibility pursuant to Minnesota Statutes, section 116M.18, the manner in which minority business enterprises will be assisted, the outcomes expected to result from the corporation's participation in the program; and

D.

any additional information that the board finds is necessary to clarify the applicant's ability to achieve the program's objectives.

Subp. 4.

Board review.

The board shall certify the corporation if it has demonstrated that it fully meets the eligibility standards in Minnesota Statutes, section 116M.18, subdivision 2.

Subp. 5.

Disapproval of applications.

In cases where the corporation fails to demonstrate that it has met the requirements in Minnesota Statutes, section 116M.18, subdivision 2, the board must disapprove the application. The commissioner shall inform the corporation of the board's decision, in writing, stating the reasons for the denial.

Subp. 6.

Contents of grant agreement.

If certified, the board must enter into a grant agreement with the nonprofit corporation. The grant agreement must include provisions that:

A.

the corporation has established or will establish a board-certified revolving loan fund to provide loans to new and expanding businesses in low-income areas;

B.

the grant recipient will comply with all applicable state and federal laws, including the requirements of Minnesota Statutes, section 116M.18; and

C.

no grant funds shall be used to finance activities not approved in either the grant agreement or each loan agreement.

Subp. 7.

Other grant requirements.

The following provisions apply to grants awarded:

A.

if it is determined that an improper use of the funds has occurred, the board shall take whatever action is necessary to recover improperly spent funds;

B.

grant recipients must return funds that are improperly expended;

C.

the board shall suspend payment of funds to recipients that are not in compliance with applicable state and federal laws, rules, and regulations;

D.

amendments to the grant agreement must be in writing; and

E.

the grant agreement may authorize the nonprofit corporation to be paid for administrative expenses out of the interest earned on loans it originates.

Subp. 8.

Corporation to make business loans.

Any business may make an application to the nonprofit corporation for an urban challenge grant loan. The application must be in a form approved by the corporation and the board. The corporation must review the application and may give preliminary approval for the loan based on Minnesota Statutes, section 116M.18. The loan application must then be forwarded to the board for final approval.

4355.0400 BUSINESS LOANS BY THE BOARD.

If the board receives a grant, gift, or loan, authorizing or requiring it to make business loans directly to qualifying businesses, and the board determines that businesses do not have access through a certified corporation, the board may receive applications for an urban challenge grant loan on the forms it prescribes. The board shall review applications and, based on the provisions of Minnesota Statutes, section 116M.18, and the business loan criteria in part 4355.0500, may approve them. If an application is denied, the commissioner shall inform the applicant as to the reasons for the denial.

4355.0500 BUSINESS LOAN CRITERIA.

Subpart 1.

Terms and conditions.

A.

The interest rate on a loan shall be established by the corporation, but may be no less than two percent per annum, nor more than ten percent per annum or one percent per annum above the prime rate, as published in the Wall Street Journal at the time the loan is closed, whichever is greater.

B.

The corporation may only charge the business all out-of-pocket administrative expenses connected with originating the loan at the time of closing.

C.

The loan funds may be used for normal business expenses including, but not limited to, site acquisition, new construction, renovation, machinery and equipment, and working capital. Loans may not be used to refinance a business or personal existing debt.

Subp. 2.

Loan repayment.

For loans made by the board, all loan repayments must be deposited in the urban revolving loan fund for further distribution to businesses or nonprofit corporations pursuant to Minnesota Statutes, section 116M.18.

For loans made by a nonprofit corporation, amounts equal to one-half of the principal and interest must be deposited in the urban revolving loan fund. The principal payments shall be made available to the corporation originating the loan in order to make additional loans, as long as the corporation remains certified and the grant agreement with the board is in effect. The board may return interest payments to the corporation in order to pay for the corporation's administrative expenses.

The remaining amount of the loan repayment may be deposited in the nonprofit revolving loan fund created by the corporation which originated the loan for further distribution by the nonprofit corporation, or for other uses as may be determined by the corporation.