1.1 	A bill for an act
1.2 	relating to jobs; appropriating money for the Departments of Employment and 
1.3 	Economic Development, Labor and Industry, and Commerce; the Bureau of 
1.4 	Mediation Services; Public Employment Relations Board; Housing Finance Agency; 
1.5 	Explore Minnesota Tourism; Workers' Compensation Court of Appeals; and Public 
1.6 	Utilities Commission; making policy and technical changes; modifying fees; 
1.7 	providing penalties; requiring reports;amending Minnesota Statutes 2016, sections 
1.8 	16C.144, by adding subdivisions; 45.0135, subdivision 7; 46.131, subdivision 7, 
1.9 	by adding a subdivision; 47.59, subdivision 2; 47.60, subdivisions 1, 2, 4, by adding 
1.10 	a subdivision; 47.601, subdivision 2, by adding a subdivision; 47.65, subdivision 
1.11 	2; 53.04, subdivision 3a; 53.09, subdivision 2; 53A.03; 53B.11, subdivision 1; 
1.12 	53C.02; 55.04, subdivision 2; 56.02; 58.10, subdivision 1; 58A.045, subdivision 
1.13 	2; 59A.03, subdivision 2; 80A.61; 80A.65, subdivision 2; 116J.8731, subdivisions 
1.14 	2, 5, by adding a subdivision; 116J.8748, subdivisions 1, 3, 4, 6; 116L.665; 
1.15 	116M.14, subdivision 4; 116M.17, subdivision 4; 116M.18, subdivisions 1a, 4, 
1.16 	4a, 8; 175.45; 177.27, subdivision 2, by adding a subdivision; 177.30; 177.32, 
1.17 	subdivision 1; 181.03, subdivision 1, by adding subdivisions; 181.032; 181.101; 
1.18 	216B.2401; 216B.241, subdivisions 1, 1c, 1d, 3, 5a; 239.101, subdivision 2; 
1.19 	326B.092, subdivision 7; 326B.153, subdivision 1; 326B.37, by adding 
1.20 	subdivisions; 326B.89, subdivisions 1, 5; 332.30; 332.54, subdivision 7; 332A.06; 
1.21 	332B.04, subdivision 6; Laws 2015, First Special Session chapter 1, article 1, 
1.22 	sections 4, as amended; 5, subdivision 2; Laws 2016, chapter 189, article 7, section 
1.23 	2, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 
1.24 	326B; repealing Minnesota Statutes 2016, sections 46.131, subdivision 5; 326B.89, 
1.25 	subdivision 14; Laws 2009, chapter 37, article 3, section 4; Minnesota Rules, parts 
1.26 	4355.0100; 4355.0200; 4355.0300; 4355.0400; 4355.0500.
1.27 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.28 	ARTICLE 1
1.29 	APPROPRIATIONS

1.30 | Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
1.31 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.32 	and for the purposes specified in this article. The appropriations are from the general fund, 
2.1 	or another named fund, and are available for the fiscal years indicated for each purpose. 
2.2 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
2.3 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
2.4 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
2.5 	is fiscal years 2018 and 2019.

2.6 | | | | APPROPRIATIONS
2.7 | | | | Available for the Year
2.8 | | | | Ending June 30
2.9 | | | | | 2018 | | 2019

2.10

2.11

Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.12 | Subdivision 1.Total Appropriation | $ | 156,964,000 | $ | 157,456,000

2.13 | Appropriations by Fund
2.14 | | 2018 | 2019
2.15 | General | 130,482,000 | 130,961,000
2.16 | Remediation | 700,000 | 700,000
2.17

2.18

Workforce 
Development

25,782,000

25,795,000

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

2.22 | Subd. 2.Business and Community Development | | | |

2.23 | Appropriations by Fund
2.24 | General | 47,961,000 | 47,961,000
2.25 | Remediation | 700,000 | 700,000
2.26

2.27

Workforce 
Development

900,000

900,000

2.28 	(a) $15,000,000 each year is for the Minnesota 
2.29 	investment fund under Minnesota Statutes, 
2.30 	section 116J.8731. Of this amount, up to three 
2.31 	percent is for administration and monitoring 
2.32 	of the program. This appropriation is available 
2.33 	until spent. The base for this program is 
2.34 	$11,000,000 in fiscal year 2020 and 
2.35 	$11,000,000 in fiscal year 2021.
3.1 	(b) $12,500,000 each year is for the Minnesota 
3.2 	job creation fund under Minnesota Statutes, 
3.3 	section 116J.8748. Of this amount, up to three 
3.4 	percent is for administration and monitoring 
3.5 	of the program. This appropriation is available 
3.6 	until spent. The base for this program is 
3.7 	$6,500,000 in fiscal year 2020 and $6,500,000 
3.8 	in fiscal year 2021.
3.9 	(c) $2,000,000 each year is for the workforce 
3.10 	housing grant program in Minnesota Statutes, 
3.11 	section 116J.549. Of this amount, up to five 
3.12 	percent is for administration and monitoring 
3.13 	of the program. This appropriation is available 
3.14 	until spent.
3.15 	(d) $750,000 each year is for the Minnesota 
3.16 	emerging entrepreneur loan program under 
3.17 	Minnesota Statutes, section 116M.18. Funds 
3.18 	available under this paragraph are for transfer 
3.19 	into the emerging entrepreneur program 
3.20 	special revenue fund account created under 
3.21 	Minnesota Statutes, chapter 116M, and are 
3.22 	available until spent. Of this amount, up to 
3.23 	five percent is for administration and 
3.24 	monitoring of the program.
3.25 	(e) $900,000 each year from the workforce 
3.26 	development fund is for the job training 
3.27 	incentive program under Minnesota Statutes, 
3.28 	section 116L.42. Of this amount, up to five 
3.29 	percent is for administration and monitoring 
3.30 	of the program.
3.31 	(f) $1,300,000 each year is for the greater 
3.32 	Minnesota business development public 
3.33 	infrastructure grant program under Minnesota 
3.34 	Statutes, section 116J.431. This appropriation 
3.35 	is available until spent.
4.1 	(g) $139,000 each year is for the Center for 
4.2 	Rural Policy and Development.
4.3 	(h) $1,272,000 each year is for contaminated 
4.4 	site cleanup and development grants under 
4.5 	Minnesota Statutes, sections 116J.551 to 
4.6 	116J.558. This appropriation is available until 
4.7 	spent.
4.8 	(i) $700,000 each year is from the remediation 
4.9 	fund for contaminated site cleanup and 
4.10 	development grants under Minnesota Statutes, 
4.11 	sections 116J.551 to 116J.558. This 
4.12 	appropriation is available until spent.
4.13 	(j) $1,425,000 each year is for the business 
4.14 	development competitive grant program. Of 
4.15 	this amount, up to five percent is for 
4.16 	administration and monitoring of the business 
4.17 	development competitive grant program. All 
4.18 	grant awards shall be for two consecutive 
4.19 	years. Grants shall be awarded in the first year.
4.20 	(k) $4,195,000 each year is for the Minnesota 
4.21 	job skills partnership program under 
4.22 	Minnesota Statutes, sections 116L.01 to 
4.23 	116L.17. If the appropriation for either year 
4.24 	is insufficient, the appropriation for the other 
4.25 	year is available. This appropriation is 
4.26 	available until spent.
4.27 	(l) $875,000 each year is from the general fund 
4.28 	for the host community economic development 
4.29 	program established in Minnesota Statutes, 
4.30 	section 116J.548.
4.31 	(m) $25,000 each year is for the administration 
4.32 	of state aid for the Destination Medical Center 
4.33 	under Minnesota Statutes, sections 469.40 to 
4.34 	469.47.
5.1 	(n) $750,000 each year is for a grant to the 
5.2 	Neighborhood Development Center for small 
5.3 	business programs.
5.4 	(o) $1,175,000 each year is for a grant to the 
5.5 	Metropolitan Economic Development 
5.6 	Association (MEDA) for statewide business 
5.7 	development and assistance services, including 
5.8 	services to entrepreneurs with businesses that 
5.9 	have the potential to create job opportunities 
5.10 	for unemployed and underemployed people, 
5.11 	with an emphasis on minority-owned 
5.12 	businesses.
5.13 	(p) $125,000 each year is for a grant to the 
5.14 	White Earth Nation for the White Earth Nation 
5.15 	Integrated Business Development System to 
5.16 	provide business assistance with workforce 
5.17 	development, outreach, technical assistance, 
5.18 	infrastructure and operational support, 
5.19 	financing, and other business development 
5.20 	activities.
5.21 	(q) $875,000 each year is for a grant to 
5.22 	Enterprise Minnesota, Inc. for the small 
5.23 	business growth acceleration program under 
5.24 	Minnesota Statutes, section 116O.115.
5.25 	(r) $12,000 each year is from the general fund 
5.26 	for a grant to the Upper Minnesota Film 
5.27 	Office.
5.28 	(s) $325,000 each year is from the general 
5.29 	fund for the Minnesota Film and TV Board. 
5.30 	The appropriation in each year is available 
5.31 	only upon receipt by the board of $1 in 
5.32 	matching contributions of money or in-kind 
5.33 	contributions from nonstate sources for every 
5.34 	$3 provided by this appropriation, except that 
6.1 	each year up to $50,000 is available on July 
6.2 	1 even if the required matching contribution 
6.3 	has not been received by that date.
6.4 	(t) $1,500,000 each year is from the general 
6.5 	fund for a grant to the Minnesota Film and TV 
6.6 	Board for the film production jobs program 
6.7 	under Minnesota Statutes, section 116U.26. 
6.8 	This appropriation is available until spent.

6.9 | Subd. 3.Broadband Development | | 30,250,000 | | 30,250,000
6.10 	(a) $250,000 each year is for the Broadband 
6.11 	Development Office.
6.12 	(b) $30,000,000 each year is for deposit in the 
6.13 	border-to-border broadband fund account 
6.14 	created under Minnesota Statutes, section 
6.15 	116J.396, and may be used for the purposes 
6.16 	provided in Minnesota Statutes, section 
6.17 	116J.395. This is a onetime appropriation. 
6.18 	This appropriation is available until spent. Of 
6.19 	this appropriation, up to three percent is for 
6.20 	costs incurred by the commissioner to 
6.21 	administer Minnesota Statutes, section 
6.22 	116J.395. Administrative costs may include 
6.23 	the following activities related to measuring 
6.24 	progress toward the state's broadband goals 
6.25 	established in Minnesota Statutes, section 
6.26 	237.012:
6.27 	(1) collecting broadband deployment data from 
6.28 	Minnesota providers, verifying its accuracy 
6.29 	through on-the-ground testing, and creating 
6.30 	state and county maps available to the public 
6.31 	showing the availability of broadband service 
6.32 	at various upload and download speeds 
6.33 	throughout Minnesota;
7.1 	(2) analyzing the deployment data collected 
7.2 	to help inform future investments in broadband 
7.3 	infrastructure; and
7.4 	(3) conducting business and residential surveys 
7.5 	that measure broadband adoption and use in 
7.6 	the state.
7.7 	Data provided by a broadband provider under 
7.8 	this paragraph is nonpublic data under 
7.9 	Minnesota Statutes, section 13.02, subdivision 
7.10 	9. Maps produced under this paragraph are 
7.11 	public data under Minnesota Statutes, section 
7.12 	13.03.

7.13 | Subd. 4.Minnesota Trade Office | | 2,292,000 | | 2,292,000
7.14 	(a) $300,000 each year is for the STEP grants 
7.15 	in Minnesota Statutes, section 116J.979.
7.16 	(b) $180,000 each year is for the Invest 
7.17 	Minnesota Marketing Initiative in Minnesota 
7.18 	Statutes, section 116J.9781.
7.19 	(c) $270,000 each year is for the Minnesota 
7.20 	Trade Offices under Minnesota Statutes, 
7.21 	section 116J.978.
7.22 	(d) $50,000 each year is for the trade policy 
7.23 	advisory group under Minnesota Statutes, 
7.24 	section 116J.9661.

7.25 | Subd. 5.Workforce Development | | | |

7.26 | Appropriations by Fund
7.27 | General | 13,114,000 | 13,114,000
7.28

7.29

Workforce 
Development

17,017,000

17,017,000

7.30 	(a) $2,039,000 each year from the general fund 
7.31 	and $4,604,000 each year from the workforce 
7.32 	development fund are for the pathways to 
7.33 	prosperity competitive grant program. Of this 
8.1 	amount, up to five percent is for administration 
8.2 	and monitoring of the program.
8.3 	(b) $4,050,000 each year is from the 
8.4 	workforce development fund for the 
8.5 	Minnesota youth program under Minnesota 
8.6 	Statutes, sections 116L.56 and 116L.561.
8.7 	(c) $1,000,000 each year is from the workforce 
8.8 	development fund for the youthbuild program 
8.9 	under Minnesota Statutes, sections 116L.361 
8.10 	to 116L.366.
8.11 	(d) $1,000,000 each year is from the general 
8.12 	fund and $3,348,000 each year is from the 
8.13 	workforce development fund for the youth at 
8.14 	work competitive grant program under 
8.15 	Minnesota Statutes, section 116L.562. Of this 
8.16 	amount, up to five percent is for administration 
8.17 	and monitoring of the youth workforce 
8.18 	development competitive grant program. All 
8.19 	grant awards shall be for two consecutive 
8.20 	years. Grants shall be awarded in the first year.
8.21 	(e) $500,000 each year from the general fund 
8.22 	and $500,000 each year from the workforce 
8.23 	development fund is for rural career 
8.24 	counseling coordinators in the workforce 
8.25 	service areas and for the purposes specified 
8.26 	in Minnesota Statutes, section 116L.667. Of 
8.27 	these amounts, up to five percent is for 
8.28 	administration and monitoring of the program.
8.29 	(f) $250,000 each year is for the higher 
8.30 	education career advising program. Of this 
8.31 	amount, up to five percent is for administration 
8.32 	and monitoring of the program.
8.33 	(g) $1,000,000 each year is for a competitive 
8.34 	grant program for grants to organizations 
9.1 	providing services to relieve economic 
9.2 	disparities in the Southeast Asian community 
9.3 	through workforce recruitment, development, 
9.4 	job creation, assistance of smaller 
9.5 	organizations to increase capacity, and 
9.6 	outreach. Of this amount, up to five percent 
9.7 	is for administration and monitoring of the 
9.8 	program.
9.9 	(h) $1,500,000 each year is for a competitive 
9.10 	grant program to provide grants to 
9.11 	organizations that provide support services for 
9.12 	individuals, such as job training, employment 
9.13 	preparation, internships, job assistance to 
9.14 	fathers, financial literacy, academic and 
9.15 	behavioral interventions for low-performing 
9.16 	students, and youth intervention. Grants made 
9.17 	under this section must focus on low-income 
9.18 	communities, young adults from families with 
9.19 	a history of intergenerational poverty, and 
9.20 	communities of color. Of this amount, up to 
9.21 	five percent is for administration and 
9.22 	monitoring of the program.
9.23 	(i) $1,000,000 each year is for the high-wage, 
9.24 	high-demand, nontraditional jobs grant 
9.25 	program under Minnesota Statutes, section 
9.26 	116L.99. Of this amount, up to five percent is 
9.27 	for administration and monitoring of the 
9.28 	program.
9.29 	(j) $450,000 each year is from the workforce 
9.30 	development fund for a grant to Minnesota 
9.31 	Diversified Industries, Inc., to provide 
9.32 	progressive development and employment 
9.33 	opportunities for people with disabilities.
9.34 	(k) $500,000 each year is from the workforce 
9.35 	development fund for the Opportunities 
10.1 	Industrialization Center programs. This 
10.2 	appropriation shall be divided equally among 
10.3 	the eligible centers.
10.4 	(l) $750,000 each year is from the workforce 
10.5 	development fund for a grant to the Minnesota 
10.6 	Alliance of Boys and Girls Clubs to administer 
10.7 	a statewide project of youth jobs skills 
10.8 	development. This project, which may have 
10.9 	career guidance components, including health 
10.10 	and life skills, is to encourage, train, and assist 
10.11 	youth in job-seeking skills, workplace 
10.12 	orientation, and job-site knowledge through 
10.13 	coaching. This grant requires a 25 percent 
10.14 	match from nonstate resources.
10.15 	(m) $250,000 each year is for a grant to 
10.16 	YWCA St. Paul to provide job training 
10.17 	services and workforce development programs 
10.18 	and services, including job skills training and 
10.19 	counseling.
10.20 	(n) $375,000 each year is for a grant to the 
10.21 	YWCA of Minneapolis to provide 
10.22 	economically challenged individuals the jobs 
10.23 	skills training, career counseling, and job 
10.24 	placement assistance necessary to secure a 
10.25 	child development associate credential and to 
10.26 	have a career path in early childhood 
10.27 	education.
10.28 	(o) $1,000,000 each year is for a grant to 
10.29 	EMERGE Community Development, in 
10.30 	collaboration with community partners, for 
10.31 	services targeting Minnesota communities 
10.32 	with the highest concentrations of African and 
10.33 	African-American joblessness, based on the 
10.34 	most recent census tract data, to provide 
10.35 	employment readiness training, credentialed 
11.1 	training placement, job placement and 
11.2 	retention services, supportive services for 
11.3 	hard-to-employ individuals, and a general 
11.4 	education development fast track and adult 
11.5 	diploma program.
11.6 	(p) $1,000,000 each year is for a grant to the 
11.7 	Minneapolis Foundation for a strategic 
11.8 	intervention program designed to target and 
11.9 	connect program participants to meaningful, 
11.10 	sustainable living-wage employment.
11.11 	(q) $600,000 each year is for performance 
11.12 	grants under Minnesota Statutes, section 
11.13 	116J.8747, to Twin Cities R!SE to provide 
11.14 	training to hard-to-train individuals.
11.15 	(r) $750,000 each year is for a grant to Latino 
11.16 	Communities United in Service (CLUES) to 
11.17 	expand culturally tailored programs that 
11.18 	address employment and education skill gaps 
11.19 	for working parents and underserved youth by 
11.20 	providing new job skills training to stimulate 
11.21 	higher wages for low-income people, family 
11.22 	support systems designed to reduce 
11.23 	intergenerational poverty, and youth 
11.24 	programming to promote educational 
11.25 	advancement and career pathways. At least 
11.26 	50 percent of this amount must be used for 
11.27 	programming targeted at greater Minnesota.
11.28 	(s) $250,000 each year is for transfer to the 
11.29 	Department of Education for a grant to the 
11.30 	American Indian Opportunities and 
11.31 	Industrialization Center, in collaboration with 
11.32 	the Northwest Indian Community 
11.33 	Development Center, to reduce academic 
11.34 	disparities for American Indian students and 
12.1 	adults. The grant funds may be used to 
12.2 	provide:
12.3 	(1) student tutoring and testing support 
12.4 	services;
12.5 	(2) training in information technology;
12.6 	(3) assistance in obtaining a GED;
12.7 	(4) remedial training leading to enrollment in 
12.8 	a postsecondary higher education institution;
12.9 	(5) real-time work experience in information 
12.10 	technology fields; and
12.11 	(6) contextualized adult basic education.
12.12 	After notification to the legislature, the 
12.13 	commissioner may transfer this appropriation 
12.14 	to the commissioner of education.
12.15 	(t) $600,000 each year is for a grant to Ujamaa 
12.16 	Place for job training, employment 
12.17 	preparation, internships, education, training 
12.18 	in the construction trades, housing, and 
12.19 	organizational capacity-building.
12.20 	(u) $500,000 each year from the workforce 
12.21 	development fund is for a grant to Resource, 
12.22 	Inc. to provide low-income individuals career 
12.23 	education and job skills training that are fully 
12.24 	integrated with chemical and mental health 
12.25 	services.
12.26 	(v) $1,100,000 each year from the workforce 
12.27 	development fund is for a grant to the 
12.28 	Minnesota High Tech Association to support 
12.29 	SciTechsperience, a program that supports 
12.30 	science, technology, engineering, and math 
12.31 	(STEM) internship opportunities for two- and 
12.32 	four-year college students in their field of 
12.33 	study. The internship opportunities must match 
13.1 	students with paid internships within STEM 
13.2 	disciplines at small, for-profit companies 
13.3 	located in the seven-county metropolitan area, 
13.4 	having fewer than 150 employees; or at small 
13.5 	or medium for-profit companies located 
13.6 	outside of the seven-county metropolitan area, 
13.7 	having fewer than 250 employees. At least 
13.8 	200 students must be matched in the first year 
13.9 	and at least 250 students must be matched in 
13.10 	the second year. Selected hiring companies 
13.11 	shall receive from the grant 50 percent of the 
13.12 	wages paid to the intern, capped at $2,500 per 
13.13 	intern. The program must work toward 
13.14 	increasing the participation among women or 
13.15 	individuals with barriers to employment.
13.16 	(w) $1,000,000 each year is for a grant to the 
13.17 	Construction Careers Foundation for the 
13.18 	construction career pathway initiative to 
13.19 	provide year-round educational and 
13.20 	experiential learning opportunities for teens 
13.21 	and young adults under the age of 21 that lead 
13.22 	to careers in the construction industry. Grant 
13.23 	funds must be used to:
13.24 	(1) increase construction industry exposure 
13.25 	activities for middle school and high school 
13.26 	youth, parents, and counselors to reach a more 
13.27 	diverse demographic and broader statewide 
13.28 	audience. This requirement includes, but is 
13.29 	not limited to, an expansion of programs to 
13.30 	provide experience in different crafts to youth 
13.31 	and young adults throughout the state;
13.32 	(2) increase the number of high schools in 
13.33 	Minnesota offering construction classes during 
13.34 	the academic year that utilize a multicraft 
13.35 	curriculum;
14.1 	(3) increase the number of summer internship 
14.2 	opportunities;
14.3 	(4) enhance activities to support graduating 
14.4 	seniors in their efforts to obtain employment 
14.5 	in the construction industry;
14.6 	(5) increase the number of young adults 
14.7 	employed in the construction industry and 
14.8 	ensure that they reflect Minnesota's diverse 
14.9 	workforce; and
14.10 	(6) enhance an industrywide marketing 
14.11 	campaign targeted to youth and young adults 
14.12 	about the depth and breadth of careers within 
14.13 	the construction industry.
14.14 	Programs and services supported by grant 
14.15 	funds must give priority to individuals and 
14.16 	groups that are economically disadvantaged 
14.17 	or historically underrepresented in the 
14.18 	construction industry, including but not limited 
14.19 	to women, veterans, and members of minority 
14.20 	and immigrant groups.
14.21 	(x) $215,000 each year is from the workforce 
14.22 	development fund for a grant to Big Brothers, 
14.23 	Big Sisters of the Greater Twin Cities for 
14.24 	workforce readiness, employment exploration, 
14.25 	and skills development for youth ages 12 to 
14.26 	21. The grant must serve youth in the Twin 
14.27 	Cities, Central Minnesota and Southern 
14.28 	Minnesota Big Brothers, Big Sisters chapters.

14.29 | Subd. 6.Vocational Rehabilitation | | | |

14.30 | Appropriations by Fund
14.31 | General | 25,611,000 | 25,611,000
14.32

14.33

Workforce 
Development

7,830,000

7,830,000

15.1 	(a) $14,300,000 each year is for the state's 
15.2 	vocational rehabilitation program under 
15.3 	Minnesota Statutes, chapter 268A. The base 
15.4 	for this program is $10,800,000 in fiscal year 
15.5 	2020 and $10,800,000 in fiscal year 2021.
15.6 	(b) $2,761,000 each year is from the general 
15.7 	fund for grants to centers for independent 
15.8 	living under Minnesota Statutes, section 
15.9 	268A.11.
15.10 	(c) $6,830,000 each year from the workforce 
15.11 	development fund and $5,995,000 each year 
15.12 	from the general fund are for extended 
15.13 	employment services for persons with severe 
15.14 	disabilities under Minnesota Statutes, section 
15.15 	268A.15.
15.16 	(d) $1,000,000 each year is from the 
15.17 	workforce development fund for grants under 
15.18 	Minnesota Statutes, section 268A.16, for 
15.19 	employment services for persons, including 
15.20 	transition-aged youth, who are deaf, deafblind, 
15.21 	or hard-of-hearing. If the amount in the first 
15.22 	year is insufficient, the amount in the second 
15.23 	year is available in the first year. Of this 
15.24 	amount, up to five percent is for administration 
15.25 	and monitoring of the program.
15.26 	(e) $2,555,000 each year is for grants to 
15.27 	programs that provide employment support 
15.28 	services to persons with mental illness under 
15.29 	Minnesota Statutes, sections 268A.13 and 
15.30 	268A.14.

15.31 | Subd. 7.Services for the Blind | | 6,425,000 | | 6,425,000
15.32 	$500,000 each year is to provide services for 
15.33 	senior citizens who are becoming blind. At 
15.34 	least half of the funds appropriated must be 
16.1 	used to provide training services for seniors 
16.2 	who are becoming blind. Training services 
16.3 	must provide independent living skills to 
16.4 	seniors who are becoming blind to allow them 
16.5 	to continue to live independently in their 
16.6 	homes.

16.7 | Subd. 8.General Support Services | | | |

16.8 | Appropriations by Fund
16.9 | General | 4,829,000 | 5,308,000
16.10

16.11

Workforce 
Development

35,000

48,000

16.12 	(a) $250,000 each year is for the publication, 
16.13 	dissemination, and use of labor market 
16.14 	information under Minnesota Statutes, section 
16.15 	116J.4011.
16.16 	(b) $150,000 each year is for the cost-of-living 
16.17 	study required under Minnesota Statutes, 
16.18 	section 116J.013.
16.19 	(c) $1,269,000 each year is for transfer to the 
16.20 	Minnesota Housing Finance Agency for 
16.21 	operating the Olmstead Implementation 
16.22 	Office.
16.23 	(d) $1,000,000 each year is for the 
16.24 	capacity-building grant program to assist 
16.25 	nonprofit organizations offering or seeking to 
16.26 	offer workforce development and economic 
16.27 	development programming. Of this amount, 
16.28 	up to five percent is for administration and 
16.29 	monitoring of the program.

16.30 | Sec. 3. HOUSING FINANCE AGENCY | | | |

16.31 | Subdivision 1.Total Appropriation | $ | 60,798,000 | $ | 50,798,000
16.32 	The amounts that may be spent for each 
16.33 	purpose are specified in the following 
16.34 	subdivisions.
17.1 	Unless otherwise specified, this appropriation 
17.2 	is for transfer to the housing development fund 
17.3 	for the programs specified in this section. 
17.4 	Except as otherwise indicated, this transfer is 
17.5 	part of the agency's permanent budget base.

17.6 | Subd. 2.Challenge Program | | 12,925,000 | | 12,925,000
17.7 	This appropriation is for the economic 
17.8 	development and housing challenge program 
17.9 	under Minnesota Statutes, section 462A.33. 
17.10 	Of this amount, $1,208,000 each year shall be 
17.11 	made available during the first 11 months of 
17.12 	the fiscal year exclusively for housing projects 
17.13 	for American Indians. Any funds not 
17.14 	committed to housing projects for American 
17.15 	Indians in the first 11 months of the fiscal year 
17.16 	shall be available for any eligible activity 
17.17 	under Minnesota Statutes, section 462A.33.

17.18 | Subd. 3.Housing Trust Fund | | 17,646,000 | | 11,646,000
17.19 	This appropriation is for deposit in the housing 
17.20 	trust fund account created under Minnesota 
17.21 	Statutes, section 462A.201, and may be used 
17.22 	for the purposes provided in that section. Of 
17.23 	this amount, $6,000,000 in fiscal year 2018 is 
17.24 	a onetime appropriation for rental assistance 
17.25 	for homeless or highly mobile families with 
17.26 	children eligible for enrollment in a 
17.27 	prekindergarten through grade 12 academic 
17.28 	program.

17.29 | Subd. 4.Rental Assistance for Mentally Ill | | 4,088,000 | | 4,088,000
17.30 	This appropriation is for the rental housing 
17.31 	assistance program for persons with a mental 
17.32 	illness or families with an adult member with 
17.33 	a mental illness under Minnesota Statutes, 
17.34 	section 462A.2097. Among comparable 
17.35 	proposals, the agency shall prioritize those 
18.1 	proposals that target, in part, eligible persons 
18.2 	who desire to move to more integrated, 
18.3 	community-based settings.

18.4 | Subd. 5.Family Homeless Prevention | | 10,519,000 | | 8,519,000
18.5 	This appropriation is for the family homeless 
18.6 	prevention and assistance programs under 
18.7 	Minnesota Statutes, section 462A.204.
18.8 	Of this amount, $2,000,000 in fiscal year 2018 
18.9 	is a onetime appropriation to provide 
18.10 	assistance to homeless or highly mobile 
18.11 	families with children eligible for enrollment 
18.12 	in a prekindergarten through grade 12 
18.13 	academic program. Grantees receiving funding 
18.14 	under this paragraph are not required to have 
18.15 	an advisory committee as described in section 
18.16 	462A.204, subdivision 6.

18.17 | Subd. 6.Home Ownership Assistance Fund | | 2,385,000 | | 885,000
18.18 	This appropriation is for the home ownership 
18.19 	assistance program under Minnesota Statutes, 
18.20 	section 462A.21, subdivision 8. The agency 
18.21 	shall continue to strengthen its efforts to 
18.22 	address the disparity gap in the 
18.23 	homeownership rate between white 
18.24 	households and indigenous American Indians 
18.25 	and communities of color.

18.26 | Subd. 7.Affordable Rental Investment Fund | | 4,218,000 | | 4,218,000
18.27 	(a) This appropriation is for the affordable 
18.28 	rental investment fund program under 
18.29 	Minnesota Statutes, section 462A.21, 
18.30 	subdivision 8b, to finance the acquisition, 
18.31 	rehabilitation, and debt restructuring of 
18.32 	federally assisted rental property and for 
18.33 	making equity take-out loans under Minnesota 
18.34 	Statutes, section 462A.05, subdivision 39.
19.1 	(b) The owner of federally assisted rental 
19.2 	property must agree to participate in the 
19.3 	applicable federally assisted housing program 
19.4 	and to extend any existing low-income 
19.5 	affordability restrictions on the housing for 
19.6 	the maximum term permitted. The owner must 
19.7 	also enter into an agreement that gives local 
19.8 	units of government, housing and 
19.9 	redevelopment authorities, and nonprofit 
19.10 	housing organizations the right of first refusal 
19.11 	if the rental property is offered for sale. 
19.12 	Priority must be given among comparable 
19.13 	federally assisted rental properties to 
19.14 	properties with the longest remaining term 
19.15 	under an agreement for federal assistance. 
19.16 	Priority must also be given among comparable 
19.17 	rental housing developments to developments 
19.18 	that are or will be owned by local government 
19.19 	units, a housing and redevelopment authority, 
19.20 	or a nonprofit housing organization.
19.21 	(c) The appropriation also may be used to 
19.22 	finance the acquisition, rehabilitation, and debt 
19.23 	restructuring of existing supportive housing 
19.24 	properties. For purposes of this paragraph, 
19.25 	"supportive housing" means affordable rental 
19.26 	housing with links to services necessary for 
19.27 	individuals, youth, and families with children 
19.28 	to maintain housing stability.

19.29 | Subd. 8.Housing Rehabilitation | | 6,515,000 | | 6,515,000
19.30 	This appropriation is for the housing 
19.31 	rehabilitation program under Minnesota 
19.32 	Statutes, section 462A.05, subdivision 14. Of 
19.33 	this amount, $2,772,000 each year is for the 
19.34 	rehabilitation of owner-occupied housing and 
19.35 	$3,743,000 each year is for the rehabilitation 
20.1 	of eligible rental housing. In administering a 
20.2 	rehabilitation program for rental housing, the 
20.3 	agency may apply the processes and priorities 
20.4 	adopted for administration of the economic 
20.5 	development and housing challenge program 
20.6 	under Minnesota Statutes, section 462A.33.

20.7

20.8

Subd. 9.Homeownership Education, Counseling, 
and Training

857,000

857,000

20.9 	This appropriation is for the homeownership 
20.10 	education, counseling, and training program 
20.11 	under Minnesota Statutes, section 462A.209.

20.12 | Subd. 10.Capacity-Building Grants | | 1,145,000 | | 645,000
20.13 	(a) This appropriation is for nonprofit 
20.14 	capacity-building grants under Minnesota 
20.15 	Statutes, section 462A.21, subdivision 3b. Of 
20.16 	this amount, $125,000 each year is for support 
20.17 	of the Homeless Management Information 
20.18 	System (HMIS).
20.19 	(b) $500,000 in fiscal year 2018 is a onetime 
20.20 	appropriation for competitive grants to 
20.21 	nonprofit housing organizations, housing and 
20.22 	redevelopment authorities, or other political 
20.23 	subdivisions to provide intensive financial 
20.24 	education and coaching services to individuals 
20.25 	or families who have the goal of 
20.26 	homeownership. Financial education and 
20.27 	coaching services include but are not limited 
20.28 	to asset building, development of spending 
20.29 	plans, credit report education, repair and 
20.30 	rebuilding, consumer protection training, and 
20.31 	debt reduction. Priority must be given to 
20.32 	organizations that have experience serving 
20.33 	underserved populations.

20.34 | Subd. 11.Direct Appropriation | | 500,000 | | 500,000
21.1 	This appropriation is for a grant to Build 
21.2 	Wealth Minnesota to provide a family 
21.3 	stabilization plan program including program 
21.4 	outreach, financial literacy education, and 
21.5 	budget and debt counseling.

21.6 | Sec. 4. EXPLORE MINNESOTA TOURISM | $ | 17,910,000 | $ | 14,360,000
21.7 	To develop maximum private sector 
21.8 	involvement in tourism, $500,000 in fiscal 
21.9 	year 2018 and $500,000 in fiscal year 2019 
21.10 	must be matched by Explore Minnesota 
21.11 	Tourism from nonstate sources. Each $1 of 
21.12 	state incentive must be matched with $6 of 
21.13 	private sector funding. Cash match is defined 
21.14 	as revenue to the state or documented cash 
21.15 	expenditures directly expended to support 
21.16 	Explore Minnesota Tourism programs. Up to 
21.17 	one-half of the private sector contribution may 
21.18 	be in-kind or soft match. The incentive in 
21.19 	fiscal year 2018 shall be based on fiscal year 
21.20 	2017 private sector contributions. The 
21.21 	incentive in fiscal year 2019 shall be based on 
21.22 	fiscal year 2018 private sector contributions. 
21.23 	This incentive is ongoing.
21.24 	Funding for the marketing grants is available 
21.25 	either year of the biennium. Unexpended grant 
21.26 	funds from the first year are available in the 
21.27 	second year.
21.28 	$600,000 in fiscal year 2018 is for the major 
21.29 	events grant program. This appropriation is 
21.30 	available until June 30, 2021.
21.31 	$100,000 each year is for a grant to the 
21.32 	Northern Lights International Music Festival.

22.1

22.2

Sec. 5. DEPARTMENT OF LABOR AND 
INDUSTRY

22.3 | Subdivision 1.Total Appropriation | $ | 30,125,000 | $ | 28,619,000

22.4 | Appropriations by Fund
22.5 | | 2018 | 2019
22.6 | General | 3,081,000 | 1,866,000
22.7

22.8

Workers' 
Compensation

24,975,000

24,975,000

22.922.10

Workforce 
Development

2,069,000

1,778,000

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

22.14 | Subd. 2.Workers' Compensation | | 14,782,000 | | 14,782,000
22.15 	(a) This appropriation is from the workers' 
22.16 	compensation fund.
22.17 	(b)(1) $3,000,000 each year is for workers' 
22.18 	compensation system upgrades. This 
22.19 	appropriation is available until June 30, 2021. 
22.20 	The base appropriation for fiscal year 2020 
22.21 	and beyond is $0.
22.22 	(2) This appropriation includes funds for 
22.23 	information technology project services and 
22.24 	support subject to the provisions of Minnesota 
22.25 	Statutes, section 16E.0466. Any ongoing 
22.26 	information technology costs must be 
22.27 	incorporated into the service level agreement 
22.28 	and must be paid to the Office of MN.IT 
22.29 	Services by the commissioner of labor and 
22.30 	industry under the rates and mechanism 
22.31 	specified in that agreement.

22.32 | Subd. 3.Labor Standards and Apprenticeship | | | |

22.33 | Appropriations by Fund
22.34 | General | 3,081,000 | 1,866,000
22.35

22.36

Workforce 
Development

1,569,000

1,278,000

23.1 	(a) $1,781,000 in fiscal year 2018 and 
23.2 	$1,796,000 in fiscal year 2019 are from the 
23.3 	general fund for the labor standards and 
23.4 	apprenticeship program.
23.5 	(b) $1,300,000 in fiscal year 2018 and $70,000 
23.6 	in fiscal year 2019 are from the general fund 
23.7 	for the labor standards technology 
23.8 	modernization project. The base for this 
23.9 	project is $70,000, subject to Minnesota 
23.10 	Statutes, section 16E.0466. Ongoing 
23.11 	information technology costs must be 
23.12 	incorporated into the service level agreement 
23.13 	and must be paid to the Office of MN.IT 
23.14 	Services by the commissioner of labor and 
23.15 	industry under the rates and mechanism 
23.16 	specified in that agreement.
23.17 	(c) $1,119,000 in fiscal year 2018 and 
23.18 	$1,128,000 in fiscal year 2019 are from the 
23.19 	workforce development fund for the 
23.20 	apprenticeship program under Minnesota 
23.21 	Statutes, chapter 178.
23.22 	(d) $150,000 each year from the workforce 
23.23 	development fund is for prevailing wage 
23.24 	enforcement.
23.25 	(e) $300,000 in fiscal year 2018 is from the 
23.26 	workforce development fund for labor 
23.27 	education and advancement program grants 
23.28 	under Minnesota Statutes, section 178.11, to 
23.29 	expand and promote registered apprenticeship 
23.30 	training for minorities and women. The base 
23.31 	for fiscal year 2020 is $300,000.

23.32 | Subd. 4.Workplace Safety | | 4,154,000 | | 4,154,000
23.33 	This appropriation is from the workers' 
23.34 	compensation fund.

24.1 | Subd. 5.General Support | | | |

24.2 | Appropriations by Fund
24.3

24.4

Workers' 
Compensation

6,039,000

6,039,000

24.5

24.6

Workforce 
Development

500,000

500,000

24.7 	$500,000 each year is from the workforce 
24.8 	development fund for the PIPELINE program.

24.9 | Sec. 6. BUREAU OF MEDIATION SERVICES | $ | 2,577,000 | $ | 2,654,000
24.10 	(a) $68,000 each year is for grants to area 
24.11 	labor management committees. Grants may 
24.12 	be awarded for a 12-month period beginning 
24.13 	July 1 each year. Any unencumbered balance 
24.14 	remaining at the end of the first year does not 
24.15 	cancel but is available for the second year.
24.16 	(b) $644,000 each year is for the Office of 
24.17 	Collaboration and Dispute Resolution under 
24.18 	Minnesota Statutes, section 179.90. Of this 
24.19 	amount, $410,000 each year is for grants under 
24.20 	Minnesota Statutes, section 179.91, and 
24.21 	$234,000 each year is for intergovernmental 
24.22 	and public policy collaboration and operation 
24.23 	of the office.

24.24

24.25

Sec. 7. PUBLIC EMPLOYMENT RELATIONS 
BOARD

$

525,000

$

525,000

24.26

24.27

Sec. 8. WORKERS' COMPENSATION COURT 
OF APPEALS

$

2,034,000

$

2,033,000

24.28 	This appropriation is from the workers' 
24.29 	compensation fund.

24.30 | Sec. 9. DEPARTMENT OF COMMERCE | | | |

24.31 | Subdivision 1.Total Appropriation | $ | 27,544,000 | $ | 28,260,000

24.32 | Appropriations by Fund
24.33 | | 2018 | 2019
25.1 | General | 24,489,000 | 25,196,000
25.2 | Special Revenue | 1,240,000 | 1,240,000
25.3 | Petroleum Tank | 1,064,000 | 1,073,000
25.4

25.5

Workers' 
Compensation

751,000

751,000

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

25.9 | Subd. 2.Financial Institutions | | -0- | | -0-

25.10

25.11

Subd. 3.Petroleum Tank Release Compensation 
Board

1,064,000

1,073,000

25.12 	This appropriation is from the petroleum tank 
25.13 	fund.

25.14 | Subd. 4.Administrative Services | | 8,741,000 | | 9,448,000
25.15 	$100,000 each year is for the support of 
25.16 	broadband development.

25.17 | Subd. 5.Telecommunications | | | |

25.18 | Appropriations by Fund
25.19 | General | 1,009,000 | 1,009,000
25.20 | Special Revenue | 1,240,000 | 1,240,000
25.21 	$1,240,000 each year is from the 
25.22 	telecommunication access fund for the 
25.23 	following transfers.
25.24 	(1) $800,000 each year is to the commissioner 
25.25 	of human services to supplement the ongoing 
25.26 	operational expenses of the Commission of 
25.27 	Deaf, DeafBlind, and Hard-of-Hearing 
25.28 	Minnesotans;
25.29 	(2) $290,000 each year is to the chief 
25.30 	information officer for the purpose of 
25.31 	coordinating technology accessibility and 
25.32 	usability;
26.1 	(3) $100,000 each year is to the Legislative 
26.2 	Coordinating Commission for captioning of 
26.3 	legislative coverage; and
26.4 	(4) $50,000 each year is to the Office of 
26.5 	MN.IT Services for a consolidated access fund 
26.6 	to provide grants to other state agencies related 
26.7 	to accessibility of their Web-based services.

26.8 | Subd. 6.Enforcement | | | |

26.9 | Appropriations by Fund
26.10 | General | 5,386,000 | 5,386,000
26.11

26.12

Workers' 
Compensation

198,000

198,000

26.13 | Subd. 7.Energy Resources | | 4,937,000 | | 4,937,000
26.14 	$150,000 each year is for grants to providers 
26.15 	of low-income weatherization services to 
26.16 	install renewable energy equipment in 
26.17 	households that are eligible for weatherization 
26.18 	assistance under Minnesota's weatherization 
26.19 	assistance program state plan under Minnesota 
26.20 	Statutes, section 216C.264.
26.21 	$260,000 each year is to remediate vermiculate 
26.22 	insulation from households that are eligible 
26.23 	for weatherization assistance under 
26.24 	Minnesota's weatherization assistance program 
26.25 	state plan under Minnesota Statutes, section 
26.26 	216C.264. Remediation must be done in 
26.27 	conjunction with federal weatherization 
26.28 	assistance program services.

26.29 | Subd. 8.Insurance | | | |

26.30 | Appropriations by Fund
26.31 | General | 4,416,000 | 4,416,000
26.32

26.33

Workers' 
Compensation

553,000

553,000

26.34 | Sec. 10. PUBLIC UTILITIES COMMISSION | $ | 7,465,000 | $ | 7,465,000

27.1 	Sec. 11. Laws 2015, First Special Session chapter 1, article 1, section 4, as amended by 
27.2 	Laws 2016, chapter 189, article 7, section 43, is amended to read:

27.3 | Sec. 4. EXPLORE MINNESOTA TOURISM | $ | 14,118,000 | $ | 14,248,000
27.4 	(a) To develop maximum private sector 
27.5 	involvement in tourism, $500,000 in fiscal 
27.6 	year 2016 and $500,000 in fiscal year 2017 
27.7 	must be matched by Explore Minnesota 
27.8 	Tourism from nonstate sources. Each $1 of 
27.9 	state incentive must be matched with $6 of 
27.10 	private sector funding. Cash match is defined 
27.11 	as revenue to the state or documented cash 
27.12 	expenditures directly expended to support 
27.13 	Explore Minnesota Tourism programs. Up to 
27.14 	one-half of the private sector contribution may 
27.15 	be in-kind or soft match. The incentive in 
27.16 	fiscal year 2016 shall be based on fiscal year 
27.17 	2015 private sector contributions. The 
27.18 	incentive in fiscal year 2017 shall be based on 
27.19 	fiscal year 2016 private sector contributions. 
27.20 	This incentive is ongoing. Of this amount, 
27.21 	$100,000 is for a grant to the Northern Lights 
27.22 	International Music festival.
27.23 	(b) Funding for the marketing grants is 
27.24 	available either year of the biennium. 
27.25 	Unexpended ~~grant~~ funds ~~from the first year~~ 
27.26 	~~are available in the second year~~ up to $250,000 
27.27 	are available until June 30, 2019.
27.28 	(c) $30,000 in fiscal year 2016 is for Mille 
27.29 	Lacs Lake tourism promotion. This is a 
27.30 	onetime appropriation.

27.31 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2015.

27.32 	Sec. 12. Laws 2015, First Special Session chapter 1, article 1, section 5, subdivision 2, is 
27.33 	amended to read:

27.34 | Subd. 2.Workers' Compensation | | 15,226,000 | | 17,782,000
28.1 	This appropriation is from the workers' 
28.2 	compensation fund.
28.3 	$4,000,000 in fiscal year 2016 and $6,000,000 
28.4 	in fiscal year 2017 are for workers' 
28.5 	compensation system upgrades and are 
28.6 	available through June 30, 2021. The base 
28.7 	appropriation for this purpose is $3,000,000 
28.8 	in fiscal year 2018 and $3,000,000 in fiscal 
28.9 	year 2019. The base appropriation for fiscal 
28.10 	year 2020 and beyond is zero.
28.11 	This appropriation includes funds for 
28.12 	information technology project services and 
28.13 	support subject to the provisions of Minnesota 
28.14 	Statutes, section 16E.0466. Any ongoing 
28.15 	information technology costs will be 
28.16 	incorporated into the service level agreement 
28.17 	and will be paid to the Office of MN.IT 
28.18 	Services by the commissioner of labor and 
28.19 	industry under the rates and mechanism 
28.20 	specified in that agreement.

28.21 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2015.

28.22 	ARTICLE 2
28.23 	COMMERCE

28.24 	Section 1. Minnesota Statutes 2016, section 16C.144, is amended by adding a subdivision 
28.25 	to read:
28.26 		Subd. 7.Funding. (a) The commissioner of commerce is authorized to set and fix a fee 
28.27 	to fund the program under this section. The fee shall be paid as a percentage of the total 
28.28 	investment cost for a project that has received a fully executed work order contract under 
28.29 	the conditions imposed by this section. The fee percentage shall be adjusted on the basis of 
28.30 	the total value of the contracts approved relative to the funding level needed to operate the 
28.31 	program.
28.32 	(b) Fees collected under this subdivision must be deposited in the guaranteed energy 
28.33 	savings program account under subdivision 8.

29.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

29.2 	Sec. 2. Minnesota Statutes 2016, section 16C.144, is amended by adding a subdivision to 
29.3 	read:
29.4 		Subd. 8.Guaranteed energy savings program account; appropriation. (a) A 
29.5 	guaranteed energy savings program account is created as a separate account in the special 
29.6 	revenue fund. The account consists of funds donated, allocated, transferred, or otherwise 
29.7 	provided to the account, including fees collected and deposited under subdivision 7. Earnings, 
29.8 	including interest, dividends, and any other earnings arising from account assets, must be 
29.9 	credited to the account.
29.10 	(b) Funds in the account are annually appropriated to the commissioner of commerce 
29.11 	for activities under this section.

29.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

29.13 	Sec. 3. Minnesota Statutes 2016, section 45.0135, subdivision 7, is amended to read:
29.14 		Subd. 7.Assessment. Each insurer authorized to sell insurance in the state of Minnesota, 
29.15 	including surplus lines carriers, and having Minnesota earned premium the previous calendar 
29.16 	year shall remit an assessment to the commissioner for deposit in the insurance fraud 
29.17 	prevention account on or before June 1 of each year. The amount of the assessment shall 
29.18 	be based on the insurer's total assets and on the insurer's total written Minnesota premium, 
29.19 	for the preceding fiscal year, as reported pursuant to section 60A.13. The assessment is 
29.20 	calculated to be an amount up to the following:

29.21 | | Total Assets | Assessment
29.2329.22

Less than $100,000,000

$

~~200~~
375

29.2529.24

$100,000,000 to $1,000,000,000

$

~~750~~
1,375

29.2729.26

Over $1,000,000,000

$

~~2,000~~
3,625

29.28 | | Minnesota Written Premium | Assessment
29.3029.29

Less than $10,000,000

$

~~200~~
375

29.3229.31

$10,000,000 to $100,000,000

$

~~750~~
1,375

29.3429.33

Over $100,000,000

$

~~2,000~~
3,625

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

30.4 	Sec. 4. Minnesota Statutes 2016, section 46.131, subdivision 7, is amended to read:
30.5 		Subd. 7.Fiscal year assessments. Such assessments shall be levied on July 1, 1965, 
30.6 	and ~~at~~ prior to the beginning of each fiscal period beginning July 1 and ending June 30 
30.7 	thereafter, and shall be based on the total estimated expense as herein referred to during 
30.8 	such period. Assessment revenue will be remitted to the commissioner for deposit in the 
30.9 	financial institutions account on or before July 1 of each year.

30.10 	Sec. 5. Minnesota Statutes 2016, section 46.131, is amended by adding a subdivision to 
30.11 	read:
30.12 		Subd. 11.Financial institutions account; appropriation. (a) The financial institutions 
30.13 	account is created as a separate account in the special revenue fund. The account consists 
30.14 	of funds received from assessments under subdivision 7 and examination fees under 
30.15 	subdivision 8. Earnings, including interest, dividends, and any other earnings arising from 
30.16 	account assets, must be credited to the account.
30.17 	(b) Funds in the account are annually appropriated to the commissioner of commerce 
30.18 	for activities under this section.

30.19 	EFFECTIVE DATE. This section is effective July 1, 2017.

30.20 	Sec. 6. Minnesota Statutes 2016, section 47.59, subdivision 2, is amended to read:
30.21 		Subd. 2.Application. Extensions of credit or purchases of extensions of credit by 
30.22 	financial institutions under sections 47.20, 47.21, 47.201, 47.204, 47.58, ~~47.60,~~48.153, 
30.23 	48.185, 48.195, 59A.01 to 59A.15, 334.01, 334.011, 334.012, 334.022, 334.06, and 334.061
30.24 	to 334.19 may, but need not, be made according to those sections in lieu of the authority 
30.25 	set forth in this section to the extent those sections authorize the financial institution to make 
30.26 	extensions of credit or purchase extensions of credit under those sections. If a financial 
30.27 	institution elects to make an extension of credit or to purchase an extension of credit under 
30.28 	those other sections, the extension of credit or the purchase of an extension of credit is 
30.29 	subject to those sections and not this section, except this subdivision, and except as expressly 
30.30 	provided in those sections. A financial institution may also charge an organization a rate of 
30.31 	interest and any charges agreed to by the organization and may calculate and collect finance 
30.32 	and other charges in any manner agreed to by that organization. Except for extensions of 
31.1 	credit a financial institution elects to make under section 334.01, 334.011, 334.012, 334.022, 
31.2 	334.06, or 334.061 to 334.19, chapter 334 does not apply to extensions of credit made 
31.3 	according to this section or the sections listed in this subdivision. This subdivision does not 
31.4 	authorize a financial institution to extend credit or purchase an extension of credit under 
31.5 	any of the sections listed in this subdivision if the financial institution is not authorized to 
31.6 	do so under those sections. A financial institution extending credit under any of the sections 
31.7 	listed in this subdivision shall specify in the promissory note, contract, or other loan document 
31.8 	the section under which the extension of credit is made.

31.9 	Sec. 7. Minnesota Statutes 2016, section 47.60, subdivision 1, is amended to read:
31.10 		Subdivision 1.Definitions. For purposes of this section, the terms defined have the 
31.11 	meanings given them:
31.12 	(a) "Consumer small loan" is a loan transaction in which cash is advanced to a borrower 
31.13 	for the borrower's own personal, family, or household purpose. A consumer small loan is 
31.14 	a short-term, unsecured loan to be repaid in a single installment. The cash advance of a 
31.15 	consumer small loan is equal to or less than $350. A consumer small loan includes an 
31.16 	indebtedness evidenced by but not limited to a promissory note or agreement to defer the 
31.17 	presentation of a personal check for a fee.
31.18 	(b) "Consumer small loan lender" is a financial institution as defined in section 47.59
31.19 	or a business entity registered with the commissioner and engaged in the business of making 
31.20 	consumer small loans.
31.21 	(c) "Closed" or "close" means that one of the following has occurred in connection with 
31.22 	a consumer small loan or short-term lender concerning the customer's payment instrument:
31.23 	(1) the payment instrument is redeemed by the customer by payment to the registrant 
31.24 	or licensee of the face amount of the payment instrument in cash;
31.25 	(2) the payment instrument is exchanged by the registrant or licensee for a cashier's 
31.26 	check or cash from the customer's financial institution;
31.27 	(3) the payment instrument is deposited by the registrant or licensee, and the registrant 
31.28 	or licensee has evidence that the person has satisfied the obligation;
31.29 	(4) the payment instrument is collected by the registrant or licensee or its agent through 
31.30 	any civil remedy available under the laws of this state; or
31.31 	(5) any other reason that the commissioner may deem to be proper under this section.

32.1 	Sec. 8. Minnesota Statutes 2016, section 47.60, subdivision 2, is amended to read:
32.2 		Subd. 2.Authorization, terms, conditions, and prohibitions. (a) In lieu of the interest, 
32.3 	finance charges, or fees in any other law, a consumer small loan lender may charge the 
32.4 	following:
32.5 	(1) on any amount up to and including $50, a charge of $5.50 may be added;
32.6 	(2) on amounts in excess of $50, but not more than $100, a charge may be added equal 
32.7 	to ten percent of the loan proceeds plus a $5 administrative fee;
32.8 	(3) on amounts in excess of $100, but not more than $250, a charge may be added equal 
32.9 	to seven percent of the loan proceeds with a minimum of $10 plus a $5 administrative fee;
32.10 	(4) for amounts in excess of $250 and not greater than the maximum in subdivision 1, 
32.11 	paragraph (a), a charge may be added equal to six percent of the loan proceeds with a 
32.12 	minimum of $17.50 plus a $5 administrative fee.
32.13 	(b) The term of a loan made under this section shall be for no more than 30 calendar 
32.14 	days.
32.15 	(c) After maturity, the contract rate must not exceed 2.75 percent per month of the 
32.16 	remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly 
32.17 	rate in the contract for each calendar day the balance is outstanding.
32.18 	(d) No insurance charges or other charges must be permitted to be charged, collected, 
32.19 	or imposed on a consumer small loan except as authorized in this section.
32.20 	(e) On a loan transaction in which cash is advanced in exchange for a personal check, 
32.21 	a return check charge may be charged as authorized by section 604.113, subdivision 2, 
32.22 	paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph 
32.23 	(b), may not be demanded or assessed against the borrower.
32.24 	(f) A loan made under this section must not be repaid by the proceeds of another loan 
32.25 	made under this section by the same lender or related interest. The proceeds from a loan 
32.26 	made under this section must not be applied to another loan from the same lender or related 
32.27 	interest. No loan to a single borrower made pursuant to this section shall be split or divided 
32.28 	and no single borrower shall have outstanding more than one loan with the result of collecting 
32.29 	a higher charge than permitted by this section or in an aggregate amount of principal exceed 
32.30 	at any one time the maximum of $350.
32.31 	(g) A borrower is prohibited from receiving more than four consumer small loans from 
32.32 	all registrants or licensees in any 12-month period. A consumer small loan lender is prohibited 
33.1 	from making a consumer small loan to a borrower if making that consumer small loan would 
33.2 	result in a borrower receiving more than four consumer small loans from all consumer small 
33.3 	loan lenders in any 12-month period.
33.4 	(h) A consumer small loan lender must independently verify the total number of consumer 
33.5 	small loans taken by the borrower and the number of days the borrower has been indebted 
33.6 	through consumer small loans within the immediately preceding 365 days. Verification 
33.7 	must include:
33.8 	(1) examination of the consumer small loan lender's own records, including records 
33.9 	maintained at the location at which the borrower is applying for the transaction and records 
33.10 	maintained at other locations within the state that are owned and operated by the consumer 
33.11 	small loan lender; and
33.12 	(2) utilization of a privately operated, real-time, electronically accessible database as 
33.13 	defined under subdivision 7 that the commissioner determines to be capable of providing 
33.14 	a consumer small loan lender with adequate verification information necessary to ensure 
33.15 	compliance with this paragraph.
33.16 	(i) A consumer small loan lender shall have a duty to promptly report each consumer 
33.17 	small loan transaction to the database under subdivision 7.
33.18 	(k) A consumer small loan lender may not engage in any device or subterfuge to evade 
33.19 	the requirements of this section or section 47.601, including but not limited to:
33.20 	(1) making, offering, or arranging a consumer small loan on terms that otherwise would 
33.21 	be prohibited by this section or section 47.601;
33.22 	(2) making loans disguised as personal property sales and leaseback transactions; or
33.23 	(3) disguising loan proceeds as cash rebates.

33.24 	Sec. 9. Minnesota Statutes 2016, section 47.60, subdivision 4, is amended to read:
33.25 		Subd. 4.Books of account; annual report; schedule of charges; disclosures. (a) A 
33.26 	lender filing under subdivision 3 shall keep and use in the business books, accounts, and 
33.27 	records as will enable the commissioner to determine whether the filer is complying with 
33.28 	this section.
33.29 	(b) A lender filing under subdivision 3 shall annually on or before March 15 file a report 
33.30 	to the commissioner giving the information the commissioner reasonably requires concerning 
33.31 	the business and operations during the preceding calendar year, including the information 
34.1 	required to be reported under section 47.601, subdivision 4. A fee of $130 must be submitted 
34.2 	with the annual report.
34.3 	(c) A lender filing under subdivision 3 shall display prominently in each place of business 
34.4 	a full and accurate schedule, to be approved by the commissioner, of the charges to be made 
34.5 	and the method of computing those charges. A lender shall furnish a copy of the contract 
34.6 	of loan to a person obligated on it or who may become obligated on it at any time upon the 
34.7 	request of that person. This is in addition to any disclosures required by the federal Truth 
34.8 	in Lending Act, United States Code, title 15.
34.9 	(d) A lender filing under subdivision 3 shall, upon repayment of the loan in full, mark 
34.10 	indelibly every obligation signed by the borrower with the word "Paid" or "Canceled" within 
34.11 	20 days after repayment.
34.12 	(e) A lender filing under subdivision 3 shall display prominently, in each licensed place 
34.13 	of business, a full and accurate statement of the charges to be made for loans made under 
34.14 	this section. The statement of charges must be displayed in a notice, on plastic or other 
34.15 	durable material measuring at least 12 inches by 18 inches, headed "CONSUMER NOTICE 
34.16 	REQUIRED BY THE STATE OF MINNESOTA." The notice shall include, immediately 
34.17 	above the statement of charges, the following sentence, or a substantially similar sentence 
34.18 	approved by the commissioner: "These loan charges are higher than otherwise permitted 
34.19 	under Minnesota law. Minnesota law permits these higher charges only because short-term 
34.20 	small loans might otherwise not be available to consumers. If you have another source of 
34.21 	a loan, you may be able to benefit from a lower interest rate and other loan charges." The 
34.22 	notice must not contain any other statement or information, unless the commissioner has 
34.23 	determined that the additional statement or information is necessary to prevent confusion 
34.24 	or inaccuracy. The notice must be designed with a type size that is large enough to be readily 
34.25 	noticeable and legible. The form of the notice must be approved by the commissioner prior 
34.26 	to its use.
34.27 	(f) Every consumer small loan lender shall report to the commissioner within 30 days 
34.28 	any material changes to any of the information submitted by the consumer small loan lender's 
34.29 	original application.

34.30 	Sec. 10. Minnesota Statutes 2016, section 47.60, is amended by adding a subdivision to 
34.31 	read:
34.32 		Subd. 7.Database of outstanding consumer small loan or short-term loan 
34.33 	transactions. (a) The commissioner shall, on or before July 1, 2018, implement a common 
34.34 	database with real-time access through an Internet connection for consumer small loan or 
35.1 	short-term loan lenders as provided in this subdivision unless implementing the database 
35.2 	by that date would be financially impracticable for the commissioner to design and operate 
35.3 	a database or because a contract with a qualified third-party provider has not been entered 
35.4 	into. The database shall be accessible to the department and the consumer small loan or 
35.5 	short-term loan lender to verify whether any consumer small loan or short-term loan 
35.6 	transactions are outstanding for a particular person. A consumer small loan or short-term 
35.7 	loan lender shall accurately and promptly submit such data before entering into each 
35.8 	consumer small loan or short-term loan transactions in such format as the commissioner 
35.9 	may require by rule or order, including the customer's name, Social Security number or 
35.10 	employment authorization alien number, address, driver's license number, amount of the 
35.11 	transaction, data of transaction, date that the completed transaction is closed, and any 
35.12 	additional information required by the commissioner. The commissioner may adopt rules 
35.13 	to administer and enforce the provisions of this subdivision and to ensure that the database 
35.14 	is used by consumer small loan or short-term loan lenders in accordance with this section.
35.15 	(b) The commissioner shall impose a fee of $1 per transaction for data required to be 
35.16 	submitted by a consumer small loan or short-term loan lender, which fee may be charged 
35.17 	to the borrower.
35.18 	(c) The commissioner may operate the database described in paragraph (a) or may select 
35.19 	and contract with a third-party provider to operate the database. If the commissioner contracts 
35.20 	with a third-party provider for the operation of the database, all of the following apply:
35.21 	(1) the commissioner shall ensure that the third-party provider selected as the database 
35.22 	provider operates the database pursuant to the provisions of this subdivision;
35.23 	(2) the commissioner shall consider cost of service and ability to meet all the requirements 
35.24 	of this subdivision in selecting a third-party provider as the database provider;
35.25 	(3) in selecting a third-party provider to act as the database provider, the commissioner 
35.26 	shall give strong consideration to the third-party provider's ability to prevent fraud, abuse, 
35.27 	and other unlawful activities associated with deferred presentment service transactions and 
35.28 	provide additional tools for the administration and enforcement of this section;
35.29 	(4) the third-party provider shall use the data collected under this subdivision only as 
35.30 	prescribed in this section and the contract with the department and for no other purpose;
35.31 	(5) if the third-party provider violates this section, the commissioner may terminate the 
35.32 	contract and the third-party provider may be barred from becoming a party to any other 
35.33 	state contracts;
36.1 	(6) a person injured by the third-party provider's violation of this section may maintain 
36.2 	a civil cause of action against the third-party provider and may recover actual damages plus 
36.3 	reasonable attorney fees and court costs; and
36.4 	(7) the commissioner may require that the third-party provider collect the fee assessed 
36.5 	in paragraph (b) from the consumer small loan or short-term lender. The third-party provider 
36.6 	shall remit the fee collected from the consumer small loan or short-term lender to the 
36.7 	commissioner no later than the first day of each month. The third-party provider shall deposit 
36.8 	any fee collected in a separate escrow account in a federally insured financial institution 
36.9 	and shall hold the fee deposited in trust for the state.
36.10 	(d) The database described in paragraph (a) shall allow a consumer small loan or 
36.11 	short-term loan lender accessing the database to do all of the following:
36.12 	(1) verify whether a customer has any open consumer small loan or short-term loan 
36.13 	transactions with any consumer small loan or short-term loan lender that have not been 
36.14 	closed;
36.15 	(2) provide information necessary to ensure consumer small loan or short-term loan 
36.16 	lender compliance with any requirements imposed by the United States Treasury Office of 
36.17 	Foreign Assets Control and United States Treasury Office of Financial Crimes Enforcement 
36.18 	Network; and
36.19 	(3) track and monitor the number of customers who notify a consumer small loan or 
36.20 	short-term loan lender of violations of this subdivision, the number of times a consumer 
36.21 	small loan or short-term loan lender agreed that a violation occurred, the number of times 
36.22 	that a consumer small loan or short-term loan lender did not agree that a violation occurred, 
36.23 	the amount of restitution paid, and any other information the commissioner requires by rule 
36.24 	or order.
36.25 	(e) While operating the database, the database provider shall do all of the following:
36.26 	(1) establish and maintain a process for responding to transaction verification requests 
36.27 	due to technical difficulties occurring with the database that prevent the registrant or licensee 
36.28 	from accessing the database through the Internet;
36.29 	(2) comply with any applicable federal and state provisions to prevent identity theft;
36.30 	(3) provide accurate and secure receipt, transmission, and storage of customer data; and
36.31 	(4) meet the requirements of this section.
37.1 	(f) When the database provider receives notification that a consumer small loan or 
37.2 	short-term transaction has been closed, the database provider shall designate the transaction 
37.3 	as closed in the database immediately, but in no event after 11:59 p.m. on the day the 
37.4 	commissioner or database provider receives notification.
37.5 	(g) The database provider shall automatically designate a consumer small loan or 
37.6 	short-term loan transaction as closed in the database five days after the transaction maturity 
37.7 	date unless a consumer small loan or short-term loan lender reports to the database provider 
37.8 	before that time that the transaction remains open because of the customer's failure to make 
37.9 	payment; that the transaction is open because the customer's payment instrument or an 
37.10 	electronic redeposit is in the process of clearing the banking system; that the transaction 
37.11 	remains open because the customer's payment instrument is being returned to the consumer 
37.12 	small loan or short-term loan lender for insufficient funds, a closed account, or a stop 
37.13 	payment order; or because of any other factors determined by the commissioner. If a 
37.14 	consumer small loan or short-term loan lender reports the status of a transaction as open in 
37.15 	a timely manner, the transaction remains an open transaction until it is closed and the 
37.16 	database provider is notified that the transaction is closed.
37.17 	(h) If a consumer small loan or short-term loan lender stops providing consumer small 
37.18 	loan or short-term loan transactions, the database provider shall designate all open 
37.19 	transactions with that registrant or licensee as closed in the database 60 days after the date 
37.20 	the consumer small loan or short-term loan lender stops offering consumer small loan or 
37.21 	short-term loan transactions, unless the consumer small loan or short-term loan lender reports 
37.22 	to the database provider before the expiration of the 60-day period which of its transactions 
37.23 	remain open and the specific reason each transaction remains open. The consumer small 
37.24 	loan or short-term loan lender shall also provide to the commissioner a reasonably acceptable 
37.25 	plan that outlines how the consumer small loan or short-term loan lender will continue to 
37.26 	update the database after it stops offering deferred presentment service transactions. The 
37.27 	commissioner shall promptly approve or disapprove the plan and immediately notify the 
37.28 	consumer small loan or short-term loan lender of the commissioner's decision. If the plan 
37.29 	is disapproved, the consumer small loan or short-term loan lender may submit a new plan 
37.30 	or may submit a modified plan for the consumer small loan or short-term loan lender to 
37.31 	follow. If at any time the commissioner reasonably determines that a consumer small loan 
37.32 	or short-term loan lender that has stopped offering consumer small loan or short-term loan 
37.33 	transactions is not updating the database in accordance with its approved plan, the 
37.34 	commissioner shall immediately close or instruct the database provider to immediately close 
37.35 	all remaining open transactions of that consumer small loan or short-term loan lender.
38.1 	(i) The response to an inquiry to the database provider by a consumer small loan or 
38.2 	short-term loan lender shall state only that a person is eligible or ineligible for a new 
38.3 	consumer small loan or short-term loan transaction and describe the reason for that 
38.4 	determination. Only the person seeking the transaction may make a direct inquiry to the 
38.5 	database provider to request a more detailed explanation of a particular transaction that was 
38.6 	the basis for the ineligibility determination. Any information regarding any person's 
38.7 	transaction history is confidential; is not subject to public inspection; is not a public record 
38.8 	subject to the disclosure requirements of the Minnesota Government Data Practices Act, 
38.9 	chapter 13; is not subject to discovery, subpoena, or other compulsory process, except in 
38.10 	an administrative or legal action arising under this subdivision; and shall not be disclosed 
38.11 	to any person other than the commissioner.
38.12 	(j) The commissioner may access the database provided under paragraph (a) only for 
38.13 	purposes of an investigation of, examination of, or enforcement action concerning an 
38.14 	individual database provider, registrant or licensee, customer, or other person.
38.15 	(k) The commissioner shall investigate violations of and enforce this section. The 
38.16 	commissioner shall not delegate the commissioner's responsibilities under this subdivision 
38.17 	to any third-party provider.
38.18 	(l)(1) The commissioner shall make a determination that the database is fully operational 
38.19 	and shall send written notification to each registrant or licensee subject to the provisions of 
38.20 	this section:
38.21 	(i) that the database has been implemented; and
38.22 	(ii) of the exact date that the database shall be considered operational for the data entry 
38.23 	requirement established in clause (2);
38.24 	(2) A consumer small loan or short-term loan lender shall promptly and accurately enter 
38.25 	into the database all transactions undertaken by the registrant or licensee upon receipt of 
38.26 	the written notification established in this paragraph.
38.27 	(m) The commissioner may, by rule or order, do all of the following:
38.28 	(1) require that data be retained in the database only as required to ensure consumer 
38.29 	small loan or short-term loan lender compliance with this section;
38.30 	(2) require that customer transaction data in the database is archived within 365 days 
38.31 	after the customer transaction is closed unless needed for a pending enforcement or legal 
38.32 	action;
39.1 	(3) require that any identifying customer information is deleted from the database when 
39.2 	data is archived; and
39.3 	(4) require that data in the database concerning a customer transaction is deleted from 
39.4 	the database three years after the customer transaction is closed, or if any administrative, 
39.5 	legal, or law enforcement action is pending, three years after the administrative, legal, or 
39.6 	law enforcement action is completed, whichever is later.
39.7 	(n) The commissioner may maintain access to data archived under paragraph (m) for 
39.8 	examination, investigation, or legislative or policy review.
39.9 	(o) A consumer small loan or short-term loan lender may rely on the information 
39.10 	contained in the database as accurate and is not subject to any administrative penalty or 
39.11 	civil liability as a result or relying on inaccurate information contained in the database, 
39.12 	provided the consumer small loan or short-term lender accurately and promptly submits 
39.13 	such data as required before entering into a consumer small loan or short-term loan 
39.14 	transaction with a customer.
39.15 	(p) The commissioner may use the database to administer and enforce this section.
39.16 	(q) The commissioner may require a database provider to file a report by March 1 of 
39.17 	each year containing the following information:
39.18 	(1) the total number and dollar amount of consumer small loan or short-term loan 
39.19 	transactions entered into in the calendar year ending December 3 of the previous year;
39.20 	(2) the total number and dollar amount of consumer small loan or short-term loan 
39.21 	transactions outstanding as of December 31 of the previous year;
39.22 	(3) the total dollar amount of fees collected for consumer small loan or short-term loan 
39.23 	transactions as of December 31 of the previous year;
39.24 	(4) the minimum, maximum, and average dollar amount of consumer small loan or 
39.25 	short-term loan transactions entered into, the total dollar amount of the net charge-offs and 
39.26 	write-offs, and the net recoveries of registrants or licensees as of December 31 of the previous 
39.27 	year;
39.28 	(5) the average consumer small loan or short-term loan transactions amount, the average 
39.29 	number of transactions, and the average aggregate consumer small loan or short-term loan 
39.30 	transactions amount entered into per customer as of December 31 of the previous year;
39.31 	(6) the average number of days a customer was engaged in a consumer small loan or 
39.32 	short-term loan transactions for the previous year; and
40.1 	(7) an estimate of the average total fees paid per customer for consumer small loan or 
40.2 	short-term loan transactions for the previous year.
40.3 	(r) Enforcement of this section is effective 90 days after the database implementation 
40.4 	date established by the commissioner as set forth in paragraph (l).

40.5 	Sec. 11. Minnesota Statutes 2016, section 47.601, subdivision 2, is amended to read:
40.6 		Subd. 2.Consumer short-term loan contract. (a) No contract or agreement between 
40.7 	a consumer short-term loan lender and a borrower residing in Minnesota may contain the 
40.8 	following:
40.9 	(1) a provision selecting a law other than Minnesota law under which the contract is 
40.10 	construed or enforced;
40.11 	(2) a provision choosing a forum for dispute resolution other than the state of Minnesota; 
40.12 	or
40.13 	(3) a provision limiting class actions against a consumer short-term lender for violations 
40.14 	of subdivision 3 or for making consumer short-term loans:
40.15 	(i) without a required license issued by or a required registration with the commissioner; 
40.16 	or
40.17 	(ii) in which interest rates, fees, charges, or loan amounts exceed those allowable under 
40.18 	section ~~47.59, subdivision 6, or~~47.60, subdivision 2~~, other than by de minimis amounts if~~ 
40.19 	~~no pattern or practice exists~~.
40.20 	(b) Any provision prohibited by paragraph (a) is void and unenforceable.
40.21 	(c) A consumer short-term loan lender must furnish a copy of the written loan contract 
40.22 	to each borrower. The contract and disclosures must be written in the language in which 
40.23 	the loan was negotiated with the borrower and must contain:
40.24 	(1) the name; address, which may not be a post office box; and telephone number of the 
40.25 	lender making the consumer short-term loan;
40.26 	(2) the name and title of the individual employee or representative who signs the contract 
40.27 	on behalf of the lender;
40.28 	(3) an itemization of the fees and interest charges to be paid by the borrower;
40.29 	(4) in bold, 24-point type, the annual percentage rate as computed under United States 
40.30 	Code, chapter 15, section 1606; and
40.31 	(5) a description of the borrower's payment obligations under the loan.
41.1 	(d) The holder or assignee of a check or other instrument evidencing an obligation of a 
41.2 	borrower in connection with a consumer short-term loan takes the instrument subject to all 
41.3 	claims by and defenses of the borrower against the consumer short-term lender.

41.4 	Sec. 12. Minnesota Statutes 2016, section 47.601, is amended by adding a subdivision to 
41.5 	read:
41.6 		Subd. 2a.Requirements; prohibitions. (a) A consumer short-term lender may not make 
41.7 	a consumer short-term loan to a borrower that will cause a borrower to have, as of the date 
41.8 	of the loan and within the immediately preceding 365 days:
41.9 	(1) more than four consumer short-term loans; or
41.10 	(2) consumer short-term loan debt totaling more than 90 days.
41.11 	In determining the number of loans and days of indebtedness, a consumer short-term 
41.12 	lender must aggregate the consumer short-term loan transaction for which the determination 
41.13 	is being made with all the consumer short-term loans the borrower has taken from all 
41.14 	consumer short-term lenders within the immediately preceding 365 days. A consumer 
41.15 	short-term lender may not make a consumer short-term loan to a borrower if the lender is 
41.16 	unable to verify the number of loans the borrower has taken or the days the borrower has 
41.17 	been indebted in total from all consumer short-term lenders within the immediately preceding 
41.18 	365 days.
41.19 	(b) A consumer short-term lender must independently verify the total number of consumer 
41.20 	short-term loans taken by the borrower and the number of days the borrower has been 
41.21 	indebted through consumer short-term loans within the immediately preceding 365 days. 
41.22 	Verification must include:
41.23 	(1) examination of the consumer short-term lender's own records, including records 
41.24 	maintained at the location at which the borrower is applying for the transaction and records 
41.25 	maintained at other locations within the state that are owned and operated by the consumer 
41.26 	short-term lender; and
41.27 	(2) utilization of a privately operated, real-time, electronically accessible database as 
41.28 	defined under section 47.60, subdivision 7, that the commissioner determines to be capable 
41.29 	of providing a consumer short-term lender with adequate verification information necessary 
41.30 	to ensure compliance with this paragraph.
41.31 	(c) A consumer short-term lender shall have a duty to promptly report each consumer 
41.32 	short-term loan transaction to the database under section 47.60, subdivision 7.
42.1 	(d) A consumer short-term lender may not engage in any device or subterfuge to evade 
42.2 	the requirements of this section or section 47.60, including but not limited to:
42.3 	(1) making, offering, or arranging a consumer short-term loan on terms that otherwise 
42.4 	would be prohibited by this section or section 47.60;
42.5 	(2) making loans disguised as personal property sales and leaseback transactions; or
42.6 	(3) disguising loan proceeds as cash rebates.

42.7 	Sec. 13. Minnesota Statutes 2016, section 47.65, subdivision 2, is amended to read:
42.8 		Subd. 2.Application. Before installation and operation, a transmission facility application 
42.9 	by a person who is required to submit an application under subdivision 1 shall be submitted 
42.10 	to the commissioner on a form provided by the commissioner which states:
42.11 	(a) The location where the transmission facility will be operated;
42.12 	(b) The ownership of the transmission facility;
42.13 	(c) If applicable, the bonding or insurance company which has provided the bond for 
42.14 	the transmission facility; and
42.15 	(d) Such other information as the commissioner requires.
42.16 	If the commissioner finds that (a) the facility will be properly and safely managed, (b) 
42.17 	the applicant is financially sound, (c) there is a reasonable probability of success for the 
42.18 	facility, (d) the proposed charges for making the services of the facility available to financial 
42.19 	institutions are fair, equitable and nondiscriminatory, and (e) all information has been 
42.20 	furnished by the applicant, the commissioner shall approve the application within 90 days. 
42.21 	If the commissioner has not denied the application within 90 days of the submission of the 
42.22 	application, the authorization shall be deemed granted. For each application, a $500 fee 
42.23 	shall be paid to the commissioner. For each application for change in pricing structure, a 
42.24 	$50 fee shall be paid to the commissioner. If the $500 fee or the $50 fee is less than the 
42.25 	costs incurred by the commissioner in approving or disapproving the application, the 
42.26 	application fee shall be equal to those costs. An annual license fee of $80 for each location 
42.27 	shall be submitted with the annual renewal in the Nationwide Multi-State Licensing System.

42.28 	Sec. 14. Minnesota Statutes 2016, section 53.04, subdivision 3a, is amended to read:
42.29 		Subd. 3a.Loans. (a) The right to make loans, secured or unsecured, at the rates and on 
42.30 	the terms and other conditions permitted under chapters 47 and 334. Loans made under this 
42.31 	authority must be in amounts in compliance with section 53.05, clause (7). A licensee making 
43.1 	a loan under this chapter secured by a lien on real estate shall comply with the requirements 
43.2 	of section 47.20, subdivision 8. To the extent a licensee under this chapter makes loans that 
43.3 	meet the definition of a "consumer small loan" under section 47.60, subdivision 1, paragraph 
43.4 	(a), or a "consumer short-term loan" under section 47.601, subdivision 1, paragraph (d), 
43.5 	such loans are governed by sections 47.60 and 47.601.
43.6 	(b) Loans made under this subdivision may be secured by real or personal property, or 
43.7 	both. If the proceeds of a loan secured by a first lien on the borrower's primary residence 
43.8 	are used to finance the purchase of the borrower's primary residence, the loan must comply 
43.9 	with the provisions of section 47.20.
43.10 	(c) An agency or instrumentality of the United States government or a corporation 
43.11 	otherwise created by an act of the United States Congress or a lender approved or certified 
43.12 	by the secretary of housing and urban development, or approved or certified by the 
43.13 	administrator of veterans affairs, or approved or certified by the administrator of the Farmers 
43.14 	Home Administration, or approved or certified by the Federal Home Loan Mortgage 
43.15 	Corporation, or approved or certified by the Federal National Mortgage Association, that 
43.16 	engages in the business of purchasing or taking assignments of mortgage loans and undertakes 
43.17 	direct collection of payments from or enforcement of rights against borrowers arising from 
43.18 	mortgage loans, is not required to obtain a certificate of authorization under this chapter in 
43.19 	order to purchase or take assignments of mortgage loans from persons holding a certificate 
43.20 	of authorization under this chapter.
43.21 	(d) This subdivision does not authorize an industrial loan and thrift company to make 
43.22 	loans under an overdraft checking plan.

43.23 	Sec. 15. Minnesota Statutes 2016, section 53.09, subdivision 2, is amended to read:
43.24 		Subd. 2.Annual report. (1) Each industrial loan and thrift company shall annually on 
43.25 	or before the first day of March file a report with the commissioner stating in detail, under 
43.26 	appropriate heads, its assets and liabilities at the close of business on the last day of the 
43.27 	preceding calendar year and, if applicable, information required under section 47.601, 
43.28 	subdivision 4. This report shall be made under oath in the form prescribed by the 
43.29 	commissioner. An annual license fee of $780 for the principal and $530 for each location 
43.30 	must be submitted with the annual report.
43.31 	(2) Each industrial loan and thrift company which holds authority to accept accounts 
43.32 	pursuant to section 53.04, subdivision 5, shall in place of the requirement in clause (1) 
43.33 	submit the reports required of state banks pursuant to section 48.48.
44.1 	(3) Within 30 days following a change in controlling ownership of the capital stock of 
44.2 	an industrial loan and thrift company, it shall file a written report with the commissioner 
44.3 	stating in detail the nature of such change in ownership.

44.4 	Sec. 16. Minnesota Statutes 2016, section 53A.03, is amended to read:
44.5 	53A.03 APPLICATION FOR LICENSE; FEES.
44.6 	(a) An application for a license must be in writing, under oath, and in the form prescribed 
44.7 	and furnished by the commissioner and must contain the following:
44.8 	(1) the full name and address (both of residence and place of business) of the applicant, 
44.9 	and if the applicant is a partnership or association, of every member, and the name and 
44.10 	business address if the applicant is a corporation;
44.11 	(2) the county and municipality, with street and number, if any, of all currency exchange 
44.12 	locations operated by the applicant; and
44.13 	(3) the applicant's occupation or profession, for the ten years immediately preceding the 
44.14 	application; present or previous connection with any other currency exchange in this or any 
44.15 	other state; whether the applicant has ever been convicted of any crime; and the nature of 
44.16 	the applicant's occupancy of the premises to be licensed; and if the applicant is a partnership 
44.17 	or a corporation, the information specified in this paragraph must be supplied for each 
44.18 	partner and each officer and director of the corporation. If the applicant is a partnership or 
44.19 	a nonpublicly held corporation, the information specified in this paragraph must be required 
44.20 	of each partner and each officer, director, and stockholders owning in excess of ten percent 
44.21 	of the corporate stock of the corporation.
44.22 	(b) The application shall be accompanied by a nonrefundable fee of $1,000 for the review 
44.23 	of the initial application. Upon approval by the commissioner, an additional license fee of 
44.24 	~~$500~~ $780 must be paid by the applicant as an annual license fee for the remainder of the 
44.25 	calendar year. An annual license fee of ~~$500~~ $780 is due for each subsequent calendar year 
44.26 	of operation upon submission of a license renewal application on or before September 1. 
44.27 	Fees must be deposited in the state treasury and credited to the general fund. Upon payment 
44.28 	of the required annual license fee, the commissioner shall issue a license for the year 
44.29 	beginning January 1.
44.30 	(c) The commissioner shall require the applicant to submit to a background investigation 
44.31 	conducted by the Bureau of Criminal Apprehension as a condition of licensure. As part of 
44.32 	the background investigation, the Bureau of Criminal Apprehension shall conduct criminal 
44.33 	history checks of Minnesota records and is authorized to exchange fingerprints with the 
45.1 	Federal Bureau of Investigation for the purpose of a criminal background check of the 
45.2 	national files. The cost of the investigation must be paid by the applicant.
45.3 	(d) For purposes of this section, "applicant" includes an employee who exercises 
45.4 	management or policy control over the company, a director, an officer, a limited or general 
45.5 	partner, a manager, or a shareholder holding more than ten percent of the outstanding stock 
45.6 	of the corporation.

45.7 	Sec. 17. Minnesota Statutes 2016, section 53B.11, subdivision 1, is amended to read:
45.8 		Subdivision 1.Fee. The annual fee for renewal of a license under this chapter is ~~$2,500~~
45.9 	$3,030.

45.10 	Sec. 18. Minnesota Statutes 2016, section 53C.02, is amended to read:
45.11 	53C.02 SALES FINANCE COMPANY; LICENSE, FEES, REFUND.
45.12 	(a) No person shall engage in the business of a sales finance company in this state without 
45.13 	a license therefor as provided in sections 53C.01 to 53C.14 provided, however, that no bank, 
45.14 	trust company, savings bank, savings association, or credit union, whether state or federally 
45.15 	chartered, industrial loan and thrift company, or licensee under the Minnesota Regulated 
45.16 	Loan Act authorized to do business in this state shall be required to obtain a license under 
45.17 	sections 53C.01 to 53C.14.
45.18 	(b) The application for a license shall be in writing, under oath and in the form prescribed 
45.19 	by the commissioner. The application shall contain the name of the applicant; date of 
45.20 	incorporation, if incorporated; the address where the business is or is to be conducted and 
45.21 	similar information as to any branch office of the applicant; the name and resident address 
45.22 	of the owner or partners, or, if a corporation or association, of the directors, trustees and 
45.23 	principal officers, and other pertinent information the commissioner requires.
45.24 	(c) The licensee fee for the fiscal year beginning July 1 and ending June 30 of the 
45.25 	following year, or any part thereof shall be the sum of ~~$250~~$330 for the principal place of 
45.26 	business of the licensee, and the sum of ~~$125~~ $205 for each branch of the licensee, maintained 
45.27 	in this state. Any licensee who proves to the satisfaction of the commissioner, by affidavit 
45.28 	or other proof satisfactory to the commissioner, that during the 12 calendar months of the 
45.29 	immediately preceding fiscal year, for which the license has been paid that the licensee has 
45.30 	not held retail installment contracts exceeding $15,000 in amount, shall be entitled to a 
45.31 	refund of that portion of each license fee paid in excess of $25. The commissioner shall 
45.32 	certify to the commissioner of management and budget that the licensee is entitled to a 
46.1 	refund, and payment thereof shall be made by the commissioner of management and budget. 
46.2 	The amount necessary to pay for the refundment of the license fee is appropriated out of 
46.3 	the general fund. All license fees received by the commissioner under sections 53C.01 to 
46.4 	53C.14 shall be deposited with the commissioner of management and budget.
46.5 	(d) Each license shall specify the location of the office or branch and must be 
46.6 	conspicuously displayed there. In case the location be changed, the commissioner shall 
46.7 	endorse the change of location on the license.
46.8 	(e) Upon the filing of such application, and the payment of the fee, the commissioner 
46.9 	shall issue a license to the applicant to engage in the business of a sales finance company 
46.10 	under and in accordance with the provisions of sections 53C.01 to 53C.14 for a period which 
46.11 	shall expire the last day of June next following the date of its issuance. The license shall 
46.12 	not be transferable or assignable. No licensee shall transact any business provided for by 
46.13 	sections 53C.01 to 53C.14 under any other name.

46.14 	Sec. 19. Minnesota Statutes 2016, section 55.04, subdivision 2, is amended to read:
46.15 		Subd. 2.Application for license. Application for license shall be in writing, under oath, 
46.16 	and in the form prescribed by the commissioner of commerce, and contain the name and 
46.17 	address, both of the residence and place of business, of the applicant, and if the applicant 
46.18 	is a partnership or unincorporated association, of every member thereof, and if a corporation, 
46.19 	of each officer and director thereof; also the county and municipality, with street and number, 
46.20 	if any, where the business is to be conducted; and further information the commissioner of 
46.21 	commerce requires. The applicant at the time of making application shall pay to the 
46.22 	commissioner the sum of $250 as a fee for investigating the application, and the additional 
46.23 	sum of ~~$150~~ $330 as an annual license fee for a period terminating on the last day of the 
46.24 	current calendar year.

46.25 	Sec. 20. Minnesota Statutes 2016, section 56.02, is amended to read:
46.26 	56.02 APPLICATION FEE.
46.27 	Application for license shall be in writing, under oath, and in the form prescribed by the 
46.28 	commissioner, and contain the name and the address, both of the residence and place of 
46.29 	business, of the applicant and, if the applicant is a copartnership or association, of every 
46.30 	member thereof, and if a corporation, of each officer and director thereof; also the county 
46.31 	and municipality, with street and number, if any, where the business is to be conducted, and 
46.32 	such further information as the commissioner may require. The applicant at the time of 
46.33 	making application, shall pay to the commissioner the sum of $500 as a fee for investigating 
47.1 	the application, and the additional sum of ~~$250~~ $530 as an annual license fee for a period 
47.2 	terminating on the last day of the current calendar year. In addition to the annual license 
47.3 	fee, every licensee hereunder shall pay to the commissioner the actual costs of each 
47.4 	examination, as provided for in section 56.10. All moneys collected by the commissioner 
47.5 	under this chapter shall be turned over to the commissioner of management and budget and 
47.6 	credited by the commissioner of management and budget to the general fund of the state.
47.7 	Every applicant shall also prove, in form satisfactory to the commissioner, that the 
47.8 	applicant has available for the operation of the business at the location specified in the 
47.9 	application, liquid assets of at least $50,000.

47.10 	Sec. 21. Minnesota Statutes 2016, section 58.10, subdivision 1, is amended to read:
47.11 		Subdivision 1.Amounts. The following fees must be paid to the commissioner:
47.12 	(1) for a residential mortgage originator license, $1,000, $50 of which is credited to the 
47.13 	consumer education account in the special revenue fund;
47.14 	(2) for a renewal license, ~~$500~~ $780, $50 of which is credited to the consumer education 
47.15 	account in the special revenue fund;
47.16 	(3) for a residential mortgage servicer's license, ~~$500~~ $530;
47.17 	(4) for a renewal license, ~~$250~~ $530; and
47.18 	(5) for a certificate of exemption, $100.

47.19 	Sec. 22. Minnesota Statutes 2016, section 58A.045, subdivision 2, is amended to read:
47.20 		Subd. 2.Fees. The following fees must be paid to the commissioner:
47.21 	(1) for a mortgage loan originator license, $90; and
47.22 	(2) for a renewal mortgage loan originator license, ~~$50~~ $75.

47.23 	Sec. 23. Minnesota Statutes 2016, section 59A.03, subdivision 2, is amended to read:
47.24 		Subd. 2.Required fees. The applicant at the time of making application, shall pay to 
47.25 	the commissioner the sum of ~~$250~~ $280 as a fee for investigating the application, and the 
47.26 	additional sum of ~~$200~~ $280 as an annual licensee fee for a period terminating on May 31 
47.27 	of each year. In addition to the annual license fee, every licensee shall pay to the 
47.28 	commissioner the actual costs of each examination as may be required to be conducted 
47.29 	under the terms of sections 59A.01 to 59A.15.

48.1 	Sec. 24. Minnesota Statutes 2016, section 80A.61, is amended to read:
48.2 	80A.61 SECTION 406; REGISTRATION BY BROKER-DEALER, AGENT, 
48.3 	FUNDING PORTAL, INVESTMENT ADVISER, AND INVESTMENT ADVISER 
48.4 	REPRESENTATIVE.
48.5 	(a) Application for initial registration by broker-dealer, agent, ~~or~~ investment adviser, 
48.6 	or investment adviser representative. A person shall register as a broker-dealer, agent, 
48.7 	~~or~~ investment adviser, or investment adviser representative by filing an application and a 
48.8 	consent to service of process complying with section 80A.88, and paying the fee specified 
48.9 	in section 80A.65 and any reasonable fees charged by the designee of the administrator for 
48.10 	processing the filing. The application must contain:
48.11 	(1) the information or record required for the filing of a uniform application; and
48.12 	(2) upon request by the administrator, any other financial or other information or record 
48.13 	that the administrator determines is appropriate.
48.14 	(b) Amendment. If the information or record contained in an application filed under 
48.15 	subsection (a) is or becomes inaccurate or incomplete in a material respect, the registrant 
48.16 	shall promptly file a correcting amendment.
48.17 	(c) Effectiveness of registration. If an order is not in effect and a proceeding is not 
48.18 	pending under section 80A.67, registration becomes effective at noon on the 45th day after 
48.19 	a completed application is filed, unless the registration is denied. A rule adopted or order 
48.20 	issued under this chapter may set an earlier effective date or may defer the effective date 
48.21 	until noon on the 45th day after the filing of any amendment completing the application.
48.22 	(d) Registration renewal. A registration is effective until midnight on December 31 of 
48.23 	the year for which the application for registration is filed. Unless an order is in effect under 
48.24 	section 80A.67, a registration may be automatically renewed each year by filing such records 
48.25 	as are required by rule adopted or order issued under this chapter, by paying the fee specified 
48.26 	in section 80A.65, and by paying costs charged by the designee of the administrator for 
48.27 	processing the filings.
48.28 	(e) Additional conditions or waivers. A rule adopted or order issued under this chapter 
48.29 	may impose such other conditions, not inconsistent with the National Securities Markets 
48.30 	Improvement Act of 1996. An order issued under this chapter may waive, in whole or in 
48.31 	part, specific requirements in connection with registration as are in the public interest and 
48.32 	for the protection of investors.
49.1 	(f) Funding portal registration. A funding portal that has its principal place of business 
49.2 	in the state of Minnesota shall register with the state of Minnesota by filing with the 
49.3 	administrator a copy of the information or record required for the filing of an application 
49.4 	for registration as a funding portal in the manner established by the Securities and Exchange 
49.5 	Commission and/or the Financial Institutions Regulatory Authority (FINRA), along with 
49.6 	any rule adopted or order issued, and any amendments thereto.
49.7 	(g) Application for investment adviser representative registration.
49.8 	(1) The application for initial registration as an investment adviser representative pursuant 
49.9 	to section 80A.58 is made by completing Form U-4 (Uniform Application for Securities 
49.10 	Industry Registration or Transfer) in accordance with the form instructions and by filing 
49.11 	the form U-4 with the IARD. The application for initial registration must also include the 
49.12 	following:
49.13 	(i) proof of compliance by the investment adviser representative with the examination 
49.14 	requirements of:
49.15 	(A) the Uniform Investment Adviser Law Examination (Series 65); or
49.16 	(B) the General Securities Representative Examination (Series 7) and the Uniform 
49.17 	Combined State Law Examination (Series 66);
49.18 	(ii) any other information the administrator may reasonably require.
49.19 	(2) The application for the annual renewal registration as an investment adviser 
49.20 	representative shall be filed with the IARD.
49.21 	(3)(i) The investment adviser representative is under a continuing obligation to update 
49.22 	information required by Form U-4 as changes occur;
49.23 	(ii) An investment adviser representative and the investment adviser must file promptly 
49.24 	with the IARD any amendments to the representative's Form U-4; and
49.25 	(iii) An amendment will be considered to be filed promptly if the amendment is filed 
49.26 	within 30 days of the event that requires the filing of the amendment.
49.27 	(4) An application for initial or renewal of registration is not considered filed for purposes 
49.28 	of section 80A.58 until the required fee and all required submissions have been received 
49.29 	by the administrator.
49.30 	(5) The application for withdrawal of registration as an investment adviser representative 
49.31 	pursuant to section 80A.58 shall be completed by following the instructions on Form U-5 
50.1 	(Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5 
50.2 	with the IARD.

50.3 	Sec. 25. Minnesota Statutes 2016, section 80A.65, subdivision 2, is amended to read:
50.4 		Subd. 2.Registration application and renewal filing fee. Every applicant for an initial 
50.5 	or renewal registration shall pay a filing fee of $200 in the case of a broker-dealer, ~~$50~~ $65
50.6 	in the case of an agent, ~~and~~ $100 in the case of an investment adviser, and $50 in the case 
50.7 	of an investment adviser representative. When an application is denied or withdrawn, the 
50.8 	filing fee shall be retained. A registered agent who has terminated employment with one 
50.9 	broker-dealer shall, before beginning employment with another broker-dealer, pay a transfer 
50.10 	fee of $25.

50.11 	Sec. 26. Minnesota Statutes 2016, section 216B.2401, is amended to read:
50.12 	216B.2401 ENERGY SAVINGS POLICY GOAL.
50.13 	The legislature finds that energy savings are an energy resource, and that cost-effective 
50.14 	energy savings are preferred over all other energy resources. The legislature further finds 
50.15 	that cost-effective energy savings should be procured systematically and aggressively in 
50.16 	order to reduce utility costs for businesses and residents, improve the competitiveness and 
50.17 	profitability of businesses, create more energy-related jobs, reduce the economic burden of 
50.18 	fuel imports, and reduce pollution and emissions that cause climate change. Therefore, it 
50.19 	is the energy policy of the state of Minnesota to achieve annual energy savings equal to at 
50.20 	least ~~1.5~~ two percent of annual retail energy sales of electricity and natural gas through 
50.21 	cost-effective energy conservation improvement programs and rate design, energy efficiency 
50.22 	achieved by energy consumers without direct utility involvement, energy codes and appliance 
50.23 	standards, programs designed to transform the market or change consumer behavior, energy 
50.24 	savings resulting from efficiency improvements to the utility infrastructure and system, and 
50.25 	other efforts to promote energy efficiency and energy conservation.

50.26 	Sec. 27. Minnesota Statutes 2016, section 216B.241, subdivision 1, is amended to read:
50.27 		Subdivision 1.Definitions. For purposes of this section and section 216B.16, subdivision 
50.28 	6b, the terms defined in this subdivision have the meanings given them.
50.29 	(a) "Commission" means the Public Utilities Commission.
50.30 	(b) "Commissioner" means the commissioner of commerce.
50.31 	(c) "Department" means the Department of Commerce.
51.1 	(d) "Energy conservation" means demand-side management of energy supplies resulting 
51.2 	in a net reduction in energy use. Load management that reduces overall energy use is energy 
51.3 	conservation.
51.4 	(e) "Energy conservation improvement" means a project that results in energy efficiency 
51.5 	or energy conservation. Energy conservation improvement may include waste heat that is 
51.6 	recovered and converted into electricity, but does not include electric utility infrastructure 
51.7 	projects approved by the commission under section 216B.1636. Energy conservation 
51.8 	improvement also includes waste heat recovered and used as thermal energy and combined 
51.9 	heat and power as defined in paragraph (p).
51.10 	(f) "Energy efficiency" means measures or programs, including energy conservation 
51.11 	measures or programs, that target consumer behavior, equipment, processes, facility 
51.12 	performance, operations and maintenance, or devices designed to produce either an absolute 
51.13 	decrease in consumption of electric energy or natural gas or a decrease in consumption of 
51.14 	electric energy or natural gas on a per unit of production basis without a reduction in the 
51.15 	quality or level of service provided to the energy consumer.
51.16 	(g) "Gross annual retail energy sales" means annual electric sales to all retail customers 
51.17 	in a utility's or association's Minnesota service territory or natural gas throughput to all retail 
51.18 	customers, including natural gas transportation customers, on a utility's distribution system 
51.19 	in Minnesota. For purposes of this section, gross annual retail energy sales exclude:
51.20 	(1) gas sales to:
51.21 	(i) a large energy facility;
51.22 	(ii) a large customer facility whose natural gas utility has been exempted by the 
51.23 	commissioner under subdivision 1a, paragraph (b), with respect to natural gas sales made 
51.24 	to the large customer facility; and
51.25 	(iii) a commercial gas customer facility whose natural gas utility has been exempted by 
51.26 	the commissioner under subdivision 1a, paragraph (c), with respect to natural gas sales 
51.27 	made to the commercial gas customer facility; and
51.28 	(2) electric sales to a large customer facility whose electric utility has been exempted 
51.29 	by the commissioner under subdivision 1a, paragraph (b), with respect to electric sales made 
51.30 	to the large customer facility.
51.31 	(h) "Investments and expenses of a public utility" includes the investments and expenses 
51.32 	incurred by a public utility in connection with an energy conservation improvement, including 
51.33 	but not limited to:
52.1 	(1) the differential in interest cost between the market rate and the rate charged on a 
52.2 	no-interest or below-market interest loan made by a public utility to a customer for the 
52.3 	purchase or installation of an energy conservation improvement;
52.4 	(2) the difference between the utility's cost of purchase or installation of energy 
52.5 	conservation improvements and any price charged by a public utility to a customer for such 
52.6 	improvements.
52.7 	(i) "Large customer facility" means all buildings, structures, equipment, and installations 
52.8 	at a single site that collectively (1) impose a peak electrical demand on an electric utility's 
52.9 	system of not less than 20,000 kilowatts, measured in the same way as the utility that serves 
52.10 	the customer facility measures electrical demand for billing purposes or (2) consume not 
52.11 	less than 500 million cubic feet of natural gas annually. In calculating peak electrical demand, 
52.12 	a large customer facility may include demand offset by on-site cogeneration facilities and, 
52.13 	if engaged in mineral extraction, may aggregate peak energy demand from the large customer 
52.14 	facility's mining and processing operations.
52.15 	(j) "Large energy facility" has the meaning given it in section 216B.2421, subdivision 
52.16 	2, clause (1).
52.17 	(k) "Load management" means an activity, service, or technology to change the timing 
52.18 	or the efficiency of a customer's use of energy that allows a utility or a customer to respond 
52.19 	to wholesale market fluctuations or to reduce peak demand for energy or capacity.
52.20 	(l) "Low-income programs" means energy conservation improvement programs that 
52.21 	directly serve the needs of low-income persons, including low-income renters.
52.22 	(m) "Qualifying utility" means a utility that supplies the energy to a customer that enables 
52.23 	the customer to qualify as a large customer facility.
52.24 	(n) "Waste heat recovered and used as thermal energy" means capturing heat energy 
52.25 	that would otherwise be exhausted or dissipated to the environment from machinery, 
52.26 	buildings, or industrial processes and productively using such recovered thermal energy 
52.27 	where it was captured or distributing it as thermal energy to other locations where it is used 
52.28 	to reduce demand-side consumption of natural gas, electric energy, or both.
52.29 	(o) "Waste heat recovery converted into electricity" means an energy recovery process 
52.30 	that converts otherwise lost energy from the heat of exhaust stacks or pipes used for engines 
52.31 	or manufacturing or industrial processes, or the reduction of high pressure in water or gas 
52.32 	pipelines.
53.1 	(p) "Combined heat and power" means the concurrent production of electricity or 
53.2 	mechanical power and useful thermal energy, heating, or cooling from a single source of 
53.3 	energy. Combined heat and power includes topping-cycle systems that produce electricity 
53.4 	first, then recover the excess thermal energy for heating or cooling applications and 
53.5 	bottoming-cycle systems that use waste heat from an existing process to produce electricity. 
53.6 	A bottoming cycle may use the heat source to produce electricity using an organic rankine 
53.7 	cycle or backpressure steam turbine.

53.8 	Sec. 28. Minnesota Statutes 2016, section 216B.241, subdivision 1c, is amended to read:
53.9 		Subd. 1c.Energy-saving goals. (a) The commissioner shall establish energy-saving 
53.10 	goals for energy conservation improvement expenditures and shall evaluate an energy 
53.11 	conservation improvement program on how well it meets the goals set.
53.12 	(b) Unless modified by the commissioner under paragraph (d), each individual electric 
53.13 	utility and association shall have an annual energy-savings goal equivalent to ~~1.5~~ two percent 
53.14 	of gross annual retail sales, and each individual natural gas utility shall have an annual 
53.15 	energy-savings goal equivalent to 1.5 percent of gross annual retail energy sales ~~unless~~ 
53.16 	~~modified by the commissioner under paragraph (d)~~. The savings goals must be calculated 
53.17 	based on the most recent three-year weather-normalized average. ~~A~~ The effective date and 
53.18 	interim requirements for the energy-savings goals are established in paragraph (d). An 
53.19 	electric utility or association may elect to carry forward annual energy savings in excess of 
53.20 	~~1.5~~ two percent ~~for a year~~ to one of the succeeding three calendar years~~, except that~~. Energy
53.21 	savings from electric utility infrastructure projects allowed under paragraph ~~(d)~~ (e) may be 
53.22 	carried forward ~~for~~ to one of the succeeding five calendar years. ~~A particular energy savings~~ 
53.23 	~~can be used only for one year's goal.~~ A natural gas utility may elect to carry forward energy 
53.24 	savings in excess of 1.5 percent to one of the succeeding three calendar years.
53.25 	(c) ~~The commissioner must adopt a filing schedule that is designed to have all utilities~~ 
53.26 	~~and associations operating under an energy-savings plan by calendar year 2010.~~ Electric 
53.27 	public utilities have a collective goal of 800 megawatts of installed combined heat and 
53.28 	power systems, as defined in subdivision 1, by 2025. Natural gas public utilities have a 
53.29 	collective goal of 34 trillion British thermal units of combined heat and power, as defined 
53.30 	in subdivision 1, by 2025. The commissioner shall, in consultation with utilities and 
53.31 	stakeholders, establish the following by December 31, 2018:
53.32 	(1) specific combined heat and power goals for each utility that will lead to cumulative 
53.33 	achievement of 800 megawatts and 34 trillion British thermal units;
53.34 	(2) eligible technologies for inclusion in the combined heat and power goal;
54.1 	(3) combined heat and power system efficiency standards;
54.2 	(4) utility combined heat and power project evaluation criteria;
54.3 	(5) methodologies for quantifying performance metrics of combined heat and power 
54.4 	systems;
54.5 	(6) attribution of energy savings between electric and natural gas utilities; and
54.6 	(7) measurement and verification requirements.
54.7 	(d) By October 1, 2017, electric public utilities and natural gas public utilities shall file 
54.8 	a modification to their respective energy conservation improvement program plans pursuant 
54.9 	to Minnesota Rules, part 7690.0700. Municipal and cooperative utilities or associations 
54.10 	shall file the updated energy-savings goals in the regularly scheduled planning cycle by 
54.11 	June 1, 2018. The commissioner may approve the energy conservation improvement plans 
54.12 	or modifications with the interim goals outlined in clauses (1) and (2). The goals established 
54.13 	in paragraph (b) are effective no later than January 1, 2020:
54.14 	(1) beginning January 1, 2018, each electric public utility shall have a plan to achieve 
54.15 	an energy-savings goal of 1.7 percent and by January 1, 2019, an energy-savings goal of 
54.16 	1.9 percent; and
54.17 	(2) beginning January 1, 2018, each public natural gas utility subject to this section shall 
54.18 	have a plan to achieve an energy-savings goal of 1.2 percent and by January 1, 2019, an 
54.19 	energy-savings goal of 1.4 percent.
54.20 	~~(d)~~ (e) In its energy conservation improvement plan filing, a utility or association may 
54.21 	request the commissioner to adjust its annual energy-savings percentage goal based on its 
54.22 	historical conservation investment experience, customer class makeup, load growth, a 
54.23 	conservation potential study, or other factors the commissioner determines warrants an 
54.24 	adjustment. The commissioner may not approve a plan of a public utility or association 
54.25 	providing electric service that provides for an annual energy-savings goal of less than ~~one~~
54.26 	1.5 percent of gross annual retail energy sales from energy conservation improvements, and 
54.27 	not less than one percent gross annual retail energy sales from energy conservation 
54.28 	improvements from a utility providing natural gas service.
54.29 	~~A~~ An electric utility or association may include in its energy conservation plan energy 
54.30 	savings from electric utility infrastructure projects approved by the commission under 
54.31 	section 216B.1636, combined heat and power systems, or waste heat recovery converted 
54.32 	into electricity projects that may count as energy savings in addition to a minimum 
54.33 	energy-savings goal of at least ~~one~~ 1.5 percent for energy conservation improvements. 
55.1 	Energy savings from electric utility infrastructure projects, as defined in section 216B.1636, 
55.2 	may be included in the energy conservation plan of a ~~municipal utility or cooperative electric~~ 
55.3 	~~association~~ public utility or association. Electric utility infrastructure projects must result 
55.4 	in increased energy efficiency greater than that which would have occurred through normal 
55.5 	maintenance activity.
55.6 	~~(e)~~ (f) An energy-savings goal is not satisfied by attaining the revenue expenditure 
55.7 	requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the 
55.8 	energy-savings goal established in this subdivision.
55.9 	~~(f)~~ (g) An association or utility is not required to make energy conservation investments 
55.10 	to attain the energy-savings goals of this subdivision that are not cost-effective even if the 
55.11 	investment is necessary to attain the energy-savings goals. For the purpose of this paragraph, 
55.12 	in determining cost-effectiveness, the commissioner shall consider the costs and benefits 
55.13 	to ratepayers, the utility, participants, and society. In addition, the commissioner shall 
55.14 	consider the rate at which an association or municipal utility is increasing its energy savings 
55.15 	and its expenditures on energy conservation.
55.16 	~~(g)~~ (h) On an annual basis, the commissioner shall produce and make publicly available 
55.17 	a report on the annual energy savings and estimated carbon dioxide reductions achieved by 
55.18 	the energy conservation improvement programs for the two most recent years for which 
55.19 	data is available. The commissioner shall report on program performance both in the 
55.20 	aggregate and for each entity filing an energy conservation improvement plan for approval 
55.21 	or review by the commissioner.
55.22 	~~(h) By January 15, 2010, the commissioner shall report to the legislature whether the~~ 
55.23 	~~spending requirements under subdivisions 1a and 1b are necessary to achieve the~~ 
55.24 	~~energy-savings goals established in this subdivision.~~

55.25 	Sec. 29. Minnesota Statutes 2016, section 216B.241, subdivision 1d, is amended to read:
55.26 		Subd. 1d.Technical assistance. ~~(a)~~ The commissioner shall evaluate energy conservation 
55.27 	improvement programs on the basis of cost-effectiveness and the reliability of the 
55.28 	technologies employed. The commissioner shall, by order, establish, maintain, and update 
55.29 	energy-savings assumptions that must be used when filing energy conservation improvement 
55.30 	programs. The commissioner shall establish an inventory of the most effective energy 
55.31 	conservation programs, techniques, and technologies, and encourage all Minnesota utilities 
55.32 	to implement them, where appropriate, in their service territories. The commissioner shall 
55.33 	describe these programs in sufficient detail to provide a utility reasonable guidance 
55.34 	concerning implementation. The commissioner shall prioritize the opportunities in order of 
56.1 	potential energy savings and in order of cost-effectiveness. The commissioner may contract 
56.2 	with a third party to carry out any of the commissioner's duties under this subdivision, and 
56.3 	to obtain technical assistance to evaluate the effectiveness of any conservation improvement 
56.4 	program. The commissioner may assess up to $850,000 annually for the purposes of this 
56.5 	subdivision. The assessments must be deposited in the state treasury and credited to the 
56.6 	energy and conservation account created under subdivision 2a. An assessment made under 
56.7 	this subdivision is not subject to the cap on assessments provided by section 216B.62, or 
56.8 	any other law.
56.9 	~~(b) Of the assessment authorized under paragraph (a), the commissioner may expend~~ 
56.10 	~~up to $400,000 annually for the purpose of developing, operating, maintaining, and providing~~ 
56.11 	~~technical support for a uniform electronic data reporting and tracking system available to~~ 
56.12 	~~all utilities subject to this section, in order to enable accurate measurement of the cost and~~ 
56.13 	~~energy savings of the energy conservation improvements required by this section. This~~ 
56.14 	~~paragraph expires June 30, 2017, and may be used for no more than three annual assessments~~ 
56.15 	~~occurring prior to that date.~~

56.16 	Sec. 30. Minnesota Statutes 2016, section 216B.241, subdivision 3, is amended to read:
56.17 		Subd. 3.Ownership of energy conservation improvement. An energy conservation 
56.18 	improvement made to or installed in a building in accordance with this section, except 
56.19 	systems owned by the utility and designed to turn off, limit, or vary the delivery of energy,
56.20 	including combined heat and power systems, are the exclusive property of the owner of the 
56.21 	building except to the extent that the improvement is subjected to a security interest in favor 
56.22 	of the utility in case of a loan to the building owner. The utility has no liability for loss, 
56.23 	damage or injury caused directly or indirectly by an energy conservation improvement 
56.24 	except for negligence by the utility in purchase, installation, or modification of the product.

56.25 	Sec. 31. Minnesota Statutes 2016, section 216B.241, subdivision 5a, is amended to read:
56.26 		Subd. 5a.Qualifying solar energy project. (a) A utility or association may include in 
56.27 	its conservation plan programs for the installation of qualifying solar energy projects as 
56.28 	defined by section 216B.2411 to the extent of the spending allowed for generation projects 
56.29 	by section 216B.2411. The cost-effectiveness of a qualifying solar energy project may be 
56.30 	determined by a different standard than for other energy conservation improvements under 
56.31 	this section if the commissioner determines it is in the public interest to do so to encourage 
56.32 	solar energy projects. Energy savings from qualifying solar energy projects implemented 
56.33 	in electric public utility or association service territories may not be counted toward the 
57.1 	minimum energy-savings goal of at least ~~one~~ two percent for energy conservation 
57.2 	improvements required under subdivision 1c, but may, if the conservation plan is approved:
57.3 	(1) be counted toward energy savings above that minimum percentage; and
57.4 	(2) be eligible for a performance incentive under section 216B.16, subdivision 6c, or 
57.5 	216B.241, subdivision 2c, that is distinct from the incentive for energy conservation and is 
57.6 	based on the competitiveness and cost-effectiveness of solar projects in relation to other 
57.7 	potential solar projects available to the utility.
57.8 	(b) Qualifying solar energy projects may not be considered when establishing 
57.9 	demand-side management targets under section 216B.2422, 216B.243, or any other section 
57.10 	of this chapter.

57.11 	Sec. 32. Minnesota Statutes 2016, section 239.101, subdivision 2, is amended to read:
57.12 		Subd. 2.Weights and measures fees. The director shall charge a fee to the owner for 
57.13 	inspecting and testing weights and measures, providing metrology services and consultation, 
57.14 	and providing petroleum quality assurance tests at the request of a licensed distributor. 
57.15 	Money collected by the director must be paid into the state treasury ~~and~~ as follows: (1) ten 
57.16 	percent of metrology fees and 20 percent of all other fees must be credited to the petroleum 
57.17 	inspection fee account; and (2) the remainder must be credited to the state general fund.

57.18 	Sec. 33. Minnesota Statutes 2016, section 332.30, is amended to read:
57.19 	332.30 ACCELERATED MORTGAGE PAYMENT PROVIDER; BOND 
57.20 	REQUIREMENTS.
57.21 	(a) Before beginning business in this state, an accelerated mortgage payment provider, 
57.22 	as defined in section 332A.02, subdivision 8, clause (9), shall submit to the commissioner 
57.23 	of commerce an authorization fee of ~~$250~~ $280 and either:
57.24 	(1) a surety bond in which the accelerated mortgage payment provider is the obligor, in 
57.25 	an amount determined by the commissioner; or
57.26 	(2) if the commissioner agrees to accept it, a deposit:
57.27 	(i) in cash in an amount equivalent to the bond amount; or
57.28 	(ii) of authorized securities, as defined in section 50.14, with an aggregate market value 
57.29 	equal to the bond amount. The cash or securities must be deposited with the commissioner 
57.30 	of management and budget.
58.1 	(b) The amount of the bond required by the commissioner shall vary with the amount 
58.2 	of Minnesota client funds held or to be held by the obligor. For new businesses, the bond 
58.3 	must be no less than $100,000, except as provided in section 332.301. The commissioner 
58.4 	may increase the required bond amount upon 30 days' notice to the accelerated mortgage 
58.5 	payment provider.
58.6 	(c) If a bond is submitted, it must name as surety an insurance company authorized to 
58.7 	transact fidelity and surety business in this state. The bond must run to the state of Minnesota 
58.8 	for the use of the state and of any person who may have a claim against the obligor arising 
58.9 	out of the obligor's activities as an accelerated mortgage payment provider. The bond must 
58.10 	be conditioned that the obligor will not commit any fraudulent act and will faithfully conform 
58.11 	to and abide by the provisions of accelerated mortgage payment agreements with Minnesota 
58.12 	residents.
58.13 	If an accelerated mortgage payment provider has failed to account to a mortgagor or 
58.14 	distribute funds to the mortgagee as required by an accelerated mortgage payment agreement, 
58.15 	the mortgagor or the mortgagor's legal representative or receiver or the commissioner shall 
58.16 	have, in addition to any other legal remedies, a right of action in the name of the debtor on 
58.17 	the bond or the security given pursuant to this section.
58.18 	(d) An annual license fee of $280 must be submitted with the annual renewal in the 
58.19 	Nationwide Multi-State Licensing System.

58.20 	Sec. 34. Minnesota Statutes 2016, section 332.54, subdivision 7, is amended to read:
58.21 		Subd. 7.Fees. The fee for a credit services organization's registration is ~~$1,000~~ $1,530
58.22 	for issuance or renewal for each location of business.

58.23 	Sec. 35. Minnesota Statutes 2016, section 332A.06, is amended to read:
58.24 	332A.06 RENEWAL OF REGISTRATION.
58.25 	Each year, each registrant under the provisions of this chapter must, not more than 60 
58.26 	nor less than 30 days before its registration is to expire, apply to the commissioner for 
58.27 	renewal of its registration on a form prescribed by the commissioner. The application must 
58.28 	be signed by the registrant under penalty of perjury, contain current information on all 
58.29 	matters required in the original application, and be accompanied by a payment of ~~$250~~
58.30 	$530. The registrant must maintain a continuous surety bond that satisfies the requirements 
58.31 	of section 332A.04, subdivision 4, provided that the commissioner may require a different 
58.32 	amount that is at least equal to the largest amount that has accrued in the registrant's trust 
59.1 	account during the previous year. The renewal is effective for one year. The commissioner 
59.2 	may, for good cause shown, temporarily waive any requirement of this section.

59.3 	Sec. 36. Minnesota Statutes 2016, section 332B.04, subdivision 6, is amended to read:
59.4 		Subd. 6.Renewal of registration. Each year, each registrant under the provisions of 
59.5 	this chapter must, not more than 60 nor less than 30 days before its registration is to expire, 
59.6 	apply to the commissioner for renewal of its registration on a form prescribed by the 
59.7 	commissioner. The application must be signed by the registrant under penalty of perjury, 
59.8 	contain current information on all matters required in the original application, and be 
59.9 	accompanied by a payment of ~~$250~~ $530. The registrant must maintain a continuous surety 
59.10 	bond that satisfies the requirements of section 332A.04, subdivision 4. The renewal is 
59.11 	effective for one year. The commissioner may, for good cause shown, temporarily waive 
59.12 	any requirement of this section.

59.13 	Sec. 37.  REPEALER.
 59.14 	(a) Laws 2009, chapter 37, article 3, section 4, is repealed retroactively from the day 
59.15 	following its final enactment.
59.16 	(b) Minnesota Statutes 2016, section 46.131, subdivision 5, is repealed.

59.17 	ARTICLE 3
59.18 	DEPARTMENT OF LABOR AND INDUSTRY

59.19 	Section 1. Minnesota Statutes 2016, section 175.45, is amended to read:
59.20 	175.45 ~~COMPETENCY~~ STANDARDS FOR DUAL TRAINING.
59.21 		Subdivision 1.Duties; goal. The commissioner of labor and industry shall convene 
59.22 	industry representatives, identify occupational competency standards ~~for dual training~~, and 
59.23 	provide technical assistance to develop dual-training programs. ~~The goal of dual training~~ 
59.24 	~~is to provide employees of an employer with training to acquire competencies that the~~ 
59.25 	~~employer requires.~~ The competency standards shall be identified for employment in 
59.26 	occupations in advanced manufacturing, health care services, information technology, and 
59.27 	agriculture. Competency standards are not rules and are exempt from the rulemaking 
59.28 	provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do 
59.29 	not apply.
59.30 		Subd. 2.~~Definition; competency standards~~ Definitions. For purposes of this section, 
59.31 	the following terms have the meanings given them:
60.1 	(1) "competency standards" means the specific knowledge and skills necessary for a 
60.2 	particular occupation~~.~~; and
60.3 	(2) "dual-training program" means an employment-based earn-as-you-learn program 
60.4 	where the trainee is employed by a participating employer and receives structured on-the-job 
60.5 	training and technical instruction in accordance with the competency standards.
60.6 		Subd. 3.Competency standards identification process. In identifying competency 
60.7 	standards, the commissioner shall consult with the commissioner of the Office of Higher 
60.8 	Education and the commissioner of employment and economic development and convene 
60.9 	recognized industry experts, representative employers, higher education institutions, 
60.10 	representatives of the disabled community, and representatives of labor to assist in identifying 
60.11 	credible competency standards. Competency standards must be consistent with, to the extent 
60.12 	available and practical, recognized international and national standards.
60.13 		Subd. 4.Duties. The commissioner shall:
60.14 	(1) convene industry representatives to identify, develop, and implement dual-training 
60.15 	programs;
60.16 	(2) identify competency standards for ~~entry level~~ entry-level and higher skill levels;
60.17 	~~(2)~~ (3) verify the competency standards and skill levels and their transferability by subject 
60.18 	matter expert representatives of each respective industry;
60.19 	~~(3)~~ (4) develop models for Minnesota educational institutions to engage in providing 
60.20 	education and training to meet the competency standards established;
60.21 	~~(4)~~ (5) encourage participation by employers and labor in the competency standard 
60.22 	identification process for occupations in their industry; ~~and~~
60.23 	~~(5)~~ (6) align ~~dual training competency standards~~ dual-training programs with other 
60.24 	workforce initiatives~~.~~; and
60.25 	(7) provide technical assistance to develop dual-training programs.
60.26 		Subd. 5.Notification. The commissioner must communicate identified competency 
60.27 	standards to the commissioner of the Office of Higher Education for the purpose of the ~~dual~~ 
60.28 	~~training~~ dual-training competency grant program under section 136A.246. The commissioner 
60.29 	of labor and industry shall maintain the competency standards on the department's Web 
60.30 	site.

61.1 	Sec. 2. Minnesota Statutes 2016, section 177.27, subdivision 2, is amended to read:
61.2 		Subd. 2.Submission of records; penalty. The commissioner may require the employer 
61.3 	of employees working in the state to submit to the commissioner photocopies, certified 
61.4 	copies, or, if necessary, the originals of employment records which the commissioner deems 
61.5 	necessary or appropriate. The records which may be required include full and correct 
61.6 	statements in writing, including sworn statements by the employer, containing information 
61.7 	relating to wages, hours, names, addresses, and any other information pertaining to the 
61.8 	employer's employees and the conditions of their employment as the commissioner deems 
61.9 	necessary or appropriate.
61.10 	The commissioner may require the records to be submitted in a specific format by 
61.11 	certified mail delivery or, if necessary, by personal delivery by the employer or a 
61.12 	representative of the employer, as authorized by the employer in writing.
61.13 	The commissioner may fine the employer up to ~~$1,000~~ $10,000 for each failure to submit 
61.14 	or deliver records as required by this section. This penalty is in addition to any penalties 
61.15 	provided under section 177.32, subdivision 1. In determining the amount of a civil penalty 
61.16 	under this subdivision, the appropriateness of such penalty to the size of the employer's 
61.17 	business and the gravity of the violation shall be considered.

61.18 	Sec. 3. Minnesota Statutes 2016, section 177.27, is amended by adding a subdivision to 
61.19 	read:
61.20 		Subd. 11.Subpoenas. In order to carry out the purposes of this section, the commissioner 
61.21 	may issue subpoenas to compel persons to appear before the commissioner to give testimony 
61.22 	and produce documents, apparatus, devices, equipment, or materials. Upon the application 
61.23 	of the commissioner, a district court shall treat the failure of any person to obey a subpoena 
61.24 	lawfully issued by the commissioner under this subdivision as a contempt of court.

61.25 	Sec. 4. Minnesota Statutes 2016, section 177.30, is amended to read:
61.26 	177.30 KEEPING RECORDS; PENALTY.
61.27 	(a) Every employer subject to sections 177.21 to 177.44 must make and keep a record 
61.28 	of:
61.29 	(1) the name, address, and occupation of each employee;
61.30 	(2) the rate of pay, and the amount paid each pay period to each employee, including 
61.31 	whether each employee is paid by the hour, shift, day, week, salary, piece, commission, or 
61.32 	other;
62.1 	(3) the hours worked each day and each workweek by the employee, including for all 
62.2 	employees paid at piece rate, the number of pieces completed at each piece rate;
62.3 	(4) any personnel policies provided to employees;
62.4 	(5) a copy of the notice provided to each employee as required by section 181.032, clause 
62.5 	(d);
62.6 	(6) for each employer subject to sections 177.41 to 177.44, and while performing work 
62.7 	on public works projects funded in whole or in part with state funds, the employer shall 
62.8 	furnish under oath signed by an owner or officer of an employer to the contracting authority 
62.9 	and the project owner every two weeks, a certified payroll report with respect to the wages 
62.10 	and benefits paid each employee during the preceding weeks specifying for each employee: 
62.11 	name; identifying number; prevailing wage master job classification; hours worked each 
62.12 	day; total hours; rate of pay; gross amount earned; each deduction for taxes; total deductions; 
62.13 	net pay for week; dollars contributed per hour for each benefit, including name and address 
62.14 	of administrator; benefit account number; and telephone number for health and welfare, 
62.15 	vacation or holiday, apprenticeship training, pension, and other benefit programs; and
62.16 	~~(5)~~ (7) other information the commissioner finds necessary and appropriate to enforce 
62.17 	sections 177.21 to 177.435. The records must be kept for three years in ~~or near~~ the premises 
62.18 	where an employee works except each employer subject to sections 177.41 to 177.44, and 
62.19 	while performing work on public works projects funded in whole or in part with state funds, 
62.20 	the records must be kept for three years after the contracting authority has made final payment 
62.21 	on the public works project.
62.22 	(b) All records required to be kept under paragraph (a) must be readily available for 
62.23 	inspection by the commissioner on the premises of employment during reasonable office 
62.24 	hours under section 177.27, subdivision 1.
62.25 	(c) The commissioner may fine an employer up to ~~$1,000~~ $10,000 for each failure to 
62.26 	maintain records as required by this section. This penalty is in addition to any penalties 
62.27 	provided under section 177.32, subdivision 1. In determining the amount of a civil penalty 
62.28 	under this subdivision, the appropriateness of such penalty to the size of the employer's 
62.29 	business and the gravity of the violation shall be considered.

62.30 	Sec. 5. Minnesota Statutes 2016, section 177.32, subdivision 1, is amended to read:
62.31 		Subdivision 1.Misdemeanors. (a) An employer who does any of the following is guilty 
62.32 	of a misdemeanor:
63.1 	(1) hinders or delays the commissioner in the performance of duties required under 
63.2 	sections 177.21 to 177.435;
63.3 	(2) refuses to admit the commissioner to the place of business or employment of the 
63.4 	employer, as required by section 177.27, subdivision 1;
63.5 	(3) repeatedly fails to make, keep, and preserve records as required by section 177.30;
63.6 	(4) falsifies any record;
63.7 	(5) refuses to make any record available, or to furnish a sworn statement of the record 
63.8 	or any other information as required by section 177.27;
63.9 	(6) repeatedly fails to post a summary of sections 177.21 to 177.44 or a copy or summary 
63.10 	of the applicable rules as required by section 177.31;
63.11 	(7) pays or agrees to pay wages at a rate less than the rate required under sections 177.21
63.12 	to 177.44;
63.13 	(8) refuses to allow adequate time from work as required by section 177.253; or
63.14 	(9) otherwise violates any provision of sections 177.21 to 177.44.
63.15 	(b) An employer is guilty of a gross misdemeanor if the employer fails to pay any wages 
63.16 	due to an employee or employees under sections 177.21 to 177.44, and the total of any such 
63.17 	wages in relation to all affected employees is $10,000 or more.

63.18 	Sec. 6. Minnesota Statutes 2016, section 181.03, subdivision 1, is amended to read:
63.19 		Subdivision 1.Prohibited practices. ~~An employer may not, directly or indirectly and~~ 
63.20 	~~with intent to defraud:~~ (a) No employer shall commit wage theft.
63.21 	(b) For purposes of this section, wage theft is committed if:
63.22 	(1) ~~cause~~ an employer has failed to pay an employee all wages to which that employee 
63.23 	is entitled;
63.24 	(2) an employer directly or indirectly causes any employee to give a receipt for wages 
63.25 	for a greater amount than that actually paid to the employee for services rendered;
63.26 	~~(2)~~ (3) an employer directly or indirectly ~~demand~~ demands or ~~receive~~ receives from any 
63.27 	employee any rebate or refund from the wages owed the employee under contract of 
63.28 	employment with the employer; ~~or~~
64.1 	~~(3)~~ (4) an employer in any manner ~~make~~ makes or ~~attempt~~ attempts to make it appear 
64.2 	that the wages paid to any employee were greater than the amount actually paid to the 
64.3 	employee~~.~~; or
64.4 	(5) an employer retaliates against an employee for asserting rights or remedies under 
64.5 	this section, including but not limited to filing a complaint with the Department of Labor 
64.6 	and Industry or telling the employer of intention to file a complaint.

64.7 	Sec. 7. Minnesota Statutes 2016, section 181.03, is amended by adding a subdivision to 
64.8 	read:
64.9 		Subd. 4.Enforcement. The commissioner may enforce this section. The use of an 
64.10 	enforcement provision in this section shall not preclude the use of any other enforcement 
64.11 	provision provided by law.

64.12 	Sec. 8. Minnesota Statutes 2016, section 181.03, is amended by adding a subdivision to 
64.13 	read:
64.14 		Subd. 5.Citations. The commissioner may issue a citation for failure to pay wages of 
64.15 	up to $1,000 by serving the citation on the employer. The citation shall direct the employer 
64.16 	to pay to the commissioner any back pay, gratuities, and compensatory damages owed to 
64.17 	the employee within 15 days. The citation may require the employer to correct the violation, 
64.18 	may require the employer to cease and desist from committing the violation, and may assess 
64.19 	a monetary penalty of up to $1,000. In determining the amount of the monetary penalty, 
64.20 	the commissioner shall consider the factors described in section 14.045, subdivision 3. If 
64.21 	the citation includes a penalty assessment, then the penalty is due and payable on the date 
64.22 	the citation becomes final. The commissioner shall vacate the citation if: (1) before the 
64.23 	citation was issued, the employer paid to the employee the back pay, gratuities, and 
64.24 	compensatory damages specified in the citation; and (2) within the five days after the citation 
64.25 	is issued, the employer provides to the commissioner evidence acceptable to the 
64.26 	commissioner that the employer made the payment described in clause (1).

64.27 	Sec. 9. Minnesota Statutes 2016, section 181.03, is amended by adding a subdivision to 
64.28 	read:
64.29 		Subd. 6.Administrative review. (a) Within 15 days after the commissioner issues a 
64.30 	citation under subdivision 5, the employer to whom the citation is issued may request an 
64.31 	expedited hearing to review the citation. The request for hearing must be in writing and 
64.32 	must be served on the commissioner at the address specified in the citation. If the employer 
65.1 	does not request a hearing or if the employer's written request for hearing is not served on 
65.2 	the commissioner by the 15th day after the commissioner issues the citation, the citation 
65.3 	becomes a final order of the commissioner and is not subject to review by any court or 
65.4 	agency. The hearing request must state the reasons for seeking review of the citation. The 
65.5 	employer to whom the citation is issued and the commissioner are the parties to the expedited 
65.6 	hearing. The commissioner must notify the employer to whom the citation is issued of the 
65.7 	time and place of the hearing at least 15 days before the hearing. The hearing shall be 
65.8 	conducted under Minnesota Rules, parts 1400.8510 to 1400.8612, as modified by this 
65.9 	section. If a hearing has been held, the commissioner shall not issue a final order until at 
65.10 	least five days after the date of the administrative law judge's report. Any person aggrieved 
65.11 	by the administrative law judge's report may, within those five days, serve written comments 
65.12 	to the commissioner on the report and the commissioner shall consider and enter the 
65.13 	comments in the record. The commissioner's final order shall comply with sections 14.61, 
65.14 	subdivision 2, and 14.62, subdivisions 1 and 2a, and may be appealed in the manner provided 
65.15 	in sections 14.63 to 14.69.
65.16 	(b) When an employer to whom a citation under subdivision 5 was issued requests an 
65.17 	expedited hearing under paragraph (a), the employer is presumed to have committed each 
65.18 	violation listed in the citation. The employer to whom the citation was issued may rebut 
65.19 	this presumption by showing that the employer did not commit the violation.

65.20 	Sec. 10. Minnesota Statutes 2016, section 181.03, is amended by adding a subdivision to 
65.21 	read:
65.22 		Subd. 7.Effect on other laws. Nothing in this section shall be construed to limit the 
65.23 	application of other state or federal laws.

65.24 	Sec. 11. Minnesota Statutes 2016, section 181.032, is amended to read:
65.25 	181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER; NOTICE 
65.26 	TO EMPLOYEE.
65.27 	(a) At the end of each pay period, the employer shall provide each employee an earnings 
65.28 	statement, either in writing or by electronic means, covering that pay period. An employer 
65.29 	who chooses to provide an earnings statement by electronic means must provide employee 
65.30 	access to an employer-owned computer during an employee's regular working hours to 
65.31 	review and print earnings statements.
65.32 	(b) The earnings statement may be in any form determined by the employer but must 
65.33 	include:
66.1 	(1) the name of the employee;
66.2 	(2) the ~~hourly~~ rate or rates of pay ~~(if applicable)~~ and basis thereof, including whether 
66.3 	the employee is paid by hour, shift, day, week, salary, piece, commission, or other method;
66.4 	(3) allowances, if any, claimed pursuant to permitted meals and lodging;
66.5 	(4) the total number of hours worked by the employee unless exempt from chapter 177;
66.6 	~~(4)~~ (5) the total amount of gross pay earned by the employee during that period;
66.7 	~~(5)~~ (6) a list of deductions made from the employee's pay;
66.8 	~~(6)~~ (7) the net amount of pay after all deductions are made;
66.9 	~~(7)~~ (8) the date on which the pay period ends; ~~and~~
66.10 	~~(8)~~ (9) the legal name of the employer and the operating name of the employer if different 
66.11 	from the legal name~~.~~;
66.12 	(10) the physical address of the employer's main office or principal place of business, 
66.13 	and a mailing address if different; and
66.14 	(11) the telephone number of the employer.
66.15 	(c) An employer must provide earnings statements to an employee in writing, rather 
66.16 	than by electronic means, if the employer has received at least 24 hours notice from an 
66.17 	employee that the employee would like to receive earnings statements in written form. Once 
66.18 	an employer has received notice from an employee that the employee would like to receive 
66.19 	earnings statements in written form, the employer must comply with that request on an 
66.20 	ongoing basis.
66.21 	(d) At the start of employment, an employer shall provide each employee a written notice 
66.22 	containing the following information:
66.23 	(1) the rate or rates of pay and basis thereof, including whether the employee is paid by 
66.24 	the hour, shift, day, week, salary, piece, commission, or other method;
66.25 	(2) allowances, if any, claimed pursuant to permitted meals and lodging;
66.26 	(3) paid vacation, sick time, or other paid time off accruals and terms of use;
66.27 	(4) whether the employee is exempt from minimum wage, overtime, and other provisions 
66.28 	of chapter 177, and on what basis;
66.29 	(5) a list of deductions that may be made from the employee's pay;
66.30 	(6) the dates on which the pay periods start and end and the regularly scheduled payday;
67.1 	(7) the legal name of the employer and the operating name of the employer if different 
67.2 	from the legal name;
67.3 	(8) the physical address of the employer's main office or principal place of business, and 
67.4 	a mailing address if different; and
67.5 	(9) the telephone number of the employer.
67.6 	(e) The employer must keep a copy of the notice under paragraph (d) signed by each 
67.7 	employee acknowledging receipt of the notice. The notice must be provided to each employee 
67.8 	in English and in the employee's native language.
67.9 	(f) An employer must provide the employee any written changes to the information 
67.10 	contained in the notice under paragraph (d) at least seven calendar days prior to the time 
67.11 	the changes take effect. The changes must be signed by the employee before the changes 
67.12 	go into effect. The employer must keep a signed copy of all notice of changes as well as 
67.13 	the initial notices under paragraph (d).

67.14 	Sec. 12. Minnesota Statutes 2016, section 181.101, is amended to read:
67.15 	181.101 WAGES; HOW OFTEN PAID.
67.16 	(a) Except as provided in paragraph (b), every employer must pay all wages earned by 
67.17 	an employee at least once every ~~31~~ 16 days on a regular payday designated in advance by 
67.18 	the employer regardless of whether the employee requests payment at longer intervals. 
67.19 	~~Unless paid earlier, the wages earned during the first half of the first 31-day pay period~~ 
67.20 	~~become due on the first regular payday following the first day of work.~~ Payment for the 
67.21 	first day of work must be received no later than the first regular payday after the first 16 
67.22 	calendar days of employment or within 31 calendar days of the first day of employment, 
67.23 	whichever comes first. If wages earned are not paid, the commissioner of labor and industry 
67.24 	or the commissioner's representative may demand payment on behalf of an employee. If 
67.25 	payment is not made within ~~ten~~ five days of demand, the commissioner may charge and 
67.26 	collect the wages earned and a penalty in the amount of the employee's average daily earnings 
67.27 	at the rate agreed upon in the contract of employment, not exceeding 15 days in all, for each 
67.28 	day beyond the ~~ten-day~~ five-day limit following the demand. Money collected by the 
67.29 	commissioner must be paid to the employee concerned. This section does not prevent an 
67.30 	employee from prosecuting a claim for wages. This section does not prevent a school district, 
67.31 	other public school entity, or other school, as defined under section 120A.22, from paying 
67.32 	any wages earned by its employees during a school year on regular paydays in the manner 
67.33 	provided by an applicable contract or collective bargaining agreement, or a personnel policy 
68.1 	adopted by the governing board. For purposes of this section, "employee" includes a person 
68.2 	who performs agricultural labor as defined in section 181.85, subdivision 2. For purposes 
68.3 	of this section, wages are earned on the day an employee works.
68.4 	(b) An employer of a volunteer firefighter, as defined in section 424A.001, subdivision 
68.5 	10, a member of an organized first responder squad that is formally recognized by a political 
68.6 	subdivision in the state, or a volunteer ambulance driver or attendant must pay all wages 
68.7 	earned by the volunteer firefighter, first responder, or volunteer ambulance driver or attendant 
68.8 	at least once every 31 days, unless the employer and the employee mutually agree upon 
68.9 	payment at longer intervals.

68.10 	Sec. 13. Minnesota Statutes 2016, section 326B.092, subdivision 7, is amended to read:
68.11 		Subd. 7.License fees and license renewal fees. (a) The license fee for each license is 
68.12 	the base license fee plus any applicable board fee, continuing education fee, and contractor 
68.13 	recovery fund fee and additional assessment, as set forth in this subdivision.
68.14 	(b) For purposes of this section, "license duration" means the number of years for which 
68.15 	the license is issued except that if the initial license is not issued for a whole number of 
68.16 	years, the license duration shall be rounded up to the next whole number.
68.17 	(c) The base license fee shall depend on whether the license is classified as an entry 
68.18 	level, master, journeyman, or business license, and on the license duration. The base license 
68.19 	fee shall be:

68.20 | | License Classification | License Duration |
68.21 | | | 1 year | 2 years
68.22 | | Entry level | $10 | $20
68.23 | | Journeyworker | $20 | $40
68.24 | | Master | $40 | $80
68.25 | | Business | | $180
68.26 	(d) If there is a continuing education requirement for renewal of the license, then a 
68.27 	continuing education fee must be included in the renewal license fee. The continuing 
68.28 	education fee for all license classifications shall be: $10 if the renewal license duration is 
68.29 	one year; and $20 if the renewal license duration is two years.
68.30 	(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.925, 
68.31 	then a board fee must be included in the license fee and the renewal license fee. The board 
68.32 	fee for all license classifications shall be: $4 if the license duration is one year; and $8 if 
68.33 	the license duration is two years.
69.1 	(f) If the application is for the renewal of a license issued under sections 326B.802 to 
69.2 	326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision 
69.3 	3, and any additional assessment required under section 326B.89, subdivision 16, must be 
69.4 	included in the license renewal fee.
69.5 	(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period 
69.6 	July 1, ~~2015~~ 2017, through ~~June 30, 2017~~ September 30, 2021, the following fees apply:

69.7 | | License Classification | License Duration |
69.8 | | | 1 year | 2 years
69.9 | | Entry level | $10 | $20
69.1169.10

Journeyworker

$15

~~$35~~
$30

69.1369.12

Master

$30

~~$75~~
$60

69.1569.14

Business

~~$160~~
$120

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

69.19 	Sec. 14. [326B.108] PLACES OF PUBLIC ACCOMMODATION SUBJECT TO 
69.20 	CODE.
69.21 		Subdivision 1.Definition. For purposes of this section, "place of public accommodation" 
69.22 	means a publicly or privately owned facility that is designed for occupancy by 200 or more 
69.23 	people and includes a sports or entertainment arena, stadium, theater, community or 
69.24 	convention hall, special event center, indoor amusement facility or water park, or swimming 
69.25 	pool.
69.26 		Subd. 2.Application.  Construction, additions, and alterations to a place of public 
69.27 	accommodation must be designed and constructed to comply with the State Building Code.
69.28 		Subd. 3.Enforcement. In a municipality that has not adopted the code by ordinance 
69.29 	under section 326B.121, subdivision 2, the commissioner shall enforce this section in 
69.30 	accordance with section 326B.107, subdivision 1.

69.31 	Sec. 15. Minnesota Statutes 2016, section 326B.153, subdivision 1, is amended to read:
69.32 		Subdivision 1.Building permits. (a) Fees for building permits submitted as required 
69.33 	in section ~~326B.106~~ 326B.107 include:
70.1 	(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality; 
70.2 	and
70.3 	(2) the surcharge required by section 326B.148.
70.4 	(b) The total valuation and fee schedule is:
70.5 	(1) $1 to $500, ~~$29.50~~ $21;
70.6 	(2) $501 to $2,000, ~~$28~~ $21 for the first $500 plus ~~$3.70~~ $2.75 for each additional $100 
70.7 	or fraction thereof, to and including $2,000;
70.8 	(3) $2,001 to $25,000, ~~$83.50~~ $62.25 for the first $2,000 plus ~~$16.55~~ $12.50 for each 
70.9 	additional $1,000 or fraction thereof, to and including $25,000;
70.10 	(4) $25,001 to $50,000, ~~$464.15~~ $349.75 for the first $25,000 plus ~~$12~~ $9 for each 
70.11 	additional $1,000 or fraction thereof, to and including $50,000;
70.12 	(5) $50,001 to $100,000, ~~$764.15~~ $574.75 for the first $50,000 plus ~~$8.45~~ $6.25 for 
70.13 	each additional $1,000 or fraction thereof, to and including $100,000;
70.14 	(6) $100,001 to $500,000, ~~$1,186.65~~ $887.25 for the first $100,000 plus ~~$6.75~~ $5 for 
70.15 	each additional $1,000 or fraction thereof, to and including $500,000;
70.16 	(7) $500,001 to $1,000,000, ~~$3,886.65~~ $2,887.25 for the first $500,000 plus ~~$5.50~~ $4.25
70.17 	for each additional $1,000 or fraction thereof, to and including $1,000,000; and
70.18 	(8) $1,000,001 and up, ~~$6,636.65~~ $5,012.25 for the first $1,000,000 plus ~~$4.50~~ $2.75
70.19 	for each additional $1,000 or fraction thereof.
70.20 	(c) Other inspections and fees are:
70.21 	(1) inspections outside of normal business hours (minimum charge two hours), $63.25 
70.22 	per hour;
70.23 	(2) reinspection fees, $63.25 per hour;
70.24 	(3) inspections for which no fee is specifically indicated (minimum charge one-half 
70.25 	hour), $63.25 per hour; and
70.26 	(4) additional plan review required by changes, additions, or revisions to approved plans 
70.27 	(minimum charge one-half hour), $63.25 per hour.
70.28 	(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25, 
70.29 	then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment, 
70.30 	hourly wages, and fringe benefits of the employees involved.

71.1 	EFFECTIVE DATE. Paragraph (a) is effective July 1, 2017. Paragraph (b) is effective 
71.2 	July 1, 2017, and the amendments to it expire October 1, 2021.

71.3 	Sec. 16. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision 
71.4 	to read:
71.5 		Subd. 16.Wind electric systems. (a) The inspection fee for the installation of a wind 
71.6 	turbine is:
71.7 	(1) 0 watts to and including 100,000 watts, $80;
71.8 	(2) 100,001 watts to and including 500,000 watts, $105;
71.9 	(3) 500,001 watts to and including 1,000,000 watts, $120;
71.10 	(4) 1,000,001 watts to and including 1,500,000 watts, $125;
71.11 	(5) 1,500,001 watts to and including 2,000,000 watts, $130;
71.12 	(6) 2,000,001 watts to and including 3,000,000 watts, $145; and
71.13 	(7) 3,000,001 watts and larger, $160.
71.14 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
71.15 	current energy output of one individual wind turbine.

71.16 	Sec. 17. Minnesota Statutes 2016, section 326B.37, is amended by adding a subdivision 
71.17 	to read:
71.18 		Subd. 17.Solar photovoltaic systems. (a) The inspection fee for the installation of a 
71.19 	solar photovoltaic system is:
71.20 	(1) 0 watts to and including 5,000 watts, $60;
71.21 	(2) 5,001 watts to and including 10,000 watts, $100;
71.22 	(3) 10,001 watts to and including 20,000 watts, $150;
71.23 	(4) 20,001 watts to and including 30,000 watts, $200;
71.24 	(5) 30,001 watts to and including 40,000 watts, $250;
71.25 	(6) 40,001 watts to and including 1,000,000 watts, $250, and $25 for each additional 
71.26 	10,000 watts over 40,000 watts;
71.27 	(7) 1,000,000 watts to 5,000,000 watts, $2,650, and $15 for each additional 10,000 watts 
71.28 	over 1,000,000 watts; and
72.1 	(8) 5,000,000 watts and larger, $8,650, and $10 for each additional 10,000 watts over 
72.2 	5,000,000 watts.
72.3 	(b) For the purpose of paragraph (a), the watt rating is the total estimated alternating 
72.4 	current energy output of the solar photovoltaic system.

72.5 	Sec. 18. Minnesota Statutes 2016, section 326B.89, subdivision 1, is amended to read:
72.6 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
72.7 	the meanings given them.
72.8 	(b) "Gross annual receipts" means the total amount derived from residential contracting 
72.9 	or residential remodeling activities, regardless of where the activities are performed, and 
72.10 	must not be reduced by costs of goods sold, expenses, losses, or any other amount.
72.11 	(c) "Licensee" means a person licensed as a residential contractor or residential remodeler.
72.12 	(d) "Residential real estate" means a new or existing building constructed for habitation 
72.13 	by one to four families, and includes detached garages intended for storage of vehicles 
72.14 	associated with the residential real estate.
72.15 	(e) "Fund" means the contractor recovery fund.
72.16 	(f) "Owner" when used in connection with real property, means a person who has any 
72.17 	legal or equitable interest in real property and includes a condominium or townhome 
72.18 	association that owns common property located in a condominium building or townhome 
72.19 	building or an associated detached garage. Owner does not include any real estate developer 
72.20 	or any owner using, or intending to use, the property for a business purpose and not as 
72.21 	owner-occupied residential real estate.

72.22 	Sec. 19. Minnesota Statutes 2016, section 326B.89, subdivision 5, is amended to read:
72.23 		Subd. 5.Payment limitations.  The commissioner shall not pay compensation from the 
72.24 	fund to an owner or a lessee in an amount greater than $75,000 per licensee. The 
72.25 	commissioner shall not pay compensation from the fund to owners and lessees in an amount 
72.26 	that totals more than ~~$150,000~~ $300,000 per licensee. The commissioner shall only pay 
72.27 	compensation from the fund for a final judgment that is based on a contract directly between 
72.28 	the licensee and the homeowner or lessee that was entered into prior to the cause of action 
72.29 	and that requires licensure as a residential building contractor or residential remodeler.

72.30 	Sec. 20.  REPEALER.
 72.31 	Minnesota Statutes 2016, section 326B.89, subdivision 14, is repealed.

73.1 	ARTICLE 4
73.2 	DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

73.3 	Section 1. Minnesota Statutes 2016, section 116J.8731, subdivision 2, is amended to read:
73.4 		Subd. 2.Administration.  (a) Except as otherwise provided in this section, the 
73.5 	commissioner shall administer the fund as part of the Small Cities Development Block 
73.6 	Grant Program and funds shall be made available to local communities and recognized 
73.7 	Indian tribal governments in accordance with the rules adopted for economic development 
73.8 	grants in the small cities community development block grant program. All units of general 
73.9 	purpose local government are eligible applicants for Minnesota investment funds. The 
73.10 	commissioner may provide forgivable loans directly to a private enterprise and not require 
73.11 	a local community or recognized Indian tribal government application other than a resolution 
73.12 	supporting the assistance.
73.13 	(b) Eligible applicants for the state-funded portion of the fund also include development 
73.14 	authorities as defined in section 116J.552, subdivision 4, provided that the governing body 
73.15 	of the municipality approves, by resolution, the application of the development authority. 
73.16 	A local government entity may receive more than one award in a fiscal year. The 
73.17 	commissioner may also make funds available within the department for eligible expenditures 
73.18 	under subdivision 3, clause (2).
73.19 	(c) A home rule charter or statutory city, county, or town may loan or grant money 
73.20 	received from repayment of funds awarded under this section to a regional development 
73.21 	commission, other regional entity, or statewide community capital fund as determined by 
73.22 	the commissioner, to capitalize or to provide the local match required for capitalization of 
73.23 	a regional or statewide revolving loan fund. Any repayment of funds to a local entity under 
73.24 	this section may be used for purposes noted in section 116J.407 and for other economic 
73.25 	development purposes including loans to businesses in any industry and community 
73.26 	development planning, and the local entity is not limited by the provisions in this section.

73.27 	Sec. 2. Minnesota Statutes 2016, section 116J.8731, subdivision 5, is amended to read:
73.28 		Subd. 5.Grant limits. A Minnesota investment fund grant may not be approved for an 
73.29 	amount in excess of $1,000,000. This limit covers all money paid to complete the same 
73.30 	project, whether paid to one or more grant recipients and whether paid in one or more fiscal 
73.31 	years. A local community or recognized Indian tribal government may retain 40 percent, 
73.32 	but not more than $100,000, of a Minnesota investment fund grant when it is repaid to the 
73.33 	local community or recognized Indian tribal government by the person or entity to which 
74.1 	it was loaned by the local community or Indian tribal government. Money repaid to the state 
74.2 	must be credited to a Minnesota investment revolving loan account in the state treasury. 
74.3 	Funds in the account are appropriated to the commissioner and must be used in the same 
74.4 	manner as are funds appropriated to the Minnesota investment fund. Funds repaid to the 
74.5 	state through existing Minnesota investment fund agreements must be credited to the 
74.6 	Minnesota investment revolving loan account effective July 1, 2005. A grant or loan may 
74.7 	not be made to a person or entity for the operation or expansion of a casino or a store which 
74.8 	is used solely or principally for retail sales. Persons or entities receiving grants or loans 
74.9 	must pay each employee total compensation, including benefits not mandated by law, that 
74.10 	on an annualized basis is equal to at least 110 percent of the federal poverty level for a 
74.11 	family of four. $2,000,000 of each year's annual appropriation, but no more than 50 percent 
74.12 	of the appropriation, must be allocated to Minnesota businesses owned by minorities, 
74.13 	veterans, women, or persons with a disability. Any unused portion is available for all other 
74.14 	businesses beginning on January 1.

74.15 	Sec. 3. Minnesota Statutes 2016, section 116J.8731, is amended by adding a subdivision 
74.16 	to read:
74.17 		Subd. 10.Transfer. The commissioner may transfer up to $2,000,000 of a fiscal year's 
74.18 	appropriation between the Minnesota job creation fund program and Minnesota investment 
74.19 	fund to meet business demand.

74.20 	Sec. 4. Minnesota Statutes 2016, section 116J.8748, subdivision 1, is amended to read:
74.21 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
74.22 	the meanings given.
74.23 	(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement 
74.24 	under section 116J.994 that must include, but is not limited to: specification of the duration 
74.25 	of the agreement, job goals and a timeline for achieving those goals over the duration of 
74.26 	the agreement, construction and other investment goals and a timeline for achieving those 
74.27 	goals over the duration of the agreement, and the value of benefits the firm may receive 
74.28 	following achievement of capital investment and employment goals. The local government 
74.29 	and business must report to the commissioner on the business performance using the forms 
74.30 	developed by the commissioner.
74.31 	(c) "Business" means an individual, corporation, partnership, limited liability company, 
74.32 	association, or other entity.
75.1 	(d) "Capital investment" means money that is expended for the purpose of building or 
75.2 	improving real fixed property where employees under paragraphs (g) and (h) are or will be 
75.3 	employed and also includes construction materials, services, and supplies, and the purchase 
75.4 	and installation of equipment and machinery as provided under subdivision 4, paragraph 
75.5 	(b), clause (5).
75.6 	(e) "Commissioner" means the commissioner of employment and economic development.
75.7 	(f) "Minnesota job creation fund business" means a business that is designated by the 
75.8 	commissioner under subdivision 3.
75.9 	(g) "Minority person" means a person belonging to a racial or ethnic minority as defined 
75.10 	in Code of Federal Regulations, title 49, section 23.5.
75.11 	~~(g)~~ (h) "New full-time employee" means an employee who:
75.12 	(1) begins work at a Minnesota job creation fund business facility noted in a business 
75.13 	subsidy agreement and following the designation as a job creation fund business; and
75.14 	(2) has expected work hours of at least 2,080 hours annually.
75.15 	(i) "Persons with disabilities" means an individual with a disability, as defined under 
75.16 	the Americans with Disabilities Act, United States Code, title 42, section 12102.
75.17 	~~(h)~~ (j) "Retained job" means a full-time position:
75.18 	(1) that existed at the facility prior to the designation as a job creation fund business; 
75.19 	and
75.20 	(2) has expected work hours of at least 2,080 hours annually.
75.21 	(k) "Veteran" means a veteran as defined in section 197.447.
75.22 	~~(i)~~ (l) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).

75.23 	Sec. 5. Minnesota Statutes 2016, section 116J.8748, subdivision 3, is amended to read:
75.24 		Subd. 3.Minnesota job creation fund business designation; requirements. (a) To 
75.25 	receive designation as a Minnesota job creation fund business, a business must satisfy all 
75.26 	of the following conditions:
75.27 	(1) the business is or will be engaged in, within Minnesota, one of the following as its 
75.28 	primary business activity:
75.29 	(i) manufacturing;
75.30 	(ii) warehousing;
76.1 	(iii) distribution;
76.2 	(iv) information technology;
76.3 	(v) finance;
76.4 	(vi) insurance; or
76.5 	(vii) professional or technical services;
76.6 	(2) the business must not be primarily engaged in lobbying; gambling; entertainment; 
76.7 	professional sports; political consulting; leisure; hospitality; or professional services provided 
76.8 	by attorneys, accountants, business consultants, physicians, or health care consultants, or 
76.9 	primarily engaged in making retail sales to purchasers who are physically present at the 
76.10 	business's location;
76.11 	(3) the business must enter into a binding construction and job creation business subsidy 
76.12 	agreement with the commissioner to expend directly, or ensure expenditure by or in 
76.13 	partnership with a third party constructing or managing the project, at least $500,000 in 
76.14 	capital investment in a capital investment project that includes a new, expanded, or remodeled 
76.15 	facility within one year following designation as a Minnesota job creation fund business or 
76.16 	$250,000 if the project is located outside the metropolitan area as defined in section 200.02, 
76.17 	subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, 
76.18 	women, or persons with a disability; and:
76.19 	(i) create at least ten new full-time employee positions within two years of the benefit 
76.20 	date following the designation as a Minnesota job creation fund business or five new full-time 
76.21 	employee positions within two years of the benefit date if the project is located outside the 
76.22 	metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business 
76.23 	is cumulatively owned by minorities, veterans, women, or persons with a disability; or
76.24 	(ii) expend at least $25,000,000, which may include the installation and purchase of 
76.25 	machinery and equipment, in capital investment and retain at least 200 employees for projects 
76.26 	located in the metropolitan area as defined in section 200.02, subdivision 24, and 75 
76.27 	employees for projects located outside the metropolitan area;
76.28 	(4) positions or employees moved or relocated from another Minnesota location of the 
76.29 	Minnesota job creation fund business must not be included in any calculation or determination 
76.30 	of job creation or new positions under this paragraph; and
76.31 	(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the 
76.32 	working hours of an employee for the purpose of hiring an individual to satisfy job creation 
76.33 	goals under this subdivision.
77.1 	(b) Prior to approving the proposed designation of a business under this subdivision, the 
77.2 	commissioner shall consider the following:
77.3 	(1) the economic outlook of the industry in which the business engages;
77.4 	(2) the projected sales of the business that will be generated from outside the state of 
77.5 	Minnesota;
77.6 	(3) how the business will build on existing regional, national, and international strengths 
77.7 	to diversify the state's economy;
77.8 	(4) whether the business activity would occur without financial assistance;
77.9 	(5) whether the business is unable to expand at an existing Minnesota operation due to 
77.10 	facility or land limitations;
77.11 	(6) whether the business has viable location options outside Minnesota;
77.12 	(7) the effect of financial assistance on industry competitors in Minnesota;
77.13 	(8) financial contributions to the project made by local governments; and
77.14 	(9) any other criteria the commissioner deems necessary.
77.15 	(c) Upon receiving notification of local approval under subdivision 2, the commissioner 
77.16 	shall review the determination by the local government and consider the conditions listed 
77.17 	in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local 
77.18 	area to designate a business as a Minnesota job creation fund business.
77.19 	(d) If the commissioner designates a business as a Minnesota job creation fund business, 
77.20 	the business subsidy agreement shall include the performance outcome commitments and 
77.21 	the expected financial value of any Minnesota job creation fund benefits.
77.22 	(e) The commissioner may amend an agreement once, upon request of a local government 
77.23 	on behalf of a business, only if the performance is expected to exceed thresholds stated in 
77.24 	the original agreement.
77.25 	(f) A business may apply to be designated as a Minnesota job creation fund business at 
77.26 	the same location more than once only if all goals under a previous Minnesota job creation 
77.27 	fund agreement have been met and the agreement is completed.

77.28 	Sec. 6. Minnesota Statutes 2016, section 116J.8748, subdivision 4, is amended to read:
77.29 		Subd. 4.Certification; benefits. (a) The commissioner may certify a Minnesota job 
77.30 	creation fund business as eligible to receive a specific value of benefit under paragraphs (b) 
78.1 	and (c) when the business has achieved its job creation and capital investment goals noted 
78.2 	in its agreement under subdivision 3.
78.3 	(b) A qualified Minnesota job creation fund business may be certified eligible for the 
78.4 	benefits in this paragraph for up to five years for projects located in the metropolitan area 
78.5 	as defined in section 200.02, subdivision 24, and seven years for projects located outside 
78.6 	the metropolitan area, as determined by the commissioner when considering the best interests 
78.7 	of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a), 
78.8 	clause (3), or section 16B.98, subdivision 5, paragraph (b), grant agreements for projects 
78.9 	located outside the metropolitan area may be for up to seven years in length. The eligibility 
78.10 	for the following benefits begins the date the commissioner certifies the business as a 
78.11 	qualified Minnesota job creation fund business under this subdivision:
78.12 	(1) up to five percent rebate for projects located in the metropolitan area as defined in 
78.13 	section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan 
78.14 	area, on capital investment on qualifying purchases as provided in subdivision 5 with the 
78.15 	total rebate for a project not to exceed $500,000;
78.16 	(2) an award of up to $500,000 based on full-time job creation and wages paid as provided 
78.17 	in subdivision 6 with the total award not to exceed $500,000;
78.18 	(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards 
78.19 	are allowable for projects that have at least $25,000,000 in capital investment and 200 new 
78.20 	employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75 
78.21 	new employees for projects located outside the metropolitan area;
78.22 	(4) up to $1,000,000 in capital investment rebates are allowable for projects that have 
78.23 	at least $25,000,000 in capital investment and 200 retained employees for projects located 
78.24 	in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for 
78.25 	projects located outside the metropolitan area; and
78.26 	(5) for clauses (3) and (4) only, the capital investment expenditure requirements may 
78.27 	include the installation and purchases of machinery and equipment. These expenditures are 
78.28 	not eligible for the capital investment rebate provided under subdivision 5.
78.29 	(c) The job creation award may be provided in multiple years as long as the qualified 
78.30 	Minnesota job creation fund business continues to meet the job creation goals provided for 
78.31 	in its agreement under subdivision 3 and the total award does not exceed $500,000 except 
78.32 	as provided under paragraph (b), clauses (3) and (4).
79.1 	(d) No rebates or award may be provided until the Minnesota job creation fund business 
79.2 	or a third party constructing or managing the project has at least $500,000 in capital 
79.3 	investment in the project and at least ten full-time jobs have been created and maintained 
79.4 	for at least one year or the retained employees, as provided in paragraph (b), clause (4), 
79.5 	remain for at least one year. The agreement may require additional performance outcomes 
79.6 	that need to be achieved before rebates and awards are provided. If fewer retained jobs are 
79.7 	maintained, but still above the minimum under this subdivision, the capital investment 
79.8 	award shall be reduced on a proportionate basis.
79.9 	(e) The forms needed to be submitted to document performance by the Minnesota job 
79.10 	creation fund business must be in the form and be made under the procedures specified by 
79.11 	the commissioner. The forms shall include documentation and certification by the business 
79.12 	that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66, 
79.13 	and other provisions as specified by the commissioner.
79.14 	(f) Minnesota job creation fund businesses must pay each new full-time employee added 
79.15 	pursuant to the agreement total compensation, including benefits not mandated by law, that 
79.16 	on an annualized basis is equal to at least 110 percent of the federal poverty level for a 
79.17 	family of four.
79.18 	(g) A Minnesota job creation fund business must demonstrate reasonable progress on 
79.19 	~~its~~ capital investment expenditures within six months following designation as a Minnesota 
79.20 	job creation fund business to ensure that the capital investment goal in the agreement under 
79.21 	subdivision 1 will be met. Businesses not making reasonable progress will not be eligible 
79.22 	for benefits under the submitted application and will need to work with the local government 
79.23 	unit to resubmit a new application and request to be a Minnesota job creation fund business. 
79.24 	Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not 
79.25 	be considered a default of the business subsidy agreement.

79.26 	Sec. 7. Minnesota Statutes 2016, section 116J.8748, subdivision 6, is amended to read:
79.27 		Subd. 6.Job creation award. (a) A qualified Minnesota job creation fund business is 
79.28 	eligible for an annual award for each new job created and maintained by the business using 
79.29 	the following schedule: $1,000 for each job position paying annual wages at least $26,000 
79.30 	but less than $35,000; $2,000 for each job position paying at least $35,000 but less than 
79.31 	$45,000; and $3,000 for each job position paying at least $45,000; and as noted in the goals 
79.32 	under the agreement provided under subdivision 1. These awards are increased by $1,000 
79.33 	if the business is located outside the metropolitan area as defined in section 200.02, 
80.1 	subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, 
80.2 	women, or persons with a disability.
80.3 	(b) The job creation award schedule must be adjusted annually using the percentage 
80.4 	increase in the federal poverty level for a family of four.
80.5 	(c) Minnesota job creation fund businesses seeking an award credit provided under 
80.6 	subdivision 4 must submit forms and applications to the Department of Employment and 
80.7 	Economic Development as prescribed by the commissioner.

80.8 	Sec. 8. Minnesota Statutes 2016, section 116L.665, is amended to read:
80.9 	116L.665 WORKFORCE DEVELOPMENT ~~COUNCIL~~ BOARD.
80.10 		Subdivision 1.Creation. The governor's Workforce Development ~~Council is created~~ 
80.11 	~~under the authority of the Workforce Investment Act, United States Code, title 29, section~~ 
80.12 	~~2801, et seq. Local workforce development councils are authorized under the Workforce~~ 
80.13 	~~Investment Act. The governor's Workforce Development Council serves as Minnesota's~~ 
80.14 	~~Workforce Investment Board for the purposes of the federal Workforce Investment Act.~~
80.15 	Board serves as Minnesota's state workforce development board for the purposes of the 
80.16 	federal Workforce Innovation and Opportunity Act, United States Code, title 29, section 
80.17 	3111, and must perform the duties under that act.
80.18 		Subd. 2.Membership. (a) The governor's Workforce Development ~~Council~~ Board is 
80.19 	composed of ~~31~~ members appointed by the governor. ~~The members may be removed pursuant~~ 
80.20 	~~to section 15.059.~~ In selecting the representatives of the ~~council~~ board, the governor shall 
80.21 	ensure that ~~50 percent~~ a majority of the members come from ~~nominations provided by local~~ 
80.22 	~~workforce councils. Local education representatives shall come from nominations provided~~ 
80.23 	~~by local education to employment partnerships. The 31 members shall represent the following~~ 
80.24 	~~sectors:~~ the private sector, pursuant to United States Code, title 29, section 3111. For the 
80.25 	public members, membership terms, compensation of members, and removal of members 
80.26 	are governed by section 15.059, subdivisions 2, 3, and 4. To the extent practicable, the 
80.27 	membership should be balanced as to gender and ethnic diversity.
80.28 	~~(a) State agencies: the following individuals shall serve on the council:~~
80.29 	~~(1) commissioner of the Minnesota Department of Employment and Economic~~ 
80.30 	~~Development;~~
80.31 	~~(2) commissioner of the Minnesota Department of Education; and~~
80.32 	~~(3) commissioner of the Minnesota Department of Human Services.~~
81.1 	~~(b) Business and industry: six individuals shall represent the business and industry sectors~~ 
81.2 	~~of Minnesota.~~
81.3 	~~(c) Organized labor: six individuals shall represent labor organizations of Minnesota.~~
81.4 	~~(d) Community-based organizations: four individuals shall represent community-based~~ 
81.5 	~~organizations of Minnesota. Community-based organizations are defined by the Workforce~~ 
81.6 	~~Investment Act as private nonprofit organizations that are representative of communities~~ 
81.7 	~~or significant segments of communities and that have demonstrated expertise and~~ 
81.8 	~~effectiveness in the field of workforce investment and may include entities that provide job~~ 
81.9 	~~training services, serve youth, serve individuals with disabilities, serve displaced~~ 
81.10 	~~homemakers, union-related organizations, employer-related nonprofit organizations, and~~ 
81.11 	~~organizations serving nonreservation Indians and tribal governments.~~
81.12 	~~(e) Education: six individuals shall represent the education sector of Minnesota as follows:~~
81.13 	~~(1) one individual shall represent local public secondary education;~~
81.14 	~~(2) one individual shall have expertise in design and implementation of school-based~~ 
81.15 	~~service-learning;~~
81.16 	~~(3) one individual shall represent leadership of the University of Minnesota;~~
81.17 	~~(4) one individual shall represent secondary/postsecondary vocational institutions;~~
81.18 	~~(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and~~ 
81.19 	~~Universities; and~~
81.20 	~~(6) one individual shall have expertise in agricultural education.~~
81.21 	~~(f) Other: two individuals shall represent other constituencies including:~~
81.22 	~~(1) units of local government; and~~
81.23 	~~(2) applicable state or local programs.~~
81.24 	~~The speaker and the minority leader of the house of representatives shall each appoint~~ 
81.25 	~~a representative to serve as an ex officio member of the council. The majority and minority~~ 
81.26 	~~leaders of the senate shall each appoint a senator to serve as an ex officio member of the~~ 
81.27 	~~council.~~
81.28 	~~The governor shall appoint one individual representing public libraries, one individual~~ 
81.29 	~~with expertise in assisting women in obtaining employment in high-wage, high-demand,~~ 
81.30 	~~nontraditional occupations, and one individual representing adult basic education programs~~ 
81.31 	~~to serve as nonvoting advisors to the council.~~
82.1 	(b) No person shall serve as a member of more than one category described in paragraph 
82.2 	(a).
82.3 	(c) Voting members shall consist of the following:
82.4 	(1) the governor or the governor's designee;
82.5 	(2) two members of the house of representatives, one appointed by the speaker of the 
82.6 	house and one appointed by the minority leader of the house of representatives;
82.7 	(3) two members of the senate, one appointed by the senate majority leader and one 
82.8 	appointed by the senate minority leader;
82.9 	(4) a majority of the members must be representatives of businesses in the state appointed 
82.10 	by the governor who:
82.11 	(i) are owners of businesses, chief executives, or operating officers of businesses, or 
82.12 	other business executives or employers with optimum policy-making or hiring authority 
82.13 	and who, in addition, may be members of a local board under United States Code, title 29, 
82.14 	section 3122(b)(2)(A)(i);
82.15 	(ii) represent businesses, including small businesses, or organizations representing 
82.16 	businesses that provide employment opportunities that, at a minimum, include high-quality, 
82.17 	work-relevant training and development in in-demand industry sectors or occupations in 
82.18 	the state; and
82.19 	(iii) are appointed from individuals nominated by state business organizations and 
82.20 	business trade associations;
82.21 	(5) six representatives of labor organizations appointed by the governor, including:
82.22 	(i) representatives of labor organizations who have been nominated by state labor 
82.23 	federations; and
82.24 	(ii) a member of a labor organization or a training director from a joint labor organization;
82.25 	(6) commissioners of the state agencies with primary responsibility for core programs 
82.26 	identified within the state plan including:
82.27 	(i) the Department of Employment and Economic Development;
82.28 	(ii) the Department of Education; and
82.29 	(iii) the Department of Human Services.
82.30 	(7) two chief elected officials, appointed by the governor, collectively representing cities 
82.31 	and counties;
83.1 	(8) two representatives who are people of color or people with disabilities, appointed 
83.2 	by the governor, of community-based organizations that have demonstrated experience and 
83.3 	expertise in addressing the employment, training, or education needs of individuals with 
83.4 	barriers to employment; and
83.5 	(9) four officials responsible for education programs in the state, appointed by the 
83.6 	governor, including chief executive officers of community colleges and other institutions 
83.7 	of higher education, including:
83.8 	(i) the chancellor of the Minnesota State Colleges and Universities;
83.9 	(ii) the president of the University of Minnesota;
83.10 	(iii) a president from a private postsecondary school; and
83.11 	(iv) a representative of career and technical education.
83.12 	(d) The nonvoting members of the board shall be appointed by the governor and consist 
83.13 	of one of each of the following:
83.14 	(1) a representative of Adult Basic Education;
83.15 	(2) a representative of public libraries;
83.16 	(3) a person with expertise in women's economic security;
83.17 	(4) the chair or executive director of the Minnesota Workforce Council Association;
83.18 	(5) the commissioner of labor and industry;
83.19 	(6) the commissioner of the Office of Higher Education;
83.20 	(7) the commissioner of corrections;
83.21 	(8) the commissioner of management and budget;
83.22 	(9) two representatives of community-based organizations who are people of color or 
83.23 	people with disabilities who have demonstrated experience and expertise in addressing the 
83.24 	employment, training, and education needs of individuals with barriers to employment;
83.25 	(10) a representative of secondary, post-secondary, or career-technical education;
83.26 	(11) a representative of school-based service learning;
83.27 	(12) a representative of the Council on Asian-Pacific Minnesotans;
83.28 	(13) a representative of the Minnesota Council on Latino Affairs;
83.29 	(14) a representative of the Council for Minnesotans of African Heritage;
84.1 	(15) a representative of the Minnesota Indian Affairs Council;
84.2 	(16) a representative of the Minnesota State Council on Disability; and
84.3 	(17) a representative of the Office on the Economic Status of Women.
84.4 	~~(g) Appointment:~~ (e) Each member shall be appointed for a term of three years from the 
84.5 	first day of January or July immediately following their appointment. Elected officials shall 
84.6 	forfeit their appointment if they cease to serve in elected office.
84.7 	~~(h) Members of the council are compensated as provided in section 15.059, subdivision~~ 
84.8 	~~3.~~
84.9 		Subd. 2a.~~Council~~ Board meetings; chair. ~~(a) If compliance with section 13D.02 is~~ 
84.10 	~~impractical, the Governor's Workforce Development Council may conduct a meeting of its~~ 
84.11 	~~members by telephone or other electronic means so long as the following conditions are~~ 
84.12 	~~met:~~
84.13 	~~(1) all members of the council participating in the meeting, wherever their physical~~ 
84.14 	~~location, can hear one another and can hear all discussion and testimony;~~
84.15 	~~(2) members of the public present at the regular meeting location of the council can hear~~ 
84.16 	~~clearly all discussion and testimony and all votes of members of the council and, if needed,~~ 
84.17 	~~receive those services required by sections 15.44 and 15.441;~~
84.18 	~~(3) at least one member of the council is physically present at the regular meeting location;~~ 
84.19 	~~and~~
84.20 	~~(4) all votes are conducted by roll call, so each member's vote on each issue can be~~ 
84.21 	~~identified and recorded.~~
84.22 	~~(b) Each member of the council participating in a meeting by telephone or other electronic~~ 
84.23 	~~means is considered present at the meeting for purposes of determining a quorum and~~ 
84.24 	~~participating in all proceedings.~~
84.25 	~~(c) If telephone or other electronic means is used to conduct a meeting, the council, to~~ 
84.26 	~~the extent practical, shall allow a person to monitor the meeting electronically from a remote~~ 
84.27 	~~location. The council may require the person making such a connection to pay for~~ 
84.28 	~~documented marginal costs that the council incurs as a result of the additional connection.~~
84.29 	~~(d) If telephone or other electronic means is used to conduct a regular, special, or~~ 
84.30 	~~emergency meeting, the council shall provide notice of the regular meeting location, of the~~ 
84.31 	~~fact that some members may participate by telephone or other electronic means, and of the~~ 
85.1 	~~provisions of paragraph (c). The timing and method of providing notice is governed by~~ 
85.2 	~~section 13D.04.~~
85.3 	(a) The board shall hold regular in-person meetings at least quarterly and as often as 
85.4 	necessary to perform the duties outlined in the statement of authority and the board's bylaws. 
85.5 	Meetings shall be called by the chair. Special meetings may be called as needed. Notices 
85.6 	of all meetings shall be made at least 48 hours before the meeting date.
85.7 	(b) The governor shall designate a chair from among the appointed business representative 
85.8 	voting members. The chair shall approve an agenda for each meeting. Members shall submit 
85.9 	a written request for consideration of an agenda item no less than 24 hours in advance of 
85.10 	the meeting. Members of the public may submit a written request within 48 hours of a 
85.11 	meeting to be considered for inclusion at the agenda. Members of the public attending a 
85.12 	meeting of the board may address the board only with the approval or at the request of the 
85.13 	chair.
85.14 	(c) All meeting notices must be posted on the board's Web site. All meetings of the board 
85.15 	and committees must be open to the public. The board must make available to the public, 
85.16 	on a regular basis through electronic means and open meetings, information regarding the 
85.17 	activities of the board, information regarding membership, and, on request, minutes of 
85.18 	formal meetings of the board.
85.19 	(d) For the purpose of conducting business before the board at a duly called meeting, a 
85.20 	simple majority of the voting members, excluding any vacancies, constitutes a quorum.
85.21 		~~Subd. 3.Purpose; duties.~~ ~~The governor's Workforce Development Council shall replace~~ 
85.22 	~~the governor's Job Training Council and assume all of its requirements, duties, and~~ 
85.23 	~~responsibilities under the Workforce Investment Act. Additionally, the Workforce~~ 
85.24 	~~Development Council shall assume the following duties and responsibilities:~~
85.25 	~~(a) Review the provision of services and the use of funds and resources under applicable~~ 
85.26 	~~federal human resource programs and advise the governor on methods of coordinating the~~ 
85.27 	~~provision of services and the use of funds and resources consistent with the laws and~~ 
85.28 	~~regulations governing the programs. For purposes of this section, applicable federal and~~ 
85.29 	~~state human resource programs mean the:~~
85.30 	~~(1) Workforce Investment Act, United States Code, title 29, section 2911, et seq.;~~
85.31 	~~(2) Carl D. Perkins Vocational and Applied Technology Education Act, United States~~ 
85.32 	~~Code, title 20, section 2301, et seq.;~~
85.33 	~~(3) Adult Education Act, United States Code, title 20, section 1201, et seq.;~~
86.1 	~~(4) Wagner-Peyser Act, United States Code, title 29, section 49;~~
86.2 	~~(5) Personal Responsibility and Work Opportunities Act of 1996 (TANF);~~
86.3 	~~(6) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp~~ 
86.4 	~~Employment and Training Program, United States Code, title 7, section 2015(d)(4); and~~
86.5 	~~(7) programs defined in section 116L.19, subdivision 5.~~
86.6 	~~Additional federal and state programs and resources can be included within the scope~~ 
86.7 	~~of the council's duties if recommended by the governor after consultation with the council.~~
86.8 	~~(b) Review federal, state, and local education, postsecondary, job skills training, and~~ 
86.9 	~~youth employment programs, and make recommendations to the governor and the legislature~~ 
86.10 	~~for establishing an integrated seamless system for providing education and work skills~~ 
86.11 	~~development services to learners and workers of all ages.~~
86.12 	~~(c) Advise the governor on the development and implementation of statewide and local~~ 
86.13 	~~performance standards and measures relating to applicable federal human resource programs~~ 
86.14 	~~and the coordination of performance standards and measures among programs.~~
86.15 	~~(d) Promote education and employment transitions programs and knowledge and skills~~ 
86.16 	~~of entrepreneurship among employers, workers, youth, and educators, and encourage~~ 
86.17 	~~employers to provide meaningful work-based learning opportunities.~~
86.18 	~~(e) Evaluate and identify exemplary education and employment transitions programs~~ 
86.19 	~~and provide technical assistance to local partnerships to replicate the programs throughout~~ 
86.20 	~~the state.~~
86.21 	~~(f) Advise the governor on methods to evaluate applicable federal human resource~~ 
86.22 	~~programs.~~
86.23 	~~(g) Sponsor appropriate studies to identify human investment needs in Minnesota and~~ 
86.24 	~~recommend to the governor goals and methods for meeting those needs.~~
86.25 	~~(h) Recommend to the governor goals and methods for the development and coordination~~ 
86.26 	~~of a human resource system in Minnesota.~~
86.27 	~~(i) Examine federal and state laws, rules, and regulations to assess whether they present~~ 
86.28 	~~barriers to achieving the development of a coordinated human resource system.~~
86.29 	~~(j) Recommend to the governor and to the federal government changes in state or federal~~ 
86.30 	~~laws, rules, or regulations concerning employment and training programs that present barriers~~ 
86.31 	~~to achieving the development of a coordinated human resource system.~~
87.1 	~~(k) Recommend to the governor and to the federal government waivers of laws and~~ 
87.2 	~~regulations to promote coordinated service delivery.~~
87.3 	~~(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic~~ 
87.4 	~~plan which details methods for meeting Minnesota's human investment needs and for~~ 
87.5 	~~developing and coordinating a state human resource system.~~
87.6 	~~(m) Provide the commissioner of employment and economic development and the~~ 
87.7 	~~committees of the legislature with responsibility for economic development with~~ 
87.8 	~~recommendations provided to the governor under this subdivision.~~
87.9 	~~(n) In consultation with local workforce councils and the Department of Employment~~ 
87.10 	~~and Economic Development, develop an ongoing process to identify and address local gaps~~ 
87.11 	~~in workforce services.~~
87.12 		Subd. 4.Executive committee duties. The executive committee must, with advice and 
87.13 	input of local workforce ~~councils~~ boards and other stakeholders as appropriate, develop 
87.14 	performance standards for the state workforce centers. By January ~~15, 2002~~ 2019, and each 
87.15 	odd-numbered year thereafter, the executive committee shall submit a report to the senate 
87.16 	and house of representatives committees with jurisdiction over workforce development 
87.17 	programs regarding the performance and outcomes of the workforce centers. The report 
87.18 	must provide recommendations regarding workforce center funding levels and sources, 
87.19 	program changes, and administrative changes.
87.20 		Subd. 5.Subcommittees. The chair of the Workforce Development ~~Council~~ Board may 
87.21 	establish subcommittees in order to carry out the duties and responsibilities of the ~~council~~
87.22 	board.
87.23 		Subd. 6.Staffing. The ~~Department of~~ commissioner of employment and economic 
87.24 	development must provide staff~~, including but not limited to professional, technical, and~~ 
87.25 	~~clerical staff~~ to the board necessary to ~~perform the duties assigned to the Minnesota~~ 
87.26 	~~Workforce Development Council. All staff report to the commissioner~~ carry out the duties 
87.27 	of the board. ~~The council may ask for assistance from other units of~~At the request of the 
87.28 	board, state ~~government as~~departments and agencies must provide the board with the 
87.29 	assistance it requires ~~in order~~ to fulfill its duties and responsibilities.
87.30 		Subd. 7.Expiration. The ~~council~~ board expires if there is no federal funding for the 
87.31 	human resource programs within the scope of the ~~council's~~ board's duties.
87.32 		Subd. 8.Funding. The commissioner ~~shall develop recommendations on a funding~~ 
87.33 	~~formula for allocating Workforce Investment Act funds to the council with a minimum~~ 
88.1 	~~allocation~~ of employment and economic development must provide at least $350,000 ~~per~~
88.2 	each fiscal year~~. The commissioner shall report the funding formula recommendations to~~ 
88.3 	~~the legislature by January 15, 2011~~ from existing agency resources to the board for staffing 
88.4 	and administrative expenses.

88.5 	Sec. 9. Minnesota Statutes 2016, section 116M.14, subdivision 4, is amended to read:
88.6 		Subd. 4.Low-income area. "Low-income area" means:
88.7 	(1) Minneapolis, St. Paul;
88.8 	(2) those cities in the metropolitan area as defined in section 473.121, subdivision 2, 
88.9 	that have ~~an average income~~ a median income for a family of four that is below 80 percent 
88.10 	of the median income for a four-person family as of the latest report by the United States 
88.11 	Census Bureau; and
88.12 	(3) the area outside the metropolitan area.

88.13 	Sec. 10. Minnesota Statutes 2016, section 116M.17, subdivision 4, is amended to read:
88.14 		Subd. 4.Reports. The ~~board~~ department shall submit an annual report to the legislature 
88.15 	of an accounting of loans made under section 116M.18, including information on loans 
88.16 	made, the number of jobs created by the program, the impact on low-income areas, and 
88.17 	recommendations concerning minority business development and jobs for persons in 
88.18 	low-income areas.

88.19 	Sec. 11. Minnesota Statutes 2016, section 116M.18, subdivision 1a, is amended to read:
88.20 		Subd. 1a.Statewide loans. To the extent there is sufficient eligible demand, loans shall 
88.21 	be made so that an approximately equal dollar amount of loans are made to businesses in 
88.22 	the metropolitan area as in the nonmetropolitan area. After ~~September 30~~ March 31 of each 
88.23 	~~calendar~~ fiscal year, the department may allow loans to be made anywhere in the state 
88.24 	without regard to geographic area.

88.25 	Sec. 12. Minnesota Statutes 2016, section 116M.18, subdivision 4, is amended to read:
88.26 		Subd. 4.Business loan criteria. (a) The criteria in this subdivision apply to loans made 
88.27 	by nonprofit corporations under the program.
88.28 	(b) Loans must be made to businesses that are not likely to undertake a project for which 
88.29 	loans are sought without assistance from the program.
89.1 	(c) A loan must be used to support a business owned by a minority or a low-income 
89.2 	person, woman, veteran, or a person with disabilities. Priority must be given for loans to 
89.3 	the lowest income areas.
89.4 	(d) The minimum state contribution to a loan is $5,000 and the maximum is $150,000.
89.5 	(e) The state contribution must be matched by at least an equal amount of new private 
89.6 	investment.
89.7 	(f) A loan may not be used for a retail development project.
89.8 	(g) The business must agree to work with job referral networks that focus on minority 
89.9 	and low-income applicants.
89.10 	(h) Up to ten percent of a loan's principal amount may be forgiven if the department 
89.11 	approves and the borrower has met lender criteria including being current with all payments.

89.12 	Sec. 13. Minnesota Statutes 2016, section 116M.18, subdivision 4a, is amended to read:
89.13 		Subd. 4a.Microenterprise loan. (a) Program grants may be used to make microenterprise 
89.14 	loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans 
89.15 	are subject to this section except that:
89.16 	(1) they may also be made to qualified retail businesses;
89.17 	(2) they may be made for a minimum of $5,000 and a maximum of $35,000;
89.18 	(3) in a low-income area, they may be made for a minimum of $5,000 and a maximum 
89.19 	of $50,000; and
89.20 	(4) they do not require a match.
89.21 	(b) Up to ten percent of a loan's principal amount may be forgiven if the department 
89.22 	approves and the borrower has met lender criteria including being current with all payments.

89.23 	Sec. 14. Minnesota Statutes 2016, section 116M.18, subdivision 8, is amended to read:
89.24 		Subd. 8.Reporting requirements. A nonprofit corporation that receives a program 
89.25 	grant shall:
89.26 	(1) submit an annual report to the ~~board and~~ department by ~~March 30~~ February 15 of 
89.27 	each year that includes a description of businesses supported by the grant program, an 
89.28 	account of loans made during the calendar year, the program's impact on minority business 
89.29 	enterprises and job creation for minority persons and low-income persons, the source and 
90.1 	amount of money collected and distributed by the program, the program's assets and 
90.2 	liabilities, and an explanation of administrative expenses; and
90.3 	(2) provide for an independent annual audit to be performed in accordance with generally 
90.4 	accepted accounting practices and auditing standards and submit a copy of each annual 
90.5 	audit report to the department.

90.6 	Sec. 15. Laws 2016, chapter 189, article 7, section 2, subdivision 2, is amended to read:

90.7 | Subd. 2.Business and Community Development | | -0- | | 8,021,000

90.8 | Appropriations by Fund
90.9 | General | -0- | 7,271,000
90.10

90.11

Workforce 
Development

-0-

750,000

90.12 	(a) $9,000,000 in fiscal year 2017 is a onetime 
90.13 	reduction in the general fund appropriation 
90.14 	for the Minnesota investment fund under 
90.15 	Minnesota Statutes, section 116J.8731. The 
90.16 	base funding for this purpose is $11,000,000 
90.17 	in fiscal year 2018 and each fiscal year 
90.18 	thereafter.
90.19 	(b) $11,500,000 in fiscal year 2017 is a 
90.20 	onetime reduction in the general fund 
90.21 	appropriation for the Minnesota job creation 
90.22 	fund under Minnesota Statutes, section 
90.23 	116J.8748. The base funding for this program 
90.24 	is $6,500,000 in fiscal year 2018 and each 
90.25 	fiscal year thereafter.
90.26 	(c) $2,000,000 in fiscal year 2017 is for the 
90.27 	redevelopment program under Minnesota 
90.28 	Statutes, section 116J.571. This is a onetime 
90.29 	appropriation.
90.30 	(d) $1,220,000 in fiscal year 2017 is for a 
90.31 	grant to the Duluth North Shore Sanitary 
90.32 	District to retire debt of the district in order to 
90.33 	bring the district's monthly wastewater rates 
90.34 	in line with those of similarly situated facilities 
91.1 	across the state. This is a onetime 
91.2 	appropriation.
91.3 	(e) $300,000 in fiscal year 2017 is from the 
91.4 	workforce development fund for expansion of 
91.5 	business assistance services provided by 
91.6 	business development specialists located in 
91.7 	the Northwest Region, Northeast Region, West 
91.8 	Central Region, Southwest Region, Southeast 
91.9 	Region, and Twin Cites Metro Region offices 
91.10 	established throughout the state. Funds under 
91.11 	this section may be used to provide services 
91.12 	including, but not limited to, business 
91.13 	start-ups; expansion; location or relocation; 
91.14 	finance; regulatory and permitting assistance; 
91.15 	and other services determined by the 
91.16 	commissioner. The commissioner may also 
91.17 	use funds under this section to increase the 
91.18 	number of business development specialists 
91.19 	in each region of the state, increase and expand 
91.20 	the services provided through each regional 
91.21 	office, and publicize the services available and 
91.22 	provide outreach to communities in each 
91.23 	region regarding services and assistance 
91.24 	available through the business development 
91.25 	specialist program. This is a onetime 
91.26 	appropriation.
91.27 	(f) $50,000 in fiscal year 2017 is from the 
91.28 	workforce development fund to enhance the 
91.29 	outreach and public awareness activities of 
91.30 	the Bureau of Small Business under Minnesota 
91.31 	Statutes, section 116J.68. This is a onetime 
91.32 	appropriation.
91.33 	(g) $100,000 in fiscal year 2017 is from the 
91.34 	general fund for an easy-to-understand manual 
91.35 	to instruct aspiring business owners in how to 
92.1 	start a child care business. The commissioner 
92.2 	shall work in consultation with relevant state 
92.3 	and local agencies and affected stakeholders 
92.4 	to produce the manual. The manual must be 
92.5 	made available electronically to interested 
92.6 	persons. This is a onetime appropriation and 
92.7 	is available until June 30, 2019.
92.8 	(h) $2,500,000 in fiscal year 2017 is for grants 
92.9 	to initiative foundations to provide financing 
92.10 	for business startups, expansions, and 
92.11 	maintenance; and for business ownership 
92.12 	transition and succession. This is a onetime 
92.13 	appropriation. Of the amount appropriated:
92.14 	(1) $357,000 is for a grant to the Southwest 
92.15 	Initiative Foundation;
92.16 	(2) $357,000 is for a grant to the West Central 
92.17 	Initiative Foundation;
92.18 	(3) $357,000 is for a grant to the Southern 
92.19 	Minnesota Initiative Foundation;
92.20 	(4) $357,000 is for a grant to the Northwest 
92.21 	Minnesota Foundation;
92.22 	(5) $357,000 is for a grant to the Initiative 
92.23 	Foundation;
92.24 	(6) $357,000 is for a grant to the Northland 
92.25 	Foundation; and
92.26 	(7) $357,000 is for a grant for the Minnesota 
92.27 	emerging entrepreneur program under 
92.28 	Minnesota Statutes, chapter 116M. Funds 
92.29 	available under this clause are for deposit in 
92.30 	the emerging entrepreneur program special 
92.31 	revenue fund account created under Minnesota 
92.32 	Statutes, chapter 116M, and are available until 
92.33 	spent and must be allocated as follows:
93.1 	(i) 50 percent of the funds must be allocated 
93.2 	for projects in the counties of Dakota, Ramsey, 
93.3 	and Washington; and
93.4 	(ii) 50 percent of the funds must be allocated 
93.5 	for projects in the counties of Anoka, Carver, 
93.6 	Hennepin, and Scott.
93.7 	(i) $600,000 in fiscal year 2017 is for a grant 
93.8 	to a city of the second class that is designated 
93.9 	as an economically depressed area by the 
93.10 	United States Department of Commerce for 
93.11 	economic development, redevelopment, and 
93.12 	job creation programs and projects. This is a 
93.13 	onetime appropriation and is available until 
93.14 	June 30, 2019.
93.15 	(j) $4,500,000 in fiscal year 2017 is for a grant 
93.16 	to the Minnesota Film and TV Board for the 
93.17 	film production jobs program under Minnesota 
93.18 	Statutes, section 116U.26. This appropriation 
93.19 	is in addition to the appropriation in Laws 
93.20 	2015, First Special Session chapter 1, article 
93.21 	1, section 2, subdivision 2. This is a onetime 
93.22 	appropriation.
93.23 	(k) $3,651,000 in fiscal year 2017 is from the 
93.24 	general fund for a grant to Mille Lacs County 
93.25 	to develop and operate the Lake Mille Lacs 
93.26 	area economic relief program established in 
93.27 	section 45. This is a onetime appropriation.
93.28 	(l) $500,000 in fiscal year 2017 is from the 
93.29 	general fund for grants to local communities 
93.30 	outside of the metropolitan area as defined 
93.31 	under Minnesota Statutes, section 473.121, 
93.32 	subdivision 2, to increase the supply of quality 
93.33 	child care providers in order to support 
93.34 	regional economic development. Grant 
94.1 	recipients must match state funds on a 
94.2 	dollar-for-dollar basis. Grant funds available 
94.3 	under this section must be used to implement 
94.4 	solutions to reduce the child care shortage in 
94.5 	the state, including but not limited to funding 
94.6 	for child care business start-up or expansion, 
94.7 	training, facility modifications or 
94.8 	improvements required for licensing, and 
94.9 	assistance with licensing and other regulatory 
94.10 	requirements. In awarding grants, the 
94.11 	commissioner must give priority to 
94.12 	communities in greater Minnesota that have 
94.13 	documented a shortage of child care providers 
94.14 	in the area. This is a onetime appropriation 
94.15 	and is available until June 30, 2019.
94.16 	By September 30, 2017, grant recipients must 
94.17 	report to the commissioner on the outcomes 
94.18 	of the grant program, including but not limited 
94.19 	to the number of new providers, the number 
94.20 	of additional child care provider jobs created, 
94.21 	the number of additional child care slots, and 
94.22 	the amount of local funds invested.
94.23 	By January 1, 2018, the commissioner must 
94.24 	report to the standing committees of the 
94.25 	legislature having jurisdiction over child care 
94.26 	and economic development on the outcomes 
94.27 	of the program to date.
94.28 	(m) $100,000 in fiscal year 2017 is from the 
94.29 	general fund for a grant to the city of Madelia 
94.30 	to provide match funding for a federal 
94.31 	Economic Development Agency technical 
94.32 	assistance grant. This is a onetime 
94.33 	appropriation.
95.1 	(n) $10,000,000 in fiscal year 2017 is for 
95.2 	deposit in the Minnesota 21st century fund. 
95.3 	This is a onetime appropriation.
95.4 	(o) $400,000 in fiscal year 2017 is from the 
95.5 	workforce development fund for grants to 
95.6 	small business development centers under 
95.7 	Minnesota Statutes, section 116J.68. Funds 
95.8 	made available under this section may be used 
95.9 	to match funds under the federal Small 
95.10 	Business Development Center (SBDC) 
95.11 	program under United States Code, title 15, 
95.12 	section 648, provide consulting and technical 
95.13 	services, or to build additional SBDC network 
95.14 	capacity to serve entrepreneurs and small 
95.15 	businesses. The commissioner shall allocate 
95.16 	funds equally among the nine regional centers 
95.17 	and lead center. This is a onetime 
95.18 	appropriation.
95.19 	(p) $2,600,000 in fiscal year 2017 is for a 
95.20 	transfer to the Board of Regents of the 
95.21 	University of Minnesota for academic and 
95.22 	applied research through MnDRIVE at the 
95.23 	Natural Resources Research Institute to 
95.24 	develop new technologies that enhance the 
95.25 	long-term viability of the Minnesota mining 
95.26 	industry. The research must be done in 
95.27 	consultation with the Mineral Coordinating 
95.28 	Committee established by Minnesota Statutes, 
95.29 	section 93.0015. This is a onetime transfer.
95.30 	(q) Of the amount appropriated in fiscal year 
95.31 	2017 for the Minnesota Investment Fund in 
95.32 	Laws 2015, First Special Session chapter 1, 
95.33 	article 1, section 2, subdivision 2, paragraph 
95.34 	(a), $450,000 is for a grant to the Lake 
95.35 	Superior-Poplar River Water District to 
96.1 	acquire interests in real property, engineer, 
96.2 	design, permit, and construct infrastructure to 
96.3 	transport and treat water from Lake Superior 
96.4 	through the Poplar River Valley to serve 
96.5 	domestic, irrigation, commercial, stock 
96.6 	watering, and industrial water users. This grant 
96.7 	does not require a local match. This is a 
96.8 	onetime appropriation. This amount is 
96.9 	available until June 30, 2019.
96.10 	(r) $500,000 is for the Minnesota emerging 
96.11 	entrepreneur program under Minnesota 
96.12 	Statutes, section 116M.18. Of this amount, up 
96.13 	to five percent is for administration and 
96.14 	monitoring of the program. For fiscal year 
96.15 	2018 and thereafter, the base amount is 
96.16 	$750,000 per year. Funds available under this 
96.17 	paragraph are for deposit in the emerging 
96.18 	entrepreneur program special revenue fund 
96.19 	account created under Minnesota Statutes, 
96.20 	chapter 116M, and are available until spent.

96.21 	EFFECTIVE DATE. This section is effective retroactively to July 1, 2016.

96.22 	Sec. 16.  REPEALER.
 96.23 	Minnesota Rules, parts 4355.0100; 4355.0200; 4355.0300; 4355.0400; and 4355.0500,
96.24 	are repealed.

APPENDIX 

Repealed Minnesota Statutes: 17-2327 

46.131 ASSESSMENTS AND FEES FOR FINANCIAL INSTITUTIONS.Subd. 5.Application and adjustment of fees. 
If the income from the fees provided for herein during any fiscal year shall be more than 103 percent of such expenditures for that year, any excess above such sum of 103 percent may be carried over to succeeding years in order to cover any deficit below 103 percent which may occur in such succeeding years. If the income from the fees provided for herein during any fiscal year shall produce less than the expenditures for that year, the Department of Commerce in adjusting its schedule of fees for use in the next fiscal year shall fix the fees so as to produce income in the amount of the expenditures for the latter year plus the amount of the difference between the expenditures for the first year referred to herein and the total income from such fees during the year and plus three percent of the total expenditures for both the latter and the first year referred to herein. 

326B.89 CONTRACTOR RECOVERY FUND.Subd. 14.Accelerated compensation. 
(a) Payments made from the fund to compensate owners and lessees that do not exceed the jurisdiction limits for conciliation court matters as specified in section 491A.01 may be paid on an accelerated basis if all of the following requirements in paragraphs (b) and (c) have been satisfied. 

(b) The owner or the lessee has served upon the commissioner a verified application for compensation that complies with the requirements set out in subdivision 6 and the commissioner determines based on review of the application that compensation should be paid from the fund. The commissioner shall calculate the actual and direct out-of-pocket loss in the transaction, minus attorney fees, litigation costs or fees, interest on the loss and on the judgment obtained as a result of the loss, and any satisfaction of the judgment, and make payment to the owner or the lessee up to the conciliation court jurisdiction limits within 45 days after the owner or lessee serves the verified application. 

(c) The commissioner may pay compensation to owners or lessees that totals not more than $50,000 per licensee per fiscal year under this accelerated process. The commissioner may prorate the amount of compensation paid to owners or lessees under this subdivision if applications submitted by owners and lessees seek compensation in excess of $50,000 against a licensee. Any unpaid portion of a verified application that has been prorated under this subdivision shall be satisfied in the manner set forth in subdivision 9. 

Repealed Minnesota Session Laws: 17-2327 

Laws 2009, chapter 37, article 3, section 4
Sec. 4. Minnesota Statutes 2008, section 47.60, subdivision 6, is amended to read:Subd. 6.Penalties for violation. 
A ~~person~~ business entity or the ~~person's~~ entity's members, officers, directors, agents, and employees who violate or participate in the violation of any of the provisions of this section may be liable in the same manner as in section 56.19.  

4355.0100PURPOSE. 
The purpose of this chapter is to establish: 

A.
 procedures for use of the revolving loan fund under Minnesota Statutes, section 116M.18; 

B.
 procedures for the Minnesota emerging entrepreneur program to certify and enter into agreements with nonprofit corporations; and 

C.
 procedures for nonprofit corporations to make loans to eligible businesses. 

4355.0200DEFINITIONS. Subpart 1.Scope.  
For the purposes of this chapter the terms in this part and in Minnesota Statutes, section 116M.14, have the meanings given. 

Subp. 2.Grant agreements.  
"Grant agreements" means an agreement between the state and a nonprofit corporation through which the state provides funds to carry out specified programs, services, or activities. 

Subp. 3.Nonprofit corporation.  
"Nonprofit corporation" means a not-for-profit organization operating in one or more eligible cities and certified by the board to receive grants and disburse these funds in the nature of loans to qualifying businesses. 

Subp. 4.Nonprofit revolving loan fund.  
"Nonprofit revolving loan fund" means a board-certified revolving loan fund established by a nonprofit corporation to provide loans to new and expanding businesses in low-income areas. 

Subp. 5.Urban revolving loan fund.  
"Urban revolving loan fund" means a fund established by the board to make grants to nonprofit corporations. 

4355.0300BUSINESS LOANS BY NONPROFIT CORPORATIONS. Subpart 1.Generally.  
The board shall make available funds from the urban revolving loan fund for nonprofit corporations. The money awarded to each corporation shall be appropriated to its nonprofit revolving loan fund to be used to make loans to businesses in low-income areas. The funds are to be awarded on a project-by-project basis and must be matched by the corporation with an equal amount of money from sources other than government appropriations. 

Subp. 2.Grant agreement required.  
A grant agreement must be established with each nonprofit corporation certified for funding by the board. Grant agreements shall be valid for a period of one year from the time they are fully executed. Agreements may be renewed by the board based on an evaluation of the corporation's lending activities, a finding that the corporation has complied with all the provisions of the agreement, and has made substantive progress in achieving the goals described in its application. 

In the event that a grant agreement is not renewed, the corporation must continue to administer all loans it may have made under the provisions of the grant agreement and Minnesota Statutes, section 116M.18. 

Subp. 3.Application by nonprofit corporation.  
Any nonprofit corporation wishing to be certified as a participant in the urban challenge grant program must apply in a form prescribed by the board. The application must include: 

A.
 an assurance signed by the nonprofit corporation's chair that the applicant will comply with all applicable state and federal laws and requirements; 

B.
 a resolution passed by the applicant's board of directors approving the submission of an application and authorizing execution of the grant agreement if funds are made available; 

C.
 a plan demonstrating the applicant's eligibility pursuant to Minnesota Statutes, section 116M.18, the manner in which minority business enterprises will be assisted, the outcomes expected to result from the corporation's participation in the program; and 

D.
 any additional information that the board finds is necessary to clarify the applicant's ability to achieve the program's objectives. 

Subp. 4.Board review.  
The board shall certify the corporation if it has demonstrated that it fully meets the eligibility standards in Minnesota Statutes, section 116M.18, subdivision 2. 

Subp. 5.Disapproval of applications.  
In cases where the corporation fails to demonstrate that it has met the requirements in Minnesota Statutes, section 116M.18, subdivision 2, the board must disapprove the application. The commissioner shall inform the corporation of the board's decision, in writing, stating the reasons for the denial. 

Subp. 6.Contents of grant agreement.  
If certified, the board must enter into a grant agreement with the nonprofit corporation. The grant agreement must include provisions that: 

A.
 the corporation has established or will establish a board-certified revolving loan fund to provide loans to new and expanding businesses in low-income areas; 

B.
 the grant recipient will comply with all applicable state and federal laws, including the requirements of Minnesota Statutes, section 116M.18; and 

C.
 no grant funds shall be used to finance activities not approved in either the grant agreement or each loan agreement. 

Subp. 7.Other grant requirements.  
The following provisions apply to grants awarded: 

A.
 if it is determined that an improper use of the funds has occurred, the board shall take whatever action is necessary to recover improperly spent funds; 

B.
 grant recipients must return funds that are improperly expended; 

C.
 the board shall suspend payment of funds to recipients that are not in compliance with applicable state and federal laws, rules, and regulations; 

D.
 amendments to the grant agreement must be in writing; and 

E.
 the grant agreement may authorize the nonprofit corporation to be paid for administrative expenses out of the interest earned on loans it originates. 

Subp. 8.Corporation to make business loans.  
Any business may make an application to the nonprofit corporation for an urban challenge grant loan. The application must be in a form approved by the corporation and the board. The corporation must review the application and may give preliminary approval for the loan based on Minnesota Statutes, section 116M.18. The loan application must then be forwarded to the board for final approval. 

4355.0400BUSINESS LOANS BY THE BOARD. 
If the board receives a grant, gift, or loan, authorizing or requiring it to make business loans directly to qualifying businesses, and the board determines that businesses do not have access through a certified corporation, the board may receive applications for an urban challenge grant loan on the forms it prescribes. The board shall review applications and, based on the provisions of Minnesota Statutes, section 116M.18, and the business loan criteria in part 4355.0500, may approve them. If an application is denied, the commissioner shall inform the applicant as to the reasons for the denial. 

4355.0500BUSINESS LOAN CRITERIA. Subpart 1.Terms and conditions. A.
 The interest rate on a loan shall be established by the corporation, but may be no less than two percent per annum, nor more than ten percent per annum or one percent per annum above the prime rate, as published in the Wall Street Journal at the time the loan is closed, whichever is greater. 

B.
 The corporation may only charge the business all out-of-pocket administrative expenses connected with originating the loan at the time of closing. 

C.
 The loan funds may be used for normal business expenses including, but not limited to, site acquisition, new construction, renovation, machinery and equipment, and working capital. Loans may not be used to refinance a business or personal existing debt. 

Subp. 2.Loan repayment.  
For loans made by the board, all loan repayments must be deposited in the urban revolving loan fund for further distribution to businesses or nonprofit corporations pursuant to Minnesota Statutes, section 116M.18. 

For loans made by a nonprofit corporation, amounts equal to one-half of the principal and interest must be deposited in the urban revolving loan fund. The principal payments shall be made available to the corporation originating the loan in order to make additional loans, as long as the corporation remains certified and the grant agreement with the board is in effect. The board may return interest payments to the corporation in order to pay for the corporation's administrative expenses. 

The remaining amount of the loan repayment may be deposited in the nonprofit revolving loan fund created by the corporation which originated the loan for further distribution by the nonprofit corporation, or for other uses as may be determined by the corporation.