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CHAPTER 85--H.F.No. 729

An act

relating to state government; appropriating money for jobs and economic development; modifying labor and industry; employment, economic development, and workforce development; unemployment insurance; miscellaneous provisions; commerce and consumer protection; utility regulation; energy and solar energy regulations; creating various renewable energy incentives; imposing penalties; increasing fees; requiring reports; authorizing rulemaking; appropriating money to various state boards, agencies, and departments;

amending Minnesota Statutes 2012, sections 16B.122, subdivision 2; 16C.144, subdivision 2; 45.0135, subdivision 6; 60A.14, subdivision 1; 65B.84, subdivision 1; 116J.70, subdivision 2a; 116J.8731, subdivisions 2, 3, 8, 9; 116L.17, subdivision 4, by adding a subdivision; 116U.26; 136F.37; 154.001, by adding a subdivision; 154.003; 154.02; 154.05; 154.06; 154.065, subdivision 2; 154.07, subdivision 1; 154.08; 154.09; 154.10, subdivision 1; 154.11, subdivision 1; 154.12; 154.14; 154.15, subdivision 2; 154.26; 155A.23, subdivisions 3, 8, 11; 155A.25, subdivisions 1a, 4; 155A.27, subdivisions 4, 7, 10; 155A.29, subdivision 2; 155A.30, by adding a subdivision; 177.27, subdivision 4; 216B.16, subdivision 7b; 216B.1635; 216B.164, subdivisions 2, 3, 4, 6, by adding subdivisions; 216B.1691, subdivision 2e, by adding a subdivision; 216B.1692, subdivisions 1, 8, by adding a subdivision; 216B.1695, subdivision 5, by adding a subdivision; 216B.2401; 216B.241, subdivisions 1, 1e, by adding a subdivision; 216B.2411, subdivision 3; 216C.05; 216C.435, subdivision 8, by adding a subdivision; 216C.436, subdivisions 2, 7, 8; 239.101, subdivision 3; 245.4712, subdivision 1; 268.051, subdivision 5; 268.07, subdivision 3b; 268.125, subdivisions 1, 3, 4, 5; 268.136, subdivisions 1, 2, 3, 4, 5, by adding a subdivision; 268.23; 268A.13; 268A.14, subdivision 1; 298.22, subdivision 1; 298.28, subdivision 9c; 326.02, subdivision 5; 326A.04, subdivisions 2, 3, 5, 7; 326A.10; 326B.081, subdivision 3; 326B.082, subdivision 11; 326B.093, subdivision 4; 326B.101; 326B.103, subdivision 11; 326B.121, subdivision 1; 326B.163, by adding subdivisions; 326B.184, subdivisions 1, 2, by adding a subdivision; 326B.187; 326B.31, by adding a subdivision; 326B.33, subdivisions 19, 21; 326B.36, subdivision 7; 326B.37, by adding a subdivision; 326B.43, subdivision 2; 326B.49, subdivisions 2, 3; 326B.89, subdivision 1; 327B.04, subdivision 4; 341.21, subdivision 3a; 341.221; 341.27; 341.29; 341.30, subdivision 4; 341.32, subdivision 2; 341.321; 429.101, subdivision 2; 462.358, subdivision 2b; 462A.37, subdivision 1; 507.235, subdivision 2; 559.211, subdivision 2; Laws 2005, chapter 97, article 10, section 3; Laws 2006, chapter 269, section 2, as amended; Laws 2011, First Special Session chapter 2, article 2, section 3, subdivision 4; Laws 2012, chapter 201, article 1, section 3; proposing coding for new law in Minnesota Statutes, chapters 3; 116C; 116J; 116L; 154; 155A; 161; 179; 216B; 216C; 268; 326B; 383D; 559; proposing coding for new law as Minnesota Statutes, chapter 80G; repealing Minnesota Statutes 2012, sections 116W.01; 116W.02; 116W.03; 116W.035; 116W.04; 116W.05; 116W.06; 116W.20; 116W.21; 116W.23; 116W.24; 116W.25; 116W.26; 116W.27; 116W.28; 116W.29; 116W.30; 116W.31; 116W.32; 116W.33; 116W.34; 155A.25, subdivision 1; 216B.1637; 237.012, subdivision 3; 326A.03, subdivisions 2, 5, 8; 326B.31, subdivisions 18, 19, 22; 326B.978, subdivision 4; 507.235, subdivision 4; Minnesota Rules, parts 1105.0600; 1105.2550; 1105.2700; 1307.0032; 3800.3520, subpart 5, items C, D; 3800.3602, subpart 2, item B.

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 amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2014 new text end new text begin 2015 new text end new text begin Total new text end
new text begin General new text end new text begin $ new text end new text begin 197,787,000 new text end new text begin $ new text end new text begin 170,068,000 new text end new text begin $ new text end new text begin 367,855,000 new text end
new text begin Workforce Development new text end new text begin 21,469,000 new text end new text begin 20,951,000 new text end new text begin 42,420,000 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 1,400,000 new text end
new text begin Workers' Compensation new text end new text begin 23,535,000 new text end new text begin 23,325,000 new text end new text begin 46,860,000 new text end
new text begin Special Revenue new text end new text begin 940,000 new text end new text begin 1,240,000 new text end new text begin 2,180,000 new text end
new text begin Petroleum Tank Release new text end new text begin 1,052,000 new text end new text begin 1,052,000 new text end new text begin 2,104,000 new text end
new text begin Total new text end new text begin $ new text end new text begin 245,483,000 new text end new text begin $ new text end new text begin 217,336,000 new text end new text begin $ new text end new text begin 462,819,000 new text end

Sec. 2.

new text begin JOBS AND ECONOMIC DEVELOPMENT. 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 "2014" and "2015" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. "The biennium" is fiscal years 2014 and 2015. 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 2014 new text end new text begin 2015 new text end

Sec. 3.

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 107,134,000 new text end new text begin $ new text end new text begin 97,364,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 85,994,000 new text end new text begin 76,742,000 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 20,440,000 new text end new text begin 19,922,000 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 53,642,000 new text end new text begin 45,407,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 52,942,000 new text end new text begin 44,707,000 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 (a)(1) $15,000,000 each year is for the Minnesota investment fund under Minnesota Statutes, section 116J.8731. This appropriation is available until spent. new text end

new text begin (2) Of the amount available under clause (1), up to $3,000,000 in fiscal year 2014 is for a loan to facilitate initial investment in the purchase and operation of a biopharmaceutical manufacturing facility. This loan is not subject to the loan limitations under Minnesota Statutes, section 116J.8731, and shall be forgiven by the commissioner of employment and economic development upon verification of meeting performance goals. Purchases related to and for the purposes of this loan award must be made between January 1, 2013, and June 30, 2015. The amount under this clause is available until expended. new text end

new text begin (3) Of the amount available under clause (1), up to $2,000,000 is available for subsequent investment in the biopharmaceutical facility project in clause (2). The amount under this clause is available until expended. Loan thresholds under clause (2) must be achieved and maintained to receive funding. Loans are not subject to the loan limitations under Minnesota Statutes, section 116J.8731, and shall be forgiven by the commissioner of employment and economic development upon verification of meeting performance goals. Purchases related to and for the purposes of loan awards must be made during the biennium the loan was received. new text end

new text begin (4) Notwithstanding any law to the contrary, the biopharmaceutical manufacturing facility in this paragraph shall be deemed eligible for the Minnesota job creation fund under Minnesota Statutes, section 116J.8748, by having at least $25,000,000 in capital investment and 190 retained employees. new text end

new text begin (5) For purposes of clauses (1) to (4), "biopharmaceutical" and "biologics" are interchangeable and mean medical drugs or medicinal preparations produced using technology that uses biological systems, living organisms, or derivatives of living organisms, to make or modify products or processes for specific use. The medical drugs or medicinal preparations include but are not limited to proteins, antibodies, nucleic acids, and vaccines. new text end

new text begin (b) $12,000,000 each year is for the Minnesota job creation fund under Minnesota Statutes, section 116J.8748. Of this amount, the commissioner of employment and economic development may use up to three percent for administrative expenses. This appropriation is available until spent. The base funding for this program shall be $12,500,000 each year in the fiscal year 2016-2017 biennium. new text end

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

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

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

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

new text begin (g) $6,000,000 the first year is from the general fund for the redevelopment program under Minnesota Statutes, section 116J.571. This is a onetime appropriation and is available until spent. new text end

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

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

new text begin (k) $5,000,000 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 expended. The base funding for this program shall be $1,500,000 each year in the fiscal year 2016-2017 biennium. new text end

new text begin (l) $375,000 each year is from the general fund for a grant to Enterprise Minnesota, Inc., for the small business growth acceleration program under Minnesota Statutes, section 116O.115. This is a onetime appropriation. new text end

new text begin (m) $160,000 each year is from the general fund for a grant to develop and implement a southern and southwestern Minnesota initiative foundation collaborative pilot project. Funds available under this paragraph must be used to support and develop entrepreneurs in diverse populations in southern and southwestern Minnesota. This is a onetime appropriation and is available until expended. new text end

new text begin (n) $100,000 each year is from the general fund for the Center for Rural Policy and Development. This is a onetime appropriation. new text end

new text begin (o) $250,000 each year is from the general fund for the Broadband Development Office. new text end

new text begin (p) $250,000 the first year is from the general fund for a onetime grant to the St. Paul Planning and Economic Development Department for neighborhood stabilization use in NSP3. new text end

new text begin (q) $1,235,000 the first year is from the general fund for a onetime grant to a city of the second class that is designated as an economically depressed area by the United States Department of Commerce. The appropriation is for economic development, redevelopment, and job creation programs and projects. This appropriation is available until expended. new text end

new text begin (r) $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 (s) $750,000 the first year is from the general fund for a onetime grant to the city of Morris for loans or grants to agricultural processing facilities for energy efficiency improvements. Funds available under this section shall be used to increase conservation and promote energy efficiency through retrofitting existing systems and installing new systems to recover waste heat from industrial processes and reuse energy. This appropriation is not available until the commissioner determines that at least $1,250,000 is committed to the project from nonpublic sources. This appropriation is available until expended. new text end

new text begin Subd. 3. new text end

new text begin Workforce Development new text end

new text begin 16,386,000 new text end new text begin 14,881,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 2,776,000 new text end new text begin 1,789,000 new text end
new text begin Workforce Development new text end new text begin 13,610,000 new text end new text begin 13,092,000 new text end

new text begin (a) $1,039,000 each year from the general fund and $2,244,000 each year from the workforce development fund are for the adult workforce development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the adult workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year. new text end

new text begin (b) $3,500,000 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 and $250,000 each year is from the general fund for the youthbuild program under Minnesota Statutes, sections 116L.361 to 116L.366. Of this appropriation and notwithstanding any law to the contrary, $250,000 each year is for the Little Earth youthbuild program and is available until expended. The appropriation from the general fund and the appropriation to Little Earth youthbuild program are onetime. new text end

new text begin (d) $200,000 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 (e) $2,848,000 each year is from the workforce development fund for the youth workforce development competitive grant program. Of this amount, up to five percent is for administration and monitoring of the youth workforce development competitive grant program. All grant awards shall be for two consecutive years. Grants shall be awarded in the first year. new text end

new text begin (f) $1,500,000 each year is from the workforce development fund for a grant to FastTRAC - Minnesota Adult Careers Pathways Program. Up to ten percent of this appropriation may be used to provide leadership, oversight, and technical assistance services for low-skilled, low-income adults. new text end

new text begin (g) $987,000 in fiscal year 2014 is a onetime appropriation from the general fund for the pilot customized training program for manufacturing industries under article 3. Of this amount: new text end

new text begin (1) $240,000 is for the commissioner for coordination, oversight, and reporting responsibilities related to the customized training program; new text end

new text begin (2) $187,000 is for a grant to Alexandria Technical College for the customized training center; new text end

new text begin (3) $380,000 is for a grant to Century College for the purposes of this paragraph; new text end

new text begin (4) $90,000 is for Hennepin Technical College for the purposes of this paragraph; and new text end

new text begin (5) $90,000 is for Central Lakes College for the purposes of this paragraph. new text end

new text begin (h) $425,000 the first year and $425,000 the second year are from the workforce development fund for a grant to the Minnesota High Tech Association to support SciTechsperience, a program that supports science, technology, engineering, and math (STEM) internship opportunities for two- and four-year college and university 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, with fewer than 150 total employees, or at small or medium, for-profit companies located outside of the seven-county metropolitan area, with fewer than 250 total employees. At least 100 students must be matched in the first year and at least 125 students must be matched in the second year. Selected hiring companies shall receive from the grant 50 percent of the wages paid to the intern, capped at $2,500 per intern. The program must work toward increasing the participation among women or other underserved populations. This is a onetime appropriation and is available until expended. new text end

new text begin (i) $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 (j) $450,000 the first year is from the workforce development fund for the foreign-trained health care professionals grant program modeled after the pilot program conducted under Laws 2006, chapter 282, article 11, section 2, subdivision 12, to encourage state licensure of foreign-trained health care professionals, including: physicians, with preference given to primary care physicians who commit to practicing for at least five years after licensure in underserved areas of the state; nurses; dentists; pharmacists; mental health professionals; and other allied health care professionals. The commissioner must collaborate with health-related licensing boards and Minnesota workforce centers to award grants to foreign-trained health care professionals sufficient to cover the actual costs of taking a course to prepare health care professionals for required licensing examinations and the fee for the state licensing examinations. When awarding grants, the commissioner must consider the following factors: new text end

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

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

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

new text begin (4) any additional criteria established by the commissioner. This is a onetime appropriation and is available until expended. new text end

new text begin (k) $68,000 the first year from the workforce development fund is for a grant to Olmsted County for employment supports and independent living services to county residents diagnosed with high-functioning autism, Asperger's syndrome, nonverbal learning disorders, and pervasive development disorder, not otherwise specified, and for education, outreach, and support services to area employers to encourage the hiring and promotion of workers with high-functioning autism, Asperger's syndrome, nonverbal learning disorders, and pervasive development disorder, not otherwise specified. This is a onetime appropriation and is available until expended. 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) $500,000 the first year and $500,000 the second year are appropriated from the general fund for the publication, dissemination, and use of labor market information under Minnesota Statutes, section 116J.4011, and for pilot programs in the workforce service areas specified in this act, to combine career and higher education advising. new text end

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

new text begin Subd. 4. new text end

new text begin General Support Services new text end

new text begin 1,168,000 new text end new text begin 1,168,000 new text end

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

new text begin Subd. 5. new text end

new text begin Minnesota Trade Office new text end

new text begin 2,322,000 new text end new text begin 2,292,000 new text end

new text begin (a) $330,000 in fiscal year 2014 and $300,000 in fiscal year 2015 are for the STEP grants in Minnesota Statutes, section 116J.979. Of the fiscal year 2014 appropriation, $30,000 is for establishing trade, export, and cultural exchange relations between the state of Minnesota and east African nations. new text end

new text begin (b) $180,000 in fiscal year 2014 and $180,000 in fiscal year 2015 are for the Invest Minnesota marketing initiative in Minnesota Statutes, section 116J.9781. Notwithstanding any other law, this provision does not expire. new text end

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

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

new text begin (e) The commissioner of employment and economic development, in consultation with the commissioner of agriculture, shall identify and increase export opportunities for Minnesota agricultural products. new text end

new text begin Subd. 6. new text end

new text begin Vocational Rehabilitation new text end

new text begin 27,691,000 new text end new text begin 27,691,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 20,861,000 new text end new text begin 20,861,000 new text end
new text begin Workforce Development new text end new text begin 6,830,000 new text end new text begin 6,830,000 new text end

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

new text begin (b) $2,261,000 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) $5,745,000 each year from the general fund and $6,830,000 each year from the workforce development fund is for extended employment services for persons with severe disabilities under Minnesota Statutes, section 268A.15. The allocation of extended employment funds to Courage Center from July 1, 2012 to June 30, 2013 must be contracted to Allina Health systems from July 1, 2013 to June 30, 2014 to provide extended employment services in accordance with Minnesota Rules, parts 3300.2005 to 3300.2055. new text end

new text begin (d) $2,055,000 each year is from the general fund for grants to programs that provide employment support services to persons with mental illness under Minnesota Statutes, sections 268A.13 and 268A.14. The base appropriation for this program is $1,555,000 each year in the fiscal year 2016-2017 biennium. new text end

new text begin Subd. 7. new text end

new text begin Services for the Blind new text end

new text begin 5,925,000 new text end new text begin 5,925,000 new text end

Sec. 4.

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 58,748,000 new text end new text begin $ new text end new text begin 42,748,000 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 19,203,000 new text end new text begin 9,203,000 new text end

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

new text begin (b) Of this amount, $10,000,000 is a onetime appropriation and is targeted for housing in communities and regions that have: new text end

new text begin (1)(i) low housing vacancy rates; and new text end

new text begin (ii) cooperatively developed a plan that identifies current and future housing needs; and new text end

new text begin (2)(i) experienced job growth since 2005 and have at least 2,000 jobs within the commuter shed; new text end

new text begin (ii) evidence of anticipated job expansion; or new text end

new text begin (iii) a significant portion of area employees who commute more than 30 miles between their residence and their employment. new text end

new text begin (c) Priority shall be given to programs and projects that are land trust programs and programs that work in coordination with a land trust program. new text end

new text begin (d) The base funding for this program in the 2016-2017 biennium is $12,925,000 each year. new text end

new text begin Subd. 3. new text end

new text begin Housing Trust Fund new text end

new text begin 13,276,000 new text end new text begin 10,276,000 new text end

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

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

new text begin (c) Of this amount, $500,000 the first year is a onetime appropriation for temporary rental assistance for adults who are in the process of being released from state correctional facilities or on supervised release in the community who are homeless or at risk of becoming homeless. The agency, in consultation with the Department of Corrections, may establish additional targeting criteria to identify those adults most at risk of reentering state correctional facilities. new text end

new text begin (d) Of this amount, $500,000 the first year is a onetime appropriation for a grant to the nonprofit organization selected to administer the state demonstration project for high-risk adults established under Laws 2007, chapter 54, article 1, section 19. new text end

new text begin (e) The base funding for this program in fiscal years 2016 and 2017 is $11,471,000 each year. 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 2,838,000 new text end new text begin 2,838,000 new text end

new text begin This appropriation is for the rental housing assistance program under Minnesota Statutes, section 462A.2097. new text end

new text begin Subd. 5. new text end

new text begin Family Homeless Prevention new text end

new text begin 7,862,000 new text end new text begin 7,862,000 new text end

new text begin This appropriation is for the family homeless prevention and assistance programs under Minnesota Statutes, section 462A.204. The base funding for this program in the 2016-2017 biennium is $8,519,000 each year. new text end

new text begin Subd. 6. new text end

new text begin Home Ownership Assistance Fund new text end

new text begin 830,000 new text end new text begin 830,000 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 The base funding for this program in fiscal years 2016 and 2017 is $885,000 each year. 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 subdivision, "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 2,772,000 new text end new text begin 2,772,000 new text end

new text begin This appropriation is for housing assistance for the rehabilitation of single-family homes under the housing rehabilitation program under Minnesota Statutes, section 462A.05, subdivision 14. 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 791,000 new text end new text begin 791,000 new text end

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

new text begin The base funding for this program in fiscal years 2016 and 2017 is $857,000 each year. new text end

new text begin Subd. 10. new text end

new text begin Capacity Building Grants new text end

new text begin 375,000 new text end new text begin 375,000 new text end

new text begin This appropriation is for nonprofit capacity building grants under Minnesota Statutes, section 462A.21, subdivision 3b. new text end

new text begin Subd. 11. new text end

new text begin Grants new text end

new text begin 445,000 new text end new text begin 445,000 new text end

new text begin (a) This appropriation is for the grants in paragraphs (b) to (d) and is available until expended. This appropriation is added to the agency's base. new text end

new text begin (b) $70,000 each year is for a grant to Open Access Connection to provide free voice mail services for homeless and low-income people so that they have a reliable and consistent communication tool to aid in their search for affordable housing and their search for and maintenance of jobs so that they have income to maintain affordable housing. This service is provided in the metropolitan area and through a toll-free number in greater Minnesota. new text end

new text begin (c) $200,000 each year is for a grant to HOME Line for the tenant's rights advocacy and services program. new text end

new text begin (d) $175,000 each year is for a grant to the Voice of East African Women Organization to provide safe housing for victims of domestic abuse and trafficking. The program shall provide shelter to East African women and children in Minnesota and other victims of domestic violence. This appropriation is available in either year. new text end

new text begin Subd. 12. new text end

new text begin Rental Rehabilitation new text end

new text begin 3,138,000 new text end new text begin 3,138,000 new text end

new text begin This appropriation is for the rental housing rehabilitation loan program under Minnesota Statutes, section 462A.05, subdivision 14. The base funding for this program in fiscal years 2016 and 2017 is $3,743,000 each year. new text end

new text begin Subd. 13. new text end

new text begin Transfers and Appropriations new text end

new text begin (a) The remaining balance of appropriations in Laws 2012, First Special Session chapter 1, article 1, section 7, for the economic development and housing challenge program that is unobligated to loans to homeowners or rental property owners as of June 30, 2013, estimated to be $3,000,000 is canceled to the general fund. By August 1, 2013, the commissioner of the Housing Finance Agency shall provide the commissioner of management and budget with the information necessary to determine the amount that is uncommitted and available for transfer. new text end

new text begin (b) The amount canceled to the general fund under paragraph (a) is appropriated to the Housing Finance Agency from the general fund for transfer to the housing development fund for the rehabilitation loan program under Minnesota Statutes, section 462A.05, subdivision 14. Until August 1, 2014, priority in the use of these funds shall be given to assistance for eligible homeowners residing in the area included in DR-4069 whose homes were damaged as a result of the storms and flooding that occurred June 14 to June 21, 2012. new text end

Sec. 5.

new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end new text begin 13,988,000 new text end new text begin $ new text end new text begin 13,988,000 new text end

new text begin To develop maximum private sector involvement in tourism, $500,000 in fiscal year 2014 and $500,000 in fiscal year 2015 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 2014 shall be based on fiscal year 2013 private sector contributions. The incentive in fiscal year 2015 shall be based on fiscal year 2014 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

Sec. 6.

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 22,966,000 new text end new text begin $ new text end new text begin 22,966,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 1,066,000 new text end new text begin 1,066,000 new text end
new text begin Workers' Compensation new text end new text begin 20,871,000 new text end new text begin 20,871,000 new text end
new text begin Workforce Development new text end new text begin 1,029,000 new text end new text begin 1,029,000 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 10,678,000 new text end new text begin 10,678,000 new text end

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

new text begin $200,000 each year is for grants to the Vinland Center for rehabilitation services. Grants shall be distributed as the department refers injured workers to the Vinland Center for rehabilitation services. new text end

new text begin Subd. 3. new text end

new text begin Labor Standards and Apprenticeship new text end

new text begin 2,095,000 new text end new text begin 2,095,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 1,066,000 new text end new text begin 1,066,000 new text end
new text begin Workforce Development new text end new text begin 1,029,000 new text end new text begin 1,029,000 new text end

new text begin (a) $816,000 each year is from the general fund for the labor standards and apprenticeship program. new text end

new text begin (b) $150,000 each year is from the general fund for a child labor initiative for expanding education and outreach to high schools and targeted industries to ensure minors entering the workforce are safe. new text end

new text begin (c) $879,000 each year is appropriated from the workforce development fund for the apprenticeship program under Minnesota Statutes, chapter 178, and includes $100,000 each year for labor education and advancement program grants and to expand and promote registered apprenticeship training in nonconstruction trade programs. new text end

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

new text begin (e) $70,000 each year is from the general fund for implementing and administering a minimum wage inflation adjustment. This appropriation is available only if a law is enacted in 2013 that includes an automatic inflation adjustment to the state minimum wage. The availability of this appropriation is effective in the same fiscal year that the inflation adjustment is first effective. new text end

new text begin (f) $100,000 each year is from the general fund for wage enforcement. 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 6,039,000 new text end new text begin 6,039,000 new text end

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

Sec. 7.

new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end new text begin 2,129,000 new text end new text begin $ new text end new text begin 2,033,000 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) $100,000 in fiscal year 2014 is appropriated from the general fund to the Bureau of Mediation Services for transfer to the Office of Enterprise Technology to develop a new business management system for case and document management. This is a onetime appropriation and is available for spending until June 30, 2015. Any ongoing information technology support or costs for this application will be incorporated into the service level agreement and will be paid to the Office of Enterprise Technology by the Bureau of Mediation Services under the rates and mechanism specified in that agreement. Of this amount, $25,000 each year is added to the Bureau of Mediation Services base budget to cover the information technology support costs for this application. new text end

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

new text begin (d) The bureau's general fund base is $2,058,000 in fiscal year 2016 and $2,058,000 in fiscal year 2017. new text end

Sec. 8.

new text begin BOARD OF ACCOUNTANCY new text end

new text begin $ new text end new text begin 705,000 new text end new text begin $ new text end new text begin 618,000 new text end

Sec. 9.

new text begin BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN new text end

new text begin $ new text end new text begin 774,000 new text end new text begin $ new text end new text begin 774,000 new text end

Sec. 10.

new text begin BOARD OF COSMETOLOGIST EXAMINERS new text end

new text begin $ new text end new text begin 1,346,000 new text end new text begin $ new text end new text begin 1,346,000 new text end

Sec. 11.

new text begin BOARD OF BARBER EXAMINERS new text end

new text begin $ new text end new text begin 317,000 new text end new text begin $ new text end new text begin 317,000 new text end

Sec. 12.

new text begin WORKERS' COMPENSATION COURT OF APPEALS new text end

new text begin $ new text end new text begin 1,913,000 new text end new text begin $ new text end new text begin 1,703,000 new text end

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

new text begin Of this appropriation, $210,000 is a onetime appropriation and is available for spending until June 30, 2015. $100,000 in fiscal year 2014 is appropriated from the workers' compensation fund to the Workers' Compensation Court of Appeals for transfer to the Office of Enterprise Technology to develop a paperless case management system and to ensure that services and hardware are accessible and compatible with systems with which the Workers' Compensation Court of Appeals must interact. This is a onetime appropriation and is available for spending until June 30, 2015. Any ongoing information technology support or costs for this application will be incorporated into the service level agreement and will be paid to the Office of Enterprise Technology by the Workers' Compensation Court of Appeals under the rates and mechanism specified in that agreement. new text end

Sec. 13.

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 29,006,000 new text end new text begin $ new text end new text begin 27,038,000 new text end
new text begin Appropriations by Fund new text end
new text begin 2014 new text end new text begin 2015 new text end
new text begin General new text end new text begin 26,263,000 new text end new text begin 23,995,000 new text end
new text begin Special Revenue new text end new text begin 940,000 new text end new text begin 1,240,000 new text end
new text begin Petroleum Tank new text end new text begin 1,052,000 new text end new text begin 1,052,000 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 4,885,000 new text end new text begin 4,885,000 new text end

new text begin $142,000 each year is for the regulation of mortgage originators and servicers under Minnesota Statutes, chapters 58 and 58A. 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 1,052,000 new text end new text begin 1,052,000 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 6,615,000 new text end new text begin 6,615,000 new text end

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

new text begin $25,000 each year is for newspaper advertising directed at persons who own or may own unclaimed property. By June 30 of each year, the commissioner shall submit a report to the house and senate committees with jurisdiction over the department of the results of the newspaper advertisements in returning property to the owners. This appropriation for newspaper advertising and the requirement of a report is for fiscal years 2014 and 2015 only. new text end

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

new text begin Fees for the Weights and Measures Unit are increased by 30 percent during fiscal year 2014. All fees are deposited to the general fund as nondedicated revenue. new text end

new text begin Subd. 5. new text end

new text begin Telecommunications new text end

new text begin 1,949,000 new text end new text begin 2,249,000 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 940,000 new text end new text begin 1,240,000 new text end

new text begin $940,000 in fiscal year 2014 and $1,240,000 in fiscal year 2015 are appropriated to the commissioner from the telecommunication access fund for the following transfers. This appropriation is added to the department's base. new text end

new text begin (1) $500,000 in fiscal year 2014 and $800,000 in fiscal year 2015 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 in fiscal year 2014 and $290,000 in fiscal year 2015 to the chief information officer for the purpose of coordinating technology accessibility and usability; and new text end

new text begin (3) $150,000 in fiscal year 2014 and $150,000 in fiscal year 2015 to the Legislative Coordinating Commission for captioning of legislative coverage. new text end

new text begin Subd. 6. new text end

new text begin Enforcement new text end

new text begin 4,824,000 new text end new text begin 4,820,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 4,626,000 new text end new text begin 4,622,000 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 Of the general fund amount, $646,000 in fiscal year 2014 and $642,000 in fiscal year 2015 is to establish the regulation of gold bullion dealers. This appropriation is only available if a law is enacted in 2013 to establish the regulation of gold bullion dealers. new text end

new text begin Subd. 7. new text end

new text begin Energy Resources new text end

new text begin 5,766,000 new text end new text begin 3,502,000 new text end

new text begin $2,000,000 the first year is for the weatherization assistance program. This is a onetime appropriation and is available until June 30, 2015. 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 as provided for in Minnesota Statutes, section 239.101. new text end

new text begin The general fund base budget for energy resources is $3,424,000 in fiscal year 2016 and $3,415,000 in fiscal year 2017. new text end

new text begin Subd. 8. new text end

new text begin Insurance new text end

new text begin 3,915,000 new text end new text begin 3,915,000 new text end
new text begin Appropriations by Fund new text end
new text begin General new text end new text begin 3,362,000 new text end new text begin 3,362,000 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. 14.

new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end new text begin 6,457,000 new text end new text begin $ new text end new text begin 6,441,000 new text end

new text begin The general fund base for the Public Utilities Commission is $6,241,000 in fiscal year 2016 and $6,205,000 in fiscal year 2017. new text end

Sec. 15.

new text begin TRANSFERS. new text end

new text begin (a) The deposits in each year of the biennium into the contingent account created under Minnesota Statutes, section 268.199, estimated to be $7,500,000 each year, shall be transferred before the closing of each fiscal year to the general fund. new text end

new text begin (b) By June 30, 2014, the commissioner of management and budget shall transfer $10,000,000 in assets of the workers' compensation assigned risk plan created under Minnesota Statutes, section 79.252, to the general fund. new text end

ARTICLE 2

LABOR AND INDUSTRY

Section 1.

Minnesota Statutes 2012, section 116J.70, subdivision 2a, is amended to read:

Subd. 2a.

License; exceptions.

"Business license" or "license" does not include the following:

(1) any occupational license or registration issued by a licensing board listed in section 214.01 or any occupational registration issued by the commissioner of health pursuant to section 214.13;

(2) any license issued by a county, home rule charter city, statutory city, township, or other political subdivision;

(3) any license required to practice the following occupation regulated by the following sections:

(i) abstracters regulated pursuant to chapter 386;

(ii) accountants regulated pursuant to chapter 326A;

(iii) adjusters regulated pursuant to chapter 72B;

(iv) architects regulated pursuant to chapter 326;

(v) assessors regulated pursuant to chapter 270;

(vi) athletic trainers regulated pursuant to chapter 148;

(vii) attorneys regulated pursuant to chapter 481;

(viii) auctioneers regulated pursuant to chapter 330;

(ix) barbers and cosmetologists regulated pursuant to chapter 154;

(x) boiler operators regulated pursuant to chapter deleted text begin 183deleted text end new text begin 326Bnew text end ;

(xi) chiropractors regulated pursuant to chapter 148;

(xii) collection agencies regulated pursuant to chapter 332;

(xiii) dentists, registered dental assistants, and dental hygienists regulated pursuant to chapter 150A;

(xiv) detectives regulated pursuant to chapter 326;

(xv) electricians regulated pursuant to chapter deleted text begin 326deleted text end new text begin 326Bnew text end ;

(xvi) mortuary science practitioners regulated pursuant to chapter 149A;

(xvii) engineers regulated pursuant to chapter 326;

(xviii) insurance brokers and salespersons regulated pursuant to chapter 60A;

(xix) certified interior designers regulated pursuant to chapter 326;

(xx) midwives regulated pursuant to chapter 147D;

(xxi) nursing home administrators regulated pursuant to chapter 144A;

(xxii) optometrists regulated pursuant to chapter 148;

(xxiii) osteopathic physicians regulated pursuant to chapter 147;

(xxiv) pharmacists regulated pursuant to chapter 151;

(xxv) physical therapists regulated pursuant to chapter 148;

(xxvi) physician assistants regulated pursuant to chapter 147A;

(xxvii) physicians and surgeons regulated pursuant to chapter 147;

(xxviii) plumbers regulated pursuant to chapter deleted text begin 326deleted text end new text begin 326Bnew text end ;

(xxix) podiatrists regulated pursuant to chapter 153;

(xxx) practical nurses regulated pursuant to chapter 148;

(xxxi) professional fund-raisers regulated pursuant to chapter 309;

(xxxii) psychologists regulated pursuant to chapter 148;

(xxxiii) real estate brokers, salespersons, and others regulated pursuant to chapters 82 and 83;

(xxxiv) registered nurses regulated pursuant to chapter 148;

(xxxv) securities brokers, dealers, agents, and investment advisers regulated pursuant to chapter 80A;

(xxxvi) steamfitters regulated pursuant to chapter deleted text begin 326deleted text end new text begin 326Bnew text end ;

(xxxvii) teachers and supervisory and support personnel regulated pursuant to chapter 125;

(xxxviii) veterinarians regulated pursuant to chapter 156;

(xxxix) water conditioning contractors and installers regulated pursuant to chapter deleted text begin 326deleted text end new text begin 326Bnew text end ;

(xl) water well contractors regulated pursuant to chapter 103I;

(xli) water and waste treatment operators regulated pursuant to chapter 115;

(xlii) motor carriers regulated pursuant to chapter 221;

(xliii) professional firms regulated under chapter 319B;

(xliv) real estate appraisers regulated pursuant to chapter 82B;

(xlv) residential building contractors, residential remodelers, residential roofers, manufactured home installers, and specialty contractors regulated pursuant to chapter deleted text begin 326deleted text end new text begin 326Bnew text end ;

(xlvi) licensed professional counselors regulated pursuant to chapter 148B;

(4) any driver's license required pursuant to chapter 171;

(5) any aircraft license required pursuant to chapter 360;

(6) any watercraft license required pursuant to chapter 86B;

(7) any license, permit, registration, certification, or other approval pertaining to a regulatory or management program related to the protection, conservation, or use of or interference with the resources of land, air, or water, which is required to be obtained from a state agency or instrumentality; and

(8) any pollution control rule or standard established by the Pollution Control Agency or any health rule or standard established by the commissioner of health or any licensing rule or standard established by the commissioner of human services.

Sec. 2.

Minnesota Statutes 2012, section 177.27, subdivision 4, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, 181.275, subdivision 2a, new text begin 181.722, new text end and 181.79, or with any rule promulgated under section 177.28. The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner.

Sec. 3.

Minnesota Statutes 2012, section 326.02, subdivision 5, is amended to read:

Subd. 5.

Limitation.

The provisions of sections 326.02 to 326.15 shall not apply to the preparation of plans and specifications for the erection, enlargement, or alteration of any building or other structure by any person, for that person's exclusive occupancy or use, unless such occupancy or use involves the public health or safety or the health or safety of the employees of said person, or of the buildings listed in section 326.03, subdivision 2, nor to any detailed or shop plans required to be furnished by a contractor to a registered engineer, landscape architect, architect, or certified interior designer, nor to any standardized manufactured product, nor to any construction superintendent supervising the execution of work designed by an architect, landscape architect, engineer, or certified interior designer licensed or certified in accordance with section 326.03, nor to the planning for and supervision of the construction and installation of work by an electrical new text begin or elevator new text end contractor or master plumber as defined in and licensed pursuant to chapter 326B, where such work is within the scope of such licensed activity and not within the practice of professional engineering, or architecture, or where the person does not claim to be a certified interior designer as defined in subdivision 2, 3, or 4b.

Sec. 4.

Minnesota Statutes 2012, section 326B.081, subdivision 3, is amended to read:

Subd. 3.

Applicable law.

"Applicable law" means the provisions of sections 181.723, 325E.66, 327.31 to 327.36, deleted text begin anddeleted text end this chapter, new text begin and chapter 341, new text end and all rules, orders, stipulation agreements, settlements, compliance agreements, licenses, registrations, certificates, and permits adopted, issued, or enforced by the department under sections 181.723, 325E.66, 327.31 to 327.36, deleted text begin ordeleted text end this chapternew text begin , or chapter 341new text end .

Sec. 5.

Minnesota Statutes 2012, section 326B.082, subdivision 11, is amended to read:

Subd. 11.

Licensing orders; grounds; reapplication.

(a) The commissioner may deny an application for a permit, license, registration, or certificate if the applicant does not meet or fails to maintain the minimum qualifications for holding the permit, license, registration, or certificate, or has any unresolved violations or unpaid fees or monetary penalties related to the activity for which the permit, license, registration, or certificate has been applied for or was issued.

(b) The commissioner may deny, suspend, limit, place conditions on, or revoke a person's permit, license, registration, or certificate, or censure the person holding the permit, license, registration, or certificate, if the commissioner finds that the person:

(1) committed one or more violations of the applicable law;

(2) submitted false or misleading information to the state in connection with activities for which the permit, license, registration, or certificate was issued, or in connection with the application for the permit, license, registration, or certificate;

(3) allowed the alteration or use of the person's own permit, license, registration, or certificate by another person;

(4) within the previous five years, was convicted of a crime in connection with activities for which the permit, license, registration, or certificate was issued;

(5) violatednew text begin : (i)new text end a final administrative order issued under subdivision 7 deleted text begin ordeleted text end new text begin , (ii)new text end a final stop order issued under subdivision 10, deleted text begin ordeleted text end new text begin (iii)new text end injunctive relief issued under subdivision 9new text begin , or (iv) a consent order or final order of the commissionernew text end ;

(6) failed to cooperate with a commissioner's request to give testimony, to produce documents, things, apparatus, devices, equipment, or materials, or to access property under subdivision 2;

(7) retaliated in any manner against any employee or person who is questioned by, cooperates with, or provides information to the commissioner or an employee or agent authorized by the commissioner who seeks access to property or things under subdivision 2;

(8) engaged in any fraudulent, deceptive, or dishonest act or practice; or

(9) performed work in connection with the permit, license, registration, or certificate or conducted the person's affairs in a manner that demonstrates incompetence, untrustworthiness, or financial irresponsibility.

(c) If the commissioner revokes or denies a person's permit, license, registration, or certificate under paragraph (b), the person is prohibited from reapplying for the same type of permit, license, registration, or certificate for at least two years after the effective date of the revocation or denial. The commissioner may, as a condition of reapplication, require the person to obtain a bond or comply with additional reasonable conditions the commissioner considers necessary to protect the public.

(d) If a permit, license, registration, or certificate expires, or is surrendered, withdrawn, or terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding under this subdivision within two years after the permit, license, registration, or certificate was last effective and enter a revocation or suspension order as of the last date on which the permit, license, registration, or certificate was in effect.

Sec. 6.

Minnesota Statutes 2012, section 326B.093, subdivision 4, is amended to read:

Subd. 4.

Examination results.

If the applicant receives a passing score on the examination and meets all other requirements for licensure, the commissioner must approve the application and notify the applicant of the approval within 60 days of the date of the passing score. The applicant must, within deleted text begin 90deleted text end new text begin 180new text end days after the notification of approval, pay the license fee. Upon receipt of the license fee, the commissioner must issue the license. If the applicant does not pay the license fee within deleted text begin 90deleted text end new text begin 180new text end days after the notification of approval, the commissioner will rescind the approval and must deny the application. If the applicant does not receive a passing score on the examination, the commissioner must deny the application. If the application is denied because of the applicant's failure to receive a passing score on the examination, then the applicant cannot submit a new application for the license until at least 30 days after the notification of denial.

Sec. 7.

Minnesota Statutes 2012, section 326B.101, is amended to read:

326B.101 POLICY AND PURPOSE.

The State Building Code governs the construction, reconstruction, alteration, deleted text begin anddeleted text end repairnew text begin , and usenew text end of buildings and other structures to which the code is applicable. The commissioner shall administer and amend a state code of building construction which will provide basic and uniform performance standards, establish reasonable safeguards for health, safety, welfare, comfort, and security of the residents of this state and provide for the use of modern methods, devices, materials, and techniques which will in part tend to lower construction costs. The construction of buildings should be permitted at the least possible cost consistent with recognized standards of health and safety.

Sec. 8.

Minnesota Statutes 2012, section 326B.103, subdivision 11, is amended to read:

Subd. 11.

Public building.

"Public building" means a building and its grounds the cost of which is paid for by the state or a state agency regardless of its cost, and a school district building project new text begin or charter school building project new text end the cost of which is $100,000 or more.

Sec. 9.

Minnesota Statutes 2012, section 326B.121, subdivision 1, is amended to read:

Subdivision 1.

Application.

(a) The State Building Code is the standard that applies statewide for the construction, reconstruction, alteration, deleted text begin anddeleted text end repairnew text begin , and usenew text end of buildings and other structures of the type governed by the code.

(b) The State Building Code supersedes the building code of any municipality.

(c) The State Building Code does not apply to agricultural buildings except:

(1) with respect to state inspections required or rulemaking authorized by sections 103F.141; 216C.19, subdivision 9; and 326B.36; and

(2) translucent panels or other skylights without raised curbs shall be supported to have equivalent load-bearing capacity as the surrounding roof.

Sec. 10.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Direct supervision. new text end

new text begin "Direct supervision" means: new text end

new text begin (1) an unlicensed individual is being directly supervised by an individual licensed to perform the elevator work being supervised during the entire time the unlicensed individual is performing elevator work; new text end

new text begin (2) the licensed individual is physically present at the location where the unlicensed individual is performing elevator work and immediately available to the unlicensed individual at all times for assistance and direction; new text end

new text begin (3) the licensed individual shall review the elevator work performed by the unlicensed individual before the elevator work is operated; and new text end

new text begin (4) the licensed individual is able to and does determine that all elevator work performed by the unlicensed individual is performed in compliance with the elevator code. new text end

Sec. 11.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Elevator contractor. new text end

new text begin "Elevator contractor" means a licensed contractor whose responsible licensed individual is a master elevator constructor. An elevator contractor license does not itself qualify its holder to perform or supervise elevator work authorized by holding a personal license issued by the commissioner. new text end

Sec. 12.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Limited elevator contractor. new text end

new text begin "Limited elevator contractor" means a licensed contractor whose responsible licensed individual is a limited master elevator constructor. A limited elevator contractor or its employees may only install, test, or alter residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited application elevator equipment, conveyors, and special purpose personnel elevators. new text end

Sec. 13.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Limited elevator work. new text end

new text begin "Limited elevator work" means the installing, maintaining, altering, repairing, testing, planning, or laying out of residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited application elevator equipment, conveyors, and special purpose personnel elevators as covered by Minnesota Rules, chapters 1307 and 1315. Limited elevator work also includes electrical wiring on the load side of the elevator equipment disconnect and the decommissioning of elevator equipment to enable safe removal. new text end

Sec. 14.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Elevator work. new text end

new text begin "Elevator work" means the installing, maintaining, altering, repairing, testing, planning, or laying out of elevator apparatus or equipment as covered by Minnesota Rules, chapters 1307 and 1315. Elevator work also includes the disconnection of electrical wiring on the load side of the elevator equipment disconnect and the decommissioning of elevator equipment to enable safe removal. new text end

Sec. 15.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 14. new text end

new text begin Master elevator constructor. new text end

new text begin "Master elevator constructor" means an individual having the necessary qualifications, training, experience, and technical knowledge to properly plan, lay out, supervise, and perform the installation, maintenance, altering, testing, wiring, and repair of apparatus and equipment for elevators, including electrical wiring on the load side of the elevator equipment disconnect and who is licensed as a master elevator constructor by the commissioner. new text end

Sec. 16.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 15. new text end

new text begin Limited master elevator constructor. new text end

new text begin "Limited master elevator constructor" means an individual having the necessary qualifications, training, experience, and technical knowledge to properly plan, lay out, supervise, and perform the testing, altering, installation, maintenance, and repair of wiring, apparatus, and equipment for residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited application elevator equipment, conveyors, and special purpose personnel elevators, including wiring on the load side of the elevator equipment disconnect and who is licensed as a limited master elevator constructor by the commissioner. new text end

Sec. 17.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 16. new text end

new text begin Limited journeyman elevator constructor. new text end

new text begin "Limited journeyman elevator constructor" means an individual having the necessary qualifications, training, experience, and technical knowledge to install, maintain, alter, test, and repair apparatus and equipment for residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited application elevator equipment, conveyors, and special purpose personnel elevators, including electrical wiring on the load side of the elevator equipment disconnect and who is licensed as a limited journeyman elevator constructor by the commissioner. new text end

Sec. 18.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 17. new text end

new text begin Journeyman elevator constructor. new text end

new text begin "Journeyman elevator constructor" means an individual having the necessary qualifications, training, experience, and technical knowledge to install, maintain, alter, test, and repair apparatus and equipment for elevators, including electrical wiring on the load side of the elevator equipment disconnect and who is licensed as a journeyman elevator constructor by the commissioner. new text end

Sec. 19.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 18. new text end

new text begin Registered unlicensed elevator constructor. new text end

new text begin "Registered unlicensed elevator constructor" means an individual who has registered with the department but is not licensed by the commissioner to perform elevator work. new text end

Sec. 20.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 19. new text end

new text begin Residential dwelling. new text end

new text begin "Residential dwelling" is a single dwelling unit that is contained in a one-family, two-family, or multifamily dwelling. A residential dwelling also includes outdoor space at a one-family dwelling. new text end

Sec. 21.

Minnesota Statutes 2012, section 326B.163, is amended by adding a subdivision to read:

new text begin Subd. 20. new text end

new text begin Responsible licensed individual. new text end

new text begin "Responsible licensed individual" means an individual licensed as a master elevator constructor or limited master elevator constructor who is identified as the responsible licensed individual on an elevator contractor license application. new text end

Sec. 22.

new text begin [326B.164] LICENSES. new text end

new text begin Subdivision 1. new text end

new text begin Master elevator constructor. new text end

new text begin (a) Except as otherwise provided by law, no individual shall perform or supervise elevator work, unless: new text end

new text begin (1) the individual is licensed by the commissioner as a master elevator constructor; and new text end

new text begin (2) the elevator work is for a licensed elevator contractor and the individual is an employee, partner, or officer of, or is the licensed contractor. new text end

new text begin (b) An applicant for a master elevator constructor license shall: new text end

new text begin (1) have at least one year of experience, acceptable to the commissioner, as a licensed journeyman elevator constructor; or new text end

new text begin (2) have at least six years' experience, acceptable to the commissioner, in planning for, laying out, supervising, and installing apparatus, equipment, and wiring for elevators. new text end

new text begin (c) Individuals licensed as master elevator constructors under section 326B.33, subdivision 11, as of December 31, 2013, shall not be required to pass an examination under this section but, effective January 1, 2014, shall be subject to the requirements of sections 326B.163 to 326B.191. new text end

new text begin (d) Except for the initial license term, as a condition of license renewal, master elevator constructors must attain a minimum of 16 hours of continuing education credit approved by the commissioner every renewal period. Not less than 12 hours shall be based on the Minnesota Elevator Code or elevator technology, and not less than four hours shall be based on the National Electrical Code. new text end

new text begin Subd. 2. new text end

new text begin Limited master elevator constructor. new text end

new text begin (a) Except as otherwise provided by law, no individual shall perform or supervise elevator work on residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited application elevator equipment, conveyors, and special purpose personnel elevators, unless: new text end

new text begin (1) the individual is licensed by the commissioner as a limited master elevator constructor; and new text end

new text begin (2) the elevator work is for a limited elevator contractor and the individual is an employee, partner, or officer of, or is the licensed contractor. new text end

new text begin (b) An applicant for a limited master elevator constructor license shall have at least three years of experience, acceptable to the commissioner, in installing apparatus, equipment, and wiring for elevators. new text end

new text begin (c) Except for the initial license term, as a condition of license renewal, limited master elevator constructors must attain a minimum of eight hours of continuing education credit approved by the commissioner every renewal period. Not less than six hours shall be based on the Minnesota Elevator Code or elevator technology, and not less than two hours on the National Electrical Code. new text end

new text begin Subd. 3. new text end

new text begin Journeyman elevator constructor. new text end

new text begin (a) Except as otherwise provided by law, no individual shall perform and supervise elevator work except for planning or laying out of elevator work, unless: new text end

new text begin (1) the individual is licensed by the commissioner as a journeyman elevator constructor; and new text end

new text begin (2) the elevator work is for an elevator contractor, and the individual is an employee, partner, or officer of the licensed elevator contractor. new text end

new text begin (b) An applicant for a journeyman elevator constructor license shall have completed a four-year elevator mechanics apprenticeship registered with the United States Department of Labor or worked at least 9,000 hours in five consecutive years for a licensed elevator contractor, acceptable to the commissioner, installing, maintaining, modernizing, testing, wiring, and repairing elevators. new text end

new text begin (c) Individuals licensed as journeyman elevator constructors under section 326B.33, subdivision 8, as of December 31, 2013, shall not be required to pass an examination under this section but, effective January 1, 2014, shall be subject to the requirements of sections 326B.163 to 326B.191. new text end

new text begin (d) As a condition of license renewal, journeyman elevator constructors must attain a minimum of 16 hours of continuing education credit approved by the commissioner every renewal period. Not less than 12 hours shall be based on the Minnesota Elevator Code or elevator technology, and not less than four hours shall be based on the National Electrical Code. new text end

new text begin Subd. 3a. new text end

new text begin Limited journeyman elevator constructor. new text end

new text begin (a) Except as otherwise provided by law, no individual shall perform or supervise elevator work on residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited application elevator equipment, conveyors, and special purpose personnel elevators, except for planning or laying out of elevator work, unless: new text end

new text begin (1) the individual is licensed by the commissioner as a limited journeyman elevator constructor; and new text end

new text begin (2) the elevator work is for a limited elevator contractor or an elevator contractor, and the individual is an employee, partner, or officer of the licensed limited elevator contractor or licensed elevator contractor. new text end

new text begin (b) An applicant for a limited journeyman elevator constructor license shall have at least two years of experience, acceptable to the commissioner, in installing apparatus, equipment, and wiring for elevators. new text end

new text begin (c) Except for the initial license term, as a condition of license renewal, limited journeyman elevator constructors must attain a minimum of eight hours of continuing education credit approved by the commissioner every renewal period. Not less than six hours shall be based on the Minnesota Elevator Code or elevator technology, and not less than two hours on the National Electrical Code. new text end

new text begin Subd. 4. new text end

new text begin Registered unlicensed elevator constructor. new text end

new text begin (a) An unlicensed individual shall not perform elevator work, unless the individual has first registered with the department as an unlicensed elevator constructor. Except as allowed by subdivision 12, a registered unlicensed elevator constructor shall not perform elevator work unless the work is performed under the direct supervision of an individual actually licensed to perform such work. The licensed elevator constructor and the registered unlicensed elevator constructor must be employed by the same employer. Unlicensed individuals shall not supervise the performance of elevator work or make assignments of elevator work to unlicensed individuals. Licensed elevator constructors shall provide direct supervision for no more than two registered unlicensed elevator constructors. new text end

new text begin (b) Notwithstanding any other provision of this section, no individual other than a master elevator constructor or limited master elevator constructor shall plan or lay out elevator wiring, apparatus, or equipment. new text end

new text begin (c) Contractors employing registered unlicensed elevator constructors performing elevator work shall maintain records establishing compliance with this subdivision that shall identify all unlicensed individuals performing elevator work and shall permit the department to examine and copy all such records. new text end

new text begin (d) When a licensed elevator constructor supervises the elevator work of an unlicensed individual, the licensed elevator constructor is responsible for ensuring that the elevator work complies with this section and the Minnesota Elevator Code. new text end

new text begin (e) A registered unlicensed elevator constructor with a minimum of one year experience may perform the following maintenance tasks for elevator equipment without being provided with direct supervision: oiling, cleaning, greasing, painting, relamping, and replacing of escalator and moving walk comb teeth. new text end

new text begin Subd. 5. new text end

new text begin Registration of unlicensed individuals. new text end

new text begin (a) Unlicensed individuals performing elevator work for a contractor shall register with the department in the manner prescribed by the commissioner. Experience credit for elevator work performed in Minnesota after January 1, 2009, by an applicant for a license identified in this section shall not be granted where the applicant has not registered with the department or is not licensed by the department. new text end

new text begin (b) As a condition of renewal of registration, unlicensed individuals shall attain a minimum of two hours of continuing education credit, approved by the commissioner, every renewal period. The continuing education course shall be based on the Minnesota Elevator Code or elevator technology. new text end

new text begin (c) Individuals registered under section 326B.33, subdivision 13, whose registration expires after July 31, 2013, shall be subject to the registration requirements of this subdivision and the requirements of sections 326B.163 to 326B.191. new text end

new text begin Subd. 6. new text end

new text begin Contractor's license required. new text end

new text begin (a) No individual, other than an employee, partner, or officer of a licensed contractor, as defined by section 326B.163, subdivision 10, shall perform or offer to perform elevator work with or without compensation, unless the individual obtains a contractor's license. A contractor's license does not of itself qualify its holder to perform or supervise the elevator work authorized by holding any class of personal license. new text end

new text begin (b) Companies licensed under section 326B.33, subdivision 14, as of July 31, 2013, shall not be required to comply with this subdivision. new text end

new text begin Subd. 7. new text end

new text begin Bond required. new text end

new text begin As a condition of licensing, each contractor shall give and maintain bond to the state in the sum of $25,000, conditioned upon the faithful and lawful performance of all work contracted for or performed by the contractor within the state of Minnesota, and such bond shall be for the benefit of persons injured or suffering financial loss by reason of failure of such performance. The bond shall be filed with the commissioner and shall be in lieu of all other license bonds to any other political subdivision. The bond shall be written by a corporate surety licensed to do business in the state of Minnesota. new text end

new text begin Subd. 8. new text end

new text begin Insurance required. new text end

new text begin Each elevator contractor shall have and maintain in effect general liability insurance, which includes premises and operations insurance and products and completed operations insurance, with limits of at least $100,000 per occurrence, $300,000 aggregate limit for bodily injury, and property damage insurance with limits of at least $50,000, or a policy with a single limit for bodily injury and property damage of $300,000 per occurrence and $300,000 aggregate limits. The insurance shall be written by an insurer licensed to do business in the state of Minnesota, and each contractor shall maintain on file with the commissioner a certificate evidencing such insurance. In the event of a policy cancellation, the insurer shall send written notice to the commissioner at the same time that a cancellation request is received from or a notice is sent to the insured. new text end

new text begin Subd. 9. new text end

new text begin Employment of responsible individual. new text end

new text begin (a) Each elevator contractor must designate a responsible master elevator constructor or limited master elevator constructor who shall be the responsible individual for the performance of all elevator work in accordance with the requirements of sections 326B.163 to 326B.191, all rules adopted under these sections, and all orders issued under section 326B.082. The classes of work that a licensed contractor is authorized to perform shall be limited to the classes of work that the responsible individual is allowed to perform. new text end

new text begin (b) When a contractor's license is held by an individual, sole proprietorship, partnership, limited liability company, or corporation, and the individual, proprietor, one of the partners, one of the members, or an officer of the corporation, respectively, is not the responsible master elevator constructor or limited master elevator constructor, all elevator permits shall be submitted by the responsible master elevator constructor or limited master elevator constructor. If the contractor is an individual or a sole proprietorship, the responsible master or limited master elevator constructor must be the individual, proprietor, or managing employee. If the contractor is a partnership, the responsible master or limited master elevator constructor must be a general partner or managing employee. If the licensed contractor is a limited liability company, the responsible master or limited master elevator constructor must be a chief manager or managing employee. If the contractor is a corporation, the responsible master or limited master elevator constructor must be an officer or managing employee. If the responsible master or limited master elevator constructor is a managing employee, the responsible individual must be actively engaged in performing elevator work on behalf of the contractor and cannot be employed in any capacity performing elevator work for any other elevator contractor or employer. An individual may be the responsible individual for only one contractor. new text end

new text begin (c) All applications and renewals for contractor licenses shall include a verified statement that the applicant and responsible individual are in compliance with this subdivision. new text end

new text begin Subd. 10. new text end

new text begin Examination. new text end

new text begin In addition to the other requirements described in this section and sections 326B.091 to 326B.098, as a precondition to issuance of a personal license, each applicant must pass a written or oral examination developed and administered by the commissioner to ensure the competence of each applicant for license. An oral examination shall be administered only to an applicant who furnishes a written statement from a certified teacher or other professional, trained in the area of reading disabilities, stating that the applicant has a specific reading disability that would prevent the applicant from performing satisfactorily on a written test. The oral examination shall be structured so that an applicant who passes the examination will not impair the applicant's own safety or that of others while acting as a licensed individual. new text end

new text begin Subd. 11. new text end

new text begin License, registration, and renewal fees; expiration. new text end

new text begin (a) Unless revoked or suspended under this chapter, all licenses issued or renewed under this section expire on the following schedule: new text end

new text begin (1) master licenses expire March 1 of each odd-numbered year after issuance or renewal; new text end

new text begin (2) elevator contractor licenses expire March 1 of each even-numbered year after issuance or renewal; new text end

new text begin (3) journeyman elevator constructor licenses expire two years from the date of original issuance and every two years thereafter; and new text end

new text begin (4) registrations of unlicensed individuals expire one year from the date of original issuance and every year thereafter. new text end

new text begin (b) For purposes of calculating license fees and renewal license fees required under section 326B.092: new text end

new text begin (1) the registration of an unlicensed individual under subdivision 5 shall be considered an entry-level license; new text end

new text begin (2) the journeyman elevator constructor and the limited journeyman elevator constructor shall be considered a journeyman license; new text end

new text begin (3) the master elevator constructor and limited master elevator constructor licenses shall be considered master licenses; and new text end

new text begin (4) an elevator contractor license shall be considered a business license. new text end

new text begin Subd. 12. new text end

new text begin Exemption from licensing. new text end

new text begin Employees of a licensed elevator contractor or licensed limited elevator contractor are not required to hold or obtain a license under this section or be provided with direct supervision by a licensed master elevator constructor, licensed limited master elevator constructor, licensed elevator constructor, or licensed limited elevator constructor to install, maintain, or repair platform lifts and stairway chairlifts. Unlicensed employees performing elevator work under this exemption must comply with subdivision 5. This exemption does not include the installation, maintenance, repair, or replacement of electrical wiring for elevator equipment. new text end

new text begin Subd. 13. new text end

new text begin Reciprocity. new text end

new text begin (a) The commissioner may enter into reciprocity agreements for personal licenses with another state and issue a personal license without requiring the applicant to pass an examination provided the applicant: new text end

new text begin (1) submits an application under this section; new text end

new text begin (2) pays the application and examination fee and license fee required under section 326B.092; and new text end

new text begin (3) holds a valid comparable license in the state participating in the agreement. new text end

new text begin (b) Reciprocity agreements are subject to the following: new text end

new text begin (1) the parties to the agreement must administer a statewide licensing program that includes examination and qualifying experience or training comparable to Minnesota's; new text end

new text begin (2) the experience and training requirements under which an individual applicant qualified for examination in the qualifying state must be deemed equal to or greater than required for an applicant making application in Minnesota at the time the applicant acquired the license in the qualifying state; new text end

new text begin (3) the applicant must have acquired the license in the qualifying state through an examination deemed equivalent to the same class of license examination in Minnesota. A lesser class of license may be granted where the applicant has acquired a greater class of license in the qualifying state, and the applicant otherwise meets the conditions of this subdivision; new text end

new text begin (4) at the time of application, the applicant must hold a valid license in the qualifying state and have held the license continuously for at least one year before making application in Minnesota; new text end

new text begin (5) an applicant is not eligible for a license under this subdivision if the applicant has failed the same or greater class of license examination in Minnesota, or if the applicant's license of the same or greater class has been revoked or suspended; and new text end

new text begin (6) an applicant who has failed to renew a personal license for two years or more after its expiration is not eligible for a license under this subdivision. new text end

Sec. 23.

Minnesota Statutes 2012, section 326B.184, subdivision 1, is amended to read:

Subdivision 1.

Permits.

No person may construct, install, alter, new text begin repair, new text end or remove an elevator without first filing an application for a permit with the department or a municipality authorized by subdivision 4 to inspect elevators.new text begin A permit issued by the department is valid for work commenced within 12 months of application and completed within two years of application. Where no work is commenced within 12 months of application, an applicant may cancel the permit and request a refund of inspection fees.new text end

Sec. 24.

Minnesota Statutes 2012, section 326B.184, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Department permit and inspection fees. new text end

new text begin (a) The department permit and inspection fees to construct, install, alter, repair, or remove an elevator are as follows: new text end

new text begin (1) the permit fee is $100; new text end

new text begin (2) the inspection fee is 0.015 of the total cost of the permitted work for labor and materials, including related electrical and mechanical equipment. The inspection fee covers two inspections. The inspection fee for additional inspections is $80 per hour; new text end

new text begin (3) when inspections scheduled by the permit submitter are not able to be completed because the work is not complete, a fee equal to two hours at the hourly rate of $80 must be paid by the permit submitter; and new text end

new text begin (4) when the owner or permit holder requests inspections be performed outside of normal work hours or on weekends or holidays, an hourly rate of $120 in addition to the inspection fee must be paid. new text end

new text begin (b) The department fees for inspection of existing elevators when requested by the elevator owner or as a result of an accident resulting in personal injury are at an hourly rate of $80 during normal work hours or $120 outside of normal work hours or on weekends or holidays, with a one-hour minimum. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014. new text end

Sec. 25.

Minnesota Statutes 2012, section 326B.184, subdivision 2, is amended to read:

Subd. 2.

Operating permits and fees; periodic inspections.

(a) No person may operate an elevator without first obtaining an annual operating permit from the department or a municipality authorized by subdivision 4 to issue annual operating permits. A $100 annual operating permit fee must be paid to the department for each annual operating permit issued by the department, except that the original annual operating permit must be included in the permit fee for the initial installation of the elevator. Annual operating permits must be issued at 12-month intervals from the date of the initial annual operating permit. For each subsequent year, an owner must be granted an annual operating permit for the elevator upon the owner's or owner's agent's submission of a form prescribed by the commissioner and payment of the $100 fee. Each form must include the location of the elevator, the results of any periodic test required by the code, and any other criteria established by rule. An annual operating permit may be revoked by the commissioner upon an audit of the periodic testing results submitted with the application or a failure to comply with elevator code requirements, inspections, or any other law related to elevators. Except for an initial operating permit fee, hand-powered manlifts and electric endless belt manliftsnew text begin ,new text end new text begin and vertical reciprocating conveyors new text end are not subject to a subsequent operating permit fee.

(b) All elevators are subject to periodic inspections by the department or a municipality authorized by subdivision 4 to perform periodic inspections, except that hand-powered manlifts and electric endless belt manlifts are exempt from periodic inspections. Periodic inspections by the department shall be performed at the following intervals:

(1) a special purpose personnel elevator is subject to inspection not more than once every five years;

(2) an elevator located within a house of worship that does not have attached school facilities is subject to inspection not more than once every three years; and

(3) all other elevators are subject to inspection not more than once each year.

Sec. 26.

Minnesota Statutes 2012, section 326B.187, is amended to read:

326B.187 RULES.

The commissioner may adopt rules for the following purposes:

(1) to establish minimum qualifications for elevator inspectors that must include possession of a current elevator constructor deleted text begin electrician'sdeleted text end license issued by the department and proof of successful completion of the national elevator industry education program examination or equivalent experience;

(2) to establish minimum qualifications for limited elevator inspectors;

(3) to establish criteria for the qualifications of elevator contractors;

(4) to establish elevator standards under sections 326B.106, subdivisions 1 and 3, and 326B.13;

(5) to establish procedures for appeals of decisions of the commissioner under chapter 14 and procedures allowing the commissioner, before issuing a decision, to seek advice from the elevator trade, building owners or managers, and others knowledgeable in the installation, construction, and repair of elevators; and

(6) to establish requirements for the registration of all elevators.

Sec. 27.

Minnesota Statutes 2012, section 326B.31, is amended by adding a subdivision to read:

new text begin Subd. 26a. new text end

new text begin Request for inspection. new text end

new text begin "Request for inspection" means the application for and issuance of a permit for an electrical installation that is required to be inspected under section 326B.36. new text end

Sec. 28.

Minnesota Statutes 2012, section 326B.33, subdivision 19, is amended to read:

Subd. 19.

License, registration, and renewal fees; expiration.

(a) Unless revoked or suspended under this chapter, all licenses issued or renewed under this section expire on the date specified in this subdivision. Master licenses expire March 1 of each odd-numbered year after issuance or renewal. Electrical contractor licenses expire March 1 of each even-numbered year after issuance or renewal. Technology system contractor and satellite system contractor licenses expire August 1 of each even-numbered year after issuance or renewal. All other personal licenses expire two years from the date of original issuance and every two years thereafter. Registrations of unlicensed individuals expire one year from the date of original issuance and every year thereafter.

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

(1) the registration of an unlicensed individual under subdivision 12 shall be considered an entry level license;

(2) the following licenses shall be considered journeyman licenses: Class A journeyman electrician, Class B journeyman electrician, Class A installer, Class B installer, deleted text begin elevator constructor,deleted text end lineman, maintenance electrician, satellite system installer, and power limited technician;

(3) the following licenses shall be considered master licenses: Class A master electriciandeleted text begin ,deleted text end new text begin andnew text end Class B master electriciandeleted text begin , and master elevator constructordeleted text end ; and

(4) the following licenses shall be considered business licenses: Class A electrical contractor, Class B electrical contractor, deleted text begin elevator contractor,deleted text end satellite system contractor, and technology systems contractor.

(c) For each filing of a certificate of responsible person by an employer, the fee is $100.

Sec. 29.

Minnesota Statutes 2012, section 326B.33, subdivision 21, is amended to read:

Subd. 21.

Exemptions from licensing.

(a) An individual who is a maintenance electrician is not required to hold or obtain a license under sections 326B.31 to 326B.399 if:

(1) the individual is engaged in the maintenance and repair of electrical equipment, apparatus, and facilities that are owned or leased by the individual's employer and that are located within the limits of property operated, maintained, and either owned or leased by the individual's employer;

(2) the individual is supervised by:

(i) the responsible master electrician for a contractor who has contracted with the individual's employer to provide services for which a contractor's license is required; or

(ii) a licensed master electrician, a licensed maintenance electrician, an electrical engineer, or, if the maintenance and repair work is limited to technology circuits or systems work, a licensed power limited technician; and

(3) the individual's employer has on file with the commissioner a current certificate of responsible person, signed by the responsible master electrician of the contractor, the licensed master electrician, the licensed maintenance electrician, the electrical engineer, or the licensed power limited technician, and stating that the person signing the certificate is responsible for ensuring that the maintenance and repair work performed by the employer's employees complies with the Minnesota Electrical Act and the rules adopted under that act. The employer must pay a filing fee to file a certificate of responsible person with the commissioner. The certificate shall expire two years from the date of filing. In order to maintain a current certificate of responsible person, the employer must resubmit a certificate of responsible person, with a filing fee, no later than two years from the date of the previous submittal.

(b) Employees of a licensed electrical or technology systems contractor or other employer where provided with supervision by a master electrician in accordance with subdivision 1, or power limited technician in accordance with subdivision 7, paragraph (a), clause (1), are not required to hold a license under sections 326B.31 to 326B.399 for the planning, laying out, installing, altering, and repairing of technology circuits or systems except planning, laying out, or installing:

(1) in other than residential dwellings, class 2 or class 3 remote control circuits that control circuits or systems other than class 2 or class 3, except circuits that interconnect these systems through communication, alarm, and security systems are exempted from this paragraph;

(2) class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing physically unprotected circuits other than class 2 or class 3; or

(3) technology circuits or systems in hazardous classified locations as covered by chapter 5 of the National Electrical Code.

(c) Companies and their employees that plan, lay out, install, alter, or repair class 2 and class 3 remote control wiring associated with plug or cord and plug connected appliances other than security or fire alarm systems installed in a residential dwelling are not required to hold a license under sections 326B.31 to 326B.399.

(d) Heating, ventilating, air conditioning, and refrigeration contractors and their employees are not required to hold or obtain a license under sections 326B.31 to 326B.399 when performing heating, ventilating, air conditioning, or refrigeration work as described in section 326B.38.

(e) Employees of any electrical, communications, or railway utility, cable communications company as defined in section 238.02, or a telephone company as defined under section 237.01 or its employees, or of any independent contractor performing work on behalf of any such utility, cable communications company, or telephone company, shall not be required to hold a license under sections 326B.31 to 326B.399:

(1) while performing work on installations, materials, or equipment which are owned or leased, and operated and maintained by such utility, cable communications company, or telephone company in the exercise of its utility, antenna, or telephone function, and which

(i) are used exclusively for the generation, transformation, distribution, transmission, or metering of electric current, or the operation of railway signals, or the transmission of intelligence and do not have as a principal function the consumption or use of electric current or provided service by or for the benefit of any person other than such utility, cable communications company, or telephone company, and

(ii) are generally accessible only to employees of such utility, cable communications company, or telephone company or persons acting under its control or direction, and

(iii) are not on the load side of the service point or point of entrance for communication systems;

(2) while performing work on installations, materials, or equipment which are a part of the street lighting operations of such utility; or

(3) while installing or performing work on outdoor area lights which are directly connected to a utility's distribution system and located upon the utility's distribution poles, and which are generally accessible only to employees of such utility or persons acting under its control or direction.

(f) An owner shall not be required to hold or obtain a license under sections 326B.31 to 326B.399.

new text begin (g) Companies and their employees licensed under section 326B.164 shall not be required to hold or obtain a license under sections 326B.31 to 326B.399 while performing elevator work. new text end

Sec. 30.

Minnesota Statutes 2012, section 326B.36, subdivision 7, is amended to read:

Subd. 7.

Exemptions from inspections.

Installations, materials, or equipment shall not be subject to inspection under sections 326B.31 to 326B.399:

(1) when owned or leased, operated and maintained by any employer whose maintenance electricians are exempt from licensing under sections 326B.31 to 326B.399, while performing electrical maintenance work only as defined by rule;

(2) when owned or leased, and operated and maintained by any electrical, communications, or railway utility, cable communications company as defined in section 238.02, or telephone company as defined under section 237.01, in the exercise of its utility, antenna, or telephone function; and

(i) are used exclusively for the generations, transformation, distribution, transmission, or metering of electric current, or the operation of railway signals, or the transmission of intelligence, and do not have as a principal function the consumption or use of electric current by or for the benefit of any person other than such utility, cable communications company, or telephone company; and

(ii) are generally accessible only to employees of such utility, cable communications company, or telephone company or persons acting under its control or direction; and

(iii) are not on the load side of the service point or point of entrance for communication systems;

(3) when used in the street lighting operations of an electrical utility;

(4) when used as outdoor area lights which are owned and operated by an electrical utility and which are connected directly to its distribution system and located upon the utility's distribution poles, and which are generally accessible only to employees of such utility or persons acting under its control or direction;

(5) when the installation, material, and equipment are in facilities subject to the jurisdiction of the federal Mine Safety and Health Act; or

(6) when the installation, material, and equipment is part of an elevator installation for which the elevator contractor, licensed under section deleted text begin 326B.33deleted text end new text begin 326B.164new text end , is required to obtain a permit from the authority having jurisdiction as provided by section 326B.184, and the inspection has been or will be performed by an elevator inspector certified and licensed by the department. This exemption shall apply only to installations, material, and equipment permitted or required to be connected on the load side of the disconnecting means required for elevator equipment under National Electrical Code Article 620, and elevator communications and alarm systems within the machine room, car, hoistway, or elevator lobby.

Sec. 31.

Minnesota Statutes 2012, section 326B.37, is amended by adding a subdivision to read:

new text begin Subd. 15. new text end

new text begin Utility interconnected wind generation installations. new text end

new text begin (a) Fees associated with utility interconnected generation installations consisting of one or more generator sources interconnected with a utility power system and not supplying other premises loads are calculated according to paragraph (b) or (c). new text end

new text begin (b) The inspection fee is calculated according to subdivisions 2, 3, 4, and 6, paragraphs (d), (f), (j), and (k). A fee must be included for the generators and utility interconnect feeders, but not for a utility service. new text end

new text begin (c) There is a plan review fee and an inspection fee for the entire electrical installation. The plan review fee is based on the valuation of the electrical installation related to one of the generator systems that is part of the overall installation, not to include the supporting tower or other nonelectrical equipment or structures, calculated according to section 326B.153, subdivision 2. The inspection fee is $80 for each individual tower, including any voltage matching transformers located at the tower, and the fee for the feeders interconnecting the individual towers to the utility power system is calculated according to subdivisions 4 and 6, paragraph (k). new text end

Sec. 32.

Minnesota Statutes 2012, section 326B.43, subdivision 2, is amended to read:

Subd. 2.

Agreement with municipality.

The commissioner may enter into an agreement with a municipality, in which the municipality agrees to perform plan and specification reviews required to be performed by the commissioner under Minnesota Rules, part 4715.3130, if:

(a) the municipality has adopted:

(1) the plumbing code;

(2) an ordinance that requires plumbing plans and specifications to be submitted to, reviewed, and approved by the municipality, except as provided in paragraph (n);

(3) an ordinance that authorizes the municipality to perform inspections required by the plumbing code; and

(4) an ordinance that authorizes the municipality to enforce the plumbing code in its entirety, except as provided in paragraph (p);

(b) the municipality agrees to review plumbing plans and specifications for all construction for which the plumbing code requires the review of plumbing plans and specifications, except as provided in paragraph (n);

(c) the municipality agrees that, when it reviews plumbing plans and specifications under paragraph (b), the review will:

(1) reflect the degree to which the plans and specifications affect the public health and conform to the provisions of the plumbing code;

(2) ensure that there is no physical connection between water supply systems that are safe for domestic use and those that are unsafe for domestic use; and

(3) ensure that there is no apparatus through which unsafe water may be discharged or drawn into a safe water supply system;

(d) the municipality agrees to perform all inspections required by the plumbing code in connection with projects for which the municipality reviews plumbing plans and specifications under paragraph (b);

(e) the commissioner determines that the individuals who will conduct the inspections and the plumbing plan and specification reviews for the municipality do not have any conflict of interest in conducting the inspections and the plan and specification reviews;

(f) individuals who will conduct the plumbing plan and specification reviews for the municipality are:

(1) licensed master plumbers;

(2) licensed professional engineers; or

(3) individuals who are working under the supervision of a licensed professional engineer or licensed master plumber and who are licensed master or journeyman plumbers or hold a postsecondary degree in engineering;

(g) individuals who will conduct the plumbing plan and specification reviews for the municipality have passed a competency assessment required by the commissioner to assess the individual's competency at reviewing plumbing plans and specifications;

(h) individuals who will conduct the plumbing inspections for the municipality are licensed master or journeyman plumbers, or inspectors meeting the competency requirements established in rules adopted under section 326B.135;

(i) the municipality agrees to enforce in its entirety the plumbing code on all projects, except as provided in paragraph (p);

(j) the municipality agrees to keep official records of all documents received, including plans, specifications, surveys, and plot plans, and of all plan reviews, permits and certificates issued, reports of inspections, and notices issued in connection with plumbing inspections and the review of plumbing plans and specifications;

(k) the municipality agrees to maintain the records described in paragraph (j) in the official records of the municipality for the period required for the retention of public records under section 138.17, and shall make these records readily available for review at the request of the commissioner;

(l) the municipality and the commissioner agree that if at any time during the agreement the municipality does not have in effect the plumbing code or any of ordinances described in paragraph (a), or if the commissioner determines that the municipality is not properly administering and enforcing the plumbing code or is otherwise not complying with the agreement:

(1) the commissioner may, effective 14 days after the municipality's receipt of written notice, terminate the agreement;

(2) the municipality may challenge the termination in a contested case before the commissioner pursuant to the Administrative Procedure Act; and

(3) while any challenge is pending under clause (2), the commissioner shall perform plan and specification reviews within the municipality under Minnesota Rules, part 4715.3130;

(m) the municipality and the commissioner agree that the municipality may terminate the agreement with or without cause on 90 days' written notice to the commissioner;

(n) the municipality and the commissioner agree that the municipality shall forward to the state for review all plumbing plans and specifications for the following types of projects within the municipality:

(1) deleted text begin hospitals, nursing homes, supervised living facilities licensed for eight or more individuals, and similar health-care-related facilities regulated by the Minnesota Department of Healthdeleted text end new text begin state-licensed facilities as defined in section 326B.103, subdivision 13new text end ;

(2) deleted text begin buildings owned by the federal or state governmentdeleted text end new text begin public buildings as defined in section 326B.103, subdivision 11new text end ; and

(3) projects of a special nature for which department review is requested by either the municipality or the state;

(o) where the municipality forwards to the state for review plumbing plans and specifications, as provided in paragraph (n), the municipality shall not collect any fee for plan review, and the commissioner shall collect all applicable fees for plan review; and

(p) no municipality shall revoke, suspend, or place restrictions on any plumbing license issued by the state.

Sec. 33.

Minnesota Statutes 2012, section 326B.49, subdivision 2, is amended to read:

Subd. 2.

Fees for plan reviews and audits.

Plumbing system plans and specifications that are submitted to the commissioner for review shall be accompanied by the appropriate plan examination fees. If the commissioner determines, upon review of the plans, that inadequate fees were paid, the necessary additional fees shall be paid prior to plan approval. The commissioner shall charge the following fees for plan reviews and audits of plumbing installations for public, commercial, and industrial buildings:

(1) systems with both water distribution and drain, waste, and vent systems and having:

(i) 25 or fewer drainage fixture units, $150;

(ii) 26 to 50 drainage fixture units, $250;

(iii) 51 to 150 drainage fixture units, $350;

(iv) 151 to 249 drainage fixture units, $500;

(v) 250 or more drainage fixture units, $3 per drainage fixture unit to a maximum of $4,000; and

(vi) interceptors, separators, or catch basins, $70 per interceptor, separator, or catch basin design;

(2) building sewer service only, $150;

(3) building water service only, $150;

(4) building water distribution system only, no drainage system, $5 per supply fixture unit or $150, whichever is greater;

(5) storm drainage system, a minimum fee of $150 or:

(i) $50 per drain opening, up to a maximum of $500; and

(ii) $70 per interceptor, separator, or catch basin design;

(6) manufactured home park or campground, one to 25 sites, $300;

(7) manufactured home park or campground, 26 to 50 sites, $350;

(8) manufactured home park or campground, 51 to 125 sites, $400;

(9) manufactured home park or campground, more than 125 sites, $500;new text begin andnew text end

deleted text begin (10) accelerated review, double the regular fee, one-half to be refunded if no response from the commissioner within 15 business days; and deleted text end

deleted text begin (11)deleted text end new text begin (10)new text end revision to previously reviewed or incomplete plans:

(i) review of plans for which the commissioner has issued two or more requests for additional information, per review, $100 or ten percent of the original fee, whichever is greater;

(ii) proposer-requested revision with no increase in project scope, $50 or ten percent of original fee, whichever is greater; and

(iii) proposer-requested revision with an increase in project scope, $50 plus the difference between the original project fee and the revised project fee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014. new text end

Sec. 34.

Minnesota Statutes 2012, section 326B.49, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Inspectiondeleted text end new text begin Permits;new text end fees.

deleted text begin The commissioner shall charge the following fees for inspections under sections 326B.42 to 326B.49: deleted text end

deleted text begin Residential inspection fee (each visit) deleted text end deleted text begin $ deleted text end deleted text begin 50 deleted text end
deleted text begin Public, Commercial, and Industrial Inspections deleted text end deleted text begin Inspection Fee deleted text end
deleted text begin 25 or fewer drainage fixture units deleted text end deleted text begin $ deleted text end deleted text begin 300 deleted text end
deleted text begin 26 to 50 drainage fixture units deleted text end deleted text begin $ deleted text end deleted text begin 900 deleted text end
deleted text begin 51 to 150 drainage fixture units deleted text end deleted text begin $ deleted text end deleted text begin 1,200 deleted text end
deleted text begin 151 to 249 drainage fixture units deleted text end deleted text begin $ deleted text end deleted text begin 1,500 deleted text end
deleted text begin 250 or more drainage fixture units deleted text end deleted text begin $ deleted text end deleted text begin 1,800 deleted text end
deleted text begin Callback fee (each visit) deleted text end deleted text begin $ deleted text end deleted text begin 100 deleted text end

new text begin (a) Before commencement of a plumbing installation to be inspected by the commissioner, the plumbing contractor or registered plumbing employer performing the plumbing work must submit to the commissioner an application for a permit and the permit and inspection fees in paragraphs (b) to (f). new text end

new text begin (b) The permit fee is $100. new text end

new text begin (c) The residential inspection fee is $50 for each inspection trip. new text end

new text begin (d) The public, commercial, and industrial inspection fees are as follows: new text end

new text begin (1) for systems with water distribution, drain, waste, and vent system connection: new text end

new text begin (i) $25 for each fixture, permanently connected appliance, floor drain, or other appurtenance; new text end

new text begin (ii) $25 for each water conditioning, water treatment, or water filtration system; and new text end

new text begin (iii) $25 for each interceptor, separator, catch basin, or manhole; new text end

new text begin (2) roof drains, $25 for each drain; new text end

new text begin (3) building sewer service only, $100; new text end

new text begin (4) building water service only, $100; new text end

new text begin (5) building water distribution system only, no drainage system, $5 for each fixture supplied; new text end

new text begin (6) storm drainage system, a minimum fee of $25 for each drain opening, interceptor, separator, or catch basin; new text end

new text begin (7) manufactured home park or campground, $25 for each site; new text end

new text begin (8) reinspection fee to verify corrections, regardless of the total fee submitted, $100 for each reinspection; and new text end

new text begin (9) each $100 in fees paid covers one inspection trip. new text end

new text begin (e) In addition to the fees in paragraph (c), the fee submitter must pay an hourly rate of $80 during regular business hours, or $120 when inspections are requested to be performed outside of normal work hours or on weekends and holidays, with a two-hour minimum where the fee submitter requests inspections of installations as systems are being installed. new text end

new text begin (f) The fee submitter must pay a fee equal to two hours at the hourly rate of $80 when inspections scheduled by the submitter are not able to be completed because the work is not complete. new text end

Sec. 35.

Minnesota Statutes 2012, 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.

(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 developernew text begin or any owner using, or intending to use, the property for a business purpose and not as owner-occupied residential real estatenew text end .

Sec. 36.

Minnesota Statutes 2012, section 327B.04, subdivision 4, is amended to read:

Subd. 4.

License prerequisites.

No application shall be granted nor license issued until the applicant proves to the commissioner that:

(a) the applicant has a permanent, established place of business at each licensed location. An "established place of business" means a permanent enclosed building other than a residence, or a commercial office space, either owned by the applicant or leased by the applicant for a term of at least one year, located in an area where zoning regulations allow commercial activity, and where the books, records and files necessary to conduct the business are kept and maintained. The owner of a licensed manufactured home park who resides in or adjacent to the park may use the residence as the established place of business required by this subdivision, unless prohibited by local zoning ordinance.

If a license is granted, the licensee may use unimproved lots and premises for sale, storage, and display of manufactured homes, if the licensee first notifies the commissioner in writing;

(b) if the applicant desires to sell, solicit or advertise the sale of new manufactured homes, it has a bona fide contract or franchise in effect with a manufacturer or distributor of the new manufactured home it proposes to deal in;

(c) the applicant has secured: (1) a surety bond in the amount of $20,000 for each agency and each subagency location that bears the applicant's name and the name under which the applicant will be licensed and do business in this state. Each bond is for the protection of consumer customers, and must be executed by the applicant as principal and issued by a surety company admitted to do business in this state. Each bond shall be exclusively for the purpose of reimbursing consumer customers and shall be conditioned upon the faithful compliance by the applicant with all of the laws and rules of this state pertaining to the applicant's business as a dealer or manufacturer, including sections 325D.44, 325F.67 and 325F.69, and upon the applicant's faithful performance of all its legal obligations to consumer customers; and (2) a certificate of liability insurance in the amount of $1,000,000 that provides aggregate coverage for the agency and each subagency location. In the event of a policy cancellation, the insurer shall send written notice to the commissioner at the same time that a cancellation request is received from or a notice is sent to the insured;

(d) the applicant has established a trust account as required by section 327B.08, subdivision 3, unless the applicant states in writing its intention to limit its business to selling, offering for sale, soliciting or advertising the sale of new manufactured homes; and

(e) the applicant has provided evidence of having had at least two years' prior experience in the sale of manufactured homes, working for a licensed dealer.new text begin The applicant does not have to satisfy the two-year prior experience requirement if:new text end

new text begin (1) the applicant sells or brokers used manufactured homes as permitted under section 327B.01, subdivision 7; or new text end

new text begin (2) the applicant: new text end

new text begin (i) has met all other licensing requirements; new text end

new text begin (ii) is the owner of a manufactured home park; and new text end

new text begin (iii) is selling new manufactured homes installed in the manufactured home park that the applicant owns. new text end

Sec. 37.

Minnesota Statutes 2012, section 341.21, subdivision 3a, is amended to read:

Subd. 3a.

Commissioner.

"Commissioner" means the commissioner of labor and industrynew text begin or a duly designated representative of the commissioner who is either an employee of the Department of Labor and Industry or a person working under contract with the departmentnew text end .

Sec. 38.

Minnesota Statutes 2012, section 341.221, is amended to read:

341.221 ADVISORY COUNCIL.

(a) The commissioner must appoint a Combative Sports Advisory Council to advise the commissioner on the administration of duties under this chapter.

(b) The council shall have nine members appointed by the commissioner. One member must be a retired judge of the Minnesota District Court, Minnesota Court of Appeals, Minnesota Supreme Court, the United States District Court for the District of Minnesota, or the Eighth Circuit Court of Appeals. At least four members must have knowledge of the boxing industry. At least four members must have knowledge of the mixed martial arts industry. The commissioner shall make serious efforts to appoint qualified women to serve on the council.

(c) Council members shall serve terms of four years with the terms ending on the first Monday in January.

(d) The council shall annually elect from its membership a chair.

(e) deleted text begin The commissioner shall convene the first meeting of the council by July 1, 2012. The council shall elect a chair at its first meeting. Thereafter,deleted text end Meetings shall be convened by the commissioner, or by the chair with the approval of the commissioner.

(f) deleted text begin For the first appointments to the council, the commissioner shall appoint the members currently serving on the Combative Sports Commission established under section 341.22, to the council.deleted text end The commissioner shall designate two of the members to serve until the first Monday in January 2013; two members to serve until the first Monday in January 2014; two members to serve until the first Monday in January 2015; and three members to serve until the first Monday in January 2016.

(g) Removal of members, filling of vacancies, and compensation of members shall be as provided in section 15.059.

Sec. 39.

Minnesota Statutes 2012, section 341.27, is amended to read:

341.27 COMMISSIONER DUTIES.

The commissioner shall:

(1) issue, deny, renew, suspend, or revoke licenses;

(2) make and maintain records of its acts and proceedings including the issuance, denial, renewal, suspension, or revocation of licenses;

(3) keep public records of the council open to inspection at all reasonable times;

(4) develop rules to be implemented under this chapter;

(5) conform to the rules adopted under this chapter;

(6) develop policies and procedures for regulating new text begin boxing and new text end mixed martial arts; deleted text begin anddeleted text end

(7) immediately suspend an individual license for a medical condition, including but not limited to a medical condition resulting from an injury sustained during a match, bout, or contest that has been confirmed by the ringside physician. The medical suspension must be lifted after the commissioner receives written information from a physician licensed in the home state of the licensee indicating that the combatant may resume competition, and any other information that the commissioner may by rule require. Medical suspensions are not subject to section deleted text begin 214.10.deleted text end new text begin 326B.082 or the contested case procedures provided in sections 14.57 to 14.69; andnew text end

new text begin (8) immediately suspend an individual combatant license for a mandatory rest period, which must commence at the conclusion of every combative sports contest in which the license holder competes and does not receive a medical suspension. A rest suspension must automatically lift after seven calendar days from the date the combative sports contest passed without notice or additional proceedings. Rest suspensions are not subject to section 326B.082 or the contested case procedures provided in sections 14.57 to 14.69. new text end

Sec. 40.

Minnesota Statutes 2012, section 341.29, is amended to read:

341.29 JURISDICTION OF COMMISSIONER.

The commissioner shall:

(1) have sole direction, supervision, regulation, control, and jurisdiction over all combative sport contests that are held within this state unless a contest is exempt from the application of this chapter under federal law;

(2) have sole control, authority, and jurisdiction over all licenses required by this chapter; deleted text begin anddeleted text end

(3) grant a license to an applicant if, in the judgment of the commissioner, the financial responsibility, experience, character, and general fitness of the applicant are consistent with the public interest, convenience, or necessity and the best interests of combative sports and conforms with this chapter and the commissioner's rulesdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (4) deny, suspend, or revoke a license using the enforcement provisions of section 326B.082. new text end

Sec. 41.

Minnesota Statutes 2012, section 341.30, subdivision 4, is amended to read:

Subd. 4.

Prelicensure requirements.

(a) Before the commissioner issues a license to a promoter, corporation, or other business entity, the applicant shall:

(1) provide the commissioner with a copy of any agreement between a combatant and the applicant that binds the applicant to pay the combatant a certain fixed fee or percentage of the gate receipts;

(2) show on the application the owner or owners of the applicant entity and the percentage of interest held by each owner holding a 25 percent or more interest in the applicant;

(3) provide the commissioner with a copy of the latest financial statement of the entity; and

(4) provide the commissioner with a copy or other proof acceptable to the commissioner of the insurance contract or policy required by this chapter.

(b) Before the commissioner issues a license to a promoter, the applicant shall deposit with the commissioner a cash bond or surety bond in an amount set by the commissionernew text begin , which must not be less than $10,000new text end . The bond shall be executed in favor of this state and shall be conditioned on the faithful performance by the promoter of the promoter's obligations under this chapter and the rules adopted under it. An applicant for a license as a promoter new text begin and licensed promoters new text end shall submit an application new text begin for each event new text end a minimum of six weeks before the combative sport contest is scheduled to occur.

(c) Before the commissioner issues a license to a combatant, the applicant shall submit to the commissionernew text begin :new text end

new text begin (1) a mixed martial arts combatant national identification number or federal boxing identification number that is unique to the applicant, or both; and new text end

new text begin (2)new text end the results of a current medical examination on forms furnished or approved by the commissioner. The medical examination must include an ophthalmological and neurological examination, and documentation of test results for HBV, HCV, and HIV, and any other blood test as the commissioner by rule may require. The ophthalmological examination must be designed to detect any retinal defects or other damage or condition of the eye that could be aggravated by combative sports. The neurological examination must include an electroencephalogram or medically superior test if the combatant has been knocked unconscious in a previous contest. The commissioner may also order an electroencephalogram or other appropriate neurological or physical examination before any contest if it determines that the examination is desirable to protect the health of the combatant. The commissioner shall not issue a license to an applicant submitting positive test results for HBV, HCV, or HIV.

Sec. 42.

Minnesota Statutes 2012, section 341.32, subdivision 2, is amended to read:

Subd. 2.

Expiration and renewal.

deleted text begin A license issued after July 1, 2007, is valid for one year from the date it is issued anddeleted text end new text begin Licenses expire annually on December 31, andnew text end may be renewed by filing an application for renewal with the commissioner and payment of the license fees established in section 341.321. An application for a license and renewal of a license must be on a form provided by the commissioner. There is a 30-day grace period during which a license may be renewed if a late filing penalty fee equal to the license fee is submitted with the regular license fee. A licensee that files late shall not conduct any activity regulated by this chapter until the commissioner has renewed the license. If the licensee fails to apply to the commissioner within the 30-day grace period, the licensee must apply for a new license under subdivision 1.

Sec. 43.

Minnesota Statutes 2012, section 341.321, is amended to read:

341.321 FEE SCHEDULE.

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

(1) referees, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(2) promoters, deleted text begin $400deleted text end new text begin $700new text end for each initial license and each renewal;

(3) judges and knockdown judges, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(4) trainers, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(5) ring announcers, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(6) seconds, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(7) timekeepers, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(8) combatants, deleted text begin $45deleted text end new text begin $100new text end for each initial license and each renewal;

(9) managers, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal; and

(10) ringside physicians, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal.

In addition to the license fee and the late filing penalty fee in section 341.32, subdivision 2, if applicable, an individual who applies for a professional license on the same day the combative sporting event is held shall pay a late fee of $100 plus the original license fee of deleted text begin $45deleted text end new text begin $120new text end at the time the application is submitted.

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

(1) referees, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(2) promoters, deleted text begin $400deleted text end new text begin $700new text end for each initial license and each renewal;

(3) judges and knockdown judges, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(4) trainers, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(5) ring announcers, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(6) seconds, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(7) timekeepers, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal;

(8) combatant, deleted text begin $25deleted text end new text begin $60new text end for each initial license and each renewal;

(9) managers, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal; and

(10) ringside physicians, deleted text begin $45deleted text end new text begin $80new text end for each initial license and each renewal.

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

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

Sec. 44.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 326B.31, subdivisions 18, 19, and 22; and 326B.978, subdivision 4, new text end new text begin are repealed. new text end

new text begin (b) new text end new text begin Minnesota Rules, part 1307.0032, new text end new text begin is repealed effective December 31, 2013. new text end

new text begin (c) new text end new text begin Minnesota Rules, parts 3800.3520, subpart 5, items C and D; and 3800.3602, subpart 2, item B, new text end new text begin subitems (5) and (6), are repealed. new text end

ARTICLE 3

EMPLOYMENT, ECONOMIC DEVELOPMENT, AND WORKFORCE DEVELOPMENT

Section 1.

new text begin [116J.013] COST-OF-LIVING STUDY; ANNUAL REPORT. new text end

new text begin (a) The commissioner shall conduct an annual cost-of-living study in Minnesota. The study shall include: new text end

new text begin (1) a calculation of the statewide basic needs cost of living, adjusted for family size; new text end

new text begin (2) a calculation of the basic needs cost of living, adjusted for family size, for each county; new text end

new text begin (3) an analysis of statewide and county cost-of-living data, employment data, and job vacancy data; and new text end

new text begin (4) recommendations to aid in the assessment of employment and economic development planning needs throughout the state. new text end

new text begin (b) The commissioner shall report on the cost-of-living study and recommendations by February 1 of each year to the governor and to the chairs of the standing committees of the house of representatives and the senate having jurisdiction over employment and economic development issues. new text end

Sec. 2.

new text begin [116J.4011] LABOR MARKET INFORMATION DATA PRODUCTION REQUIREMENT. new text end

new text begin (a) As part of the commissioner's obligation under section 116J.401, the commissioner must, in collaboration with the Office of Higher Education and local workforce councils, produce and publish labor market analysis describing the alignment between employer requirements and workforce qualifications. new text end

new text begin (b) The analysis must include a description of job trends that supports career choice and job seeking including: new text end

new text begin (1) measures of current job growth, projected future job growth, and current job vacancies; new text end

new text begin (2) a breakdown of these measures, whenever feasible, by industry, occupation, statewide and substate region, by educational requirement, state employee retirement trends, and by racial trends; new text end

new text begin (3) a description of industry- or occupation-based credentials and minimum educational standards necessary for successful employment in each area; and new text end

new text begin (4) a designation of areas of opportunity based on high growth, high vacancy, and high pay conditions. new text end

new text begin (c) The analysis must include a description of workforce supply and quality, including: new text end

new text begin (1) a description of the current educational attainment of the workforce and its distribution across industries, occupations, and regions; new text end

new text begin (2) the number and distribution of recent graduates of and current enrollees in postsecondary institutions by academic concentration or major and by credential type; and new text end

new text begin (3) the completion rate, employment outcome, and average debt for recent postsecondary graduates by program of study, institution type, and credential. new text end

new text begin (d) The analysis must be reviewed on a regular basis by representatives from the business and postsecondary sectors, and any feedback should be incorporated into data collection and presentation where feasible. This feedback may also include surveys of employers on their skill, credential, and other workforce requirements when necessary. new text end

new text begin (e) Analysis, data, and reports required by this section must be easily accessible, easily readable, and prominently presented on the Department of Employment and Economic Development Web site and Web sites of workforce centers. Information on job vacancies and areas of potential employment opportunities should link to educational or credential requirements, appropriate training or educational offerings, prevailing wages, and other indicators of market conditions deemed important to career choosers and job seekers. new text end

Sec. 3.

new text begin [116J.548] HOST COMMUNITY ECONOMIC DEVELOPMENT GRANTS. new text end

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin A host community economic development grant program is created in the Department of Employment and Economic Development. Grants awarded under this section may only be spent for capital costs of an eligible project. new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For purposes of this section: new text end

new text begin (1) "Capital costs" means expenditures for the acquisition and betterment of public lands and buildings, and for other publicly owned capital improvements. Capital costs also include expenditures for predesign, design, engineering, and similar activities for specifically identified eligible projects. new text end

new text begin (2) "Eligible project" means a development or redevelopment project that will generate economic development within a host community. new text end

new text begin (3) "Economic development" means job creation, an increase in the tax base, the capacity of the eligible project to attract private investment, and other objective criteria established by the commissioner that demonstrate a public benefit to the host community. new text end

new text begin (4) "Host community" means a city located within the seven-county metropolitan area, as defined in section 473.121, subdivision 2, that is the site of a waste disposal facility that meets the standards in section 473.849, that accepts unprocessed mixed municipal solid waste generated in the metropolitan area. new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin Host communities may apply for a grant under this section on a form and in a manner prescribed by the commissioner. In awarding grants under this section, the commissioner shall give priority to eligible projects that, based on a cost-benefit analysis, provide the highest return on public investment. The commissioner must allocate available money between host communities as evenly as practicable. new text end

new text begin Subd. 4. new text end

new text begin No match required. new text end

new text begin Notwithstanding section 16A.86 or any other law to the contrary, the state share of a project covered by this section shall cover 100 percent of the total cost of the project. new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The commissioner must report to committees of the legislature with jurisdiction over economic development by February 15 of each year on grants awarded 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. 4.

Minnesota Statutes 2012, section 116J.8731, subdivision 2, is amended to read:

Subd. 2.

Administration.

new text begin Except as otherwise provided in this section, new text end the commissioner shall administer the fund as part of the Small Cities Development Block Grant Programdeleted text begin .deleted text end new text begin andnew text end 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 programdeleted text begin , except thatdeleted text end new text begin .new text end All units of general purpose local government are eligible applicants for Minnesota investment funds. new text begin 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. 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 end The commissioner may also make funds available within the department for eligible expenditures under subdivision 3, clause (2). 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.

Sec. 5.

Minnesota Statutes 2012, section 116J.8731, subdivision 3, is amended to read:

Subd. 3.

Eligible expenditures.

The money appropriated for this section may be used to:

(1) fundnew text begin loans ornew text end grants for infrastructure, loans, loan guarantees, interest buy-downs, and other forms of participation with private sources of financing, provided that a loan to a private enterprise must be for a principal amount not to exceed one-half of the cost of the project for which financing is sought;

(2) fund strategic investments in renewable energy market development, such as low interest loans for renewable energy equipment manufacturing, training grants to support renewable energy workforce, development of a renewable energy supply chain that represents and strengthens the industry throughout the state, and external marketing to garner more national and international investment into Minnesota's renewable sector. Expenditures in external marketing for renewable energy market development are not subject to the limitations in clause (1); and

(3) provide private entrepreneurs with training, other technical assistance, and financial assistance, as provided in the small cities development block grant program.

Sec. 6.

Minnesota Statutes 2012, section 116J.8731, subdivision 8, is amended to read:

Subd. 8.

Disaster contingency account; repayments.

There is created a Minnesota investment fund disaster contingency account in the special revenue fund. Repayment of loan amounts to the local government unit new text begin or development authority new text end under this section shall be forwarded to the commissioner and deposited in the disaster contingency account in the Minnesota investment fund to be appropriated by law for future disaster relief.

Sec. 7.

Minnesota Statutes 2012, section 116J.8731, subdivision 9, is amended to read:

Subd. 9.

Requirements for assistance.

new text begin (a) new text end All awards under section 12A.07 are subject to the deleted text begin followingdeleted text end requirementsnew text begin in this subdivisionnew text end .

deleted text begin (a) Eligible applicants include the following: deleted text end

new text begin (b) Eligible applicants are subject to the following requirements: new text end

(1) Applicants may be any business or nonprofit organization in the area included in the disaster declaration that was directly and adversely affected by the disaster. This includes: businesses, cooperatives, utilities, industrial, commercial, retail, and nonprofit organizations, including those nonprofits that provide residential, health care, child care, social, or other services on behalf of the Department of Human Services to residents included in the disaster area.

(2) Business applicants must be organized as a proprietorship, partnership, LLC, or a corporation.

(3) Applicants must have been in operation before the date of the disaster.

deleted text begin (b) Eligible activities.deleted text end new text begin (c)new text end Loan funds may be used to assist businesses only in their recovery efforts but are not available to provide relief from economic losses.

deleted text begin (c) Eligible costs.deleted text end new text begin (d)new text end Eligible costs may include the following: repair of buildings, leasehold improvements, fixtures and/or equipment, loss of inventory, and cleanup costs.

deleted text begin (d)deleted text end new text begin (e)new text end Ineligible activitiesnew text begin include all of the followingnew text end :

(1) deleted text begin Ineligible applicants.deleted text end Any applicants not meeting the eligibility requirements outlined in this subdivision are ineligible to receive recovery loan funds.

(2) deleted text begin Ineligible activities.deleted text end Funds may not be used for lending or investment operations, land speculation, or any activity deemed illegal by federal, state, or local law or ordinance.

(3) deleted text begin Ineligible costs.deleted text end Ineligible costs include but are not limited to: economic injury losses, relocation, management fees, financing costs, franchise fees, debt consolidation, moving costs, refinancing debt existing prior to the date of the disaster, and operating costs.

deleted text begin (e)deleted text end new text begin (f)new text end Loan application:

deleted text begin (1) Application process.deleted text end All parties seeking recovery loan funds must file an application with the local unit of governmentnew text begin or development authoritynew text end . Small Business Administration (SBA) application forms may be used. Applications must be transmitted in the form and manner prescribed by the commissioner.

deleted text begin (f) Application information.deleted text end new text begin (g)new text end Only completed applications will be reviewed for consideration. Submittal of the following information constitutes a complete application:

(1) Minnesota investment fund recovery loan fund application;

(2) business SBA disaster application, if applicable;

(3) regional development organization or responsible local government application, if applicable;

(4) administrative contact;

(5) business release for local government to review SBA damage assessment/loss verification, if applicable;

(6) proof of loss statement from insurer;

(7) construction cost estimates;

(8) invoices for work completed;

(9) quotes for equipment;

(10) proposed security;

(11) company historical financial statements for the 24 months immediately prior to the application date;

(12) credit check release;

(13) number of jobs to be retained;

(14) wages paid;

(15) amount of loan request;

(16) documentation of damages incurred;

(17) property taxes paid and current;

(18) judgments, liens, agreements, consent decrees, stipulations for settlements, or other such actions which would prevent the applicant from participating in any program administered by the responsible local, state, or regional government;

(19) compliance with all applicable local ordinances and plans;

(20) documentation through financial and tax records that the business was a viable operating entity at the time of the flood;

(21) business tax identification number; and

(22) other documentation as requested.

deleted text begin (g)deleted text end new text begin (h)new text end Incomplete applications will be assigned pending status and the applicant will be informed in writing of the missing documentation.

deleted text begin (h) Determination of eligibility.deleted text end new text begin (i)new text end Applicant eligibility will be determined using criteria enumerated in paragraph deleted text begin (a)deleted text end new text begin (b)new text end . A credit check for the company and each of its principal owners may be conducted. An owner's encumbrance report will be completed by the Recorder's Office.

new text begin (j) new text end A grant recipient is eligible for assistance provided under this section only after the recipient has claimed all applicable private insurance and the recipient has utilized all other sources of applicable assistance available under the act appropriating funding for the grant.

Sec. 8.

new text begin [116J.8748] MINNESOTA JOB CREATION FUND. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "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. new text end

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

new text begin (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). new text end

new text begin (e) "Commissioner" means the commissioner of employment and economic development. new text end

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

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

new text begin (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 new text end

new text begin (2) has expected work hours of at least 2,080 hours annually. new text end

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

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

new text begin (2) has expected work hours of at least 2,080 hours annually. new text end

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

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin (a) In order to qualify for designation as a Minnesota job creation fund business under subdivision 3, a business must submit an application to the local government entity where the facility is or will be located. new text end

new text begin (b) A local government must submit the business application along with other application materials to the commissioner for approval. new text end

new text begin (c) The applications required under paragraphs (a) and (b) must be in the form and be made under the procedures specified by the commissioner. new text end

new text begin Subd. 3. new text end

new text begin Minnesota job creation fund business designation; requirements. new text end

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

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

new text begin (i) manufacturing; new text end

new text begin (ii) warehousing; new text end

new text begin (iii) distribution; new text end

new text begin (iv) information technology; new text end

new text begin (v) finance; new text end

new text begin (vi) insurance; or new text end

new text begin (vii) professional or technical services; new text end

new text begin (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; new text end

new text begin (3) the business must enter into a binding construction and job creation business subsidy agreement with the commissioner to expend 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 and: new text end

new text begin (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; or new text end

new text begin (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; new text end

new text begin (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 new text end

new text begin (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. new text end

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

new text begin (1) the economic outlook of the industry in which the business engages; new text end

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

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

new text begin (4) whether the business activity would occur without financial assistance; new text end

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

new text begin (6) whether the business has viable location options outside Minnesota; new text end

new text begin (7) the effect of financial assistance on industry competitors in Minnesota; new text end

new text begin (8) financial contributions to the project made by local governments; and new text end

new text begin (9) any other criteria the commissioner deems necessary. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin Subd. 4. new text end

new text begin Certification; benefits. new text end

new text begin (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. new text end

new text begin (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. 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: new text end

new text begin (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; new text end

new text begin (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; new text end

new text begin (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 end

new text begin (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 new text end

new text begin (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. new text end

new text begin (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). new text end

new text begin (d) No rebates or award may be provided until the Minnesota job creation fund business 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. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (g) A Minnesota job creation fund business must demonstrate reasonable progress on its 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. new text end

new text begin Subd. 5. new text end

new text begin Capital investment rebate. new text end

new text begin (a) A qualified Minnesota job creation fund business is eligible for a rebate on the purchase and use of construction materials, services, and supplies used for or consumed in the construction project as described in the goals under the agreement provided under subdivision 1, paragraph (b). new text end

new text begin (b) The rebate under this subdivision applies regardless of whether the purchases are made by the qualified Minnesota job creation fund business or a contractor hired to perform work or provide services at the qualified Minnesota job creation fund business location. new text end

new text begin (c) Minnesota job creation fund businesses seeking the rebate for capital investment provided under subdivision 4 must submit forms and applications to the Department of Employment and Economic Development as prescribed by the commissioner of each department. new text end

new text begin Subd. 6. new text end

new text begin Job creation award. new text end

new text begin (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 end

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

new text begin (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. new text end

new text begin Subd. 7. new text end

new text begin Rulemaking. new text end

new text begin (a) If the commissioner's policies, procedures, or other statements are rules, as defined in section 14.02, subdivision 4, the requirements in either paragraph (b) or (c) apply, as applicable. new text end

new text begin (b) Effective upon enactment until January 1, 2015: new text end

new text begin (1) the commissioner shall publish notice of proposed rules in the State Register after complying with section 14.07, subdivision 2; new text end

new text begin (2) interested parties have 21 days to comment on the proposed rules. The commissioner must consider comments it receives. After the commissioner has considered all comments and has complied with section 14.07, subdivision 2, the commissioner shall publish notice of the final rule in the State Register; new text end

new text begin (3) if the adopted rules are the same as the proposed rules, the notice shall state that the rules have been adopted as proposed and shall cite the prior publication. If the adopted rules differ from the proposed rules, the portions of the adopted rules that differ from the proposed rules shall be included in the notice of adoption, together with a citation to the prior State Register that contained the notice of the proposed rules; and new text end

new text begin (4) rules published in the State Register before January 1, 2014, take effect upon publication of the notice. Rules published in the State Register on and after January 1, 2014, take effect 30 days after publication of the notice. new text end

new text begin (c) Beginning January 1, 2015, the commissioner may adopt rules to implement any provisions in this section using the expedited rulemaking process in section 14.389. new text end

new text begin (d) The notice of proposed rules required in paragraph (b) must provide information as to where the public may obtain a copy of the rules. The commissioner shall post the proposed rules on the department Web site at the same time the notice is published in the State Register. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014. new text end

Sec. 9.

new text begin [116J.9661] TRADE POLICY ADVISORY COUNCIL. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Trade Policy Advisory Council is established to advise and assist the governor and the legislature regarding United States trade agreements. new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The Trade Policy Advisory Council shall have 15 members, as follows: new text end

new text begin (1) the commissioner of employment and economic development or designee; new text end

new text begin (2) the commissioner of agriculture or designee; new text end

new text begin (3) the commissioner of administration or designee; new text end

new text begin (4) two senators, including one appointed by the Subcommittee on Committees of the Committee on Rules and Administration, and one appointed by the minority leader; new text end

new text begin (5) two members of the house of representatives, including one member appointed by the speaker of the house and one member appointed by the minority leader; and new text end

new text begin (6) eight members appointed by the governor. The governor's appointees shall represent specified interests, including organized labor, environmental interests, family farmers, business and industry, and international trade and development. new text end

new text begin (b) The Trade Policy Advisory Council may invite representatives from other state agencies, industries, trade and labor organizations, nongovernmental organizations, and local governments to join the council as nonvoting ex officio members. new text end

new text begin (c) Except for initial appointments, the appointing authorities shall make appointments by the first Monday in January of each odd-numbered year. new text end

new text begin Subd. 3. new text end

new text begin Term. new text end

new text begin Except for the initial appointees, members of the Trade Policy Advisory Council shall serve for a term of two years and may be reappointed. Members shall serve until their successors have been appointed. new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin The commissioner of employment and economic development or the commissioner's designee shall provide meeting space and administrative services for the council. new text end

new text begin Subd. 5. new text end

new text begin Initial appointments and first meeting. new text end

new text begin The appointing authorities shall appoint the first members of the council by January 15, 2014. The first appointees shall serve until the first Monday in January 2015. The commissioner of the Department of Employment and Economic Development shall convene the first meeting by February 15, 2014, and shall act as chair until the council elects a chair at its first meeting. new text end

new text begin Subd. 6. new text end

new text begin Chair. new text end

new text begin The members shall elect a chair from the legislative members of the advisory council. new text end

new text begin Subd. 7. new text end

new text begin No compensation. new text end

new text begin Public members of the advisory council serve without compensation or payment of expenses. new text end

new text begin Subd. 8. new text end

new text begin Duties. new text end

new text begin The Trade Policy Advisory Council shall: new text end

new text begin (1) advise the governor and the legislature on matters relating to United States trade agreements; new text end

new text begin (2) assess the potential impact of federal trade agreements on the state's economy; new text end

new text begin (3) advise the governor and the legislature of the group's findings and make recommendations, including any draft legislation necessary to implement the recommendations, to the governor and the legislature; new text end

new text begin (4) determine, on a case-by-case basis, the impact of a specific federal trade agreement by requesting input from state agencies, seeking expert advice, convening public hearings, and taking other reasonable and appropriate actions; new text end

new text begin (5) request information from the Office of the United States Trade Representative necessary to conduct an appropriate review of government procurement agreements or other trade issues; and new text end

new text begin (6) receive information obtained by the United States Trade Representative's single point of contact for Minnesota. new text end

new text begin Subd. 9. new text end

new text begin Meeting. new text end

new text begin The Trade Policy Advisory Council shall meet at least once per fiscal year. new text end

new text begin Subd. 10. new text end

new text begin Sunset. new text end

new text begin The council shall sunset January 1, 2020. new text end

Sec. 10.

new text begin [116J.978] MINNESOTA TRADE OFFICES IN FOREIGN MARKETS. new text end

new text begin (a) The commissioner of employment and economic development shall establish three new Minnesota Trade Offices in key foreign markets selected for their potential to increase Minnesota exports and attract foreign direct investment. new text end

new text begin (b) The commissioner shall establish a performance rating system for the new offices established under this section and create specific annual goals for the offices to meet. The commissioner shall monitor activities of the office, including, but not limited to, the number of inquiries and projects received and completed, meetings arranged between Minnesota companies and potential investors, distributors, or customers, and agreements signed. new text end

Sec. 11.

new text begin [116J.979] MINNESOTA STEP GRANTS. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic development shall create a State Trade and Export Promotion grants program, hereafter STEP grants, to provide financial and technical assistance to eligible Minnesota small businesses with an active interest in exporting products or services to foreign markets. new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin Recipients may apply, on an application devised by the commissioner, for up to $7,500 in reimbursement for approved export-development activities, including, but not limited to: new text end

new text begin (1) participation in trade missions; new text end

new text begin (2) export training; new text end

new text begin (3) exhibition at trade shows or industry-specific events; new text end

new text begin (4) translation of marketing materials; new text end

new text begin (5) development of foreign language Web sites, Gold Key, or other business matchmaking services; new text end

new text begin (6) company-specific international sales activities; and new text end

new text begin (7) testing and certification required to sell products in foreign markets. new text end

Sec. 12.

new text begin [116J.9781] INVEST MINNESOTA. new text end

new text begin The commissioner shall establish the Invest Minnesota marketing initiative. This initiative must focus on branding the state's economic development initiatives and promoting Minnesota business opportunities. The initiative may include measures to communicate the benefits of doing business in Minnesota to companies considering relocating, establishing a United States presence, or expanding. new text end

Sec. 13.

new text begin [116J.39] OFFICE OF BROADBAND DEVELOPMENT. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Broadband" or "broadband service" means any service providing advanced telecommunications capability and Internet access with transmission speeds that, at a minimum, meet the Federal Communications Commission definition for broadband. new text end

new text begin (c) "Local unit of government" has the meaning given in section 116G.03, subdivision 3. new text end

new text begin (d) "Office" means the Office of Broadband Development established in subdivision 2, paragraph (a). new text end

new text begin Subd. 2. new text end

new text begin Office established; purpose. new text end

new text begin (a) An Office of Broadband Development is established within the Department of Employment and Economic Development and shall remain in existence until the commissioner certifies that the state has met the broadband goals established in section 237.012. The director shall be appointed by the governor and shall serve in the unclassified service. The director must be qualified by experience and training in broadband. The office may employ staff necessary to carry out the office's duties under subdivision 4. new text end

new text begin (b) The purpose of the office is to encourage, foster, develop, and improve broadband within the state in order to: new text end

new text begin (1) drive job creation, promote innovation, and expand markets for Minnesota businesses; new text end

new text begin (2) serve the ongoing and growing needs of Minnesota's education systems, health care system, public safety system, industries and businesses, governmental operations, and citizens; and new text end

new text begin (3) improve accessibility for underserved communities and populations. new text end

new text begin Subd. 3. new text end

new text begin Organization. new text end

new text begin The office shall consist of a director of the Office of Broadband Development, as well as any staff necessary to carry out the office's duties under subdivision 4. new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin (a) The office shall have the power and duty to: new text end

new text begin (1) serve as the central broadband planning body for the state of Minnesota; new text end

new text begin (2) coordinate with state, regional, local, and private entities to develop, to the maximum extent practicable, a uniform statewide broadband access and usage policy; new text end

new text begin (3) develop, recommend, and implement a statewide plan to encourage cost-effective broadband access, and to make recommendations for increased usage, particularly in rural and other underserved areas; new text end

new text begin (4) coordinate efforts, in consultation and cooperation with the commissioner of commerce, local units of government, and private entities, to meet the state's broadband goals in section 237.012; new text end

new text begin (5) develop, coordinate, and implement the state's broadband infrastructure development program under section 116J.391; new text end

new text begin (6) provide consultation services to local units of government or other project sponsors in connection with the planning, acquisition, improvement, construction, or development of any broadband deployment project; new text end

new text begin (7) encourage public-private partnerships to increase deployment and adoption of broadband services and applications, including recommending funding options and possible incentives to encourage investment in broadband expansion; new text end

new text begin (8) monitor the broadband development efforts of other states and nations in areas such as business, education, public safety, and health; new text end

new text begin (9) consult with the commissioner of commerce to monitor broadband-related activities at the federal level, including regulatory and policy changes and the potential impact on broadband deployment and sustainability in the state; new text end

new text begin (10) serve as an information clearinghouse for federal programs providing financial assistance to institutions located in rural areas seeking to obtain access to high-speed broadband service, and use this information as an outreach tool to make institutions located in rural areas that are unserved or underserved with respect to broadband service aware of the existence of federal assistance; new text end

new text begin (11) provide logistical and administrative support for the Governor's Broadband Task Force; new text end

new text begin (12) provide an annual report, as required by subdivision 5; new text end

new text begin (13) coordinate an ongoing collaborative effort of stakeholders to evaluate and address security, vulnerability, and redundancy issues in order to ensure the reliability of broadband networks; and new text end

new text begin (14) perform any other activities consistent with the office's purpose. new text end

new text begin (b) In carrying out its duties under this subdivision, the Office of Broadband Development shall have no authority to regulate or compel action on the part of any provider of broadband service. new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin (a) Beginning January 15, 2014, and each year thereafter, the Office of Broadband Development shall report to the legislative committees with jurisdiction over broadband policy and finance on the office's activities during the previous year. new text end

new text begin (b) The report shall contain, at a minimum: new text end

new text begin (1) an analysis of the current availability and use of broadband, including average broadband speeds, within the state; new text end

new text begin (2) information gathered from schools, libraries, hospitals, and public safety facilities across the state, determining the actual speed and capacity of broadband currently in use and the need, if any, for increases in speed and capacity to meet current or anticipated needs; new text end

new text begin (3) an analysis of incumbent broadband infrastructure within the state and its ability to spur economic development; new text end

new text begin (4) an analysis of the degree to which new, additional, or improved broadband infrastructure would spur economic development in the state; new text end

new text begin (5) a summary of the office's activities in coordinating broadband infrastructure development under section 116J.391; new text end

new text begin (6) suggested policies, incentives, and legislation designed to accelerate the achievement of the goals under section 237.012, subdivisions 1 and 2; new text end

new text begin (7) any proposed legislative and policy initiatives; and new text end

new text begin (8) any other information requested by the legislative committees with jurisdiction over broadband policy and finance, or that the office deems necessary. new text end

new text begin (c) The report may be submitted electronically and is subject to section 3.195, subdivision 1. 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. 14.

new text begin [116J.391] COORDINATION OF BROADBAND INFRASTRUCTURE DEVELOPMENT. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "Broadband conduit" means a conduit, pipe, innerduct, or microduct for fiber optic or other cables that support broadband and wireless facilities for broadband service. new text end

new text begin (d) "Local unit of government" has the meaning given in section 116G.03, subdivision 3. new text end

new text begin (e) "Office" means the Office of Broadband Development established in section 116J.39. new text end

new text begin Subd. 2. new text end

new text begin Broadband infrastructure development. new text end

new text begin (a) The office shall, in collaboration with the Department of Transportation and private entities, encourage and coordinate "dig once" efforts for the planning, relocation, installation, or improvement of broadband conduit within the right-of-way in conjunction with any current or planned construction, including, but not limited to, trunk highways and bridges. To the extent necessary, the office shall, in collaboration with the Department of Transportation, evaluate engineering and design standards, procedures and criteria for contracts or lease agreements with private entities, and pricing requirements, and provide for allocation of risk, costs, and any revenue generated. new text end

new text begin (b) The office shall, in collaboration with other state departments and agencies as the office deems necessary, develop a strategy to facilitate the timely and efficient deployment of broadband conduit or other broadband facilities on state-owned lands and buildings. new text end

new text begin (c) To the extent practicable, the office shall encourage and assist local units of government to adopt and implement policies similar to those under paragraphs (a) and (b) for construction or other improvements to county state-aid highways, municipal state-aid roads, and any other rights-of-way under the local unit of government's jurisdiction, and to other lands or buildings owned by the local unit of government. new text end

new text begin (d) Special consideration must be paid to projects under this subdivision that will likely improve access to broadband by rural or underserved communities. new text end

new text begin Subd. 3. new text end

new text begin Reporting. new text end

new text begin As part of its annual report under section 116J.39, subdivision 5, the office shall report on activities taken under this section, including, but not limited to, the number of current and planned projects using the "dig once" approach, any gains in broadband speed or access associated with the project, and any costs or cost savings to the state, private entity, or end user of broadband services. new text end

new text begin Subd. 4. new text end

new text begin No right of action. new text end

new text begin Nothing in this section shall be construed to create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the state of Minnesota; its departments, agencies, or entities; its officers, employees, or agents; or any other person. 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. 15.

new text begin [116L.191] WORKFORCE CENTER; CREDENTIAL ASSISTANCE. new text end

new text begin (a) The commissioner shall provide at local workforce centers services that assist individuals in identifying and obtaining industry-recognized credentials for jobs, particularly jobs in high demand. The workforce centers must consult and cooperate with training institutions, particularly postsecondary institutions, to identify credential programs to individuals. new text end

new text begin (b) Each workforce center shall provide information under section 116J.4011, paragraph (b), clause (3), linked as a shortcut from the desktop of each workforce center computer and available in hard copy. Prominent signs should be posted in workforce centers directing individuals to where they can find a list of top job vacancies and related credential information. new text end

Sec. 16.

Minnesota Statutes 2012, section 116U.26, is amended to read:

116U.26 FILM PRODUCTION JOBS PROGRAM.

(a) The film production jobs program is created. The program shall be operated by the Minnesota Film and TV Board with administrative oversight and control by the commissioner of deleted text begin administrationdeleted text end new text begin employment and economic developmentnew text end . The program shall make payment to producers of feature films, national television or Internet programs, documentaries, music videos, and commercials that directly create new film jobs in Minnesota. To be eligible for a payment, a producer must submit documentation to the Minnesota Film and TV Board of expenditures for production costs incurred in Minnesota that are directly attributable to the production in Minnesota of a film product.

The Minnesota Film and TV Board shall make recommendations to the commissioner of deleted text begin administrationdeleted text end new text begin employment and economic development new text end about program payment, but the commissioner has the authority to make the final determination on payments. The commissioner's determination must be based on proper documentation of eligible production costs submitted for payments. No more than five percent of the funds appropriated for the program in any year may be expended for administrationnew text begin , including costs for independent audits and financial reviews of projectsnew text end .

(b) For the purposes of this section:

(1) "production costs" means the cost of the following:

(i) a story and scenario to be used for a film;

(ii) salaries of talent, management, and labor, including payments to personal services corporations for the services of a performing artist;

(iii) set construction and operations, wardrobe, accessories, and related services;

(iv) photography, sound synchronization, lighting, and related services;

(v) editing and related services;

(vi) rental of facilities and equipment; deleted text begin ordeleted text end

(vii) other direct costs of producing the film in accordance with generally accepted entertainment industry practice; deleted text begin anddeleted text end

new text begin (viii) above-the-line talent fees for nonresident talent; or new text end

new text begin (ix) costs incurred during postproduction; and new text end

(2) "film" means a feature film, television or Internet deleted text begin show,deleted text end new text begin pilot, program, series, new text end documentary, music video, or television commercial, whether on film, video, or digital media. Film does not include news, current events, public programming, or a program that includes weather or market reports; a talk show; a production with respect to a questionnaire or contest; a sports event or sports activity; a gala presentation or awards show; a finished production that solicits funds; or a production for which the production company is required under United States Code, title 18, section 2257, to maintain records with respect to a performer portrayed in a single-media or multimedia program.

(c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board may make reimbursements of: (1) up to deleted text begin 20deleted text end new text begin 25 new text end percent of deleted text begin filmdeleted text end production costs for films that locate production outside the metropolitan area, as defined in section 473.121, subdivision 2, or that incur deleted text begin production costs in excess of $5,000,000deleted text end new text begin a minimum Minnesota expenditure of $1,000,000new text end in the metropolitan area within a 12-month period; or (2) up to deleted text begin 15deleted text end new text begin 20 new text end percent of deleted text begin filmdeleted text end production costs for films that incur new text begin less than $1,000,000 in Minnesotanew text end production costs deleted text begin of $5,000,000 or lessdeleted text end in the metropolitan area within a 12-month period.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2012, section 136F.37, is amended to read:

136F.37 JOB PLACEMENT IMPACT ON PROGRAM REVIEW; INFORMATION TO STUDENTS.

new text begin Subdivision 1. new text end

new text begin Colleges; technical occupational program. new text end

The board must assess labor market data when conducting college program reviews. Colleges must provide prospective students with the job placement rate for graduates of technical and occupational programs offered at the colleges.

new text begin Subd. 2. new text end

new text begin DEED labor market survey; MnSCU usage and disclosure. new text end

new text begin The data assessed under subdivision 1 must include labor market data compiled by the Department of Employment and Economic Development under section 116J.4011. The board and its colleges and universities must use this market data when deciding upon course and program offerings. The board must provide a link to this labor market data on its Internet portal. 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. 18.

new text begin [161.462] FIBER COLLABORATION DATABASE. new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the fiber collaboration database is to provide broadband providers with advance notice of upcoming Department of Transportation construction projects so that they may notify the department of their interest in installing broadband infrastructure within the right-of-way during construction in order to minimize installation costs. new text end

new text begin Subd. 2. new text end

new text begin Database. new text end

new text begin (a) The Department of Transportation shall post on its Web site, and update annually, the list of upcoming construction projects contained in its statewide transportation improvement program, including, for each project: new text end

new text begin (1) the geographical location where construction will occur; new text end

new text begin (2) the estimated start and end dates of construction; and new text end

new text begin (3) a description of the nature of the construction project. new text end

new text begin (b) The commissioner shall post the information required in paragraph (a) as far in advance of the beginning of construction as is feasible. new text end

new text begin (c) The department's Web site must allow a provider of broadband service to register to receive from the department electronic information on proposed construction projects added to the database in specific geographical areas of the state as soon as it is updated. 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. 19.

Minnesota Statutes 2012, section 245.4712, subdivision 1, is amended to read:

Subdivision 1.

Availability of community support services.

(a) County boards must provide or contract for sufficient community support services within the county to meet the needs of adults with serious and persistent mental illness who are residents of the county. Adults may be required to pay a fee according to section 245.481. The community support services program must be designed to improve the ability of adults with serious and persistent mental illness to:

(1) deleted text begin work in a regular or supported work environmentdeleted text end new text begin find and maintain competitive employmentnew text end ;

(2) handle basic activities of daily living;

(3) participate in leisure time activities;

(4) set goals and plans; and

(5) obtain and maintain appropriate living arrangements.

The community support services program must also be designed to reduce the need for and use of more intensive, costly, or restrictive placements both in number of admissions and length of stay.

(b) Community support services are those services that are supportive in nature and not necessarily treatment oriented, and include:

(1) conducting outreach activities such as home visits, health and wellness checks, and problem solving;

(2) connecting people to resources to meet their basic needs;

(3) finding, securing, and supporting people in their housing;

(4) attaining and maintaining health insurance benefits;

(5) assisting with job applications, finding and maintaining employment, and securing a stable financial situation;

(6) fostering social support, including support groups, mentoring, peer support, and other efforts to prevent isolation and promote recovery; and

(7) educating about mental illness, treatment, and recovery.

(c) Community support services shall use all available funding streams. The county shall maintain the level of expenditures for this program, as required under section 245.4835. County boards must continue to provide funds for those services not covered by other funding streams and to maintain an infrastructure to carry out these services.new text begin The county is encouraged to fund evidence-based practices such as Individual Placement and Supported Employment and Illness Management and Recovery.new text end

(d) The commissioner shall collect data on community support services programs, including, but not limited to, demographic information such as age, sex, race, the number of people served, and information related to housing, employment, hospitalization, symptoms, and satisfaction with services.

Sec. 20.

Minnesota Statutes 2012, section 268A.13, is amended to read:

268A.13 EMPLOYMENT SUPPORT SERVICES FOR PERSONS WITH MENTAL ILLNESS.

The commissioner of employment and economic development, in cooperation with the commissioner of human services, shall develop a statewide program of grants as outlined in section 268A.14 to provide services for persons with mental illness new text begin who want to work new text end in supported employment. Projects funded under this section must: (1) assist persons with mental illness in obtaining and retaining new text begin competitive new text end employment; (2) emphasize individual deleted text begin community placements for clientsdeleted text end new text begin client preferencesnew text end ; (3) ensure interagency collaboration at the local level between vocational rehabilitation field offices, county service agencies, community support programs operating under the authority of section 245.4712, and community rehabilitation providers, in assisting clients; new text begin (4) ensure services are integrated with mental health treatment; (5) provide benefits counseling; (6) conduct rapid job search; new text end and deleted text begin (4)deleted text end new text begin (7) new text end involve clients in the planning, development, oversight, and delivery of support services. Project funds may not be used to provide services in segregated settings such as the center-based employment subprograms as defined in section 268A.01.

The commissioner of employment and economic development, in consultation with the commissioner of human services, shall develop a request for proposals which is consistent with the requirements of this section and section 268A.14 and which specifies the types of services that must be provided by grantees. Priority for funding shall be given to organizations deleted text begin with experience in developing innovative employment support services for persons with mental illnessdeleted text end new text begin carrying out evidence-based practicesnew text end . Each applicant for funds under this section shall submit an evaluation protocol as part of the grant application.

Sec. 21.

Minnesota Statutes 2012, section 268A.14, subdivision 1, is amended to read:

Subdivision 1.

Employment support services and programs.

The commissioner of employment and economic development, in cooperation with the commissioner of human services, shall operate a statewide system to reimburse providers for employment support services for persons with mental illness. The system shall be operated to support employment programs and services where:

(1) services provided are readily accessible to all persons with mental illness new text begin who want to work, including rapid competitive job search, new text end so they can make progress toward economic self-sufficiency;

(2) services provided are made an integral part of all new text begin mental health new text end treatment and rehabilitation programs for persons with mental illness to ensure that they have the ability and opportunity to consider a variety of work options;

(3) programs help persons with mental illness form long-range plans for employment that fit their skills and abilities by ensuring that ongoing new text begin time-unlimited new text end support, crisis management, placement, and career planning services are available;

(4) services provided give persons with mental illness the information needed to make informed choices about employment expectations and options, including information on the types of employment available in the local community, the types of employment services available, the impact of employment on eligibility for governmental benefits, and career options;

(5) programs assess whether persons with mental illness being serviced are satisfied with the services and outcomes. Satisfaction assessments shall address at least whether persons like their jobs, whether quality of life is improved, whether potential for advancement exists, and whether there are adequate support services in place;

(6) programs encourage persons with mental illness being served to be involved in employment support services issues by allowing them to participate in the development of individual rehabilitation plans and to serve on boards, committees, task forces, and review bodies that shape employment services policies and that award grants, and by encouraging and helping them to establish and participate in self-help and consumer advocacy groups;

(7) programs encourage employers to expand employment opportunities for persons with mental illness and, to maximize the hiring of persons with mental illness, educate employers about the needs and abilities of persons with mental illness and the requirements of the Americans with Disabilities Act;

(8) programs encourage persons with mental illness, vocational rehabilitation professionals, and mental health professionals to learn more about current work incentive provisions in governmental benefits programs;

(9) programs establish and maintain linkages with a wide range of other programs and services, including educational programs, housing programs, economic assistance services, community support services, and clinical services to ensure that persons with mental illness can obtain and maintain employment;

(10) programs participate in ongoing training across agencies and service delivery systems so that providers in human services systems understand their respective roles, rules, and responsibilities and understand the options that exist for providing employment and community support services to persons with mental illness; and

(11) programs work with local communities to expand system capacity to provide access to employment services to all persons with mental illness who want them.

Sec. 22.

new text begin [383D.412] DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; MINNESOTA INVESTMENT FUND. new text end

new text begin Subdivision 1. new text end

new text begin Treatment. new text end

new text begin As long as the conditions set forth in subdivision 2 are met and notwithstanding the provisions of section 116J.8731, the Dakota County Community Development Agency will be treated as if it were a general purpose local governmental unit and may apply for and receive state-funded money from the Minnesota investment fund. new text end

new text begin Subd. 2. new text end

new text begin Conditions precedent. new text end

new text begin Conditions precedent to the treatment of the Dakota County Community Development Agency as a general purpose local governmental unit as described in subdivision 1 are: new text end

new text begin (a) the board of commissioners of Dakota County shall have adopted a resolution approving such treatment of the Dakota County Community Development Agency, and such resolution shall be in full force and effect and shall not have been revoked by Dakota County; and new text end

new text begin (b) the members of the board of commissioners of Dakota County shall be the same persons as the members of the board of commissioners of the Dakota County Community Development Agency. new text end

Sec. 23.

new text begin EMPLOYMENT SUPPORT AND INDEPENDENT LIVING SERVICES FOR INDIVIDUALS WITH HIGH-FUNCTIONING AUTISM, ASPERGER'S SYNDROME, NONVERBAL LEARNING DISORDERS, AND PERVASIVE DEVELOPMENT DISORDER, NOT OTHERWISE SPECIFIED; PILOT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Communication" means the ability to effectively give and receive information through spoken words, writing, speaking, listening, or other means of communication, including but not limited to nonverbal expressions, gestures, or other adaptive methods. new text end

new text begin (c) "Functional areas" means communication, interpersonal skills, mobility, self-care, self-direction, preemployment skills, work tolerance, and independent living skills. new text end

new text begin (d) "Independent living assessment" means an active, performance-based skill assessment in the functional areas of communication, interpersonal skills, mobility, self-care, self-direction, preemployment skills, and independent living skills, that provides an analysis of the individual's ability to independently achieve certain skills and which is performed through direct observation. new text end

new text begin (e) "Interpersonal skills" means the ability to establish and maintain personal, family, work, and community relationships. new text end

new text begin (f) "Mobility" means the physical and psychological ability to move about from place to place, including travel to and from destinations in the community for activities of daily living, training, or work. new text end

new text begin (g) "Natural supports" means the process of assisting an employer to expand its capacity for training, supervising, and supporting workers with disabilities. new text end

new text begin (h) "Ongoing employment support services" means any of the following services: new text end

new text begin (1) facilitation of natural supports at the work site; new text end

new text begin (2) disability awareness training for the worker, the worker's employer, supervisor, or coworkers; new text end

new text begin (3) services necessary to increase the worker's inclusion at the work site; new text end

new text begin (4) job skills training at the work site; new text end

new text begin (5) regular observation or supervision of the worker; new text end

new text begin (6) coordination of support services; new text end

new text begin (7) job-related safety training; new text end

new text begin (8) job-related advocacy skills training to advance employment; new text end

new text begin (9) training in independent living skills and support including self-advocacy, money management and organization, grooming and personal care, communication, interpersonal skills, problem solving, orientation and mobility, and using public transportation or driver's training; new text end

new text begin (10) follow-up services necessary to reinforce and stabilize employment, including regular contact with the worker's employer, supervisor or coworkers, parents, family members, advocates, legal representatives, other suitable professionals, and informed advisors; new text end

new text begin (11) training in job seeking skills; and new text end

new text begin (12) internships or career planning to assist the individual's advancement in meaningful employment. new text end

new text begin (i) "Preemployment skills" means the abilities and skills to successfully apply for, secure, and maintain competitive employment. new text end

new text begin (j) "Self-care" means skills needed to manage one's self or living environment, including but not limited to money management, personal health care, personal hygiene, and safety needs, including medication management. new text end

new text begin (k) "Self-direction" means the ability to plan, initiate, organize, or carry out goal-directed activities or solve problems related to self-care, socialization, recreation, and working independently. new text end

new text begin (l) "Severe impairment to employment" means limitations experienced by persons diagnosed with high-functioning autism, Asperger's syndrome, nonverbal learning disorders, or pervasive development disorder, not otherwise specified, due to an extended history of unemployment or underemployment; limited education, training, or job skills; and physical, intellectual, or emotional characteristics that seriously impair the individual's ability to obtain and retain permanent employment. new text end

new text begin (m) "Work tolerance" means the ability to effectively and efficiently perform jobs with various levels of sensory and environmental components including scent, noise, visual stimuli, physical space, and psychological demands. new text end

new text begin Subd. 2. new text end

new text begin Employment support plan and outcomes. new text end

new text begin An individual participating in the program under this section must develop an employment support plan that includes: new text end

new text begin (1) employment goals; new text end

new text begin (2) ongoing support services; new text end

new text begin (3) program outcomes that focus on competitive employment in the community; and new text end

new text begin (4) ongoing independent living services and employment supports necessary for the individual to secure, maintain, and advance in employment that best fits the individual's strengths and career goals. new text end

Sec. 24.

new text begin CUSTOMIZED TRAINING PILOT PROGRAM FOR SKILLED MANUFACTURING INDUSTRIES. new text end

new text begin Subdivision 1. new text end

new text begin Program. new text end

new text begin The commissioner of employment and economic development in consultation with the commissioner of labor and industry shall collaborate with Minnesota State Colleges and Universities (MnSCU) institutions and employers, to develop a customized training program for skilled manufacturing industries that integrates academic instruction and job-related learning in the workplace and MnSCU institutions. The commissioner shall actively recruit participants in a customized training program for skilled manufacturing industries from the following groups: secondary and postsecondary school systems; individuals with disabilities; dislocated workers; retired and disabled veterans; individuals enrolled in MFIP under Minnesota Statutes, chapter 256J; minorities; previously incarcerated individuals; individuals residing in labor surplus areas as defined by the United States Department of Labor; and any other disadvantaged group as determined by the commissioner. new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commissioner" means the commissioner of employment and economic development. new text end

new text begin (c) "Employer" means a skilled manufacturing industry employer within the state who enters into the agreements with MnSCU institutions and the commissioner under subdivisions 3 to 5. new text end

new text begin (d) "MnSCU institution" means Alexandria Technical and Community College, Century College, Hennepin Technical College, and Central Lakes College. new text end

new text begin (e) "Participant" means an employee who enters into a customized training program for skilled manufacturing industries participation agreement under subdivision 4. new text end

new text begin (f) "Related instruction" means classroom instruction or technical or vocational training required to perform the duties of the skilled manufacturing job. new text end

new text begin (g) "Skilled manufacturing" means occupations in manufacturing industry sectors 31 to 33 as defined by the North American Industry Classification System (NAICS). new text end

new text begin Subd. 3. new text end

new text begin Skilled manufacturing customized training program employer agreement. new text end

new text begin (a) The commissioner, employer, and MnSCU institution shall enter into a skilled manufacturing customized training program employer agreement that is specific to the identified skilled manufacturing training needs of an employer. new text end

new text begin (b) The agreement must contain the following: new text end

new text begin (1) the name of the employer; new text end

new text begin (2) a statement showing the number of hours to be spent by a participant in work and the number of hours to be spent, if any, in concurrent, supplementary instruction in related subjects. The maximum number of hours of work per week, not including time spent in related instruction, for any participant shall not exceed either the number prescribed by law or the customary regular number of hours per week for the employees of the employer. A participant may be allowed to work overtime provided that the overtime work does not conflict with supplementary instruction course attendance. All time spent by the participant in excess of the number of hours of work per week as specified in the skilled manufacturing customized training program participation agreement shall be considered overtime; new text end

new text begin (3) the hourly wage to be paid to the participant and requirements for reporting to the commissioner on actual wages paid to the participant; new text end

new text begin (4) an explanation of how the employer agreement or participant agreement may be terminated; new text end

new text begin (5) a statement setting forth a schedule of the processes in the occupation in which the participant is to be trained and the approximate time to be spent at each process; new text end

new text begin (6) a statement by the MnSCU institution and the employer describing the related instruction that will be offered, if any, under subdivision 5, paragraph (c); and new text end

new text begin (7) any other provision the commissioner deems necessary to carry out the purposes of this section. new text end

new text begin (c) The commissioner may periodically review the adherence to the terms of the customized training program employer agreement. If the commissioner determines that an employer or employee has failed to comply with the terms of the agreement, the commissioner shall terminate the agreement. An employer must report to the commissioner any change in status for the participant within 30 days of the change in status. new text end

new text begin Subd. 4. new text end

new text begin Skilled manufacturing customized training program participation agreement. new text end

new text begin (a) The commissioner, the prospective participant, and the employer shall enter into a skilled manufacturing customized training program participation agreement that is specific to the training to be provided to the participant. new text end

new text begin (b) The participation agreement must contain the following: new text end

new text begin (1) the name of the employer; new text end

new text begin (2) the name of the participant; new text end

new text begin (3) a statement setting forth a schedule of the processes of the occupation in which the participant is to be trained and the approximate time to be spent at each process; new text end

new text begin (4) a description of any related instruction; new text end

new text begin (5) a statement showing the number of hours to be spent by a participant in work and the number of hours to be spent, if any, in concurrent, supplementary instruction in related subjects. The maximum number of hours of work per week, not including time spent in related instruction, for any participant shall not exceed either the number prescribed by law or the customary regular number of hours per week for the employees of the employer. A participant may be allowed to work overtime provided that the overtime work does not conflict with supplementary instruction course attendance. All time spent by the participant in excess of the number of hours of work per week as specified in the customized training program participation agreement shall be considered overtime; new text end

new text begin (6) the hourly wage to be paid to the participant; and new text end

new text begin (7) an explanation of how the parties may terminate the participation agreement. new text end

new text begin (c) The commissioner may periodically review the adherence to the terms of the customized training program participation agreement. If the commissioner determines that an employer or participant has failed to comply with the terms of the agreement, the commissioner shall terminate the agreement. An employer must report to the commissioner any change in status for the participant within 30 days of the change in status. new text end

new text begin Subd. 5. new text end

new text begin MnSCU instruction. new text end

new text begin (a) MnSCU institutions shall collaborate with an employer to provide related instruction which the employer deems necessary to instruct participants of a skilled manufacturing customized training program. The related instruction provided must be, for the purposes of this section, career-level, as negotiated by the commissioner and the MnSCU institution. The related instruction may be for credit or noncredit, and credit earned may be transferable to a degree program, as determined by the MnSCU institution. new text end

new text begin (b) The commissioner, in conjunction with the MnSCU institution, shall issue a certificate of completion to a participant who completes all required components of the skilled manufacturing customized training program participation agreement. new text end

new text begin (c) As part of the skilled manufacturing customized training program, an employer shall collaborate with a MnSCU institution for any related instruction required to perform the skilled manufacturing job. The agreement shall include: new text end

new text begin (1) a detailed explanation of the related instruction; and new text end

new text begin (2) the number of hours of related instruction needed to receive a certificate of completion. new text end

Sec. 25.

new text begin SKILLED MANUFACTURING REPORTS. new text end

new text begin (a) The commissioner of employment and economic development shall study the training needs of skilled manufacturing industry employers in the state and report study findings and recommendations to the standing committees of the house of representatives and the senate having jurisdiction over employment and workforce development by March 1, 2014. new text end

new text begin (b) The commissioner of employment and economic development shall coordinate and monitor customized training programs for skilled manufacturing industries at Century College, Alexandria Technical and Community College, Hennepin Technical College, and Central Lakes College. By January 15, 2015, the commissioner, in conjunction with each MnSCU institution listed in this section, shall report to the standing committees of the house of representatives and the senate having jurisdiction over employment and workforce development. The report must address the progress and success of the implementation of a customized training program for skilled manufacturing industries at each MnSCU institution. The report must give recommendations on where a skilled manufacturing customized training program should next be implemented, taking into consideration all current and potential skilled manufacturing training providers available. new text end

Sec. 26.

new text begin STATE BROADBAND STRATEGY; REPORT. new text end

new text begin The Office of Broadband Development shall conduct research and produce a report recommending a set of programs and strategies the state can pursue to promote the improvement, more efficient and effective use, and expansion of broadband services in ways that will have the greatest impact on the state's economic development, by which is meant enhancing the ability of Minnesota citizens and businesses to develop their skills, to expand businesses to new markets, develop new products, reach more customers, and lower costs. While the state's broadband goals in Minnesota Statutes, section 237.012, address the universal provision of greater broadband access and speed statewide, this report must consider broadband as an economic development tool and must examine and analyze: new text end

new text begin (1) how the state can best use its limited resources to adopt strategies and make investments to improve the use of broadband services by subgroups of broadband users, including mobile broadband users, that promise to deliver the greatest economic impact per dollar of state investment; new text end

new text begin (2) roles the state can play in addition to financial assistance for broadband infrastructure, including supporting education and training for Minnesotans to enable them to use broadband more effectively; and new text end

new text begin (3) strategies and opportunities for state investment to leverage additional amounts of private capital and financial assistance from the federal government in order to achieve these goals. new text end

new text begin By January 15, 2014, the office shall submit the report to the chairs and ranking minority members of the senate and house of representatives committees with jurisdiction over broadband issues. 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. 27.

new text begin PILOT PROGRAMS; COMBINING CAREER AND HIGHER EDUCATION ADVISING. new text end

new text begin The workforce council in each of the workforce service areas of Hennepin/Carver, Northeast Minnesota, Stearns/Benton, and rural Minnesota CEP must with at least one public school district in its service area, cooperate in operating a program to assist high school students in selecting careers of interest to a student and a postsecondary path to prepare for that career. The local workforce council shall individually advise a student on jobs in high demand in areas of interest to a student. Advising must include information on various career paths and associated jobs, the salary profile of those jobs, and the credentials and other training desired by employers for those jobs. A district may assist the local workforce council by, among other activities: new text end

new text begin (1) describing to the local workforce council what kind of vocational exploration the student already received; new text end

new text begin (2) identifying opportunities for the council to assist students by providing office space at school to meet with students, access to assemblies and other groups for testing and career exploration, access to teachers through in-service and in other manners, to support students to use a pilot program; and new text end

new text begin (3) working with students after testing and advising by the local workforce council. new text end

Sec. 28.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2012, section 237.012, subdivision 3, new text end new text begin is repealed. new text end

ARTICLE 4

UNEMPLOYMENT INSURANCE

Section 1.

Minnesota Statutes 2012, section 116L.17, subdivision 4, is amended to read:

Subd. 4.

Use of funds.

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

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

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

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

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

Sec. 2.

Minnesota Statutes 2012, section 116L.17, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Converting layoffs into Minnesota businesses (CLIMB). new text end

new text begin Converting layoffs into Minnesota businesses (CLIMB) is created to assist dislocated workers in starting or growing a business. CLIMB must offer entrepreneurial training, business consulting, and technical assistance to dislocated workers seeking to start or grow a business. The commissioner, in cooperation with local workforce councils, must provide the assistance in this subdivision by: new text end

new text begin (1) encouraging closer ties between the Small Business Development Center network, Small Business Development Center training providers, and workforce centers, as well as other dislocated worker program service providers; and new text end

new text begin (2) eliminating grantee performance data disincentives that would otherwise prevent enrollment of dislocated workers in entrepreneurship-related training. new text end

Sec. 3.

Minnesota Statutes 2012, section 268.051, subdivision 5, is amended to read:

Subd. 5.

Tax rate for new employers.

(a) Each new taxpaying employer that does not qualify for an experience rating under subdivision 3, except new employers in a high experience rating industry, must be assigned, for a calendar year, a tax rate the higher of (1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits paid all applicants during the 48 calendar months ending on June 30 of the prior calendar year by the total taxable wages of all taxpaying employers during the same period, plus the applicable base tax rate and any additional assessments under subdivision 2, paragraph (c).

(b) Each new taxpaying employer in a high experience rating industry that does not qualify for an experience rating under subdivision 3, must be assigned, for a calendar year, a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits paid to all applicants from high experience rating industry employers during the 48 calendar months ending on June 30 of the prior calendar year by the total taxable wages of all high experience rating industry employers during the same period, to a maximum provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any additional assessments under subdivision 2, paragraph (c).

(c) An employer is considered to be in a high experience rating industry if:

(1) the employer is engaged in residential, commercial, or industrial construction, including general contractors;

(2) the employer is engaged in sand, gravel, or limestone mining;

(3) the employer is engaged in the manufacturing of concrete, concrete products, or asphalt; or

(4) the employer is engaged in road building, repair, or resurfacing, including bridge and tunnels and residential and commercial driveways and parking lots.

(d) Regardless of any law to the contrary, a taxpaying employer must be assigned a tax rate under this subdivision ifdeleted text begin :deleted text end

deleted text begin (1)deleted text end the employer deleted text begin registers for a tax account under section 268.042 and for each of the five calendar quarters after registering files a "no wages paid" report on wage detail under section 268.044; ordeleted text end new text begin had no taxable wages during the experience rating period under subdivision 3.new text end

deleted text begin (2) the employer has filed 14 consecutive quarterly "no wages paid" reports on wage detail under section 268.044. deleted text end

(e) The commissioner must send to the new employer, by mail or electronic transmission, a determination of tax rate. An employer may appeal the determination of tax rate in accordance with the procedures in subdivision 6, paragraph (c).

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2012, section 268.07, subdivision 3b, is amended to read:

Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for unemployment benefits is effective the Sunday of the calendar week that the application was filed. An application for unemployment benefits may be backdated one calendar week before the Sunday of the week the application was actually filed if the applicant requests the backdating at the time the application is filed. An application may be backdated only if the applicant deleted text begin had no employmentdeleted text end new text begin was unemployednew text end during the period of the backdating. If an individual attempted to file an application for unemployment benefits, but was prevented from filing an application by the department, the application is effective the Sunday of the calendar week the individual first attempted to file an application.

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

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

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

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

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

(d) An application for unemployment benefits is not allowed before the Sunday following the expiration of the benefit year on a prior benefit account. Except as allowed under paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks.

Sec. 5.

Minnesota Statutes 2012, section 268.125, subdivision 1, is amended to read:

Subdivision 1.

Additional unemployment benefits; when available.

Additional unemployment benefits are available if:

(1) MS 2008 [Expired, 2008 c 300 s 15]

(2)(i) at a facility that had 100 or more employees, the employer reduced operations, resulting within a one-month period in the layoff of 50 percent or more of the facility's work force, including reductions caused as a result of a major natural disaster declared by the president;

(ii) the employer has no expressed plan to resume operations that would lead to the reemployment of those employees in the immediate future; and

(iii) the seasonally adjusted unemployment rate in the county that the facility is located was ten percent or more during the month of the reduction or any of the three months before or after the month of the reductionnew text begin ; ornew text end

new text begin (3) the applicant stopped working because of a lockout. The term "lockout" has the meaning given in section 179.01, subdivision 9new text end . new text begin This clause does not apply to professional athletes who are locked out by a professional sports team.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. 6.

Minnesota Statutes 2012, section 268.125, subdivision 3, is amended to read:

Subd. 3.

Eligibility conditions.

new text begin (a) new text end An applicant is eligible to receive additional unemployment benefits for any week during the applicant's benefit year if:

deleted text begin (1) for any week during which benefits are available under subdivision 1, clause (1): deleted text end

deleted text begin (i) the applicant resides in a county that meets the requirements of subdivision 1, clause (1), and resided in that county each week that regular unemployment benefits were paid; deleted text end

deleted text begin (ii) the applicant was not paid unemployment benefits for any week in the 12 months before the effective date of the applicant's benefit account; deleted text end

deleted text begin (iii) the applicant meets the same eligibility requirements that are required for regular unemployment benefits under section 268.069; and deleted text end

deleted text begin (iv) MS 2008 [Expired, 2008 c 300 s 17] deleted text end

deleted text begin (2)deleted text end new text begin (1) new text end the applicant was laid off from employment as a result of a reduction under subdivision 1, clause (2), or was laid off because of lack of work from that employer during the three-month period before, or the three-month period after, the month of the reduction under subdivision 1, clause (2);

deleted text begin (3)deleted text end new text begin (2)new text end the applicant meets the same eligibility requirements that are required for regular unemployment benefits under section 268.069;

deleted text begin (4)deleted text end new text begin (3)new text end the applicant has exhausted regular unemployment benefits under section 268.07, is not entitled to receive extended unemployment benefits under section 268.115, and is not entitled to receive unemployment benefits under any other state or federal law for that week; and

deleted text begin (5)deleted text end new text begin (4)new text end a majority of the applicant's wage credits were from the employer that had a reduction in operations under subdivision 1, clause (2).

new text begin (b) An applicant who stopped working because of a lockout is eligible to receive additional unemployment benefits for any week if: new text end

new text begin (1) the applicant meets the eligibility requirements under section 268.069; new text end

new text begin (2) the applicant has exhausted regular unemployment benefits under section 268.07 or the law of another state; new text end

new text begin (3) the applicant is not eligible for extended unemployment benefits or unemployment benefits under any federal law; and new text end

new text begin (4) the lockout is in active progress. new text end

new text begin Section 268.085, subdivision 1, clause (2), does not apply to this paragraph. 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. 7.

Minnesota Statutes 2012, section 268.125, subdivision 4, is amended to read:

Subd. 4.

Weekly unemployment benefit amount.

An applicant's weekly additional unemployment benefit amount is the same as the applicant's weekly new text begin regular new text end unemployment benefit amount deleted text begin during the current benefit yeardeleted text end under section 268.07.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2012, section 268.125, subdivision 5, is amended to read:

Subd. 5.

Maximum amount of unemployment benefits.

new text begin (a) For an applicant who qualifies for additional unemployment benefits under subdivision 1, clause (2), new text end the maximum amount of additional unemployment benefits available in the applicant's benefit year is one-half of the applicant's maximum amount of regular unemployment benefits available under section 268.07, subdivision 2. Extended unemployment benefits paid and unemployment benefits paid under any federal law other than regular unemployment benefits must be deducted from the maximum amount of additional unemployment benefits available.

new text begin (b) For an applicant who qualifies for additional unemployment benefits under subdivision 1, clause (3), the applicant may receive additional unemployment benefits for up to 26 weeks so long as the lockout is in active progress. 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. 9.

new text begin [268.133] UNEMPLOYMENT BENEFITS WHILE IN ENTREPRENEURIAL TRAINING. new text end

new text begin Unemployment benefits are available to dislocated workers participating in the converting layoffs into Minnesota businesses (CLIMB) program under section 116L.17, subdivision 11. Applicants participating in CLIMB are considered in reemployment assistance training under section 268.035, subdivision 21c. All requirements under section 268.069, subdivision 1, must be met, except the commissioner may waive: new text end

new text begin (1) the deductible earnings provisions in section 268.085, subdivision 5; and new text end

new text begin (2) the 32 hours of work limitation in section 268.085, subdivision 2, clause (6). A maximum of 500 applicants may receive a waiver at any given time. new text end

Sec. 10.

Minnesota Statutes 2012, section 268.136, subdivision 1, is amended to read:

Subdivision 1.

Shared work deleted text begin agreementdeleted text end new text begin plannew text end requirements.

deleted text begin (a)deleted text end An employer may submit a proposed shared work plan for an employee group to the commissioner for approval in a manner and format set by the commissioner. The proposed deleted text begin agreementdeleted text end new text begin shared work plannew text end must include:

(1) a certified statement that the normal weekly hours of work of all of the proposed participating employees were full timenew text begin or regular part timenew text end but are now reduced, or will be reduced, with a corresponding reduction in pay, in order to prevent layoffs;

(2) the name and Social Security number of each participating employee;

(3) new text begin the number of layoffs that would have occurred absent the employer's ability to participate in a shared work plan;new text end

new text begin (4) new text end a certified statement deleted text begin of whendeleted text end new text begin thatnew text end each participating employee was first hired by the employerdeleted text begin , which must bedeleted text end at least one year before the proposed deleted text begin agreementdeleted text end new text begin shared work plannew text end is submittednew text begin and is not a seasonal, temporary, or intermittent workernew text end ;

deleted text begin (4)deleted text end new text begin (5)new text end the hours of work each participating employee will work each week for the duration of the deleted text begin agreementdeleted text end new text begin shared work plannew text end , which must be at least deleted text begin 20deleted text end new text begin 50 percent of the normal weeklynew text end hours deleted text begin anddeleted text end new text begin butnew text end no more than deleted text begin 32 hours per weekdeleted text end new text begin 90 percent of the normal weekly hoursnew text end , except that the deleted text begin agreementdeleted text end new text begin plannew text end may provide for a uniform vacation shutdown of up to two weeks;

new text begin (6) a certified statement that any health benefits and pension benefits provided by the employer to participating employees will continue to be provided under the same terms and conditions as though the participating employees' hours of work each week had not been reduced; new text end

new text begin (7) a certified statement that the terms and implementation of the shared work plan is consistent with the employer's obligations under state and federal law; new text end

new text begin (8) an acknowledgement that the employer understands that unemployment benefits paid under a shared work plan will be used in computing the future tax rate of a taxpaying employer or charged to the reimbursable account of a nonprofit or government employer; new text end

deleted text begin (5)deleted text end new text begin (9)new text end the proposed duration of the deleted text begin agreementdeleted text end new text begin shared work plannew text end , which must be at least two months and not more than one year, although deleted text begin an agreementdeleted text end new text begin a plannew text end may be extended for up to an additional year upon approval of the commissioner;

deleted text begin (6)deleted text end new text begin (10)new text end a starting date beginning on a Sunday at least 15 calendar days after the date the proposed deleted text begin agreementdeleted text end new text begin shared work plannew text end is submitted; and

deleted text begin (7)deleted text end new text begin (11)new text end a signature of an owner or officer of the employer who is listed as an owner or officer on the employer's account under section 268.045.

deleted text begin (b) An agreement may not be approved for an employer that: deleted text end

deleted text begin (1) has any unemployment tax or reimbursements, including any interest, fees, or penalties, due but unpaid; or deleted text end

deleted text begin (2) has the maximum experience rating provided for under section 268.051, subdivision 3. deleted text end

Sec. 11.

Minnesota Statutes 2012, section 268.136, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Agreementdeleted text end new text begin Approvalnew text end by commissioner.

(a) The commissioner must promptly review a proposed deleted text begin agreementdeleted text end new text begin shared work plannew text end and notify the employer, by mail or electronic transmission, within 15 days of receipt, whether the proposal satisfies the requirements of this sectionnew text begin and has been approvednew text end . If the proposal does not comply with this section, the commissioner must specifically state why the proposal is not in compliance. If a proposed deleted text begin agreement complies with this sectiondeleted text end new text begin shared work plan has been approvednew text end , it must be implemented according to its terms.

(b) The commissioner may deleted text begin reject an agreementdeleted text end new text begin not approve a proposed shared work plan new text end if the commissioner has cause to believe the proposal deleted text begin is notdeleted text end new text begin wasnew text end submitted for deleted text begin thedeleted text end new text begin anew text end purpose deleted text begin ofdeleted text end new text begin other thannew text end preventing layoffs due to lack of work.

new text begin (c) The commissioner may not approve a proposed shared work plan if the employer has any unemployment tax or reimbursements, including any interest, fees, or penalties, due but unpaid. new text end

new text begin (d) A shared work plan that has been approved by the commissioner is considered a contract that is binding on the employer and the department. This contract may be canceled or modified under subdivision 5. new text end

Sec. 12.

Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Notice to participating employee. new text end

new text begin The employer must provide written notification to each participating employee that the employer has submitted a proposed shared work plan. The notification must be provided to the employee no later than the time the commissioner notifies the employer that a proposed shared work plan has been approved. The notification must inform the employee of the proposed terms of the shared work plan along with notice to the employee of the employee's right to apply for unemployment benefits. new text end

Sec. 13.

Minnesota Statutes 2012, section 268.136, subdivision 3, is amended to read:

Subd. 3.

Applicant requirements.

(a) An applicant, in order to be paid unemployment benefits under this section, must meet all of the requirements under section 268.069, subdivision 1. The following new text begin provisions of section 268.085 new text end do not apply to an applicant deleted text begin under this sectiondeleted text end new text begin in an approved shared work plannew text end :

(1) deleted text begin thedeleted text end deductible earnings deleted text begin provision of section 268.085,deleted text end new text begin under new text end subdivision 5;

(2) the restriction under deleted text begin section 268.085,deleted text end subdivision deleted text begin 6deleted text end new text begin 2, clause (6)new text end , if the applicant works exactly 32 hours in a week;

(3) the requirement of being available for suitable employmentnew text begin under subdivision 1, clause (4), but only if the applicant is (i) available for the normal hours of work per week with the shared work employer, or (ii) is in a training program when not workingnew text end ; and

(4) the requirement of actively seeking suitable employmentnew text begin under subdivision 1, clause (5)new text end .

(b) An applicant is ineligible for unemployment benefits under this section for any week, ifdeleted text begin :deleted text end

deleted text begin (1)deleted text end the applicant works more than 32 hours in a week in employment with one or more employerdeleted text begin ; ordeleted text end new text begin .new text end

deleted text begin (2) the applicant works more hours in a week for the shared work employer than the reduced weekly hours provided for in the agreement. deleted text end

Sec. 14.

Minnesota Statutes 2012, section 268.136, subdivision 4, is amended to read:

Subd. 4.

Amount of unemployment benefits available.

new text begin (a) new text end The weekly benefit amount and maximum amount of unemployment benefits available are computed according to section 268.07, except that deleted text begin an applicant is paiddeleted text end new text begin the amount of benefits available isnew text end a reduced amount in direct proportion to the reduction in hoursnew text begin set out in the shared work plannew text end from new text begin the lesser of (1) 40 hours per week; or (2) new text end the normal weekly hours.

new text begin (b) Regardless of paragraph (a), if the applicant works more hours or less hours in a week for the shared work employer than provided for in the shared work plan, the amount of unemployment benefits available is in direct proportion to the reduction in hours actually worked from the lesser of (1) 40 hours per week; or (2) the normal weekly hours. new text end

Sec. 15.

Minnesota Statutes 2012, section 268.136, subdivision 5, is amended to read:

Subd. 5.

Cancellationnew text begin ; modificationnew text end .

(a) An employer may cancel deleted text begin an agreementdeleted text end new text begin a shared work plannew text end at any time upon seven calendar days' notice to the commissioner in a manner and format prescribed by the commissioner. The cancellation must be signed by an owner or officer of the employer.

new text begin (b) An employer may request that the commissioner allow modification of the shared work plan as to the hours of work each participating employee will work each week. The request must be sent in a manner and form prescribed by the commissioner. The request must be signed by an owner or officer of the employer. The commissioner must notify the employer as soon as possible if the modification is allowed. new text end

deleted text begin (b)deleted text end new text begin (c)new text end An employer that cancels deleted text begin an agreementdeleted text end new text begin or requests modification of a shared work plannew text end must provide written notice to each participating employee deleted text begin in the groupdeleted text end of the cancellationnew text begin or requested modificationnew text end at the time notice is sent to the commissioner.

deleted text begin (c)deleted text end new text begin (d)new text end If an employer cancels deleted text begin an agreementdeleted text end new text begin a shared work plannew text end before the expiration date provided for in subdivision 1, a new deleted text begin agreementdeleted text end new text begin shared work plannew text end may not be deleted text begin entered into withdeleted text end new text begin approved fornew text end that employer under this section for at least 60 calendar days.

deleted text begin (d)deleted text end new text begin (e)new text end The commissioner may immediately cancel any deleted text begin agreementdeleted text end new text begin shared work plannew text end if the commissioner determines the deleted text begin agreementdeleted text end new text begin plannew text end was based upon false information or the employer deleted text begin is in breachdeleted text end new text begin has failed to adhere to the termsnew text end of the deleted text begin contractdeleted text end new text begin shared work plannew text end . The commissioner must immediately send written notice of cancellation to the employer. An employer that receives notice of cancellation deleted text begin by the commissionerdeleted text end must provide written notice to each participating deleted text begin employer in the groupdeleted text end new text begin employeenew text end of the cancellation.

Sec. 16.

Minnesota Statutes 2012, section 268.23, is amended to read:

268.23 SEVERABLE.

deleted text begin In the event thatdeleted text end new text begin Ifnew text end the United States Department of Labor new text begin or a court of competent jurisdiction new text end determines that any provision of the Minnesota Unemployment Insurance Lawdeleted text begin , or any other provision of Minnesota Statutes relating to the unemployment insurance program,deleted text end is not in conformity withnew text begin , or is inconsistent with,new text end the requirements of federal law, the provision has no force or effectdeleted text begin ; butdeleted text end new text begin .new text end If only a portion of the provision, or the application to any person or circumstances, is deleted text begin helddeleted text end new text begin determinednew text end not in conformity,new text begin or determined inconsistent,new text end the remainder of the provision and the application of the provision to other persons or circumstances are not affected.

Sec. 17.

Laws 2012, chapter 201, article 1, section 3, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective July 1, 2012, except the amendments to paragraph (d) are effective for penalties deleted text begin imposeddeleted text end new text begin creditednew text end on or after July 1, 2013.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

new text begin UNEMPLOYMENT INSURANCE EMPLOYER TAX REDUCTION. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 268.051, subdivision 2, if, on September 30, 2013, the balance in the Minnesota Unemployment Trust Fund is more than $800,000,000, the base tax rate for calendar year 2014 is 0.1 percent, and there will be no additional assessment assigned. If, on September 30, 2014, the balance in the Minnesota Unemployment Trust Fund is more than $900,000,000, the base tax rate for calendar year 2015 is 0.1 percent, and there will be no additional assessment assigned. new text end

new text begin (b) This section expires December 31, 2015. new text end

Sec. 19.

new text begin COMMISSIONER AUTHORIZED TO REQUEST SHARED WORK FUNDS. new text end

new text begin The commissioner of employment and economic development is authorized to request federal funding for Minnesota's shared work unemployment benefit program under Minnesota Statutes, section 268.136. Federal funding is available under the Middle Class Tax Relief and Job Creation Act of 2012, Public Law 112-96. Federal funding provided under that act for the shared work program must be immediately deposited in the Minnesota Unemployment Insurance Trust Fund. The exception under Minnesota Statutes, section 268.047, subdivision 2, clause (10), does not apply to the federal money. 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. 20.

new text begin EFFECTIVE DATE. new text end

new text begin Unless otherwise specified, this article is effective for shared work plans approved on or after July 1, 2013. new text end

ARTICLE 5

MISCELLANEOUS

Section 1.

Minnesota Statutes 2012, section 16B.122, subdivision 2, is amended to read:

Subd. 2.

Purchases; printing.

(a) Whenever practicable, a public entity shall:

(1) purchase uncoated office paper and printing paper;

(2) purchase recycled content paper with at least ten percent postconsumer material by weight;

(3) purchase paper which has not been dyed with colors, excluding pastel colors;

(4) purchase recycled content paper that is manufactured using little or no chlorine bleach or chlorine derivatives;

(5) use no more than two colored inks, standard or processed, except in formats where they are necessary to convey meaning;

(6) use reusable binding materials or staples and bind documents by methods that do not use glue;

(7) use soy-based inks;deleted text begin anddeleted text end

(8) produce reports, publications, and periodicals that are readily recyclable within the state resource recovery programnew text begin ; andnew text end

new text begin (9) purchase paper which has been made on a paper machine located in Minnesotanew text end .

(b) Paragraph (a), clause (1), does not apply to coated paper that is made with at least 50 percent postconsumer material.

(c) A public entity shall print documents on both sides of the paper where commonly accepted publishing practices allow.

(d) Notwithstanding paragraph (a), clause (2), and section 16B.121, copier paper purchased by a state agency must contain at least ten percent postconsumer material by fiber content.

Sec. 2.

Minnesota Statutes 2012, section 154.001, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Comprehensive examination. new text end

new text begin "Comprehensive examination" means all parts of a test administered by the board, including but not limited to written, oral, and practical components. new text end

Sec. 3.

Minnesota Statutes 2012, section 154.003, is amended to read:

154.003 FEES.

(a) The fees collected, as required in this chapter, chapter 214, and the rules of the board, shall be paid to the board. The board shall deposit the fees in the general fund in the state treasury.

(b) The board shall charge the following fees:

(1) examination and certificate, registered barber, $85;

new text begin (2) retake of written examination, registered barber, $10; new text end

deleted text begin (2)deleted text end new text begin (3)new text end examination and certificate, apprentice, $80;

new text begin (4) retake of written examination, apprentice, $10; new text end

deleted text begin (3)deleted text end new text begin (5)new text end examination, instructor, $180;

deleted text begin (4)deleted text end new text begin (6)new text end certificate, instructor, $65;

deleted text begin (5)deleted text end new text begin (7)new text end temporary teacher or apprentice permit, $80;

deleted text begin (6)deleted text end new text begin (8)new text end renewal of license, registered barber, $80;

deleted text begin (7)deleted text end new text begin (9)new text end renewal of license, apprentice, $70;

deleted text begin (8)deleted text end new text begin (10)new text end renewal of license, instructor, $80;

deleted text begin (9)deleted text end new text begin (11)new text end renewal of temporary teacher permit, $65;

deleted text begin (10)deleted text end new text begin (12)new text end student permit, $45;

new text begin (13) renewal of student permit, $25; new text end

deleted text begin (11)deleted text end new text begin (14)new text end initial shop registration, $85;

deleted text begin (12)deleted text end new text begin (15)new text end initial school registration, $1,030;

deleted text begin (13)deleted text end new text begin (16)new text end renewal shop registration, $85;

deleted text begin (14)deleted text end new text begin (17)new text end renewal school registration, $280;

deleted text begin (15)deleted text end new text begin (18)new text end restoration of registered barber license, $95;

deleted text begin (16)deleted text end new text begin (19)new text end restoration of apprentice license, $90;

deleted text begin (17)deleted text end new text begin (20)new text end restoration of shop registration, $105;

deleted text begin (18)deleted text end new text begin (21)new text end change of ownership or location, $55;

deleted text begin (19)deleted text end new text begin (22)new text end duplicate license, $40; deleted text begin anddeleted text end

deleted text begin (20)deleted text end new text begin (23)new text end home study course, deleted text begin $95deleted text end new text begin $75;new text end

new text begin (24) letter of license verification, $25; and new text end

new text begin (25) reinspection, $100new text end .

Sec. 4.

Minnesota Statutes 2012, section 154.02, is amended to read:

154.02 WHAT CONSTITUTES BARBERING.

Any one or any combination of the following practices when done upon the head and neck for cosmetic purposes and not for the treatment of disease or physical or mental ailments and when done for payment directly or indirectly or without payment for the public generally constitutes the practice of barbering within the meaning of sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26: to shavenew text begin the face or necknew text end , trim the beard, cut or bob the hair of any person of either sex for compensation or other reward received by the person performing such service or any other person; to give facial and scalp massage or treatments with oils, creams, lotions, or other preparations either by hand or mechanical appliances; to singe, shampoo the hair, or apply hair tonics; or to apply cosmetic preparations, antiseptics, powders, oils, clays, or lotions to new text begin hair, new text end scalp, face, or neck.

Sec. 5.

Minnesota Statutes 2012, section 154.05, is amended to read:

154.05 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A REGISTERED BARBER.

A person is qualified to receive a certificate of registration as a registered barber:

(1) who is qualified under the provisions of section 154.06;

(2) who has practiced as a registered apprentice for a period of 12 months under the immediate personal supervision of a registered barber; and

(3) who has passed an examination conducted by the board to determine fitness to practice barbering.

An new text begin apprentice new text end applicant for a certificate of registration to practice as a registered barber who fails to pass the new text begin comprehensive new text end examination conducted by the board new text begin and who fails to pass a onetime retake of the written examination, new text end shall continue to practice as an apprentice for an additional deleted text begin two monthsdeleted text end new text begin 300 hoursnew text end before being deleted text begin again entitled to takedeleted text end new text begin eligible to retakenew text end the new text begin comprehensive new text end examination deleted text begin for a registered barberdeleted text end new text begin as many times as necessary to passnew text end .

Sec. 6.

Minnesota Statutes 2012, section 154.06, is amended to read:

154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A REGISTERED APPRENTICE.

A person is qualified to receive a certificate of registration as a registered apprentice:

(1) who has completed at least ten grades of an approved school;

(2) who has graduated from a barber school approved by deleted text begin thedeleted text end new text begin a barbernew text end boardnew text begin within the previous four yearsnew text end ; and

(3) who has passed an examination conducted by the board to determine fitness to practice as a registered apprentice.new text begin An applicant who graduated from a barber school approved by a barber board more than four years prior to application is required to complete a further course of study of at least 500 hours.new text end

An applicant for deleted text begin adeleted text end new text begin an initialnew text end certificate of registration to practice as an apprenticenew text begin ,new text end who fails to pass the new text begin comprehensive new text end examination conducted by the boardnew text begin , and who fails to pass a onetime retake of the written examination, new text end is required to complete a further course of study of at least 500 hours, of not more than eight hours in any one working day, in a barber school approved by the boardnew text begin before being eligible to retake the comprehensive examination as many times as necessary to passnew text end .

A certificate of registration of an apprentice shall be valid for four years deleted text begin from the date the certificate of registration is issued by the boarddeleted text end and shall not be renewednew text begin for a fifth yearnew text end . During the four-year period the certificate of registration shall remain in full force and effect only if the apprentice complies with all the provisions of sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, including the payment of an annual fee, and the rules of the board.

If a registered apprentice, during the term in which the certificate of registration is in effect, enters full-time active duty in the armed forces of the United States of America, the expiration date of the certificate of registration shall be extended by a period of time equal to the period or periods of active duty.

new text begin If a registered apprentice graduates from a barber school approved by the board and is issued a certificate of registration while incarcerated by the Department of Corrections of the Federal Bureau of Prisons, the expiration date of the certificate of registration shall be extended one time so that it expires four years from the date of first release from a correctional facility. new text end

Sec. 7.

Minnesota Statutes 2012, section 154.065, subdivision 2, is amended to read:

Subd. 2.

Qualifications.

A person is qualified to receive a certificate of registration as an instructor of barbering who:

(1) is a graduate deleted text begin fromdeleted text end new text begin ofnew text end an approved high school, or its equivalent, as determined by examination by the Department of Education;

(2) has deleted text begin qualified for a teacher's or instructor's vocational certificate;deleted text end new text begin successfully completed vocational instructor training from a board-approved program or accredited college or university program that includes the following courses or their equivalents as determined by the board:new text end

new text begin (i) introduction to career and technical education training; new text end

new text begin (ii) philosophy and practice of career and technical education; new text end

new text begin (iii) course development for career and technical education; new text end

new text begin (iv) instructional methods for career and technical education; and new text end

new text begin (v) human relations; new text end

(3) new text begin is currently a registered barber and new text end has at least three years experience as a registered barber in this state, or its equivalent as determined by the board; and

(4) has passed an examination conducted by the board to determine fitness to instruct in barbering.

deleted text begin A certificate of registration under this section is provisional until a teacher's or instructor's vocational certificate has been issued by the Department of Education. A provisional certificate of registration is valid for 30 days and is not renewable. deleted text end

Sec. 8.

Minnesota Statutes 2012, section 154.07, subdivision 1, is amended to read:

Subdivision 1.

Admission requirements; course of instruction.

No barber school shall be approved by the board unless it requires, as a prerequisite to admission, ten grades of an approved school or its equivalent, as determined by an examination conducted by the commissioner of education, which shall issue a certificate that the student has passed the required examination, and unless it requires, as a prerequisite to graduation, a course of instruction of at least 1,500 hours, of not more than eight hours in any one working day. The course of instruction must include the following subjects: scientific fundamentals for barbering; hygiene; practical study of the hair, skin, muscles, and nerves; structure of the head, face, and neck; elementary chemistry relating to sterilization and antiseptics; diseases of the skin, hair, and glands; massaging and manipulating the muscles of the face and neck; haircutting; shaving; trimming the beard; bleaching, tinting and dyeing the hair; and the chemical new text begin waving and new text end straightening of hair.

Sec. 9.

Minnesota Statutes 2012, section 154.08, is amended to read:

154.08 APPLICATION; FEE.

Each applicant for an examination shall:

(1) make application to the Board of Barber Examiners on blank forms prepared and furnished by it, the application to contain proof under the applicant's oath of the particular qualifications new text begin and identity new text end of the applicant;

(2) deleted text begin furnish to the board two five-inch x three-inch signed photographs of the applicant, one to accompany the application and one to be returned to the applicant, to be presented to the board when the applicant appears for examinationdeleted text end new text begin provide all documentation required in support of the applicationnew text end ; deleted text begin anddeleted text end

(3) pay to the board the required feenew text begin ; andnew text end

new text begin (4) present a government-issued photo identification as proof of identity upon application and when the applicant appears for examinationnew text end .

Sec. 10.

Minnesota Statutes 2012, section 154.09, is amended to read:

154.09 EXAMINATIONS, CONDUCT AND SCOPE.

The board shall conduct examinations of applicants for certificates of registration to practice as barbers and apprentices not more than six times each year, at such time and place as the board may determine. new text begin Additional written examinations may be scheduled by the board and conducted by board staff as designated by the board. The proprietor of a barber school must file new text end an affidavit deleted text begin shall be fileddeleted text end with the board deleted text begin by the proprietor of a barber school thatdeleted text end new text begin of hours completed bynew text end students applying to take the apprentice examination deleted text begin have completeddeleted text end new text begin . Students must completenew text end 1,500 hours in a barber school deleted text begin registered withdeleted text end new text begin approved bynew text end the board.

The examination of applicants for certificates of registration as barbers and apprentices shall include deleted text begin bothdeleted text end a practical demonstration and a written and oral test deleted text begin and embracedeleted text end new text begin . The examination must covernew text end the subjects usually taught in barber schools registered with the board.

Sec. 11.

Minnesota Statutes 2012, section 154.10, subdivision 1, is amended to read:

Subdivision 1.

Application.

Each applicant for an initial certificate of registration shall make application to the board on forms prepared and furnished by the board with proof under oath of the particular qualifications new text begin and identity new text end of each applicant. This application shall be accompanied by a fee prescribed by law or the rules of the board to defray the expenses of making investigation and for the examination of such applicant.

Sec. 12.

Minnesota Statutes 2012, section 154.11, subdivision 1, is amended to read:

Subdivision 1.

Examination of nonresidents.

A person who meets all of the requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate of registration, or an equivalent as a practicing barber or instructor of barbering from another state or country which in the discretion of the board has substantially the same requirements for registering barbers and instructors of barbering as required by sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or can prove by sworn affidavits practice as a barber or instructor of barbering in another state or country for at least five years immediately prior to making application in this state, shall, upon payment of the required fee, be issued a certificate of registration without examinationdeleted text begin , provided that the other state or country grants the same privileges to holders of Minnesota certificates of registrationdeleted text end .

Sec. 13.

Minnesota Statutes 2012, section 154.12, is amended to read:

154.12 EXAMINATION OF NONRESIDENT APPRENTICES.

A person who meets all of the requirements for registration as a barber in sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and who has a license, a certificate of registration, or its equivalent as an apprentice in a state or country which in the discretion of the board has substantially the same requirements for registration as an apprentice as is provided by sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, shall, upon payment of the required fee, be issued a certificate of registration without examinationdeleted text begin , provided that the other state or country grants the same privileges to holders of Minnesota certificates of registrationdeleted text end .

Sec. 14.

Minnesota Statutes 2012, section 154.14, is amended to read:

154.14 CERTIFICATES OF REGISTRATION AND TEMPORARY PERMITS TO BE DISPLAYED.

Every holder of a certificate of registration as a registered barber or registered apprentice or temporary apprentice permit shall display deleted text begin itdeleted text end new text begin the certificate or permit, with a photograph of the certificate or permit holder that meets the same standards as required for a United States passport,new text end in a conspicuous place adjacent to or near the chair where work is performed. Every holder of a certificate of registration as an instructor of barbering or deleted text begin as a barber school, ofdeleted text end a temporary permit as an instructor of barberingdeleted text begin ,deleted text end new text begin shall display the certificate or permit, with a photograph of the certificate or permit holder that meets the same standards as required for a United States passport, in a conspicuous place accessible to the public. Every holder of a certificate of registration as a barber school new text end and of a shop registration card shall display it in a conspicuous place accessible to the public.

Sec. 15.

Minnesota Statutes 2012, section 154.15, subdivision 2, is amended to read:

Subd. 2.

Effect of failure to renew.

A registered barber or a registered apprentice who has not renewed a certificate of registration may be reinstated within deleted text begin one yeardeleted text end new text begin four yearsnew text end of such failure to renew without examination upon the payment of the required restoration feenew text begin for each year the certificate is lapsednew text end . A registered instructor of barbering who has not renewed a certificate of registration may be reinstated within deleted text begin threedeleted text end new text begin fournew text end years of such failure to renew without examination upon payment of the required restoration feenew text begin for each year the certificate is lapsednew text end . All registered barbers and registered apprentices who allow their certificates of registration to lapse for more than deleted text begin one yeardeleted text end new text begin four yearsnew text end shall be required to reexamine before being issued a certificate of registration. All registered instructors of barbering who allow their certificates of registration to lapse for more than deleted text begin threedeleted text end new text begin fournew text end years shall be required to reexamine before being issued a certificate of registration.new text begin A barber shop owner who has not renewed the barber shop certificate for more than one year may reinstate the barber shop registration upon payment of the restoration fee for each year the shop card was lapsed. If lapsed or unlicensed status is discovered by the barber inspector during inspection, penalties under section 154.162 shall apply.new text end

Sec. 16.

new text begin [154.162] ADMINISTRATIVE PENALTIES. new text end

new text begin The board shall impose and collect the following penalties: new text end

new text begin (1) missing or lapsed shop registration discovered upon inspection; penalty imposed on shop owner: $500; new text end

new text begin (2) unlicensed or unregistered apprentice or registered barber, first occurrence discovered upon inspection; penalty imposed on shop owner and unlicensed or unregistered individual: $500; and new text end

new text begin (3) unlicensed or unregistered apprentice or registered barber, second occurrence discovered upon inspection; penalty imposed on shop owner and unlicensed or unregistered individual: $1,000. new text end

Sec. 17.

Minnesota Statutes 2012, section 154.26, is amended to read:

154.26 MUNICIPALITIES deleted text begin MAY REGULATE HOURSdeleted text end new text begin ; REGULATION AUTHORIZEDnew text end .

The governing body of any city of this state may regulate by ordinance the opening and closing hours of barber shops within its municipal limitsnew text begin in addition to all other applicable local regulationsnew text end .

Sec. 18.

new text begin [154.27] MISREPRESENTATION. new text end

new text begin No person shall represent themselves to the public, solicit business, advertise as a licensed barber or as operating a licensed barber shop, use the title or designation of barber or barber shop, engage in any other act or practice that would create the impression to members of the public that the person is a licensed barber or is operating a licensed barber shop unless the person holds the appropriate license under this chapter. Violation of this section is a petty misdemeanor. new text end

Sec. 19.

new text begin [154.28] SYMBOLS; BARBER POLE. new text end

new text begin No person shall place a barber pole in a location that would create or tend to create the impression to the public that the business is a barber shop unless the operator holds a valid license under this chapter. For the purposes of this section, "barber pole" means a red and white or red, white, and blue striped vertical cylinder commonly recognized as a barber pole. Violation of this section is a petty misdemeanor. new text end

Sec. 20.

Minnesota Statutes 2012, section 155A.23, subdivision 3, is amended to read:

Subd. 3.

Cosmetology.

"Cosmetology" is the practice of personal services, for compensation, for the cosmetic care of the hair, nails, and skin. These services include cleaning, conditioning, shaping, reinforcing, coloring and enhancing the body surface in the areas of the head, scalp, face, arms, hands, legs, deleted text begin anddeleted text end feet,new text begin and trunk of the body,new text end except where these services are performed by a barber under sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26.

Sec. 21.

Minnesota Statutes 2012, section 155A.23, subdivision 8, is amended to read:

Subd. 8.

Manager.

A "manager" is any person who conducts, operates, or manages a cosmetology school or salon and who also instructs in or provides any services, as defined in subdivision 3.new text begin A school manager must maintain an active salon manager's license.new text end

Sec. 22.

Minnesota Statutes 2012, section 155A.23, subdivision 11, is amended to read:

Subd. 11.

Instructor.

An "instructor" is any person employed by a school to prepare and present the theoretical and practical education of cosmetology to persons who seek to practice cosmetology.new text begin An instructor must maintain an active operator or manager's license in the area in which the instructor holds an instructor's license.new text end

Sec. 23.

Minnesota Statutes 2012, section 155A.25, subdivision 1a, is amended to read:

Subd. 1a.

Schedule.

The fee schedule for licensees is as follows deleted text begin for licenses issued after June 30, 2010, and prior to July 1, 2013deleted text end :

(a) Three-year license fees:

(1) cosmetologist, deleted text begin manicuristdeleted text end new text begin nail techniciannew text end , or esthetician:

(i) $90 for each initial license and a $40 nonrefundable initial license application fee, for a total of $130; and

(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for a total of $75;

(2) instructor or manager:

(i) $120 for each initial license and a $40 nonrefundable initial license application fee, for a total of $160; and

(ii) $90 for each renewal and a $15 nonrefundable renewal application fee, for a total of $105;

(3) salon:

(i) $130 for each initial license and a $100 nonrefundable initial license application fee, for a total of $230; and

(ii) $100 for each renewal and a $50 nonrefundable renewal application fee, for a total of $150; and

(4) school:

(i) $1,500 for each initial license and a $1,000 nonrefundable initial license application fee, for a total of $2,500; and

(ii) $1,500 for each renewal and a $500 nonrefundable renewal application fee, for a total of $2,000.

(b) Penalties:

(1) reinspection fee, variable;

(2) manager and owner with lapsed practitionernew text begin found on inspectionnew text end , $150 each;

new text begin (3) lapsed practitioner or instructor found on inspection, $200; new text end

new text begin (4) lapsed salon found on inspection, $500; new text end

new text begin (5) lapsed school found on inspection, $1,000; new text end

new text begin (6) failure to display current license, $100; new text end

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

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

new text begin (9) performing manicuring or cosmetology services in esthetician salon, or performing esthetician or cosmetology services in manicure salon, $500; new text end

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

new text begin (11) operator working as an independent contractor, $100; new text end

new text begin (12) refusal or failure to cooperate with an inspection, $500; new text end

deleted text begin (3)deleted text end new text begin (13)new text end expired cosmetologist, manicurist, esthetician, manager, school manager, and instructor license, $45; and

deleted text begin (4)deleted text end new text begin (14)new text end expired salon or school license, $50.

(c) Administrative fees:

(1) certificate of identification, $20;

(2) name change, $20;

(3) letter of license verification, $30;

(4) duplicate license, $20;

(5) processing fee, $10;

(6) special event permit, $75 per year; and

(7) registration of hair braiders, $20 per year.

Sec. 24.

Minnesota Statutes 2012, section 155A.25, subdivision 4, is amended to read:

Subd. 4.

License expiration date.

The board shall, in a manner determined by the board and without the need for rulemaking under chapter 14, phase in changes to initial and renewal license expiration dates so that by January 1, 2014:

(1) individual licenses expire on the last day of the licensee's birth month of the year due; and

(2) salon new text begin and school new text end licenses expire on the last day of the month of initial licensure of the year due.

Sec. 25.

Minnesota Statutes 2012, section 155A.27, subdivision 4, is amended to read:

Subd. 4.

Testing.

new text begin All theory, practical, and Minnesota law and rule testing must be done by a board-approved provider. new text end Appropriate standardized tests shall be used and shall include subject matter relative to the application of Minnesota law. In every case, the primary consideration shall be to safeguard the health and safety of consumers by determining the competency of the applicants to provide the services indicated.

Sec. 26.

Minnesota Statutes 2012, section 155A.27, subdivision 7, is amended to read:

Subd. 7.

Renewals.

Renewal of license shall be for a period of three years under conditions and process established by rulenew text begin and subject to continuing education requirements of section 155A.271new text end .

Sec. 27.

Minnesota Statutes 2012, section 155A.27, subdivision 10, is amended to read:

Subd. 10.

Nonresident licenses.

new text begin (a) new text end A nonresident cosmetologist, manicurist, or esthetician may be licensed in Minnesota if the individual has completed cosmetology school in a state or country with the same or greater school hour requirements, has an active license in that state or country, and has passed new text begin a board-approved theory and practice-based examination, new text end the Minnesota-specific written operator examination for cosmetologist, manicurist, or esthetician. If a test is used to verify the qualifications of trained cosmetologists, the test should be translated into the nonresident's native language within the limits of available resources. Licenses shall not be issued under this subdivision for managers or instructors.

new text begin (b) If an individual has less than the required number of school hours, the individual must have had a current active license in another state or country for at least three years and have passed a board-approved theory and practice-based examination, or the Minnesota-specific written operator examination for cosmetologist, manicurist, or esthetician. If a test is used to verify the qualifications of trained cosmetologists, the test should be translated into the nonresident's native language within the limits of available resources. Licenses must not be issued under this subdivision for managers or instructors. new text end

new text begin (c) Applicants claiming training and experience in a foreign country shall supply official English-language translations of all required documents from a board-approved source. new text end

Sec. 28.

new text begin [155A.271] CONTINUING EDUCATION REQUIREMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Continuing education requirements. new text end

new text begin Effective August 1, 2014, to qualify for license renewal under this chapter as an individual cosmetologist, nail technician, esthetician, or salon manager, the applicant must attest to the completion of four hours of continuing education credits from an accredited school or a professional association of cosmetology during the three years prior to the applicant's renewal date. One credit hour of the requirement must include instruction pertaining to state laws and rules governing the practice of cosmetology. Three credit hours must include instruction pertaining to health, safety, and sanitation matters consistent with the United States Department of Labor's Occupational Safety and Health Administration standards applicable to the practice of cosmetology, or other applicable federal health, sanitation, and safety standards, and must be regularly updated so as to incorporate newly developed standards and accepted professional best practices. Credit hours earned are valid for three years and may be applied simultaneously to all individual licenses held by a licensee under this chapter. This subdivision does not apply to instructors or inactive licenses. new text end

new text begin Subd. 2. new text end

new text begin Schools and professional associations. new text end

new text begin Only a board-licensed school of cosmetology, a postsecondary institution as defined in section 136A.103, paragraph (a), or a board-recognized professional association may offer continuing education curriculum for credit under this section. The school and professional association may offer online and independent study options to achieve maximum involvement of licensees and is encouraged to offer classes available in foreign language formats. new text end

new text begin Subd. 3. new text end

new text begin Proof of credits. new text end

new text begin The school or professional association shall provide to licensees who attend a class a receipt to prove completion of the class. Licensees shall retain proof of their continuing education credits for one year beyond the credit's expiration. The school or professional association shall retain documentation of all licensees successfully completing a class and the licensee's credit hours for five years. new text end

new text begin Subd. 4. new text end

new text begin Audit. new text end

new text begin The board shall conduct random audits of active licensees periodically to ensure compliance with continuing education requirements. To initiate an audit, the board shall notify an active licensee of the audit and request proof of credits earned during a specified period. The licensee must provide the requested proof to the board within 30 days of an audit notice. The board may request that a school or professional association verify a licensee's credits. The school or professional association must furnish verification, or a written statement that the credits are not verified, within 15 days of the board's request for verification. If the board determines that a licensee has failed to provide proof of necessary credits earned during the specified time, the board may revoke the individual's license and may deem the individual a lapsed practitioner subject to penalty under section 155A.25 or 155A.36. new text end

Sec. 29.

Minnesota Statutes 2012, section 155A.29, subdivision 2, is amended to read:

Subd. 2.

Requirements.

(a) The conditions and process by which a salon is licensed shall be established by the board by rule. In addition to those requirements, no license shall be issued unless the board first determines that the conditions in clauses (1) to (5) have been satisfied:

(1) compliance with all local and state laws, particularly relating to matters of sanitation, health, and safety;

(2) the employment of a manager, as defined in section 155A.23, subdivision 8;

deleted text begin (3) inspection and licensing prior to the commencing of business; deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end if applicable, evidence of compliance with section 176.182; and

deleted text begin (5)deleted text end new text begin (4)new text end evidence of continued professional liability insurance coverage of at least $25,000 for each claim and $50,000 total coverage for each policy year for each operator.

(b) A licensed esthetician or manicurist who complies with the health, safety, sanitation, inspection, and insurance rules promulgated by the board to operate a salon solely for the performance of those personal services defined in section 155A.23, subdivision 5, in the case of an esthetician, or subdivision 7, in the case of a manicurist.

Sec. 30.

Minnesota Statutes 2012, section 155A.30, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Instruction requirements. new text end

new text begin (a) Instruction may be offered for no more than ten hours per day per student. new text end

new text begin (b) Instruction must be given within a licensed school building. Online instruction is permitted for board-approved theory-based classes. Practice-based classes must not be given online. new text end

Sec. 31.

new text begin [155A.355] PROHIBITED USES. new text end

new text begin Subdivision 1. new text end

new text begin Single-use equipment and materials. new text end

new text begin Single-use equipment, implements, or materials that are made or constructed of paper, wood, or other porous materials must only be used for one application or client service. Presence of used articles in the work area is prima facie evidence of reuse. Failure to dispose of the materials in this subdivision is punishable by penalty under section 155A.25, subdivision 1a, paragraph (b), clause (7). new text end

new text begin Subd. 2. new text end

new text begin Skin-cutting equipment. new text end

new text begin Razor-type callus shavers, rasps, or graters designed and intended to cut growths of skin such as corns and calluses, including but not limited to credo blades, are prohibited. Presence of these articles in the work area is prima facie evidence of use and is punishable by penalty in section 155A.25, subdivision 1a, paragraph (b), clause (8). new text end

new text begin Subd. 3. new text end

new text begin Substances. new text end

new text begin Licensees must not use any of the following substances or products in performing cosmetology services: new text end

new text begin (1) methyl methacrylate liquid monomers, also known as MMA; and new text end

new text begin (2) fumigants, including but not limited to formalin tablets or formalin liquids. new text end

Sec. 32.

new text begin [179.90] OFFICE OF COLLABORATION AND DISPUTE RESOLUTION. new text end

new text begin The commissioner of mediation services shall establish an Office of Collaboration and Dispute Resolution within the bureau. The office must: new text end

new text begin (1) promote the broad use of community mediation in the state, ensuring that all areas of the state have access to services by providing grants to private nonprofits entities certified by the state court administrator under chapter 494 that assist in resolution of disputes; new text end

new text begin (2) assist state agencies, offices of the executive, legislative, and judicial branches, and units of local government in improving collaboration and dispute resolution; new text end

new text begin (3) support collaboration and dispute resolution in the public and private sector by providing technical assistance and information on best practices and new developments in dispute resolution options; new text end

new text begin (4) educate the public and governmental entities on dispute resolution options; and new text end

new text begin (5) promote and utilize collaborative dispute resolution models and processes based on documented best practices including, but not limited to, the Minnesota Solutions model: new text end

new text begin (i) establishing criteria and procedures for identification and assessment of dispute resolution projects; new text end

new text begin (ii) designating projects and appointing impartial convenors by the commissioner or the commissioner's designee; new text end

new text begin (iii) forming multidisciplinary conflict resolution teams; and new text end

new text begin (iv) utilizing collaborative techniques, processes, and standards through facilitated meetings until consensus among parties is reached in resolving a dispute. new text end

Sec. 33.

new text begin [179.91] GRANTS. new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The commissioner of mediation services shall to the extent funds are appropriated for this purpose, make grants to private nonprofit community mediation entities certified by the state court administrator under chapter 494 that assist in resolution of disputes. The commissioner shall establish a grant review committee to assist in the review of grant applications and the allocation of grants under this section. new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin To be eligible for a grant under this section, a nonprofit organization must meet the requirements of section 494.05, subdivision 1, clauses (1), (2), (4), and (5). new text end

new text begin Subd. 3. new text end

new text begin Conditions and exclusions. new text end

new text begin A nonprofit entity receiving a grant must agree to comply with guidelines adopted by the state court administrator under section 494.015, subdivision 1. Sections 16B.97 and 16B.98 and policies adopted under those sections apply to grants under this section. The exclusions in section 494.03 apply to grants under this section. new text end

new text begin Subd. 4. new text end

new text begin Reporting. new text end

new text begin Grantees must report data required under chapter 494 to evaluate quality and outcomes. new text end

Sec. 34.

Minnesota Statutes 2012, section 298.22, subdivision 1, is amended to read:

Subdivision 1.

The office of the commissioner of Iron Range resources and rehabilitation.

(1) The office of the commissioner of Iron Range resources and rehabilitation is created as an agency in the executive branch of state government. The governor shall appoint the commissioner of Iron Range resources and rehabilitation under section 15.06.

(2) The commissioner may hold other positions or appointments that are not incompatible with duties as commissioner of Iron Range resources and rehabilitation. The commissioner may appoint a deputy commissioner. All expenses of the commissioner, including the payment of staff and other assistance as may be necessary, must be paid out of the amounts appropriated by section 298.28 or otherwise made available by law to the commissioner.new text begin Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting options available under section 471.345 when the commissioner determines it is in the best interest of the agency. The agency is not subject to sections 16E.016 and 16C.05.new text end

(3) When the commissioner determines that distress and unemployment exists or may exist in the future in any county by reason of the removal of natural resources or a possibly limited use of natural resources in the future and any resulting decrease in employment, the commissioner may use whatever amounts of the appropriation made to the commissioner of revenue in section 298.28 that are determined to be necessary and proper in the development of the remaining resources of the county and in the vocational training and rehabilitation of its residents, except that the amount needed to cover cost overruns awarded to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in effect after July 1, 1985, is appropriated from the general fund. For the purposes of this section, "development of remaining resources" includes, but is not limited to, the promotion of tourism.

Sec. 35.

Minnesota Statutes 2012, section 298.28, subdivision 9c, is amended to read:

Subd. 9c.

deleted text begin Temporarydeleted text end Distribution; city of Eveleth.

0.20 cent per taxable ton must be paid to the city of Eveleth for distribution in deleted text begin 2007 through 2011 onlydeleted text end new text begin 2013 and thereafternew text end , to be used for the support of the Hockey Hall of Fame, provided that it continues to operate in that city, and provided that the city of Eveleth certifies to the St. Louis County auditor that it has received donations for the support of the Hockey Hall of Fame from deleted text begin professional hockey organizations ordeleted text end other donors deleted text begin in an amount at least equaldeleted text end deleted text begin to the amount of the distribution under this subdivisiondeleted text end . If the Hockey Hall of Fame ceases to operate in the city of Eveleth prior to receipt of the distribution in deleted text begin eitherdeleted text end new text begin any new text end year, and the governing body of the city determines that it is unlikely to resume operation there within a six-month period, the distribution under this subdivision shall be made to the Iron Range Resources and Rehabilitation Board. deleted text begin If the amount of the distribution authorized under this subdivision exceeds the total amount of donations for the support of the Hockey Hall of Fame during the 12-month period ending 30 days before the date of the distribution, the amount by which 0.20 cent per ton exceeds the donations shall be distributed to the Iron Range Resources and Rehabilitation Board.deleted text end

Sec. 36.

Minnesota Statutes 2012, section 326A.04, subdivision 2, is amended to read:

Subd. 2.

Timing.

(a) Certificates must be initially issued and renewed deleted text begin for periods of not more than three yearsdeleted text end new text begin annuallynew text end but in any event must expire on December 31 in the year prescribed by the board by rule. Applications for certificates must be made in the form, and in the case of applications for renewal between the dates, specified by the board in rule. The board shall grant or deny an application no later than 90 days after the application is filed in proper form. If the applicant seeks the opportunity to show that issuance or renewal of a certificate was mistakenly denied, or if the board is unable to determine whether it should be granted or denied, the board may issue to the applicant a provisional certificate that expires 90 days after its issuance, or when the board determines whether or not to issue or renew the certificate for which application was made, whichever occurs first.

(b) Certificate holders who do not provide professional services and do not use the certified public accountant designation in any manner are not required to renew their certificates provided they have notified the board as provided in board rule and comply with the requirements for nonrenewal as specified in board rule.

(c) Applications for renewal of a certificate that are complete and timely filed with the board and are not granted or denied by the board before January 1 are renewed on a provisional basis as of January 1 and for 90 days thereafter, or until the board grants or denies the renewal of the certificate, whichever occurs first, provided the licensee meets the requirements in this chapter and rules adopted by the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for licenses issued or renewed after January 1, 2014. new text end

Sec. 37.

Minnesota Statutes 2012, section 326A.04, subdivision 3, is amended to read:

Subd. 3.

Residents of other states.

(a) With regard to an applicant who must obtain a certificate in this state because the applicant does not qualify under the substantial equivalency standard in section 326A.14, subdivision 1, the board shall issue a certificate to a holder of a certificate, license, or permit issued by another state upon a showing that:

(1) the applicant passed the examination required for issuance of a certificate in this state;

(2) the applicant had four years of experience of the type described in section 326A.03, subdivision 6, paragraph (b)deleted text begin , if application is made on or after July 1, 2006, or section 326A.03, subdivision 8, if application is made before July 1, 2006deleted text end ; or the applicant meets equivalent requirements prescribed by the board by rule, after passing the examination upon which the applicant's certificate was based and within the ten years immediately preceding the application;

(3) if the applicant's certificate, license, or permit was issued more than four years prior to the application for issuance of an initial certificate under this subdivision, that the applicant has fulfilled the requirements of continuing professional education that would have been applicable under subdivision 4; and

(4) the applicant has met the qualifications prescribed by the board by rule.

(b) A certificate holder licensed by another state who establishes a principal place of business in this state shall request the issuance of a certificate from the board prior to establishing the principal place of business. The board shall issue a certificate to the person if the person's individual certified public accountant qualifications, upon verification, are substantially equivalent to the certified public accountant licensure requirements of this chapter or the person meets equivalent requirements as the board prescribes by rule. Residents of this state who provide professional services in this state at an office location in this state shall be considered to have their principal place of business in this state.

Sec. 38.

Minnesota Statutes 2012, section 326A.04, subdivision 5, is amended to read:

Subd. 5.

Fee.

new text begin (a) new text end The board shall charge a fee for each application for initial issuance or renewal of a certificate under this section new text begin as provided in paragraph (b)new text end .

new text begin (b) The board shall charge the following fees: new text end

new text begin (1) initial issuance of certificate, $150; new text end

new text begin (2) renewal of certificate with an active status, $100 per year; new text end

new text begin (3) initial CPA firm permits, except for sole practitioners, $100; new text end

new text begin (4) renewal of CPA firm permits, except for sole practitioners and those firms specified in clause (17), $35 per year; new text end

new text begin (5) initial issuance and renewal of CPA firm permits for sole practitioners, except for those firms specified in clause (17), $35 per year; new text end

new text begin (6) annual late processing delinquency fee for permit, certificate, or registration renewal applications not received prior to expiration date, $50; new text end

new text begin (7) copies of records, per page, 25 cents; new text end

new text begin (8) registration of noncertificate holders, nonlicensees, and nonregistrants in connection with renewal of firm permits, $45 per year; new text end

new text begin (9) applications for reinstatement, $20; new text end

new text begin (10) initial registration of a registered accounting practitioner, $50; new text end

new text begin (11) initial registered accounting practitioner firm permits, $100; new text end

new text begin (12) renewal of registered accounting practitioner firm permits, except for sole practitioners, $100 per year; new text end

new text begin (13) renewal of registered accounting practitioner firm permits for sole practitioners, $35 per year; new text end

new text begin (14) CPA examination application, $40; new text end

new text begin (15) CPA examination, fee determined by third-party examination administrator; new text end

new text begin (16) renewal of certificates with an inactive status, $25 per year; and new text end

new text begin (17) renewal of CPA firm permits for firms that have one or more offices located in another state, $68 per year. new text end

Sec. 39.

Minnesota Statutes 2012, section 326A.04, subdivision 7, is amended to read:

Subd. 7.

Certificates issued by foreign countries.

The board shall issue a certificate to a holder of a generally equivalent foreign country designation, provided that:

(1) the foreign authority that granted the designation makes similar provision to allow a person who holds a valid certificate issued by this state to obtain the foreign authority's comparable designation;

(2) the foreign designation:

(i) was duly issued by a foreign authority that regulates the practice of public accountancy and the foreign designation has not expired or been revoked or suspended;

(ii) entitles the holder to issue reports upon financial statements; and

(iii) was issued upon the basis of educational, examination, and experience requirements established by the foreign authority or by law; and

(3) the applicant:

(i) received the designation, based on educational and examination standards generally equivalent to those in effect in this state, at the time the foreign designation was granted;

(ii) has, within the ten years immediately preceding the application, completed an experience requirement that is generally equivalent to the requirement in section 326A.03, subdivision 6, paragraph (b), deleted text begin if application is made on or after July 1, 2006, or section 326A.03, subdivision 8, if application is made before July 1, 2006,deleted text end in the jurisdiction that granted the foreign designation; completed four years of professional experience in this state; or met equivalent requirements prescribed by the board by rule; and

(iii) passed a uniform qualifying examination in national standards and an examination on the laws, regulations, and code of ethical conduct in effect in this state as the board prescribes by rule.

Sec. 40.

Minnesota Statutes 2012, section 326A.10, is amended to read:

326A.10 UNLAWFUL ACTS.

(a) Only a licensee and individuals who have been granted practice privileges under section 326A.14 may issue a report on financial statements of any person, firm, organization, or governmental unit that results from providing attest services, or offer to render or render any attest service. Only a certified public accountant, an individual who has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent permitted by board rule, a person registered under section 326A.06, paragraph (b), may issue a report on financial statements of any person, firm, organization, or governmental unit that results from providing compilation services or offer to render or render any compilation service. These restrictions do not prohibit any act of a public official or public employee in the performance of that person's duties or prohibit the performance by any nonlicensee of other services involving the use of accounting skills, including the preparation of tax returns, management advisory services, and the preparation of financial statements without the issuance of reports on them. Nonlicensees may prepare financial statements and issue nonattest transmittals or information on them which do not purport to be in compliance with the Statements on Standards for Accounting and Review Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may, to the extent permitted by board rule, prepare financial statements and issue nonattest transmittals or information on them.

(b) Licensees and individuals who have been granted practice privileges under section 326A.14 performing attest or compilation services must provide those services in accordance with professional standards. To the extent permitted by board rule, registered accounting practitioners performing compilation services must provide those services in accordance with standards specified in board rule.

(c) A person who does not hold a valid certificate issued under section 326A.04 or a practice privilege granted under section 326A.14 shall not use or assume the title "certified public accountant," the abbreviation "CPA," or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the person is a certified public accountant.

(d) A firm shall not provide attest services or assume or use the title "certified public accountants," the abbreviation "CPA's," or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless (1) the firm has complied with section 326A.05, and (2) ownership of the firm is in accordance with this chapter and rules adopted by the board.

(e) A person or firm that does not hold a valid certificate or permit issued under section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or 326A.05 as required in this chapter shall not assume or use the title "certified accountant," "chartered accountant," "enrolled accountant," "licensed accountant," "registered accountant," "accredited accountant," "accounting practitioner," "public accountant," "licensed public accountant," or any other title or designation likely to be confused with the title "certified public accountant," or use any of the abbreviations "CA," "LA," "RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals so designated by the Internal Revenue Service.

(f) Persons registered under section 326A.06, paragraph (b), may use the title "registered accounting practitioner" or the abbreviation "RAP." A person who does not hold a valid registration under section 326A.06, paragraph (b), shall not assume or use such title or abbreviation.

(g) Except to the extent permitted in paragraph (a), nonlicensees may not use language in any statement relating to the financial affairs of a person or entity that is conventionally used by licensees in reports on financial statements. In this regard, the board shall issue by rule safe harbor language that nonlicensees may use in connection with such financial information. A person or firm that does not hold a valid certificate or permit, or a registration issued under section 326A.04, 326A.05, or 326A.06, paragraph (b), or has not otherwise complied with section 326A.04 or 326A.05 as required in this chapter shall not assume or use any title or designation that includes the word "accountant" or "accounting" in connection with any other language, including the language of a report, that implies that the person or firm holds such a certificate, permit, or registration or has special competence as an accountant. A person or firm that does not hold a valid certificate or permit issued under section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or 326A.05 as required in this chapter shall not assume or use any title or designation that includes the word "auditor" in connection with any other language, including the language of a report, that implies that the person or firm holds such a certificate or permit or has special competence as an auditor. However, this paragraph does not prohibit any officer, partner, member, manager, or employee of any firm or organization from affixing that person's own signature to any statement in reference to the financial affairs of such firm or organization with any wording designating the position, title, or office that the person holds, nor prohibit any act of a public official or employee in the performance of the person's duties as such.

(h)new text begin (1)new text end No person holding a certificate or registration or firm holding a permit under this chapter shall use a professional or firm name or designation that is misleading about the legal form of the firm, or about the persons who are partners, officers, members, managers, or shareholders of the firm, or about any other matter. However, names of one or more former partners, members, managers, or shareholders may be included in the name of a firm or its successor.

new text begin (2) A common brand name or network name part, including common initials, used by a CPA firm in its name, is not misleading if the firm is a network firm as defined in the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct in effect July 1, 2011, and when offering or rendering services that require independence under AICPA standards, the firm must comply with the AICPA code's applicable standards on independence. new text end

(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification, designation, degree, or license granted in a foreign country entitling the holder to engage in the practice of public accountancy or its equivalent in that country, if:

(1) the activities of the person or firm in this state are limited to the provision of professional services to persons or firms who are residents of, governments of, or business entities of the country in which the person holds the entitlement;

(2) the person or firm performs no attest or compilation services and issues no reports with respect to the financial statements of any other persons, firms, or governmental units in this state; and

(3) the person or firm does not use in this state any title or designation other than the one under which the person practices in the foreign country, followed by a translation of the title or designation into English, if it is in a different language, and by the name of the country.

(j) No holder of a certificate issued under section 326A.04 may perform attest services through any business form that does not hold a valid permit issued under section 326A.05.

(k) No individual licensee may issue a report in standard form upon a compilation of financial information through any form of business that does not hold a valid permit issued under section 326A.05, unless the report discloses the name of the business through which the individual is issuing the report, and the individual:

(1) signs the compilation report identifying the individual as a certified public accountant;

(2) meets the competency requirement provided in applicable standards; and

(3) undergoes no less frequently than once every three years, a peer review conducted in a manner specified by the board in rule, and the review includes verification that the individual has met the competency requirements set out in professional standards for such services.

(l) No person registered under section 326A.06, paragraph (b), may issue a report in standard form upon a compilation of financial information unless the board by rule permits the report and the person:

(1) signs the compilation report identifying the individual as a registered accounting practitioner;

(2) meets the competency requirements in board rule; and

(3) undergoes no less frequently than once every three years a peer review conducted in a manner specified by the board in rule, and the review includes verification that the individual has met the competency requirements in board rule.

(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from preparing or presenting records or documents customarily prepared by an attorney or firm of attorneys in connection with the attorney's professional work in the practice of law.

(n) The board shall adopt rules that place limitations on receipt by a licensee or a person who holds a registration under section 326A.06, paragraph (b), of:

(1) contingent fees for professional services performed; and

(2) commissions or referral fees for recommending or referring to a client any product or service.

(o) Anything in this section to the contrary notwithstanding, it shall not be a violation of this section for a firm not holding a valid permit under section 326A.05 and not having an office in this state to provide its professional services in this state so long as it complies with the applicable requirements of section 326A.05, subdivision 1.

Sec. 41.

Minnesota Statutes 2012, section 462.358, subdivision 2b, is amended to read:

Subd. 2b.

Dedication.

(a) The regulations may require that a reasonable portion of the buildable land, as defined by municipal ordinance, of any proposed subdivision be dedicated to the public or preserved for public use as streets, roads, sewers, electric, gas, and water facilities, storm water drainage and holding areas or ponds and similar utilities and improvements, parks, recreational facilities as defined in section 471.191, playgrounds, trails, wetlands, or open space. The requirement must be imposed by ordinance or under the procedures established in section 462.353, subdivision 4a.

(b) If a municipality adopts the ordinance or proceeds under section 462.353, subdivision 4a, as required by paragraph (a), the municipality must adopt a capital improvement budget and have a parks and open space plan or have a parks, trails, and open space component in its comprehensive plan subject to the terms and conditions in this paragraph and paragraphs (c) to (i).

(c) The municipality may choose to accept a cash fee as set by ordinance from the applicant for some or all of the new lots created in the subdivision, based on the average fair market value of the unplatted land for which park fees have not already been paid that is, no later than at the time of final approval or under the city's adopted comprehensive plan, to be served by municipal sanitary sewer and water service or community septic and private well as authorized by state law. For purposes of redevelopment on developed land, the municipality may choose to accept a cash fee based on fair market value of the land no later than the time of final approval.new text begin "Fair market value" means the value of the land as determined by the municipality annually based on tax valuation or other relevant data. If the municipality's calculation of valuation is objected to by the applicant, then the value shall be as negotiated between the municipality and the applicant, or based on the market value as determined by the municipality based on an independent appraisal of land in a same or similar land use category.new text end

(d) In establishing the portion to be dedicated or preserved or the cash fee, the regulations shall give due consideration to the open space, recreational, or common areas and facilities open to the public that the applicant proposes to reserve for the subdivision.

(e) The municipality must reasonably determine that it will need to acquire that portion of land for the purposes stated in this subdivision as a result of approval of the subdivision.

(f) Cash payments received must be placed by the municipality in a special fund to be used only for the purposes for which the money was obtained.

(g) Cash payments received must be used only for the acquisition and development or improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open space based on the approved park systems plan. Cash payments must not be used for ongoing operation or maintenance of parks, recreational facilities, playgrounds, trails, wetlands, or open space.

(h) The municipality must not deny the approval of a subdivision based solely on an inadequate supply of parks, open spaces, trails, or recreational facilities within the municipality.

(i) Previously subdivided property from which a park dedication has been received, being resubdivided with the same number of lots, is exempt from park dedication requirements. If, as a result of resubdividing the property, the number of lots is increased, then the park dedication or per-lot cash fee must apply only to the net increase of lots.

Sec. 42.

Minnesota Statutes 2012, section 462A.37, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.

(c) "Community land trust" means an entity that meets the requirements of section 462A.31, subdivisions 1 and 2.

(d) "Debt service" means the amount payable in any fiscal year of principal, premium, if any, and interest on housing infrastructure bonds and the fees, charges, and expenses related to the bonds.

(e) "Foreclosed property" means residential property where foreclosure proceedings have been initiated or have been completed and title transferred or where title is transferred in lieu of foreclosure.

(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the Internal Revenue Code, new text begin finance qualified residential rental projects within the meaning of Section 142(d) of the Internal Revenue Code, new text end or are tax-exempt bonds that are not private activity bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the purpose of financing or refinancing affordable housing authorized under this chapter.

(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

(h) "Supportive housing" means housing that is not time-limited and provides or coordinates with linkages to services necessary for residents to maintain housing stability and maximize opportunities for education and employment.

new text begin EFFECTIVE DATE. new text end

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

Sec. 43.

Laws 2006, chapter 269, section 2, as amended by Laws 2008, chapter 331, section 11, and Laws 2008, chapter 366, article 17, section 5, is amended to read:

Sec. 2.

DEDICATION FEE.

The Minneapolis Park and Recreation Board and the Minneapolis City Council may jointly deleted text begin exercise the powers conferred under Minnesota Statutes, section 462.358, with respect to requiringdeleted text end new text begin requirenew text end that a reasonable portion of land be dedicated to the public or deleted text begin imposingdeleted text end new text begin imposenew text end a dedication fee deleted text begin ondeleted text end new text begin in conjunction with the construction permit required fornew text end new housing units and new commercial and industrial development in the city, wherever located, for public parks, playgrounds, recreational facilities, wetlands, trails, or open space. The dedication of land or dedication fee must be imposed by an ordinance jointly enacted by the park board and the city council.new text begin The cash fee may be set at a flat fee rate per net new residential unit.new text end The ordinance may exclude senior housing and affordable housing from paying the fee or the dedication of land. The provisions of Minnesota Statutes, section 462.358, subdivisions 2b, paragraph (b), and 2c, apply to the deleted text begin imposition,deleted text end applicationdeleted text begin ,deleted text end and use of the dedication of land or the dedication fee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the Minneapolis City Council and the Minneapolis Park and Recreation Board and their chief clerical officers timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3, and applies to joint dedication fee ordinances adopted or amended by the city of Minneapolis and the Minneapolis Park and Recreation Board before, on, or after that date, provided that no dedication of land or collection of park dedication fees can be effective until after December 31, 2013. new text end

Sec. 44.

new text begin CITY OF ST. PAUL DEDICATION FEE. new text end

new text begin The city of St. Paul may require that a reasonable portion of land be dedicated to the public or impose a dedication fee in conjunction with the construction permit required for new housing units and new commercial and industrial development in the city, wherever located, for public parks, playgrounds, recreational facilities, wetlands, trails, or open space. The dedication of land or dedication fee must be imposed by an ordinance enacted by the city council. The cash fee may be set at a flat fee rate per net new residential unit. The ordinance may exclude senior housing and affordable housing from paying the fee or the dedication of land. The provisions of Minnesota Statutes, section 462.358, subdivisions 2b, paragraph (b); and 2c, apply to the application and use of the dedication of land or the dedication fee. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2014, and applies to dedication fee ordinances adopted or amended by the city of St. Paul before, on, or after that date. new text end

Sec. 45.

new text begin GOOD CAUSE EXEMPTION. new text end

new text begin The Board of Cosmetology may amend Minnesota Rules so that they conform with this article. The Board of Cosmetology may use the good cause exemption under Minnesota Statutes, section 14.388, subdivision 1, clause (3), in adopting the amendment, and Minnesota Statutes, section 14.386, does not apply, except as it relates to Minnesota Statutes, section 14.388. new text end

Sec. 46.

new text begin 2013 DISTRIBUTION ONLY. new text end

new text begin For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of any excess of the balance remaining after distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis County acting as the fiscal agent for the recipients for the following specific purposes: new text end

new text begin (1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water supply system; new text end

new text begin (2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities required as a result of actions undertaken by United States Steel Corporation; new text end

new text begin (3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply system, payable upon agreement with ArcelorMittal to satisfy water permit conditions; new text end

new text begin (4) 2.5 cents per ton to the city of Tower for the Tower Marina; new text end

new text begin (5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer system to replace aging effluent lines and for parking lot repaving; new text end

new text begin (6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant improvements; new text end

new text begin (7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project; new text end

new text begin (8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson Intermodal Transportation Center; new text end

new text begin (9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine hockey arena renovations; new text end

new text begin (10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and Greenway Township; new text end

new text begin (11) 2.5 cents per ton to the city of Hibbing for the Memorial Building; new text end

new text begin (12) 0.7 cents per ton to the city of Chisholm for public works infrastructure; new text end

new text begin (13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary sewer extension; new text end

new text begin (14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy; new text end

new text begin (15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project; new text end

new text begin (16) 1.5 cents per ton to the city of Cook for street improvements, business park infrastructure, and a maintenance garage; new text end

new text begin (17) 0.5 cents per ton to the city of Cook for a water line project; new text end

new text begin (18) 1.8 cents per ton to the city of Eveleth to be used for Jones Street reconstruction and the city auditorium; new text end

new text begin (19) 0.5 cents for the city of Keewatin for an electrical substation and water line replacements; and new text end

new text begin (20) 3.3 cents for the city of Virginia for Fourth Street North infrastructure and Franklin Park improvement. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2013 distribution, and all payments must be made separately and within ten days of the date of the August 2013 payment. new text end

Sec. 47.

new text begin ST. PAUL RIVERCENTRE ARENA. new text end

new text begin Notwithstanding Laws 1998, chapter 404, section 23, subdivision 6, as amended by Laws 2002, chapter 220, Article 10, section 35, the repayment amounts due from the city of St. Paul in fiscal years 2014 and 2015 shall be reduced by $500,000 each year. No repayments are required from the city of St. Paul from fiscal years 2016 through 2021. Amounts scheduled to be repaid in fiscal years 2016 through 2021 must be used solely to pay for or finance design, construction, or equipment to make arena improvements according to a project list mutually agreed to between the lessee and the city of St. Paul's lease representative. new text end

Sec. 48.

new text begin WHISKEY ROAD IMPROVEMENTS. new text end

new text begin The money held by St. Louis County for the Whiskey Road improvement project shall accrue interest at the current market rate and must be used for improvements to the road near the city of Biwabik. new text end

Sec. 49.

new text begin REVISOR'S INSTRUCTION. new text end

new text begin (a) The revisor of statutes shall change the term "manicurist" to "nail technician" wherever it appears in Minnesota Rules and Statutes. new text end

new text begin (b) The revisor of statutes shall change the term "licensed" to "registered" and "license" to "registration" wherever it appears in Minnesota Statutes, chapter 154, or applicable Minnesota Rules. new text end

Sec. 50.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 116W.01; 116W.02; 116W.03; 116W.035; 116W.04; 116W.05; 116W.06; 116W.20; 116W.21; 116W.23; 116W.24; 116W.25; 116W.26; 116W.27; 116W.28; 116W.29; 116W.30; 116W.31; 116W.32; 116W.33; 116W.34; 155A.25, subdivision 1; and 326A.03, subdivisions 2, 5, and 8, new text end new text begin are repealed. new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 1105.0600; 1105.2550; and 1105.2700, new text end new text begin are repealed. new text end

ARTICLE 6

COMMERCE AND CONSUMER PROTECTION POLICY

Section 1.

Minnesota Statutes 2012, section 45.0135, subdivision 6, is amended to read:

Subd. 6.

Insurance fraud prevention account.

The insurance fraud prevention account is created in the state treasury. Money received from assessments under subdivision 7 new text begin and transferred from the automobile theft prevention account in section 65B.84, subdivision 1, new text end is deposited in the account. Money in this fund is appropriated to the commissioner of commerce for the purposes specified in this section and sections 60A.951 to 60A.956.

Sec. 2.

Minnesota Statutes 2012, section 60A.14, subdivision 1, is amended to read:

Subdivision 1.

Fees other than examination fees.

In addition to the fees and charges provided for examinations, the following fees must be paid to the commissioner for deposit in the general fund:

(a) by township mutual fire insurance companies;

(1) for filing certificate of incorporation $25 and amendments thereto, $10;

(2) for filing annual statements, $15;

(3) for each annual certificate of authority, $15;

(4) for filing bylaws $25 and amendments thereto, $10;

(b) by other domestic and foreign companies including fraternals and reciprocal exchanges;

(1) for filing an application for an initial certification of authority to be admitted to transact business in this state, $1,500;

(2) for filing certified copy of certificate of articles of incorporation, $100;

(3) for filing annual statement, $225;

(4) for filing certified copy of amendment to certificate or articles of incorporation, $100;

(5) for filing bylaws, $75 or amendments thereto, $75;

(6) for each company's certificate of authority, $575, annually;

(c) the following general fees apply:

(1) for each certificate, including certified copy of certificate of authority, renewal, valuation of life policies, corporate condition or qualification, $25;

(2) for each copy of paper on file in the commissioner's office 50 cents per page, and $2.50 for certifying the same;

(3) for license to procure insurance in unadmitted foreign companies, $575;

(4) for valuing the policies of life insurance companies, one cent per $1,000 of insurance so valued, provided that the fee shall not exceed $13,000 per year for any company. The commissioner may, in lieu of a valuation of the policies of any foreign life insurance company admitted, or applying for admission, to do business in this state, accept a certificate of valuation from the company's own actuary or from the commissioner of insurance of the state or territory in which the company is domiciled;

(5) for receiving and filing certificates of policies by the company's actuary, or by the commissioner of insurance of any other state or territory, $50;

(6) for each appointment of an agent filed with the commissioner, deleted text begin $10deleted text end new text begin $30new text end ;

(7) for filing forms, rates, and compliance certifications under section 60A.315, $140 per filing, or $125 per filing when submitted via electronic filing system. Filing fees may be paid on a quarterly basis in response to an invoice. Billing and payment may be made electronically;

(8) for annual renewal of surplus lines insurer license, $300.

The commissioner shall adopt rules to define filings that are subject to a fee.

Sec. 3.

Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:

Subdivision 1.

Program described; commissioner's duties; appropriation.

(a) The commissioner of commerce shall:

(1) develop and sponsor the implementation of statewide plans, programs, and strategies to combat automobile theft, improve the administration of the automobile theft laws, and provide a forum for identification of critical problems for those persons dealing with automobile theft;

(2) coordinate the development, adoption, and implementation of plans, programs, and strategies relating to interagency and intergovernmental cooperation with respect to automobile theft enforcement;

(3) annually audit the plans and programs that have been funded in whole or in part to evaluate the effectiveness of the plans and programs and withdraw funding should the commissioner determine that a plan or program is ineffective or is no longer in need of further financial support from the fund;

(4) develop a plan of operation including:

(i) an assessment of the scope of the problem of automobile theft, including areas of the state where the problem is greatest;

(ii) an analysis of various methods of combating the problem of automobile theft;

(iii) a plan for providing financial support to combat automobile theft;

(iv) a plan for eliminating car hijacking; and

(v) an estimate of the funds required to implement the plan; and

(5) distribute money, in consultation with the commissioner of public safety, pursuant to subdivision 3 from the automobile theft prevention special revenue account for automobile theft prevention activities, including:

(i) paying the administrative costs of the program;

(ii) providing financial support to the State Patrol and local law enforcement agencies for automobile theft enforcement teams;

(iii) providing financial support to state or local law enforcement agencies for programs designed to reduce the incidence of automobile theft and for improved equipment and techniques for responding to automobile thefts;

(iv) providing financial support to local prosecutors for programs designed to reduce the incidence of automobile theft;

(v) providing financial support to judicial agencies for programs designed to reduce the incidence of automobile theft;

(vi) providing financial support for neighborhood or community organizations or business organizations for programs designed to reduce the incidence of automobile theft and to educate people about the common methods of automobile theft, the models of automobiles most likely to be stolen, and the times and places automobile theft is most likely to occur; and

(vii) providing financial support for automobile theft educational and training programs for state and local law enforcement officials, driver and vehicle services exam and inspections staff, and members of the judiciary.

(b) The commissioner may not spend in any fiscal year more than ten percent of the money in the fund for the program's administrative and operating costs. The commissioner is annually appropriated and must distribute the amount of the proceeds credited to the automobile theft prevention special revenue account each year, less the transfer of $1,300,000 each year to the general fund described in section 168A.40, subdivision 4.

new text begin (c) At the end of each fiscal year, the commissioner may transfer any unobligated balances in the auto theft prevention account to the insurance fraud prevention account under section 45.0135, subdivision 6. new text end

Sec. 4.

new text begin [80G.01] REGISTRATION. new text end

new text begin (a) The fee for each registration under this chapter shall be as follows: new text end

new text begin (1) bullion coin dealers, $25; and new text end

new text begin (2) coin dealer representatives, $10. new text end

new text begin (b) The commissioner, based on the cost of processing registrations, may adjust the registration fee on an annual basis as needed. new text end

Sec. 5.

Minnesota Statutes 2012, section 239.101, subdivision 3, is amended to read:

Subd. 3.

Petroleum inspection fee; appropriation, uses.

(a) An inspection fee is imposed (1) on petroleum products when received by the first licensed distributor, and (2) on petroleum products received and held for sale or use by any person when the petroleum products have not previously been received by a licensed distributor. The petroleum inspection fee is $1 for every 1,000 gallons received. The commissioner of revenue shall collect the fee. The revenue from deleted text begin 81deleted text end new text begin 89new text end cents of the fee is appropriated to the commissioner of commerce for the cost of operations of the Division of Weights and Measures, petroleum supply monitoring, and to make 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. The remainder of the fee must be deposited in the general fund.

(b) The commissioner of revenue shall credit a person for inspection fees previously paid in error or for any material exported or sold for export from the state upon filing of a report as prescribed by the commissioner of revenue.

(c) The commissioner of revenue may collect the inspection fee along with any taxes due under chapter 296A.

Sec. 6.

Minnesota Statutes 2012, section 507.235, subdivision 2, is amended to read:

Subd. 2.

Penalty for failure to file.

(a) A vendee who fails to record a contract for deed, as required by subdivision 1, is subject to a civil penalty, payable under subdivision 5, equal to two percent of the principal amount of the contract debtnew text begin , unless the vendee has not received a copy of the contract for deed in recordable form, as required under subdivision 1anew text end . Payments of the penalty shall be deposited in the general fund of the county. The penalty may be enforced as a lien against the vendee's interest in the property.

(b) A person receiving an assignment of a vendee's interest in a contract for deed who fails to record the assignment as required by subdivision 1 is subject to a civil penalty, payable under subdivision 5, equal to two percent of the original principal amount of the contract debt. Payments of the penalty must be deposited in the general fund of the county. The penalty may be enforced as a lien against the vendee's interest in the property.

Sec. 7.

new text begin [559.201] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this section apply to section 559.202. new text end

new text begin Subd. 2. new text end

new text begin Business day. new text end

new text begin "Business day" means any day other than a Saturday, Sunday, or holiday as defined in section 645.44, subdivision 5. new text end

new text begin Subd. 3. new text end

new text begin Family farm security loan. new text end

new text begin "Family farm security loan" has the meaning given in Minnesota Statutes 2008, section 41.52, subdivision 5. new text end

new text begin Subd. 4. new text end

new text begin Multiple seller. new text end

new text begin "Multiple seller" means a person that has acted as a seller in four or more contracts for deed involving residential real property during the 12-month period that precedes either: (1) the date on which the purchaser executes a purchase agreement under section 559.202; or (2) if there is no purchase agreement, the date on which the purchaser executes a contract for deed under section 559.202. A contract for deed transaction that is exempt under section 559.202, subdivision 2, is a contract for deed for the purposes of determining whether a seller is a multiple seller. new text end

new text begin Subd. 5. new text end

new text begin Person. new text end

new text begin "Person" means a natural person, partnership, corporation, limited liability company, association, trust, or other legal entity, however organized. new text end

new text begin Subd. 6. new text end

new text begin Purchase agreement. new text end

new text begin "Purchase agreement" means a purchase agreement for a contract for deed, an earnest money contract, or an executed option contemplating that, at closing, the seller and the purchaser will enter into a contract for deed. new text end

new text begin Subd. 7. new text end

new text begin Purchaser. new text end

new text begin "Purchaser" means a natural person who enters into a contract for deed to purchase residential real property. Purchaser includes all purchasers who enter into the same contract for deed to purchase residential real property. new text end

new text begin Subd. 8. new text end

new text begin Residential real property. new text end

new text begin "Residential real property" means real property consisting of one to four family dwelling units, one of which the purchaser intends to occupy as the purchaser's principal place of residence. Residential real property does not include property subject to a family farm security loan or a transaction subject to sections 583.20 to 583.32. new text end

Sec. 8.

new text begin [559.202] CONTRACTS FOR DEED INVOLVING RESIDENTIAL PROPERTY. new text end

new text begin Subdivision 1. new text end

new text begin Notice required. new text end

new text begin (a) In addition to the disclosures required under sections 513.52 to 513.60, a multiple seller must deliver the notice specified under subdivision 3 to a prospective purchaser as provided under this subdivision. new text end

new text begin (b) If there is a purchase agreement, the notice must be affixed to the front of the purchase agreement. A contract for deed for which notice is required under this subdivision may not be executed for five business days following the execution of the purchase agreement and delivery of the notice and instructions for cancellation. new text end

new text begin (c) If there is no purchase agreement, a multiple seller must deliver the notice in a document separate from any other document or writing to a prospective purchaser no less than five business days before the prospective purchaser executes the contract for deed. new text end

new text begin (d) The notice must be: new text end

new text begin (1) written in at least 12-point type; and new text end

new text begin (2) signed and dated by the purchaser. new text end

new text begin (e) If a dispute arises concerning whether or when the notice required by this subdivision was provided to the purchaser, there is a rebuttable presumption that the notice was not provided unless the original executed contract for deed contains the following statement, initialed by the purchaser: "By initialing here ....... purchaser acknowledges receipt at least five business days before signing this contract for deed of the disclosure statement entitled "Important Information About Contracts for Deed" required by Minnesota Statutes, section 559.202, subdivision 3." new text end

new text begin Subd. 2. new text end

new text begin Exception. new text end

new text begin This section does not apply if the purchaser is represented throughout the transaction by either: new text end

new text begin (1) a person licensed to practice law in this state; or new text end

new text begin (2) a person licensed as a real estate broker or salesperson under chapter 82, provided that the representation does not create a dual agency, as that term is defined in section 82.55, subdivision 6. new text end

new text begin Subd. 3. new text end

new text begin Content of the notice. new text end

new text begin The notice must contain the following verbatim language: new text end

new text begin "IMPORTANT INFORMATION ABOUT CONTRACTS FOR DEED new text end

new text begin Know What You Are Getting Into new text end

new text begin (1) A contract for deed is a complex legal agreement. You are NOT a tenant. Mortgage foreclosure laws don't apply. new text end

new text begin (2) You should know ALL of your obligations and rights before you sign a purchase agreement or contract for deed. new text end

new text begin (3) You (seller must circle one): new text end

new text begin (a) new text end new text begin DO new text end new text begin DO NOT new text end new text begin have to pay homeowner's insurance. new text end
new text begin (b) new text end new text begin DO new text end new text begin DO NOT new text end new text begin have to pay property taxes. new text end
new text begin (c) new text end new text begin DO new text end new text begin DO NOT new text end new text begin have to make and pay for some or all of the repairs or maintenance, as described in the contract for deed. new text end

new text begin (4) After some time, you may need to make a large lump sum payment (called a "balloon payment"). Know when it is due and how much it will be. You'll probably need to get a new mortgage, another financial arrangement, or pay for the balance in cash at that time. new text end

new text begin (5) If you miss just a single payment or can't make the balloon payment, the seller can cancel your contract. You will likely lose all the money you have already paid. You will likely lose your ability to purchase the home. The seller can begin an eviction action against you in just a few months. new text end

new text begin (6) Within four months of signing the contract for deed, you must "record" it in the office of the county recorder or registrar of titles in the county in which the property is located. If you do not do so, you could face a fine. new text end

new text begin Key Things Highly Recommended Before You Sign new text end

new text begin (1) Get advice from a lawyer or the Minnesota Home Ownership Center at 1-866-462-6466 or go to www.hocmn.org. To find a lawyer through the Minnesota State Bar Association, go to www.mnfindalawyer.com. new text end

new text begin (2) Get an independent, professional appraisal of the property to learn what it is worth. new text end

new text begin (3) Get an independent, professional inspection of the property. new text end

new text begin (4) Buy title insurance or ask a real estate lawyer for a "title opinion." new text end

new text begin (5) Check with the city or county to find out if there are inspection reports or unpaid utility bills. new text end

new text begin (6) Check with a title company or the county where the property is located to find out if there is a mortgage or other lien on the property and if the property taxes have been paid. new text end

new text begin (7) Ensure that your interest rate does not exceed the maximum allowed by law by calling the Department of Commerce at 651-297-7053 to get a recorded message for the current month's maximum rate. new text end

new text begin If You Are Entering into a Purchase Agreement new text end

new text begin (1) If you haven't already signed the contract for deed, you can cancel the purchase agreement (and get all your money back) if you do so within five business days after getting this notice. new text end

new text begin (2) To cancel the purchase agreement, you must follow the provisions of Minnesota Statutes, section 559.217, subdivision 4. Ask a lawyer for help." new text end

new text begin Subd. 4. new text end

new text begin Right to cancel purchase agreement. new text end

new text begin (a) A prospective purchaser may cancel a purchase agreement within five business days after actually receiving the notice required under subdivision 1 if a multiple seller fails to timely deliver the notice, provided that the contract for deed has not been executed by all parties. new text end

new text begin (b) A prospective purchaser may cancel the purchase agreement in accordance with the provisions of section 559.217, subdivision 4. new text end

new text begin (c) In the event of cancellation, the multiple seller may not impose a penalty and must promptly refund all payments made by the prospective purchaser prior to cancellation. new text end

new text begin Subd. 5. new text end

new text begin Remedies for failure to timely deliver notices. new text end

new text begin (a) Notwithstanding any contrary provision in the purchase agreement or contract for deed, a purchaser has a private right of action against a multiple seller who fails to timely deliver the notice required under subdivision 1. The multiple seller is liable to the purchaser for: new text end

new text begin (1) the greater of actual damages or statutory damages of $2,500; and new text end

new text begin (2) reasonable attorney fees and court costs. new text end

new text begin (b) A multiple seller who knowingly fails to timely deliver the notice required under subdivision 1 is liable to the purchaser for triple the actual or statutory damages available under paragraph (a), whichever is greater, provided that the purchaser must elect the remedy provided under either paragraph (a) or this paragraph and may not recover damages under both paragraphs. new text end

new text begin (c) The rights and remedies provided in this subdivision are cumulative to, and not a limitation of, any other rights and remedies provided under law. An action brought pursuant to this subdivision must be commenced within four years from the date of the alleged violation. new text end

new text begin Subd. 6. new text end

new text begin Effects of violation. new text end

new text begin A violation of this section has no effect on the validity of the contract. new text end

new text begin Subd. 7. new text end

new text begin Duty of multiple seller to account. new text end

new text begin Upon reasonable request by the purchaser and no more than once every 12-month period, a multiple seller must provide an accounting of all payments made pursuant to the contract for deed, the amount of interest paid, and the amount remaining to satisfy the principal balance under the contract. new text end

new text begin Subd. 8. new text end

new text begin No waiver. new text end

new text begin The provisions of this section may not be waived. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to transactions in which the contract for deed and the purchase agreement for the contract for deed, if any, were both executed on or after that date. new text end

Sec. 9.

Minnesota Statutes 2012, section 559.211, subdivision 2, is amended to read:

Subd. 2.

Remedies additional.

The remedies provided in this section are in addition to and do not limit other rights or remedies available to purchasers or vendors of real estate.new text begin Subject to the provisions of sections 559.213 and 559.217, subdivision 7, this section shall not be construed to bar a court from determining the validity, effectiveness, or consequences of proceeding under section 559.21 or 559.217, or granting other relief in connection therewith, by reason of the failure of a purchaser to seek or obtain relief under this section prior to the purported effective date of the termination of the contract.new text end

Sec. 10.

Laws 2011, First Special Session chapter 2, article 2, section 3, subdivision 4, is amended to read:

Subd. 4.

Administrative Services

4,247,000 4,247,000

$375,000 each year is for additional compliance efforts with unclaimed property. The commissioner may issue contracts for these services. deleted text begin This additional amount shall be added to the base budget for fiscal years 2014 and 2015 only. The enhanced unclaimed property compliance program shall sunset June 30, 2015.deleted text end

Sec. 11.

new text begin SOLAR PHOTOVOLTAIC MODULES. new text end

new text begin No solar photovoltaic module may be installed that is financed directly or indirectly, wholly or in part, with money appropriated in this act, unless the solar photovoltaic module is made in Minnesota as defined in Minnesota Statutes, section 16B.323, subdivision 1, paragraph (b). new text end

Sec. 12.

new text begin INFORMATION ON COUNSELING AGENCIES. new text end

new text begin The commissioner of commerce shall consult with interested stakeholders in studying the possibility of providing on its Internet Web site a link, including contact information, for each of the counseling certification entities identified in Minnesota Statutes, section 58.13, subdivision 1, where a list of certified counselors and counseling agencies, including designations for nonprofit organizations, is available. new text end

Sec. 13.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2012, section 507.235, subdivision 4, new text end new text begin is repealed effective the day following final enactment. new text end

ARTICLE 7

UTILITY REGULATION

Section 1.

Minnesota Statutes 2012, section 216B.16, subdivision 7b, is amended to read:

Subd. 7b.

Transmission cost adjustment.

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

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

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

new text begin (iii) new text end charges incurred by a utility new text begin under a federally approved tariff new text end that accrue from other transmission owners' regionally planned transmission projects that have been determined by the deleted text begin Midwestdeleted text end new text begin Midcontinentnew text end Independent System Operator to benefit the utilitydeleted text begin , as provided for under a federally approved tariffdeleted text end new text begin or integrated transmission systemnew text end .

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

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

(2) allows the new text begin utility to recover new text end charges incurred deleted text begin by a utilitydeleted text end new text begin under a federally approved tariffnew text end that accrue from other transmission owners' regionally planned transmission projects that have been determined by the deleted text begin Midwestdeleted text end new text begin Midcontinentnew text end Independent System Operator to benefit the utilitydeleted text begin , as provided for under a federally approved tariffdeleted text end new text begin or integrated transmission systemnew text end . These charges must be reduced or offset by revenues received by the utility and by amounts the utility charges to other regional transmission owners, to the extent those revenues and charges have not been otherwise offset;

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

new text begin (4) new text end allows a return on investment at the level approved in the utility's last general rate case, unless a different return is found to be consistent with the public interest;

deleted text begin (4)deleted text end new text begin (5) new text end provides a current return on construction work in progress, provided that recovery from Minnesota retail customers for the allowance for funds used during construction is not sought through any other mechanism;

deleted text begin (5)deleted text end new text begin (6) new text end allows for recovery of other expenses if shown to promote a least-cost project option or is otherwise in the public interest;

deleted text begin (6)deleted text end new text begin (7) new text end allocates project costs appropriately between wholesale and retail customers;

deleted text begin (7)deleted text end new text begin (8) new text end provides a mechanism for recovery above cost, if necessary to improve the overall economics of the project or projects or is otherwise in the public interest; and

deleted text begin (8)deleted text end new text begin (9) new text end terminates recovery once costs have been fully recovered or have otherwise been reflected in the utility's general rates.

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

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

(2) a schedule for implementation of applicable projects;

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

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

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

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

Sec. 2.

Minnesota Statutes 2012, section 216B.1635, is amended to read:

216B.1635 RECOVERY OF GAS UTILITY INFRASTRUCTURE COSTS.

Subdivision 1.

Definitions.

(a) "Gas utility" means a public utility as defined in section 216B.02, subdivision 4, that furnishes natural gas service to retail customers.

(b) "Gas utility infrastructure costs" or "GUIC" means new text begin costs incurred in new text end gas utility projects that:

(1) do not serve to increase revenues by directly connecting the infrastructure replacement to new customers;

(2) are in service but were not included in the gas utility's rate base in its most recent general rate casedeleted text begin ; anddeleted text end new text begin , or are planned to be in service during the period covered by the report submitted under subdivision 2, but in no case longer than the one year forecast period in the report; andnew text end

(3) deleted text begin replace or modify existing infrastructure if the replacement or modification does not constitute a betterment, unless the betterment is required by a political subdivision, as evidenced by specific documentation from the government entity requiring the replacement or modification of infrastructuredeleted text end new text begin do not constitute a betterment, unless the betterment is based on requirements by a political subdivision or a federal or state agency, as evidenced by specific documentation, an order, or other similar requirement from the government entity requiring the replacement or modification of infrastructurenew text end .

(c) "Gas utility projects" means deleted text begin relocation anddeleted text end new text begin :new text end

new text begin (1)new text end replacement of natural gas facilities located in the public right-of-way required by the construction or improvement of a highway, road, street, public building, or other public work by or on behalf of the United States, the state of Minnesota, or a political subdivisiondeleted text begin .deleted text end new text begin ; andnew text end

new text begin (2) replacement or modification of existing natural gas facilities, including surveys, assessments, reassessment, and other work necessary to determine the need for replacement or modification of existing infrastructure that is required by a federal or state agency. new text end

Subd. 2.

new text begin Gas infrastructure new text end filing.

deleted text begin (a) The commission may approve a gas utility's petition for a rate scheduledeleted text end new text begin A public utility submitting a petition new text end to recover deleted text begin GUICdeleted text end new text begin gas infrastructure costs new text end under this sectiondeleted text begin . A gas utility maydeleted text end new text begin must submit to the commission, the department, and interested parties a gas infrastructure project plan report and a new text end petition deleted text begin the commission to recover a rate of return, income taxes on the rate of return, incremental property taxes, plus incremental depreciation expense associated with GUICdeleted text end new text begin for rate recovery of only incremental costs associated with projects under subdivision 1, paragraph (c). The report and petition must be made at least 150 days in advance of implementation of the rate schedule, provided that the rate schedule will not be implemented until the petition is approved by the commission pursuant to subdivision 5. The report must be for a forecast period of one yearnew text end .

deleted text begin (b) The filing is subject to the following: deleted text end

deleted text begin (1) A gas utility may submit a filing under this section no more than once per year. deleted text end

deleted text begin (2) A gas utility must file sufficient information to satisfy the commission regarding the proposed GUIC or be subject to denial by the commission. The information includes, but is not limited to: deleted text end

deleted text begin (i) the government entity ordering the gas utility project and the purpose for which the project is undertaken; deleted text end

deleted text begin (ii) the location, description, and costs associated with the project; deleted text end

deleted text begin (iii) a description of the costs, and salvage value, if any, associated with the existing infrastructure replaced or modified as a result of the project; deleted text end

deleted text begin (iv) the proposed rate design and an explanation of why the proposed rate design is in the public interest; deleted text end

deleted text begin (v) the magnitude and timing of any known future gas utility projects that the utility may seek to recover under this section; deleted text end

deleted text begin (vi) the magnitude of GUIC in relation to the gas utility's base revenue as approved by the commission in the gas utility's most recent general rate case, exclusive of gas purchase costs and transportation charges; deleted text end

deleted text begin (vii) the magnitude of GUIC in relation to the gas utility's capital expenditures since its most recent general rate case; deleted text end

deleted text begin (viii) the amount of time since the utility last filed a general rate case and the utility's reasons for seeking recovery outside of a general rate case; and deleted text end

deleted text begin (ix) documentation supporting the calculation of the GUIC. deleted text end

new text begin Subd. 3. new text end

new text begin Gas infrastructure project plan report. new text end

new text begin The gas infrastructure project plan report required to be filed under subdivision 2 shall include all pertinent information and supporting data on each proposed project including, but not limited to, project description and scope, estimated project costs, and project in-service date. new text end

new text begin Subd. 4. new text end

new text begin Cost recovery petition for utility's facilities. new text end

new text begin Notwithstanding any other provision of this chapter, the commission may approve a rate schedule for the automatic annual adjustment of charges for gas utility infrastructure costs net of revenues under this section, including a rate of return, income taxes on the rate of return, incremental property taxes, incremental depreciation expense, and any incremental operation and maintenance costs. A gas utility's petition for approval of a rate schedule to recover gas utility infrastructure costs outside of a general rate case under section 216B.16, is subject to the following: new text end

new text begin (1) a gas utility may submit a filing under this section no more than once per year; and new text end

new text begin (2) a gas utility must file sufficient information to satisfy the commission regarding the proposed GUIC. The information includes, but is not limited to: new text end

new text begin (i) the information required to be included in the gas infrastructure project plan report under subdivision 3; new text end

new text begin (ii) the government entity ordering or requiring the gas utility project and the purpose for which the project is undertaken; new text end

new text begin (iii) a description of the estimated costs and salvage value, if any, associated with the existing infrastructure replaced or modified as a result of the project; new text end

new text begin (iv) a comparison of the utility's estimated costs included in the gas infrastructure project plan and the actual costs incurred, including a description of the utility's efforts to ensure the costs of the facilities are reasonable and prudently incurred; new text end

new text begin (v) calculations to establish that the rate adjustment is consistent with the terms of the rate schedule, including the proposed rate design and an explanation of why the proposed rate design is in the public interest; new text end

new text begin (vi) the magnitude and timing of any known future gas utility projects that the utility may seek to recover under this section; new text end

new text begin (vii) the magnitude of GUIC in relation to the gas utility's base revenue as approved by the commission in the gas utility's most recent general rate case, exclusive of gas purchase costs and transportation charges; new text end

new text begin (viii) the magnitude of GUIC in relation to the gas utility's capital expenditures since its most recent general rate case; and new text end

new text begin (ix) the amount of time since the utility last filed a general rate case and the utility's reasons for seeking recovery outside of a general rate case. new text end

new text begin Subd. 5. new text end

new text begin Commission action. new text end

new text begin Upon receiving a gas utility report and petition for cost recovery under subdivision 2 and assessment and verification under subdivision 4, the commission may approve the annual GUIC rate adjustments provided that, after notice and comment, the costs included for recovery through the rate schedule are prudently incurred and achieve gas facility improvements at the lowest reasonable and prudent cost to ratepayers. new text end

new text begin Subd. 6. new text end

new text begin Rate of return. new text end

new text begin The return on investment for the rate adjustment shall be at the level approved by the commission in the public utility's last general rate case, unless the commission determines that a different rate of return is in the public interest. new text end

Subd. deleted text begin 3deleted text end new text begin 7new text end .

Commission authority; rules.

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

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 2012, section 216B.1691, subdivision 2e, is amended to read:

Subd. 2e.

Rate impact of standard compliance; report.

Each electric utility must submit to the commission and the legislative committees with primary jurisdiction over energy policy a report containing an estimation of the rate impact of activities of the electric utility necessary to comply with this section. new text begin In consultation with the Department of Commerce, the commission shall determine a uniform reporting system to ensure that individual utility reports are consistent and comparable, and shall, by order, require each electric utility subject to this section to use that reporting system. new text end The rate impact estimate must be for wholesale rates and, if the electric utility makes retail sales, the estimate shall also be for the impact on the electric utility's retail rates. Those activities include, without limitation, energy purchases, generation facility acquisition and construction, and transmission improvements. An initial report must be submitted within 150 days of May 28, 2011. After the initial report, a report must be updated and submitted as part of each integrated resource plan or plan modification filed by the electric utility under section 216B.2422. The reporting obligation of an electric utility under this subdivision expires December 31, 2025, for an electric utility subject to subdivision 2a, paragraph (a), and December 31, 2020, for an electric utility subject to subdivision 2a, paragraph (b).

Sec. 4.

Minnesota Statutes 2012, section 216B.1692, subdivision 1, is amended to read:

Subdivision 1.

Qualifying projects.

new text begin (a) new text end Projects that may be approved for the emissions reduction-rate rider allowed in this section must:

(1) be installed on existing large electric generating power plants, as defined in section 216B.2421, subdivision 2, clause (1), that are located in the state and that are currently not subject to emissions limitations for new power plants under the federal Clean Air Act, United States Code, title 42, section 7401 et seq.;

(2) not increase the capacity of the existing electric generating power plant more than ten percent or more than 100 megawatts, whichever is greater; and

(3) result in the existing plant either:

(i) complying with applicable new source review standards under the federal Clean Air Act; or

(ii) emitting air contaminants at levels substantially lower than allowed for new facilities by the applicable new source performance standards under the federal Clean Air Act; or

(iii) reducing emissions from current levels at a unit to the lowest cost-effective level when, due to the age or condition of the generating unit, the public utility demonstrates that it would not be cost-effective to reduce emissions to the levels in item (i) or (ii).

new text begin (b) Notwithstanding paragraph (a), a project may be approved for the emission reduction rate rider allowed in this section if the project is to be installed on existing large electric generating power plants, as defined in section 216B.2421, subdivision 2, clause (1), that are located outside the state and are needed to comply with state or federal air quality standards, but only if the project has received an advance determination of prudence from the commission under section 216B.1695. new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2012, section 216B.1692, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Exemption. new text end

new text begin Subdivisions 2, 4, and 5, paragraph (c), clause (1), do not apply to projects qualifying under subdivision 1, paragraph (b). 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. 6.

Minnesota Statutes 2012, section 216B.1692, subdivision 8, is amended to read:

Subd. 8.

Sunset.

This section is effective until December 31, deleted text begin 2015deleted text end new text begin 2020new text end , and applies to plans, projects, and riders approved before that date and modifications made to them after that date.

Sec. 7.

Minnesota Statutes 2012, section 216B.1695, subdivision 5, is amended to read:

Subd. 5.

Cost recovery.

The utility may begin recovery of costs that have been incurred by the utility in connection with implementation of the project in the next rate case following an advance determination of prudencenew text begin or in a rider approved under section 216B.1692new text end . The commission shall review the costs incurred by the utility for the project. The utility must show that the project costs are reasonable and necessary, and demonstrate its efforts to ensure the lowest reasonable project costs. Notwithstanding the commission's prior determination of prudence, it may accept, modify, or reject any of the project costs. The commission may determine whether to require an allowance for funds used during construction offset.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2012, section 216B.1695, is amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Rate of return. new text end

new text begin The return on investment in the rider shall be at the level approved by the commission in the public utility's last general rate case, unless the commission determines that a different rate of return is in the public interest. 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. 9.

Laws 2005, chapter 97, article 10, section 3, is amended to read:

Sec. 3.

SUNSET.

Sections 1 and 2 shall expire on June 30, deleted text begin 2015deleted text end new text begin 2023new text end .

ARTICLE 8

PACE

Section 1.

Minnesota Statutes 2012, section 216C.435, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Cost-effective energy improvements. new text end

new text begin "Cost-effective energy improvements" mean energy improvements that have been identified in an energy audit or renewable energy system feasibility study as repaying their purchase and installation costs in 20 years or less, based on the amount of future energy saved and estimated future energy prices. 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 2012, section 216C.435, subdivision 8, is amended to read:

Subd. 8.

Qualifying real property.

"Qualifying real property" means a single-family or multifamily residential dwelling, or a commercial or industrial building, that the implementing entity has determined, after review of an energy audit or renewable energy system feasibility study, can be benefited by installation of new text begin cost-effective new text end energy improvements.

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 2012, section 216C.436, subdivision 2, is amended to read:

Subd. 2.

Program requirements.

A financing program must:

(1) impose requirements and conditions on financing arrangements to ensure timely repayment;

(2) require an energy audit or renewable energy system feasibility study to be conducted on the qualifying real property and reviewed by the implementing entity prior to approval of the financing;

(3) require the inspection of all installations and a performance verification of at least ten percent of the energy improvements financed by the program;

(4) new text begin not prohibit the financing of all cost-effective energy improvements not otherwise prohibited by this section;new text end

new text begin (5) new text end require that all cost-effective energy improvements be made to a qualifying real property prior to, or in conjunction with, an applicant's repayment of financing for energy improvements for that property;

deleted text begin (5)deleted text end new text begin (6)new text end have energy improvements financed by the program performed by licensed contractors as required by chapter 326B or other law or ordinance;

deleted text begin (6)deleted text end new text begin (7)new text end require disclosures to borrowers by the implementing entity of the risks involved in borrowing, including the risk of foreclosure if a tax delinquency results from a default;

deleted text begin (7)deleted text end new text begin (8)new text end provide financing only to those who demonstrate an ability to repay;

deleted text begin (8)deleted text end new text begin (9)new text end not provide financing for a qualifying real property in which the owner is not current on mortgage or real property tax payments;

deleted text begin (9)deleted text end new text begin (10)new text end require a petition to the implementing entity by all owners of the qualifying real property requesting collections of repayments as a special assessment under section 429.101;

deleted text begin (10)deleted text end new text begin (11)new text end provide that payments and assessments are not accelerated due to a default and that a tax delinquency exists only for assessments not paid when due; and

deleted text begin (11)deleted text end new text begin (12)new text end require that liability for special assessments related to the financing runs with the qualifying real property.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2012, section 216C.436, subdivision 7, is amended to read:

Subd. 7.

Repayment.

An implementing entity that finances an energy improvement under this section must:

(1) secure payment with a lien against the deleted text begin benefiteddeleted text end qualifying real property; and

(2) collect repayments as a special assessment as provided for in section 429.101 or by charternew text begin , provided that special assessments may be made payable in up to 20 equal annual installmentsnew text end .

If the implementing entity is an authority, the local government that authorized the authority to act as implementing entity shall impose and collect special assessments necessary to pay debt service on bonds issued by the implementing entity under subdivision 8, and shall transfer all collections of the assessments upon receipt to the authority.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2012, section 216C.436, subdivision 8, is amended to read:

Subd. 8.

Bond issuance; repayment.

(a) An implementing entity may issue revenue bonds as provided in chapter 475 for the purposes of this sectionnew text begin , provided the revenue bond must not be payable more than 20 years from the date of issuancenew text end .

(b) The bonds must be payable as to both principal and interest solely from the revenues from the assessments established in subdivision 7.

(c) No holder of bonds issued under this subdivision may compel any exercise of the taxing power of the implementing entity that issued the bonds to pay principal or interest on the bonds, and if the implementing entity is an authority, no holder of the bonds may compel any exercise of the taxing power of the local government. Bonds issued under this subdivision are not a debt or obligation of the issuer or any local government that issued them, nor is the payment of the bonds enforceable out of any money other than the revenue pledged to the payment of the bonds.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2012, section 429.101, subdivision 2, is amended to read:

Subd. 2.

Procedure for assessment.

Any special assessment levied under subdivision 1 shall be payable in a single installment, or by up to ten equal annual installments as the council may providenew text begin , except that a special assessment made under an energy improvements financing program under subdivision 1, paragraph (c), may be repayable in up to 20 equal installmentsnew text end . With deleted text begin this exceptiondeleted text end new text begin these exceptionsnew text end , sections 429.061, 429.071, and 429.081 shall apply to assessments made under this section.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 9

DISTRIBUTED GENERATION

Section 1.

Minnesota Statutes 2012, section 216B.164, subdivision 2, is amended to read:

Subd. 2.

Applicability.

This section as well as any rules promulgated by the commission to implement this section or the Public Utility Regulatory Policies Act of 1978, Public Law 95-617, Statutes at Large, volume 92, page 3117, and the Federal Energy Regulatory Commission regulations thereunder, Code of Federal Regulations, title 18, part 292, shallnew text begin , unless otherwise provided in this section, new text end apply to all Minnesota electric utilities, including cooperative electric associations and municipal electric utilities.

Sec. 2.

Minnesota Statutes 2012, section 216B.164, is amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Definitions. new text end

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

new text begin (b) "Aggregated meter" means a meter located on the premises of a customer's owned or leased property that is contiguous with property containing the customer's designated meter. new text end

new text begin (c) "Capacity" means the number of megawatts alternating current (AC) at the point of interconnection between a distributed generation facility and a utility's electric system. new text end

new text begin (d) "Cogeneration" means a combined process whereby electrical and useful thermal energy are produced simultaneously. new text end

new text begin (e) "Contiguous property" means property owned or leased by the customer sharing a common border, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way, or utility rights-of-way. new text end

new text begin (f) "Customer" means the person who is named on the utility electric bill for the premises. new text end

new text begin (g) "Designated meter" means a meter that is physically attached to the customer's facility that the customer-generator designates as the first meter to which net metered credits are to be applied as the primary meter for billing purposes when the customer is serviced by more than one meter. new text end

new text begin (h) "Distributed generation" means a facility that: new text end

new text begin (1) has a capacity of ten megawatts or less; new text end

new text begin (2) is interconnected with a utility's distribution system, over which the commission has jurisdiction; and new text end

new text begin (3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel, and may include waste heat, cogeneration, or fuel cell technology. new text end

new text begin (i) "High-efficiency distributed generation" means a distributed energy facility that has a minimum efficiency of 40 percent, as calculated under section 272.0211, subdivision 1. new text end

new text begin (j) "Net metered facility" means an electric generation facility constructed for the purpose of offsetting energy use through the use of renewable energy or high-efficiency distributed generation sources. new text end

new text begin (k) "Renewable energy" has the meaning given in section 216B.2411, subdivision 2. new text end

new text begin (l) "Standby charge" means a charge imposed by an electric utility upon a distributed generation facility for the recovery of costs for the provision of standby services, as provided for in a utility's tariffs approved by the commission, necessary to make electricity service available to the distributed generation facility. new text end

Sec. 3.

Minnesota Statutes 2012, section 216B.164, subdivision 3, is amended to read:

Subd. 3.

Purchases; small facilities.

(a) new text begin This paragraph applies to cooperative electric associations and municipal utilities. new text end For a qualifying facility having less than 40-kilowatt capacity, the customer shall be billed for the net energy supplied by the utility according to the applicable rate schedule for sales to that class of customer. In the case of net input into the utility system by a qualifying facility having less than 40-kilowatt capacity, compensation to the customer shall be at a per kilowatt-hour rate determined under paragraph deleted text begin (b) ordeleted text end (c)new text begin or (d)new text end .

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

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

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

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

Sec. 4.

Minnesota Statutes 2012, section 216B.164, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Net metered facility. new text end

new text begin (a) Except for customers receiving a value of solar rate under subdivision 10, a customer with a net metered facility having more than 40-kilowatt and less than 1,000-kilowatt capacity that is interconnected to a public utility may elect to be compensated for the customer's net input into the utility system in the form of a kilowatt-hour credit on the customer's energy bill carried forward and applied to subsequent energy bills. Any net input supplied by the customer into the utility system that exceeds energy supplied to the customer by the utility during a calendar year must be compensated at the applicable rate. new text end

new text begin (b) A public utility may not impose a standby charge on a net metered or qualifying facility: new text end

new text begin (1) of 100 kilowatts or less capacity; or new text end

new text begin (2) of more than 100 kilowatts capacity, except in accordance with an order of the commission establishing the allowable costs to be recovered through standby charges. new text end

Sec. 5.

Minnesota Statutes 2012, section 216B.164, subdivision 4, is amended to read:

Subd. 4.

Purchases; wheeling; costs.

(a) Except as otherwise provided in paragraph (c), this subdivision shall apply to all qualifying facilities having 40-kilowatt capacity or more as well as qualifying facilities as defined in subdivision 3 new text begin and net metered facilities under subdivision 3a, if interconnected to a cooperative electric association or municipal utility, or 1,000-kilowatt capacity or more if interconnected to a public utility, new text end which elect to be governed by its provisions.

(b) The utility to which the qualifying facility is interconnected shall purchase all energy and capacity made available by the qualifying facility. The qualifying facility shall be paid the utility's full avoided capacity and energy costs as negotiated by the parties, as set by the commission, or as determined through competitive bidding approved by the commission. The full avoided capacity and energy costs to be paid a qualifying facility that generates electric power by means of a renewable energy source are the utility's least cost renewable energy facility or the bid of a competing supplier of a least cost renewable energy facility, whichever is lower, unless the commission's resource plan order, under section 216B.2422, subdivision 2, provides that the use of a renewable resource to meet the identified capacity need is not in the public interest.

(c) For all qualifying facilities having 30-kilowatt capacity or more, the utility shall, at the qualifying facility's or the utility's request, provide wheeling or exchange agreements wherever practicable to sell the qualifying facility's output to any other Minnesota utility having generation expansion anticipated or planned for the ensuing ten years. The commission shall establish the methods and procedures to insure that except for reasonable wheeling charges and line losses, the qualifying facility receives the full avoided energy and capacity costs of the utility ultimately receiving the output.

(d) The commission shall set rates for electricity generated by renewable energy.

Sec. 6.

Minnesota Statutes 2012, section 216B.164, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Aggregation of meters. new text end

new text begin (a) For the purpose of measuring electricity under subdivisions 3 and 3a, a public utility must aggregate for billing purposes a customer's designated meter with one or more aggregated meters if a customer requests that it do so. To qualify for aggregation under this subdivision, a meter must be owned by the customer requesting the aggregation, must be located on contiguous property owned by the customer requesting the aggregation, and the total of all aggregated meters must be subject to the size limitation in this section. new text end

new text begin (b) A public utility must comply with a request by a customer-generator to aggregate additional meters within 90 days. The specific meters must be identified at the time of the request. In the event that more than one meter is identified, the customer must designate the rank order for the aggregated meters to which the net metered credits are to be applied new text end new text begin . At least 60 days prior to the beginning of the next annual billing period, a customer may amend the rank order of the aggregated meters, subject to this subdivision. new text end

new text begin (c) The aggregation of meters applies only to charges that use kilowatt-hours as the billing determinant. All other charges applicable to each meter account shall be billed to the customer. new text end

new text begin (d) A public utility will first apply the kilowatt-hour credit to the charges for the designated meter and then to the charges for the aggregated meters in the rank order specified by the customer. If the net metered facility supplies more electricity to the public utility than the energy usage recorded by the customer-generator's designated and aggregated meters during a monthly billing period, the public utility shall apply credits to the customer's next monthly bill for the excess kilowatt-hours. new text end

new text begin (e) With the commission's prior approval, a public utility may charge the customer-generator requesting to aggregate meters a reasonable fee to cover the administrative costs incurred in implementing the costs of this subdivision, pursuant to a tariff approved by the commission for a public utility. new text end

Sec. 7.

Minnesota Statutes 2012, section 216B.164, is amended by adding a subdivision to read:

new text begin Subd. 4b. new text end

new text begin Limiting cumulative generation. new text end

new text begin The commission may limit the cumulative generation of net metered facilities under subdivisions 3 and 3a. A public utility may request the commission to limit the cumulative generation of net metered facilities under subdivisions 3 and 3a upon a showing that such generation has reached four percent of the public utility's annual retail electricity sales. The commission may limit additional net metering obligations under this subdivision only after providing notice and opportunity for public comment. In determining whether to limit additional net metering obligations under this subdivision, the commission shall consider: new text end

new text begin (1) the environmental and other public policy benefits of net metered facilities; new text end

new text begin (2) the impact of net metered facilities on electricity rates for customers without net metered systems; new text end

new text begin (3) the effects of net metering on the reliability of the electric system; new text end

new text begin (4) technical advances or technical concerns; and new text end

new text begin (5) other statutory obligations imposed on the commission or on a utility. new text end

new text begin The commission may limit additional net metering obligations under clauses (2) to (4) only if it determines that additional net metering obligations would cause significant rate impact, require significant measures to address reliability, or raise significant technical issues. new text end

Sec. 8.

Minnesota Statutes 2012, section 216B.164, is amended by adding a subdivision to read:

new text begin Subd. 4c. new text end

new text begin Individual system capacity limits. new text end

new text begin (a) A public utility that provides retail electric service may require customers with a facility of 40-kilowatt capacity or more and participating in net metering and net billing to limit the total generation capacity of individual distributed generation systems by either: new text end

new text begin (1) for wind generation systems, limiting the total generation system capacity kilowatt alternating current to 120 percent of the customer's on-site maximum electric demand; or new text end

new text begin (2) for solar photovoltaic and other distributed generation limiting the total generation system annual energy production kilowatt hours alternating current to 120 percent of the customer's on-site annual electric energy consumption. new text end

new text begin (b) Limits under paragraph (a) must be based on standard 15-minute intervals, measured during the previous 12 calendar months, or on a reasonable estimate of the average monthly maximum demand or average annual consumption if the customer has either: new text end

new text begin (i) less than 12 calendar months of actual electric usage; or new text end

new text begin (ii) no demand metering available. new text end

Sec. 9.

Minnesota Statutes 2012, section 216B.164, subdivision 6, is amended to read:

Subd. 6.

Rules and uniform contract.

(a) The commission shall promulgate rules to implement the provisions of this section. The commission shall also establish a uniform statewide form of contract for use between utilities and a new text begin net metered or new text end qualifying facility having less than deleted text begin 40-kilowattdeleted text end new text begin 1,000-kilowattnew text end capacity new text begin if interconnected to a public utility or less than 40-kilowatt capacity if interconnected to a cooperative electric association or municipal utilitynew text end .

(b) The commission shall require the qualifying facility to provide the utility with reasonable access to the premises and equipment of the qualifying facility if the particular configuration of the qualifying facility precludes disconnection or testing of the qualifying facility from the utility side of the interconnection with the utility remaining responsible for its personnel.

(c) The uniform statewide form of contract shall be applied to all new and existing interconnections established between a utility and a new text begin net metered or new text end qualifying facility having less than 40-kilowatt capacity, except that existing contracts may remain in force until deleted text begin written notice of election that the uniform statewide contract form applies is given by either party to the other, with the notice being of the shortest time period permitted under the existing contract for termination of the existing contract by either party, but not less than ten nor longer than 30 daysdeleted text end new text begin terminated by mutual agreement between both partiesnew text end .

Sec. 10.

Minnesota Statutes 2012, section 216B.164, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Alternative tariff; compensation for resource value. new text end

new text begin (a) A public utility may apply for commission approval for an alternative tariff that compensates customers through a bill credit mechanism for the value to the utility, its customers, and society for operating distributed solar photovoltaic resources interconnected to the utility system and operated by customers primarily for meeting their own energy needs. new text end

new text begin (b) If approved, the alternative tariff shall apply to customers' interconnections occurring after the date of approval. The alternative tariff is in lieu of the applicable rate under subdivisions 3 and 3a. new text end

new text begin (c) The commission shall after notice and opportunity for public comment approve the alternative tariff provided the utility has demonstrated the alternative tariff: new text end

new text begin (1) appropriately applies the methodology established by the department and approved by the commission under this subdivision; new text end

new text begin (2) includes a mechanism to allow recovery of the cost to serve customers receiving the alternative tariff rate; new text end

new text begin (3) charges the customer for all electricity consumed by the customer at the applicable rate schedule for sales to that class of customer; new text end

new text begin (4) credits the customer for all electricity generated by the solar photovoltaic device at the distributed solar value rate established under this subdivision; new text end

new text begin (5) applies the charges and credits in clauses (3) and (4) to a monthly bill that includes a provision so that the unused portion of the credit in any month or billing period shall be carried forward and credited against all charges. In the event that the customer has a positive balance after the 12-month cycle ending on the last day in February, that balance will be eliminated and the credit cycle will restart the following billing period beginning on March 1; new text end

new text begin (6) complies with the size limits specified in subdivision 3a; new text end

new text begin (7) complies with the interconnection requirements under section 216B.1611; and new text end

new text begin (8) complies with the standby charge requirements in subdivision 3a, paragraph (b). new text end

new text begin (d) A utility must provide to the customer the meter and any other equipment needed to provide service under the alternative tariff. new text end

new text begin (e) The department must establish the distributed solar value methodology in paragraph (c), clause (1), no later than January 31, 2014. The department must submit the methodology to the commission for approval. The commission must approve, modify with the consent of the department, or disapprove the methodology within 60 days of its submission. When developing the distributed solar value methodology, the department shall consult stakeholders with experience and expertise in power systems, solar energy, and electric utility ratemaking regarding the proposed methodology, underlying assumptions, and preliminary data. new text end

new text begin (f) The distributed solar value methodology established by the department must, at a minimum, account for the value of energy and its delivery, generation capacity, transmission capacity, transmission and distribution line losses, and environmental value. The department may, based on known and measurable evidence of the cost or benefit of solar operation to the utility, incorporate other values into the methodology, including credit for locally manufactured or assembled energy systems, systems installed at high-value locations on the distribution grid, or other factors. new text end

new text begin (g) The credit for distributed solar value applied to alternative tariffs approved under this section shall represent the present value of the future revenue streams of the value components identified in paragraph (f). new text end

new text begin (h) The utility shall recalculate the alternative tariff on an annual cycle, and shall file the recalculated alternative tariff with the commission for approval. new text end

new text begin (i) Renewable energy credits for solar energy credited under this subdivision belong to the electric utility providing the credit. new text end

new text begin (j) The commission may not authorize a utility to charge an alternative tariff rate that is lower than the utility's applicable retail rate until three years after the commission approves an alternative tariff for the utility. new text end

new text begin (k) A utility must enter into a contract with an owner of a solar photovoltaic device receiving an alternative tariff rate under this section that has a term of at least 20 years, unless a shorter term is agreed to by the parties. new text end

new text begin (l) An owner of a solar photovoltaic device receiving an alternative tariff rate under this section must be paid the same rate per kilowatt-hour generated each year for the term of the contract. new text end

ARTICLE 10

SOLAR ENERGY

Section 1.

new text begin [116C.7792] SOLAR ENERGY INCENTIVE PROGRAM. new text end

new text begin The utility subject to section 116C.779 shall operate a program to provide solar energy production incentives for solar energy systems of no more than a total nameplate capacity of 20 kilowatts direct current. The program shall be operated for five consecutive calendar years commencing in 2014. $5,000,000 shall be allocated for each of the five years from the renewable development account established in section 116C.779 to a separate account for the purpose of the solar production incentive program. The solar system must be sized to less than 120 percent of the customer's on-site annual energy consumption. The production incentive must be paid for ten years commencing with the commissioning of the system. The utility must file a plan to operate the program with the commissioner of commerce. The utility may not operate the program until it is approved by the commissioner. new text end

Sec. 2.

new text begin [216B.1641] COMMUNITY SOLAR GARDEN. new text end

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

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

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

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

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

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

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

new text begin (3) not apply different requirements to utility and non-utility community solar garden facilities; new text end

new text begin (4) be consistent with the public interest; new text end

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

new text begin (6) include a program implementation schedule; new text end

new text begin (7) identify all proposed rules, fees, and charges; and new text end

new text begin (8) identify the means by which the program will be promoted. new text end

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

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

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

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

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

Sec. 3.

Minnesota Statutes 2012, section 216B.1691, is amended by adding a subdivision to read:

new text begin Subd. 2f. new text end

new text begin Solar energy standard. new text end

new text begin (a) In addition to the requirements of subdivisions 2a and 2b, each public utility shall generate or procure sufficient electricity generated by solar energy to serve its retail electricity customers in Minnesota so that by the end of 2020, at least 1.5 percent of the utility's total retail electric sales to retail customers in Minnesota is generated by solar energy. At least ten percent of the 1.5 percent goal must be met by solar energy generated by or procured from solar photovoltaic devices with a nameplate capacity of 20 kilowatts or less. new text end

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

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

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

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

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

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

new text begin (e) A public utility may not use energy used to satisfy the solar energy standard under this subdivision to satisfy its standard obligation under subdivision 2a. A public utility may not use energy used to satisfy the standard obligation under subdivision 2a to satisfy the solar standard under this subdivision. new text end

new text begin (f) Notwithstanding any law to the contrary, a solar renewable energy credit associated with a solar photovoltaic device installed and generating electricity in Minnesota after the effective date of this act but before 2020 may be used to meet the solar energy standard established under this subdivision. new text end

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

Sec. 4.

Minnesota Statutes 2012, section 216B.2411, subdivision 3, is amended to read:

Subd. 3.

Other provisions.

(a) Electricity generated by a facility constructed with funds provided under this section and using an eligible renewable energy source may be counted toward the renewable energy objectives in section 216B.1691, subject to the provisions of that sectionnew text begin , except as provided in paragraph (c)new text end .

(b) Two or more entities may pool resources under this section to provide assistance jointly to proposed eligible renewable energy projects. The entities shall negotiate and agree among themselves for allocation of benefits associated with a project, such as the ability to count energy generated by a project toward a utility's renewable energy objectives under section 216B.1691new text begin , except as provided in paragraph (c)new text end . The entities shall provide a summary of the allocation of benefits to the commissioner. A utility may spend funds under this section for projects in Minnesota that are outside the service territory of the utility.

new text begin (c) Electricity generated by a solar photovoltaic device constructed with funds provided under this section may be counted toward a public utility's solar energy standard under section 216B.1691, subdivision 2f. new text end

ARTICLE 11

MADE IN MINNESOTA

Section 1.

new text begin [216C.411] DEFINITIONS. new text end

new text begin For the purposes of sections 216C.411 to 216C.415, the following terms have the meanings given. new text end

new text begin (a) "Made in Minnesota" means the manufacture in this state of solar photovoltaic modules: new text end

new text begin (1) at a manufacturing facility located in Minnesota that is registered and authorized to manufacture and apply the UL 1703 certification mark to solar photovoltaic modules by Underwriters Laboratory (UL), CSA International, Intertek, or an equivalent UL-approved independent certification agency; new text end

new text begin (2) that bear UL 1703 certification marks from UL, CSA International, Intertek, or an equivalent UL-approved independent certification agency, which must be physically applied to the modules at a manufacturing facility described in clause (1); and new text end

new text begin (3) that are manufactured in Minnesota: new text end

new text begin (i) by manufacturing processes that must include tabbing, stringing, and lamination; or new text end

new text begin (ii) by interconnecting low-voltage direct current photovoltaic elements that produce the final useful photovoltaic output of the modules. new text end

new text begin A solar photovoltaic module that is manufactured by attaching microinverters, direct current optimizers, or other power electronics to a laminate or solar photovoltaic module that has received UL 1703 certification marks outside Minnesota from UL, CSA International, Intertek, or an equivalent UL-approved independent certification agency is not "Made in Minnesota" under this paragraph. new text end

new text begin (b) "Solar photovoltaic module" has the meaning given in section 116C.7791, subdivision 1, paragraph (e). 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.

new text begin [216C.412] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE ACCOUNT. new text end

new text begin Subdivision 1. new text end

new text begin Account established; account management. new text end

new text begin A "Made in Minnesota" solar energy production incentive account is established as a separate account in the special revenue fund in the state treasury. Earnings, such as interest, dividends, and any other earnings arising from account assets, must be credited to the account. Funds remaining in the account at the end of a fiscal year do not cancel to the general fund but remain in the account. There is annually appropriated from the account to the commissioner of commerce money sufficient to make the incentive payments under section 216C.415, the transfers under 216C.416, and to administer sections 216C.412 to 216C.415. new text end

new text begin Subd. 2. new text end

new text begin Payments from public utilities. new text end

new text begin (a) Beginning January 1, 2014, and each January 1 thereafter, through 2023, for a total of ten years, each electric public utility subject to section 216B.241 must annually pay to the commissioner of commerce five percent of the minimum amount it is required to spend on energy conservation improvements under section 216B.241, subdivision 1a. Payments under this subdivision must be included in the calculation of whether a utility's other spending on generation exceeds the limits authorized for spending on generation under section 216B.2411, subdivision 1, for investments proposed for commissioner of commerce approval after July 1, 2013. The limits on spending in section 216B.2411 do not limit or apply to payments required by this subdivision. Payments made under this paragraph count towards satisfying expenditure obligations of a public utility under section 216B.241, subdivision 1a. The commissioner shall, upon receipt of the funds, deposit them in the account established in subdivision 1. A public utility subject to this paragraph must be credited energy-savings for the purpose of satisfying its energy savings requirement under section 216B.241, subdivision 1c, based on its payment to the commissioner. new text end

new text begin (b) Notwithstanding section 116C.779, subdivision 1, paragraph (g), beginning January 1, 2014, and continuing through January 1, 2023, for a total of ten years, the public utility that manages the account under section 116C.779 must annually pay from that account to the commissioner an amount that, when added to the total amount paid to the commissioner of commerce under paragraph (a), totals $15,000,000 annually. The commissioner shall, upon receipt of the payment, deposit it in the account established in subdivision 1. 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.

new text begin [216C.413] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE; QUALIFICATION. new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin A manufacturer of solar photovoltaic modules seeking to qualify those modules as eligible to receive the "Made in Minnesota" solar energy production incentive must submit an application to the commissioner of commerce on a form prescribed by the commissioner. The application must contain: new text end

new text begin (1) a technical description of the solar photovoltaic module and the processes used to manufacture it, excluding proprietary details; new text end

new text begin (2) documentation that the solar photovoltaic module meets all the required applicable parts of the "Made in Minnesota" definition in section 216C.411, including evidence of the UL 1703 right to mark for all solar photovoltaic modules seeking to qualify as "Made in Minnesota"; new text end

new text begin (3) any additional nonproprietary information requested by the commissioner of commerce; and new text end

new text begin (4) certification signed by the chief executive officer of the manufacturing company attesting to the truthfulness of the contents of the application and supporting materials under penalty of perjury. new text end

new text begin Subd. 2. new text end

new text begin Certification. new text end

new text begin If the commissioner determines that a manufacturer's solar photovoltaic module meets the definition of "Made in Minnesota" in section 216C.411, the commissioner shall issue the manufacturer a "Made in Minnesota" certificate containing the name and model numbers of the certified solar photovoltaic modules and the date of certification. The commissioner must issue or deny the issuance of a certificate within 90 days of receipt of a completed application. A copy of the certificate must be provided to each purchaser of the solar photovoltaic module. new text end

new text begin Subd. 3. new text end

new text begin Revocation of certification. new text end

new text begin The commissioner may revoke a certification of a module as "Made in Minnesota" if the commissioner finds that the module no longer meets the requirements to be certified. The revocation does not affect incentive payments awarded prior to the revocation. 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. 4.

new text begin [216C.414] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE. new text end

new text begin Subdivision 1. new text end

new text begin Setting incentive. new text end

new text begin Within 90 days of a module being certified as "Made in Minnesota" the commissioner of commerce shall set a solar energy production incentive amount for that solar photovoltaic module for the purpose of the incentive payment under section 216C.415. The incentive is a performance-based financial incentive expressed as a per kilowatt-hour amount. The amount shall be used for incentive applications approved in the year to which the incentive amount is applicable for the ten-year duration of the incentive payments. An incentive amount must be calculated for each module for each calendar year, through 2023. new text end

new text begin Subd. 2. new text end

new text begin Criteria for determining incentive amount. new text end

new text begin (a) The commissioner shall set the incentive payment amount by determining the average amount of incentive payment required to allow an average owner of installed solar photovoltaic modules a reasonable return on their investment. In setting the incentive amount the commissioner shall consider: new text end

new text begin (1) an estimate of the installed cost per kilowatt-direct current, based on the cost data supplied by the manufacturer in the application submitted under section 216C.413, and an estimate of the average installation cost based on a representative sample of Minnesota solar photovoltaic installed projects; new text end

new text begin (2) the average insolation rate in Minnesota; new text end

new text begin (3) an estimate of the decline in the generation efficiency of the solar photovoltaic modules over time; new text end

new text begin (4) the rate paid by public utilities to owners of solar photovoltaic modules under section 216B.164 or other law; new text end

new text begin (5) applicable federal tax incentives for installing solar photovoltaic modules; and new text end

new text begin (6) the estimated levelized cost per kilowatt-hour generated. new text end

new text begin (b) The commissioner shall annually, for incentive applications received in a year, revise each incentive amount based on the factors in paragraph (a), clauses (1) to (6), general market conditions, and the availability of other incentives. In no case shall the "Made in Minnesota" incentive amount result in the "Made in Minnesota" incentives paid exceeding 40 percent, net of average applicable taxes on the ten-year incentive payments, of the average historic installation cost per kilowatt. The commissioner may exceed the 40 percent cap if the commissioner determines it is necessary to fully expend funds available for incentive payments in a particular year. new text end

new text begin Subd. 3. new text end

new text begin Metering of production. new text end

new text begin A public utility must, at the expense of a customer, provide a meter to measure the production of a solar photovoltaic module system that is approved to receive incentive payments. The public utility must furnish the commissioner with information sufficient for the commissioner to determine the incentive payment. The information must be provided on a calendar year basis by no later than March 1. The commissioner shall provide a public utility with forms to use to provide the production information. A customer must attest to the accuracy of the production information. new text end

new text begin Subd. 4. new text end

new text begin Payment due date. new text end

new text begin Payments must be made no later than July 1 following the year of production. new text end

new text begin Subd. 5. new text end

new text begin Renewable energy credits. new text end

new text begin Renewable energy credits associated with energy provided to a public utility for which an incentive payment is made belong to the utility. new text end

Sec. 5.

new text begin [216C.415] "MADE IN MINNESOTA" SOLAR ENERGY PRODUCTION INCENTIVE; PAYMENT. new text end

new text begin Subdivision 1. new text end

new text begin Incentive payment. new text end

new text begin Incentive payments may be made under this section only to an owner of grid-connected solar photovoltaic modules with a total nameplate capacity below 40 kilowatts direct current who: new text end

new text begin (1) has submitted to the commissioner, on a form established by the commissioner, an application to receive the incentive that has been approved by the commissioner; new text end

new text begin (2) has received a "Made in Minnesota" certificate under section 216C.413 for the module; and new text end

new text begin (3) has installed on residential or commercial property solar photovoltaic modules that are generating electricity and has received a "Made in Minnesota" certificate under section 216C.413. new text end

new text begin Subd. 2. new text end

new text begin Application process. new text end

new text begin Applications for an incentive payment must be received by the commissioner between January 1 and February 28. The commissioner shall by a random method approve the number of applications the commissioner reasonably determines will exhaust the funds available for payment for the ten-year period of incentive payments. Applications for residential and commercial installations shall be separately randomly approved. new text end

new text begin Subd. 3. new text end

new text begin Commissioner approval of incentive application. new text end

new text begin The commissioner must approve an application for an incentive for an owner to be eligible for incentive payments. The commissioner must not approve an application in a calendar year if the commissioner determines there will not be sufficient funding available to pay an incentive to the applicant for any portion of the ten-year duration of payment. The commissioner shall annually establish a cap on the cumulative capacity for a program year based on funds available and historic average installation costs. Receipt of an incentive is not an entitlement and payment need only be made from available funds in the "Made in Minnesota" solar production incentive account. new text end

new text begin Subd. 4. new text end

new text begin Eligibility window; payment duration. new text end

new text begin (a) Payments may be made under this section only for electricity generated from new solar photovoltaic module installations that are commissioned between January 1, 2014, and December 31, 2023. new text end

new text begin (b) The payment eligibility window of the incentive begins and runs consecutively from the date the solar system is commissioned. new text end

new text begin (c) An owner of solar photovoltaic modules may receive payments under this section for a particular module for a period of ten years provided that sufficient funds are available in the account. new text end

new text begin (d) No payment may be made under this section for electricity generated after December 31, 2033. new text end

new text begin (e) An owner of solar photovoltaic modules may not first begin to receive payments under this section after December 31, 2024. new text end

new text begin Subd. 5. new text end

new text begin Allocation of payments. new text end

new text begin (a) If there are sufficient applications, approximately 50 percent of the incentive payment shall be for owners of eligible solar photovoltaic modules installed on residential property, and approximately 50 percent shall be for owners of eligible solar photovoltaic modules installed on commercial property. new text end

new text begin (b) The commissioner shall endeavor to distribute incentives paid under this section to owners of solar photovoltaic modules installed in a manner so that the amount of payments received in an area of the state reasonably approximates the amount of payments made by a utility serving that area. new text end

new text begin (c) For purposes of this subdivision: new text end

new text begin (1) "residential property" means residential real estate that is occupied and used as a homestead by its owner or by a renter and includes "multifamily housing development" as defined in section 462C.02, subdivision 5, except that residential property on which solar photovoltaic modules (i) whose capacity exceeds 10 kilowatts is installed; or (ii) connected to a utility's distribution system and whose electricity is purchased by several residents, each of whom own a share of the electricity generated, shall be deemed commercial property; and new text end

new text begin (2) "commercial property" means real property on which is located a business, government, or nonprofit establishment. new text end

new text begin Subd. 6. new text end

new text begin Limitation. new text end

new text begin An owner receiving an incentive payment under this section may not receive a rebate under section 116C.7791 for the same solar photovoltaic modules. 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. 6.

new text begin [216C.416] SOLAR THERMAL REBATES. new text end

new text begin Subdivision 1. new text end

new text begin Rebate program created. new text end

new text begin The commissioner of commerce shall operate a program to provide rebates for the installation of "Made in Minnesota" solar thermal systems in the state. "Solar thermal system" means a flat plate or evacuated tube that meets the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant energy and transfers it to a storage medium for distribution as energy to heat or cool air or water. A solar thermal system is "Made in Minnesota" if components of the system are manufactured in Minnesota and the solar thermal system is certified by the Solar Rating and Certification Corporation. The solar thermal system may be installed in residential and commercial facilities for, among other purposes, hot water, space heating, or pool heating purposes. new text end

new text begin Subd. 2. new text end

new text begin Account; funding. new text end

new text begin (a) The solar thermal system rebate account is created as a separate account in the special revenue fund in the state treasury. Earnings, such as interest, dividends, and any other earnings arising from account assets, must be credited to the account. Funds in the account are appropriated to the commissioner of commerce for the purpose of making the rebate payments under this section and administering this section. new text end

new text begin (b) Beginning January 1, 2014, and each January 1 thereafter to January 1, 2023, the commissioner of commerce shall annually transfer $250,000 from the account created in section 216C.412, for deposit in the account created in this subdivision. new text end

new text begin (c) To the extent there are sufficient applications, the commissioner shall annually spend for rebates under this section from 2014 to 2023, for a total of ten years, approximately $250,000 per year. If sufficient applications are not received to spend the money available for rebates in a year under this section, the unspent money must be returned to the account from which it was transferred, provided that funds available for 2014 applications shall remain available for 2015 applications. new text end

new text begin Subd. 3. new text end

new text begin Individual incentives. new text end

new text begin The maximum rebate for a single family residential dwelling installation is the lesser of 25 percent of the installed cost of a complete system or $2,500. The maximum rebate for a multiple family residential dwelling installation is the lesser of 25 percent of the installed cost of a complete system or $5,000. The maximum rebate for a commercial installation is the lesser of 25 percent of the installation cost of the complete system or $25,000. The system must be installed by a factory authorized installer. The commissioner shall allocate approximately 50 percent of the rebates in each year to solar thermal hot water and 50 percent to solar thermal air projects if sufficient applications are made for each. new text end

new text begin Subd. 4. new text end

new text begin Application process. new text end

new text begin Applications for incentives must be made to the commissioner of commerce on forms provided by the commissioner. The commissioner shall use a random process for the selection of recipients of incentives except to the extent necessary to allocate rebates as required by 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

ARTICLE 12

ENERGY POLICY DEVELOPMENT

Section 1.

new text begin [3.8852] PLANNING STRATEGY FOR SUSTAINABLE ENERGY FUTURE. new text end

new text begin (a) The Legislative Energy Commission, in consultation with the commissioner of commerce and other state agencies, shall develop a framework for the state of Minnesota to transition to a renewable energy economy that ends Minnesota's contribution to greenhouse gases from burning fossil fuels within the next few decades. The framework and strategy should aim to make Minnesota the first state in the nation to use only renewable energy. new text end

new text begin (b) In developing the framework for this transition, the commission must consult with stakeholders, including, but not limited to, representatives from cooperative, municipal, and investor-owned utilities, natural resources and environmental advocacy groups, labor and industry, and technical and scientific experts to examine the challenges and opportunities involved to develop a strategy and timeline to protect the environment and create jobs. The timeline must establish goals and strategies to reach the state's renewable energy standards and prepare for the steps beyond reaching those standards. The Department of Commerce, Division of Energy Resources shall provide technical support. new text end

new text begin (c) The commission and its stakeholders must consider the following in creating the framework: new text end

new text begin (1) the economic and environmental costs of continued reliance on fossil fuels; new text end

new text begin (2) the creation of jobs and industry in the state that result from moving ahead of other states in transitioning to a sustainable energy economy; new text end

new text begin (3) the appropriate energy efficiency and renewable energy investments in Minnesota to reduce the economic losses to the Minnesota economy from importation of fossil fuels; and new text end

new text begin (4) the new technologies for energy efficiency, storage, transmission, and renewable generation needed to reliably meet the demand for energy. new text end

new text begin (d) The framework shall be modified as needed to take advantage of new technological developments to facilitate ending fossil fuel use in power generation, heating and cooling, industry, and transportation. new text end

new text begin (e) The commission shall report to the legislative committees and divisions with jurisdiction over energy policy by January 15, 2014, and annually thereafter, on progress towards achieving the framework goals. new text end

Sec. 2.

Minnesota Statutes 2012, section 216B.2401, is amended to read:

216B.2401 ENERGY deleted text begin CONSERVATIONdeleted text end new text begin SAVINGSnew text end POLICY GOAL.

new text begin The legislature finds that energy savings are an ener