1.1 	A bill for an act
1.2 	relating to state government; appropriating money for agriculture, environment, 
1.3 	natural resources, jobs, and economic development; providing for animal health 
1.4 	and agricultural utilization research; making policy and technical changes to 
1.5 	various agricultural related provisions, including provisions related to pesticide 
1.6 	control, plant protection, nursery law, seeds, and loans; modifying license 
1.7 	exclusions for the direct sale of certain prepared food; establishing the Agriculture 
1.8 	Research, Education, Extension, and Technology Transfer Board; establishing 
1.9 	the Industrial Hemp Development Act; providing for incentive payments and 
1.10 	grants; modifying disposition of certain revenue; providing for pilot programs; 
1.11 	establishing the farm opportunity loan program; modifying fee provisions; 
1.12 	creating accounts; modifying recreational vehicle provisions; modifying aquatic 
1.13 	invasive species provisions; modifying state park and trail provisions; modifying 
1.14 	timber and land sale provisions; modifying provisions for reclamation of 
1.15 	lands; modifying game and fish laws; modifying the Water Law; regulating 
1.16 	water quality standards; regulating chemicals of high concern in children's 
1.17 	products; modifying solid waste provisions; making policy changes to labor 
1.18 	and industry, employment and economic development, Iron Range resources, 
1.19 	and the Bureau of Mediation Services; requiring studies and reports; requiring 
1.20 	rulemaking;amending Minnesota Statutes 2014, sections 13.43, subdivision 6; 
1.21 	13.643, subdivision 1; 13.7411, subdivision 8; 16C.144, by adding subdivisions; 
1.22 	18B.01, subdivisions 28, 29; 18B.32, subdivision 1; 18B.33, subdivision 1; 
1.23 	18B.34, subdivision 1; 18G.10, subdivisions 3, 4; 18H.02, subdivision 20, by 
1.24 	adding subdivisions; 18H.06, subdivision 2; 18J.01; 18J.02; 18J.03; 18J.04, 
1.25 	subdivisions 1, 2, 3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06; 18J.07, subdivisions 
1.26 	3, 4, 5; 18J.09; 18J.11, subdivision 1, by adding a subdivision; 21.81, by 
1.27 	adding subdivisions; 21.82, subdivisions 2, 4; 21.85, subdivision 2, by adding a 
1.28 	subdivision; 21.89, subdivision 2; 41B.03, subdivision 6, by adding a subdivision; 
1.29 	41B.04, subdivision 17; 41B.043, subdivision 3; 41B.045, subdivisions 3, 4; 
1.30 	41B.046, subdivision 5; 41B.047, subdivisions 1, 4; 41B.048, subdivision 
1.31 	6; 41B.049, subdivision 4; 41B.055, subdivision 3; 41B.056, subdivision 2; 
1.32 	41B.06; 45.0135, by adding a subdivision; 60D.215, subdivision 2; 65B.44, by 
1.33 	adding a subdivision; 72B.092, subdivision 1; 80A.84; 84.415, subdivision 7; 
1.34 	84.82, subdivisions 2a, 6; 84.92, subdivisions 8, 9, 10; 84.922, subdivision 5; 
1.35 	84D.01, by adding a subdivision; 84D.13, subdivision 5; 84D.15, subdivision 3; 
1.36 	85.015, by adding a subdivision; 85.055, subdivision 1; 85.32, subdivision 1; 
1.37 	86B.401, subdivision 3; 87A.10; 88.6435, subdivision 4; 90.14; 90.193; 93.20, 
1.38 	subdivision 18; 97A.055, subdivision 4b; 97B.301, by adding a subdivision; 
1.39 	97C.301, by adding a subdivision; 103B.101, by adding a subdivision; 
2.1 	103B.3355; 103F.612, subdivision 2; 103G.005, by adding a subdivision; 
2.2 	103G.222, subdivisions 1, 3; 103G.2242, subdivisions 1, 2, 3, 4, 12, 14, 15; 
2.3 	103G.2251; 115A.1415, subdivision 16; 115A.557, subdivision 2; 115C.09, 
2.4 	subdivision 1; 116.07, subdivision 4d; 116.9401; 116.9402; 116.9403; 116.9405; 
2.5 	116.9406; 116J.394; 116J.395, subdivision 6; 116J.8738, subdivision 3, by 
2.6 	adding a subdivision; 116L.05, subdivision 5; 116L.17, subdivision 4; 123B.53, 
2.7 	subdivision 1; 179A.041, by adding subdivisions; 216B.1694, subdivision 
2.8 	3; 216B.62, subdivision 3b; 268.035, subdivisions 6, 21b, 26, 30; 268.051, 
2.9 	subdivision 7; 268.07, subdivisions 2, 3b; 268.085, subdivisions 1, 2; 268.095, 
2.10 	subdivisions 1, 10; 268.105, subdivisions 3, 7; 268.136, subdivision 1; 268.194, 
2.11 	subdivision 1; 298.018, subdivision 1; 298.22, subdivisions 1, 3, 4, 5, 6, 10, 11; 
2.12 	298.221; 298.2211, subdivision 3; 298.222; 298.223; 298.225, subdivision 2; 
2.13 	298.227; 298.28, subdivisions 4, 9a, 9d, 11, 15; 298.292, subdivision 2; 298.293; 
2.14 	298.2961, subdivision 3; 326B.092, subdivision 7; 326B.096; 326B.106, 
2.15 	subdivision 1, by adding a subdivision; 326B.13, subdivision 8; 326B.986, 
2.16 	subdivisions 5, 8; 332.31, subdivisions 3, 6; 341.321; 375.30, subdivision 2; 
2.17 	Laws 2014, chapter 308, article 6, section 14, subdivision 5; Laws 2014, chapter 
2.18 	312, article 2, section 14; proposing coding for new law in Minnesota Statutes, 
2.19 	chapters 13; 17; 28A; 41A; 41B; 65B; 80A; 84; 84D; 103B; 103F; 116; 116J; 
2.20 	116L; 179; 268A; proposing coding for new law as Minnesota Statutes, chapter 
2.21 	18K; repealing Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 
2.22 	9, 10; 41A.12, subdivision 4; 84.68; 86B.13, subdivisions 2, 4; 298.298; Laws 
2.23 	2010, chapter 215, article 3, section 3, subdivision 6, as amended.
2.24 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.25 	ARTICLE 1
2.26 	AGRICULTURE APPROPRIATIONS

2.27	Section 1. AGRICULTURE APPROPRIATIONS.
 	
2.28 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.29 	agencies and for the purposes specified in this article. The appropriations are from the 
2.30 	general fund, or another named fund, and are available for the fiscal years indicated 
2.31 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
2.32 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
2.33 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
2.34 	year 2017. "The biennium" is fiscal years 2016 and 2017. Appropriations for the fiscal 
2.35 	year ending June 30, 2015, are effective the day following final enactment.

2.36				APPROPRIATIONS
	
2.37				Available for the Year
	
2.38				Ending June 30
	
2.39					2016
		2017

2.40	Sec. 2. DEPARTMENT OF AGRICULTURE

2.41	Subdivision 1.Total Appropriation
 	$
	45,964,000
	$
	45,618,000

2.42	Appropriations by Fund
	
2.43		2016
	2017
	
3.1	General
	44,586,000
	44,240,000
	
3.2	Remediation
	388,000
	388,000
	
3.3	Agricultural
	990,000
	990,000
	
3.4 	The amounts that may be spent for each 
3.5 	purpose are specified in the following 
3.6 	subdivisions.

3.7	Subd. 2.Protection Services
 		17,958,000
		18,677,000

3.8	Appropriations by Fund
	
3.9		2016
	2017
	
3.10	General
	17,380,000
	18,099,000
	
3.11	Agricultural
	190,000
	190,000
	
3.12	Remediation
	388,000
	388,000
	
3.13 	$388,000 the first year and $388,000 the 
3.14 	second year are from the remediation fund 
3.15 	for administrative funding for the voluntary 
3.16 	cleanup program.
3.17 	$300,000 the first year and $250,000 
3.18 	the second year are for compensation 
3.19 	for destroyed or crippled animals under 
3.20 	Minnesota Statutes, section 3.737. This 
3.21 	appropriation may be spent to compensate 
3.22 	for animals that were destroyed or crippled 
3.23 	during fiscal years 2014 and 2015. If the 
3.24 	amount in the first year is insufficient, the 
3.25 	amount in the second year is available in the 
3.26 	first year.
3.27 	$50,000 the first year and $50,000 the second 
3.28 	year are for compensation for crop damage 
3.29 	under Minnesota Statutes, section 3.7371. If 
3.30 	the amount in the first year is insufficient, the 
3.31 	amount in the second year is available in the 
3.32 	first year.
3.33 	If the commissioner determines that claims 
3.34 	made under Minnesota Statutes, section 
3.35 	3.737 or 3.7371, are unusually high, amounts 
4.1 	appropriated for either program may be 
4.2 	transferred to the appropriation for the other 
4.3 	program.
4.4 	$225,000 the first year and $225,000 the 
4.5 	second year are for deposit in the noxious 
4.6 	weed and invasive plant species assistance 
4.7 	account established under Minnesota 
4.8 	Statutes, section 18.89, to be used to 
4.9 	implement the noxious weed grant program 
4.10 	under Minnesota Statutes, section 18.90.
4.11 	Notwithstanding Minnesota Statutes, section 
4.12 	18B.05, $90,000 the first year and $90,000 
4.13 	the second year are from the pesticide 
4.14 	regulatory account in the agricultural fund 
4.15 	for an increase in the operating budget for 
4.16 	the Laboratory Services Division.
4.17 	$100,000 the first year and $100,000 the 
4.18 	second year are from the pesticide regulatory 
4.19 	account in the agricultural fund to update 
4.20 	and modify applicator education and training 
4.21 	materials.
4.22 	$3,475,000 the first year and $4,244,000 
4.23 	the second year are for increased protection 
4.24 	services.

4.25
4.26	Subd. 3.Agricultural Marketing and 
Development
 		4,823,000
		3,873,000
	
4.27 	$186,000 the first year and $186,000 the 
4.28 	second year are for transfer to the Minnesota 
4.29 	grown account and may be used as grants 
4.30 	for Minnesota grown promotion under 
4.31 	Minnesota Statutes, section 17.102. Grants 
4.32 	may be made for one year. Notwithstanding 
4.33 	Minnesota Statutes, section 16A.28, the 
4.34 	appropriations encumbered under contract 
4.35 	on or before June 30, 2017, for Minnesota 
5.1 	grown grants in this paragraph are available 
5.2 	until June 30, 2019.
5.3 	$634,000 the first year and $634,000 the 
5.4 	second year are for continuation of the dairy 
5.5 	development and profitability enhancement 
5.6 	and dairy business planning grant programs 
5.7 	established under Laws 1997, chapter 
5.8 	216, section 7, subdivision 2, and Laws 
5.9 	2001, First Special Session chapter 2, 
5.10 	section 9, subdivision 2. The commissioner 
5.11 	may allocate the available sums among 
5.12 	permissible activities, including efforts to 
5.13 	improve the quality of milk produced in the 
5.14 	state in the proportions that the commissioner 
5.15 	deems most beneficial to Minnesota's 
5.16 	dairy farmers. The commissioner must 
5.17 	submit a detailed accomplishment report 
5.18 	and a work plan detailing future plans for, 
5.19 	and anticipated accomplishments from, 
5.20 	expenditures under this program to the 
5.21 	chairs and ranking minority members of the 
5.22 	legislative committees with jurisdiction over 
5.23 	agricultural policy and finance on or before 
5.24 	the start of each fiscal year. If significant 
5.25 	changes are made to the plans in the course 
5.26 	of the year, the commissioner must notify the 
5.27 	chairs and ranking minority members.
5.28 	The commissioner may use money 
5.29 	appropriated in this subdivision for annual 
5.30 	cost-share payments to resident farmers 
5.31 	or entities that sell, process, or package 
5.32 	agricultural products in this state for the costs 
5.33 	of organic certification. The commissioner 
5.34 	may allocate these funds for assistance for 
5.35 	persons transitioning from conventional to 
5.36 	organic agriculture.
6.1 	$100,000 the first year is to (1) enhance the 
6.2 	commissioner's efforts to identify existing 
6.3 	and emerging opportunities for Minnesota's 
6.4 	agricultural producers and processors to 
6.5 	export their products to Cuba, consistent with 
6.6 	federal law, and (2) effectively communicate 
6.7 	these opportunities to the producers and 
6.8 	processors. This is a onetime appropriation.
6.9 	$350,000 the first year is for grants to 
6.10 	communities to develop or expand food 
6.11 	hubs and other alternative community-based 
6.12 	food distribution systems. Of this amount, 
6.13 	$50,000 is for the commissioner to consult 
6.14 	with existing food hubs, alternative 
6.15 	community-based food distribution systems, 
6.16 	and University of Minnesota Extension 
6.17 	to identify best practices for use by other 
6.18 	Minnesota communities. No later than 
6.19 	December 15, 2015, the commissioner must 
6.20 	report to the legislative committees with 
6.21 	jurisdiction over agriculture and health 
6.22 	regarding the status of emerging alternative 
6.23 	community-based food distribution systems 
6.24 	in the state along with recommendations to 
6.25 	eliminate any barriers to success. This is a 
6.26 	onetime appropriation.
6.27 	$500,000 the first year is for urban 
6.28 	agriculture development grants under 
6.29 	Minnesota Statutes, section 17.1095. This is 
6.30 	a onetime appropriation.

6.31
6.32	Subd. 4.Bioenergy and Value-Added 
Agriculture
 		7,235,000
		7,235,000
	
6.33 	$6,235,000 the first year and $6,235,000 
6.34 	the second year are for the agricultural 
6.35 	growth, research, and innovation program 
6.36 	in Minnesota Statutes, section 41A.12. No 
7.1 	later than February 1, 2016, and February 
7.2 	1, 2017, the commissioner must report to 
7.3 	the legislative committees with jurisdiction 
7.4 	over agriculture policy and finance regarding 
7.5 	the commissioner's accomplishments 
7.6 	and anticipated accomplishments in 
7.7 	the following areas: facilitating the 
7.8 	start-up, modernization, or expansion of 
7.9 	livestock operations including beginning 
7.10 	and transitioning livestock operations; 
7.11 	developing new markets for Minnesota 
7.12 	farmers by providing more fruits, vegetables, 
7.13 	meat, grain, and dairy for Minnesota school 
7.14 	children; assisting value-added agricultural 
7.15 	businesses to begin or expand, access new 
7.16 	markets, or diversify products; facilitating 
7.17 	the start-up, modernization, or expansion 
7.18 	of other beginning and transitioning farms, 
7.19 	including loans under Minnesota Statutes, 
7.20 	section 41B.056; research on conventional 
7.21 	and cover crops; sustainable agriculture 
7.22 	on farm research and demonstration; and 
7.23 	research on bioenergy, biobased content, 
7.24 	or biobased formulated products and other 
7.25 	renewable energy development.
7.26 	The commissioner may use up to 4.5 percent 
7.27 	of this appropriation for costs incurred to 
7.28 	administer the program. Any unencumbered 
7.29 	balance does not cancel at the end of the first 
7.30 	year and is available for the second year. 
7.31 	Notwithstanding Minnesota Statutes, section 
7.32 	16A.28, the appropriations encumbered 
7.33 	under contract on or before June 30, 2017, for 
7.34 	agricultural growth, research, and innovation 
7.35 	grants in this subdivision are available until 
7.36 	June 30, 2019.
8.1 	Money appropriated in this subdivision may 
8.2 	be used for grants under this paragraph. 
8.3 	The NextGen Energy Board, established in 
8.4 	Minnesota Statutes, section 41A.105, shall 
8.5 	make recommendations to the commissioner 
8.6 	on grants for owners of Minnesota facilities 
8.7 	producing bioenergy, biobased content, 
8.8 	or a biobased formulated product; for 
8.9 	organizations that provide for on-station, 
8.10 	on-farm field scale research and outreach to 
8.11 	develop and test the agronomic and economic 
8.12 	requirements of diverse strands of prairie 
8.13 	plants and other perennials for bioenergy 
8.14 	systems; or for certain nongovernmental 
8.15 	entities. For the purposes of this paragraph, 
8.16 	"bioenergy" includes transportation fuels 
8.17 	derived from cellulosic material, as well as 
8.18 	the generation of energy for commercial heat, 
8.19 	industrial process heat, or electrical power 
8.20 	from cellulosic materials via gasification or 
8.21 	other processes. Grants are limited to 50 
8.22 	percent of the cost of research, technical 
8.23 	assistance, or equipment related to bioenergy, 
8.24 	biobased content, or biobased formulated 
8.25 	product production or $500,000, whichever 
8.26 	is less. Grants to nongovernmental entities 
8.27 	for the development of business plans and 
8.28 	structures related to community ownership 
8.29 	of eligible bioenergy facilities together may 
8.30 	not exceed $150,000. The board shall make 
8.31 	a good-faith effort to select projects that have 
8.32 	merit and, when taken together, represent a 
8.33 	variety of bioenergy technologies, biomass 
8.34 	feedstocks, and geographic regions of the 
8.35 	state. Projects must have a qualified engineer 
8.36 	provide certification on the technology and 
9.1 	fuel source. Grantees must provide reports at 
9.2 	the request of the commissioner.
9.3 	Notwithstanding Minnesota Statutes, section 
9.4 	41A.12, subdivision 3, of the amount 
9.5 	appropriated in this subdivision, $1,000,000 
9.6 	the first year and $1,000,000 the second year 
9.7 	are for distribution in equal amounts to each 
9.8 	of the state's county fairs to preserve and 
9.9 	promote Minnesota agriculture.
9.10 	Of the amount appropriated in this 
9.11 	subdivision, up to $2,500,000 the first 
9.12 	year and $2,500,000 the second year are 
9.13 	for incentive payments under Minnesota 
9.14 	Statutes, sections 41A.14, 41A.15, and 
9.15 	41A.16. Up to 4.5 percent of the amount 
9.16 	available under this paragraph may be used 
9.17 	for administration of the incentive payments.

9.18
9.19	Subd. 5.Administration and Financial 
Assistance
 		15,948,000
		15,833,000

9.20	Appropriations by Fund
	
9.21		2016
	2017
	
9.22	General
	15,148,000
	15,033,000
	
9.23	Agricultural
	800,000
	800,000
	
9.24 	$47,000 the first year and $47,000 the second 
9.25 	year are for the Northern Crops Institute. 
9.26 	These appropriations may be spent to 
9.27 	purchase equipment.
9.28 	$18,000 the first year and $18,000 the 
9.29 	second year are for a grant to the Minnesota 
9.30 	Livestock Breeders Association.
9.31 	$235,000 the first year and $235,000 the 
9.32 	second year are for grants to the Minnesota 
9.33 	Agricultural Education and Leadership 
9.34 	Council for programs of the council under 
9.35 	Minnesota Statutes, chapter 41D.
10.1 	$474,000 the first year and $474,000 the 
10.2 	second year are for payments to county and 
10.3 	district agricultural societies and associations 
10.4 	under Minnesota Statutes, section 38.02, 
10.5 	subdivision 1. Aid payments to county and 
10.6 	district agricultural societies and associations 
10.7 	shall be disbursed no later than July 15 of 
10.8 	each year. These payments are the amount of 
10.9 	aid from the state for an annual fair held in 
10.10 	the previous calendar year.
10.11 	$1,000 the first year and $1,000 the second 
10.12 	year are for grants to the Minnesota State 
10.13 	Poultry Association.
10.14 	$108,000 the first year and $108,000 the 
10.15 	second year are for annual grants to the 
10.16 	Minnesota Turf Seed Council for basic 
10.17 	and applied research on: (1) the improved 
10.18 	production of forage and turf seed related to 
10.19 	new and improved varieties; and (2) native 
10.20 	plants, including plant breeding, nutrient 
10.21 	management, pest management, disease 
10.22 	management, yield, and viability. The grant 
10.23 	recipient may subcontract with a qualified 
10.24 	third party for some or all of the basic or 
10.25 	applied research.
10.26 	$500,000 the first year and $500,000 the 
10.27 	second year are for grants to Second Harvest 
10.28 	Heartland on behalf of Minnesota's six 
10.29 	Second Harvest food banks for the purchase 
10.30 	of milk for distribution to Minnesota's food 
10.31 	shelves and other charitable organizations 
10.32 	that are eligible to receive food from the food 
10.33 	banks. Milk purchased under the grants must 
10.34 	be acquired from Minnesota milk processors 
10.35 	and based on low-cost bids. The milk must be 
11.1 	allocated to each Second Harvest food bank 
11.2 	serving Minnesota according to the formula 
11.3 	used in the distribution of United States 
11.4 	Department of Agriculture commodities 
11.5 	under The Emergency Food Assistance 
11.6 	Program (TEFAP). Second Harvest 
11.7 	Heartland must submit quarterly reports 
11.8 	to the commissioner on forms prescribed 
11.9 	by the commissioner. The reports must 
11.10 	include, but are not limited to, information 
11.11 	on the expenditure of funds, the amount 
11.12 	of milk purchased, and the organizations 
11.13 	to which the milk was distributed. Second 
11.14 	Harvest Heartland may enter into contracts 
11.15 	or agreements with food banks for shared 
11.16 	funding or reimbursement of the direct 
11.17 	purchase of milk. Each food bank receiving 
11.18 	money from this appropriation may use up to 
11.19 	two percent of the grant for administrative 
11.20 	expenses.
11.21 	$500,000 the first year and $500,000 the 
11.22 	second year are for grants to Second Harvest 
11.23 	Heartland on behalf of the six Feeding 
11.24 	America food banks that serve Minnesota 
11.25 	to compensate agricultural producers and 
11.26 	processors for costs incurred to harvest 
11.27 	and package for transfer surplus fruits, 
11.28 	vegetables, or other agricultural commodities 
11.29 	that would otherwise go unharvested, be 
11.30 	discarded, or be sold in a secondary market. 
11.31 	Surplus commodities must be distributed 
11.32 	statewide to food shelves and other charitable 
11.33 	organizations that are eligible to receive 
11.34 	food from the food banks. Surplus food 
11.35 	acquired under this appropriation must be 
11.36 	from Minnesota producers and processors. 
12.1 	Second Harvest Heartland must report when 
12.2 	required by, and in the form prescribed 
12.3 	by, the commissioner. Second Harvest 
12.4 	Heartland may use up to 11 percent of any 
12.5 	grant received for administrative expenses, 
12.6 	and up to four percent to reimburse for 
12.7 	transportation expenses.
12.8 	$94,000 the first year and $94,000 the 
12.9 	second year are for transfer to the Board of 
12.10 	Trustees of the Minnesota State Colleges 
12.11 	and Universities for statewide mental health 
12.12 	counseling support to farm families and 
12.13 	business operators through farm business 
12.14 	management programs at Central Lakes 
12.15 	College and Ridgewater College.
12.16 	$17,000 the first year and $17,000 the 
12.17 	second year are for grants to the Minnesota 
12.18 	Horticultural Society.
12.19 	$25,000 the first year is for the livestock 
12.20 	industry study required in this act. This is a 
12.21 	onetime appropriation.
12.22 	Notwithstanding Minnesota Statutes, 
12.23 	section 18C.131, $800,000 the first year 
12.24 	and $800,000 the second year are from the 
12.25 	fertilizer account in the agricultural fund 
12.26 	for grants for fertilizer research as awarded 
12.27 	by the Minnesota Agricultural Fertilizer 
12.28 	Research and Education Council under 
12.29 	Minnesota Statutes, section 18C.71. The 
12.30 	amount appropriated in either fiscal year 
12.31 	must not exceed 57 percent of the inspection 
12.32 	fee revenue collected under Minnesota 
12.33 	Statutes, section 18C.425, subdivision 6, 
12.34 	during the previous fiscal year. No later 
12.35 	than February 1, 2017, the commissioner 
13.1 	shall report to the legislative committees 
13.2 	with jurisdiction over agriculture finance. 
13.3 	The report must include the progress and 
13.4 	outcome of funded projects as well as the 
13.5 	sentiment of the council concerning the need 
13.6 	for additional research funds.
13.7 	$8,500,000 the first year and $8,500,000 
13.8 	the second year are for transfer to the fund 
13.9 	created in Minnesota Statutes, section 
13.10 	41A.18, subdivision 2. Of these amounts: 
13.11 	(1) at least $2,000,000 each year is for 
13.12 	agriculture rapid response under Minnesota 
13.13 	Statutes, section 41A.18, subdivision 1, 
13.14 	clause (2);
13.15 	(2) at least $1,000,000 each year is for 
13.16 	agricultural education under Minnesota 
13.17 	Statutes, section 41A.18, subdivision 1, 
13.18 	clause (3); and
13.19 	(3) at least $500,000 each year is for farm 
13.20 	business management under Minnesota 
13.21 	Statutes, section 41A.18, subdivision 1, 
13.22 	clause (3).
13.23 	To the extent practicable, funds expended 
13.24 	under Minnesota Statutes, section 41A.18, 
13.25 	subdivision 1, clauses (1) and (2), must 
13.26 	supplement and not supplant existing sources 
13.27 	and levels of funding. The base amount 
13.28 	for this program in fiscal year 2018 and 
13.29 	thereafter is $3,500,000.
13.30 	$300,000 the first year is for grants to the 
13.31 	director of the University of Minnesota 
13.32 	Extension for a grant program to expand 
13.33 	the Takeoff 4-H Science, Technology, 
13.34 	Engineering, Arts, and Mathematics 
13.35 	(STEAM) Club for Somali youth throughout 
14.1 	Minnesota. The University of Minnesota 
14.2 	Extension may use a portion of each grant for 
14.3 	grant administration and direct costs related 
14.4 	to the Takeoff 4-H STEAM partnership 
14.5 	between the University of Minnesota 
14.6 	Extension and Ka Joog.

14.7	Sec. 3. BOARD OF ANIMAL HEALTH
 	$
	5,318,000
	$
	5,384,000

14.8
14.9	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	2,643,000
	$
	2,643,000

14.10 	ARTICLE 2
14.11 	AGRICULTURE STATUTORY CHANGES

14.12 	Section 1. Minnesota Statutes 2014, section 13.643, subdivision 1, is amended to read:
14.13 		Subdivision 1.Department of Agriculture data. (a) Loan and grant applicant 
14.14 	data. The following data on applicants, collected by the Department of Agriculture in its 
14.15 	sustainable agriculture revolving loan and grant programs under sections 17.115 and section 
14.16 	17.116, are private or nonpublic: nonfarm income; credit history; insurance coverage; 
14.17 	machinery and equipment list; financial information; and credit information requests.
14.18 	(b) Farm advocate data. The following data supplied by farmer clients to 
14.19 	Minnesota farm advocates and to the Department of Agriculture are private data on 
14.20 	individuals: financial history, including listings of assets and debts, and personal and 
14.21 	emotional status information.

14.22 	Sec. 2. [17.1095] PILOT URBAN AGRICULTURE DEVELOPMENT GRANTS.
14.23 		Subdivision 1.Establishment. (a) The commissioner shall establish and administer 
14.24 	a pilot grant program to provide financial and technical assistance to cities, organizations, 
14.25 	or individuals for urban agriculture projects. Grant applications must be submitted to the 
14.26 	commissioner on forms provided by the commissioner. The commissioner shall award 
14.27 	grants to meritorious projects within the limits of available funding.
14.28 	(b) For purposes of this section, "eligible city" means a Minnesota home rule or 
14.29 	statutory city located in:
14.30 	(1) the seven-county metropolitan area, as defined under section 473.121, 
14.31 	subdivision 2; or
14.32 	(2) the core county or counties of a metropolitan statistical area.
15.1 	(c) The commissioner shall take steps to ensure that eligible organizations serving 
15.2 	ethnic communities are made aware of the grant and that they are encouraged to apply.
15.3 		Subd. 2.Grants to organizations or individuals. The commissioner shall solicit 
15.4 	grant applications from individuals and organizations for projects located in urban 
15.5 	agriculture development zones in eligible cities. The commissioner shall rank applications 
15.6 	based on the project's ability to:
15.7 	(1) increase fresh food access, including access to affordable organic foods, 
15.8 	to improve both local and regional food security through the development of urban 
15.9 	agriculture projects; and
15.10 	(2) reduce or eliminate health disparities related to food access.
15.11 		Subd. 3.Grants to cities. The commissioner shall solicit grant applications from 
15.12 	eligible cities that have adopted a zoning ordinance that designates urban agriculture 
15.13 	development zones. Applicant cities must certify to the commissioner that the ordinance 
15.14 	will remain in effect for at least ten years and must repay any grant funds received under 
15.15 	this section if the ordinance is repealed or amended to prohibit urban agriculture during 
15.16 	the ten-year period.
15.17 		Subd. 4.Expiration. This section expires July 1, 2018.

15.18 	Sec. 3. Minnesota Statutes 2014, section 18B.01, subdivision 28, is amended to read:
15.19 		Subd. 28.Structural pest. "Structural pest" means a an invertebrate pest, other 
15.20 	than a plant, or commensal rodent in, on, under, or near a structure such as a residential 
15.21 	or commercial building.

15.22 	Sec. 4. Minnesota Statutes 2014, section 18B.01, subdivision 29, is amended to read:
15.23 		Subd. 29.Structural pest control. "Structural pest control" means the control of 
15.24 	any structural pest through the use of a device, a procedure, or application of pesticides or 
15.25 	through other means in or around a building or other structures, including trucks, boxcars, 
15.26 	ships, aircraft, docks, and fumigation vaults, and the business activity related to use of a 
15.27 	device, a procedure, or application of a pesticide.

15.28 	Sec. 5. Minnesota Statutes 2014, section 18B.32, subdivision 1, is amended to read:
15.29 		Subdivision 1.Requirement. (a) A person may not engage in structural pest 
15.30 	control applications:
15.31 	(1) for hire without a structural pest control license; and
15.32 	(2) as a sole proprietorship, company, partnership, or corporation unless the person 
15.33 	is or employs a licensed master in structural pest control operations.
16.1 	(b) A structural pest control licensee must have a valid license identification card 
16.2 	when applying to purchase a restricted use pesticide or apply pesticides for hire and must 
16.3 	display it upon demand by an authorized representative of the commissioner or a law 
16.4 	enforcement officer. The license identification card must contain information required by 
16.5 	the commissioner.
16.6 	(c) Notwithstanding the licensing requirements of this subdivision, a person may 
16.7 	control the following nuisance or economically damaging wild animals, by trapping, 
16.8 	without a structural pest control license:
16.9 	(1) fur-bearing animals, as defined in section 97A.015, with a valid trapping license 
16.10 	or special permit from the commissioner of natural resources; and
16.11 	(2) skunks, woodchucks, gophers, porcupines, coyotes, moles, and weasels.

16.12 	Sec. 6. Minnesota Statutes 2014, section 18B.33, subdivision 1, is amended to read:
16.13 		Subdivision 1.Requirement. (a) A person may not apply a pesticide for hire 
16.14 	without a commercial applicator license for the appropriate use categories or a structural 
16.15 	pest control license.
16.16 	(b) A commercial applicator licensee must have a valid license identification card 
16.17 	when applying to purchase a restricted use pesticide or apply pesticides for hire and must 
16.18 	display it upon demand by an authorized representative of the commissioner or a law 
16.19 	enforcement officer. The commissioner shall prescribe the information required on the 
16.20 	license identification card.

16.21 	Sec. 7. Minnesota Statutes 2014, section 18B.34, subdivision 1, is amended to read:
16.22 		Subdivision 1.Requirement. (a) Except for a licensed commercial applicator, 
16.23 	certified private applicator, or licensed structural pest control applicator, a person, 
16.24 	including a government employee, may not purchase or use a restricted use pesticide in 
16.25 	performance of official duties without having a noncommercial applicator license for an 
16.26 	appropriate use category.
16.27 	(b) A licensee must have a valid license identification card when applying pesticides 
16.28 	and must display it upon demand by an authorized representative of the commissioner 
16.29 	or a law enforcement officer. The license identification card must contain information 
16.30 	required by the commissioner.

16.31 	Sec. 8. Minnesota Statutes 2014, section 18G.10, subdivision 3, is amended to read:
16.32 		Subd. 3.Cooperative agreements. The commissioner may enter into cooperative 
16.33 	agreements with federal and state agencies for administration of the export certification 
17.1 	program. An exporter of plants or plant products desiring to originate shipments from 
17.2 	Minnesota to a foreign country requiring a phytosanitary certificate or export certificate 
17.3 	must submit an application to the commissioner.

17.4 	Sec. 9. Minnesota Statutes 2014, section 18G.10, subdivision 4, is amended to read:
17.5 		Subd. 4.Phytosanitary and export certificates. An exporter of plants or plant 
17.6 	products desiring to originate shipments from Minnesota to a foreign country requiring 
17.7 	a phytosanitary certificate or export certificate must submit an application to the 
17.8 	commissioner. Application for phytosanitary certificates or export certificates must be 
17.9 	made on forms provided or approved by the commissioner. The commissioner shall may 
17.10 	conduct inspections of plants, plant products, or facilities for persons that have applied for 
17.11 	or intend to apply for a phytosanitary certificate or export certificate from the commissioner. 
17.12 	Inspections must include one or more of the following as requested or required:
17.13 	(1) an inspection of the plants or plant products intended for export under a 
17.14 	phytosanitary certificate or export certificate;
17.15 	(2) field inspections of growing plants to determine presence or absence of plant 
17.16 	diseases, if necessary;
17.17 	(3) laboratory diagnosis for presence or absence of plant diseases, if necessary;
17.18 	(4) observation and evaluation of procedures and facilities utilized in handling 
17.19 	plants and plant products, if necessary; and
17.20 	(5) review of United States Department of Agriculture, Federal Grain Inspection 
17.21 	Service Official Export Grain Inspection Certificate logs.
17.22 	The commissioner may issue a phytosanitary certificate or export certificate if the 
17.23 	plants or plant products satisfactorily meet the requirements of the importing foreign 
17.24 	country and the United States Department of Agriculture requirements. The requirements 
17.25 	of the destination countries must be met by the applicant.

17.26 	Sec. 10. Minnesota Statutes 2014, section 18H.02, subdivision 20, is amended to read:
17.27 		Subd. 20.Nursery stock. "Nursery stock" means a plant intended for planting or 
17.28 	propagation, including, but not limited to, trees, shrubs, vines, perennials, biennials, grafts, 
17.29 	cuttings, and buds that may be sold for propagation, whether cultivated or wild, and all 
17.30 	viable parts of these plants. Nursery stock does not include:
17.31 	(1) field and forage crops or sod;
17.32 	(2) the seeds of grasses, cereal grains, vegetable crops, and flowers;
17.33 	(3) vegetable plants, bulbs, or tubers;
17.34 	(4) cut flowers, unless stems or other portions are intended for propagation;
18.1 	(5) annuals; or
18.2 	(6) Christmas trees.

18.3 	Sec. 11. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision 
18.4 	to read:
18.5 		Subd. 32a.Sod. "Sod" means the upper portion of soil that contains the roots of 
18.6 	grasses and the living grass plants.

18.7 	Sec. 12. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision 
18.8 	to read:
18.9 		Subd. 35.Tropical plant. "Tropical plant" means a plant that has a United States 
18.10 	Department of Agriculture hardiness zone designation of zone 6 or greater, or an annual 
18.11 	minimum hardiness temperature of -9 degrees Fahrenheit.

18.12 	Sec. 13. Minnesota Statutes 2014, section 18H.06, subdivision 2, is amended to read:
18.13 		Subd. 2.Occasional sales. (a) An individual may offer nursery stock for sale and be 
18.14 	exempt from the requirement to obtain a nursery stock dealer certificate if:
18.15 	(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;
18.16 	(2) all nursery stock sold or distributed by the individual is intended for planting 
18.17 	in Minnesota;
18.18 	(3) all nursery stock purchased or procured for resale or distribution was grown in 
18.19 	Minnesota and has been certified by the commissioner; and
18.20 	(4) conducts sales or distributions of nursery stock on ten or fewer days in a calendar 
18.21 	year.
18.22 	(b) The commissioner may prescribe the conditions of the exempt nursery sales under 
18.23 	this subdivision and may conduct routine inspections of the nursery stock offered for sale.

18.24 	Sec. 14. Minnesota Statutes 2014, section 18J.01, is amended to read:
18.25 	18J.01 DEFINITIONS.
18.26 	(a) The definitions in sections 18G.02, 18H.02, 18K.03, 27.01, 223.16, 231.01, 
18.27 	and 232.21 apply to this chapter.
18.28 	(b) For purposes of this chapter, "associated rules" means rules adopted under this 
18.29 	chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, or sections 21.80 to 21.92.

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

19.1 	Sec. 15. Minnesota Statutes 2014, section 18J.02, is amended to read:
19.2 	18J.02 DUTIES OF COMMISSIONER.
19.3 	The commissioner shall administer and enforce this chapter, chapters 18G, 18H, 
19.4 	18K, 27, 223, 231, and 232; sections 21.80 to 21.92; and associated rules.

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

19.6 	Sec. 16. Minnesota Statutes 2014, section 18J.03, is amended to read:
19.7 	18J.03 CIVIL LIABILITY.
19.8 	A person regulated by this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, 
19.9 	or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or 
19.10 	associated rules by the person's employee or agent.

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

19.12 	Sec. 17. Minnesota Statutes 2014, section 18J.04, subdivision 1, is amended to read:
19.13 		Subdivision 1.Access and entry. The commissioner, upon presentation of official 
19.14 	department credentials, must be granted immediate access at reasonable times to sites 
19.15 	where a person manufactures, distributes, uses, handles, disposes of, stores, or transports 
19.16 	seeds, plants, grain, household goods, general merchandise, produce, or other living or 
19.17 	nonliving products or other objects regulated under chapter 18G, 18H, 18K, 27, 223, 231, 
19.18 	or 232; sections 21.80 to 21.92; or associated rules.

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

19.20 	Sec. 18. Minnesota Statutes 2014, section 18J.04, subdivision 2, is amended to read:
19.21 		Subd. 2.Purpose of entry. (a) The commissioner may enter sites for:
19.22 	(1) inspection of inventory and equipment for the manufacture, storage, handling, 
19.23 	distribution, disposal, or any other process regulated under chapter 18G, 18H, 18K, 27, 
19.24 	223, 231, or 232; sections 21.80 to 21.92; or associated rules;
19.25 	(2) sampling of sites, seeds, plants, products, grain, household goods, general 
19.26 	merchandise, produce, or other living or nonliving objects that are manufactured, stored, 
19.27 	distributed, handled, or disposed of at those sites and regulated under chapter 18G, 18H, 
19.28 	18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;
19.29 	(3) inspection of records related to the manufacture, distribution, storage, handling, 
19.30 	or disposal of seeds, plants, products, grain, household goods, general merchandise, 
20.1 	produce, or other living or nonliving objects regulated under chapter 18G, 18H, 18K, 27, 
20.2 	223, 231, or 232; sections 21.80 to 21.92; or associated rules;
20.3 	(4) investigating compliance with chapter 18G, 18H, 18K, 27, 223, 231, or 232; 
20.4 	sections 21.80 to 21.92; or associated rules; or
20.5 	(5) other purposes necessary to implement chapter 18G, 18H, 18K, 27, 223, 231, or 
20.6 	232; sections 21.80 to 21.92; or associated rules.
20.7 	(b) The commissioner may enter any public or private premises during or after 
20.8 	regular business hours without notice of inspection when a suspected violation of chapter 
20.9 	18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules may 
20.10 	threaten public health or the environment.

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

20.12 	Sec. 19. Minnesota Statutes 2014, section 18J.04, subdivision 3, is amended to read:
20.13 		Subd. 3.Notice of inspection samples and analyses. (a) The commissioner shall 
20.14 	provide the owner, operator, or agent in charge with a receipt describing any samples 
20.15 	obtained. If requested, the commissioner shall split any samples obtained and provide 
20.16 	them to the owner, operator, or agent in charge. If an analysis is made of the samples, 
20.17 	a copy of the results of the analysis must be furnished to the owner, operator, or agent 
20.18 	in charge within 30 days after an analysis has been performed. If an analysis is not 
20.19 	performed, the commissioner must notify the owner, operator, or agent in charge within 30 
20.20 	days of the decision not to perform the analysis.
20.21 	(b) The sampling and analysis must be done according to methods provided for 
20.22 	under applicable provisions of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 
20.23 	21.80 to 21.92; or associated rules. In cases not covered by those sections and methods 
20.24 	or in cases where methods are available in which improved applicability has been 
20.25 	demonstrated the commissioner may adopt appropriate methods from other sources.

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

20.27 	Sec. 20. Minnesota Statutes 2014, section 18J.04, subdivision 4, is amended to read:
20.28 		Subd. 4.Inspection requests by others. (a) A person who believes that a violation 
20.29 	of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated 
20.30 	rules has occurred may request an inspection by giving notice to the commissioner of the 
20.31 	violation. The notice must be in writing, state with reasonable particularity the grounds 
20.32 	for the notice, and be signed by the person making the request.
21.1 	(b) If after receiving a notice of violation the commissioner reasonably believes that 
21.2 	a violation has occurred, the commissioner shall make a special inspection in accordance 
21.3 	with the provisions of this section as soon as practicable, to determine if a violation has 
21.4 	occurred.
21.5 	(c) An inspection conducted pursuant to a notice under this subdivision may cover 
21.6 	an entire site and is not limited to the portion of the site specified in the notice. If the 
21.7 	commissioner determines that reasonable grounds to believe that a violation occurred 
21.8 	do not exist, the commissioner must notify the person making the request in writing of 
21.9 	the determination.

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

21.11 	Sec. 21. Minnesota Statutes 2014, section 18J.05, subdivision 1, is amended to read:
21.12 		Subdivision 1.Enforcement required. (a) A violation of chapter 18G, 18H, 18K, 27, 
21.13 	223, 231, or 232; sections 21.80 to 21.92; or an associated rule is a violation of this chapter.
21.14 	(b) Upon the request of the commissioner, county attorneys, sheriffs, and other 
21.15 	officers having authority in the enforcement of the general criminal laws must take action 
21.16 	to the extent of their authority necessary or proper for the enforcement of chapter 18G, 
21.17 	18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules or valid 
21.18 	orders, standards, stipulations, and agreements of the commissioner.

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

21.20 	Sec. 22. Minnesota Statutes 2014, section 18J.05, subdivision 2, is amended to read:
21.21 		Subd. 2.Commissioner's discretion. If minor violations of chapter 18G, 18H, 
21.22 	18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules occur or the 
21.23 	commissioner believes the public interest will be best served by a suitable notice of 
21.24 	warning in writing, this section does not require the commissioner to:
21.25 	(1) report the violation for prosecution;
21.26 	(2) institute seizure proceedings; or
21.27 	(3) issue a withdrawal from distribution, stop-sale, or other order.

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

21.29 	Sec. 23. Minnesota Statutes 2014, section 18J.05, subdivision 6, is amended to read:
21.30 		Subd. 6.Agent for service of process. All persons licensed, permitted, registered, 
21.31 	or certified under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or 
21.32 	associated rules must appoint the commissioner as the agent upon whom all legal process 
22.1 	may be served and service upon the commissioner is deemed to be service on the licensee, 
22.2 	permittee, registrant, or certified person.

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

22.4 	Sec. 24. Minnesota Statutes 2014, section 18J.06, is amended to read:
22.5 	18J.06 FALSE STATEMENT OR RECORD.
22.6 	A person must not knowingly make or offer a false statement, record, or other 
22.7 	information as part of:
22.8 	(1) an application for registration, license, certification, or permit under chapter 18G, 
22.9 	18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;
22.10 	(2) records or reports required under chapter 18G, 18H, 18K, 27, 223, 231, or 232; 
22.11 	sections 21.80 to 21.92; or associated rules; or
22.12 	(3) an investigation of a violation of chapter 18G, 18H, 18K, 27, 223, 231, or 232; 
22.13 	sections 21.80 to 21.92; or associated rules.

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

22.15 	Sec. 25. Minnesota Statutes 2014, section 18J.07, subdivision 3, is amended to read:
22.16 		Subd. 3.Cancellation of registration, permit, license, certification. The 
22.17 	commissioner may cancel or revoke a registration, permit, license, or certification 
22.18 	provided for under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; 
22.19 	or associated rules or refuse to register, permit, license, or certify under provisions of 
22.20 	chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules 
22.21 	if the registrant, permittee, licensee, or certified person has used fraudulent or deceptive 
22.22 	practices in the evasion or attempted evasion of a provision of chapter 18G, 18H, 18K, 27, 
22.23 	223, 231, or 232; sections 21.80 to 21.92; or associated rules.

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

22.25 	Sec. 26. Minnesota Statutes 2014, section 18J.07, subdivision 4, is amended to read:
22.26 		Subd. 4.Service of order or notice. (a) If a person is not available for service of an 
22.27 	order, the commissioner may attach the order to the facility, site, seed or seed container, 
22.28 	plant or other living or nonliving object regulated under chapter 18G, 18H, 18K, 27, 223, 
22.29 	231, or 232; sections 21.80 to 21.92; or associated rules and notify the owner, custodian, 
22.30 	other responsible party, or registrant.
23.1 	(b) The seed, seed container, plant, or other living or nonliving object regulated 
23.2 	under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated 
23.3 	rules may not be sold, used, tampered with, or removed until released under conditions 
23.4 	specified by the commissioner, by an administrative law judge, or by a court.

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

23.6 	Sec. 27. Minnesota Statutes 2014, section 18J.07, subdivision 5, is amended to read:
23.7 		Subd. 5.Unsatisfied judgments. (a) An applicant for a license, permit, registration, 
23.8 	or certification under provisions of this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 
23.9 	232; sections 21.80 to 21.92; or associated rules may not allow a final judgment against 
23.10 	the applicant for damages arising from a violation of those statutes or rules to remain 
23.11 	unsatisfied for a period of more than 30 days.
23.12 	(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation of this 
23.13 	chapter results in automatic suspension of the license, permit, registration, or certification.

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

23.15 	Sec. 28. Minnesota Statutes 2014, section 18J.09, is amended to read:
23.16 	18J.09 CREDITING OF PENALTIES, FEES, AND COSTS.
23.17 	Penalties, cost reimbursements, fees, and other money collected under this chapter 
23.18 	must be deposited into the state treasury and credited to the appropriate nursery and 
23.19 	phytosanitary, industrial hemp, or seed account.

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

23.21 	Sec. 29. Minnesota Statutes 2014, section 18J.11, subdivision 1, is amended to read:
23.22 		Subdivision 1.General violation. Except as provided in subdivisions 2 and, 3, and 
23.23 	4, a person is guilty of a misdemeanor if the person violates this chapter or an order, 
23.24 	standard, stipulation, agreement, or schedule of compliance of the commissioner.

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

23.26 	Sec. 30. Minnesota Statutes 2014, section 18J.11, is amended by adding a subdivision 
23.27 	to read:
23.28 		Subd. 4.Controlled substance offenses. Prosecution under this section does not 
23.29 	preclude prosecution under chapter 152.

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

24.2 	Sec. 31. [18K.01] SHORT TITLE.
24.3 	This chapter may be referred to as the "Industrial Hemp Development Act."

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

24.5 	Sec. 33. [18K.03] DEFINITIONS.
24.6 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
24.7 		Subd. 2.Commissioner. "Commissioner" means the commissioner of agriculture.
24.8 		Subd. 3.Industrial hemp. "Industrial hemp" means the plant Cannabis sativa L. 
24.9 	and any part of the plant, whether growing or not, with a delta-9 tetrahydrocannabinol 
24.10 	concentration of not more than 0.3 percent on a dry weight basis. Industrial hemp is not 
24.11 	marijuana as defined in section 152.01, subdivision 9.
24.12 		Subd. 4.Marijuana. "Marijuana" has the meaning given in section 152.01, 
24.13 	subdivision 9.

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

24.15 	Sec. 34. [18K.035] PILOT PROGRAM; OTHER RESEARCH AUTHORIZED.
24.16 		Subdivision 1.Authorized activity. The commissioner may grow or cultivate 
24.17 	industrial hemp pursuant to a pilot program administered by the commissioner to study 
24.18 	the growth, cultivation, or marketing of industrial hemp. The commissioner may: (1) 
24.19 	authorize institutions of higher education to grow or cultivate industrial hemp as part 
24.20 	of the commissioner's pilot program or as is necessary to perform other agricultural, 
24.21 	renewable energy, or academic research; and (2) contract with public or private entities for 
24.22 	testing or other activities authorized under this subdivision. Authorized activity under this 
24.23 	section may include collecting seed from wild hemp sources.
24.24 		Subd. 2.Site registration. Before growing or cultivating industrial hemp pursuant 
24.25 	to this section, each site must be registered with and certified by the commissioner. A 
24.26 	person must register each site annually in the form prescribed by the commissioner and 
24.27 	must pay the annual registration and certification fee established by the commissioner in 
24.28 	accordance with section 16A.1285, subdivision 2.
24.29 		Subd. 3.Rulemaking. The commissioner may adopt rules that govern the pilot 
24.30 	program pursuant to this section and Public Law 113-79.

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

25.1 	Sec. 35. [18K.04] AGRICULTURAL CROP; POSSESSION AUTHORIZED.
25.2 	Industrial hemp is an agricultural crop in this state. A person may possess, transport, 
25.3 	process, sell, or buy industrial hemp that is grown pursuant to this chapter.

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

25.5 	Sec. 36. [18K.05] LICENSING.
25.6 		Subdivision 1.Requirement; issuance; presumption. (a) A person must obtain a 
25.7 	license from the commissioner before growing industrial hemp for commercial purposes. 
25.8 	A person must apply to the commissioner in the form prescribed by the commissioner and 
25.9 	must pay the annual registration and inspection fee established by the commissioner in 
25.10 	accordance with section 16A.1285, subdivision 2. The license application must include 
25.11 	the name and address of the applicant and the legal description of the land area or areas 
25.12 	where industrial hemp will be grown by the applicant.
25.13 	(b) When an applicant has paid the fee and completed the application process to the 
25.14 	satisfaction of the commissioner, the commissioner must issue a license which is valid 
25.15 	until December 31 of the year of application.
25.16 	(c) A person licensed under this section is presumed to be growing industrial hemp 
25.17 	for commercial purposes.
25.18 		Subd. 2.Background check; data classification. The commissioner must require 
25.19 	each first-time applicant for a license to submit to a background investigation conducted 
25.20 	by the Bureau of Criminal Apprehension as a condition of licensure. As part of the 
25.21 	background investigation, the Bureau of Criminal Apprehension must conduct criminal 
25.22 	history checks of Minnesota records and is authorized to exchange fingerprints with the 
25.23 	United States Department of Justice, Federal Bureau of Investigation for the purpose of a 
25.24 	criminal background check of the national files. The cost of the investigation must be paid 
25.25 	by the applicant. Criminal history records provided to the commissioner under this section 
25.26 	must be treated as private data on individuals, as defined in section 13.02, subdivision 12.
25.27 		Subd. 3.Federal requirements. The applicant must demonstrate to the satisfaction 
25.28 	of the commissioner that the applicant has complied with all applicable federal 
25.29 	requirements pertaining to the production, distribution, and sale of industrial hemp.

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

25.31 	Sec. 37. [18K.06] ANNUAL REPORT; SALES NOTIFICATION.
25.32 	(a) Annually, a licensee must file with the commissioner:
26.1 	(1) documentation demonstrating to the commissioner's satisfaction that the seeds 
26.2 	planted by the licensee are of a type and variety that contain no more than three-tenths of 
26.3 	one percent delta-9 tetrahydrocannabinol; and
26.4 	(2) a copy of any contract to grow industrial hemp.
26.5 	(b) Within 30 days, a licensee must notify the commissioner of each sale or 
26.6 	distribution of industrial hemp grown by the licensee including, but not limited to, the 
26.7 	name and address of the person receiving the industrial hemp and the amount of industrial 
26.8 	hemp sold or distributed.

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

26.10 	Sec. 38. [18K.07] RULEMAKING.
26.11 	(a) The commissioner shall adopt rules governing the production, testing, and 
26.12 	licensing of industrial hemp.
26.13 	(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions 
26.14 	governing:
26.15 	(1) the supervision and inspection of industrial hemp during its growth and harvest;
26.16 	(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
26.17 	(3) the use of background checks results required under section 18K.05 to approve 
26.18 	or deny a license application; and
26.19 	(4) any other provision or procedure necessary to carry out the purposes of this 
26.20 	chapter.
26.21 	(c) Rules issued under this section must be consistent with federal law regarding 
26.22 	the production, distribution, and sale of industrial hemp.

26.23 	EFFECTIVE DATE. This section is effective the day after the federal government 
26.24 	authorizes the commercial production of industrial hemp in this country.

26.25 	Sec. 39. [18K.08] FEES.
26.26 	Fees collected under this chapter must be credited to the industrial hemp account, 
26.27 	which is hereby established in the agricultural fund in the state treasury. Interest earned 
26.28 	in the account accrues to the account. Funds in the industrial hemp account are annually 
26.29 	appropriated to the commissioner to implement and enforce this chapter.

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

26.31 	Sec. 40. [18K.09] DEFENSE FOR POSSESSION OF MARIJUANA. 
27.1 	It is an affirmative defense to a prosecution for the possession of marijuana under 
27.2 	chapter 152 if:
27.3 	(1) the defendant possesses industrial hemp grown pursuant to this chapter; or
27.4 	(2) the defendant has a valid controlled substance registration from the United States 
27.5 	Department of Justice, Drug Enforcement Administration, if required under federal law.

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

27.7 	Sec. 41. Minnesota Statutes 2014, section 21.81, is amended by adding a subdivision 
27.8 	to read:
27.9 		Subd. 1a.Address. "Address" means the complete primary mailing address of the 
27.10 	labeler or the person or firm selling seed. A complete address includes the street address, 
27.11 	post office box, or rural route, and city, state, and zip code or postal code.

27.12 	Sec. 42. Minnesota Statutes 2014, section 21.81, is amended by adding a subdivision 
27.13 	to read:
27.14 		Subd. 27a.Total viable. "Total viable" means the sum of the germination 
27.15 	percentage, plus hard seeds, dormant seeds, or both.

27.16 	Sec. 43. Minnesota Statutes 2014, section 21.82, subdivision 2, is amended to read:
27.17 		Subd. 2.Content. For agricultural, vegetable, flower, or wildflower seeds offered 
27.18 	for sale as agricultural seed, except as otherwise provided in subdivisions 4, 5, and 6, the 
27.19 	label must contain:
27.20 	(a) The name of the kind or kind and variety for each seed component in excess 
27.21 	of five percent of the whole and the percentage by weight of each in order of its 
27.22 	predominance. The commissioner shall by rule designate the kinds that are required to be 
27.23 	labeled as to variety. If the variety of those kinds generally labeled as to variety is not 
27.24 	stated and it is not required to be stated, the label shall show the name of the kind and the 
27.25 	words: "Variety not stated." The heading "pure seed" must be indicated on the seed label 
27.26 	in close association with other required label information.
27.27 	(1) The percentage that is hybrid shall be at least 95 percent of the percentage of pure 
27.28 	seed shown unless the percentage of pure seed which is hybrid seed is shown separately. 
27.29 	If two or more kinds or varieties are present in excess of five percent and are named on 
27.30 	the label, each that is hybrid shall be designated as hybrid on the label. Any one kind or 
27.31 	kind and variety that has pure seed which is less than 95 percent but more than 75 percent 
27.32 	hybrid seed as a result of incompletely controlled pollination in a cross shall be labeled to 
27.33 	show the percentage of pure seed that is hybrid seed or a statement such as "contains from 
28.1 	75 percent to 95 percent hybrid seed." No one kind or variety of seed shall be labeled as 
28.2 	hybrid if the pure seed contains less than 75 percent hybrid seed. The word hybrid shall be 
28.3 	shown on the label in conjunction with the kind.
28.4 	(2) Blends shall be listed on the label using the term "blend" in conjunction with 
28.5 	the kind.
28.6 	(3) Mixtures shall be listed on the label using the term "mixture," "mix," or "mixed."
28.7 	(b) Lot number or other lot identification.
28.8 	(c) Origin, if known, or that the origin is unknown.
28.9 	(d) Percentage by weight of all weed seeds present. This percentage may not exceed 
28.10 	one percent. The heading "weed seed" must be indicated on the seed label in close 
28.11 	association with other required label information.
28.12 	(e) Name and rate of occurrence per pound of each kind of restricted noxious weed 
28.13 	seeds present. They must be listed under the heading "noxious weed seeds" in close 
28.14 	association with other required label information.
28.15 	(f) Percentage by weight of seeds other than those kinds and varieties required 
28.16 	to be named on the label. They must be listed under the heading "other crop" in close 
28.17 	association with other required label information.
28.18 	(g) Percentage by weight of inert matter. The heading "inert matter" must be 
28.19 	indicated on the seed label in close association with other required label information.
28.20 	(h) Net weight of contents, to appear on either the container or the label.
28.21 	(i) For each named kind or variety of seed:
28.22 	(1) percentage of germination, exclusive of hard or dormant seed or both;
28.23 	(2) percentage of hard or dormant seed or both, if present; and
28.24 	(3) the calendar month and year the percentages were determined by test or the 
28.25 	statement "sell by (month and year)" which may not be more than 12 months from the 
28.26 	date of test, exclusive of the month of test.
28.27 	The headings for "germination" and "hard seed or dormant seed" percentages must be 
28.28 	stated separately on the seed label. A separate percentage derived from combining these 
28.29 	percentages may also be stated on the seed label, but the heading for this percentage must 
28.30 	be "total germination and hard seed or dormant seed when applicable." They must not be 
28.31 	stated as "total live seed," "total germination," or in any other unauthorized manner. as 
28.32 	"total viable."
28.33 	(j) Name and address of the person who labeled the seed or who sells the seed within 
28.34 	this state, or a code number which has been registered with the commissioner.

28.35 	Sec. 44. Minnesota Statutes 2014, section 21.82, subdivision 4, is amended to read:
29.1 		Subd. 4.Hybrid seed corn. For hybrid seed corn purposes a label must contain:
29.2 	(1) a statement indicating the number of seeds in the container may be listed along 
29.3 	with or in lieu of the net weight of contents; and
29.4 	(2) for each variety of hybrid seed field corn, the day classification as determined 
29.5 	by the originator or owner. The day classification must approximate the number of days 
29.6 	of growing season necessary from emergence of the corn plant above ground to relative 
29.7 	maturity and must conform to the day classification established by the director of be 
29.8 	within three days of maturity ratings determined in comparative trials by the Minnesota 
29.9 	agricultural experiment station for the appropriate zone.

29.10 	Sec. 45. Minnesota Statutes 2014, section 21.85, subdivision 2, is amended to read:
29.11 		Subd. 2.Seed laboratory. (a) The commissioner shall establish and maintain a seed 
29.12 	laboratory for seed testing, employing necessary agents and assistants to administer and 
29.13 	enforce sections 21.80 to 21.92, who shall be governed by chapter 43A.
29.14 	(b) The laboratory procedures for testing official seed samples are the procedures 
29.15 	set forth in the Rules for Testing Seeds that is published annually by the Association of 
29.16 	Official Seed Analysts. If a laboratory procedure rule does not exist for a particular type 
29.17 	of seed, then laboratory procedures from other recognized seed testing sources may be 
29.18 	used, including procedures under the Code of Federal Regulations, title 7, part 201, or 
29.19 	the International Rules for Testing Seeds.

29.20 	Sec. 46. Minnesota Statutes 2014, section 21.85, is amended by adding a subdivision 
29.21 	to read:
29.22 		Subd. 15.Prohibited and restricted seeds. The commissioner shall determine 
29.23 	species that are considered prohibited weed seeds and restricted noxious weed seeds and 
29.24 	the allowable rate of occurrence of restricted noxious weed seeds.

29.25 	Sec. 47. Minnesota Statutes 2014, section 21.89, subdivision 2, is amended to read:
29.26 		Subd. 2.Permits; issuance and revocation. The commissioner shall issue a permit 
29.27 	to the initial labeler of agricultural, vegetable, flower, and wildflower seeds which are sold 
29.28 	for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92. 
29.29 	The categories of permits are as follows:
29.30 	(1) for initial labelers who sell 50,000 pounds or less of agricultural seed each 
29.31 	calendar year, an annual permit issued for a fee established in section 21.891, subdivision 
29.32 	2, paragraph (b);
30.1 	(2) for initial labelers who sell vegetable, flower, and wildflower seed packed for 
30.2 	use in home gardens or household plantings, and initial labelers who sell native grasses 
30.3 	and wildflower seed in commercial or agricultural quantities, an annual permit issued for 
30.4 	a fee established in section 21.891, subdivision 2, paragraph (c), based upon the gross 
30.5 	sales from the previous year; and
30.6 	(3) for initial labelers who sell more than 50,000 pounds of agricultural seed 
30.7 	each calendar year, a permanent permit issued for a fee established in section 21.891, 
30.8 	subdivision 2, paragraph (d).
30.9 	In addition, the person shall furnish to the commissioner an itemized statement of all 
30.10 	seeds sold in Minnesota for the periods established by the commissioner. This statement 
30.11 	shall be delivered, along with the payment of the fee, based upon the amount and type 
30.12 	of seed sold, to the commissioner no later than 30 days after the end of each reporting 
30.13 	period. Any person holding a permit shall show as part of the analysis labels or invoices 
30.14 	on all agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the 
30.15 	commissioner requires. The commissioner may revoke any permit in the event of failure 
30.16 	to comply with applicable laws and rules.

30.17 	Sec. 48. [28A.152] COTTAGE FOODS EXEMPTION.
30.18 		Subdivision 1.Licensing provisions applicability. (a) The licensing provisions of 
30.19 	sections 28A.01 to 28A.16 do not apply to the following:
30.20 	(1) an individual who prepares and sells food that is not potentially hazardous food, 
30.21 	as defined in Minnesota Rules, part 4626.0020, subpart 62, if the following requirements 
30.22 	are met:
30.23 	(i) the prepared food offered for sale under this clause is labeled to accurately reflect 
30.24 	the name and address of the person preparing and selling the food, the date on which the 
30.25 	food was prepared, and the ingredients and any possible allergens; and 
30.26 	(ii) the individual displays at the point of sale a clearly legible sign or placard stating: 
30.27 	"These products are homemade and not subject to state inspection"; and
30.28 	(2) an individual who prepares and sells home-processed and home-canned food 
30.29 	products if the following requirements are met:
30.30 	(i) the products are pickles, vegetables, or fruits having an equilibrium pH value of 
30.31 	4.6 or lower;
30.32 	(ii) the products are home-processed and home-canned in Minnesota;
30.33 	(iii) the individual displays at the point of sale a clearly legible sign or placard 
30.34 	stating: "These canned goods are homemade and not subject to state inspection"; and
31.1 	(iv) each container of the product sold or offered for sale under this clause is 
31.2 	accurately labeled to provide the name and address of the person who processed and 
31.3 	canned the goods, the date on which the goods were processed and canned, and ingredients 
31.4 	and any possible allergens.
31.5 	(b) An individual who qualifies for an exemption under paragraph (a), clause (2), is 
31.6 	also exempt from the provisions of sections 31.31 and 31.392.
31.7 		Subd. 2.Direct sales to consumers. (a) An individual qualifying for an exemption 
31.8 	under subdivision 1 may sell the exempt food:
31.9 	(1) directly to the ultimate consumer;
31.10 	(2) at a community event or farmers' market; or
31.11 	(3) directly from the individual's home to the consumer, to the extent allowed by 
31.12 	local ordinance.
31.13 	(b) If an exempt food product will be delivered to the ultimate consumer upon sale 
31.14 	of the food product, the individual who prepared the food product must be the person who 
31.15 	delivers the food product to the ultimate consumer.
31.16 	(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be 
31.17 	sold outside of Minnesota.
31.18 	(d) Food products exempt under subdivision 1 may be sold over the Internet but 
31.19 	must be delivered directly to the ultimate consumer by the individual who prepared the 
31.20 	food product. The statement "These products are homemade and not subject to state 
31.21 	inspection" must be displayed on the Web site that offers the exempt foods for purchase. 
31.22 		Subd. 3.Limitation on sales. An individual selling exempt foods under this section 
31.23 	is limited to total sales with gross receipts of $18,000 or less in a calendar year. 
31.24 		Subd. 4.Registration. Before an individual sells food that is exempt under this 
31.25 	section, the individual must register with the commissioner on a form prescribed by the 
31.26 	commissioner. The individual must renew the individual's registration every three years. 
31.27 	The registration fee is $50. An individual with $5,000 or less in annual gross receipts from 
31.28 	the sale of exempt food under this section is not required to pay the registration fee.
31.29 		Subd. 5.Training. An individual who prepares and sells exempt food under 
31.30 	subdivision 1 must complete a safe food handling training course that is approved by the 
31.31 	commissioner. The training shall not exceed eight hours and must be completed every 
31.32 	three years while the individual is registered under subdivision 4.
31.33 		Subd. 6.Local ordinances. This section does not preempt the application of any 
31.34 	business licensing requirement or sanitation, public health, or zoning ordinance of a 
31.35 	political subdivision.
32.1 		Subd. 7.Account established. A cottage foods account is created as a separate 
32.2 	account in the special revenue fund in the state treasury for depositing money received 
32.3 	by the commissioner under this section. Money in the account, including interest, is 
32.4 	appropriated to the commissioner for costs under this section.

32.5 	Sec. 49. [41A.13] DEFINITIONS.
32.6 	(a) For the purposes of sections 41A.13 to 41A.17, the terms defined in this section 
32.7 	have the meanings given them.
32.8 	(b) "Advanced biofuels" has the meaning given in section 239.051, subdivision 1a.
32.9 	(c) "Biomass thermal production" means the generation of energy for commercial 
32.10 	heat or industrial process heat from a cellulosic material or other material composed of 
32.11 	forestry or agricultural feedstocks for a new or expanding capacity facility or a facility that 
32.12 	is displacing existing use of fossil fuel after the effective date of this section.
32.13 	(d) "Cellulosic biomass" means material primarily made up of cellulose, 
32.14 	hemicellulose, or lingnin, or a combination of those ingredients.
32.15 	(e) "Cellulosic sugar" means sugar derived from cellulosic biomass from agricultural 
32.16 	or forestry resources.
32.17 	(f) "Commissioner" means the commissioner of agriculture.
32.18 	(g) "Cover crops" means grasses, legumes, forbs, or other herbaceous plants that are 
32.19 	known to be noninvasive and not listed as a noxious weed in Minnesota and that are either 
32.20 	interseeded into living cash crops or planted on agricultural fields during fallow periods 
32.21 	for seasonal cover and conservation purposes.
32.22 	(h) "MMbtu" means one million British thermal units.
32.23 	(i) "Perennial crops" means agriculturally produced plants that are known to be 
32.24 	noninvasive and not listed as a noxious weed in Minnesota and that have a life cycle of at 
32.25 	least three years at the location where the plants are being cultivated. Biomass from alfalfa 
32.26 	produced in a two-year rotation shall be considered a perennial crop.
32.27 	(j) "Renewable chemical" means a chemical with biobased content as defined in 
32.28 	section 41A.105, subdivision 1a.

32.29 	Sec. 50. [41A.14] ADVANCED BIOFUEL PRODUCTION INCENTIVE.
32.30 	(a) A facility eligible for payment under this program must source at least 80 percent 
32.31 	raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, 
32.32 	raw materials may be sourced from within a 100-mile radius. Raw materials must be from 
32.33 	agricultural or forestry sources or from solid waste. The production facility must be 
32.34 	located in Minnesota, must begin production at a specific location by June 30, 2025, and 
33.1 	must not begin operation above 95,000 MMbtu of annual biofuel production before July 1, 
33.2 	2015. Eligible facilities include existing companies and facilities that are adding advanced 
33.3 	biofuel production capacity, or retrofitting existing capacity, as well as new companies 
33.4 	and facilities. Production of conventional corn ethanol and conventional biodiesel is not 
33.5 	eligible. Advanced biofuel facilities must produce at least 30,000 MMbtu a year to be 
33.6 	eligible for the program.
33.7 	(b) The commissioner shall make payments to eligible producers of advanced 
33.8 	biofuel. For the purpose of this section, an entity that holds a controlling interest in more 
33.9 	than one advanced biofuel facility is considered a single eligible producer. The amount 
33.10 	of the payment for each eligible producer's annual production is $2.1053 per MMbtu 
33.11 	for advanced biofuel production from cellulosic biomass, and $1.053 per MMbtu for 
33.12 	advanced biofuel production from sugar or starch at a specific location for ten years after 
33.13 	the start of production. Cellulosic biofuel facilities utilizing crop residues, other than 
33.14 	cellulosic biofuel using corn kernel fiber, or biogas, shall derive at least ten percent of total 
33.15 	energy production from perennial crops or biomass from cover crops in the first year of 
33.16 	receiving production incentives, and in the third year, at least 30 percent of total energy 
33.17 	production shall be derived from perennial crops or biomass from cover crops, and in the 
33.18 	fifth year, at least 50 percent of total energy production shall be derived from perennial 
33.19 	crops or biomass from cover crops and maintain at least 50 percent for the remainder of 
33.20 	the production incentive payment period. All forestry-derived cellulosic biomass must 
33.21 	be produced using Minnesota state biomass harvesting guidelines or the equivalent. 
33.22 	All biomass from brushlands must be produced using Minnesota brushland harvesting 
33.23 	biomass harvest guidelines or the equivalent. Forestry-derived cellulosic biomass that 
33.24 	comes from land parcels greater than 160 acres must be certified by the Forest Stewardship 
33.25 	Council, Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land 
33.26 	from parcels of 160 acres or less and federal land must be harvested by a  logger who has 
33.27 	completed training for biomass harvesting from the Minnesota logger education program 
33.28 	or the equivalent and have a forest stewardship plan.
33.29 	(c) An eligible producer who utilizes agricultural cellulosic biomass must submit a 
33.30 	responsible biomass sourcing plan for approval by the commissioner prior to applying for 
33.31 	payments under this section. The commissioner shall make the plan publicly available. 
33.32 	The plan must:
33.33 	(1) provide a detailed explanation for how agricultural cellulosic biomass will be 
33.34 	produced and managed in a way that preserves soil quality, does not increase soil and 
33.35 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
33.36 	on wildlife habitat, and reduces greenhouse gas emissions;
34.1 	(2) include the producer's approach to verifying that biomass suppliers are following 
34.2 	the plan;
34.3 	(3) discuss how new technologies and practices that are not yet commercially viable 
34.4 	may be encouraged and adopted during the life of the facility, and how the producer will 
34.5 	encourage continuous improvement during the life of the project;
34.6 	(4) include specific numeric goals and timelines for making progress;
34.7 	(5) require agronomic practices that result in a positive NRCS Soil Conditioning 
34.8 	Index score for acres from which biomass from corn stover will be harvested; and
34.9 	(6) include biennial soil sampling to verify maintained or increased levels of soil 
34.10 	organic matter.
34.11 	(d) An eligible producer who utilizes agricultural cellulosic biomass and receives 
34.12 	payments under this section shall submit an annual report on the producer's responsible 
34.13 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
34.14 	include data on progress made by the producer in meeting specific goals laid out in the 
34.15 	plan. The commissioner shall make the report publicly available. The commissioner 
34.16 	shall perform an annual review of submitted reports and make a determination whether 
34.17 	the producer is following the plan and meeting the criteria in paragraph (c) based on the 
34.18 	reports submitted. The commissioner may take appropriate steps, including reducing or 
34.19 	ceasing payments until the producer is in compliance with the plan.
34.20 	(e) No payments shall be made for advanced biofuel production that occurs after 
34.21 	June 30, 2035, for those eligible biofuel producers under paragraph (b). An eligible 
34.22 	producer of advanced biofuel shall not transfer the producer's eligibility for payments 
34.23 	under this section to an advanced biofuel facility at a different location.
34.24 	(f) Total payments under this section to an eligible biofuel producer in a fiscal year 
34.25 	may not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total 
34.26 	payments under this section to all eligible biofuel producers in a fiscal year may not 
34.27 	exceed the amount necessary for 17,100,000 MMbtu of biofuel production.
34.28 	(g) By the last day of October, January, April, and July, each eligible biofuel producer 
34.29 	shall file a claim for payment for advanced biofuel production during the preceding three 
34.30 	calendar months. An eligible biofuel producer that files a claim under this paragraph shall 
34.31 	include a statement of the eligible biofuel producer's total advanced biofuel production 
34.32 	in Minnesota during the quarter covered by the claim. For each claim and statement of 
34.33 	total advanced biofuel production filed under this paragraph, the volume of advanced 
34.34 	biofuel production must be examined by an independent certified public accountant firm 
34.35 	licensed under chapter 326A, in accordance with Statements on Standards for Attestation 
34.36 	Engagements established by the American Institute of Certified Public Accountants.
35.1 	(h) Payments must be made November 15, February 15, May 15, and August 15. 
35.2 	A separate payment must be made for each claim filed.
35.3 	(i) Any producer that ceases production for any reason is ineligible to receive 
35.4 	payments under the program until they begin producing again.
35.5 	(j) Renewable chemical production for which payment has been received under 
35.6 	section 41A.15, and biomass thermal production for which payment has been received 
35.7 	under section 41A.16, is not eligible for payment under this section.

35.8 	Sec. 51. [41A.15] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.
35.9 	(a) A facility eligible for payment under this program must source at least 80 
35.10 	percent biobased content, as defined in section 41A.105, subdivision 1a, clause (1), 
35.11 	from Minnesota. If a facility is sited 50 miles or less from the state border, biobased 
35.12 	content may be sourced from within a 100-mile radius. Biobased content must be from 
35.13 	agricultural or forestry sources or from solid waste. The production facility must be 
35.14 	located in Minnesota, must begin production at a specific location by June 30, 2025, and 
35.15 	must not begin production of 3,000,000 pounds of chemicals annually before January 
35.16 	1, 2015. Eligible facilities include existing companies and facilities that are adding 
35.17 	production capacity, or retrofitting existing capacity, as well as new companies and 
35.18 	facilities. Renewable chemical facilities must produce at least 3,000,000 pounds per year 
35.19 	to be eligible for the program. Renewable chemicals produced through processes that are 
35.20 	fully commercial before January 1, 2000, are not eligible.
35.21 	(b) The commissioner shall make payments to eligible producers of renewable 
35.22 	chemicals located in the state. For the purpose of this subdivision, an entity that holds a 
35.23 	controlling interest in more than one renewable chemical production facility is considered 
35.24 	a single eligible producer. The amount of the payment for each producer's annual 
35.25 	production is $0.03 per pound of sugar-derived renewable chemical, $0.03 per pound of 
35.26 	cellulosic sugar, and $0.06 per pound of cellulosic-derived renewable chemical produced at 
35.27 	a specific location for ten years after the start of production. All forestry-derived cellulosic 
35.28 	biomass must be produced using Minnesota state biomass harvesting guidelines or the 
35.29 	equivalent. All cellulosic biomass from brushlands must be produced using Minnesota 
35.30 	brushland harvesting biomass harvest guidelines or the equivalent. Forestry-derived 
35.31 	cellulosic biomass that comes from land parcels greater than 160 acres must be certified 
35.32 	by the Forest Stewardship Council, Sustainable Forestry Initiative, or American Tree 
35.33 	Farm System. Uncertified land from parcels of 160 acres or less and federal land must 
35.34 	be harvested by a logger who has completed training for biomass harvesting from the 
35.35 	Minnesota logger education program or the equivalent and have a forest stewardship plan. 
36.1 	An eligible facility producing renewable chemicals using agricultural cellulosic biomass 
36.2 	is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural 
36.3 	biomass that is derived from perennial crops or from acres where cover crops are used.
36.4 	(c) An eligible producer who utilizes agricultural cellulosic biomass must submit a 
36.5 	responsible biomass sourcing plan to the commissioner prior to applying for payments 
36.6 	under this section. The plan must:
36.7 	(1) provide a detailed explanation for how agricultural cellulosic biomass will be 
36.8 	produced and managed in a way that preserves soil quality, does not increase soil and 
36.9 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
36.10 	on wildlife habitat, and reduces greenhouse gas emissions;
36.11 	(2) include the producer's approach to verifying that biomass suppliers are following 
36.12 	the plan;
36.13 	(3) discuss how new technologies and practices that are not yet commercially viable 
36.14 	may be encouraged and adopted during the life of the facility, and how the producer will 
36.15 	encourage continuous improvement during the life of the project; and
36.16 	(4) include specific numeric goals and timelines for making progress.
36.17 	(d) An eligible producer who utilizes agricultural cellulosic biomass and receives 
36.18 	payments under this section shall submit an annual report on the producer's responsible 
36.19 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
36.20 	include data on progress made by the producer in meeting specific goals laid out in the 
36.21 	plan. The commissioner shall make the report publicly available. The commissioner 
36.22 	shall perform an annual review of submitted reports and is authorized to make a 
36.23 	determination that the producer is not following the plan based on the reports submitted. 
36.24 	The commissioner may take appropriate steps, including reducing or ceasing payments 
36.25 	until the producer is in compliance with the plan.
36.26 	(e) No payments shall be made for renewable chemical production that occurs after 
36.27 	June 30, 2035, for those eligible renewable chemical producers under paragraph (b). An 
36.28 	eligible producer of renewable chemicals shall not transfer the producer's eligibility for 
36.29 	payments under this section to a renewable chemical facility at a different location.
36.30 	(f) Total payments under this section to an eligible renewable chemical producer in 
36.31 	a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable 
36.32 	chemical production. Total payments under this section to all eligible renewable chemical 
36.33 	producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of 
36.34 	renewable chemical production.
36.35 	(g) By the last day of October, January, April, and July, each eligible renewable 
36.36 	chemical producer shall file a claim for payment for renewable chemical production 
37.1 	during the preceding three calendar months. An eligible renewable chemical producer 
37.2 	that files a claim under this paragraph shall include a statement of the eligible producer's 
37.3 	total renewable chemical production in Minnesota during the quarter covered by the 
37.4 	claim. For each claim and statement of total renewable chemical production filed under 
37.5 	this paragraph, the volume of renewable chemical production must be examined by an 
37.6 	independent certified public accountant firm licensed under chapter 326A, in accordance 
37.7 	with Statements on Standards for Attestation Engagements established by the American 
37.8 	Institute of Certified Public Accountants.
37.9 	(h) Payments must be made November 15, February 15, May 15, and August 15. 
37.10 	A separate payment must be made for each claim filed. 
37.11 	(i) Any producer that ceases production for any reason is ineligible to receive 
37.12 	payments under the program until they begin producing again.
37.13 	(j) Advanced biofuel production for which payment has been received under section 
37.14 	41A.14, and biomass thermal production for which payment has been received under 
37.15 	section 41A.16, is not eligible for payment under this section.

37.16 	Sec. 52. [41A.16] BIOMASS THERMAL PRODUCTION INCENTIVE.
37.17 	(a) A facility eligible for payment under this program must source at least 80 percent 
37.18 	raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, 
37.19 	raw materials may be sourced from within a 100-mile radius. Raw materials must be from 
37.20 	agricultural or forestry sources. The production facility must be located in Minnesota and 
37.21 	must not begin before July 1, 2015. Eligible facilities include existing companies and 
37.22 	facilities that are adding production capacity, or retrofitting existing capacity, as well as 
37.23 	new companies and facilities. Biomass thermal production facilities must produce at least 
37.24 	1,000 MMbtu per year to be eligible for the program.
37.25 	(b) The commissioner shall make payments to eligible producers of biomass thermal 
37.26 	located in the state that have begun production at a specific location by June 30, 2025. 
37.27 	For the purpose of this subdivision, an entity that holds a controlling interest in more than 
37.28 	one biomass thermal production facility is considered a single eligible producer. The 
37.29 	amount of the payment for each producer's annual production is $5.00 per MMbtu of 
37.30 	biomass thermal production produced at a specific location for ten years after the start of 
37.31 	production. All forestry-derived cellulosic biomass must be produced using Minnesota 
37.32 	state biomass harvesting guidelines or the equivalent. All biomass from brushland must 
37.33 	be produced using Minnesota brushland harvesting biomass guidelines or the equivalent. 
37.34 	Forestry-derived cellulosic biomass that comes from land parcels greater than 160 acres 
37.35 	must be certified by the Forest Stewardship Council, the Sustainable Forestry Initiative, or 
38.1 	American Tree Farm System. Uncertified land from parcels of 160 acres or less and federal 
38.2 	land must be harvested by a logger who has completed training for biomass harvesting from 
38.3 	the Minnesota logger education program or the equivalent and have a forest stewardship 
38.4 	plan. An eligible facility producing biomass thermal using agricultural cellulosic biomass 
38.5 	is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural 
38.6 	biomass that is derived from perennial crops or from acres where cover crops are used.
38.7 	(c) An eligible producer who utilizes agricultural cellulosic biomass must submit a 
38.8 	responsible biomass sourcing plan to the commissioner prior to applying for payments 
38.9 	under this section. The plan must:
38.10 	(1) provide a detailed explanation for how agricultural cellulosic biomass will be 
38.11 	produced and managed in a way that preserves soil quality, does not increase soil and 
38.12 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
38.13 	on wildlife habitat, and reduces greenhouse gas emissions;
38.14 	(2) include the producer's approach to verifying that biomass suppliers are following 
38.15 	the plan;
38.16 	(3) discuss how new technologies and practices that are not yet commercially viable 
38.17 	may be encouraged and adopted during the life of the facility, and how the producer will 
38.18 	encourage continuous improvement during the life of the project; and
38.19 	(4) include specific numeric goals and timelines for making progress.
38.20 	(d) An eligible producer who utilizes agricultural cellulosic biomass and receives 
38.21 	payments under this section shall submit an annual report on the producer's responsible 
38.22 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
38.23 	include data on progress made by the producer in meeting specific goals laid out in the 
38.24 	plan. The commissioner shall make the report publicly available. The commissioner 
38.25 	shall perform an annual review of submitted reports and is authorized to make a 
38.26 	determination that the producer is not following the plan based on the reports submitted. 
38.27 	The commissioner may take appropriate steps, including reducing or ceasing payments 
38.28 	until the producer is in compliance with the plan.
38.29 	(e) No payments shall be made for biomass thermal production that occurs after June 
38.30 	30, 2035, for those eligible biomass thermal producers under paragraph (b). A producer of 
38.31 	biomass thermal production shall not transfer the producer's eligibility for payments under 
38.32 	this section to a biomass thermal production facility at a different location.
38.33 	(f) Total payments under this section to an eligible thermal producer in a fiscal year 
38.34 	may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total 
38.35 	payments under this section to all eligible thermal producers in a fiscal year may not 
38.36 	exceed the amount necessary for 150,000 MMbtu of total thermal production.
39.1 	(g) An eligible facility may blend a cellulosic feedstock with other fuels in the 
39.2 	biomass thermal production facility, but only the percentage attributable to cellulosic 
39.3 	material listed is eligible to receive the producer payment.
39.4 	(h) By the last day of October, January, April, and July, each producer shall file a 
39.5 	claim for payment for biomass thermal production during the preceding three calendar 
39.6 	months. A producer that files a claim under this paragraph shall include a statement of 
39.7 	the producer's total biomass thermal production in Minnesota during the quarter covered 
39.8 	by the claim. For each claim and statement of total biomass thermal production filed 
39.9 	under this paragraph, the volume of biomass thermal production must be examined by an 
39.10 	independent certified public accountant firm licensed under chapter 326A, in accordance 
39.11 	with Statements on Standards for Attestation Engagements established by the American 
39.12 	Institute of Certified Public Accountants.
39.13 	(i) Payments shall be made November 15, February 15, May 15, and August 15. A 
39.14 	separate payment shall be made for each claim filed.
39.15 	(j) Biofuel production for which payment has been received under section 41A.14, 
39.16 	and renewable chemical production for which payment has been received under section 
39.17 	41A.15, is not eligible for payment under this section.

39.18 	Sec. 53. [41A.17] REPORT; INCENTIVE PROGRAMS.
39.19 	By January 15 each year, the commissioner shall report on the incentive programs 
39.20 	under sections 41A.14, 41A.15, and 41A.16 to the legislative policy and finance 
39.21 	committees with primary jurisdiction over environment and agriculture. The report shall 
39.22 	include information on production and expenditures for incentives under the programs.

39.23 	Sec. 54. [41A.18] AGRICULTURE RESEARCH, EDUCATION, EXTENSION, 
39.24 	AND TECHNOLOGY TRANSFER GRANT PROGRAM.
39.25 		Subdivision 1.Duties; grants. The agriculture research, education, extension, and 
39.26 	technology transfer grant program is created. The purpose of the grant program is to 
39.27 	provide investments that will most efficiently achieve long-term agricultural sustainability 
39.28 	and productivity increases through improved infrastructure, vision, and accountability. 
39.29 	The scope and intent of the grants, to the extent possible, shall provide for a long-term 
39.30 	base funding that allows the research grantee to continue the functions of the research, 
39.31 	education, and extension efforts to a practical conclusion. Priority for grants shall be 
39.32 	given to human infrastructure. To be eligible for grants under this section, the dean of the 
39.33 	College of Food, Agricultural and Natural Resource Sciences, in consultation with the 
39.34 	dean of the College of Veterinarian Medicine, and the dean of the University of Minnesota 
40.1 	Extension Service must consult with stakeholders representing general farm, forestry, and 
40.2 	agricultural producer organizations. The commissioner shall provide grants for:
40.3 	(1) agricultural research and technology transfer needs and recipients including, but 
40.4 	not limited to, agricultural research and extension at the University of Minnesota, research 
40.5 	and outreach centers, the College of Food, Agricultural and Natural Resource Sciences, 
40.6 	the Minnesota Agricultural Experiment Station, University of Minnesota Extension 
40.7 	Service, the University of Minnesota Veterinary School, the Veterinary Diagnostic 
40.8 	Laboratory, the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer 
40.9 	Research and Education Council;
40.10 	(2) agriculture rapid response for plant and animal diseases and pests; and
40.11 	(3) agricultural education including, but not limited to, the Minnesota Agriculture 
40.12 	Education Leadership Council, farm business management, mentoring programs, graduate 
40.13 	debt forgiveness, and high school programs.
40.14 		Subd. 2.Fund. An agriculture research, education, extension, and technology 
40.15 	transfer fund is created in the state treasury. The fund consists of money received in the form 
40.16 	of gifts, grants, reimbursement, or appropriations from any source for any of the purposes 
40.17 	provided in subdivision 1, and any interest or earnings of the fund. Money in the fund is 
40.18 	appropriated to the commissioner of agriculture for the purposes under subdivision 1.

40.19 	Sec. 55. Minnesota Statutes 2014, section 41B.03, subdivision 6, is amended to read:
40.20 		Subd. 6.Application fee. The authority may impose a reasonable nonrefundable 
40.21 	application fee for each application submitted for a beginning farmer loan or a 
40.22 	seller-sponsored loan. The application fee is initially $50. The authority may review the 
40.23 	fee annually and make adjustments as necessary. The fee must be deposited in the state 
40.24 	treasury and credited to an account in the special revenue fund. Money in the account is 
40.25 	appropriated to the commissioner for administrative expenses of the beginning farmer 
40.26 	and seller-sponsored loan programs the Rural Finance Authority administrative account 
40.27 	established in subdivision 7.

40.28 	Sec. 56. Minnesota Statutes 2014, section 41B.03, is amended by adding a subdivision 
40.29 	to read:
40.30 		Subd. 7.Rural Finance Authority administrative account. There is established 
40.31 	in the special revenue fund a Rural Finance Authority administrative account. Money in 
40.32 	the account, including interest, is appropriated to the commissioner for the administrative 
40.33 	expenses of the loan programs administered by the Rural Finance Authority.

41.1 	Sec. 57. Minnesota Statutes 2014, section 41B.04, subdivision 17, is amended to read:
41.2 		Subd. 17.Application and origination fee. The authority may impose a reasonable 
41.3 	nonrefundable application fee for each application and an origination fee for each loan 
41.4 	issued under the loan restructuring program. The origination fee is 1.5 percent of the 
41.5 	authority's participation interest in the loan and the application fee is $50. The authority 
41.6 	may review the fees annually and make adjustments as necessary. The fees must be 
41.7 	deposited in the state treasury and credited to an account in the special revenue fund. 
41.8 	Money in the account is appropriated to the commissioner for administrative expenses 
41.9 	of the loan restructuring program the Rural Finance Authority administrative account 
41.10 	established in section 41B.03.

41.11 	Sec. 58. Minnesota Statutes 2014, section 41B.043, subdivision 3, is amended to read:
41.12 		Subd. 3.Application and origination fee. The authority may impose a reasonable 
41.13 	nonrefundable application fee for each application submitted for a participation issued 
41.14 	under the agricultural improvement loan program. The application fee is initially $50. The 
41.15 	authority may review the fees annually and make adjustments as necessary. The fees must 
41.16 	be deposited in the state treasury and credited to an account in the special revenue fund. 
41.17 	Money in this account is appropriated to the commissioner for administrative expenses of 
41.18 	the agricultural improvement loan program the Rural Finance Authority administrative 
41.19 	account established in section 41B.03.

41.20 	Sec. 59. Minnesota Statutes 2014, section 41B.045, subdivision 3, is amended to read:
41.21 		Subd. 3.Specifications. No loan may be made to refinance an existing debt. Each 
41.22 	loan participation must be secured by a mortgage on real property and such other security 
41.23 	as the authority may require.

41.24 	Sec. 60. Minnesota Statutes 2014, section 41B.045, subdivision 4, is amended to read:
41.25 		Subd. 4.Application and origination fee. The authority may impose a reasonable 
41.26 	nonrefundable application fee for each application for a loan participation and an 
41.27 	origination fee for each loan issued under the livestock expansion loan program. The 
41.28 	origination fee initially shall be set at 1.5 percent and the application fee at $50. The 
41.29 	authority may review the fees annually and make adjustments as necessary. The fees must 
41.30 	be deposited in the state treasury and credited to an account in the special revenue fund. 
41.31 	Money in this account is appropriated to the commissioner for administrative expenses of 
41.32 	the livestock expansion loan program the Rural Finance Authority administrative account 
41.33 	established in section 41B.03.

42.1 	Sec. 61. Minnesota Statutes 2014, section 41B.046, subdivision 5, is amended to read:
42.2 		Subd. 5.Loans. (a) The authority may participate in a stock loan with an eligible 
42.3 	lender to a farmer who is eligible under subdivision 4. Participation is limited to 45 
42.4 	percent of the principal amount of the loan or $40,000, whichever is less. The interest 
42.5 	rates and repayment terms of the authority's participation interest may differ from the 
42.6 	interest rates and repayment terms of the lender's retained portion of the loan, but the 
42.7 	authority's interest rate must not exceed 50 percent of the lender's interest rate.
42.8 	(b) No more than 95 percent of the purchase price of the stock may be financed 
42.9 	under this program.
42.10 	(c) Security for stock loans must be the stock purchased, a personal note executed by 
42.11 	the borrower, and whatever other security is required by the eligible lender or the authority.
42.12 	(d) The authority may impose a reasonable nonrefundable application fee for each 
42.13 	application for a stock loan. The authority may review the fee annually and make 
42.14 	adjustments as necessary. The application fee is initially $50. Application fees received 
42.15 	by the authority must be deposited in the revolving loan account established in section 
42.16 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
42.17 	(e) Stock loans under this program will be made using money in the revolving 
42.18 	loan account established in section 41B.06.
42.19 	(f) The authority may not grant stock loans in a cumulative amount exceeding 
42.20 	$2,000,000 for the financing of stock purchases in any one cooperative.
42.21 	(g) Repayments of financial assistance under this section, including principal and 
42.22 	interest, must be deposited into the revolving loan account established in section 41B.06.

42.23 	Sec. 62. Minnesota Statutes 2014, section 41B.047, subdivision 1, is amended to read:
42.24 		Subdivision 1.Establishment. The authority shall establish and implement a 
42.25 	disaster recovery loan program to help farmers:
42.26 	(1) clean up, repair, or replace farm structures and septic and water systems, as well 
42.27 	as replace seed, other crop inputs, feed, and livestock, when damaged by high winds, 
42.28 	hail, tornado, or flood; or
42.29 	(2) purchase watering systems, irrigation systems, and other drought mitigation 
42.30 	systems and practices when drought is the cause of the purchase.; or
42.31 	(3) restore farmland.

42.32 	Sec. 63. Minnesota Statutes 2014, section 41B.047, subdivision 4, is amended to read:
42.33 		Subd. 4.Loans. (a) The authority may participate in a disaster recovery loan with 
42.34 	an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited 
43.1 	to 45 percent of the principal amount of the loan or $50,000, whichever is less. The 
43.2 	interest rates and repayment terms of the authority's participation interest may differ from 
43.3 	the interest rates and repayment terms of the lender's retained portion of the loan, but the 
43.4 	authority's interest rate must not exceed four percent.
43.5 	(b) Standards for loan amortization shall be set by the Rural Finance Authority 
43.6 	not to exceed ten years.
43.7 	(c) Security for the disaster recovery loans must be a personal note executed by the 
43.8 	borrower and whatever other security is required by the eligible lender or the authority.
43.9 	(d) The authority may impose a reasonable nonrefundable application fee for a 
43.10 	disaster recovery loan. The authority may review the fee annually and make adjustments 
43.11 	as necessary. The application fee is initially $50. Application fees received by the 
43.12 	authority must be deposited in the revolving loan account established under section 
43.13 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
43.14 	(e) Disaster recovery loans under this program will be made using money in the 
43.15 	revolving loan account established under section 41B.06.
43.16 	(f) Repayments of financial assistance under this section, including principal and 
43.17 	interest, must be deposited into the revolving loan account established under section 
43.18 	41B.06.

43.19 	Sec. 64. Minnesota Statutes 2014, section 41B.048, subdivision 6, is amended to read:
43.20 		Subd. 6.Loans. (a) The authority may disburse loans through a fiscal agent to 
43.21 	farmers and agricultural landowners who are eligible under subdivision 5. The total 
43.22 	accumulative loan principal must not exceed $75,000 per loan.
43.23 	(b) The fiscal agent may impose a loan origination fee in the amount of one percent 
43.24 	of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at 
43.25 	the time of loan closing.
43.26 	(c) The loan may be disbursed over a period not to exceed 12 years.
43.27 	(d) A borrower may receive loans, depending on the availability of funds, for planted 
43.28 	areas up to 160 acres for up to:
43.29 	(1) the total amount necessary for establishment of the crop;
43.30 	(2) the total amount of maintenance costs, including weed control, during the first 
43.31 	three years; and
43.32 	(3) 70 percent of the estimated value of one year's growth of the crop for years 
43.33 	four through 12.
44.1 	(e) Security for the loan must be the crop, a personal note executed by the borrower, an 
44.2 	interest in the land upon which the crop is growing, and whatever other security is required 
44.3 	by the fiscal agent or the authority. All recording fees must be paid by the borrower.
44.4 	(f) The authority may prescribe forms and establish an application process for 
44.5 	applicants to apply for a loan.
44.6 	(g) The authority may impose a reasonable, nonrefundable application fee for each 
44.7 	application for a loan under this program. The application fee is initially $50. Application 
44.8 	fees received by the authority must be deposited in the revolving loan account established 
44.9 	under section 41B.06 Rural Finance Authority administrative account established in 
44.10 	section 41B.03.
44.11 	(h) Loans under the program must be made using money in the revolving loan 
44.12 	account established under section 41B.06.
44.13 	(i) All repayments of financial assistance granted under this section, including 
44.14 	principal and interest, must be deposited into the revolving loan account established 
44.15 	under section 41B.06.
44.16 	(j) The interest payable on loans made by the authority for the agroforestry loan 
44.17 	program must, if funded by revenue bond proceeds, be at a rate not less than the rate on the 
44.18 	revenue bonds, and may be established at a higher rate necessary to pay costs associated 
44.19 	with the issuance of the revenue bonds and a proportionate share of the cost of administering 
44.20 	the program. The interest payable on loans for the agroforestry loan program funded from 
44.21 	sources other than revenue bond proceeds must be at a rate determined by the authority.
44.22 	(k) Loan principal balance outstanding plus all assessed interest must be repaid 
44.23 	within 120 days of harvest, but no later than 15 years from planting.

44.24 	Sec. 65. Minnesota Statutes 2014, section 41B.049, subdivision 4, is amended to read:
44.25 		Subd. 4.Loans. (a) The authority may make a direct loan or participate in a loan 
44.26 	with an eligible lender to a farmer who is eligible under subdivision 3. Repayment terms 
44.27 	of the authority's participation interest may differ from repayment terms of the lender's 
44.28 	retained portion of the loan. Loans made under this section must be no-interest loans.
44.29 	(b) Application for a direct loan or a loan participation must be made on forms 
44.30 	prescribed by the authority.
44.31 	(c) Standards for loan amortization shall be set by the Rural Finance Authority 
44.32 	not to exceed ten years.
44.33 	(d) Security for the loans must be a personal note executed by the borrower and 
44.34 	whatever other security is required by the eligible lender or the authority.
44.35 	(e) No loan proceeds may be used to refinance a debt existing prior to application.
45.1 	(f) The authority may impose a reasonable nonrefundable application fee for 
45.2 	each application for a direct loan or a loan participation. The authority may review the 
45.3 	application fees annually and make adjustments as necessary. The application fee is 
45.4 	initially set at $100 for a loan under subdivision 1. The fees received by the authority must 
45.5 	be deposited in the revolving loan account established in section 41B.06 Rural Finance 
45.6 	Authority administrative account established in section 41B.03.

45.7 	Sec. 66. Minnesota Statutes 2014, section 41B.055, subdivision 3, is amended to read:
45.8 		Subd. 3.Loans. (a) The authority may participate in a livestock equipment loan 
45.9 	equal to 90 percent of the purchased equipment value with an eligible lender to a farmer 
45.10 	who is eligible under subdivision 2. Participation is limited to 45 percent of the principal 
45.11 	amount of the loan or $40,000, whichever is less. The interest rates and repayment terms 
45.12 	of the authority's participation interest may differ from the interest rates and repayment 
45.13 	terms of the lender's retained portion of the loan, but the authority's interest rate must 
45.14 	not exceed three percent. The authority may review the interest annually and make 
45.15 	adjustments as necessary.
45.16 	(b) Standards for loan amortization must be set by the Rural Finance Authority 
45.17 	and must not exceed ten years.
45.18 	(c) Security for a livestock equipment loan must be a personal note executed by the 
45.19 	borrower and whatever other security is required by the eligible lender or the authority.
45.20 	(d) Refinancing of existing debt is not an eligible purpose.
45.21 	(e) The authority may impose a reasonable, nonrefundable application fee for 
45.22 	a livestock equipment loan. The authority may review the fee annually and make 
45.23 	adjustments as necessary. The initial application fee is $50. Application fees received 
45.24 	by the authority must be deposited in the revolving loan account established in section 
45.25 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
45.26 	(f) Loans under this program must be made using money in the revolving loan 
45.27 	account established in section 41B.06.

45.28 	Sec. 67. Minnesota Statutes 2014, section 41B.056, subdivision 2, is amended to read:
45.29 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
45.30 	(b) "Intermediary" means any lending institution or other organization of a for-profit 
45.31 	or nonprofit nature that is in good standing with the state of Minnesota that has the 
45.32 	appropriate business structure and trained personnel suitable to providing efficient 
45.33 	disbursement of loan funds and the servicing and collection of loans.
46.1 	(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials, 
46.2 	and other horticultural products, that are intensively cultivated.
46.3 	(d) "Eligible livestock" means poultry that has been allowed access to the outside, 
46.4 	sheep, or goats beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae, 
46.5 	ratitae, bison, sheep, horses, and llamas.

46.6 	Sec. 68. [41B.057] FARM OPPORTUNITY LOAN PROGRAM.
46.7 		Subdivision 1.Establishment. The commissioner of agriculture shall establish a 
46.8 	farm opportunity loan program to provide loans that enable farmers to:
46.9 	(1) add value to crops or livestock produced in Minnesota;
46.10 	(2) adopt best management practices that emphasize sufficiency and self-sufficiency;
46.11 	(3) reduce or improve management of agricultural inputs resulting in environmental 
46.12 	improvements; or
46.13 	(4) increase production of on-farm energy.
46.14 		Subd. 2.Loan criteria. (a) The farm opportunity loan program shall provide loans 
46.15 	for purchase of new or used equipment and installation of equipment for projects that 
46.16 	make environmental improvements and enhance farm profitability. The loan program 
46.17 	shall also be used to add value to crops or livestock produced in Minnesota by, but not 
46.18 	limited to, initiating or expanding livestock product processing; purchasing equipment to 
46.19 	initiate, upgrade, or modernize value-added agricultural businesses; or increasing farmers' 
46.20 	processing and aggregating capacity facilitating entry into farm-to-institution and other 
46.21 	markets. Eligible loan uses do not include expenses related to seeds, fertilizer, fuel, or 
46.22 	other operating expenses.
46.23 	(b) The authority may impose a reasonable, nonrefundable application fee for a farm 
46.24 	opportunity loan. The authority may review the fee annually and make adjustments as 
46.25 	necessary. The initial application fee is $50. Application fees received by the authority 
46.26 	must be deposited in the Rural Finance Authority administrative account established 
46.27 	in section 41B.03.
46.28 	(c) Loans may only be made to Minnesota residents engaged in farming. Standards 
46.29 	for loan amortization must be set by the Rural Finance Authority and must not exceed 
46.30 	ten years.
46.31 	(d) The borrower must show the ability to repay the loan.
46.32 	(e) Refinancing of existing debt is not an eligible expense.
46.33 	(f) Loans under this program must be made using money in the revolving loan 
46.34 	account established in section 41B.06.
47.1 		Subd. 3.Loan participation. The authority may participate in a farm opportunity 
47.2 	loan with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a 
47.3 	group of farmers on joint projects who are eligible under subdivision 2, paragraph (c), 
47.4 	and who are actively engaged in farming. Participation is limited to 45 percent of the 
47.5 	principal amount of the loan or $45,000 per individual, whichever is less. For loans to a 
47.6 	group made up of four or more individuals, participation is limited to 45 percent of the 
47.7 	principal amount of the loan or $180,000, whichever is less. The interest rate on the 
47.8 	loans must not exceed six percent.

47.9 	Sec. 69. Minnesota Statutes 2014, section 41B.06, is amended to read:
47.10 	41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
47.11 	There is established in the rural finance administration fund a Rural Finance 
47.12 	Authority revolving loan account that is eligible to receive appropriations and the transfer 
47.13 	of loan funds from other programs. All repayments of financial assistance granted from 
47.14 	this account, including principal and interest, must be deposited into this account. Interest 
47.15 	earned on money in the account accrues to the account, and the money in the account is 
47.16 	appropriated to the commissioner of agriculture for purposes of the Rural Finance Authority 
47.17 	livestock equipment, methane digester, disaster recovery, value-added agricultural 
47.18 	product, agroforestry, and agricultural microloan, and farm opportunity loan programs, 
47.19 	including costs incurred by the authority to establish and administer the programs.

47.20 	Sec. 70. Minnesota Statutes 2014, section 375.30, subdivision 2, is amended to read:
47.21 		Subd. 2.Wild hemp. A county board, by resolution, may appropriate and spend 
47.22 	money as necessary to spray and otherwise eradicate wild hemp, commonly known as 
47.23 	marijuana, on private property within the county. The county board may authorize the 
47.24 	use of county equipment, personnel and supplies and materials to spray or otherwise 
47.25 	eradicate wild hemp on private property, and may pro rate the expenses involved between 
47.26 	the county and owner or occupant of the property. Industrial hemp grown by a person 
47.27 	licensed under chapter 18K is not wild hemp.

47.28 	Sec. 71. CORRECTIONAL FACILITY BUTCHER TRAINING PILOT 
47.29 	PROGRAM.
47.30 		Subdivision 1.Pilot program. The commissioner of agriculture must coordinate a 
47.31 	pilot program operated by the Northeast Regional Corrections Center to train inmates for 
47.32 	careers as butchers upon release. The commissioner must facilitate program development 
48.1 	and ensure that the program prepares inmates to meet applicable food safety and licensure 
48.2 	requirements.
48.3 		Subd. 2.Program development. In facilitating development of the pilot program, 
48.4 	the commissioner must consult with the commissioner of employment and economic 
48.5 	development and a representative of each of the following organizations:
48.6 	(1) Northeast Regional Corrections Center; and
48.7 	(2) United Food and Commercial Workers.
48.8 		Subd. 3.Report required. No later than February 1, 2017, the commissioner must 
48.9 	report on the progress and outcomes of the program to the legislative committees with 
48.10 	jurisdiction over agriculture, higher education, and public safety.
48.11 		Subd. 4.Expiration. This section expires July 1, 2017.

48.12 	Sec. 72. BALANCES TRANSFERRED; ACCOUNTS ABOLISHED.
 48.13 	The balances in the accounts created under Minnesota Statutes, sections 41B.03, 
48.14 	subdivision 6; 41B.04, subdivision 17; 41B.043, subdivision 3; and 41B.045, subdivision 
48.15 	4, are transferred to the Rural Finance Authority administrative account established under 
48.16 	Minnesota Statutes, section 41B.03, subdivision 7, and the original accounts are abolished.
48.17 	The balance in the account created under Minnesota Statutes, section 17.115, 
48.18 	is transferred to the Rural Finance Authority revolving loan account established under 
48.19 	Minnesota Statutes, section 41B.06, and the original account is abolished.

48.20 	Sec. 73. LIVESTOCK INDUSTRY STUDY.
 48.21 	The commissioner of agriculture must identify causes of the relative growth or 
48.22 	decline of poultry and livestock production in Minnesota, Iowa, North Dakota, South 
48.23 	Dakota, Wisconsin, and Nebraska over the last ten years. The commissioner shall include 
48.24 	the most recent ten years of data on the number of livestock farms for each of the states 
48.25 	that are compared. No later than February 1, 2016, the commissioner must report findings 
48.26 	by poultry and livestock sector and provide recommendations on how to strengthen and 
48.27 	expand Minnesota animal agriculture to the legislative committees with jurisdiction over 
48.28 	agriculture policy and finance.

48.29 	Sec. 74.  REPEALER.
 48.30 	Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9 and 10; and 
48.31 	41A.12, subdivision 4, are repealed.

49.1 	ARTICLE 3
49.2 	ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

49.3	Section 1. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
 	
49.4 	The sums shown in the columns marked "Appropriations" are appropriated to the 
49.5 	agencies and for the purposes specified in this article. The appropriations are from the 
49.6 	general fund, or another named fund, and are available for the fiscal years indicated 
49.7 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
49.8 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
49.9 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
49.10 	year 2017. "The biennium" is fiscal years 2016 and 2017. Appropriations for the fiscal 
49.11 	year ending June 30, 2015, are effective the day following final enactment.

49.12				APPROPRIATIONS
	
49.13				Available for the Year
	
49.14				Ending June 30
	
49.15					2016
		2017

49.16	Sec. 2. POLLUTION CONTROL AGENCY

49.17	Subdivision 1.Total Appropriation
 	$
	94,682,000
	$
	91,884,000

49.18	Appropriations by Fund
	
49.19		2016
	2017
	
49.20	General
	5,495,000
	5,477,000
	
49.21
49.22	State Government 
Special Revenue
	75,000
	75,000
	
49.23	Environmental
	74,130,000
	74,548,000
	
49.24	Remediation
	14,982,000
	11,784,000
	
49.25 	The amounts that may be spent for each 
49.26 	purpose are specified in the following 
49.27 	subdivisions.

49.28	Subd. 2.Water
 		26,438,000
		26,231,000

49.29	Appropriations by Fund
	
49.30		2016
	2017
	
49.31	General
	4,207,000
	3,777,000
	
49.32
49.33	State Government 
Special Revenue
	75,000
	75,000
	
49.34	Environmental
	22,156,000
	22,379,000
	
49.35 	$1,959,000 the first year and $1,959,000 
49.36 	the second year are for grants to delegated 
50.1 	counties to administer the county feedlot 
50.2 	program under Minnesota Statutes, section 
50.3 	116.0711, subdivisions 2 and 3. Money 
50.4 	remaining after the first year is available for 
50.5 	the second year.
50.6 	$753,000 the first year and $765,000 the 
50.7 	second year are from the environmental 
50.8 	fund to address the need for continued 
50.9 	increased activity in the areas of new 
50.10 	technology review, technical assistance 
50.11 	for local governments, and enforcement 
50.12 	under Minnesota Statutes, sections 115.55 
50.13 	to 115.58, and to complete the requirements 
50.14 	of Laws 2003, chapter 128, article 1, section 
50.15 	165.
50.16 	$400,000 the first year and $400,000 
50.17 	the second year are for the clean water 
50.18 	partnership program. Any unexpended 
50.19 	balance in the first year does not cancel but 
50.20 	is available in the second year. Priority shall 
50.21 	be given to projects preventing impairments 
50.22 	and degradation of lakes, rivers, streams, 
50.23 	and groundwater according to Minnesota 
50.24 	Statutes, section 114D.20, subdivision 2, 
50.25 	clause (4).
50.26 	$673,000 the first year and $683,000 the 
50.27 	second year are from the environmental 
50.28 	fund for subsurface sewage treatment 
50.29 	system (SSTS) program administration 
50.30 	and community technical assistance and 
50.31 	education, including grants and technical 
50.32 	assistance to communities for water quality 
50.33 	protection. Of this amount, $129,000 each 
50.34 	year is for assistance to counties through 
50.35 	grants for SSTS program administration. 
51.1 	A county receiving a grant from this 
51.2 	appropriation shall submit the results 
51.3 	achieved with the grant to the commissioner 
51.4 	as part of its annual SSTS report. Any 
51.5 	unexpended balance in the first year does not 
51.6 	cancel but is available in the second year.
51.7 	$107,000 the first year and $109,000 the 
51.8 	second year are from the environmental fund 
51.9 	for registration of wastewater laboratories.
51.10 	$150,000 the first year from the 
51.11 	environmental fund is for wild rice water 
51.12 	quality rulemaking and implementation 
51.13 	provided for in this act. This is a onetime 
51.14 	appropriation.
51.15 	$200,000 the first year is for a grant to 
51.16 	the Red River Basin Commission for 
51.17 	development of a water quality strategic plan 
51.18 	for the Red River of the North, in cooperation 
51.19 	with the Red River Board of the International 
51.20 	Joint Commission. The appropriation 
51.21 	must be matched by equal amounts from 
51.22 	both North Dakota and Manitoba and a 
51.23 	proportionate amount from South Dakota. 
51.24 	This is a onetime appropriation and does 
51.25 	not cancel. The plan must include, but is 
51.26 	not limited to, consistency in water quality 
51.27 	goals and objectives for the Red River of the 
51.28 	North and pollution reduction allocations for 
51.29 	both point and nonpoint sources on the Red 
51.30 	River of the North and for individual major 
51.31 	watersheds tributary to the Red River of the 
51.32 	North. The Red River Basin Commission 
51.33 	must involve the interests of local, state, and 
51.34 	federal government, business and industry, 
51.35 	environmental groups, and Red River 
52.1 	basin landowners. The Red River Basin 
52.2 	Commission must report progress on the plan 
52.3 	to the house of representatives and senate 
52.4 	committees and divisions with jurisdiction 
52.5 	over environment policy and finance by 
52.6 	February 15 in 2016 and 2017 and must 
52.7 	submit the completed plan by December 31, 
52.8 	2017.
52.9 	Notwithstanding Minnesota Statutes, section 
52.10 	16A.28, the appropriations encumbered on or 
52.11 	before June 30, 2017, as grants or contracts 
52.12 	for SSTS's, surface water and groundwater 
52.13 	assessments, total maximum daily loads, 
52.14 	storm water, and water quality protection in 
52.15 	this subdivision are available until June 30, 
52.16 	2020.

52.17	Subd. 3.Air
 		15,640,000
		16,087,000

52.18	Appropriations by Fund
	
52.19		2016
	2017
	
52.20	Environmental
	15,640,000
	16,087,000
	
52.21 	$202,000 the first year and $204,000 the 
52.22 	second year are from the environmental fund 
52.23 	for a monitoring program under Minnesota 
52.24 	Statutes, section 116.454.
52.25 	Up to $150,000 the first year and $150,000 
52.26 	the second year may be transferred from the 
52.27 	environmental fund to the small business 
52.28 	environmental improvement loan account 
52.29 	established in Minnesota Statutes, section 
52.30 	116.993.
52.31 	$126,000 the first year and $127,000 the 
52.32 	second year are from the environmental fund 
52.33 	for monitoring ambient air for hazardous 
52.34 	pollutants in the metropolitan area.
53.1 	$214,000 the first year and $219,000 the 
53.2 	second year are from the environmental 
53.3 	fund for systematic, localized monitoring 
53.4 	efforts in the state that sample ambient air 
53.5 	to determine whether significant localized 
53.6 	differences exist. The commissioner, when 
53.7 	selecting areas to monitor, shall give priority 
53.8 	to areas where low income, indigenous 
53.9 	American Indians, and communities of 
53.10 	color are disproportionately impacted by 
53.11 	pollution from highway traffic, air traffic, 
53.12 	and industrial sources.
53.13 	$691,000 the first year and $693,000 the 
53.14 	second year are from the environmental 
53.15 	fund for emission reduction activities and 
53.16 	grants to small businesses and other nonpoint 
53.17 	emission reduction efforts. Any unexpended 
53.18 	balance in the first year does not cancel but is 
53.19 	available in the second year.

53.20	Subd. 4.Land
 		22,013,000
		18,934,000

53.21	Appropriations by Fund
	
53.22		2016
	2017
	
53.23	Environmental
	7,031,000
	7,150,000
	
53.24	Remediation
	14,982,000
	11,784,000
	
53.25 	All money for environmental response, 
53.26 	compensation, and compliance in the 
53.27 	remediation fund not otherwise appropriated 
53.28 	is appropriated to the commissioners of the 
53.29 	Pollution Control Agency and agriculture 
53.30 	for purposes of Minnesota Statutes, section 
53.31 	115B.20, subdivision 2, clauses (1), (2), 
53.32 	(3), (6), and (7). At the beginning of each 
53.33 	fiscal year, the two commissioners shall 
53.34 	jointly submit an annual spending plan 
53.35 	to the commissioner of management and 
53.36 	budget that maximizes the utilization of 
54.1 	resources and appropriately allocates the 
54.2 	money between the two departments. This 
54.3 	appropriation is available until June 30, 2017.
54.4 	$4,279,000 the first year and $4,343,000 the 
54.5 	second year are from the remediation fund 
54.6 	for purposes of the leaking underground 
54.7 	storage tank program to investigate, clean up, 
54.8 	and prevent future releases from underground 
54.9 	petroleum storage tanks, and to the petroleum 
54.10 	remediation program for purposes of vapor 
54.11 	assessment and remediation. These same 
54.12 	annual amounts are transferred from the 
54.13 	petroleum tank fund to the remediation fund.
54.14 	$252,000 the first year and $252,000 the 
54.15 	second year are from the remediation fund 
54.16 	for transfer to the commissioner of health for 
54.17 	private water supply monitoring and health 
54.18 	assessment costs in areas contaminated 
54.19 	by unpermitted mixed municipal solid 
54.20 	waste disposal facilities and drinking water 
54.21 	advisories and public information activities 
54.22 	for areas contaminated by hazardous releases.
54.23 	$743,000 the first year is transferred from the 
54.24 	general account in the remediation fund to 
54.25 	the dry cleaner environmental response and 
54.26 	reimbursement account in the remediation 
54.27 	fund for the purpose of remediating land 
54.28 	contaminated by a release from a dry cleaning 
54.29 	facility, as provided under Minnesota 
54.30 	Statutes, section 115B.50. The commissioner 
54.31 	shall prioritize expenditures from this 
54.32 	transfer to address contaminated sites that 
54.33 	pose the greatest risk to public health or 
54.34 	welfare or to the environment, as established 
55.1 	in Minnesota Statutes, section 115B.17, 
55.2 	subdivision 13. This is a onetime transfer.
55.3 	$868,000 the first year is from the remediation 
55.4 	fund for a grant to the city of Mountain Iron 
55.5 	for remediation of the abandoned wastewater 
55.6 	treatment pond of the former Nichols 
55.7 	Township. This is a onetime appropriation 
55.8 	that is available until June 30, 2019.

55.955.10
	Subd. 5.Environmental Assistance and 
Cross-Media
 		30,591,000
		30,632,000

55.11	Appropriations by Fund
	
55.12		2016
	2017
	
55.13	Environmental
	29,303,000
	28,932,000
	
55.14	General
	1,288,000
	1,700,000
	
55.15 	$17,250,000 the first year and $17,250,000 
55.16 	the second year are from the environmental 
55.17 	fund for SCORE block grants to counties.
55.18 	$119,000 the first year and $119,000 the 
55.19 	second year are from the environmental 
55.20 	fund for environmental assistance grants 
55.21 	or loans under Minnesota Statutes, section 
55.22 	115A.0716. Any unencumbered grant and 
55.23 	loan balances in the first year do not cancel 
55.24 	but are available for grants and loans in the 
55.25 	second year.
55.26 	$90,000 the first year and $90,000 the 
55.27 	second year are from the environmental fund 
55.28 	for duties related to harmful chemicals in 
55.29 	products under Minnesota Statutes, sections 
55.30 	116.9401 to 116.9407. Of this amount, 
55.31 	$57,000 each year is transferred to the 
55.32 	commissioner of health.
55.33 	$400,000 the second year is to enhance 
55.34 	awareness of and reduce priority chemicals 
55.35 	in consumer products. Of this amount, 
56.1 	$90,000 the second year is for transfer to the 
56.2 	Department of Commerce and $90,000 the 
56.3 	second year is for transfer to the Department 
56.4 	of Health. This is a onetime appropriation. 
56.5 	The agency base for fiscal year 2018 shall 
56.6 	include $826,000 for this purpose.
56.7 	$203,000 the first year and $207,000 the 
56.8 	second year are from the environmental 
56.9 	fund for the costs of implementing general 
56.10 	operating permits for feedlots over 1,000 
56.11 	animal units.
56.12 	$565,000 the first year and $569,000 the 
56.13 	second year are from the general fund and 
56.14 	$192,000 the first year and $192,000 the 
56.15 	second year are from the environmental fund 
56.16 	for Environmental Quality Board operations 
56.17 	and support.
56.18 	$500,000 the first year from the 
56.19 	environmental fund is a onetime 
56.20 	appropriation to the Environmental Quality 
56.21 	Board for development of a Web-based 
56.22 	environmental review tool.
56.23 	$50,000 the first year and $50,000 the second 
56.24 	year are from the environmental fund for 
56.25 	transfer to the Office of Administrative 
56.26 	Hearings to establish sanitary districts.
56.27 	$502,000 the first year and $503,000 the 
56.28 	second year are from the general fund for 
56.29 	the Environmental Quality Board to lead 
56.30 	an interagency team to provide technical 
56.31 	assistance regarding the mining, processing, 
56.32 	and transporting of silica sand.
56.33 	All money deposited in the environmental 
56.34 	fund for the metropolitan solid waste 
56.35 	landfill fee in accordance with Minnesota 
57.1 	Statutes, section 473.843, and not otherwise 
57.2 	appropriated, is appropriated for the purposes 
57.3 	of Minnesota Statutes, section 473.844.
57.4 	Notwithstanding Minnesota Statutes, section 
57.5 	16A.28, the appropriations encumbered on 
57.6 	or before June 30, 2017, as contracts or 
57.7 	grants for surface water and groundwater 
57.8 	assessments; environmental assistance 
57.9 	awarded under Minnesota Statutes, section 
57.10 	115A.0716; technical and research assistance 
57.11 	under Minnesota Statutes, section 115A.152; 
57.12 	technical assistance under Minnesota 
57.13 	Statutes, section 115A.52; and pollution 
57.14 	prevention assistance under Minnesota 
57.15 	Statutes, section 115D.04, are available until 
57.16 	June 30, 2019.

57.17	Subd. 6.Remediation Fund
 					
57.18 	The commissioner shall transfer up to 
57.19 	$42,000,000 from the environmental fund 
57.20 	to the remediation fund for the purposes 
57.21 	of the remediation fund under Minnesota 
57.22 	Statutes, section 116.155, subdivision 
57.23 	2. $2,500,000 of the amount transferred 
57.24 	under this subdivision is appropriated in 
57.25 	the first year from the remediation fund to 
57.26 	the commissioner for a grant to the city of 
57.27 	Paynesville to add an air stripping treatment 
57.28 	process to a water treatment plant for removal 
57.29 	of volatile organic compounds.

57.30	Subd. 7.Transfer
 					
57.31 	By June 30, 2016, the commissioner of 
57.32 	management and budget shall transfer 
57.33 	$33,276,000 from the closed landfill 
57.34 	investment fund to the general fund.

58.1	Sec. 3. NATURAL RESOURCES

58.2	Subdivision 1.Total Appropriation
 	$
	267,802,000
	$
	262,288,000

58.3	Appropriations by Fund
	
58.4		2016
	2017
	
58.5	General
	76,484,000
	74,994,000
	
58.6	Natural Resources
	84,786,000
	85,236,000
	
58.7	Game and Fish
	106,232,000
	101,758,000
	
58.8	Remediation
	100,000
	100,000
	
58.9	Permanent School
	200,000
	200,000
	
58.10 	The amounts that may be spent for each 
58.11 	purpose are specified in the following 
58.12 	subdivisions.

58.13
58.14	Subd. 2.Land and Mineral Resources 
Management
 		5,461,000
		5,521,000

58.15	Appropriations by Fund
	
58.16		2016
	2017
	
58.17	General
	1,585,000
	1,585,000
	
58.18	Natural Resources
	3,332,000
	3,342,000
	
58.19	Game and Fish
	344,000
	344,000
	
58.20	Permanent School
	200,000
	200,000
	
58.21 	$68,000 the first year and $68,000 the 
58.22 	second year are for minerals cooperative 
58.23 	environmental research, of which $34,000 
58.24 	the first year and $34,000 the second year are 
58.25 	available only as matched by $1 of nonstate 
58.26 	money for each $1 of state money. The 
58.27 	match may be cash or in-kind.
58.28 	$251,000 the first year and $251,000 the 
58.29 	second year are for iron ore cooperative 
58.30 	research. Of this amount, $200,000 each year 
58.31 	is from the minerals management account 
58.32 	in the natural resources fund. $175,000 the 
58.33 	first year and $175,000 the second year are 
58.34 	available only as matched by $1 of nonstate 
58.35 	money for each $1 of state money. The match 
58.36 	may be cash or in-kind. Any unencumbered 
59.1 	balance from the first year does not cancel 
59.2 	and is available in the second year.
59.3 	$2,755,000 the first year and $2,815,000 
59.4 	the second year are from the minerals 
59.5 	management account in the natural resources 
59.6 	fund for use as provided in Minnesota 
59.7 	Statutes, section 93.2236, paragraph (c), 
59.8 	for mineral resource management, projects 
59.9 	to enhance future mineral income, and 
59.10 	projects to promote new mineral resource 
59.11 	opportunities.
59.12 	$200,000 the first year and $200,000 the 
59.13 	second year are from the state forest suspense 
59.14 	account in the permanent school fund to 
59.15 	accelerate land exchanges, land sales, and 
59.16 	commercial leasing of school trust lands and 
59.17 	to identify, evaluate, and lease construction 
59.18 	aggregate located on school trust lands. This 
59.19 	appropriation is to be used for securing 
59.20 	long-term economic return from the 
59.21 	school trust lands consistent with fiduciary 
59.22 	responsibilities and sound natural resources 
59.23 	conservation and management principles.
59.24 	Prior to June 30, 2015, the commissioner 
59.25 	shall offer to renegotiate mineral royalty 
59.26 	rates under Minnesota Statutes, section 
59.27 	93.20. In renegotiating the royalty rates, the 
59.28 	commissioner shall consider the long-term 
59.29 	effect of the royalty rates on the beneficiary 
59.30 	funds, including the effect of the royalty 
59.31 	rates on the long-term health of the mining 
59.32 	industry in Minnesota. This paragraph is 
59.33 	effective the day following final enactment.

59.34	Subd. 3.Ecological and Water Resources
 		32,768,000
		32,506,000

60.1	Appropriations by Fund
	
60.2		2016
	2017
	
60.3	General
	17,491,000
	17,046,000
	
60.4	Natural Resources
	10,487,000
	10,546,000
	
60.5	Game and Fish
	4,790,000
	4,914,000
	
60.6 	$3,242,000 the first year and $3,242,000 the 
60.7 	second year are from the invasive species 
60.8 	account in the natural resources fund and 
60.9 	$3,206,000 the first year and $3,206,000 the 
60.10 	second year are from the general fund for 
60.11 	management, public awareness, assessment 
60.12 	and monitoring research, and water access 
60.13 	inspection to prevent the spread of invasive 
60.14 	species; management of invasive plants in 
60.15 	public waters; and management of terrestrial 
60.16 	invasive species on state-administered lands.
60.17 	$3,000,000 the first year and $5,000,000 the 
60.18 	second year are from the water management 
60.19 	account in the natural resources fund for only 
60.20 	the purposes specified in Minnesota Statutes, 
60.21 	section 103G.27, subdivision 2.
60.22 	$124,000 the first year and $124,000 the 
60.23 	second year are for a grant to the Mississippi 
60.24 	Headwaters Board for up to 50 percent of 
60.25 	the cost of implementing the comprehensive 
60.26 	plan for the upper Mississippi within areas 
60.27 	under the board's jurisdiction.
60.28 	$10,000 the first year and $10,000 the second 
60.29 	year are for payment to the Leech Lake Band 
60.30 	of Chippewa Indians to implement the band's 
60.31 	portion of the comprehensive plan for the 
60.32 	upper Mississippi.
60.33 	$264,000 the first year and $264,000 the 
60.34 	second year are for grants for up to 50 
61.1 	percent of the cost of implementation of the 
61.2 	Red River mediation agreement.
61.3 	$2,393,000 the first year and $2,393,000 
61.4 	the second year are from the heritage 
61.5 	enhancement account in the game and 
61.6 	fish fund for only the purposes specified 
61.7 	in Minnesota Statutes, section 297A.94, 
61.8 	paragraph (e), clause (1).
61.9 	$950,000 the first year and $950,000 the 
61.10 	second year are from the nongame wildlife 
61.11 	management account in the natural resources 
61.12 	fund for the purpose of nongame wildlife 
61.13 	management. Notwithstanding Minnesota 
61.14 	Statutes, section 290.431, $100,000 the first 
61.15 	year and $100,000 the second year may 
61.16 	be used for nongame wildlife information, 
61.17 	education, and promotion.
61.18 	$6,000,000 the first year and $6,000,000 the 
61.19 	second year are from the general fund for the 
61.20 	following activities:
61.21 	(1) financial reimbursement and technical 
61.22 	support to soil and water conservation 
61.23 	districts or other local units of government 
61.24 	for groundwater level monitoring;
61.25 	(2) surface water monitoring and analysis, 
61.26 	including installation of monitoring gauges;
61.27 	(3) groundwater analysis to assist with water 
61.28 	appropriation permitting decisions;
61.29 	(4) permit application review incorporating 
61.30 	surface water and groundwater technical 
61.31 	analysis;
61.32 	(5) precipitation data and analysis to improve 
61.33 	the use of irrigation;
62.1 	(6) information technology, including 
62.2 	electronic permitting and integrated data 
62.3 	systems; and
62.4 	(7) compliance and monitoring.
62.5 	$150,000 is for the commissioner of 
62.6 	natural resources, in cooperation with the 
62.7 	commissioners of the Pollution Control 
62.8 	Agency and health, the Public Facilities 
62.9 	Authority, and local units of government to 
62.10 	conduct a study and report to the legislature 
62.11 	on:
62.12 	(1) the feasibility of constructing 
62.13 	a wastewater treatment facility for 
62.14 	communities surrounding White Bear Lake 
62.15 	that will provide treated wastewater to be 
62.16 	used to augment water levels in White Bear 
62.17 	Lake; and
62.18 	(2) design and construction of an 
62.19 	augmentation supply from Sucker Lake 
62.20 	to White Bear Lake. The commissioner 
62.21 	shall submit the report to the chairs and 
62.22 	ranking minority members of the legislative 
62.23 	committees and divisions with jurisdiction 
62.24 	over environment and natural resources 
62.25 	policy and finance no later than January 15, 
62.26 	2016.
62.27 	$400,000 the first year is for grants to assist 
62.28 	in the construction of flood protection rural 
62.29 	and farmstead ring levees in the Red River 
62.30 	watershed. Grants may not exceed 50 percent 
62.31 	of the cost of the projects. This is a onetime 
62.32 	appropriation and is available until June 30, 
62.33 	2019.

62.34	Subd. 4.Forest Management
 		40,456,000
		39,860,000

63.1	Appropriations by Fund
	
63.2		2016
	2017
	
63.3	General
	28,046,000
	27,450,000
	
63.4	Natural Resources
	11,123,000
	11,123,000
	
63.5	Game and Fish
	1,287,000
	1,287,000
	
63.6 	$7,145,000 the first year and $7,145,000 
63.7 	the second year are for prevention, 
63.8 	presuppression, and suppression costs of 
63.9 	emergency firefighting and other costs 
63.10 	incurred under Minnesota Statutes, section 
63.11 	88.12. The amount necessary to pay for 
63.12 	presuppression and suppression costs during 
63.13 	the biennium is appropriated from the general 
63.14 	fund.
63.15 	By January 15 of each year, the commissioner 
63.16 	of natural resources shall submit a report to 
63.17 	the chairs and ranking minority members 
63.18 	of the house and senate committees 
63.19 	and divisions having jurisdiction over 
63.20 	environment and natural resources finance, 
63.21 	identifying all firefighting costs incurred 
63.22 	and reimbursements received in the prior 
63.23 	fiscal year. These appropriations may 
63.24 	not be transferred. Any reimbursement 
63.25 	of firefighting expenditures made to the 
63.26 	commissioner from any source other than 
63.27 	federal mobilizations shall be deposited into 
63.28 	the general fund.
63.29 	$11,123,000 the first year and $11,123,000 
63.30 	the second year are from the forest 
63.31 	management investment account in the 
63.32 	natural resources fund for only the purposes 
63.33 	specified in Minnesota Statutes, section 
63.34 	89.039, subdivision 2.
63.35 	$1,287,000 the first year and $1,287,000 
63.36 	the second year are from the heritage 
64.1 	enhancement account in the game and fish 
64.2 	fund to advance ecological classification 
64.3 	systems (ECS) scientific management tools 
64.4 	for forest and invasive species management. 
64.5 	This appropriation is from revenue deposited 
64.6 	in the game and fish fund under Minnesota 
64.7 	Statutes, section 297A.94, paragraph (e), 
64.8 	clause (1).
64.9 	$880,000 the first year and $880,000 the 
64.10 	second year are for the Forest Resources 
64.11 	Council for implementation of the 
64.12 	Sustainable Forest Resources Act.
64.13 	$1,000,000 the first year is for a pilot 
64.14 	program to increase forest road maintenance. 
64.15 	The commissioner shall use the money to 
64.16 	perform needed maintenance on forest roads 
64.17 	in conjunction with timber sales. Optional 
64.18 	forest road maintenance contracts may be 
64.19 	offered to successful purchasers of state 
64.20 	timber sales at the commissioner's discretion. 
64.21 	This is a onetime appropriation.
64.22 	$250,000 the first year and $250,000 the 
64.23 	second year are for the FORIST system.
64.24 	The commissioner shall contract with a 
64.25 	telecommunication provider to place a cell 
64.26 	phone transmitter on the ranger tower on 
64.27 	Side Lake in St. Louis County.
64.28 	The general fund base budget for forest 
64.29 	management in fiscal year 2018 and 
64.30 	thereafter is $27,450,000.

64.31	Subd. 5.Parks and Trails Management
 		73,414,000
		73,800,000

64.32	Appropriations by Fund
	
64.33		2016
	2017
	
64.34	General
	23,627,000
	23,777,000
	
65.1	Natural Resources
	47,521,000
	47,750,000
	
65.2	Game and Fish
	2,266,000
	2,273,000
	
65.3 	$1,075,000 the first year and $1,075,000 the 
65.4 	second year are from the water recreation 
65.5 	account in the natural resources fund for 
65.6 	enhancing public water access facilities.
65.7 	$5,740,000 the first year and $5,740,000 the 
65.8 	second year are from the natural resources 
65.9 	fund for state trail, park, and recreation area 
65.10 	operations. This appropriation is from the 
65.11 	revenue deposited in the natural resources 
65.12 	fund under Minnesota Statutes, section 
65.13 	297A.94, paragraph (e), clause (2).
65.14 	$1,005,000 the first year and $1,005,000 the 
65.15 	second year are from the natural resources 
65.16 	fund for park and trail grants to local units of 
65.17 	government on land to be maintained for at 
65.18 	least 20 years for the purposes of the grants. 
65.19 	This appropriation is from the revenue 
65.20 	deposited in the natural resources fund 
65.21 	under Minnesota Statutes, section 297A.94, 
65.22 	paragraph (e), clause (4). Any unencumbered 
65.23 	balance does not cancel at the end of the first 
65.24 	year and is available for the second year.
65.25 	$8,424,000 the first year and $8,424,000 
65.26 	the second year are from the snowmobile 
65.27 	trails and enforcement account in the 
65.28 	natural resources fund for the snowmobile 
65.29 	grants-in-aid program. Any unencumbered 
65.30 	balance does not cancel at the end of the first 
65.31 	year and is available for the second year.
65.32 	$1,460,000 the first year and $1,460,000 the 
65.33 	second year are from the natural resources 
65.34 	fund for the off-highway vehicle grants-in-aid 
65.35 	program. Of this amount, $1,210,000 each 
66.1 	year is from the all-terrain vehicle account; 
66.2 	$150,000 each year is from the off-highway 
66.3 	motorcycle account; and $100,000 each year 
66.4 	is from the off-road vehicle account. Any 
66.5 	unencumbered balance does not cancel at the 
66.6 	end of the first year and is available for the 
66.7 	second year.
66.8 	$968,000 the first year and $968,000 the 
66.9 	second year are from the off-road vehicle 
66.10 	account in the natural resources fund. Of 
66.11 	this amount, $568,000 each year is for parks 
66.12 	and trails management for off-road vehicle 
66.13 	purposes; $325,000 is for the off-road 
66.14 	vehicle grant-in-aid program; and $75,000 
66.15 	is for a new full-time employee position or 
66.16 	contract in northern Minnesota to work in 
66.17 	conjunction with the Minnesota Four-Wheel 
66.18 	Drive Association to address off-road vehicle 
66.19 	touring routes and other issues related to 
66.20 	off-road vehicle activities. This is a onetime 
66.21 	appropriation.
66.22 	$75,000 the first year and $75,000 the second 
66.23 	year are from the cross-country ski account 
66.24 	in the natural resources fund for grooming 
66.25 	and maintaining cross-country ski trails in 
66.26 	state parks, trails, and recreation areas.
66.27 	$250,000 the first year and $250,000 the 
66.28 	second year are from the state land and 
66.29 	water conservation account (LAWCON) 
66.30 	in the natural resources fund for priorities 
66.31 	established by the commissioner for eligible 
66.32 	state projects and administrative and 
66.33 	planning activities consistent with Minnesota 
66.34 	Statutes, section 84.0264, and the federal 
66.35 	Land and Water Conservation Fund Act. 
67.1 	Any unencumbered balance does not cancel 
67.2 	at the end of the first year and is available for 
67.3 	the second year.
67.4 	$65,000 the first year is from the water 
67.5 	recreation account in the natural resources 
67.6 	fund to cooperate with local units of 
67.7 	government in marking routes and 
67.8 	designating river accesses and campsites 
67.9 	under Minnesota Statutes, section 85.32. 
67.10 	This is a onetime appropriation and is 
67.11 	available until June 30, 2019.
67.12 	$190,000 the first year is for a grant to the 
67.13 	city of Virginia for the additional cost of 
67.14 	supporting a trail due to the rerouting of 
67.15 	U.S. Highway No. 53. This is a onetime 
67.16 	appropriation and is available until June 30, 
67.17 	2019.
67.18 	$50,000 the first year is for development of 
67.19 	a master plan for the Mississippi Blufflands 
67.20 	Trail, including work on possible extensions 
67.21 	or connections to other state or regional 
67.22 	trails. This is a onetime appropriation that is 
67.23 	available until June 30, 2017.
67.24 	$61,000 the first year is for a grant to the 
67.25 	city of East Grand Forks for payment under 
67.26 	a reciprocity agreement for the Red River 
67.27 	State Recreation Area.

67.28	Subd. 6.Fish and Wildlife Management
 		75,320,000
		71,003,000

67.29	Appropriations by Fund
	
67.30		2016
	2017
	
67.31	Natural Resources
	1,908,000
	1,912,000
	
67.32	Game and Fish
	73,412,000
	69,091,000
	
67.33 	$8,167,000 the first year and $8,167,000 
67.34 	the second year are from the heritage 
67.35 	enhancement account in the game and fish 
68.1 	fund only for activities specified in Minnesota 
68.2 	Statutes, section 297A.94, paragraph (e), 
68.3 	clause (1). Notwithstanding Minnesota 
68.4 	Statutes, section 297A.94, five percent of 
68.5 	this appropriation may be used for expanding 
68.6 	hunter and angler recruitment and retention.
68.7 	$5,000,000 the first year from the game 
68.8 	and fish fund is for trap, skeet, and archery 
68.9 	shooting sports facility grants under 
68.10 	Minnesota Statutes, section 87A.10. This is 
68.11 	a onetime appropriation and is available until 
68.12 	June 30, 2018.
68.13 	Notwithstanding Minnesota Statutes, section 
68.14 	84.943, $13,000 the first year and $13,000 
68.15 	the second year from the critical habitat 
68.16 	private sector matching account may be used 
68.17 	to publicize the critical habitat license plate 
68.18 	match program.

68.19	Subd. 7.Enforcement
 		39,313,000
		38,528,000

68.20	Appropriations by Fund
	
68.21		2016
	2017
	
68.22	General
	4,985,000
	4,386,000
	
68.23	Natural Resources
	10,095,000
	10,193,000
	
68.24	Game and Fish
	24,133,000
	23,849,000
	
68.25	Remediation
	100,000
	100,000
	
68.26 	$870,000 the first year and $130,000 the 
68.27 	second year from the general fund and 
68.28 	$1,330,000 the first year and $220,000 the 
68.29 	second year from the game and fish fund are 
68.30 	for aviation services. This appropriation is 
68.31 	onetime.
68.32 	$1,718,000 the first year and $1,718,000 the 
68.33 	second year are from the general fund for 
68.34 	enforcement efforts to prevent the spread of 
68.35 	aquatic invasive species.
69.1 	$1,520,000 the first year and $1,563,000 
69.2 	the second year are from the heritage 
69.3 	enhancement account in the game and 
69.4 	fish fund for only the purposes specified 
69.5 	in Minnesota Statutes, section 297A.94, 
69.6 	paragraph (e), clause (1). The base for these 
69.7 	purposes in fiscal year 2018 and thereafter is 
69.8 	$1,590,000.
69.9 	$1,082,000 the first year and $1,082,000 the 
69.10 	second year are from the water recreation 
69.11 	account in the natural resources fund for 
69.12 	grants to counties for boat and water safety. 
69.13 	Any unencumbered balance does not cancel 
69.14 	at the end of the first year and is available for 
69.15 	the second year.
69.16 	$315,000 the first year and $315,000 the 
69.17 	second year are from the snowmobile 
69.18 	trails and enforcement account in the 
69.19 	natural resources fund for grants to local 
69.20 	law enforcement agencies for snowmobile 
69.21 	enforcement activities. Any unencumbered 
69.22 	balance does not cancel at the end of the first 
69.23 	year and is available for the second year.
69.24 	$250,000 the first year and $250,000 
69.25 	the second year are from the all-terrain 
69.26 	vehicle account for grants to qualifying 
69.27 	organizations to assist in safety and 
69.28 	environmental education and monitoring 
69.29 	trails on public lands under Minnesota 
69.30 	Statutes, section 84.9011. Grants issued 
69.31 	under this paragraph must be issued through 
69.32 	a formal agreement with the organization. 
69.33 	By December 15 each year, an organization 
69.34 	receiving a grant under this paragraph shall 
69.35 	report to the commissioner with details on 
70.1 	expenditures and outcomes from the grant. 
70.2 	Of this appropriation, $25,000 each year 
70.3 	is for administration of these grants. Any 
70.4 	unencumbered balance does not cancel at the 
70.5 	end of the first year and is available for the 
70.6 	second year.
70.7 	$510,000 the first year and $510,000 
70.8 	the second year are from the natural 
70.9 	resources fund for grants to county law 
70.10 	enforcement agencies for off-highway 
70.11 	vehicle enforcement and public education 
70.12 	activities based on off-highway vehicle use 
70.13 	in the county. Of this amount, $498,000 each 
70.14 	year is from the all-terrain vehicle account; 
70.15 	$11,000 each year is from the off-highway 
70.16 	motorcycle account; and $1,000 each year 
70.17 	is from the off-road vehicle account. The 
70.18 	county enforcement agencies may use 
70.19 	money received under this appropriation 
70.20 	to make grants to other local enforcement 
70.21 	agencies within the county that have a high 
70.22 	concentration of off-highway vehicle use. 
70.23 	Of this appropriation, $25,000 each year 
70.24 	is for administration of these grants. Any 
70.25 	unencumbered balance does not cancel at the 
70.26 	end of the first year and is available for the 
70.27 	second year.

70.28	Subd. 8.Operations Support
 		1,070,000
		1,070,000

70.29	Appropriations by Fund
	
70.30		2016
	2017
	
70.31	General
	750,000
	750,000
	
70.32	Natural Resources
	320,000
	320,000
	
70.33 	$320,000 the first year and $320,000 the 
70.34 	second year are from the natural resources 
70.35 	fund for grants to be divided equally between 
70.36 	the city of St. Paul for the Como Park Zoo 
71.1 	and Conservatory and the city of Duluth 
71.2 	for the Duluth Zoo. This appropriation 
71.3 	is from the revenue deposited to the fund 
71.4 	under Minnesota Statutes, section 297A.94, 
71.5 	paragraph (e), clause (5).
71.6 	$500,000 each year is for legal costs related 
71.7 	to water management. This is a onetime 
71.8 	appropriation and is available until June 30, 
71.9 	2018.
71.10 	Money appropriated in this section may not 
71.11 	be spent on a new contract for a call center 
71.12 	that is located outside the state of Minnesota.

71.13
71.14	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	13,959,000
	$
	13,133,000
	
71.15 	$3,423,000 the first year and $3,423,000 the 
71.16 	second year are for natural resources block 
71.17 	grants to local governments. Grants must be 
71.18 	matched with a combination of local cash or 
71.19 	in-kind contributions. The base grant portion 
71.20 	related to water planning must be matched 
71.21 	by an amount as specified by Minnesota 
71.22 	Statutes, section 103B.3369. The board may 
71.23 	reduce the amount of the natural resources 
71.24 	block grant to a county by an amount equal to 
71.25 	any reduction in the county's general services 
71.26 	allocation to a soil and water conservation 
71.27 	district from the county's previous year 
71.28 	allocation when the board determines that 
71.29 	the reduction was disproportionate.
71.30 	$3,116,000 the first year and $3,116,000 the 
71.31 	second year are for grants to soil and water 
71.32 	conservation districts for general purposes, 
71.33 	nonpoint engineering, and implementation of 
71.34 	the reinvest in Minnesota reserve program. 
71.35 	Expenditures may be made from these 
72.1 	appropriations for supplies and services 
72.2 	benefiting soil and water conservation 
72.3 	districts. Any district receiving a grant under 
72.4 	this paragraph shall maintain a Web page that 
72.5 	publishes, at a minimum, its annual report, 
72.6 	annual audit, annual budget, and meeting 
72.7 	notices.
72.8 	$1,560,000 the first year and $1,560,000 the 
72.9 	second year are for the following cost-share 
72.10 	programs:
72.11 	(1) $260,000 each year is for feedlot water 
72.12 	quality grants for feedlots under 300 animal 
72.13 	units and nutrient and manure management 
72.14 	projects in watersheds where there are 
72.15 	impaired waters;
72.16 	(2) $1,200,000 each year is for soil and 
72.17 	water conservation district cost-sharing 
72.18 	contracts for perennially vegetated riparian 
72.19 	buffers, erosion control, water retention 
72.20 	and treatment, and other high-priority 
72.21 	conservation practices; and
72.22 	(3) $100,000 each year is for county 
72.23 	cooperative weed management programs and 
72.24 	to restore native plants in selected invasive 
72.25 	species management sites by providing local 
72.26 	native seeds and plants to landowners for 
72.27 	implementation.
72.28 	$800,000 the first year and $750,000 
72.29 	the second year are for implementation, 
72.30 	enforcement, and oversight of the Wetland 
72.31 	Conservation Act.
72.32 	$166,000 the first year and $166,000 
72.33 	the second year are to provide technical 
72.34 	assistance to local drainage management 
73.1 	officials and for the costs of the Drainage 
73.2 	Work Group.
73.3 	$100,000 the first year and $100,000 
73.4 	the second year are for a grant to the 
73.5 	Red River Basin Commission for water 
73.6 	quality and floodplain management, 
73.7 	including administration of programs. This 
73.8 	appropriation must be matched by nonstate 
73.9 	funds. If the appropriation in either year is 
73.10 	insufficient, the appropriation in the other 
73.11 	year is available for it.
73.12 	$120,000 the first year and $120,000 
73.13 	the second year are for grants to Area 
73.14 	II Minnesota River Basin Projects for 
73.15 	floodplain management.
73.16 	Notwithstanding Minnesota Statutes, section 
73.17 	103C.501, the board may shift cost-share 
73.18 	funds in this section and may adjust the 
73.19 	technical and administrative assistance 
73.20 	portion of the grant funds to leverage 
73.21 	federal or other nonstate funds or to address 
73.22 	high-priority needs identified in local water 
73.23 	management plans or comprehensive water 
73.24 	management plans.
73.25 	$750,000 the first year is for purposes of 
73.26 	Minnesota Statutes, section 103F.519. This 
73.27 	appropriation is onetime and is available 
73.28 	until June 30, 2017.
73.29 	The appropriations for grants in this section 
73.30 	are available until June 30, 2019. If an 
73.31 	appropriation for grants in either year is 
73.32 	insufficient, the appropriation in the other 
73.33 	year is available for it.

73.34	Sec. 5. METROPOLITAN COUNCIL
 	$
	8,540,000
	$
	8,540,000

74.1	Appropriations by Fund
	
74.2		2016
	2017
	
74.3	General
	2,870,000
	2,870,000
	
74.4	Natural Resources
	5,670,000
	5,670,000
	
74.5 	$2,870,000 the first year and $2,870,000 the 
74.6 	second year are for metropolitan area regional 
74.7 	parks operation and maintenance according 
74.8 	to Minnesota Statutes, section 473.351.
74.9 	$5,670,000 the first year and $5,670,000 the 
74.10 	second year are from the natural resources 
74.11 	fund for metropolitan area regional parks 
74.12 	and trails maintenance and operations. This 
74.13 	appropriation is from the revenue deposited 
74.14 	in the natural resources fund under Minnesota 
74.15 	Statutes, section 297A.94, paragraph (e), 
74.16 	clause (3).

74.17
74.18	Sec. 6. CONSERVATION CORPS 
MINNESOTA
 	$
	945,000
	$
	945,000

74.19	Appropriations by Fund
	
74.20		2016
	2017
	
74.21	General
	455,000
	455,000
	
74.22	Natural Resources
	490,000
	490,000
	
74.23 	Conservation Corps Minnesota may receive 
74.24 	money appropriated from the natural 
74.25 	resources fund under this section only 
74.26 	as provided in an agreement with the 
74.27 	commissioner of natural resources.

74.28	Sec. 7. ZOOLOGICAL BOARD
 	$
	8,410,000
	$
	8,410,000

74.29	Appropriations by Fund
	
74.30		2016
	2017
	
74.31	General
	8,250,000
	8,250,000
	
74.32	Natural Resources
	160,000
	160,000
	
74.33 	$160,000 the first year and $160,000 the 
74.34 	second year are from the natural resources 
75.1 	fund from the revenue deposited under 
75.2 	Minnesota Statutes, section 297A.94, 
75.3 	paragraph (e), clause (5).

75.4	Sec. 8. SCIENCE MUSEUM
 	$
	1,079,000
	$
	1,079,000

75.5	Sec. 9.REPAYMENT; TRANSFER
 					
75.6 	The commissioner of management and 
75.7 	budget shall transfer $14,000,000 in fiscal 
75.8 	year 2018 and $14,000,000 in fiscal year 
75.9 	2019 from the general fund to the closed 
75.10 	landfill investment fund created in Minnesota 
75.11 	Statutes, section 115B.421.

75.12 	ARTICLE 4
75.13 	ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

75.14 	Section 1. Minnesota Statutes 2014, section 13.7411, subdivision 8, is amended to read:
75.15 		Subd. 8.Pollution Control Agency. (a) Hazardous waste generators. 
75.16 	Information provided by hazardous waste generators under section 473.151 and for which 
75.17 	confidentiality is claimed is governed by section 116.075, subdivision 2.
75.18 	(b) Priority chemicals. Trade secret information and other information submitted 
75.19 	to the Pollution Control Agency related to priority chemicals in children's products are 
75.20 	governed by section 116.9408. 

75.21 	EFFECTIVE DATE. This section is effective July 1, 2016.

75.22 	Sec. 2. Minnesota Statutes 2014, section 84.415, subdivision 7, is amended to read:
75.23 		Subd. 7.Existing road right-of-way;Application fee exemption. (a) A utility 
75.24 	license for crossing public lands or public waters is exempt from all application fees 
75.25 	specified in this section and in rules adopted under this section when the utility crossing is 
75.26 	on an existing right-of-way of a public road.
75.27 	(b) This subdivision does not apply to electric power lines, cables, or conduits 100 
75.28 	kilovolts or greater or to main pipelines for gas, liquids, or solids in suspension.

75.29 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2014.

76.1 	Sec. 3. [84.69] NATURAL RESOURCES CONSERVATION EASEMENT 
76.2 	STEWARDSHIP ACCOUNT.
76.3 		Subdivision 1.Account established; sources. The natural resources conservation 
76.4 	easement stewardship account is created in the special revenue fund. The account consists 
76.5 	of money credited to the account and interest and other earnings on money in the account. 
76.6 	The State Board of Investment must manage the account to maximize long-term gain. The 
76.7 	following revenue must be deposited in the natural resources conservation easement 
76.8 	stewardship account:
76.9 	(1) contributions to the account or specified for any purpose of the account;
76.10 	(2) contributions under subdivision 3; section 84.66, subdivision 11; or other 
76.11 	applicable law;
76.12 	(3) money appropriated for any of the purposes described in subdivision 2;
76.13 	(4) money appropriated for monitoring and enforcement of easements and earnings 
76.14 	on the money appropriated that revert to the state under section 97A.056, subdivision 
76.15 	17, or other applicable law; and
76.16 	(5) gifts under section 84.085 for conservation easement stewardship.
76.17 		Subd. 2.Appropriation; purposes of account. Five percent of the balance on 
76.18 	July 1 of each year in the natural resources conservation easement stewardship account 
76.19 	is annually appropriated to the commissioner of natural resources and may be spent 
76.20 	only to cover the costs of managing conservation easements held by the Department 
76.21 	of Natural Resources, including costs associated with monitoring, landowner contacts, 
76.22 	records storage and management, processing landowner notices, requests for approval 
76.23 	or amendments, enforcement, and legal services associated with conservation easement 
76.24 	management activities.
76.25 		Subd. 3.Financial contributions. The commissioner shall seek a financial 
76.26 	contribution to the natural resources conservation easement stewardship account for each 
76.27 	conservation easement acquired by or assigned to the Department of Natural Resources. 
76.28 	Unless otherwise provided by law, the commissioner shall determine the amount of the 
76.29 	contribution, which must be an amount calculated to earn sufficient money to meet 
76.30 	the costs of managing the conservation easement at a level that neither significantly 
76.31 	overrecovers nor underrecovers the costs. In determining the amount of the financial 
76.32 	contribution, the commissioner shall consider:
76.33 	(1) the estimated annual staff hours needed to manage the conservation easement, 
76.34 	taking into consideration factors such as easement type, size, location, and complexity;
76.35 	(2) the average hourly wages for the class or classes of employees expected to 
76.36 	manage the conservation easement;
77.1 	(3) the estimated annual travel expenses to manage the conservation easement;
77.2 	(4) the estimated annual miscellaneous costs to manage the conservation easement, 
77.3 	including supplies and equipment, information technology support, and aerial flyovers;
77.4 	(5) the estimated annualized cost of legal services, including the cost to enforce the 
77.5 	easement in the event of a violation; and
77.6 	(6) the expected rate of return on investments in the account.

77.7 	EFFECTIVE DATE. Subdivisions 1 and 2 of this section are effective the day 
77.8 	following final enactment. Subdivision 3 of this section is effective for conservation 
77.9 	easements acquired with money appropriated on or after July 1, 2015, and for acquisitions 
77.10 	of conservation easements by gift that are initiated on or after July 1, 2015.

77.11 	Sec. 4. Minnesota Statutes 2014, section 84.82, subdivision 2a, is amended to read:
77.12 		Subd. 2a.Nontrail use registration. A snowmobile may be registered for nontrail 
77.13 	use. A snowmobile registered under this subdivision may not be operated on a state or 
77.14 	grant-in-aid snowmobile trail. The fee for a nontrail use registration of a snowmobile with 
77.15 	an engine displacement that is greater than 125 cubic centimeters is $45 for three years. A 
77.16 	nontrail use registration is not transferable. In addition to other penalties prescribed by 
77.17 	law, the penalty for violation of this subdivision is immediate revocation of the nontrail 
77.18 	use registration. The commissioner shall ensure that the registration sticker provided for 
77.19 	limited nontrail use is of a different color and is distinguishable from other snowmobile 
77.20 	registration and state trail stickers provided.

77.21 	Sec. 5. Minnesota Statutes 2014, section 84.82, subdivision 6, is amended to read:
77.22 		Subd. 6.Exemptions. Registration is not required under this section for:
77.23 	(1) a snowmobile owned and used by the United States, an Indian tribal government, 
77.24 	another state, or a political subdivision thereof;
77.25 	(2) a snowmobile registered in a country other than the United States temporarily 
77.26 	used within this state;
77.27 	(3) a snowmobile that is covered by a valid license of another state and has not been 
77.28 	within this state for more than 30 consecutive days or that is registered by an Indian tribal 
77.29 	government to a tribal member and has not been outside the tribal reservation boundary 
77.30 	for more than 30 consecutive days;
77.31 	(4) a snowmobile used exclusively in organized track racing events;
77.32 	(5) a snowmobile in transit by a manufacturer, distributor, or dealer;
77.33 	(6) a snowmobile at least 15 years old in transit by an individual for use only on 
77.34 	land owned or leased by the individual; or
78.1 	(7) a snowmobile while being used to groom a state or grant-in-aid trail; or
78.2 	(8) a snowmobile with an engine displacement that is 125 cubic centimeters or less 
78.3 	and the snowmobile is not operated on a state or grant-in-aid trail.

78.4 	Sec. 6. Minnesota Statutes 2014, section 84.92, subdivision 8, is amended to read:
78.5 		Subd. 8.All-terrain vehicle or vehicle.  "All-terrain vehicle" or "vehicle" means 
78.6 	a motorized vehicle of with: (1) not less than three, but not more than six low pressure 
78.7 	or non-pneumatic tires, that is limited in engine displacement of less than 1,000 cubic 
78.8 	centimeters and; (2) a total dry weight of 2,000 pounds or less; and (3) a total width 
78.9 	from outside of tire rim to outside of tire rim that is 65 inches or less. All-terrain vehicle  
78.10 	includes a class 1 all-terrain vehicle and class 2 all-terrain vehicle. All-terrain vehicle does 
78.11 	not include a golf cart, mini-truck, dune buggy, or go-cart or a vehicle designed and used 
78.12 	specifically for lawn maintenance, agriculture, logging, or mining purposes.

78.13 	Sec. 7. Minnesota Statutes 2014, section 84.92, subdivision 9, is amended to read:
78.14 		Subd. 9.Class 1 all-terrain vehicle. "Class 1 all-terrain vehicle" means an 
78.15 	all-terrain vehicle that has a total dry weight of less than 1,200 pounds width from outside 
78.16 	of tire rim to outside of tire rim that is 50 inches or less.

78.17 	Sec. 8. Minnesota Statutes 2014, section 84.92, subdivision 10, is amended to read:
78.18 		Subd. 10.Class 2 all-terrain vehicle. "Class 2 all-terrain vehicle" means an 
78.19 	all-terrain vehicle that has a total dry weight of 1,200 to 1,800 pounds width from outside 
78.20 	of tire rim to outside of tire rim that is greater than 50 inches but not more than 65 inches.

78.21 	Sec. 9. Minnesota Statutes 2014, section 84.922, subdivision 5, is amended to read:
78.22 		Subd. 5.Fees for registration. (a) The fee for a three-year registration of 
78.23 	an all-terrain vehicle under this section, other than those registered by a dealer or 
78.24 	manufacturer under paragraph (b) or (c), is:
78.25 	(1) for public use, $45 for class 1 all-terrain vehicles and $48 for class 2 all-terrain 
78.26 	vehicles;
78.27 	(2) for private use, $6; and
78.28 	(3) for a duplicate or transfer, $4.
78.29 	(b) The total registration fee for all-terrain vehicles owned by a dealer and operated for 
78.30 	demonstration or testing purposes is $50 per year. Dealer registrations are not transferable.
79.1 	(c) The total registration fee for all-terrain vehicles owned by a manufacturer and 
79.2 	operated for research, testing, experimentation, or demonstration purposes is $150 per 
79.3 	year. Manufacturer registrations are not transferable.
79.4 	(d) The onetime fee for registration of an all-terrain vehicle under subdivision 2b is $6.
79.5 	(e) The fees collected under this subdivision must be credited to the all-terrain 
79.6 	vehicle account.

79.7 	Sec. 9. Minnesota Statutes 2014, section 84D.01, is amended by adding a subdivision 
79.8 	to read:
79.9 		Subd. 1a.Aquatic invasive species affirmation. "Aquatic invasive species 
79.10 	affirmation" means an affirmation of the summary of the aquatic invasive species laws of 
79.11 	this chapter that is part of watercraft licenses and nonresident fishing licenses, as provided 
79.12 	in section 84D.106.

79.13 	EFFECTIVE DATE. This section is effective January 1, 2016.

79.14 	Sec. 10. [84D.106] AQUATIC INVASIVE SPECIES AFFIRMATION.
79.15 	Aquatic invasive species affirmation is required for all:
79.16 	(1) watercraft licenses issued under section 86B.401; and
79.17 	(2) all nonresident fishing licenses, as provided in section 97C.301, subdivision 2a.

79.18 	EFFECTIVE DATE. Clause (1) of this section is effective January 1, 2016. Clause 
79.19 	(2) of this section is effective March 1, 2016.

79.20 	Sec. 11. Minnesota Statutes 2014, section 84D.13, subdivision 5, is amended to read:
79.21 		Subd. 5.Civil penalties. (a) A civil citation issued under this section must impose 
79.22 	the following penalty amounts:
79.23 	(1) for transporting aquatic macrophytes in violation of section 84D.09, $100;
79.24 	(2) for placing or attempting to place into waters of the state water-related equipment 
79.25 	that has aquatic macrophytes attached, $200;
79.26 	(3) for unlawfully possessing or transporting a prohibited invasive species other 
79.27 	than an aquatic macrophyte, $500;
79.28 	(4) for placing or attempting to place into waters of the state water-related equipment 
79.29 	that has prohibited invasive species attached when the waters are not listed by the 
79.30 	commissioner as being infested with that invasive species, $500;
79.31 	(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as 
79.32 	prescribed by rule, Eurasian water milfoil, $100;
80.1 	(6) for failing to have drain plugs or similar devices removed or opened while 
80.2 	transporting water-related equipment or for failing to remove plugs, open valves, and 
80.3 	drain water from water-related equipment, other than marine sanitary systems, before 
80.4 	leaving waters of the state, $100; and
80.5 	(7) for transporting infested water off riparian property without a permit as required 
80.6 	by rule, $200; and
80.7 	(8) for failing to have aquatic invasive species affirmation displayed or available for 
80.8 	inspection as provided in sections 86B.401 and 97C.301, subdivision 2a, $25.
80.9 	(b) A civil citation that is issued to a person who has one or more prior convictions 
80.10 	or final orders for violations of this chapter is subject to twice the penalty amounts listed 
80.11 	in paragraph (a).

80.12 	Sec. 12. Minnesota Statutes 2014, section 84D.15, subdivision 3, is amended to read:
80.13 		Subd. 3.Use of money in account. Money credited to the invasive species account 
80.14 	in subdivision 2 shall be used for management of invasive species and implementation of 
80.15 	this chapter as it pertains to invasive species, including control, public awareness, law 
80.16 	enforcement, assessment and monitoring, management planning, habitat improvements, 
80.17 	and research.

80.18 	Sec. 13. Minnesota Statutes 2014, section 85.015, is amended by adding a subdivision 
80.19 	to read:
80.20 		Subd. 6a.Mississippi Blufflands Trail; Goodhue and Wabasha Counties. (a) 
80.21 	The Mississippi Blufflands Trail shall originate at the Cannon Valley Trail and thence 
80.22 	extend generally southeasterly along the Mississippi River through Frontenac State Park in 
80.23 	Goodhue County and continue through Goodhue and Wabasha Counties to the city of Lake 
80.24 	City, and there terminate. The trail shall include connections to the Rattlesnake Bluff Trail.
80.25 	(b) The trail shall be developed primarily for riding and hiking.
80.26 	(c) In establishing, developing, maintaining, and operating the trail, the 
80.27 	commissioner shall cooperate with local units of government and private individuals and 
80.28 	groups whenever feasible.

80.29 	Sec. 14. Minnesota Statutes 2014, section 85.055, subdivision 1, is amended to read:
80.30 		Subdivision 1.Fees. The fee for state park permits for:
80.31 	(1) an annual use of state parks is $25 $30;
80.32 	(2) a second or subsequent vehicle state park permit is $18;
80.33 	(3) a state park permit valid for one day is $5 $6;
81.1 	(4) a daily vehicle state park permit for groups is $3;
81.2 	(5) an annual permit for motorcycles is $20;
81.3 	(6) an employee's state park permit is without charge; and
81.4 	(7) a state park permit for persons with disabilities under section 85.053, subdivision 
81.5 	7, paragraph (a), clauses (1) to (3), is $12.
81.6 	The fees specified in this subdivision include any sales tax required by state law.

81.7 	Sec. 15. Minnesota Statutes 2014, section 85.32, subdivision 1, is amended to read:
81.8 		Subdivision 1.Areas marked. The commissioner of natural resources is authorized 
81.9 	in cooperation with local units of government and private individuals and groups when 
81.10 	feasible to mark state water trails on the Little Fork, Big Fork, Minnesota, St. Croix, 
81.11 	Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, St. Louis, Pine, 
81.12 	Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift County, Watonwan, 
81.13 	Cottonwood, Whitewater, Chippewa from Benson in Swift County to Montevideo in 
81.14 	Chippewa County, Long Prairie, Red River of the North, Sauk, Otter Tail, Redwood, 
81.15 	Blue Earth, Cedar, Shell Rock, and Crow Rivers which have historic and scenic values 
81.16 	and to mark appropriately points of interest, portages, camp sites, and all dams, rapids, 
81.17 	waterfalls, whirlpools, and other serious hazards which are dangerous to canoe, kayak, 
81.18 	and watercraft travelers.

81.19 	Sec. 16. Minnesota Statutes 2014, section 86B.401, subdivision 3, is amended to read:
81.20 		Subd. 3.Licensing. (a) The license agent shall register the watercraft on receiving 
81.21 	an application and the license fee. A license and registration sticker with a registration 
81.22 	number shall be issued and must be affixed to the watercraft as prescribed by the 
81.23 	commissioner of natural resources.
81.24 	(b) A license includes aquatic invasive species affirmation as provided in section 
81.25 	84D.106. The aquatic invasive species affirmation portion of the license must be displayed 
81.26 	with the signed license certificate. The aquatic invasive species affirmation will be 
81.27 	provided with an application for a new, transfer, duplicate, or renewal watercraft license.
81.28 	(c) The license is not valid unless signed by at least one owner.
81.29 	(d) Failure to complete the aquatic invasive species affirmation in this subdivision is 
81.30 	subject to the penalty prescribed in section 84D.13, subdivision 5.

81.31 	EFFECTIVE DATE. This section is effective January 1, 2016.

82.1 	Sec. 17. Minnesota Statutes 2014, section 87A.10, is amended to read:
82.2 	87A.10 TRAP, SKEET, AND ARCHERY SHOOTING SPORTS FACILITY 
82.3 	GRANTS.
82.4 	The commissioner of natural resources shall administer a program to provide 
82.5 	cost-share grants to local recreational shooting clubs or local units of government for up to 
82.6 	50 percent of the costs of developing or rehabilitating trap, skeet, and archery shooting 
82.7 	sports facilities for public use. A facility rehabilitated or developed with a grant under this 
82.8 	section must be open to the general public at reasonable times and for a reasonable fee 
82.9 	on a walk-in basis. The commissioner shall give preference to projects that will provide 
82.10 	the most opportunities for youth.

82.11 	Sec. 18. Minnesota Statutes 2014, section 88.6435, subdivision 4, is amended to read:
82.12 		Subd. 4.Forest bough account; disposition of fees. (a) The forest bough account 
82.13 	is established in the state treasury within the natural resources fund.
82.14 	(b) Fees for permits issued under this section shall must be deposited in the state 
82.15 	treasury and credited to the forest bough account and, except for the electronic licensing 
82.16 	system commission established by the commissioner under section 84.027, subdivision 
82.17 	15, are annually appropriated to the commissioner of natural resources for costs associated 
82.18 	with balsam bough educational special forest product information and education programs 
82.19 	for harvesters and buyers.

82.20 	Sec. 19. Minnesota Statutes 2014, section 90.14, is amended to read:
82.21 	90.14 AUCTION SALE PROCEDURE.
82.22 	(a) All state timber shall be offered and sold by the same unit of measurement as it 
82.23 	was appraised. No tract shall be sold to any person other than the purchaser in whose name 
82.24 	the bid was made. The commissioner may refuse to approve any and all bids received and 
82.25 	cancel a sale of state timber for good and sufficient reasons.
82.26 	(b) The purchaser at any sale of timber shall, immediately upon the approval of the 
82.27 	bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under section 
82.28 	90.101, subdivision 1, pay to the commissioner a down payment of 15 percent of the 
82.29 	appraised value. In case any purchaser fails to make such payment, the purchaser shall be 
82.30 	liable therefor to the state in a civil action, and the commissioner may reoffer the timber for 
82.31 	sale as though no bid or sale under section 90.101, subdivision 1, therefor had been made.
82.32 	(c) In lieu of the scaling of state timber required by this chapter, a purchaser of state 
82.33 	timber may, at the time of payment by the purchaser to the commissioner of 15 percent 
82.34 	of the appraised value, elect in writing on a form prescribed by the attorney general to 
83.1 	purchase a permit based solely on the appraiser's estimate of the volume of timber described 
83.2 	in the permit, provided that the commissioner has expressly designated the availability of 
83.3 	such option for that tract on the list of tracts available for sale as required under section 
83.4 	90.101. A purchaser who elects in writing on a form prescribed by the attorney general 
83.5 	to purchase a permit based solely on the appraiser's estimate of the volume of timber 
83.6 	described on the permit does not have recourse to the provisions of section 90.281.
83.7 	(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall 
83.8 	be awarded to the high bidder, who shall pay to the commissioner a down payment of 15 
83.9 	percent of the appraised value that must be received or postmarked within 14 days of 
83.10 	the date of the sealed bid opening. If a purchaser fails to make the down payment, the 
83.11 	purchaser is liable for the down payment to the state and the commissioner may offer the 
83.12 	timber for sale to the next highest bidder as though no higher bid had been made.
83.13 	(e) Except as otherwise provided by law, at the time the purchaser signs a permit 
83.14 	issued under section 90.151, the commissioner shall require the purchaser to make a bid 
83.15 	guarantee payment to the commissioner in an amount equal to 15 percent of the total 
83.16 	purchase price of the permit less the down payment amount required by paragraph (b) 
83.17 	for any bid increase in excess of $5,000 $10,000 of the appraised value. If a required bid 
83.18 	guarantee payment is not submitted with the signed permit, no harvesting may occur, the 
83.19 	permit cancels, and the down payment for timber forfeits to the state. The bid guarantee 
83.20 	payment forfeits to the state if the purchaser and successors in interest fail to execute 
83.21 	an effective permit.

83.22 	EFFECTIVE DATE. This section is effective June 1, 2015, and applies to permits 
83.23 	sold on or after that date.

83.24 	Sec. 20. Minnesota Statutes 2014, section 90.193, is amended to read:
83.25 	90.193 EXTENSION OF TIMBER PERMITS.
83.26 	The commissioner may, in the case of an exceptional circumstance beyond the 
83.27 	control of the timber permit holder which makes it unreasonable, impractical, and not 
83.28 	feasible to complete cutting and removal under the permit within the time allowed, grant 
83.29 	one regular extension for one year. A written request for the regular extension must be 
83.30 	received by the commissioner before the permit expires. The request must state the reason 
83.31 	the extension is necessary and be signed by the permit holder. An interest rate of eight 
83.32 	five percent may be charged for the period of extension.

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

84.1 	Sec. 22. Minnesota Statutes 2014, section 93.20, subdivision 18, is amended to read:
84.2 		Subd. 18.Schedule 7. Schedule 7. Taconite ore shall be understood to mean a 
84.3 	ferruginous chert or ferruginous slate in the form of compact siliceous rock, in which the 
84.4 	iron oxide is so finely disseminated that substantially all of the iron-bearing particles of 
84.5 	merchantable grade are smaller than 20 mesh.
84.6 	Taconite concentrates shall be understood to mean the merchantable product, suitable 
84.7 	for blast furnace use, which, in accordance with good engineering and metallurgical 
84.8 	practice, has been produced from taconite ore which requires treatment by fine grinding, 
84.9 	magnetic separation, flotation, or some other method or methods other than or in addition 
84.10 	to one or more of the methods specified in schedules 1 to 6, inclusive.
84.11 	On a ton of taconite concentrates averaging in dried iron 40.49 percent or less, the 
84.12 	royalty shall be no less than 11 cents. The royalty rate shall be increased one percent for 
84.13 	each increase of one percent, or fraction thereof, in dried iron analysis.
84.14 	In lieu of payment of such royalty on the taconite concentrates, royalty payments 
84.15 	may be made on the taconite ore as set forth in section 93.201.

84.16 	EFFECTIVE DATE. This section is effective the day following final enactment 
84.17 	and applies to both existing and new leases entered into under this section.

84.18 	Sec. 24. Minnesota Statutes 2014, section 97A.055, subdivision 4b, is amended to read:
84.19 		Subd. 4b.Citizen oversight committees. (a) The commissioner shall appoint 
84.20 	committees of affected persons to review the reports prepared under subdivision 4; review 
84.21 	the proposed work plans and budgets for the coming year; propose changes in policies, 
84.22 	activities, and revenue enhancements or reductions; review other relevant information; 
84.23 	and make recommendations to the legislature and the commissioner for improvements in 
84.24 	the management and use of money in the game and fish fund.
84.25 	(b) The commissioner shall appoint the following committees, each comprised 
84.26 	of at least ten affected persons:
84.27 	(1) a Fisheries Oversight Committee to review fisheries funding and expenditures, 
84.28 	including activities related to trout and salmon stamps and walleye stamps; and
84.29 	(2) a Wildlife Oversight Committee to review wildlife funding and expenditures, 
84.30 	including activities related to migratory waterfowl, pheasant, and wild turkey management 
84.31 	and deer and big game management.
84.32 	(c) The chairs of the Fisheries Oversight Committee and the Wildlife Oversight 
84.33 	Committee, and four additional members from each committee, shall form a Budgetary 
84.34 	Oversight Committee to coordinate the integration of the fisheries and wildlife oversight 
84.35 	committee reports into an annual report to the legislature; recommend changes on a broad 
85.1 	level in policies, activities, and revenue enhancements or reductions; and provide a forum 
85.2 	to address issues that transcend the fisheries and wildlife oversight committees.
85.3 	(d) The Budgetary Oversight Committee shall develop recommendations for a 
85.4 	biennial budget plan and report for expenditures on game and fish activities. By August 15 
85.5 	of each even-numbered year, the committee shall submit the budget plan recommendations 
85.6 	to the commissioner and to the senate and house of representatives committees with 
85.7 	jurisdiction over natural resources finance.
85.8 	(e) The chairs of the Fisheries Oversight Committee and the Wildlife Oversight 
85.9 	Committee shall be chosen by their respective committees. The chair of the Budgetary 
85.10 	Oversight Committee shall be appointed by the commissioner and may not be the chair of 
85.11 	either of the other oversight committees.
85.12 	(f) The Budgetary Oversight Committee may make recommendations to the 
85.13 	commissioner and to the senate and house of representatives committees with jurisdiction 
85.14 	over natural resources finance for outcome goals from expenditures.
85.15 	(g) The committees authorized under this subdivision are not advisory councils or 
85.16 	committees governed by section 15.059 and are not subject to section 15.059. Committee 
85.17 	members appointed by the commissioner may request reimbursement for mileage 
85.18 	expenses in the same manner and amount as authorized by the commissioner's plan 
85.19 	adopted under section 43A.18, subdivision 2. Committee members must not receive daily 
85.20 	compensation for oversight activities. The Fisheries Oversight Committee, the Wildlife 
85.21 	Oversight Committee, and the Budgetary Oversight Committee expire June 30, 2015 2020.

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

85.23 	Sec. 25. Minnesota Statutes 2014, section 97B.301, is amended by adding a 
85.24 	subdivision to read:
85.25 		Subd. 9.Residents age 84 or over may take deer of either sex. A resident age 84 
85.26 	or over may take a deer of either sex. This subdivision does not authorize the taking of an 
85.27 	antlerless deer by another member of a party under subdivision 3.

85.28 	Sec. 26. Minnesota Statutes 2014, section 97C.301, is amended by adding a 
85.29 	subdivision to read:
85.30 		Subd. 2a.Aquatic invasive species affirmation. (a) A nonresident license to 
85.31 	take fish issued under section 97A.475, subdivision 7, includes aquatic invasive species 
85.32 	affirmation as provided in section 84D.106.
85.33 	(b) The aquatic invasive species affirmation portion of the license must be displayed 
85.34 	with the signed nonresident license to take fish issued under section 97A.475, subdivision 
86.1 	7. The aquatic invasive species affirmation will be provided at the time of purchase of a 
86.2 	new or duplicate nonresident license.
86.3 	(c) If a license is purchased online, the aquatic invasive species affirmation may be 
86.4 	completed electronically as part of the online sales process, and the electronic record of 
86.5 	the license sale will be sufficient for documenting the affirmation.
86.6 	(d) Failure to complete the aquatic invasive species affirmation in this subdivision is 
86.7 	subject to the penalty prescribed in section 84D.13, subdivision 5.

86.8 	EFFECTIVE DATE. This section is effective March 1, 2016.

86.9 	Sec. 27. Minnesota Statutes 2014, section 103B.101, is amended by adding a 
86.10 	subdivision to read:
86.11 		Subd. 16.Wetland stakeholder coordination. The board shall work with 
86.12 	wetland stakeholders to foster mutual understanding and provide recommendations for 
86.13 	improvements to the management of wetlands and related land and water resources, 
86.14 	including recommendations for updating the Wetland Conservation Act, developing 
86.15 	an in-lieu fee program as defined in section 103G.005, subdivision 10g, and related 
86.16 	provisions. The board may convene informal working groups or work teams to provide 
86.17 	information and education and to develop recommendations.

86.18 	Sec. 28. [103B.103] EASEMENT STEWARDSHIP ACCOUNTS.
86.19 		Subdivision 1.Accounts established; sources. (a) The water and soil conservation 
86.20 	easement stewardship account and the mitigation easement stewardship account are 
86.21 	created in the special revenue fund. The accounts consist of money credited to the 
86.22 	accounts and interest and other earnings on money in the accounts. The State Board of 
86.23 	Investment must manage the accounts to maximize long-term gain.
86.24 	(b) Revenue from contributions and money appropriated for any purposes of the 
86.25 	account as described in subdivision 2 must be deposited in the water and soil conservation 
86.26 	easement stewardship account. Revenue from contributions, wetland banking fees 
86.27 	designated for stewardship purposes by the board, easement stewardship payments 
86.28 	authorized under subdivision 3, and money appropriated for any purposes of the account 
86.29 	as described in subdivision 2 must be deposited in the mitigation easement stewardship 
86.30 	account.
86.31 		Subd. 2.Appropriation; purposes of accounts. Five percent of the balance on 
86.32 	July 1 each year in the water and soil conservation easement stewardship account and 
86.33 	five percent of the balance on July 1 each year in the mitigation easement stewardship 
86.34 	account are annually appropriated to the board and may be spent only to cover the costs 
87.1 	of managing easements held by the board, including costs associated with monitoring, 
87.2 	landowner contacts, records storage and management, processing landowner notices, 
87.3 	requests for approval or amendments, enforcement, and legal services associated with 
87.4 	easement management activities.
87.5 		Subd. 3.Financial contributions. The board shall seek a financial contribution 
87.6 	to the water and soil conservation easement stewardship account for each conservation 
87.7 	easement acquired by the board. The board shall seek a financial contribution or assess an 
87.8 	easement stewardship payment to the mitigation easement stewardship account for each 
87.9 	wetland banking easement acquired by the board. Unless otherwise provided by law, 
87.10 	the board shall determine the amount of the contribution or payment, which must be an 
87.11 	amount calculated to earn sufficient money to meet the costs of managing the easement at 
87.12 	a level that neither significantly overrecovers nor underrecovers the costs. In determining 
87.13 	the amount of the financial contribution, the board shall consider:
87.14 	(1) the estimated annual staff hours needed to manage the conservation easement, 
87.15 	taking into consideration factors such as easement type, size, location, and complexity;
87.16 	(2) the average hourly wages for the class or classes of state and local employees 
87.17 	expected to manage the easement;
87.18 	(3) the estimated annual travel expenses to manage the easement;
87.19 	(4) the estimated annual miscellaneous costs to manage the easement, including 
87.20 	supplies and equipment, information technology support, and aerial flyovers;
87.21 	(5) the estimated annualized costs of legal services, including the cost to enforce the 
87.22 	easement in the event of a violation; and 
87.23 	(6) the expected rate of return on investments in the account.

87.24 	EFFECTIVE DATE. Subdivisions 1 and 2 of this section are effective the day 
87.25 	following final enactment. Subdivision 3 of this section is effective for conservation 
87.26 	easements acquired with money appropriated on or after July 1, 2015, and for acquisitions 
87.27 	of conservation easements by gift or as a condition of approval for wetland mitigation as 
87.28 	provided in Minnesota Rules, chapter 8420, that are initiated on or after July 1, 2015.

87.29 	Sec. 29. Minnesota Statutes 2014, section 103B.3355, is amended to read:
87.30 	103B.3355 WETLAND FUNCTIONS FOR DETERMINING PUBLIC 
87.31 	VALUES.
87.32 	(a) The public values of wetlands must be determined based upon the functions of 
87.33 	wetlands for:
88.1 	(1) water quality, including filtering of pollutants to surface and groundwater, 
88.2 	utilization of nutrients that would otherwise pollute public waters, trapping of sediments, 
88.3 	shoreline protection, and utilization of the wetland as a recharge area for groundwater;
88.4 	(2) floodwater and storm water retention, including the potential for flooding in 
88.5 	the watershed, the value of property subject to flooding, and the reduction in potential 
88.6 	flooding by the wetland;
88.7 	(3) public recreation and education, including hunting and fishing areas, wildlife 
88.8 	viewing areas, and nature areas;
88.9 	(4) commercial uses, including wild rice and cranberry growing and harvesting 
88.10 	and aquaculture;
88.11 	(5) fish, wildlife, native plant habitats;
88.12 	(6) low-flow augmentation;
88.13 	(7) carbon sequestration; and
88.14 	(8) other public uses.
88.15 	(b) The Board of Water and Soil Resources, in consultation with the commissioners of 
88.16 	natural resources and agriculture and local government units, shall adopt rules establishing:
88.17 	(1) scientific methodologies for determining the functions of wetlands; and
88.18 	(2) criteria for determining the resulting public values of wetlands.
88.19 	(c) The methodologies and criteria established under this section or other 
88.20 	methodologies and criteria that include the functions in paragraph (a) and are approved 
88.21 	by the board, in consultation with the commissioners of natural resources and agriculture 
88.22 	and local government units, must be used to determine the functions and resulting public 
88.23 	values of wetlands in the state. The functions listed in paragraph (a) are not listed in 
88.24 	order of priority.
88.25 	(d) Public value criteria established or approved by the board under this section do 
88.26 	not apply in areas subject to local comprehensive wetland protection and management 
88.27 	plans established under section 103G.2243.
88.28 	(e) The Board of Water and Soil Resources, in consultation with the commissioners 
88.29 	of natural resources and agriculture and local government units, may must identify regions 
88.30 	areas of the state where preservation, enhancement, restoration, and establishment 
88.31 	of wetlands would have high public value. The board, in consultation with the 
88.32 	commissioners, may must identify high priority wetland regions areas for wetland 
88.33 	replacement using available information relating to the factors listed in paragraph 
88.34 	(a), the historic loss and abundance of wetlands, current applicable state and local 
88.35 	government water management and natural resource plans, and studies using a watershed 
88.36 	approach to identify current and future watershed needs. The board shall notify local 
89.1 	units of government with water planning authority of these high priority regions areas. 
89.2 	Designation of high priority areas is exempt from the rulemaking requirements of chapter 
89.3 	14, and section 14.386 does not apply. Designation of high priority areas is not effective 
89.4 	until 30 days after publication in the State Register.
89.5 	(f) Local units of government, as part of a state-approved comprehensive local 
89.6 	water management plan as defined in section 103B.3363, subdivision 3, a state-approved 
89.7 	comprehensive watershed management plan as defined in section 103B.3363, subdivision 
89.8 	3a, or a state-approved local comprehensive wetland protection and management plan 
89.9 	under section 103G.2243, may identify priority areas for wetland replacement and provide 
89.10 	them for consideration under paragraph (e).

89.11 	Sec. 30. [103F.519] WORKING LANDS WATERSHED RESTORATION 
89.12 	PROGRAM.
89.13 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
89.14 	have the meanings given.
89.15 	(b) "Advanced biofuel" has the meaning given in section 239.051, subdivision 1a.
89.16 	(c) "Agricultural use" has the meaning given in section 17.81, subdivision 4.
89.17 	(d) "Board" means the Board of Water and Soil Resources.
89.18 	(e) "Perennial crops" means agriculturally produced plants that are known to be 
89.19 	noninvasive and not listed as a noxious weed in Minnesota and that have a life cycle of at 
89.20 	least three years at the location where the plants are being cultivated. Biomass from alfalfa 
89.21 	produced in a two-year rotation is considered a perennial crop.
89.22 		Subd. 2.Establishment. The board shall administer a perennial feedstock program 
89.23 	to incentivize the establishment and maintenance of perennial agricultural crops. The 
89.24 	board shall contract with landowners and give priority to contracts that implement water 
89.25 	protection actions as identified in a completed watershed restoration and protection 
89.26 	strategy developed under section 114D.26.
89.27 		Subd. 3.Eligible land. Land eligible under this section must:
89.28 	(1) have been in agricultural use or have been set aside, enrolled, or diverted under 
89.29 	another federal or state government program for at least two of the last five years before 
89.30 	the date of application; and
89.31 	(2) not be currently set aside, enrolled, or diverted under another federal or state 
89.32 	government program.
89.33 		Subd. 4.Contract terms. (a) The board shall offer a contract rate of no more 
89.34 	than 90 percent of the most recent federal conservation reserve program payment for the 
90.1 	county in which the land is located. The board may make additional payments to assist 
90.2 	with the establishment of perennial crops.
90.3 	(b) Contracts must be at least ten years in duration.
90.4 	(c) Perennial crops grown on lands enrolled under this section may be used for 
90.5 	advanced biofuel feedstock or livestock feed. Perennial plants may be processed in a 
90.6 	manner that utilizes a portion of the plant for livestock. Mechanical harvest is not allowed 
90.7 	before July 1 in any year.
90.8 	(d) The board shall prioritize lands with the highest potential to leverage federal 
90.9 	funding.
90.10 	(e) The board may establish additional contract terms.
90.11 		Subd. 5.Pilot watershed selection. The board may select up to two watersheds in 
90.12 	which to conduct an initial pilot program of up to 100,000 total acres. Project watersheds 
90.13 	must have, as determined by the board:
90.14 	(1) a completed watershed restoration and protection strategy developed under 
90.15 	section 114D.26 or a hydrological simulation program model approved by the Pollution 
90.16 	Control Agency;
90.17 	(2) multiple water quality impairments resulting primarily from agricultural practices;
90.18 	(3) a viable proposed advanced biofuel production facility located within 50 miles 
90.19 	of the perennial feedstock grown under this section; and
90.20 	(4) sufficient additional acres of cropland available for perennial crop production to 
90.21 	adequately supply the proposed advanced biofuel production facility.

90.22 	Sec. 31. Minnesota Statutes 2014, section 103F.612, subdivision 2, is amended to read:
90.23 		Subd. 2.Application. (a) A wetland owner may apply to the county where a 
90.24 	wetland is located for designation of a wetland preservation area in a high priority wetland 
90.25 	area identified in a comprehensive local water plan, as defined in section 103B.3363, 
90.26 	subdivision 3, and located within a high priority wetland region designated by the Board 
90.27 	of Water and Soil Resources, if the county chooses to accept wetland preservation area 
90.28 	applications. The application must be made on forms provided by the board. If a wetland 
90.29 	is located in more than one county, the application must be submitted to the county where 
90.30 	the majority of the wetland is located.
90.31 	(b) The application shall be executed and acknowledged in the manner required 
90.32 	by law to execute and acknowledge a deed and must contain at least the following 
90.33 	information and other information the Board of Water and Soil Resources requires:
91.1 	(1) legal description of the area to be approved, which must include an upland strip 
91.2 	at least 16-1/2 feet in width around the perimeter of wetlands within the area and may 
91.3 	include total upland area of up to four acres for each acre of wetland;
91.4 	(2) parcel identification numbers where designated by the county auditor;
91.5 	(3) name and address of the owner;
91.6 	(4) a statement by the owner covenanting that the land will be preserved as a wetland 
91.7 	and will only be used in accordance with conditions prescribed by the Board of Water and 
91.8 	Soil Resources and providing that the restrictive covenant will be binding on the owner 
91.9 	and the owner's successors or assigns, and will run with the land.
91.10 	(c) The upland strip required in paragraph (b), clause (1), must be planted with 
91.11 	permanent vegetation other than a noxious weed.

91.12 	Sec. 32. Minnesota Statutes 2014, section 103G.005, is amended by adding a 
91.13 	subdivision to read:
91.14 		Subd. 10g.In-lieu fee program. "In-lieu fee program" means a program in which 
91.15 	wetland replacement requirements of section 103G.222 are satisfied through payment of 
91.16 	money to the board or a board-approved sponsor to develop replacement credits according 
91.17 	to section 103G.2242, subdivision 12.

91.18 	Sec. 33. Minnesota Statutes 2014, section 103G.222, subdivision 1, is amended to read:
91.19 		Subdivision 1.Requirements. (a) Wetlands must not be drained or filled, wholly or 
91.20 	partially, unless replaced by restoring or creating wetland areas of actions that provide 
91.21 	at least equal public value under a replacement plan approved as provided in section 
91.22 	103G.2242, a replacement plan under a local governmental unit's comprehensive wetland 
91.23 	protection and management plan approved by the board under section 103G.2243, or, if a 
91.24 	permit to mine is required under section 93.481, under a mining reclamation plan approved 
91.25 	by the commissioner under the permit to mine. For project-specific wetland replacement 
91.26 	completed prior to wetland impacts authorized or conducted under a permit to mine within 
91.27 	the Great Lakes and Rainy River watershed basins, those basins shall be considered a single 
91.28 	watershed for purposes of determining wetland replacement ratios. Mining reclamation 
91.29 	plans shall apply the same principles and standards for replacing wetlands by restoration 
91.30 	or creation of wetland areas that are applicable to mitigation plans approved as provided 
91.31 	in section 103G.2242. Public value must be determined in accordance with section 
91.32 	103B.3355 or a comprehensive wetland protection and management plan established 
91.33 	under section 103G.2243. Sections 103G.221 to 103G.2372 also apply to excavation in 
91.34 	permanently and semipermanently flooded areas of types 3, 4, and 5 wetlands.
92.1 	(b) Replacement must be guided by the following principles in descending order 
92.2 	of priority:
92.3 	(1) avoiding the direct or indirect impact of the activity that may destroy or diminish 
92.4 	the wetland;
92.5 	(2) minimizing the impact by limiting the degree or magnitude of the wetland 
92.6 	activity and its implementation;
92.7 	(3) rectifying the impact by repairing, rehabilitating, or restoring the affected 
92.8 	wetland environment;
92.9 	(4) reducing or eliminating the impact over time by preservation and maintenance 
92.10 	operations during the life of the activity;
92.11 	(5) compensating for the impact by restoring a wetland; and
92.12 	(6) compensating for the impact by replacing or providing substitute wetland 
92.13 	resources or environments.
92.14 	For a project involving the draining or filling of wetlands in an amount not exceeding 
92.15 	10,000 square feet more than the applicable amount in section 103G.2241, subdivision 9, 
92.16 	paragraph (a), the local government unit may make an on-site sequencing determination 
92.17 	without a written alternatives analysis from the applicant.
92.18 	(c) If a wetland is located in a cultivated field, then replacement must be accomplished 
92.19 	through restoration only without regard to the priority order in paragraph (b), provided 
92.20 	that the altered wetland is not converted to a nonagricultural use for at least ten years.
92.21 	(d) If a wetland is replaced under paragraph (c), or drained under section 103G.2241, 
92.22 	subdivision 2, paragraph (b) or (e), the local government unit may require a deed 
92.23 	restriction that prohibits nonagricultural use for at least ten years. The local government 
92.24 	unit may require the deed restriction if it determines the wetland area drained is at risk of 
92.25 	conversion to a nonagricultural use within ten years based on the zoning classification, 
92.26 	proximity to a municipality or full service road, or other criteria as determined by the 
92.27 	local government unit.
92.28 	(e) Restoration and replacement of wetlands must be accomplished in accordance 
92.29 	with the ecology of the landscape area affected and ponds that are created primarily to 
92.30 	fulfill storm water management, and water quality treatment requirements may not be 
92.31 	used to satisfy replacement requirements under this chapter unless the design includes 
92.32 	pretreatment of runoff and the pond is functioning as a wetland.
92.33 	(f) Except as provided in paragraph (g), for a wetland or public waters wetland 
92.34 	located on nonagricultural land, replacement must be in the ratio of two acres of replaced 
92.35 	wetland for each acre of drained or filled wetland.
93.1 	(g) For a wetland or public waters wetland located on agricultural land or in a greater 
93.2 	than 80 percent area, replacement must be in the ratio of one acre of replaced wetland 
93.3 	for each acre of drained or filled wetland.
93.4 	(h) Wetlands that are restored or created as a result of an approved replacement plan 
93.5 	are subject to the provisions of this section for any subsequent drainage or filling.
93.6 	(i) Except in a greater than 80 percent area, only wetlands that have been 
93.7 	restored from previously drained or filled wetlands, wetlands created by excavation in 
93.8 	nonwetlands, wetlands created by dikes or dams along public or private drainage ditches, 
93.9 	or wetlands created by dikes or dams associated with the restoration of previously 
93.10 	drained or filled wetlands may be used in a statewide banking program established in for 
93.11 	wetland replacement according to rules adopted under section 103G.2242, subdivision 1. 
93.12 	Modification or conversion of nondegraded naturally occurring wetlands from one type to 
93.13 	another are not eligible for enrollment in a statewide wetlands bank wetland replacement.
93.14 	(j) The Technical Evaluation Panel established under section 103G.2242, subdivision 
93.15 	2, shall ensure that sufficient time has occurred for the wetland to develop wetland 
93.16 	characteristics of soils, vegetation, and hydrology before recommending that the wetland 
93.17 	be deposited in the statewide wetland bank. If the Technical Evaluation Panel has reason 
93.18 	to believe that the wetland characteristics may change substantially, the panel shall 
93.19 	postpone its recommendation until the wetland has stabilized.
93.20 	(k) This section and sections 103G.223 to 103G.2242, 103G.2364, and 103G.2365 
93.21 	apply to the state and its departments and agencies.
93.22 	(l) For projects involving draining or filling of wetlands associated with a new public 
93.23 	transportation project, and for projects expanded solely for additional traffic capacity, 
93.24 	public transportation authorities may purchase credits from the board at the cost to the 
93.25 	board to establish credits. Proceeds from the sale of credits provided under this paragraph 
93.26 	are appropriated to the board for the purposes of this paragraph. For the purposes of this 
93.27 	paragraph, "transportation project" does not include an airport project.
93.28 	(m) A replacement plan for wetlands is not required for individual projects that 
93.29 	result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction, 
93.30 	or replacement of a currently serviceable existing state, city, county, or town public road 
93.31 	necessary, as determined by the public transportation authority, to meet state or federal 
93.32 	design or safety standards or requirements, excluding new roads or roads expanded solely 
93.33 	for additional traffic capacity lanes. This paragraph only applies to authorities for public 
93.34 	transportation projects that:
93.35 	(1) minimize the amount of wetland filling or draining associated with the project 
93.36 	and consider mitigating important site-specific wetland functions on site;
94.1 	(2) except as provided in clause (3), submit project-specific reports to the board, the 
94.2 	Technical Evaluation Panel, the commissioner of natural resources, and members of the 
94.3 	public requesting a copy at least 30 days prior to construction that indicate the location, 
94.4 	amount, and type of wetlands to be filled or drained by the project or, alternatively, 
94.5 	convene an annual meeting of the parties required to receive notice to review projects to 
94.6 	be commenced during the upcoming year; and
94.7 	(3) for minor and emergency maintenance work impacting less than 10,000 square 
94.8 	feet, submit project-specific reports, within 30 days of commencing the activity, to the board 
94.9 	that indicate the location, amount, and type of wetlands that have been filled or drained.
94.10 	Those required to receive notice of public transportation projects may appeal 
94.11 	minimization, delineation, and on-site mitigation decisions made by the public 
94.12 	transportation authority to the board according to the provisions of section 103G.2242, 
94.13 	subdivision 9. The Technical Evaluation Panel shall review minimization and delineation 
94.14 	decisions made by the public transportation authority and provide recommendations 
94.15 	regarding on-site mitigation if requested to do so by the local government unit, a 
94.16 	contiguous landowner, or a member of the Technical Evaluation Panel.
94.17 	Except for state public transportation projects, for which the state Department of 
94.18 	Transportation is responsible, the board must replace the wetlands, and wetland areas of 
94.19 	public waters if authorized by the commissioner or a delegated authority, drained or filled 
94.20 	by public transportation projects on existing roads.
94.21 	Public transportation authorities at their discretion may deviate from federal and 
94.22 	state design standards on existing road projects when practical and reasonable to avoid 
94.23 	wetland filling or draining, provided that public safety is not unreasonably compromised. 
94.24 	The local road authority and its officers and employees are exempt from liability for 
94.25 	any tort claim for injury to persons or property arising from travel on the highway and 
94.26 	related to the deviation from the design standards for construction or reconstruction under 
94.27 	this paragraph. This paragraph does not preclude an action for damages arising from 
94.28 	negligence in construction or maintenance on a highway.
94.29 	(n) If a landowner seeks approval of a replacement plan after the proposed project 
94.30 	has already affected the wetland, the local government unit may require the landowner to 
94.31 	replace the affected wetland at a ratio not to exceed twice the replacement ratio otherwise 
94.32 	required.
94.33 	(o) A local government unit may request the board to reclassify a county or 
94.34 	watershed on the basis of its percentage of presettlement wetlands remaining. After 
94.35 	receipt of satisfactory documentation from the local government, the board shall change 
94.36 	the classification of a county or watershed. If requested by the local government unit, 
95.1 	the board must assist in developing the documentation. Within 30 days of its action to 
95.2 	approve a change of wetland classifications, the board shall publish a notice of the change 
95.3 	in the Environmental Quality Board Monitor.
95.4 	(p) One hundred citizens who reside within the jurisdiction of the local government 
95.5 	unit may request the local government unit to reclassify a county or watershed on the basis 
95.6 	of its percentage of presettlement wetlands remaining. In support of their petition, the 
95.7 	citizens shall provide satisfactory documentation to the local government unit. The local 
95.8 	government unit shall consider the petition and forward the request to the board under 
95.9 	paragraph (o) or provide a reason why the petition is denied.

95.10 	Sec. 34. Minnesota Statutes 2014, section 103G.222, subdivision 3, is amended to read:
95.11 		Subd. 3.Wetland replacement siting. (a) Impacted wetlands in a 50 to 80 percent 
95.12 	area must be replaced in a 50 to 80 percent area or in a less than 50 percent area. Impacted 
95.13 	wetlands in a less than 50 percent area must be replaced in a less than 50 percent area. 
95.14 	All wetland replacement must follow this priority order:
95.15 	(1) on site or in the same minor watershed as the impacted wetland;
95.16 	(2) in the same watershed as the impacted wetland;
95.17 	(3) in the same county or wetland bank service area as the impacted wetland; and
95.18 	(4) in another wetland bank service area; and.
95.19 	(5) statewide for public transportation projects, except that wetlands impacted in 
95.20 	less than 50 percent areas must be replaced in less than 50 percent areas, and wetlands 
95.21 	impacted in the seven-county metropolitan area must be replaced at a ratio of two to one in: 
95.22 	(i) the affected county or, (ii) in another of the seven metropolitan counties, or (iii) in one 
95.23 	of the major watersheds that are wholly or partially within the seven-county metropolitan 
95.24 	area, but at least one to one must be replaced within the seven-county metropolitan area.
95.25 	(b) The exception in paragraph (a), clause (5), does not apply to replacement 
95.26 	completed using wetland banking credits established by a person who submitted a 
95.27 	complete wetland banking application to a local government unit by April 1, 1996.
95.28 	(b) Notwithstanding paragraph (a), wetland banking credits approved according to 
95.29 	a complete wetland banking application submitted to a local government unit by April 
95.30 	1, 1996, may be used to replace wetland impacts resulting from public transportation 
95.31 	projects statewide.
95.32 	(c) Notwithstanding paragraph (a), clauses (1) and (2), the priority order for 
95.33 	replacement by wetland banking begins at paragraph (a), clause (3), according to rules 
95.34 	adopted under section 103G.2242, subdivision 1.
96.1 	(c) (d) When reasonable, practicable, and environmentally beneficial replacement 
96.2 	opportunities are not available in siting priorities listed in paragraph (a), the applicant 
96.3 	may seek opportunities at the next level.
96.4 	(d) (e) For the purposes of this section, "reasonable, practicable, and environmentally 
96.5 	beneficial replacement opportunities" are defined as opportunities that:
96.6 	(1) take advantage of naturally occurring hydrogeomorphological conditions and 
96.7 	require minimal landscape alteration;
96.8 	(2) have a high likelihood of becoming a functional wetland that will continue 
96.9 	in perpetuity;
96.10 	(3) do not adversely affect other habitat types or ecological communities that are 
96.11 	important in maintaining the overall biological diversity of the area; and
96.12 	(4) are available and capable of being done after taking into consideration cost, 
96.13 	existing technology, and logistics consistent with overall project purposes.
96.14 	(e) Applicants and local government units shall rely on board-approved 
96.15 	comprehensive inventories of replacement opportunities and watershed conditions, 
96.16 	including the Northeast Minnesota Wetland Mitigation Inventory and Assessment (January 
96.17 	2010), in determining whether reasonable, practicable, and environmentally beneficial 
96.18 	replacement opportunities are available.
96.19 	(f) Regulatory agencies, local government units, and other entities involved in 
96.20 	wetland restoration shall collaborate to identify potential replacement opportunities within 
96.21 	their jurisdictional areas.
96.22 	(g) The board must establish wetland replacement ratios and wetland bank service 
96.23 	area priorities to implement the siting and targeting of wetland replacement and encourage 
96.24 	the use of high priority areas for wetland replacement.

96.25 	Sec. 35. Minnesota Statutes 2014, section 103G.2242, subdivision 1, is amended to 
96.26 	read:
96.27 		Subdivision 1.Rules. (a) The board, in consultation with the commissioner, shall 
96.28 	adopt rules governing the approval of wetland value replacement plans under this section 
96.29 	and public waters work permits affecting public waters wetlands under section 103G.245. 
96.30 	These rules must address the criteria, procedure, timing, and location of acceptable 
96.31 	replacement of wetland values; and may address the state establishment and administration 
96.32 	of a wetland banking program for public and private projects, which may include including 
96.33 	provisions allowing monetary payment to the wetland banking program for alteration of 
96.34 	wetlands on agricultural land for an in-lieu fee program; the administrative, monitoring, and 
96.35 	enforcement procedures to be used; and a procedure for the review and appeal of decisions 
97.1 	under this section. In the case of peatlands, the replacement plan rules must consider the 
97.2 	impact on carbon balance described in the report required by Laws 1990, chapter 587, and 
97.3 	include the planting of trees or shrubs. Any in-lieu fee program established by the board 
97.4 	must conform with Code of Federal Regulations, title 33, section 332.8, as amended.
97.5 	(b) After the adoption of the rules, a replacement plan must be approved by a 
97.6 	resolution of the governing body of the local government unit, consistent with the 
97.7 	provisions of the rules or a comprehensive wetland protection and management plan 
97.8 	approved under section 103G.2243.
97.9 	(c) If the local government unit fails to apply the rules, or fails to implement a 
97.10 	local comprehensive wetland protection and management plan established under section 
97.11 	103G.2243, the government unit is subject to penalty as determined by the board.

97.12 	Sec. 36. Minnesota Statutes 2014, section 103G.2242, subdivision 2, is amended to 
97.13 	read:
97.14 		Subd. 2.Evaluation. (a) Questions concerning the public value, location, size, 
97.15 	or type of a wetland shall be submitted to and determined by a Technical Evaluation 
97.16 	Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of 
97.17 	a technical professional employee of the board, a technical professional employee of 
97.18 	the local soil and water conservation district or districts, a technical professional with 
97.19 	expertise in water resources management appointed by the local government unit, and 
97.20 	a technical professional employee of the Department of Natural Resources for projects 
97.21 	affecting public waters or wetlands adjacent to public waters. The panel shall use the 
97.22 	"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987), 
97.23 	including updates, supplementary guidance, and replacements, if any, "Wetlands of 
97.24 	the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition), 
97.25 	and "Classification of Wetlands and Deepwater Habitats of the United States" (1979 
97.26 	edition). The panel shall provide the wetland determination and recommendations on 
97.27 	other technical matters to the local government unit that must approve a replacement plan, 
97.28 	wetland banking plan sequencing, exemption determination, no-loss determination, or 
97.29 	wetland boundary or type determination and may recommend approval or denial of the 
97.30 	plan. The authority must consider and include the decision of the Technical Evaluation 
97.31 	Panel in their approval or denial of a plan or determination.
97.32 	(b) Persons conducting wetland or public waters boundary delineations or type 
97.33 	determinations are exempt from the requirements of chapter 326. The board may develop 
97.34 	a professional wetland delineator certification program.
98.1 	(c) The board must establish an interagency team to assist in identifying and 
98.2 	evaluating potential wetland replacement sites. The team must consist of members 
98.3 	of the Technical Evaluation Panel and representatives from the Department of Natural 
98.4 	Resources; the Pollution Control Agency; the United States Army Corps of Engineers, St. 
98.5 	Paul district; and other organizations as determined by the board.

98.6 	Sec. 37. Minnesota Statutes 2014, section 103G.2242, subdivision 3, is amended to 
98.7 	read:
98.8 		Subd. 3.Replacement completion. (a) Replacement of wetland values must be 
98.9 	completed prior to or concurrent with the actual draining or filling of a wetland, unless:
98.10 	(1) an irrevocable bank letter of credit or other security financial assurance 
98.11 	acceptable to the local government unit or the board is given to the local government unit 
98.12 	or the board to guarantee the successful completion of the replacement.; or
98.13 	(2) the replacement is approved under an in-lieu fee program according to rules 
98.14 	adopted under subdivision 1. In the case of an in-lieu fee program established by a 
98.15 	board-approved sponsor, the board may require that a financial assurance in an amount 
98.16 	and method acceptable to the board be given to the board to ensure the approved sponsor 
98.17 	fulfills the sponsor's obligation to complete the required wetland replacement. 
98.18 	The board may establish, sponsor, or administer a wetland banking program, which 
98.19 	may include provisions allowing monetary payment to the wetland bank for impacts to 
98.20 	wetlands on agricultural land, for impacts that occur in greater than 80 percent areas, and 
98.21 	for public road projects.(b) The board may acquire land in fee title, purchase or accept 
98.22 	easements, enter into agreements, and purchase existing wetland replacement credits to 
98.23 	facilitate the wetland banking program. The board may establish in-lieu fee payment 
98.24 	amounts and hold money in an account in the special revenue fund, which is appropriated 
98.25 	to the board to be used solely for establishing replacement wetlands and administering the 
98.26 	wetland banking program. 
98.27 	(c) The board shall coordinate the establishment and operation of a wetland bank 
98.28 	with the United States Army Corps of Engineers, the Natural Resources Conservation 
98.29 	Service of the United States Department of Agriculture, and the commissioners of natural 
98.30 	resources, agriculture, and the Pollution Control Agency.

98.31 	Sec. 38. Minnesota Statutes 2014, section 103G.2242, subdivision 4, is amended to 
98.32 	read:
98.33 		Subd. 4.Decision. Upon receiving and considering all required data, the local 
98.34 	government unit reviewing replacement plan applications, banking plan sequencing 
99.1 	applications, and exemption or no-loss determination requests must act on all replacement 
99.2 	plan applications, banking plan sequencing applications, and exemption or no-loss 
99.3 	determination requests in compliance with section 15.99.

99.4 	Sec. 40. Minnesota Statutes 2014, section 103G.2242, subdivision 12, is amended to 
99.5 	read:
99.6 		Subd. 12.Replacement credits. (a) No public or private wetland restoration, 
99.7 	enhancement, or construction may be allowed for replacement unless specifically 
99.8 	designated for replacement and paid for by the individual or organization performing the 
99.9 	wetland restoration, enhancement, or construction, and is completed prior to any draining 
99.10 	or filling of the wetland.
99.11 	(b) Paragraph (a) does not apply to a wetland whose owner has paid back with 
99.12 	interest the individual or organization restoring, enhancing, or constructing the wetland.
99.13 	(c) Notwithstanding section 103G.222, subdivision 1, paragraph (i), the following 
99.14 	actions, and others established in rule, that are consistent with criteria in rules adopted by 
99.15 	the board in conjunction with the commissioners of natural resources and agriculture, are 
99.16 	eligible for replacement credit as determined by the local government unit or the board, 
99.17 	including enrollment in a statewide wetlands bank:
99.18 	(1) reestablishment of permanent native, noninvasive vegetative cover on a wetland 
99.19 	on agricultural land that was planted with annually seeded crops, was in a crop rotation 
99.20 	seeding of pasture grasses or legumes, or was in a land retirement program during the 
99.21 	past ten years;
99.22 	(2) buffer areas of permanent native, noninvasive vegetative cover established or 
99.23 	preserved on upland adjacent to replacement wetlands;
99.24 	(3) wetlands restored for conservation purposes under terminated easements or 
99.25 	contracts; and
99.26 	(4) water quality treatment ponds constructed to pretreat storm water runoff prior 
99.27 	to discharge to wetlands, public waters, or other water bodies, provided that the water 
99.28 	quality treatment ponds must be associated with an ongoing or proposed project that 
99.29 	will impact a wetland and replacement credit for the treatment ponds is based on the 
99.30 	replacement of wetland functions and on an approved storm water management plan for 
99.31 	the local government.; and
99.32 	(5) in a greater than 80 percent area, restoration and protection of streams and 
99.33 	riparian buffers that are important to the functions and sustainability of aquatic resources.
100.1 	(d) Notwithstanding section 103G.222, subdivision 1, paragraphs (f) and (g), the 
100.2 	board may establish by rule different replacement ratios for restoration projects with 
100.3 	exceptional natural resource value.

100.4 	Sec. 41. Minnesota Statutes 2014, section 103G.2242, subdivision 14, is amended to 
100.5 	read:
100.6 		Subd. 14.Fees established. (a) Fees must be assessed for managing wetland bank 
100.7 	accounts and transactions as follows:
100.8 	(1) account maintenance annual fee: one percent of the value of credits not to 
100.9 	exceed $500;
100.10 	(2) account establishment, deposit, or transfer: 6.5 percent of the value of credits not 
100.11 	to exceed $1,000 per establishment, deposit, or transfer; and
100.12 	(3) withdrawal fee: 6.5 percent of the value of credits withdrawn.
100.13 	(b) The board may establish fees at or below the amounts in paragraph (a) for 
100.14 	single-user or other dedicated wetland banking accounts.
100.15 	(c) Fees for single-user or other dedicated wetland banking accounts established 
100.16 	pursuant to section 103G.005, subdivision 10e, clause (4), are limited to establishment 
100.17 	of a wetland banking account and are assessed at the rate of 6.5 percent of the value of 
100.18 	the credits not to exceed $1,000.
100.19 	(d) The board may assess a fee to pay the costs associated with establishing 
100.20 	conservation easements, or other long-term protection mechanisms prescribed in the rules 
100.21 	adopted under subdivision 1, on property used for wetland replacement.

100.22 	Sec. 42. Minnesota Statutes 2014, section 103G.2242, subdivision 15, is amended to 
100.23 	read:
100.24 		Subd. 15.Fees paid to board. All fees established in subdivisions 9 and 14 must 
100.25 	be paid to the Board of Water and Soil Resources and are annually appropriated to the 
100.26 	board for the purpose of administration of the wetland bank and to process appeals 
100.27 	under section 103G.2242, subdivision 9. One-half of the fees collected for wetland bank 
100.28 	credit withdrawals under subdivision 14, paragraph (a), clause (3), or alternative fees 
100.29 	for wetland bank credit withdrawal under subdivision 14, paragraph (b), must be paid 
100.30 	to the county where the property for wetland credit is located. The amount paid to the 
100.31 	county must be distributed as follows: one-third to the school district; one-third to the 
100.32 	city or organized township; and one-third to the county. If the property is located in an 
100.33 	unorganized township, the county retains the township share.

101.1 	Sec. 43. Minnesota Statutes 2014, section 103G.2251, is amended to read:
101.2 	103G.2251 STATE CONSERVATION EASEMENTS; WETLAND BANK 
101.3 	CREDIT.
101.4 	In greater than 80 percent areas, preservation of wetlands, riparian buffers, and 
101.5 	watershed areas essential to maintaining important functions and sustainability of aquatic 
101.6 	resources in the watershed that are protected by a permanent conservation easement 
101.7 	as defined under section 84C.01 and held by the board may be eligible for wetland 
101.8 	replacement or mitigation credits, according to rules adopted by the board. To be eligible 
101.9 	for credit under this section, a conservation easement must be established after May 24, 
101.10 	2008, and approved by the board. Wetland areas on private lands preserved under this 
101.11 	section are not eligible for replacement or mitigation credit if the area has been protected 
101.12 	using public conservation funds.

101.13 	Sec. 44. Minnesota Statutes 2014, section 115A.1415, subdivision 16, is amended to 
101.14 	read:
101.15 		Subd. 16.Administrative fee. (a) The stewardship organization or individual 
101.16 	producer submitting a stewardship plan shall pay an annual administrative fee to the 
101.17 	commissioner. The agency may establish a variable fee based on relevant factors, 
101.18 	including, but not limited to, the portion of architectural paint sold in the state by members 
101.19 	of the organization compared to the total amount of architectural paint sold in the state by 
101.20 	all organizations submitting a stewardship plan.
101.21 	(b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall 
101.22 	identify the costs it incurs under this section. The agency shall set the fee at an amount 
101.23 	that, when paid by every stewardship organization or individual producer that submits a 
101.24 	stewardship plan, is adequate to reimburse the agency's full costs of administering this 
101.25 	section. The total amount of annual fees collected under this subdivision must not exceed 
101.26 	the amount necessary to reimburse costs incurred by the agency to administer this section.
101.27 	(c) A stewardship organization or individual producer subject to this subdivision 
101.28 	must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014, 
101.29 	and annually thereafter. Each year after the initial payment, the annual administrative fee 
101.30 	may not exceed five percent of the aggregate stewardship assessment added to the cost of 
101.31 	all architectural paint sold by producers in the state for the preceding calendar year.
101.32 	(d) All fees received under this section shall be deposited in the state treasury and 
101.33 	credited to a product stewardship account in the special revenue fund. For fiscal years 
101.34 	2014 and, 2015, 2016, and 2017, the amount collected under this section is annually 
101.35 	appropriated to the agency to implement and enforce this section.

102.1 	Sec. 45. Minnesota Statutes 2014, section 115A.557, subdivision 2, is amended to read:
102.2 		Subd. 2.Purposes for which money may be spent. (a) A county receiving money 
102.3 	distributed by the commissioner under this section may use the money only for the 
102.4 	development and implementation of programs to:
102.5 	(1) reduce the amount of solid waste generated;
102.6 	(2) recycle the maximum amount of solid waste technically feasible;
102.7 	(3) create and support markets for recycled products;
102.8 	(4) remove problem materials from the solid waste stream and develop proper 
102.9 	disposal options for them;
102.10 	(5) inform and educate all sectors of the public about proper solid waste management 
102.11 	procedures;
102.12 	(6) provide technical assistance to public and private entities to ensure proper solid 
102.13 	waste management;
102.14 	(7) provide educational, technical, and financial assistance for litter prevention;
102.15 	(8) process mixed municipal solid waste generated in the county at a resource 
102.16 	recovery facility located in Minnesota; and
102.17 	(9) compost source-separated compostable materials, including the provision of 
102.18 	receptacles for residential composting.;
102.19 	(10) prevent food waste or collect and transport food donated to humans or to be 
102.20 	fed to animals; and 
102.21 	(11) process source-separated compostable materials that are to be used to produce 
102.22 	Class I or Class II compost, as defined in Minnesota Rules, part 7035.2836, after being 
102.23 	processed in an anaerobic digester, but not to construct buildings or acquire equipment.
102.24 	(b) Beginning in fiscal year 2015 and continuing thereafter, of any money distributed 
102.25 	by the commissioner under this section to a metropolitan county, as defined in section 
102.26 	473.121, subdivision 4, that exceeds the amount the county was eligible to receive under 
102.27 	this section in fiscal year 2014: (1) at least 50 percent must be expended on activities in 
102.28 	paragraph (a), clause clauses (9) to (11); and (2) the remainder must be expended on 
102.29 	activities in paragraph (a), clauses (1) to (7) and (9) to (11) that advance the county toward 
102.30 	achieving its recycling goal under section 115A.551.

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

102.32 	Sec. 46. Minnesota Statutes 2014, section 116.07, subdivision 4d, is amended to read:
102.33 		Subd. 4d.Permit fees. (a) The agency may collect permit fees in amounts not greater 
102.34 	than those necessary to cover the reasonable costs of developing, reviewing, and acting 
102.35 	upon applications for agency permits and implementing and enforcing the conditions of 
103.1 	the permits pursuant to agency rules. Permit fees shall not include the costs of litigation. 
103.2 	The fee schedule must reflect reasonable and routine direct and indirect costs associated 
103.3 	with permitting, implementation, and enforcement. The agency may impose an additional 
103.4 	enforcement fee to be collected for a period of up to two years to cover the reasonable costs 
103.5 	of implementing and enforcing the conditions of a permit under the rules of the agency. 
103.6 	Any money collected under this paragraph shall be deposited in the environmental fund.
103.7 	(b) Notwithstanding paragraph (a), the agency shall collect an annual fee from 
103.8 	the owner or operator of all stationary sources, emission facilities, emissions units, air 
103.9 	contaminant treatment facilities, treatment facilities, potential air contaminant storage 
103.10 	facilities, or storage facilities subject to the requirement to obtain a permita notification, 
103.11 	permit, or license requirement under subchapter this chapter, subchapters I and V of 
103.12 	the federal Clean Air Act, United States Code, title 42, section 7401 et seq., or section 
103.13 	116.081 or rules adopted thereunder. The annual fee shall be used to pay for all direct 
103.14 	and indirect reasonable costs, including attorney general legal costs, required to develop 
103.15 	and administer the notification, permit, or license program requirements of subchapter 
103.16 	this chapter, subchapters I and V of the federal Clean Air Act, United States Code, title 
103.17 	42, section 7401 et seq., and sections of this chapter and theor rules adopted under 
103.18 	this chapter related to air contamination and noise thereunder. Those costs include the 
103.19 	reasonable costs of reviewing and acting upon an application for a permit; implementing 
103.20 	and enforcing statutes, rules, and the terms and conditions of a permit; emissions, ambient, 
103.21 	and deposition monitoring; preparing generally applicable regulations; responding to 
103.22 	federal guidance; modeling, analyses, and demonstrations; preparing inventories and 
103.23 	tracking emissions; and providing information to the public about these activities.
103.24 	(c) The agency shall set fees that:
103.25 	(1) will result in the collection, in the aggregate, from the sources listed in paragraph 
103.26 	(b), of an amount not less than $25 per ton of each volatile organic compound; pollutant 
103.27 	regulated under United States Code, title 42, section 7411 or 7412 (section 111 or 112 
103.28 	of the federal Clean Air Act); and each pollutant, except carbon monoxide, for which a 
103.29 	national primary ambient air quality standard has been promulgated;
103.30 	(2) may result in the collection, in the aggregate, from the sources listed in paragraph 
103.31 	(b), of an amount not less than $25 per ton of each pollutant not listed in clause (1) that is 
103.32 	regulated under this chapter or air quality rules adopted under this chapter; and
103.33 	(3) shall collect, in the aggregate, from the sources listed in paragraph (b), the 
103.34 	amount needed to match grant funds received by the state under United States Code, title 
103.35 	42, section 7405 (section 105 of the federal Clean Air Act).
104.1 	The agency must not include in the calculation of the aggregate amount to be collected 
104.2 	under clauses (1) and (2) any amount in excess of 4,000 tons per year of each air pollutant 
104.3 	from a source. The increase in air permit fees to match federal grant funds shall be a 
104.4 	surcharge on existing fees. The commissioner may not collect the surcharge after the grant 
104.5 	funds become unavailable. In addition, the commissioner shall use nonfee funds to the 
104.6 	extent practical to match the grant funds so that the fee surcharge is minimized.
104.7 	(d) To cover the reasonable costs described in paragraph (b), the agency shall 
104.8 	provide in the rules promulgated under paragraph (c) to implement paragraphs (b) and 
104.9 	(c) for an increase in the fee collected in each year by the percentage, if any, by which 
104.10 	the Consumer Price Index for the most recent calendar year ending before the beginning 
104.11 	of the year the fee is collected exceeds the Consumer Price Index for the calendar year 
104.12 	1989. For purposes of this paragraph the Consumer Price Index for any calendar year is 
104.13 	the average of the Consumer Price Index for all-urban consumers published by the United 
104.14 	States Department of Labor, as of the close of the 12-month period ending on August 31 
104.15 	of each calendar year. The revision of the Consumer Price Index that is most consistent 
104.16 	with the Consumer Price Index for calendar year 1989 shall be used.
104.17 	(e) Any money collected under paragraphs (b) to (d) this subdivision must be 
104.18 	deposited in the environmental fund and must be used solely for the activities listed in 
104.19 	paragraph (b).
104.20 	(f) Permit applicants who wish to construct, reconstruct, or modify a facility may 
104.21 	offer to reimburse the agency for the costs of staff time or consultant services needed to 
104.22 	expedite the permit development process, including the analysis of environmental review 
104.23 	documents. The reimbursement shall be in addition to permit application fees imposed by 
104.24 	law. When the agency determines that it needs additional resources to develop the permit 
104.25 	application in an expedited manner, and that expediting the development is consistent with 
104.26 	permitting program priorities, the agency may accept the reimbursement. Reimbursements 
104.27 	accepted by the agency are appropriated to the agency for the purpose of developing 
104.28 	the permit or analyzing environmental review documents. Reimbursement by a permit 
104.29 	applicant shall precede and not be contingent upon issuance of a permit; shall not affect 
104.30 	the agency's decision on whether to issue or deny a permit, what conditions are included 
104.31 	in a permit, or the application of state and federal statutes and rules governing permit 
104.32 	determinations; and shall not affect final decisions regarding environmental review.
104.33 	(g) The fees under this subdivision are exempt from section 16A.1285.

104.34 	Sec. 47. Minnesota Statutes 2014, section 116.9401, is amended to read:
104.35 	116.9401 DEFINITIONS.
105.1 	(a) For the purposes of sections 116.9401 to 116.9407 116.9411, the following terms 
105.2 	have the meanings given them.
105.3 	(b) "Agency" means the Pollution Control Agency.
105.4 	(c) "Alternative" means a substitute process, product, material, chemical, strategy, 
105.5 	or combination of these that is technically feasible and serves a functionally equivalent 
105.6 	purpose to a chemical in a children's product.
105.7 	(d) "Chemical" means a substance with a distinct molecular composition or a group 
105.8 	of structurally related substances and includes the breakdown products of the substance or 
105.9 	substances that form through decomposition, degradation, or metabolism.
105.10 	(e) "Chemical of high concern" means a chemical identified on the basis of credible 
105.11 	scientific evidence by a state, federal, or international agency as being known or suspected 
105.12 	with a high degree of probability to:
105.13 	(1) harm the normal development of a fetus or child or cause other developmental 
105.14 	toxicity;
105.15 	(2) cause cancer, genetic damage, or reproductive harm;
105.16 	(3) disrupt the endocrine or hormone system;
105.17 	(4) damage the nervous system, immune system, or organs, or cause other systemic 
105.18 	toxicity;
105.19 	(5) be persistent, bioaccumulative, and toxic; or
105.20 	(6) be very persistent and very bioaccumulative.
105.21 	(f) "Child" means a person under 12 years of age.
105.22 	(g) "Children's product" means a consumer product intended for use by children, 
105.23 	such as baby products, toys, car seats, personal care products, and clothing.
105.24 	(h) "Commissioner" means the commissioner of the Pollution Control Agency.
105.25 	(i) "Contaminant" means a trace amount of a chemical that is incidental to 
105.26 	manufacturing and serves no intended function in the product component. Contaminant 
105.27 	includes, but is not limited to, unintended by-products of chemical reactions that 
105.28 	occur during the manufacture of the product component, trace impurities in feedstock, 
105.29 	incompletely reacted chemical mixtures, and degradation products.
105.30 	(j) "Department" means the Department of Health.
105.31 	(j) (k) "Distributor" means a person who sells consumer products to retail 
105.32 	establishments on a wholesale basis.
105.33 	(k) (l) "Green chemistry" means an approach to designing and manufacturing 
105.34 	products that minimizes the use and generation of toxic substances.
105.35 	(l) (m) "Manufacturer" means any person who manufactures a final consumer 
105.36 	product sold at retail or whose brand name is affixed to the consumer product. In the 
106.1 	case of a consumer product imported into the United States, manufacturer includes the 
106.2 	importer or domestic distributor of the consumer product if the person who manufactured 
106.3 	or assembled the consumer product or whose brand name is affixed to the consumer 
106.4 	product does not have a presence in the United States.
106.5 	(n) "Practical quantification limit" means the lowest concentration of a chemical that 
106.6 	can be reliably measured within specified limits of precision, accuracy, representativeness, 
106.7 	completeness, and comparability under routine laboratory operating conditions, the value 
106.8 	of which:
106.9 	(1) is based on scientifically defensible, standard analytical methods;
106.10 	(2) may vary depending on the matrix and analytical method used; and
106.11 	(3) will be determined jointly by the agency and the department, taking into 
106.12 	consideration practical quantification limits established by federal or state agencies.
106.13 	(m) (o) "Priority chemical" means a chemical identified by the Department of Health 
106.14 	as a chemical of high concern that meets the criteria in section 116.9403.
106.15 	(n)(p) "Product category" means the brick level of the GS1 Global Product 
106.16 	Classification (GPC) standard, which identifies products that serve a common purpose, are 
106.17 	of a similar form and material, and share the same set of category attributes.
106.18 	(q) "Safer alternative" means an alternative whose potential to harm human health is 
106.19 	less than that of the use of a priority chemical that it could replace.

106.20 	EFFECTIVE DATE. This section is effective July 1, 2016.

106.21 	Sec. 48. Minnesota Statutes 2014, section 116.9402, is amended to read:
106.22 	116.9402 IDENTIFICATION OF CHEMICALS OF HIGH CONCERN.
106.23 	(a) By July 1, 2010, the department shall, after consultation with the agency, 
106.24 	generate a list of chemicals of high concern.
106.25 	(b) The department must periodically review and revise the list of chemicals of 
106.26 	high concern at least every three years. The department may add chemicals to the list if 
106.27 	the chemical meets one or more of the criteria in section 116.9401, paragraph (e). Any 
106.28 	changes to the list of chemicals of high concern must be published on the department's 
106.29 	Web site and in the State Register when a change is made.
106.30 	(c) The department shall consider chemicals listed as a suspected carcinogen, 
106.31 	reproductive or developmental toxicant, or as being persistent, bioaccumulative, and 
106.32 	toxic, or very persistent and very bioaccumulative by a state, federal, or international 
106.33 	agency. These agencies may include, but are not limited to, the California Environmental 
106.34 	Protection Agency, the Washington Department of Ecology, the United States Department 
107.1 	of Health, the United States Environmental Protection Agency, the United Nation's World 
107.2 	Health Organization, and European Parliament Annex XIV concerning the Registration, 
107.3 	Evaluation, Authorisation, and Restriction of Chemicals.
107.4 	(d) The department may consider chemicals listed by another state as harmful to 
107.5 	human health or the environment for possible inclusion in the list of chemicals of high 
107.6 	concern.

107.7 	EFFECTIVE DATE. This section is effective July 1, 2016.

107.8 	Sec. 49. Minnesota Statutes 2014, section 116.9403, is amended to read:
107.9 	116.9403 IDENTIFICATION OF PRIORITY CHEMICALS.
107.10 	(a) The department, after consultation with the agency, may designate a chemical of 
107.11 	high concern as a priority chemical if the department finds that the chemical:
107.12 	(1) has been identified as a high-production volume chemical by the United States 
107.13 	Environmental Protection Agency; and
107.14 	(2) meets any of the following criteria:
107.15 	(i) the chemical has been found through biomonitoring to be present in human blood, 
107.16 	including umbilical cord blood, breast milk, urine, or other bodily tissues or fluids;
107.17 	(ii) the chemical has been found through sampling and analysis to be present in 
107.18 	household dust, indoor air, drinking water, or elsewhere in the home environment; or
107.19 	(iii) the chemical has been found through monitoring to be present in fish, wildlife, 
107.20 	or the natural environment.
107.21 	(b) By February 1, 2011, the department shall publish a list of priority chemicals in 
107.22 	the State Register and on the department's Internet Web site and shall update the published 
107.23 	list whenever a new priority chemical is designated. Any proposed changes to the list of 
107.24 	priority chemicals must be published on the department's Web site and in the State Register 
107.25 	and is subject to a minimum 60-day public comment period. After the department's 
107.26 	review and consideration of public comments, a final list of changes to the list of priority 
107.27 	chemicals must be published on the department's Web site and in the State Register.

107.28 	EFFECTIVE DATE. This section is effective July 1, 2016.

107.29 	Sec. 50. Minnesota Statutes 2014, section 116.9405, is amended to read:
107.30 	116.9405 APPLICABILITY.
107.31 	The requirements of sections 116.9401 to 116.9407 116.9411 do not apply to:
107.32 	(1) chemicals in used children's products;
108.1 	(2) priority chemicals used in the manufacturing process, but that are not present 
108.2 	in the final product;
108.3 	(3) priority chemicals used in agricultural production;
108.4 	(4) motor vehicles as defined in chapter 168 or watercraft as defined in chapter 
108.5 	86B or their component parts, except that the use of priority chemicals in detachable 
108.6 	car seats is not exempt;
108.7 	(5) priority chemicals generated solely as combustion by-products or that are present 
108.8 	in combustible fuels;
108.9 	(6) retailers, except if a retailer is also the producer, manufacturer, importer, or 
108.10 	domestic distributor of a children's product containing a priority chemical or the retailer's 
108.11 	brand name is affixed to a children's product containing a priority chemical;
108.12 	(7) pharmaceutical products or biologics;
108.13 	(8) a medical device as defined in the federal Food, Drug, and Cosmetic Act, United 
108.14 	States Code, title 21, section 321(h);
108.15 	(9) food and food or beverage packaging, except a container containing baby food 
108.16 	or infant formula;
108.17 	(10) consumer electronics products and electronic components, including but not 
108.18 	limited to personal computers; audio and video equipment; calculators; digital displays; 
108.19 	wireless phones; cameras; game consoles; printers; and handheld electronic and electrical 
108.20 	devices used to access interactive software or their associated peripherals; or products that 
108.21 	comply with the provisions of directive 2002/95/EC of the European Union, adopted by 
108.22 	the European Parliament and Council of the European Union now or hereafter in effect; or
108.23 	(11) outdoor sport equipment, including snowmobiles as defined in section 84.81, 
108.24 	subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal 
108.25 	watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section 
108.26 	86B.005, subdivision 18; and off-highway motorcycles, as defined in section 84.787, 
108.27 	subdivision 7, and all attachments and repair parts for all of this equipment.;
108.28 	(12) a manufacturer or distributor of a children's product whose annual aggregate 
108.29 	gross sales, both within and outside this state, as reported in the manufacturer's or 
108.30 	distributor's most recently filed federal tax return, is below $100,000; or
108.31 	(13) a children's product if the annual production of the children's product is less 
108.32 	than 3,000 units.

108.33 	EFFECTIVE DATE. This section is effective July 1, 2016.

109.1 	Sec. 51. Minnesota Statutes 2014, section 116.9406, is amended to read:
109.2 	116.9406 DONATIONS TO THE STATE.
109.3 	The commissioner may accept donations, grants, and other funds to carry out the 
109.4 	purposes of sections 116.9401 to 116.9407 116.9411. All donations, grants, and other 
109.5 	funds must be accepted without preconditions regarding the outcomes of the regulatory 
109.6 	oversight processes set forth in sections 116.9401 to 116.9407 116.9411.

109.7 	EFFECTIVE DATE. This section is effective July 1, 2016.

109.8 	Sec. 52. [116.9408] CHILDREN'S PRODUCTS; REPORTING INFORMATION 
109.9 	ON PRIORITY CHEMICALS.
109.10 		Subdivision 1.Reporting; content. A manufacturer or distributor of a children's 
109.11 	product offered for sale in this state that contains one or more priority chemicals 
109.12 	designated under section 116.9403 must, unless the children's product is exempt under 
109.13 	section 116.9405, provide the following information to the agency, on a form developed by 
109.14 	the agency, for each priority chemical that is intentionally added to the children's product 
109.15 	and present at or above the practical quantification limit or that is a contaminant present in 
109.16 	a component of the children's product at a concentration above 100 parts per million:
109.17 	(1) the name of the priority chemical;
109.18 	(2) the Chemical Abstracts Service Registry number of the priority chemical;
109.19 	(3) the concentration of each priority chemical contained in a children's product, a 
109.20 	description of how the concentration was determined, and an evaluation of the accuracy 
109.21 	of the determination. Concentrations at or above the practical quantification limit must 
109.22 	be reported, but may be reported in the following ranges:
109.23 	(i) greater than or equal to the practical quantification limit but less than 100 parts 
109.24 	per million (ppm);
109.25 	(ii) greater than or equal to 100 ppm but less than 500 ppm;
109.26 	(iii) greater than or equal to 500 ppm but less than 1,000 ppm;
109.27 	(iv) greater than or equal to 1,000 ppm but less than 5,000 ppm;
109.28 	(v) greater than or equal to 5,000 ppm but less than 10,000 ppm; and
109.29 	(vi) greater than or equal to 10,000 ppm;
109.30 	(4) the product category of the children's product;
109.31 	(5) the number of units of the children's product sold in Minnesota or nationally in 
109.32 	the most recently completed calendar year;
110.1 	(6) information that the agency determines is necessary to determine the extent to 
110.2 	which a child is likely to be exposed to the priority chemical through normal use of the 
110.3 	product;
110.4 	(7) any assessment conducted by the manufacturer or distributor of the children's 
110.5 	product or others regarding the use of safer alternatives to the priority chemical contained 
110.6 	in the children's product; and
110.7 	(8) any additional information requested by the agency.
110.8 		Subd. 2.Report timing. (a) A manufacturer or distributor subject to this section 
110.9 	must report the information required under this section to the agency no later than one 
110.10 	year after a priority chemical has been designated under section 116.9403 or, for a priority 
110.11 	chemical designated under section 116.9403 before July 1, 2011, on the following 
110.12 	schedule based on the manufacturer's or distributor's annual aggregate gross sales, both 
110.13 	within and outside the state, as reported in the manufacturer's or distributor's most recently 
110.14 	filed federal tax return:
110.15 	(1) for a manufacturer or distributor with gross sales exceeding $1,000,000,000, by 
110.16 	July 1, 2018;
110.17 	(2) for a manufacturer or distributor with gross sales exceeding $250,000,000 but 
110.18 	less than or equal to $1,000,000,000, by January 1, 2019;
110.19 	(3) for a manufacturer or distributor with gross sales exceeding $100,000,000 but 
110.20 	less than or equal to $250,000,000, by July 1, 2019;
110.21 	(4) for a manufacturer or distributor with gross sales exceeding $5,000,000 but less 
110.22 	than or equal to $100,000,000, by July 1, 2020; and
110.23 	(5) for a manufacturer or distributor with gross sales exceeding $100,000 but less 
110.24 	than or equal to $5,000,000, by July 1, 2021.
110.25 	(b) Two years after submitting an initial report to the agency under this section, 
110.26 	a manufacturer or distributor of a children's product offered for sale in this state that 
110.27 	continues to contain one or more priority chemicals must submit an updated report 
110.28 	containing the information required under subdivision 1 and the 12-digit Universal 
110.29 	Product Code for the children's product. If the children's product continues to be offered 
110.30 	for sale in this state and to contain the priority chemical, the information required under 
110.31 	this paragraph must be submitted to the agency every two years.
110.32 		Subd. 3.Public data. Notwithstanding section 13.37, subdivision 2, the presence 
110.33 	and concentration of a priority chemical in a specific children's product reported to the 
110.34 	agency under this section are classified as public data.
110.35 		Subd. 4.Not misappropriation of trade secret. Notwithstanding section 325C.01, 
110.36 	subdivision 3, publication by the agency of the presence and concentration of a priority 
111.1 	chemical in a specific children's product reported to the agency under this section is not 
111.2 	misappropriation of a trade secret.
111.3 		Subd. 5.Removal of priority chemical; reporting. A manufacturer or distributor 
111.4 	who removes a priority chemical from a children's product reported under this section 
111.5 	must notify the agency of the removal at the earliest possible date. If the priority 
111.6 	chemical removed is replaced by a safer alternative, the manufacturer or distributor 
111.7 	must provide, on a form developed by the agency, the name of the safer alternative 
111.8 	and its Chemical Abstracts Service Registry number or, if not replaced by a chemical 
111.9 	alternative, a description of the techniques or design changes implemented. The safer 
111.10 	alternative or nonchemical techniques or design changes may be designated as trade 
111.11 	secrets. Upon verification that all priority chemicals in the product have been replaced by 
111.12 	safer alternatives, the commissioner must promptly remove from state agency Web sites 
111.13 	any reference to the relevant children's product of the manufacturer, and the manufacturer 
111.14 	will no longer report or pay fees on that children's product.
111.15 		Subd. 6.Failure to report. If the information required in this section is not 
111.16 	submitted in a timely fashion or is incomplete or otherwise unacceptable as determined 
111.17 	by the agency, the agency may contract with an independent third party of the agency's 
111.18 	choice to provide the information and may assess a fee on the manufacturer or distributor 
111.19 	to pay the costs specified under section 116.9409.

111.20 	EFFECTIVE DATE. This section is effective July 1, 2016.

111.21 	Sec. 53. [116.9409] FEES.
111.22 	(a) The agency shall collect a fee of $1,000 for each priority chemical initially 
111.23 	reported under section 116.9408. The fee increases by $1,000 for each report subsequently 
111.24 	filed with the agency under section 116.9408 for the same chemical contained in the same 
111.25 	children's product category, up to a maximum of $3,000.
111.26 	(b) The agency shall collect a fee equal to the costs billed by the independent 
111.27 	contractor plus the agency's actual incurred costs to bid and administer the contract for 
111.28 	each contract issued under section 116.9408, subdivision 6.
111.29 	(c) The commissioner shall deposit all fees received under this section in an account 
111.30 	in the special revenue fund.
111.31 	(d) Fees collected under this section are exempt from section 16A.1285.

111.32 	EFFECTIVE DATE. This section is effective July 1, 2016.

111.33 	Sec. 54. [116.9410] ENFORCEMENT.
112.1 	The agency shall enforce sections 116.9401 to 116.9409 in the manner provided by 
112.2 	section 115.071, subdivisions 1, 3, 4, 5, and 6. Section 115.071, subdivision 2, does not 
112.3 	apply to violations of sections 116.9401 to 116.9409.

112.4 	EFFECTIVE DATE. This section is effective July 1, 2016.

112.5 	Sec. 55. [116.9411] STATE AGENCY DUTIES.
112.6 		Subdivision 1.Safer alternative grants. If there is fee revenue collected under 
112.7 	section 116.9409, paragraph (a), in excess of program implementation costs, the 
112.8 	commissioner, in consultation with the commissioners of commerce and health, may 
112.9 	use that fee revenue to offer grants awarded competitively to manufacturers or other 
112.10 	researchers to develop safer alternatives to priority chemicals in children's products, 
112.11 	to establish alternatives as safer alternatives, or to accelerate the commercialization of 
112.12 	safer alternatives.
112.13 		Subd. 2.Education and outreach. The commissioners of health and commerce 
112.14 	shall develop and implement an education and outreach effort regarding priority chemicals 
112.15 	in children's products.
112.16 		Subd. 3.Report. By January 15, 2019, and every three years thereafter, the 
112.17 	commissioners of the Pollution Control Agency, health, and commerce shall report to 
112.18 	the legislative committees with jurisdiction over environment and natural resources, 
112.19 	commerce, and public health on the implementation of sections 116.9401 to 116.9411.

112.20 	EFFECTIVE DATE. This section is effective July 1, 2016.

112.21 	Sec. 56. TRANSFERS.
 112.22 	(a) On June 30, 2015, the commissioner of management and budget shall transfer 
112.23 	to the natural resources conservation easement stewardship account, established in 
112.24 	Minnesota Statutes, section 84.69, the remaining balance:
112.25 	(1) in the forests for the future conservation easement account under section 84.68; 
112.26 	and
112.27 	(2) of all appropriations to the Department of Natural Resources from the outdoor 
112.28 	heritage fund for the establishment of conservation easement monitoring and enforcement 
112.29 	accounts.
112.30 	(b) On June 30, 2015, the commissioner of management and budget shall transfer to 
112.31 	the water and soil conservation easement stewardship account, established in Minnesota 
112.32 	Statutes, section 103B.103, the remaining balance of all appropriations to the board from 
113.1 	the outdoor heritage fund for the establishment of conservation easement monitoring 
113.2 	and enforcement accounts.

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

113.4 	Sec. 57. WETLAND CONSERVATION ACT REPORT.
 113.5 	By March 15, 2016, the Board of Water and Soil Resources, in cooperation with the 
113.6 	Department of Natural Resources, shall report to the committees with jurisdiction over 
113.7 	environment and natural resources on the proposals to implement high priority areas for 
113.8 	wetland replacement and in-lieu fees for replacement and modify wetland replacement 
113.9 	siting and actions eligible for credit. In developing the report, the board and department 
113.10 	shall consult with stakeholders and agencies.

113.11 	Sec. 59. REFUNDS; YOUTH BEAR LICENSES.
 113.12 	The commissioner of natural resources may issue refunds for youth bear licenses 
113.13 	that were purchased between August 1, 2013, and June 30, 2014, to individuals who were 
113.14 	10, 11, or 12 years old at the time of purchase.

113.15 	Sec. 60. WILD RICE WATER QUALITY STANDARDS.
 113.16 	(a) Until the commissioner of the Pollution Control Agency adopts rules refining 
113.17 	the wild rice water quality standard in Minnesota Rules, part 7050.0224, subpart 2, 
113.18 	to incorporate new science and to include criteria for identifying waters and a list of 
113.19 	waters subject to the standard, implementation of the wild rice water quality standard 
113.20 	in Minnesota Rules, part 7050.0224, subpart 2, is limited to the following, unless the 
113.21 	permittee requests additional conditions:
113.22 	(1) the agency shall ensure that no existing discharge further causes or contributes to 
113.23 	sulfate impacts to wild rice and, to accomplish this, is limited by the following conditions:
113.24 	(i) the agency shall not require permittees to expend money for design or 
113.25 	implementation of sulfate treatment technologies or other forms of sulfate mitigation; and
113.26 	(ii) the agency may require sulfate minimization plans in permits;
113.27 	(2) the agency shall consider wild rice protection when evaluating proposals for new 
113.28 	or expanded discharges that include sulfate; and
113.29 	(3) the agency shall not list waters containing natural beds of wild rice as impaired 
113.30 	for sulfate under section 303(d) of the federal Clean Water Act, United States Code, title 
113.31 	33, section 1313, until the rulemaking described in this paragraph takes effect.
114.1 	(b) Upon the rule described in paragraph (a) taking effect, the agency may reopen 
114.2 	permits issued or reissued after the effective date of this section as needed to include 
114.3 	numeric permit limits based on the wild rice water quality standard.
114.4 	(c) The commissioner shall complete the rulemaking described in paragraph (a) by 
114.5 	January 15, 2018.

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

114.7 	Sec. 62. WORKING LANDS WATERSHED RESTORATION 
114.8 	IMPLEMENTATION PLAN.
 114.9 	(a) The Board of Water and Soil Resources shall develop a detailed plan to 
114.10 	implement Minnesota Statutes, section 103F.519, that includes the following:
114.11 	(1) selection of pilot watersheds that are expected to best demonstrate water quality 
114.12 	improvements and exhibit readiness to participate in the program;
114.13 	(2) an assessment of the quantity of agricultural lands that are expected to be eligible 
114.14 	for the program in each watershed;
114.15 	(3) an assessment of landowner interest in participating in the program;
114.16 	(4) an assessment of the contract terms and any recommendations for changes to 
114.17 	the terms;
114.18 	(5) an assessment of the opportunity to leverage federal funds through the program 
114.19 	and recommendations on how to maximize the use of federal funds in the future;
114.20 	(6) an estimate of water quality improvements resulting from implementation;
114.21 	(7) an assessment of potential groundwater quantity use of the proposed advanced 
114.22 	biofuel production facilities;
114.23 	(8) an assessment of how to best integrate implementation with existing conservation 
114.24 	requirements and practices;
114.25 	(9) a timeline for implementation, coordinated to the extent possible with the 
114.26 	proposed advanced biofuel production facilities; and
114.27 	(10) a projection of funding sources needed to complete implementation.
114.28 	(b) The board shall coordinate development of the plan with the commissioners of 
114.29 	natural resources, agriculture, and the Pollution Control Agency. The implementation plan 
114.30 	must be submitted by October 1, 2016, to the chairs and ranking minority members of the 
114.31 	legislative committees and divisions with jurisdiction over agriculture, natural resources, 
114.32 	and environment policy and finance and to the Clean Water Council.

114.33 	Sec. 64. REVISOR'S INSTRUCTION.
 115.1 	The revisor of statutes shall renumber the subdivisions of Minnesota Statutes, 
115.2 	section 103G.005, to retain alphabetical order and shall correct cross-references to the 
115.3 	renumbered subdivisions.

115.4 	Sec. 65.  REPEALER.
 115.5 	(a) Minnesota Statutes 2014, section 84.68, is repealed.
115.6 	(b) Minnesota Statutes 2014, section 86B.13, subdivisions 2 and 4, are repealed.
115.7 	(c) Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by Laws 
115.8 	2010, First Special Session chapter 1, article 6, section 6, Laws 2013, chapter 114, article 
115.9 	3, section 9, is repealed.

115.10 	EFFECTIVE DATE. Paragraph (b) of this section is effective the day following 
115.11 	final enactment.

115.12 	ARTICLE 5
115.13 	JOBS, ECONOMIC DEVELOPMENT, AND HOUSING APPROPRIATIONS

115.14
115.15	Section 1. JOBS, ECONOMIC DEVELOPMENT, AND HOUSING 
APPROPRIATIONS.
 	
115.16 	The sums shown in the columns marked "Appropriations" are appropriated to the 
115.17 	agencies and for the purposes specified in this article. The appropriations are from the 
115.18 	general fund, or another named fund, and are available for the fiscal years indicated 
115.19 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
115.20 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
115.21 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
115.22 	year 2017. "The biennium" is fiscal years 2016 and 2017.

115.23				APPROPRIATIONS
	
115.24				Available for the Year
	
115.25				Ending June 30
	
115.26					2016
		2017

115.27
115.28	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

115.29	Subdivision 1.Total Appropriation
 	$
	140,384,000
	$
	113,524,000

115.30	Appropriations by Fund
	
115.31		2016
	2017
	
115.32	General
	112,378,000
	85,510,000
	
116.1	Remediation
	700,000
	700,000
	
116.2
116.3	Workforce 
Development
	27,306,000
	27,314,000
	
116.4 	The amounts that may be spent for each 
116.5 	purpose are specified in the following 
116.6 	subdivisions.

116.7
116.8	Subd. 2.Business and Community 
Development

116.9	Appropriations by Fund
	
116.10	General
	55,960,000
	49,847,000
	
116.11	Remediation
	700,000
	700,000
	
116.12 	(a)(1) $17,350,000 the first year and 
116.13 	$13,500,000 the second year are for the 
116.14 	Minnesota investment fund under Minnesota 
116.15 	Statutes, section 116J.8731. Of this amount, 
116.16 	the commissioner of employment and 
116.17 	economic development may use up to three 
116.18 	percent for administrative expenses and 
116.19 	technology upgrades. This appropriation is 
116.20 	available until June 30, 2019.
116.21 	(2) Of the amount appropriated in fiscal year 
116.22 	2016, $4,000,000 is for a loan to construct a 
116.23 	$10,000,000 aircraft manufacturing facility. 
116.24 	Funds available under this clause may be 
116.25 	used for purchases of materials and supplies 
116.26 	made from July 1, 2015, through June 30, 
116.27 	2016, and which are directly related to the 
116.28 	construction of the aircraft manufacturing 
116.29 	facility. This loan is not subject to the 
116.30 	limitations under Minnesota Statutes, section 
116.31 	116J.8731, subdivision 5. The commissioner 
116.32 	shall forgive the loan after verification that 
116.33 	the project has satisfied performance goals 
116.34 	and contractual obligations as required 
116.35 	under Minnesota Statutes, section 116J.8731, 
117.1 	subdivision 7. The amount available under 
117.2 	this clause is available until June 30, 2019.
117.3 	(3) Of the amount appropriated in fiscal year 
117.4 	2016, $12,000,000 is for a loan to construct 
117.5 	a biochemical facility that uses cellulosic 
117.6 	feedstock to produce chemical products. 
117.7 	This loan is not subject to the limitations 
117.8 	under Minnesota Statutes, section 116J.8731, 
117.9 	subdivision 5, and shall be matched by money 
117.10 	designated by the Iron Range Resources and 
117.11 	Rehabilitation Board. The commissioner 
117.12 	shall forgive the loan after verification that 
117.13 	the project has satisfied performance goals 
117.14 	and contractual obligations as required 
117.15 	under Minnesota Statutes, section 116J.8731, 
117.16 	subdivision 7. The amount available under 
117.17 	this clause is available until June 30, 2019.
117.18 	(4) Of the amount appropriated in fiscal 
117.19 	year 2017, $1,000,000 is for a grant to a 
117.20 	solid waste management company in Delano 
117.21 	for site development and planning for an 
117.22 	innovative municipal solid waste processing 
117.23 	facility with an annual capacity of up to 
117.24 	125,000 tons as a demonstration project 
117.25 	to manage  organics through the use of an 
117.26 	emerging technology to recover organic 
117.27 	material and nonrecyclable paper, which 
117.28 	represents half the volume of material that is 
117.29 	currently placed in a landfill, and process it 
117.30 	in a high solids anaerobic digester to produce 
117.31 	Class I or II compost and compressed natural 
117.32 	gas for use in the company's solid waste 
117.33 	collection vehicles. This appropriation 
117.34 	requires a match from nonstate sources, 
117.35 	which may not include funds that have 
118.1 	already been expended on the project or 
118.2 	in-kind contributions.
118.3 	(5) Of the amount appropriated in fiscal year 
118.4 	2016, $350,000 is for the Harbor at Tower 
118.5 	project to reestablish navigable access to the 
118.6 	harbor. This appropriation is available until 
118.7 	June 30, 2019.
118.8 	(6) Of the amount appropriated in fiscal year 
118.9 	2016, $1,000,000 is for reconstruction and 
118.10 	expansion of a runway at the Duluth airport. 
118.11 	This appropriation is available until June 30, 
118.12 	2019.
118.13 	(b) $12,500,000 each year is for the 
118.14 	Minnesota job creation fund under Minnesota 
118.15 	Statutes, section 116J.8748. Of this amount, 
118.16 	the commissioner of employment and 
118.17 	economic development may use up to three 
118.18 	percent for administrative expenses. This 
118.19 	appropriation is available until June 30, 
118.20 	2019. The base amount for fiscal year 2018 
118.21 	and thereafter is $10,324,000.
118.22 	(c) $1,272,000 each year is from the 
118.23 	general fund for contaminated site cleanup 
118.24 	and development grants under Minnesota 
118.25 	Statutes, sections 116J.551 to 116J.558. This 
118.26 	appropriation is available until June 30, 2019.
118.27 	(d) $700,000 each year is from the 
118.28 	remediation fund for contaminated site 
118.29 	cleanup and development grants under 
118.30 	Minnesota Statutes, sections 116J.551 to 
118.31 	116J.558. This appropriation is available 
118.32 	until June 30, 2019.
118.33 	(e) $4,425,000 each year is from the 
118.34 	general fund for the business development 
118.35 	competitive grant program. Of this 
119.1 	amount, up to three percent is for 
119.2 	administration and monitoring of the 
119.3 	business development competitive grant 
119.4 	program. The commissioner shall award 
119.5 	grants to applicants that received a business 
119.6 	development grant in the previous biennium 
119.7 	through the competitive grant program, 
119.8 	or were named in Laws 2013, chapter 85, 
119.9 	or Laws 2014, chapter 312. Remaining 
119.10 	amounts shall be used to increase grant 
119.11 	awards compared to the previous biennium 
119.12 	and for new grantees. All grant awards shall 
119.13 	be for two consecutive years. Grants shall be 
119.14 	awarded in the first year.
119.15 	A Minnesota-based nonprofit with 
119.16 	demonstrated expertise in water technology 
119.17 	research and development is eligible to 
119.18 	apply for a business development grant 
119.19 	under this paragraph in order to establish a 
119.20 	water technology cluster development pilot 
119.21 	program.
119.22 	(f) $4,195,000 each year is from the general 
119.23 	fund for the Minnesota job skills partnership 
119.24 	program under Minnesota Statutes, sections 
119.25 	116L.01 to 116L.17. If the appropriation for 
119.26 	either year is insufficient, the appropriation 
119.27 	for the other year is available.
119.28 	(g) $12,000 each year is from the general 
119.29 	fund for a grant to the Upper Minnesota Film 
119.30 	Office.
119.31 	(h) $325,000 each year is from the general 
119.32 	fund for the Minnesota Film and TV Board. 
119.33 	The appropriation in each year is available 
119.34 	only upon receipt by the board of $1 in 
119.35 	matching contributions of money or in-kind 
120.1 	contributions from nonstate sources for every 
120.2 	$3 provided by this appropriation, except that 
120.3 	each year up to $50,000 is available on July 
120.4 	1 even if the required matching contribution 
120.5 	has not been received by that date.
120.6 	(i) $6,500,000 each year is from the general 
120.7 	fund for a grant to the Minnesota Film 
120.8 	and TV Board for the film production jobs 
120.9 	program under Minnesota Statutes, section 
120.10 	116U.26. This appropriation is available 
120.11 	until June 30, 2019. The base amount for 
120.12 	fiscal year 2018 and thereafter is $1,500,000.
120.13 	(j) $875,000 each year is from the general 
120.14 	fund for the host community economic 
120.15 	development program established in 
120.16 	Minnesota Statutes, section 116J.548.
120.17 	(k) $1,373,000 in fiscal year 2016 is for the 
120.18 	workforce housing grants pilot program in 
120.19 	Laws 2014, chapter 308, article 6, section 14. 
120.20 	This appropriation is onetime and is available 
120.21 	until June 30, 2018. The commissioner of 
120.22 	employment and economic development may 
120.23 	use up to five percent for administrative costs.
120.24 	(l) $2,000,000 each year is for the workforce 
120.25 	housing grant program in Minnesota Statutes, 
120.26 	section 116J.549. Of this amount, up to five 
120.27 	percent is for administration and monitoring 
120.28 	of the program. The first year appropriation 
120.29 	is available until June 30, 2019. The second 
120.30 	year appropriation is available until June 30, 
120.31 	2020.
120.32 	(m) $500,000 each year is for grants to 
120.33 	small business development centers under 
120.34 	Minnesota Statutes, section 116J.68. Funds 
120.35 	made available under this paragraph may be 
121.1 	used to match funds under the federal Small 
121.2 	Business Development Center (SBDC) 
121.3 	program under United States Code, title 15, 
121.4 	section 648, provide consulting and technical 
121.5 	services, or to build additional SBDC 
121.6 	network capacity to serve entrepreneurs 
121.7 	and small businesses. The commissioner 
121.8 	shall allocate funds equally among the nine 
121.9 	regional centers and the lead center.
121.10 	(n) $600,000 the first year is for a grant to 
121.11 	a city of the second class that is designated 
121.12 	as an economically depressed area by the 
121.13 	United States Department of Commerce for 
121.14 	economic development, redevelopment, and 
121.15 	job creation programs and projects. This 
121.16 	appropriation is available until June 30, 
121.17 	2019. Of this amount, up to $100,000 is for 
121.18 	a grant to the St. Paul Port Authority for a 
121.19 	feasibility study to solve access issues in and 
121.20 	around Barge Channel Road. This amount 
121.21 	for the feasibility study is contingent upon 
121.22 	receipt of matching dollars from the Union 
121.23 	Pacific Railroad.
121.24 	(o) $255,000 the first year for grants to 
121.25 	the Neighborhood Development Center 
121.26 	for the small business incubator program. 
121.27 	Of this amount, $155,000 is for capital 
121.28 	improvements to existing small business 
121.29 	incubators, and $100,000 is for the creation 
121.30 	and operation of a small business incubator 
121.31 	revolving fund to assist in the acquisition 
121.32 	and development of property for additional 
121.33 	small business incubators. This is a onetime 
121.34 	appropriation.
122.1 	(p) $35,000 the first year is for an economic 
122.2 	development grant for the city of Delano.

122.3	Subd. 3.Workforce Development

122.4	Appropriations by Fund
	
122.5	General
	4,489,000
	2,289,000
	
122.6
122.7	Workforce 
Development
	19,042,000
	19,042,000
	
122.8 	(a) $1,039,000 each year from the general 
122.9 	fund and $6,244,000 each year from the 
122.10 	workforce development fund are for the 
122.11 	adult workforce development competitive 
122.12 	grant program. Of this amount, up to three 
122.13 	percent is for administration and monitoring 
122.14 	of the program. The commissioner shall 
122.15 	award grants to applicants that received an 
122.16 	adult workforce development grant in the 
122.17 	previous biennium through the competitive 
122.18 	grant program, or were named in Laws 2013, 
122.19 	chapter 85, or Laws 2014, chapter 312. 
122.20 	Remaining amounts shall be used to increase 
122.21 	grant awards compared to the previous 
122.22 	biennium and for new grantees. All grant 
122.23 	awards shall be for two consecutive years. 
122.24 	Grants shall be awarded in the first year.
122.25 	(b) $4,500,000 each year is from the 
122.26 	workforce development fund for the 
122.27 	Minnesota youth program under Minnesota 
122.28 	Statutes, sections 116L.56 and 116L.561, to 
122.29 	provide employment and career counseling 
122.30 	to youth, including career guidance in 
122.31 	secondary schools, to address the youth 
122.32 	career counseling deficiency, to carry out 
122.33 	activities outlined in Minnesota Statutes, 
122.34 	section 116L.561, to provide support 
122.35 	services, and to provide work experience to 
122.36 	youth in the workforce service areas. The 
123.1 	funds in this paragraph may be used for 
123.2 	expansion of the pilot program combining 
123.3 	career and higher education advising in 
123.4 	Laws 2013, chapter 85, article 3, section 27. 
123.5 	Activities in workforce services areas under 
123.6 	this paragraph may serve all youth up to age 
123.7 	24.
123.8 	(c) $1,000,000 each year is from the 
123.9 	workforce development fund for the 
123.10 	youthbuild program under Minnesota 
123.11 	Statutes, sections 116L.361 to 116L.366.
123.12 	(d) $450,000 each year is from the workforce 
123.13 	development fund for a grant to Minnesota 
123.14 	Diversified Industries, Inc., to provide 
123.15 	progressive development and employment 
123.16 	opportunities for people with disabilities.
123.17 	(e) $2,848,000 each year is from the 
123.18 	workforce development fund for the youth 
123.19 	workforce development competitive grant 
123.20 	program. Of this amount, up to three percent 
123.21 	is for administration and monitoring of the 
123.22 	youth workforce development competitive 
123.23 	grant program. The commissioner shall 
123.24 	award grants to applicants that received a 
123.25 	youth workforce development grant in the 
123.26 	previous biennium through the competitive 
123.27 	grant program, or were named in Laws 2013, 
123.28 	chapter 85, or Laws 2014, chapter 312. 
123.29 	Remaining amounts shall be used to increase 
123.30 	grant awards compared to the previous 
123.31 	biennium and for new grantees. All grant 
123.32 	awards shall be for two consecutive years. 
123.33 	Grants shall be awarded in the first year.
123.34 	(f) $1,500,000 each year is from the 
123.35 	workforce development fund for a grant 
124.1 	to FastTRAC-Minnesota Adult Careers 
124.2 	Pathways Program.
124.3 	(g) $1,500,000 each year is from the 
124.4 	workforce development fund for the 
124.5 	Opportunities Industrialization Center 
124.6 	programs. Of this amount, $1,000,000 each 
124.7 	year is for the Emerging Workforce Coalition.
124.8 	(h) $750,000 each year is from the workforce 
124.9 	development fund for a grant to the 
124.10 	Minnesota Alliance of Boys and Girls 
124.11 	Clubs to administer a statewide project 
124.12 	of youth jobs skills development. This 
124.13 	project, which may have career guidance 
124.14 	components, including health and life skills, 
124.15 	is to encourage, train, and assist youth in 
124.16 	job-seeking skills, workplace orientation, 
124.17 	and job-site knowledge through coaching. 
124.18 	This grant requires a 25 percent match from 
124.19 	nonstate resources.
124.20 	(i) $500,000 each year is for the publication, 
124.21 	dissemination, and use of labor market 
124.22 	information under Minnesota Statutes, 
124.23 	section 116J.4011, and for pilot programs 
124.24 	in the workforce service areas to combine 
124.25 	career and higher education advising.
124.26 	(j) $250,000 each year is from the workforce 
124.27 	development fund for a grant to Big 
124.28 	Brothers, Big Sisters of the Greater Twin 
124.29 	Cities for workforce readiness, employment 
124.30 	exploration, and skills development for 
124.31 	youth ages 12 to 21. The grant must serve 
124.32 	youth in the Twin Cities, Central Minnesota, 
124.33 	and Southern Minnesota Big Brothers, Big 
124.34 	Sisters chapters.
125.1 	(k) $400,000 in fiscal year 2016 is for a grant 
125.2 	to YWCA Saint Paul for training and job 
125.3 	placement assistance, including commercial 
125.4 	driver's license training, through the job 
125.5 	placement and retention program. This is a 
125.6 	onetime appropriation.
125.7 	(l) $250,000 each year is for a grant to 
125.8 	Occupational Development Corporation, Inc. 
125.9 	in the city of Buhl to provide training and 
125.10 	employment opportunities for people with 
125.11 	disabilities and disadvantaged workers. This 
125.12 	is a onetime appropriation.
125.13 	(m) $150,000 in fiscal year 2016 is for an 
125.14 	analysis of various options for the delivery 
125.15 	of a family medical leave insurance program 
125.16 	and associated costs and benefits. This is a 
125.17 	onetime appropriation.
125.18 	The commissioner shall report to the 
125.19 	legislative committees with jurisdiction over 
125.20 	labor, jobs, and health and human services 
125.21 	on the results of its analysis by December 
125.22 	15, 2015.
125.23 	(n) $500,000 each year is for rural career 
125.24 	counseling coordinator positions in the 
125.25 	workforce service areas and for the purposes 
125.26 	specified in Minnesota Statutes, section 
125.27 	116L.667. The commissioner, in consultation 
125.28 	with local workforce investment boards and 
125.29 	local elected officials in each of the service 
125.30 	areas receiving funds, shall develop a method 
125.31 	of distributing funds to provide equitable 
125.32 	services across workforce service areas.
125.33 	(o) $500,000 each year is for a grant to the 
125.34 	Eastside Enterprise Center for economic 
125.35 	development and job creation, including 
126.1 	loans, business and workforce training, and 
126.2 	business assistance. This appropriation 
126.3 	shall be divided equally between African 
126.4 	Economic Development Solutions, the Asian 
126.5 	Economic Development Association, and the 
126.6 	Latino Economic Development Center. This 
126.7 	is a onetime appropriation.
126.8 	(p) $150,000 each year is for a grant to 
126.9 	Ujamaa Place for implementation of paid 
126.10 	internships through the employment and 
126.11 	career preparation program. This is a 
126.12 	onetime appropriation.
126.13 	(q) $500,000 the first year is for a grant 
126.14 	to Northern Bedrock Historic Preservation 
126.15 	Corps for the pathway to the preservation 
126.16 	trades program for recruitment of corps 
126.17 	members, engagement of technical 
126.18 	specialists, development of a certificate 
126.19 	program, and skill development in historic 
126.20 	preservation for youth ages 18 to 25. This is 
126.21 	a onetime appropriation.
126.22 	(r) $500,000 the first year is for the "Getting 
126.23 	to Work" grant program. This is a onetime 
126.24 	appropriation and is available until June 30, 
126.25 	2019.

126.26	Subd. 4.General Support Services

126.27	Appropriations by Fund
	
126.28	General
	2,659,000
	2,854,000
	
126.29
126.30	Workforce 
Development
	9,000
	17,000
	
126.31 	(a) $150,000 each year is from the general 
126.32 	fund for the cost-of-living study required 
126.33 	under Minnesota Statutes, section 116J.013.
126.34 	(b) $1,300,000 each year is for operating the 
126.35 	Olmstead Implementation Office. The base 
127.1 	appropriation for the office is $1,269,000 in 
127.2 	fiscal year 2018 and $1,269,000 in fiscal year 
127.3 	2019.

127.4	Subd. 5.Minnesota Trade Office
 		2,292,000
		2,292,000
	
127.5 	(a) $300,000 each year is for the STEP grants 
127.6 	in Minnesota Statutes, section 116J.979.
127.7 	(b) $180,000 each year is for the Invest 
127.8 	Minnesota Marketing Initiative in Minnesota 
127.9 	Statutes, section 116J.9781.
127.10 	(c) $270,000 each year is for the expansion 
127.11 	of Minnesota Trade Offices under Minnesota 
127.12 	Statutes, section 116J.978.
127.13 	(d) $50,000 each year is for the trade policy 
127.14 	advisory group under Minnesota Statutes, 
127.15 	section 116J.9661.

127.16	Subd. 6.Vocational Rehabilitation

127.17	Appropriations by Fund
	
127.18	General
	23,803,000
	22,053,000
	
127.19
127.20	Workforce 
Development
	8,255,000
	8,255,000
	
127.21 	(a) $10,800,000 each year is from the general 
127.22 	fund for the state's vocational rehabilitation 
127.23 	program under Minnesota Statutes, chapter 
127.24 	268A.
127.25 	(b) $2,953,000 each year is from the general 
127.26 	fund for grants to centers for independent 
127.27 	living under Minnesota Statutes, section 
127.28 	268A.11.
127.29 	(c) $5,745,000 each year from the general 
127.30 	fund and $7,580,000 each year from the 
127.31 	workforce development fund are for extended 
127.32 	employment services for persons with severe 
127.33 	disabilities under Minnesota Statutes, section 
127.34 	268A.15.
128.1 	(d) $2,555,000 each year is from the general 
128.2 	fund for grants to programs that provide 
128.3 	employment support services to persons with 
128.4 	mental illness under Minnesota Statutes, 
128.5 	sections 268A.13 and 268A.14.
128.6 	(e) $675,000 each year is from the workforce 
128.7 	development fund for grants under 
128.8 	Minnesota Statutes, section 268A.16, for 
128.9 	employment services for persons, including 
128.10 	transition-aged youth, who are deaf, 
128.11 	deafblind, or hard-of-hearing. If the amount 
128.12 	in the first year is insufficient, the amount in 
128.13 	the second year is available in the first year.
128.14 	(f) $1,000,000 in fiscal year 2016 is for a 
128.15 	grant to a statewide nonprofit organization 
128.16 	that is exclusively dedicated to the issues 
128.17 	of access to and the acquisition of assistive 
128.18 	technology. The purpose of the grant is 
128.19 	to acquire assistive technology and to 
128.20 	work in tandem with individuals using this 
128.21 	technology to create career paths. This is a 
128.22 	onetime appropriation.
128.23 	(g) $750,000 the first year is for grants to 
128.24 	day training and habilitation providers to 
128.25 	provide innovative employment options 
128.26 	and to advance community integration for 
128.27 	persons with disabilities as required under 
128.28 	the Minnesota Olmstead Plan. Of this 
128.29 	amount, $250,000 is for a pilot program 
128.30 	for home-based, technology-enhanced 
128.31 	monitoring of persons with disabilities. 
128.32 	Unexpended funds for fiscal year 2016 do 
128.33 	not cancel but are available in fiscal year 
128.34 	2017. This is a onetime appropriation. 
129.1 	(h) For purposes of this subdivision, 
129.2 	Minnesota Diversified Industries, Inc. is an 
129.3 	eligible provider of services for persons with 
129.4 	severe disabilities under Minnesota Statutes, 
129.5 	section 268A.15.

129.6	Subd. 7.Services for the Blind
 		5,925,000
		5,925,000
	
129.7 	$50,000 the first year and $50,000 the second 
129.8 	year must be used to provide services for 
129.9 	senior citizens who are becoming blind. At 
129.10 	least half of these amounts must be used to 
129.11 	provide training services for seniors who are 
129.12 	becoming blind and must be administered 
129.13 	at an Adjustment to Blindness Center in the 
129.14 	state. The training services must provide 
129.15 	independent living skills to seniors who are 
129.16 	becoming blind to allow them to continue to 
129.17 	live independently in their homes.

129.18	Subd. 8.Broadband Development
 		17,750,000
		250,000
	
129.19 	(a) $250,000 each year is for the Broadband 
129.20 	Development Office.
129.21 	(b)(1) $17,000,000 in fiscal year 2016 is for 
129.22 	deposit in the border-to-border broadband 
129.23 	fund account created under Minnesota 
129.24 	Statutes, section 116J.396, and may be used 
129.25 	for the purposes provided in Minnesota 
129.26 	Statutes, section 116J.395. This is a onetime 
129.27 	appropriation and is available until June 30, 
129.28 	2017.
129.29 	(2) Of the appropriation in clause (1), up 
129.30 	to three percent of this amount is for costs 
129.31 	incurred by the commissioner to administer 
129.32 	Minnesota Statutes, section 116J.395. 
129.33 	Administrative costs may include the 
129.34 	following activities related to measuring 
129.35 	progress toward the state's broadband goals 
130.1 	established in Minnesota Statutes, section 
130.2 	237.012:
130.3 	(i) collecting broadband deployment data 
130.4 	from Minnesota providers, verifying its 
130.5 	accuracy through on-the-ground testing, and 
130.6 	creating state and county maps available 
130.7 	to the public showing the availability of 
130.8 	broadband service at various upload and 
130.9 	download speeds throughout Minnesota;
130.10 	(ii) analyzing the deployment data collected 
130.11 	to help inform future investments in 
130.12 	broadband infrastructure; and
130.13 	(iii) conducting business and residential 
130.14 	surveys that measure broadband adoption 
130.15 	and use in the state.
130.16 	(3) Data provided by a broadband provider 
130.17 	under this paragraph is nonpublic data 
130.18 	under Minnesota Statutes, section 13.02, 
130.19 	subdivision 9. Maps produced under this 
130.20 	paragraph are public data under Minnesota 
130.21 	Statutes, section 13.03.

130.22	Subd. 9.Transfer.
 					
130.23 	The commissioner shall transfer $8,000,000 
130.24 	from the Minnesota minerals 21st century 
130.25 	fund to the commissioner of the Iron Range 
130.26 	Resources and Rehabilitation Board for 
130.27 	a grant or forgivable loan to construct a 
130.28 	biochemical facility that uses cellulosic 
130.29 	feedstock to produce chemical products. The 
130.30 	amount available under this subdivision shall 
130.31 	be matched by money designated by the Iron 
130.32 	Range Resources and Rehabilitation Board 
130.33 	and is available until June 30, 2019.

130.34	Sec. 3. HOUSING FINANCE AGENCY

131.1	Subdivision 1.Total Appropriation
 	$
	62,258,000
	$
	52,258,000
	
131.2 	The amounts that may be spent for each 
131.3 	purpose are specified in the following 
131.4 	subdivisions.
131.5 	Unless otherwise specified, this appropriation 
131.6 	is for transfer to the housing development 
131.7 	fund for the programs specified in this 
131.8 	section. Except as otherwise indicated, this 
131.9 	transfer is part of the agency's permanent 
131.10 	budget base.

131.11	Subd. 2.Challenge Program
 		21,425,000
		13,425,000
	
131.12 	(a) This appropriation is for the economic 
131.13 	development and housing challenge program 
131.14 	under Minnesota Statutes, section 462A.33. 
131.15 	The agency must continue to strengthen its 
131.16 	efforts to address the disparity rate between 
131.17 	white households and indigenous American 
131.18 	Indians and communities of color. Of this 
131.19 	amount, $1,208,000 each year shall be made 
131.20 	available during the first 11 months of the 
131.21 	fiscal year exclusively for housing projects 
131.22 	for indigenous American Indians. Any 
131.23 	funds not committed to housing projects for 
131.24 	indigenous American Indians in the first 11 
131.25 	months of the fiscal year shall be available 
131.26 	for any eligible activity under Minnesota 
131.27 	Statutes, section 462A.33.
131.28 	(b)(1) $8,000,000 the first year is a onetime 
131.29 	appropriation and is targeted for housing in 
131.30 	communities and regions that have:
131.31 	(i) low housing vacancy rates;
131.32 	(ii) cooperatively developed a plan that 
131.33 	identifies current and future housing needs;
131.34 	(iii) evidence of anticipated job expansion; or
132.1 	(iv) a significant portion of area employees 
132.2 	who commute more than 30 miles between 
132.3 	their residence and their employment.
132.4 	(2) Among comparable housing proposals, 
132.5 	preference must be given to proposals that:
132.6 	(i) include a meaningful contribution from 
132.7 	area employers that reduces the need for 
132.8 	deferred loan or grant funds from state 
132.9 	resources; or
132.10 	(ii) provide housing opportunities for an 
132.11 	expanded range of household incomes 
132.12 	within a community or that provide housing 
132.13 	opportunities for a wide range of incomes 
132.14 	within the development.
132.15 	(c) The base amount for this program in fiscal 
132.16 	year 2018 and thereafter is $12,925,000.

132.17	Subd. 3.Housing Trust Fund
 		13,646,000
		11,646,000
	
132.18 	(a) This appropriation is for deposit in the 
132.19 	housing trust fund account created under 
132.20 	Minnesota Statutes, section 462A.201, and 
132.21 	may be used for the purposes provided in 
132.22 	that section. To the extent that these funds 
132.23 	are used for the acquisition of housing, the 
132.24 	agency shall give priority among comparable 
132.25 	projects to projects that focus on creating 
132.26 	safe and stable housing for homeless youth 
132.27 	or projects that provide housing to trafficked 
132.28 	women and children.
132.29 	(b) $2,000,000 the first year is a onetime 
132.30 	appropriation for temporary rental assistance 
132.31 	for families with school-age children who 
132.32 	have changed their school or home at least 
132.33 	once in the last school year. The agency, 
132.34 	in consultation with the Department of 
133.1 	Education, may establish additional targeting 
133.2 	criteria.

133.3	Subd. 4.Rental Assistance for Mentally Ill
 		4,088,000
		4,088,000
	
133.4 	This appropriation is for the rental housing 
133.5 	assistance program for persons with a mental 
133.6 	illness or families with an adult member with 
133.7 	a mental illness under Minnesota Statutes, 
133.8 	section 462A.2097. Among comparable 
133.9 	proposals, the agency shall prioritize those 
133.10 	proposals that target, in part, eligible persons 
133.11 	who desire to move to more integrated, 
133.12 	community-based settings.

133.13	Subd. 5.Family Homeless Prevention
 		9,269,000
		9,269,000
	
133.14 	This appropriation is for the family homeless 
133.15 	prevention and assistance programs under 
133.16 	Minnesota Statutes, section 462A.204. The 
133.17 	base amount for this program in fiscal year 
133.18 	2018 and thereafter is $8,519,000.
133.19 	Of this amount, $500,000 the first year is for 
133.20 	a onetime appropriation for a grant to Better 
133.21 	Futures Minnesota for temporary housing and 
133.22 	rental assistance for adults who have been 
133.23 	released from state correctional facilities or 
133.24 	on supervised release in the community who 
133.25 	are homeless or at risk of becoming homeless.

133.26	Subd. 6.Home Ownership Assistance Fund
 		885,000
		885,000
	
133.27 	This appropriation is for the home ownership 
133.28 	assistance program under Minnesota 
133.29 	Statutes, section 462A.21, subdivision 8. 
133.30 	The agency shall continue to strengthen 
133.31 	its efforts to address the disparity gap in 
133.32 	the homeownership rate between white 
133.33 	households and indigenous American Indians 
133.34 	and communities of color.

134.1	Subd. 7.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
134.2 	(a) This appropriation is for the affordable 
134.3 	rental investment fund program under 
134.4 	Minnesota Statutes, section 462A.21, 
134.5 	subdivision 8b, to finance the acquisition, 
134.6 	rehabilitation, and debt restructuring of 
134.7 	federally assisted rental property and 
134.8 	for making equity take-out loans under 
134.9 	Minnesota Statutes, section 462A.05, 
134.10 	subdivision 39.
134.11 	(b) The owner of federally assisted rental 
134.12 	property must agree to participate in the 
134.13 	applicable federally assisted housing program 
134.14 	and to extend any existing low-income 
134.15 	affordability restrictions on the housing for 
134.16 	the maximum term permitted. The owner 
134.17 	must also enter into an agreement that gives 
134.18 	local units of government, housing and 
134.19 	redevelopment authorities, and nonprofit 
134.20 	housing organizations the right of first refusal 
134.21 	if the rental property is offered for sale. 
134.22 	Priority must be given among comparable 
134.23 	federally assisted rental properties to 
134.24 	properties with the longest remaining term 
134.25 	under an agreement for federal assistance. 
134.26 	Priority must also be given among 
134.27 	comparable rental housing developments 
134.28 	to developments that are or will be owned 
134.29 	by local government units, a housing and 
134.30 	redevelopment authority, or a nonprofit 
134.31 	housing organization. Among comparable 
134.32 	rental housing proposals, priority may be 
134.33 	given to proposals that contain identified 
134.34 	goals relating to the housing element of 
135.1 	a cooperatively developed plan that are 
135.2 	consistent with the mission of the agency.
135.3 	(c) The appropriation also may be used to 
135.4 	finance the acquisition, rehabilitation, and 
135.5 	debt restructuring of existing supportive 
135.6 	housing properties. For purposes of this 
135.7 	paragraph, "supportive housing" means 
135.8 	affordable rental housing with links to 
135.9 	services necessary for individuals, youth, and 
135.10 	families with children to maintain housing 
135.11 	stability.

135.12	Subd. 8.Housing Rehabilitation
 		6,765,000
		6,765,000
	
135.13 	This appropriation is for the housing 
135.14 	rehabilitation program under Minnesota 
135.15 	Statutes, section 462A.05, subdivision 14. Of 
135.16 	this amount, $3,022,000 each year is for the 
135.17 	rehabilitation of owner-occupied housing and 
135.18 	$3,743,000 each year is for the rehabilitation 
135.19 	of eligible rental housing. In administering a 
135.20 	rehabilitation program for rental housing, the 
135.21 	agency may apply the processes and priorities 
135.22 	adopted for administration of the economic 
135.23 	development and housing challenge program 
135.24 	under Minnesota Statutes, section 462A.33. 
135.25 	The base amount for the rehabilitation of the 
135.26 	owner-occupied housing program in fiscal 
135.27 	year 2018 and thereafter is $2,772,000.

135.28
135.29	Subd. 9.Homeownership Education, 
Counseling, and Training
 		857,000
		857,000
	
135.30 	This appropriation is for the homeownership 
135.31 	education, counseling, and training program 
135.32 	under Minnesota Statutes, section 462A.209. 
135.33 	Priority may be given to funding programs 
135.34 	that are aimed at culturally specific groups 
136.1 	who are providing services to members of 
136.2 	their communities.

136.3	Subd. 10.Capacity Building Grants
 		770,000
		770,000
	
136.4 	(a) This appropriation is for nonprofit 
136.5 	capacity building grants under Minnesota 
136.6 	Statutes, section 462A.21, subdivision 3b. 
136.7 	Of this amount, $250,000 each year is 
136.8 	for support of the Homeless Management 
136.9 	Information System (HMIS).
136.10 	(b) $250,000 each year is for competitive 
136.11 	grants to community organizations to provide 
136.12 	long-term financial education training, case 
136.13 	management, credit mending, homebuyer 
136.14 	education, and foreclosure prevention 
136.15 	mitigation services according to Laws 2014, 
136.16 	chapter 188, section 4, paragraph (c).
136.17 	(c) $85,000 each year is for a grant to Open 
136.18 	Access Connection to provide free voice mail 
136.19 	services for homeless and low-income people 
136.20 	throughout Minnesota so that they have a 
136.21 	reliable and consistent communication tool 
136.22 	to aid in their search for affordable housing 
136.23 	and to help those individuals find and keep 
136.24 	jobs that will allow them to maintain their 
136.25 	housing. In addition to programs already 
136.26 	available in greater Minnesota, $15,000 each 
136.27 	year must be used to increase use of and 
136.28 	access to community voice mail in the areas 
136.29 	outside the seven-county metropolitan area. 
136.30 	This is a onetime appropriation.

136.31	Sec. 4. EXPLORE MINNESOTA TOURISM
 	$
	14,053,000
	$
	14,118,000
	
136.32 	To develop maximum private sector 
136.33 	involvement in tourism, $500,000 in fiscal 
136.34 	year 2016 and $500,000 in fiscal year 2017 
137.1 	must be matched by Explore Minnesota 
137.2 	Tourism from nonstate sources. Each $1 of 
137.3 	state incentive must be matched with $6 of 
137.4 	private sector funding. Cash match is defined 
137.5 	as revenue to the state or documented cash 
137.6 	expenditures directly expended to support 
137.7 	Explore Minnesota Tourism programs. Up 
137.8 	to one-half of the private sector contribution 
137.9 	may be in-kind or soft match. The incentive 
137.10 	in fiscal year 2016 shall be based on fiscal 
137.11 	year 2015 private sector contributions. The 
137.12 	incentive in fiscal year 2017 shall be based on 
137.13 	fiscal year 2016 private sector contributions.
137.14 	Funding for the marketing grants is available 
137.15 	either year of the biennium. Unexpended 
137.16 	grant funds from the first year are available 
137.17 	in the second year.
137.18 	$100,000 each year is for a grant to the 
137.19 	Northern Lights International Music Festival.
137.20 	$200,000 in fiscal year 2016 is for a grant 
137.21 	to Minnesota Golden Games for promotion 
137.22 	and hosting activities related to the 2015 
137.23 	National Senior Games to be held in venues 
137.24 	throughout the Twin Cities metropolitan 
137.25 	area. This is a onetime appropriation.

137.26
137.27	Sec. 5. DEPARTMENT OF LABOR AND 
INDUSTRY

137.28	Subdivision 1.Total Appropriation
 	$
	27,022,000
	$
	27,332,000

137.29	Appropriations by Fund
	
137.30		2016
	2017
	
137.31	General
	1,234,000
	1,252,000
	
137.32
137.33	Workers' 
Compensation
	24,145,000
	24,423,000
	
137.34
137.35	Workforce 
Development
	1,643,000
	1,657,000
	
138.1 	The amounts that may be spent for each 
138.2 	purpose are specified in the following 
138.3 	subdivisions.

138.4	Subd. 2.Workers' Compensation
 		13,952,000
		14,230,000
	
138.5 	(a) This appropriation is from the workers' 
138.6 	compensation fund.
138.7 	(b)(1) $3,000,000 each year is for workers' 
138.8 	compensation system upgrades. The base 
138.9 	appropriation for fiscal year 2020 and beyond 
138.10 	is zero.
138.11 	(2) This appropriation includes funds for 
138.12 	information technology project services 
138.13 	and support subject to the provisions of 
138.14 	Minnesota Statutes, section 16E.0466. 
138.15 	Any ongoing information technology costs 
138.16 	must be incorporated into the service level 
138.17 	agreement and will be paid to the Office 
138.18 	of MN.IT Services by the commissioner 
138.19 	of labor and industry under the rates and 
138.20 	mechanisms specified in that agreement.

138.21	Subd. 3.Labor Standards and Apprenticeship

138.22	Appropriations by Fund
	
138.23	General
	1,234,000
	1,252,000
	
138.24
138.25	Workforce 
Development
	1,643,000
	1,657,000
	
138.26 	(a) $834,000 in fiscal year 2016 and $852,000 
138.27 	in fiscal year 2017 are from the general fund 
138.28 	for the labor standards and apprenticeship 
138.29 	program.
138.30 	(b) $1,143,000 in fiscal year 2016 and 
138.31 	$1,157,000 in fiscal year 2017 are from 
138.32 	the workforce development fund for the 
138.33 	apprenticeship program under Minnesota 
138.34 	Statutes, chapter 178. Of this amount, 
138.35 	$100,000 each year is for labor education and 
139.1 	advancement program grants and to expand 
139.2 	and promote registered apprenticeship 
139.3 	training in nonconstruction trade programs.
139.4 	(c) $150,000 each year is from the workforce 
139.5 	development fund for prevailing wage 
139.6 	enforcement.
139.7 	(d) $100,000 each year is from the workforce 
139.8 	development fund for grants to community 
139.9 	organizations for the purpose of outreach and 
139.10 	education for employees regarding employee 
139.11 	rights under Minnesota Statutes, chapters 
139.12 	177 and 181. The community organizations 
139.13 	must be selected based on their experience, 
139.14 	capacity, and relationships in high-violation 
139.15 	industries.
139.16 	(e) $250,000 each year is from the workforce 
139.17 	development fund for additional compliance 
139.18 	and enforcement activities by the labor 
139.19 	standards unit related to Minnesota Statutes, 
139.20 	chapters 177 and 181.
139.21 	(f) $50,000 each year is from the general fund 
139.22 	for annual reports to the legislature including, 
139.23 	but not limited to, the following information:
139.24 	(1) a list of all violations of the statutory 
139.25 	sections listed in Minnesota Statutes, section 
139.26 	177.27, subdivision 4, including the name 
139.27 	of the employer involved, and the nature of 
139.28 	any violations; and
139.29 	(2) an analysis of noncompliance with 
139.30 	the statutory sections listed in Minnesota 
139.31 	Statutes, section 177.27, subdivision 4, 
139.32 	including any patterns by employer, industry, 
139.33 	or county.

139.34	Subd. 4.Workplace Safety
 		4,154,000
		4,154,000
	
140.1 	This appropriation is from the workers' 
140.2 	compensation fund.

140.3	Subd. 5.General Support
 		6,039,000
		6,039,000
	
140.4 	This appropriation is from the workers' 
140.5 	compensation fund.

140.6
140.7	Sec. 6. BUREAU OF MEDIATION 
SERVICES
 	$
	2,917,000
	$
	2,734,000
	
140.8 	(a) $68,000 each year is for grants to area 
140.9 	labor management committees. Grants may 
140.10 	be awarded for a 12-month period beginning 
140.11 	July 1 each year. Any unencumbered balance 
140.12 	remaining at the end of the first year does not 
140.13 	cancel but is available for the second year.
140.14 	(b) $525,000 each year is for purposes of the 
140.15 	Public Employment Relations Board under 
140.16 	Minnesota Statutes, section 179A.041.
140.17 	(c) $250,000 in fiscal year 2016 and 
140.18 	$100,000 in fiscal year 2017 are for the 
140.19 	case management database IT project. This 
140.20 	appropriation includes funds for information 
140.21 	technology project services and support 
140.22 	subject to the provisions of Minnesota 
140.23 	Statutes, section 16E.0466. Any ongoing 
140.24 	information technology costs must be 
140.25 	incorporated into the service level agreement 
140.26 	and must be paid to the Office of MN.IT 
140.27 	Services by the commissioner of mediation 
140.28 	services under the rates and mechanisms 
140.29 	specified in that agreement.
140.30 	(d) $256,000 each year is for the Office 
140.31 	of Collaboration and Dispute Resolution 
140.32 	under Minnesota Statutes, section 179.90. 
140.33 	Of this amount, $160,000 each year is 
140.34 	for grants under Minnesota Statutes, 
141.1 	section 179.91, and $96,000 each year is 
141.2 	for intergovernmental and public policy 
141.3 	collaboration and operation of the office.

141.4
141.5	Sec. 7. WORKERS' COMPENSATION 
COURT OF APPEALS
 	$
	1,907,000
	$
	1,913,000
	
141.6 	This appropriation is from the workers' 
141.7 	compensation fund.

141.8	Sec. 8. DEPARTMENT OF COMMERCE

141.9	Subdivision 1.Total Appropriation
 	$
	35,573,000
	$
	34,740,000

141.10	Appropriations by Fund
	
141.11		2016
	2017
	
141.12	General
	32,518,000
	31,673,000
	
141.13	Special Revenue
	1,240,000
	1,240,000
	
141.14	Petroleum Tank
	1,052,000
	1,052,000
	
141.15
141.16	Workers' 
Compensation
	763,000
	775,000
	
141.17 	The amounts that may be spent for each 
141.18 	purpose are specified in the following 
141.19 	subdivisions.

141.20	Subd. 2.Financial Institutions
 		4,885,000
		4,885,000

141.21
141.22	Subd. 3.Petroleum Tank Release 
Compensation Board
 		1,052,000
		1,052,000
	
141.23 	This appropriation is from the petroleum 
141.24 	tank fund.

141.25	Subd. 4.Administrative Services
 		7,098,000
		7,353,000
	
141.26 	(a) $375,000 each year is for additional 
141.27 	compliance efforts with unclaimed property. 
141.28 	The commissioner may issue contracts for 
141.29 	these services.
141.30 	(b) $100,000 each year is for the support of 
141.31 	broadband development.
141.32 	(c) $130,000 the first year is for rulemaking 
141.33 	costs associated with MNvest registration 
142.1 	exemptions under Minnesota Statutes, section 
142.2 	80A.461. This is a onetime appropriation.

142.3	Subd. 5.Telecommunications

142.4	Appropriations by Fund
	
142.5	General
	1,009,000
	1,009,000
	
142.6	Special Revenue
	1,240,000
	1,240,000
	
142.7 	$1,240,000 each year is from the 
142.8 	telecommunication access fund for the 
142.9 	following transfers. This appropriation is 
142.10 	added to the department's base.
142.11 	(1) $800,000 each year is to the commissioner 
142.12 	of human services to supplement the ongoing 
142.13 	operational expenses of the Commission 
142.14 	of Deaf, DeafBlind, and Hard-of-Hearing 
142.15 	Minnesotans;
142.16 	(2) $290,000 each year is to the chief 
142.17 	information officer for the purpose of 
142.18 	coordinating technology accessibility and 
142.19 	usability;
142.20 	(3) $100,000 each year is to the Legislative 
142.21 	Coordinating Commission for captioning of 
142.22 	legislative coverage; and
142.23 	(4) $50,000 each year is to the Office of 
142.24 	MN.IT Services for a consolidated access 
142.25 	fund to provide grants to other state agencies 
142.26 	related to accessibility of their Web-based 
142.27 	services.

142.28	Subd. 6.Enforcement

142.29	Appropriations by Fund
	
142.30	General
	5,707,000
	5,707,000
	
142.31
142.32	Workers' 
Compensation
	201,000
	204,000
	
142.33 	$279,000 each year is from the general fund 
142.34 	for health care enforcement.

143.1	Subd. 7.Energy Resources
 		4,424,000
		3,415,000
	
143.2 	(a) $150,000 each year is for grants to 
143.3 	providers of low-income weatherization 
143.4 	services to install renewable energy 
143.5 	equipment in households that are eligible for 
143.6 	weatherization assistance under Minnesota's 
143.7 	weatherization assistance program state 
143.8 	plan as provided for in Minnesota Statutes, 
143.9 	section 239.101.
143.10 	(b) $1,000,000 in fiscal year 2016 is for 
143.11 	the state's defense of the Next Generation 
143.12 	Energy Act in Laws 2007, chapter 136. This 
143.13 	appropriation is onetime.
143.14 	(c) A Minnesota-based nonprofit with 
143.15 	demonstrated expertise and capability 
143.16 	in energy efficiency, energy technology 
143.17 	research, and conservation improvement 
143.18 	program delivery is eligible to apply for 
143.19 	an applied research and development grant 
143.20 	under Minnesota Statutes, section 216B.241, 
143.21 	subdivision 1e, in order to establish and 
143.22 	operate an energy technology business 
143.23 	accelerator. The grant recipient must provide 
143.24 	a 25 percent match for any grant amounts 
143.25 	received with cash or in-kind contributions.

143.26	Subd. 8.Insurance

143.27	Appropriations by Fund
	
143.28	General
	4,395,000
	4,304,000
	
143.29
143.30	Workers' 
Compensation
	562,000
	571,000
	
143.31 	(a) $642,000 each year is for health insurance 
143.32 	rate review staffing.
143.33 	(b) Of the amount appropriated from the 
143.34 	special revenue fund under Minnesota 
143.35 	Statutes, section 65B.84, subdivision 1, 
144.1 	paragraph (b), $100,000 is for investigation 
144.2 	of insurance company handling of motor 
144.3 	vehicle collision repair claims.
144.4 	(c) $300,000 each year is for investigation 
144.5 	and enforcement of insurance fraud under 
144.6 	Minnesota Statutes, section 45.0135, 
144.7 	subdivision 9.
144.8 	(d) $91,000 in the first year is for activities 
144.9 	of the task force on no-fault auto insurance 
144.10 	issues. This is a onetime appropriation.

144.11	Subd. 9.Propane prepurchase.
 		5,000,000
		5,000,000
	
144.12 	$5,000,000 each year is for the propane 
144.13 	prepurchase program under Minnesota 
144.14 	Statutes, section 216B.0951. This is a 
144.15 	onetime appropriation.

144.16	Sec. 9. PUBLIC UTILITIES COMMISSION
 	$
	6,966,000
	$
	6,930,000

144.17 	Sec. 10. TRANSFERS.
 144.18 	(a) Of the amount deposited into the contingent account created under Minnesota 
144.19 	Statutes, section 268.199, $3,500,000 in fiscal year 2016 and $3,500,000 in fiscal year 
144.20 	2017 shall be transferred before the closing of each fiscal year to the general fund.
144.21 	(b) Of the amount of surplus workforce development fund money reallocated 
144.22 	under Minnesota Statutes, section 116L.05, subdivision 5, by the Minnesota Job Skills 
144.23 	Partnership Board in fiscal year 2015, $6,000,000 shall be canceled and credited back to 
144.24 	the workforce development fund.

144.25 	Sec. 11. LEGAL FEES; ITASCA COUNTY.
 144.26 	The commissioner of employment and economic development shall grant the 
144.27 	unspent amount from the Minnesota minerals 21st century fund appropriation in Laws 
144.28 	2007, chapter 135, article 1, section 3, subdivision 2, paragraph (y), to Itasca County for 
144.29 	legal fees for recovering business subsidy funds according to Minnesota Statutes, section 
144.30 	116J.994, and under the reimbursement agreement dated September 9, 2008.

145.1 	ARTICLE 6
145.2 	DEPARTMENT OF LABOR AND INDUSTRY

145.3 	Section 1. Minnesota Statutes 2014, section 326B.092, subdivision 7, is amended to 
145.4 	read:
145.5 		Subd. 7.License fees and license renewal fees. (a) The license fee for each 
145.6 	license is the base license fee plus any applicable board fee, continuing education fee, and 
145.7 	contractor recovery fund fee and additional assessment, as set forth in this subdivision.
145.8 	(b) For purposes of this section, "license duration" means the number of years for 
145.9 	which the license is issued except that:
145.10 	(1) if the initial license is not issued for a whole number of years, the license duration 
145.11 	shall be rounded up to the next whole number; and
145.12 	(2) if the department receives an application for license renewal after the renewal 
145.13 	deadline, license duration means the number of years for which the renewed license would 
145.14 	have been issued if the renewal application had been submitted on time and all other 
145.15 	requirements for renewal had been met.
145.16 	(c) The base license fee shall depend on whether the license is classified as an entry 
145.17 	level, master, journeyman, or business license, and on the license duration. The base 
145.18 	license fee shall be:

145.19	License Classification
	License Duration 
		
145.20		1 Year
	2 Years
	3 Years
	
145.21	Entry level
	$10
	$20
	$30
	
145.22
145.23	Journeyman 
Journeyworker
	$20
	$40
	$60
	
145.24	Master
	$40
	$80
	$120
	
145.25	Business
	$90
	$180
	$270
	
145.26 	(d) If there is a continuing education requirement for renewal of the license, then 
145.27 	a continuing education fee must be included in the renewal license fee. The continuing 
145.28 	education fee for all license classifications shall be: $10 if the renewal license duration 
145.29 	is one year; and $20 if the renewal license duration is two years; and $30 if the renewal 
145.30 	license duration is three years.
145.31 	(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 
145.32 	326B.93, then a board fee must be included in the license fee and the renewal license fee. 
145.33 	The board fee for all license classifications shall be: $4 if the license duration is one year; 
145.34 	$8 if the license duration is two years; and $12 if the license duration is three years.
145.35 	(f) If the application is for the renewal of a license issued under sections 326B.802 
145.36 	to 326B.885, then the contractor recovery fund fee required under section 326B.89, 
146.1 	subdivision 3, and any additional assessment required under section 326B.89, subdivision 
146.2 	16, must be included in the license renewal fee.
146.3 	(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period 
146.4 	July 1, 2015, through June 30, 2017, the following fees apply:

146.5		License Classification
	License Duration
		
146.6			1 year
	2 years
	
146.7		Entry level
	$10
	$20
	
146.8		Journeyworker
	$15
	$35
	
146.9		Master
	$30
	$75
	
146.10		Business
		$160
	
146.11 	If there is a continuing education requirement for renewal of the license, then a 
146.12 	continuing education fee must be included in the renewal license fee. The continuing 
146.13 	education fee for all license classifications shall be $5.

146.14 	Sec. 2. Minnesota Statutes 2014, section 326B.096, is amended to read:
146.15 	326B.096 REINSTATEMENT OF LICENSES.
146.16 		Subdivision 1.Reinstatement after revocation. (a) If a license is revoked under 
146.17 	this chapter and if an applicant for a license needs to pass an examination administered by 
146.18 	the commissioner before becoming licensed, then, in order to have the license reinstated, 
146.19 	the person who holds the revoked license must:
146.20 	(1) retake the examination and achieve a passing score; and
146.21 	(2) meet all other requirements for an initial license, including payment of the 
146.22 	application and examination fee and the license fee. The person holding the revoked 
146.23 	license is not eligible for Minnesota licensure without examination based on reciprocity.
146.24 	(b) If a license is revoked under a chapter other than this chapter, then, in order to 
146.25 	have the license reinstated, the person who holds the revoked license must:
146.26 	(1) apply for reinstatement to the commissioner no later than two years after the 
146.27 	effective date of the revocation;
146.28 	(2) pay a $100 $50 reinstatement application fee and any applicable renewal license 
146.29 	fee; and
146.30 	(3) meet all applicable requirements for licensure, except that, unless required by the 
146.31 	order revoking the license, the applicant does not need to retake any examination and does 
146.32 	not need to repay a license fee that was paid before the revocation.
146.33 		Subd. 2.Reinstatement after suspension. If a license is suspended, then, in order 
146.34 	to have the license reinstated, the person who holds the suspended license must:
146.35 	(1) apply for reinstatement to the commissioner no later than two years after the 
146.36 	completion of the suspension period;
147.1 	(2) pay a $100 $50 reinstatement application fee and any applicable renewal license 
147.2 	fee; and
147.3 	(3) meet all applicable requirements for licensure, except that, unless required by the 
147.4 	order suspending the license, the applicant does not need to retake any examination and 
147.5 	does not need to repay a license fee that was paid before the suspension.
147.6 		Subd. 3.Reinstatement after voluntary termination. A licensee who is not an 
147.7 	individual may voluntarily terminate a license issued to the person under this chapter. If a 
147.8 	licensee has voluntarily terminated a license under this subdivision, then, in order to have 
147.9 	the license reinstated, the person who holds the terminated license must:
147.10 	(1) apply for reinstatement to the commissioner no later than the date that the license 
147.11 	would have expired if it had not been terminated;
147.12 	(2) pay a $100 $50 reinstatement application fee and any applicable renewal license 
147.13 	fee; and
147.14 	(3) meet all applicable requirements for licensure, except that the applicant does not 
147.15 	need to repay a license fee that was paid before the termination.

147.16 	EFFECTIVE DATE. The amendments to this section are effective July 1, 2015, 
147.17 	and expire July 1, 2017.

147.18 	Sec. 3. Minnesota Statutes 2014, section 326B.106, subdivision 1, is amended to read:
147.19 		Subdivision 1.Adoption of code. (a) Subject to paragraphs (c) and (d) and 
147.20 	sections 326B.101 to 326B.194, the commissioner shall by rule and in consultation 
147.21 	with the Construction Codes Advisory Council establish a code of standards for the 
147.22 	construction, reconstruction, alteration, and repair of buildings, governing matters of 
147.23 	structural materials, design and construction, fire protection, health, sanitation, and safety, 
147.24 	including design and construction standards regarding heat loss control, illumination, 
147.25 	and climate control. The code must also include duties and responsibilities for code 
147.26 	administration, including procedures for administrative action, penalties, and suspension 
147.27 	and revocation of certification. The code must conform insofar as practicable to model 
147.28 	building codes generally accepted and in use throughout the United States, including a 
147.29 	code for building conservation. In the preparation of the code, consideration must be 
147.30 	given to the existing statewide specialty codes presently in use in the state. Model codes 
147.31 	with necessary modifications and statewide specialty codes may be adopted by reference. 
147.32 	The code must be based on the application of scientific principles, approved tests, and 
147.33 	professional judgment. To the extent possible, the code must be adopted in terms of 
147.34 	desired results instead of the means of achieving those results, avoiding wherever possible 
147.35 	the incorporation of specifications of particular methods or materials. To that end the code 
148.1 	must encourage the use of new methods and new materials. Except as otherwise provided 
148.2 	in sections 326B.101 to 326B.194, the commissioner shall administer and enforce the 
148.3 	provisions of those sections.
148.4 	(b) The commissioner shall develop rules addressing the plan review fee assessed 
148.5 	to similar buildings without significant modifications including provisions for use of 
148.6 	building systems as specified in the industrial/modular program specified in section 
148.7 	326B.194. Additional plan review fees associated with similar plans must be based on 
148.8 	costs commensurate with the direct and indirect costs of the service.
148.9 	(c) Beginning with the 2018 edition of the model building codes and every six 
148.10 	years thereafter, the commissioner shall review the new model building codes and adopt 
148.11 	the model codes as amended for use in Minnesota, within two years of the published 
148.12 	edition date. The commissioner may adopt amendments to the building codes prior to the 
148.13 	adoption of the new building codes to advance construction methods, technology, or 
148.14 	materials, or, where necessary to protect the health, safety, and welfare of the public, or to 
148.15 	improve the efficiency or the use of a building.
148.16 	(d) Notwithstanding paragraph (c), the commissioner shall act on each new model 
148.17 	residential energy code and the new model commercial energy code in accordance with 
148.18 	federal law for which the United States Department of Energy has issued an affirmative 
148.19 	determination in compliance with United States Code, title 42, section 6833. The 
148.20 	commissioner may adopt amendments prior to adoption of the new energy codes, as 
148.21 	amended for use in Minnesota, to advance construction methods, technology, or materials, 
148.22 	or, where necessary to protect the health, safety, and welfare of the public, or to improve 
148.23 	the efficiency or use of a building.

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

148.26 	Sec. 4. Minnesota Statutes 2014, section 326B.106, is amended by adding a 
148.27 	subdivision to read:
148.28 		Subd. 1a.Copies of the code. The commissioner shall provide copies of the code 
148.29 	to the public without charge, including the amended model codes adopted by reference. 
148.30 	The commissioner shall calculate the cost to the department for providing copies of the 
148.31 	code to the public without charge.

148.32 	Sec. 5. Minnesota Statutes 2014, section 326B.13, subdivision 8, is amended to read:
148.33 		Subd. 8.Effective date of rules. A rule to adopt or amend the State Building Code is 
148.34 	effective 180 270 days after publication of the rule's notice of adoption in the State Register. 
149.1 	The rule may provide for a later effective date. The rule may provide for an earlier effective 
149.2 	date if the commissioner or board proposing the rule finds that an earlier effective date is 
149.3 	necessary to protect public health and safety after considering, among other things, the need 
149.4 	for time for training of individuals to comply with and enforce the rule. The commissioner 
149.5 	must publish an electronic version of the entire adopted rule chapter on the department's 
149.6 	Web site within ten days of receipt from the revisor of statutes. The commissioner shall 
149.7 	clearly indicate the effective date of the rule on the department's Web site.

149.8 	Sec. 6. Minnesota Statutes 2014, section 326B.986, subdivision 5, is amended to read:
149.9 		Subd. 5.Boiler engineer license fees. (a) For purposes of calculating license fees 
149.10 	and renewal license fees required under section 326B.092:
149.11 	(1) the boiler special engineer license is an entry level license;
149.12 	(2) the following licenses are journeyman licenses: first class engineer, Grade A; 
149.13 	first class engineer, Grade B; first class engineer, Grade C; second class engineer, Grade 
149.14 	A; second class engineer, Grade B; second class engineer, Grade C; and provisional 
149.15 	license; and
149.16 	(3) the following licenses are master licenses: boiler chief engineer, Grade A; boiler 
149.17 	chief engineer, Grade B; boiler chief engineer, Grade C; boiler commissioner inspector 
149.18 	certificate of competency; and traction or hobby boiler engineer.
149.19 	(b) Notwithstanding section 326B.092, subdivision 7, paragraph (a), the license 
149.20 	duration for steam traction and hobby engineer licenses are one year only for the purpose 
149.21 	of calculating license fees under section 326B.092, subdivision 7, paragraph (b).

149.22 	Sec. 7. Minnesota Statutes 2014, section 326B.986, subdivision 8, is amended to read:
149.23 		Subd. 8.Certificate of competency. The fee for issuance of the original certificate 
149.24 	of competency is $85 for inspectors who did not pay the national board examination fee 
149.25 	specified in subdivision 6, or $35 for inspectors who paid that examination fee.(a) Each 
149.26 	applicant for a certificate of competency must complete an interview with the chief boiler 
149.27 	inspector before issuance of the certificate of competency.
149.28 	(b) All initial certificates of competency shall be effective for more than one calendar 
149.29 	year and shall expire on December 31 of the year after the year in which the application 
149.30 	is made. The commissioner shall in a manner determined by the commissioner, without 
149.31 	the need for any rulemaking under chapter 14, phase in the renewal of certificates of 
149.32 	competency from one calendar year to two calendar years. By June 30, 2011,
150.1 	(c) All renewed certificates of competency shall be valid for two calendar years. The 
150.2 	fee for renewal of the state of Minnesota certificate of competency is $35 for one year or 
150.3 	$70 for two years, and is due the day after the certificate expires.

150.4 	EFFECTIVE DATE. The amendments to paragraphs (a) and (c) are effective July 
150.5 	1, 2015, and expire July 1, 2017.

150.6 	Sec. 8. Minnesota Statutes 2014, section 341.321, is amended to read:
150.7 	341.321 FEE SCHEDULE.
150.8 	(a) The fee schedule for professional and amateur licenses issued by the 
150.9 	commissioner is as follows:
150.10 	(1) referees, $80 for each initial license and each renewal;
150.11 	(2) promoters, $700 for each initial license and each renewal;
150.12 	(3) judges and knockdown judges, $80 for each initial license and each renewal;
150.13 	(4) trainers and seconds, $80 for each initial license and each renewal;
150.14 	(5) ring announcers, $80 for each initial license and each renewal;
150.15 	(6) seconds, $80 for each initial license and each renewal;
150.16 	(7) (6) timekeepers, $80 for each initial license and each renewal;
150.17 	(8)(7) professional combatants, $100 for each initial license and each renewal $70;
150.18 	(8) amateur combatants, $50;
150.19 	(9) managers, $80 for each initial license and each renewal; and
150.20 	(10) ringside physicians, $80 for each initial license and each renewal.
150.21 	In addition to the license fee and the late filing penalty fee in section 341.32, subdivision 
150.22 	2, if applicable, an individual who applies for a professional license on the same day 
150.23 	within the 48 hours preceding when the combative sporting event is held shall pay a late 
150.24 	fee of $100 plus the original license fee of $120 at the time the application is submitted.
150.25 	(b) The fee schedule for amateur licenses issued by the commissioner is as follows:
150.26 	(1) referees, $80 for each initial license and each renewal;
150.27 	(2) promoters, $700 for each initial license and each renewal;
150.28 	(3) judges and knockdown judges, $80 for each initial license and each renewal;
150.29 	(4) trainers, $80 for each initial license and each renewal;
150.30 	(5) ring announcers, $80 for each initial license and each renewal;
150.31 	(6) seconds, $80 for each initial license and each renewal;
150.32 	(7) timekeepers, $80 for each initial license and each renewal;
150.33 	(8) combatant, $60 for each initial license and each renewal;
150.34 	(9) managers, $80 for each initial license and each renewal; and
151.1 	(10) ringside physicians, $80 for each initial license and each renewal.
151.2 	(c) (b) The commissioner shall establish a contest fee for each combative sport 
151.3 	contest and shall consider the size and type of venue when establishing a contest fee. The 
151.4 	professional combative sport contest fee is $1,500 per event or not more than four percent 
151.5 	of the gross ticket sales, whichever is greater, as determined by the commissioner when 
151.6 	the combative sport contest is scheduled,. The amateur combative sport contest fee shall 
151.7 	be $1,500 or not more than four percent of the gross ticket sales, whichever is greater. 
151.8 	The commissioner shall consider the size and type of venue when establishing a contest 
151.9 	fee. The commissioner may establish the maximum number of complimentary tickets 
151.10 	allowed for each event by rule.
151.11 	(c) A professional or amateur combative sport contest fee is nonrefundable. and 
151.12 	shall be paid as follows:
151.13 	(1) $500 at the time the combative sport contest is scheduled; and
151.14 	(2) $1,000 at the weigh-in prior to the contest.
151.15 	If four percent of the gross ticket sales is greater than $1,500, the balance is due to the 
151.16 	commissioner within 24 hours of the completed contest.
151.17 	(d) The commissioner may establish the maximum number of complimentary tickets 
151.18 	allowed for each event by rule.
151.19 	(d) (e) All fees and penalties collected by the commissioner must be deposited in the 
151.20 	commissioner account in the special revenue fund.

151.21 	ARTICLE 7
151.22 	DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

151.23 	Section 1. Minnesota Statutes 2014, section 116J.394, is amended to read:
151.24 	116J.394 DEFINITIONS.
151.25 	(a) For the purposes of sections 116J.394 to 116J.396, the following terms have 
151.26 	the meanings given them.
151.27 	(b) "Broadband" or "broadband service" has the meaning given in section 116J.39, 
151.28 	subdivision 1, paragraph (b).
151.29 	(c) "Broadband infrastructure" means networks of deployed telecommunications 
151.30 	equipment and technologies necessary to provide high-speed Internet access and other 
151.31 	advanced telecommunications services for end users.
151.32 	(d) "Commissioner" means the commissioner of employment and economic 
151.33 	development.
152.1 	(e) "Last-mile infrastructure" means broadband infrastructure that serves as the 
152.2 	final leg connecting the broadband service provider's network to the end-use customer's 
152.3 	on-premises telecommunications equipment.
152.4 	(f) "Middle-mile infrastructure" means broadband infrastructure that links a 
152.5 	broadband service provider's core network infrastructure to last-mile infrastructure.
152.6 	(g) "Political subdivision" means any county, city, town, school district, special 
152.7 	district or other political subdivision, or public corporation.
152.8 	(h) "Underserved areas" means areas of Minnesota in which households or businesses 
152.9 	lack access to wire-line broadband service at speeds that meet the state broadband goals of 
152.10 	ten to 20 megabits per second download and five to ten megabits per second upload.
152.11 	(i) "Unserved areas" means areas of Minnesota in which households or businesses 
152.12 	lack access to wire-line broadband service at speeds that meet a Federal Communications 
152.13 	Commission threshold of four megabits per second download and one megabit per second 
152.14 	upload, as defined in section 116J.39.

152.15 	Sec. 2. Minnesota Statutes 2014, section 116J.395, subdivision 6, is amended to read:
152.16 		Subd. 6.Awarding grants. (a) In evaluating applications and awarding grants, the 
152.17 	commissioner shall give priority to applications that are constructed in areas identified by 
152.18 	the director of the Office of Broadband Development as unserved or to promote significant 
152.19 	economic growth.
152.20 	(b) In evaluating applications and awarding grants, the commissioner may give 
152.21 	priority to applications that:
152.22 	(1) are constructed in areas identified by the director of the Office of Broadband 
152.23 	Development as underserved;
152.24 	(2) offer new or substantially upgraded broadband service to important community 
152.25 	institutions including, but not limited to, libraries, educational institutions, public safety 
152.26 	facilities, and healthcare facilities;
152.27 	(3) facilitate the use of telemedicine and electronic health records;
152.28 	(4) serve economically distressed areas of the state, as measured by indices of 
152.29 	unemployment, poverty, or population loss that are significantly greater than the statewide 
152.30 	average;
152.31 	(5) provide technical support and train residents, businesses, and institutions in the 
152.32 	community served by the project to utilize broadband service;
152.33 	(6) include a component to actively promote the adoption of the newly available 
152.34 	broadband services in the community;
153.1 	(7) provide evidence of strong support for the project from citizens, government, 
153.2 	businesses, and institutions in the community;
153.3 	(8) provide access to broadband service to a greater number of unserved or 
153.4 	underserved households and businesses; or
153.5 	(9) leverage greater amounts of funding for the project from other private and 
153.6 	public sources.
153.7 	(c) The commissioner shall endeavor to award grants under this section to qualified 
153.8 	applicants in all regions of the state.

153.9 	Sec. 3. [116J.549] WORKFORCE HOUSING GRANTS PROGRAM.
153.10 		Subdivision 1.Establishment. A workforce housing grants program is established 
153.11 	to award grants to qualified cities to be used for qualified expenditures related to the 
153.12 	construction of or financing for market rate residential rental properties, and includes new 
153.13 	modular homes or new manufactured homes, or new manufactured homes on leased land 
153.14 	or in a manufactured home park.
153.15 		Subd. 2.Definitions. For purposes of this section:
153.16 	(1) "commissioner" means the commissioner of employment and economic 
153.17 	development;
153.18 	(2) "local unit of government" means a home rule charter or statutory city or county;
153.19 	(3) "qualified city" means a home rule charter or statutory city located outside the 
153.20 	metropolitan area or an area served by a joint county-city economic development agency;
153.21 	(4) "qualified expenditure" means expenditures for the acquisition of property, 
153.22 	construction of improvements, provisions of loans or subsidies, grants, interest rate 
153.23 	subsidies, public infrastructure, and related financing costs for market rate residential 
153.24 	rental properties;
153.25 	(5) "market rate residential rental properties" means properties that are rented at 
153.26 	market value and excludes: (i) properties constructed with financial assistance requiring 
153.27 	the property to be occupied by residents that meet income limits under federal or state 
153.28 	law of initial occupancy; and (ii) properties constructed with federal, state, or local flood 
153.29 	recovery assistance, regardless of whether that assistance imposed income limits as a 
153.30 	condition of receiving assistance; 
153.31 	(6) "metropolitan area" means the seven-county metropolitan area as defined by 
153.32 	section 473.121, subdivision 2; and
153.33 	(7) "joint county-city economic development authority" means an economic 
153.34 	development authority, formed under Laws 1988, chapter 516, section 1, as a joint 
153.35 	partnership between a city and county and excluding those established by the county only.
154.1 		Subd. 3.Application. The commissioner shall develop forms and procedures 
154.2 	for soliciting and reviewing application for grants under this section. At a minimum, a 
154.3 	city must include in its application a resolution of its governing body certifying that the 
154.4 	matching amount as required under this section is available and committed.
154.5 		Subd. 4.Program requirements. The commissioner must not award a grant to a 
154.6 	city under this section until the following determinations are made:
154.7 	(1) the average vacancy rate for rental housing located in the city, and in any city 
154.8 	located within 25 miles or less of the boundaries of the city, has been three percent or less 
154.9 	for at least the immediately preceding two-year period;
154.10 	(2) one or more businesses located in the city, or within 60 miles of the city, that 
154.11 	employ a minimum of 20 full-time equivalent employees in aggregate have provided 
154.12 	a written statement to the city indicating that the lack of available rental housing has 
154.13 	impeded their ability to recruit and hire employees;
154.14 	(3) the city has a population exceeding 1,000;
154.15 	(4) the city is located outside the metropolitan area; and
154.16 	(5) the city certifies that the grants will be used for qualified expenditures for the 
154.17 	development of rental housing to serve employees of businesses located in the city 
154.18 	or surrounding area.
154.19 		Subd. 5.Allocation. The amount of a grant may not exceed 25 percent of the 
154.20 	rental housing development project cost. The commissioner shall not award a grant to 
154.21 	a city without certification by the city that the amount of the grant shall be matched by 
154.22 	a local unit of government, business, or nonprofit organization with $1 for every $2 
154.23 	provided in grant funds.
154.24 		Subd. 6.Report. Beginning January 15, 2016, the commissioner must annually 
154.25 	submit a report to the chairs and ranking minority members of the senate and house of 
154.26 	representatives committees having jurisdiction over taxes and workforce development 
154.27 	specifying the projects that received grants under this section and the specific purposes for 
154.28 	which the grant funds were used.

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

154.30 	Sec. 4. Minnesota Statutes 2014, section 116J.8738, subdivision 3, is amended to read:
154.31 		Subd. 3.Certification of qualified business. (a) A business may apply to 
154.32 	the commissioner for certification as a qualified business under this section. The 
154.33 	commissioner shall specify the form of the application, the manner and times for applying, 
154.34 	and the information required to be included in the application. The commissioner may 
154.35 	impose an application fee in an amount sufficient to defray the commissioner's cost of 
155.1 	processing certifications. Application fees are deposited in the greater Minnesota business 
155.2 	expansion administration account in the special revenue fund. A business must file a copy 
155.3 	of its application with the chief clerical officer of the city at the same time it applies to the 
155.4 	commissioner. For an agricultural processing facility located outside the boundaries of a 
155.5 	city, the business must file a copy of the application with the county auditor.
155.6 	(b) The commissioner shall certify each business as a qualified business that:
155.7 	(1) satisfies the requirements of subdivision 2;
155.8 	(2) the commissioner determines would not expand its operations in greater 
155.9 	Minnesota without the tax incentives available under subdivision 4; and
155.10 	(3) enters a business subsidy agreement with the commissioner that pledges to 
155.11 	satisfy the minimum expansion requirements of paragraph (c) within three years or less 
155.12 	following execution of the agreement.
155.13 	The commissioner must act on an application within 90 days after its filing. Failure 
155.14 	by the commissioner to take action within the 90-day period is deemed approval of the 
155.15 	application.
155.16 	(c) The business must increase the number of full-time equivalent employees 
155.17 	in greater Minnesota from the time the business subsidy agreement is executed by two 
155.18 	employees or ten percent, whichever is greater.
155.19 	(d) The city, or a county for an agricultural processing facility located outside the 
155.20 	boundaries of a city, in which the business proposes to expand its operations may file 
155.21 	comments supporting or opposing the application with the commissioner. The comments 
155.22 	must be filed within 30 days after receipt by the city of the application and may include a 
155.23 	notice of any contribution the city or county intends to make to encourage or support the 
155.24 	business expansion, such as the use of tax increment financing, property tax abatement, 
155.25 	additional city or county services, or other financial assistance.
155.26 	(e) Certification of a qualified business is effective for the seven-year period 
155.27 	beginning on the first day of the calendar month immediately following the date that the 
155.28 	commissioner informs the business of the award of the benefit.

155.29 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2014.

155.30 	Sec. 5. Minnesota Statutes 2014, section 116J.8738, is amended by adding a 
155.31 	subdivision to read:
155.32 		Subd. 6.Funds. Amounts in the greater Minnesota business expansion 
155.33 	administration account in the special revenue fund are appropriated to the commissioner of 
155.34 	employment and economic development for costs associated with processing applications 
156.1 	under subdivisions 3, 4, and 5, and for personnel and administrative expenses related to 
156.2 	administering the greater Minnesota business expansion program.

156.3 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2014.

156.4 	Sec. 6. Minnesota Statutes 2014, section 116L.05, subdivision 5, is amended to read:
156.5 		Subd. 5.Use of workforce development funds. After March 1 of any fiscal year, 
156.6 	the board may useshall make recommendations to the legislature for additional uses of 
156.7 	workforce development funds for the purposes outlined in sections 116L.02 and 116L.04, 
156.8 	or to provide incumbent worker training services under section 116L.18 if the following 
156.9 	conditions have been met:
156.10 	(1) the board examines relevant economic indicators, including the projected 
156.11 	number of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of 
156.12 	declining and expanding industries, the number of initial applications for and the number 
156.13 	of exhaustions of unemployment benefits, job vacancy data, and any additional relevant 
156.14 	information brought to the board's attention;
156.15 	(2) the board accounts for all allocations made in section 116L.17, subdivision 2;
156.16 	(3) based on the past expenditures and projected revenue, the board estimates future 
156.17 	funding needs for services under section 116L.17 for the remainder of the current fiscal 
156.18 	year and the next fiscal year;
156.19 	(4) the board determines there will be unspent funds after meeting the needs of 
156.20 	dislocated workers in the current fiscal year and there will be sufficient revenue to meet 
156.21 	the needs of dislocated workers in the next fiscal year; and
156.22 	(5) the board reports its findings in clauses (1) to (4) to the chairs of legislative 
156.23 	committees with jurisdiction over the workforce development fund, to the commissioners 
156.24 	of revenue and management and budget, and to the public.

156.25 	Sec. 7. Minnesota Statutes 2014, section 116L.17, subdivision 4, is amended to read:
156.26 		Subd. 4.Use of funds. Funds granted by the board under this section may be used 
156.27 	for any combination of the following, except as otherwise provided in this section:
156.28 	(1) employment transition services such as developing readjustment plans for 
156.29 	individuals; outreach and intake; early readjustment; job or career counseling; testing; 
156.30 	orientation; assessment of skills and aptitudes; provision of occupational and labor market 
156.31 	information; job placement assistance; job search; job development; prelayoff assistance; 
156.32 	relocation assistance; programs provided in cooperation with employers or labor 
156.33 	organizations to provide early intervention in the event of plant closings or substantial 
156.34 	layoffs; and entrepreneurial training and business consulting;
157.1 	(2) support services, including assistance to help the participant relocate to employ 
157.2 	existing skills; out-of-area job search assistance; family care assistance, including child 
157.3 	care; commuting assistance; emergency housing and rental assistance; counseling 
157.4 	assistance, including personal and financial; health care; emergency health assistance; 
157.5 	emergency financial assistance; work-related tools and clothing; and other appropriate 
157.6 	support services that enable a person to participate in an employment and training program 
157.7 	with the goal of reemployment;
157.8 	(3) specific, short-term training to help the participant enhance current skills 
157.9 	in a similar occupation or industry; entrepreneurial training, customized training, or 
157.10 	on-the-job training; basic and remedial education to enhance current skills; and literacy 
157.11 	and work-related English training for non-English speakers; and
157.12 	(4) long-term training in a new occupation or industry, including occupational skills 
157.13 	training or customized training in an accredited program recognized by one or more 
157.14 	relevant industries. Long-term training shall only be provided to dislocated workers whose 
157.15 	skills are obsolete and who have no other transferable skills likely to result in employment 
157.16 	at a comparable wage rate. Training shall only be provided for occupations or industries 
157.17 	with reasonable expectations of job availability based on the service provider's thorough 
157.18 	assessment of local labor market information where the individual currently resides or 
157.19 	is willing to relocate. This clause shall not restrict training in personal services or other 
157.20 	such industries.; and
157.21 	(5) direct training services to provide a measurable increase in the job-related 
157.22 	skills of participating incumbent workers, including basic assessment, counseling, and 
157.23 	preemployment training services requested by the qualifying employer.

157.24 	Sec. 8. [116L.667] RURAL CAREER COUNSELING COORDINATORS.
157.25 		Subdivision 1.Requirement. Each workforce service area located outside of the 
157.26 	metropolitan area, as defined in section 473.121, subdivision 2, except for a service area 
157.27 	that serves a single city outside of the metropolitan area, must have a career counseling 
157.28 	coordinator who is responsible for improving coordination and communication of 
157.29 	workforce development programs and services within the workforce service area, with 
157.30 	other workforce service areas and career counseling coordinators, and with administering 
157.31 	agencies. A career counseling coordinator may serve as the coordinator for up to two 
157.32 	service areas.
157.33 		Subd. 2.Responsibilities. A career counseling coordinator is responsible for:
157.34 	(1) understanding the needs of existing, new, and prospective service area businesses 
157.35 	in regard to workforce development programs, resources, and other services;
158.1 	(2) connecting job seekers, secondary and higher education institutions, employers, 
158.2 	and other stakeholders and partners;
158.3 	(3) providing services to job seekers including career counseling, training, and 
158.4 	work experience opportunities;
158.5 	(4) assessing and compiling information about all workforce development programs 
158.6 	and services offered in the assigned workforce service area, including adult basic 
158.7 	education programs and programs and services at higher education institutions and 
158.8 	kindergarten through grade 12 schools;
158.9 	(5) making recommendations to the commissioner regarding ways to improve 
158.10 	career counseling coordination, possible program changes, and new workforce programs 
158.11 	or initiatives;
158.12 	(6) sharing best practices and collaborating with other career counseling coordinators 
158.13 	to promote and enable state-level coordination among workforce development programs 
158.14 	and administering agencies including, but not limited to, the Departments of Employment 
158.15 	and Economic Development, Education, and Labor and Industry, and the Office of Higher 
158.16 	Education; and
158.17 	(7) promoting available workforce development and career counseling programs and 
158.18 	resources in the workforce service area.
158.19 		Subd. 3.Reporting; consolidation. The workforce council in each of the workforce 
158.20 	service areas having a career counseling coordinator shall submit an annual report to 
158.21 	the commissioner that includes, but is not limited to, a narrative of and the number of 
158.22 	businesses, job seekers, and other stakeholders served by the career counseling coordinator 
158.23 	function, an accounting of workforce development and career counseling programs 
158.24 	and services offered in the assigned workforce service area, and any recommendations 
158.25 	for changes to workforce development efforts in the workforce service area. Beginning 
158.26 	January 15, 2016, and each year thereafter, the commissioner shall consolidate the reports 
158.27 	and submit the consolidated report to the legislative committees with jurisdiction over 
158.28 	economic development and workforce policy and finance.

158.29 	Sec. 9. Minnesota Statutes 2014, section 268.035, subdivision 6, is amended to read:
158.30 		Subd. 6.Benefit year. "Benefit year" means the period of 52 calendar weeks 
158.31 	beginning the date a benefit account is effective. For a benefit account established 
158.32 	effective any January 1, April 1, July 1, or October 1, or January 2, 2000, or October 2, 
158.33 	2011, the benefit year will be a period of 53 calendar weeks.

158.34 	EFFECTIVE DATE. This section is effective August 2, 2015.

159.1 	Sec. 10. Minnesota Statutes 2014, section 268.035, subdivision 21b, is amended to read:
159.2 		Subd. 21b.Preponderance of the evidence. "Preponderance of the evidence" 
159.3 	means evidence in substantiation support of a fact that, when weighed against the evidence 
159.4 	opposing the fact, is more convincing and has a greater probability of truth than the 
159.5 	evidence opposing the fact.

159.6 	EFFECTIVE DATE. This section is effective August 2, 2015.

159.7 	Sec. 11. Minnesota Statutes 2014, section 268.035, subdivision 26, is amended to read:
159.8 		Subd. 26.Unemployed. An applicant is considered "unemployed" (1) in any week 
159.9 	that:
159.10 	(1) the applicant performs less than 32 hours of service in employment, covered 
159.11 	employment, noncovered employment, self-employment, or volunteer work; and 
159.12 	(2) any earnings with respect to that week are less than the applicant's weekly 
159.13 	unemployment benefit amount.

159.14 	EFFECTIVE DATE. This section is effective August 2, 2015.

159.15 	Sec. 12. Minnesota Statutes 2014, section 268.035, subdivision 30, is amended to read:
159.16 		Subd. 30.Wages paid. (a) "Wages paid" means the amount of wages:
159.17 	(1) that have been actually paid; or
159.18 	(2) that have been credited to or set apart so that payment and disposition is under 
159.19 	the control of the employee.
159.20 	(b) Wage payments delayed beyond the regularly scheduled pay date are considered 
159.21 	"wages paid" on the missed pay date. Back pay is considered "wages paid" on the date 
159.22 	of actual payment. Any wages earned but not paid with no scheduled date of payment is 
159.23 	considered "wages paid" on the last day of employment.
159.24 	(b) (c) Wages paid does not include wages earned but not paid except as provided 
159.25 	for in this subdivision.

159.26 	EFFECTIVE DATE. This section is effective August 2, 2015.

159.27 	Sec. 13. Minnesota Statutes 2014, section 268.051, subdivision 7, is amended to read:
159.28 		Subd. 7.Tax rate buydown. (a) Any taxpaying employer that has been assigned 
159.29 	a tax rate based upon an experience rating, and has no amounts past due under this 
159.30 	chapter, may, upon the payment of an amount equivalent to any portion or all of the 
159.31 	unemployment benefits used in computing the experience rating plus a surcharge of 25 
159.32 	percent, obtain a cancellation of unemployment benefits used equal to the payment made, 
160.1 	less the surcharge. The payment is applied to the most recent unemployment benefits paid 
160.2 	that are used in computing the experience rating. Upon the payment, the commissioner 
160.3 	must compute a new experience rating for the employer, and compute a new tax rate.
160.4 	(b) Payments for a tax rate buydown may be made only by electronic payment 
160.5 	and must be received within 120 calendar days from the beginning of the calendar year 
160.6 	for which the tax rate is effective.
160.7 	(c) For calendar years 2011, 2012, and 2013, the surcharge of 25 percent provided 
160.8 	for in paragraph (a) does not apply.

160.9 	EFFECTIVE DATE. This section is effective August 2, 2015.

160.10 	Sec. 14. Minnesota Statutes 2014, section 268.07, subdivision 2, is amended to read:
160.11 		Subd. 2.Benefit account requirements. (a) Unless paragraph (b) applies, to 
160.12 	establish a benefit account an applicant must have total wage credits in the applicant's four 
160.13 	quarter base period of at least: (1) $2,400; or (2) 5.3 percent of the state's average annual 
160.14 	wage rounded down to the next lower $100, whichever is higher.
160.15 	(b) To establish a new benefit account within 52 calendar weeks following the 
160.16 	expiration of the benefit year on a prior benefit account, an applicant must have performed 
160.17 	services actual work in subsequent covered employment and have been paid wages in one 
160.18 	or more completed calendar quarters that started after the effective date of the prior benefit 
160.19 	account. The wages paid for those services that employment must be at least enough to 
160.20 	meet the requirements of paragraph (a). A benefit account under this paragraph may not 
160.21 	be established effective earlier than the Sunday following the end of the most recent 
160.22 	completed calendar quarter in which the requirements of paragraph (a) were met. One 
160.23 	of the reasons for this paragraph is to prevent An applicant from establishing may not 
160.24 	establish a second benefit account as a result of one loss of employment.

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

160.27 	Sec. 15. Minnesota Statutes 2014, section 268.07, subdivision 3b, is amended to read:
160.28 		Subd. 3b.Limitations on applications and benefit accounts. (a) An application for 
160.29 	unemployment benefits is effective the Sunday of the calendar week that the application 
160.30 	was filed. An application for unemployment benefits may be backdated one calendar week 
160.31 	before the Sunday of the week the application was actually filed if the applicant requests 
160.32 	the backdating at the time the application is filed. An application may be backdated only 
160.33 	if the applicant was unemployed during the period of the backdating. If an individual 
161.1 	attempted to file an application for unemployment benefits, but was prevented from filing 
161.2 	an application by the department, the application is effective the Sunday of the calendar 
161.3 	week the individual first attempted to file an application.
161.4 	(b) A benefit account established under subdivision 2 is effective the date the 
161.5 	application for unemployment benefits was effective.
161.6 	(c) A benefit account, once established, may later be withdrawn only if:
161.7 	(1) the applicant has not been paid any unemployment benefits on that benefit 
161.8 	account; and
161.9 	(2) a new application for unemployment benefits is filed and a new benefit account is 
161.10 	established at the time of the withdrawal.
161.11 	A determination or amended determination of eligibility or ineligibility issued under 
161.12 	section 268.101, that was sent before the withdrawal of the benefit account, remains in 
161.13 	effect and is not voided by the withdrawal of the benefit account.
161.14 	(d) An application for unemployment benefits is not allowed before the Sunday 
161.15 	following the expiration of the benefit year on a prior benefit account. Except as allowed 
161.16 	under paragraph (c), an applicant may establish only one benefit account each 52 calendar 
161.17 	weeks. This paragraph applies to benefit accounts established under any federal law or 
161.18 	the law of any other state.

161.19 	EFFECTIVE DATE. This section is effective August 2, 2015.

161.20 	Sec. 16. Minnesota Statutes 2014, section 268.085, subdivision 1, is amended to read:
161.21 		Subdivision 1.Eligibility conditions. An applicant may be eligible to receive 
161.22 	unemployment benefits for any week if:
161.23 	(1) the applicant has filed a continued request for unemployment benefits for that 
161.24 	week under section 268.0865;
161.25 	(2) the week for which unemployment benefits are requested is in the applicant's 
161.26 	benefit year;
161.27 	(3) the applicant was unemployed as defined in section 268.035, subdivision 26;
161.28 	(4) the applicant was available for suitable employment as defined in subdivision 
161.29 	15. The applicant's weekly unemployment benefit amount is reduced one-fifth for each 
161.30 	day the applicant is unavailable for suitable employment. This clause does not apply to 
161.31 	an applicant who is in reemployment assistance training, or each day the applicant is on 
161.32 	jury duty or serving as an election judge;
161.33 	(5) the applicant was actively seeking suitable employment as defined in subdivision 
161.34 	16. This clause does not apply to an applicant who is in reemployment assistance training 
161.35 	or who was on jury duty throughout the week;
162.1 	(6) the applicant has served a nonpayable period of one week that the applicant is 
162.2 	otherwise entitled to some amount of unemployment benefits. This clause does not apply 
162.3 	if the applicant would have been entitled to federal disaster unemployment assistance 
162.4 	because of a disaster in Minnesota, but for the applicant's establishment of a benefit 
162.5 	account under section 268.07; and
162.6 	(7) the applicant has been participating in reemployment assistance services, such as 
162.7 	job development of, and adherence to, a work search and resume writing classes plan, if 
162.8 	the applicant has been determined in need of reemployment assistance services directed 
162.9 	to participate by the commissioner, unless. This clause does not apply if the applicant 
162.10 	has good cause for failing to participate.

162.11 	EFFECTIVE DATE. This section is effective August 2, 2015.

162.12 	Sec. 17. Minnesota Statutes 2014, section 268.085, subdivision 2, is amended to read:
162.13 		Subd. 2.Not eligible. An applicant is ineligible for unemployment benefits for 
162.14 	any week:
162.15 	(1) that occurs before the effective date of a benefit account;
162.16 	(2) that the applicant, at the beginning of the week, has an outstanding fraud 
162.17 	overpayment balance under section 268.18, subdivision 2, including any penalties and 
162.18 	interest;
162.19 	(3) that occurs in a period when the applicant is a student in attendance at, or on 
162.20 	vacation from a secondary school including the period between academic years or terms;
162.21 	(4) that the applicant is incarcerated or performing court-ordered community service. 
162.22 	The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day 
162.23 	the applicant is incarcerated or performing court-ordered community service;
162.24 	(5) that the applicant fails or refuses to provide information on an issue of 
162.25 	ineligibility required under section 268.101;
162.26 	(6) that the applicant is performing services 32 hours or more, in employment, 
162.27 	covered employment, noncovered employment, volunteer work, or self-employment 
162.28 	regardless of the amount of any earnings; or
162.29 	(7) with respect to which the applicant is receiving, has received, or has filed an 
162.30 	application for unemployment benefits under any federal law or the law of any other 
162.31 	state. If the appropriate agency finally determines that the applicant is not entitled to the 
162.32 	unemployment benefits establish a benefit account under federal law of the law of any 
162.33 	other state, this clause does not apply.

162.34 	EFFECTIVE DATE. This section is effective August 2, 2015.

163.1 	Sec. 18. Minnesota Statutes 2014, section 268.095, subdivision 1, is amended to read:
163.2 		Subdivision 1.Quit. An applicant who quit employment is ineligible for all 
163.3 	unemployment benefits according to subdivision 10 except when:
163.4 	(1) the applicant quit the employment because of a good reason caused by the 
163.5 	employer as defined in subdivision 3;
163.6 	(2) the applicant quit the employment to accept other covered employment that 
163.7 	provided substantially equal to or better terms and conditions of employment, but 
163.8 	the applicant did not work long enough at the second employment to have sufficient 
163.9 	subsequent earnings to satisfy the period of ineligibility that would otherwise be imposed 
163.10 	under subdivision 10 for quitting the first employment;
163.11 	(3) the applicant quit the employment within 30 calendar days of beginning the 
163.12 	employment because the employment was unsuitable for the applicant;
163.13 	(4) the employment was unsuitable for the applicant and the applicant quit to enter 
163.14 	reemployment assistance training;
163.15 	(5) the employment was part time and the applicant also had full-time employment 
163.16 	in the base period, from which full-time employment the applicant separated because of 
163.17 	reasons for which the applicant was held is not to be ineligible, and the wage credits from 
163.18 	the full-time employment are sufficient to meet the minimum requirements to establish a 
163.19 	benefit account under section 268.07;
163.20 	(6) the applicant quit because the employer notified the applicant that the applicant 
163.21 	was going to be laid off because of lack of work within 30 calendar days. An applicant 
163.22 	who quit employment within 30 calendar days of a notified date of layoff because of lack 
163.23 	of work is ineligible for unemployment benefits through the end of the week that includes 
163.24 	the scheduled date of layoff;
163.25 	(7) the applicant quit the employment (i) because the applicant's serious illness or 
163.26 	injury made it medically necessary that the applicant quit; or (ii) in order to provide 
163.27 	necessary care because of the illness, injury, or disability of an immediate family member 
163.28 	of the applicant. This exception only applies if the applicant informs the employer of 
163.29 	the medical problem and requests accommodation and no reasonable accommodation 
163.30 	is made available.
163.31 	If the applicant's serious illness is chemical dependency, this exception does not 
163.32 	apply if the applicant was previously diagnosed as chemically dependent or had treatment 
163.33 	for chemical dependency, and since that diagnosis or treatment has failed to make 
163.34 	consistent efforts to control the chemical dependency.
163.35 	This exception raises an issue of the applicant's being available for suitable 
163.36 	employment under section 268.085, subdivision 1, that the commissioner must determine;
164.1 	(8) the applicant's loss of child care for the applicant's minor child caused the 
164.2 	applicant to quit the employment, provided the applicant made reasonable effort to obtain 
164.3 	other child care and requested time off or other accommodation from the employer and no 
164.4 	reasonable accommodation is available.
164.5 	This exception raises an issue of the applicant's being available for suitable 
164.6 	employment under section 268.085, subdivision 1, that the commissioner must determine;
164.7 	(9) the applicant quit because domestic abuse, sexual assault, or stalking of the 
164.8 	applicant or an immediate family member of the applicant, necessitated the applicant's 
164.9 	quitting the employment.
164.10 	For purposes of this subdivision:
164.11 	(i) "domestic abuse" has the meaning given in section 518B.01;
164.12 	(ii) "sexual assault" means an act that would constitute a violation of sections 
164.13 	609.342 to 609.3453 or 609.352; and
164.14 	(iii) "stalking" means an act that would constitute a violation of section 609.749; or
164.15 	(10) the applicant quit in order to relocate to accompany a spouse whose job location 
164.16 	changed making it impractical for the applicant to commute. This exception only applies 
164.17 	if the spouse's job is in the military or provides total wages and other compensation that is 
164.18 	equal to or better than the applicant's employment.

164.19 	EFFECTIVE DATE. This section is effective August 2, 2015.

164.20 	Sec. 19. Minnesota Statutes 2014, section 268.095, subdivision 10, is amended to read:
164.21 		Subd. 10.Ineligibility duration. (a) Ineligibility from the payment of all 
164.22 	unemployment benefits under subdivisions 1 and 4 is for the duration of the applicant's 
164.23 	unemployment and until the end of the calendar week that the applicant had total wages 
164.24 	paid for actual work performed in subsequent covered employment sufficient to meet 
164.25 	one-half of the requirements of section 268.07, subdivision 2, paragraph (a).
164.26 	(b) Ineligibility imposed under subdivisions 1 and 4 begins on the Sunday of the 
164.27 	week that the applicant became separated from employment.
164.28 	(c) In addition to paragraph (a), if the applicant was discharged from employment 
164.29 	because of aggravated employment misconduct, wage credits from that employment are 
164.30 	canceled and cannot be used for purposes of a benefit account under section 268.07, 
164.31 	subdivision 2.

164.32 	EFFECTIVE DATE. This section is effective August 2, 2015.

164.33 	Sec. 20. Minnesota Statutes 2014, section 268.105, subdivision 3, is amended to read:
165.1 		Subd. 3.Withdrawal of an appeal. (a) Any An appeal that is pending before 
165.2 	an unemployment law judge may be withdrawn by the appealing person party, or an 
165.3 	authorized representative of that person party, upon by filing of a notice of withdrawal. A 
165.4 	notice of withdrawal may be filed by mail or by electronic transmission.
165.5 	(b) The appeal must, by order, be dismissed if a notice of withdrawal is filed, unless 
165.6 	an unemployment law judge directs that further adjudication is proceedings are required 
165.7 	for a proper result. An order of dismissal issued as a result of a notice of withdrawal is 
165.8 	not subject to reconsideration or appeal.
165.9 	(c) A notice of withdrawal may be filed by mail or by electronic transmission. A 
165.10 	party may file a new appeal after the order of dismissal, but the original 20-calendar-day 
165.11 	period for appeal begins from the date of issuance of the determination and that time 
165.12 	period is not suspended or restarted by the notice of withdrawal and order of dismissal. 
165.13 	The new appeal may only be filed by mail or facsimile transmission.
165.14 	(d) For purposes of this subdivision, "appeals" includes a request for reconsideration 
165.15 	filed under subdivision 2.

165.16 	EFFECTIVE DATE. This section is effective August 2, 2015.

165.17 	Sec. 21. Minnesota Statutes 2014, section 268.105, subdivision 7, is amended to read:
165.18 		Subd. 7.Judicial review. (a) The Minnesota Court of Appeals must, by writ 
165.19 	of certiorari to the department, review the unemployment law judge's decision on 
165.20 	reconsideration, provided a petition for the writ is filed with the court and a copy is served 
165.21 	upon the unemployment law judge or the commissioner and any other party within 30 
165.22 	calendar days of the sending of the unemployment law judge's decision on reconsideration 
165.23 	under subdivision 2. Three days are added to the 30-calendar-day period if the decision on 
165.24 	reconsideration was mailed to the parties.
165.25 	(b) Any employer petitioning for a writ of certiorari must pay to the court the 
165.26 	required filing fee in accordance with the Rules of Civil Appellate Procedure. If the 
165.27 	employer requests a written transcript of the testimony received at the hearing conducted 
165.28 	under subdivision 1, the employer must pay to the department the cost of preparing the 
165.29 	transcript. That money is credited to the administration account.
165.30 	(c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a 
165.31 	result of an applicant's petition, the department must furnish to the applicant at no cost a 
165.32 	written transcript of any testimony received at the hearing conducted under subdivision 1, 
165.33 	and, if requested, a copy of all exhibits entered into evidence. No filing fee or cost bond is 
165.34 	required of an applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.
166.1 	(d) The Minnesota Court of Appeals may affirm the decision of the unemployment 
166.2 	law judge or remand the case for further proceedings; or it may reverse or modify the 
166.3 	decision if the substantial rights of the petitioner may have been prejudiced because the 
166.4 	findings, inferences, conclusion, or decision are:
166.5 	(1) in violation of constitutional provisions;
166.6 	(2) in excess of the statutory authority or jurisdiction of the department;
166.7 	(3) made upon unlawful procedure;
166.8 	(4) affected by other error of law;
166.9 	(5) unsupported by substantial evidence in view of the entire record as submitted; or
166.10 	(6) arbitrary or capricious.
166.11 	(e) The department is considered the primary responding party to any judicial action 
166.12 	involving an unemployment law judge's decision. The department may be represented by 
166.13 	an attorney licensed to practice law in Minnesota who is an employee of the department.

166.14 	EFFECTIVE DATE. This section is effective August 2, 2015.

166.15 	Sec. 22. Minnesota Statutes 2014, section 268.136, subdivision 1, is amended to read:
166.16 		Subdivision 1.Shared work plan requirements.  An employer may submit a 
166.17 	proposed shared work plan for an employee group to the commissioner for approval in a 
166.18 	manner and format set by the commissioner. The proposed shared work plan must include:
166.19 	(1) a certified statement that the normal weekly hours of work of all of the proposed 
166.20 	participating employees were full time or regular part time but are now reduced, or will be 
166.21 	reduced, with a corresponding reduction in pay, in order to prevent layoffs;
166.22 	(2) the name and Social Security number of each participating employee;
166.23 	(3) the number of layoffs that would have occurred absent the employer's ability to 
166.24 	participate in a shared work plan;
166.25 	(4) a certified statement that each participating employee was first hired by the 
166.26 	employer at least one year before the proposed shared work plan is submitted and is not a 
166.27 	seasonal, temporary, or intermittent worker;
166.28 	(5) the hours of work each participating employee will work each week for the 
166.29 	duration of the shared work plan, which must be at least 50 percent of the normal weekly 
166.30 	hours but no more than 90 80 percent of the normal weekly hours, except that the plan 
166.31 	may provide for a uniform vacation shutdown of up to two weeks;
166.32 	(6) a certified statement that any health benefits and pension benefits provided by 
166.33 	the employer to participating employees will continue to be provided under the same 
166.34 	terms and conditions as though the participating employees' hours of work each week had 
166.35 	not been reduced;
167.1 	(7) a certified statement that the terms and implementation of the shared work plan is 
167.2 	consistent with the employer's obligations under state and federal law;
167.3 	(8) an acknowledgement that the employer understands that unemployment benefits 
167.4 	paid under a shared work plan will be used in computing the future tax rate of a taxpaying 
167.5 	employer or charged to the reimbursable account of a nonprofit or government employer;
167.6 	(9) the proposed duration of the shared work plan, which must be at least two months 
167.7 	and not more than one year, although a plan may be extended for up to an additional 
167.8 	year upon approval of the commissioner;
167.9 	(10) a starting date beginning on a Sunday at least 15 calendar days after the date the 
167.10 	proposed shared work plan is submitted; and
167.11 	(11) a signature of an owner or officer of the employer who is listed as an owner or 
167.12 	officer on the employer's account under section 268.045.

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

167.14 	Sec. 23. Minnesota Statutes 2014, section 268.194, subdivision 1, is amended to read:
167.15 		Subdivision 1.Establishment. There is established as a special state trust fund, 
167.16 	separate and apart from all other public money or funds of this state, an unemployment 
167.17 	insurance trust fund, that is administered by the commissioner exclusively for the payment 
167.18 	of unemployment benefits. This trust fund consists of:
167.19 	(1) all taxes collected;
167.20 	(2) interest earned upon any money in the trust fund;
167.21 	(3) reimbursements paid by nonprofit organizations and the state and political 
167.22 	subdivisions;
167.23 	(4) tax rate buydown payments under section 268.051, subdivision 7;
167.24 	(5) any money received as a loan from the federal unemployment trust fund in 
167.25 	accordance with United States Code, title 42, section 1321, of the Social Security Act;
167.26 	(6) any other money received under a reciprocal unemployment benefit arrangement 
167.27 	with the federal government or any other state;
167.28 	(7) money recovered on overpaid unemployment benefits except, if allowed by 
167.29 	federal law, five percent of any recovered amount is credited to the administration account;
167.30 	(8) all money credited to the account under this chapter;
167.31 	(9) all money credited to the account of Minnesota in the federal unemployment 
167.32 	trust fund under United States Code, title 42, section 1103, of the Social Security Act, 
167.33 	also known as the Reed Act; and
167.34 	(10) all money received for the trust fund from any other source.

168.1 	EFFECTIVE DATE. This section is effective August 2, 2015.

168.2 	Sec. 24. [268A.031] COMMISSIONER AND EMPLOYEES NOT SUBJECT 
168.3 	TO SUBPOENA.
168.4 	The commissioner and employees of the department shall not be subject to subpoena 
168.5 	for purposes of providing testimony regarding any client served under this chapter.

168.6 	Sec. 25. Laws 2014, chapter 308, article 6, section 14, subdivision 5, is amended to read:
168.7 		Subd. 5.Allocation. The amount of a grant may not exceed the lesser of $400,000 
168.8 	$1,000,000 or ten25 percent of the rental housing development project cost. The 
168.9 	commissioner shall not award a grant to a city without certification by the city that the 
168.10 	amount of the grant shall be matched by a local unit of government, business, or nonprofit 
168.11 	organization with $1 for every $2 provided in grant funds.

168.12 	Sec. 26. MECHANISMS AND COSTS; MINNESOTA PAID FAMILY AND 
168.13 	MEDICAL LEAVE PROGRAM.
 168.14 	The Department of Employment and Economic Development, in collaboration with 
168.15 	the Departments of Labor and Industry and Health and Human Services, shall report on 
168.16 	the most efficient and effective mechanisms that would provide partial wage replacement 
168.17 	for workers taking parental, family, or medical leave.

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

168.19 	Sec. 28. SPECIAL UNEMPLOYMENT BENEFIT ASSISTANCE.
 168.20 	Notwithstanding Minnesota Statutes, sections 268.085, subdivision 3, paragraph (a), 
168.21 	and 268.035, subdivision 29, paragraph (a), clause (13), applicants laid off due to lack of 
168.22 	work from a facility engaged directly in the extraction or processing of iron ore in Itasca 
168.23 	County, St. Louis County, or Lake County, between March 1, 2015, and December 31, 
168.24 	2015, will not be ineligible for unemployment benefits because of:
168.25 	(1) the receipt of vacation pay from the employer engaged in the extraction or 
168.26 	processing of iron ore; or
168.27 	(2) the receipt of supplemental unemployment benefits from the employer engaged 
168.28 	in the extraction or processing of iron ore.

168.29 	EFFECTIVE DATE. This section is effective the day following final enactment and 
168.30 	is effective retroactively from March 1, 2015. This section expires December 31, 2016.

169.1 	Sec. 29. DAY TRAINING AND HABILITATION GRANT PROGRAM.
 169.2 		Subdivision 1.Establishment. The commissioner of employment and economic 
169.3 	development shall establish a day training and habilitation grant program in fulfillment 
169.4 	of the Olmstead Plan purpose of ensuring that people with disabilities have choices for 
169.5 	competitive, meaningful, and sustained employment in the most integrated setting.
169.6 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms 
169.7 	have the meanings given them. 
169.8 	(b) "Day training and habilitation providers" means those organizations whose 
169.9 	names are listed as Department of Human Services providers in the Minnesota Department 
169.10 	of Administration, Materials Management Division, ALP Manual, Appendix J, without 
169.11 	regard to whether they are listed as approved vendors with the Minnesota Department 
169.12 	of Employment and Economic Development, Division of Rehabilitation Services as a 
169.13 	community rehabilitation provider, limited-use vendor, or center for independent living, 
169.14 	and irrespective as to whether they are accredited by CARF International.
169.15 	(c) "Competitive employment" means full-time or part-time employment, with or 
169.16 	without support, in an integrated setting in the community that pays at least minimum 
169.17 	wage, as defined by the Fair Labor Standards Act, but not less than the customary wage 
169.18 	and level of benefits paid by the employer for the same or similar work performed by 
169.19 	workers without a disability.
169.20 	(d) "Olmstead Plan" means Minnesota's 2013 Olmstead Plan, dated November 1, 
169.21 	2013, and all subsequent modifications approved by the United States District Court.
169.22 		Subd. 3.Competitive process. The commissioner shall issue a request for proposals 
169.23 	to day training and habilitation providers seeking proposals to assist the Department 
169.24 	of Employment and Economic Development in achieving its goals as provided in the 
169.25 	Olmstead Plan. Grant funds shall be used to improve individual employment outcomes 
169.26 	by aligning programs, funding, and policies to support people with disabilities to choose, 
169.27 	secure, and maintain competitive employment and self-employment, including, but not 
169.28 	limited to, the following activities:
169.29 	(1) implementing policies and initiating processes that improve the employment 
169.30 	outcomes of working adults with disabilities;
169.31 	(2) offering incentives for innovation that increase competitive employment in 
169.32 	the general work force;
169.33 	(3) expanding the flexibility in current funding and services to increase competitive 
169.34 	employment outcomes;
169.35 	(4) providing evidence of partnerships with private sector businesses and public 
169.36 	sector employment; and
170.1 	(5) submitting outcome data, required by the department, according to the 
170.2 	stipulations of the Olmstead Plan.
170.3 		Subd. 4.Eligibility. Any person who has a disability as determined by the Social 
170.4 	Security Administration or state medical review team is eligible to receive services 
170.5 	provided with grant funds.
170.6 		Subd. 5.Consultation required. The commissioner shall consult with the 
170.7 	governor's Workforce Development Council, the Commission of Deaf, DeafBlind, and 
170.8 	Hard-of-Hearing Minnesotans, the governor's Council on Developmental Disabilities, and 
170.9 	other governor-appointed disability councils in designing, implementing, and evaluating 
170.10 	the competitive grant program.
170.11 		Subd. 6.Report. On or before February 1, 2016, and annually thereafter, the 
170.12 	commissioner shall report to the chairs and ranking minority members of the senate and 
170.13 	house of representatives committees having jurisdiction over employment and economic 
170.14 	development policy and finance on the amount of funds awarded and the outcomes 
170.15 	reported by grantees.

170.16 	Sec. 30. "GETTING TO WORK" GRANT PROGRAM.
 170.17 		Subdivision 1.Creation. The commissioner of employment and economic 
170.18 	development shall make grants to nonprofit organizations to establish and operate 
170.19 	programs under this section that provide, repair, or maintain motor vehicles to assist 
170.20 	eligible individuals to obtain or maintain employment.
170.21 		Subd. 2.Qualified grantee. A grantee must:
170.22 	(1) qualify under section 501(c)(3) of the Internal Revenue Code; and
170.23 	(2) at the time of application offer, or have the demonstrated capacity to offer, a 
170.24 	motor vehicle program that provides the services required under subdivision 3.
170.25 		Subd. 3.Program requirements. (a) A program must offer one or more of the 
170.26 	following services:
170.27 	(1) provision of new or used motor vehicles by gift, sale, or lease;
170.28 	(2) motor vehicle repair and maintenance services; or
170.29 	(3) motor vehicle loans.
170.30 	(b) In addition to the requirements of paragraph (a), a program must offer one or 
170.31 	more of the following services:
170.32 	(1) financial literacy education;
170.33 	(2) education on budgeting for vehicle ownership;
170.34 	(3) car maintenance and repair instruction;
171.1 	(4) credit counseling; or 
171.2 	(5) job training related to motor vehicle maintenance and repair.
171.3 	(c) A program may also offer other transportation-related support services.
171.4 		Subd. 4.Application. Applications for a grant must be by a form provided by the 
171.5 	commissioner and on a schedule set by the commissioner. Applications must, in addition 
171.6 	to any other information required by the commissioner, include the following:
171.7 	(1) a detailed description of all services to be offered;
171.8 	(2) the area to be served;
171.9 	(3) the estimated number of program participants to be served by the grant; and
171.10 	(4) a plan for leveraging resources from partners that may include, but are not 
171.11 	limited to:
171.12 	(i) automobile dealers;
171.13 	(ii) automobile parts dealers;
171.14 	(iii) independent local mechanics and automobile repair facilities;
171.15 	(iv) banks and credit unions;
171.16 	(v) employers;
171.17 	(vi) employment and training agencies;
171.18 	(vii) insurance companies and agents;
171.19 	(viii) local workforce centers; and
171.20 	(ix) educational institutions including vocational institutions and jobs or skills 
171.21 	training programs.
171.22 		Subd. 5.Participant eligibility. (a) To be eligible to receive program services, 
171.23 	a person must:
171.24 	(1) have a household income at or below 200 percent of the federal poverty level;
171.25 	(2) be at least 18 years of age;
171.26 	(3) have a valid driver's license;
171.27 	(4) provide the grantee with proof of motor vehicle insurance; and
171.28 	(5) demonstrate to the grantee that a motor vehicle is required by the person to 
171.29 	obtain or maintain employment.
171.30 	(b) This subdivision does not preclude a grantee from imposing additional 
171.31 	requirements, not inconsistent with paragraph (a), for the receipt of program services.
171.32 		Subd. 6.Allocation of grants. The commissioner shall allocate grants to up to 15 
171.33 	grantees so that, to the extent feasible, program services are available in every county of 
171.34 	the state.
172.1 		Subd. 7.Report to legislature. By February 15, 2017, the commissioner shall 
172.2 	submit a report to the chairs of the house of representatives and senate committees with 
172.3 	jurisdiction over workforce and economic development on program outcomes. At a 
172.4 	minimum, the report must include:
172.5 	(1) the total number of program participants;
172.6 	(2) the number of program participants who received each of the following:
172.7 	(i) provision of a motor vehicle;
172.8 	(ii) motor vehicle repair services; and 
172.9 	(iii) motor vehicle loan; and
172.10 	(3) an analysis of the impact of the "Getting to Work" grant program on the 
172.11 	employment rate and wages of program participants.

172.12 	ARTICLE 8
172.13 	DEPARTMENT OF COMMERCE

172.14 	Section 1. Minnesota Statutes 2014, section 16C.144, is amended by adding a 
172.15 	subdivision to read:
172.16 		Subd. 7.Funding. (a) The commissioner of commerce is authorized to set and fix a 
172.17 	fee to fund the program under this section. The fee shall be paid as a percentage of the 
172.18 	total investment cost for a project that has received a fully executed work order contract 
172.19 	under the conditions imposed by this section. The fee percentage shall be adjusted on the 
172.20 	basis of the total value of the contracts approved relative to the funding level needed 
172.21 	to operate the program.
172.22 	(b) Fees collected under this subdivision must be deposited in the guaranteed energy 
172.23 	savings platform account under subdivision 8.

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

172.25 	Sec. 2. Minnesota Statutes 2014, section 16C.144, is amended by adding a subdivision 
172.26 	to read:
172.27 		Subd. 8.Guaranteed energy savings platform account; appropriation. (a) A 
172.28 	guaranteed energy savings platform account is created as a separate account in the special 
172.29 	revenue fund. The account consists of funds donated, allocated, transferred, or otherwise 
172.30 	provided to the account, including fees collected and deposited under subdivision 7. 
172.31 	Earnings, including interest, dividends, and any other earnings arising from account assets, 
172.32 	must be credited to the account.
173.1 	(b) Funds in the account are annually appropriated to the commissioner of commerce 
173.2 	for activities under this section.

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

173.4 	Sec. 3. Minnesota Statutes 2014, section 45.0135, is amended by adding a subdivision 
173.5 	to read:
173.6 		Subd. 9.Administrative penalty for insurance fraud. (a) The commissioner may, 
173.7 	upon recommendation of the Commerce Fraud Bureau:
173.8 	(1) impose an administrative penalty against any person in an amount as set forth in 
173.9 	paragraph (b) for each intentional act of insurance fraud committed by that person; and
173.10 	(2) order restitution to any person suffering loss as a result of the insurance fraud.
173.11 	(b) The administrative penalty for each violation described in paragraph (a) may be 
173.12 	no more than:
173.13 	(1) $20,000 if the funds or the value of the property or services wrongfully obtained 
173.14 	exceeds $5,000;
173.15 	(2) $10,000 if the funds or value of the property or services wrongfully obtained 
173.16 	exceeds $1,000 but not more than $5,000;
173.17 	(3) $3,000 if the funds or value of the property or services wrongfully obtained is 
173.18 	more than $500, but not more than $1,000; and
173.19 	(4) $1,000 if the funds or value of the property or services wrongfully obtained is 
173.20 	less than $500.
173.21 	(c) If an administrative penalty is not paid after all rights of appeal have been 
173.22 	waived or exhausted, the commissioner may bring a civil action in a court of competent 
173.23 	jurisdiction to collect the administrative penalty, including expenses and litigation costs, 
173.24 	reasonable attorney fees, and interest.
173.25 	(d) This section does not affect a person's right to seek recovery against any person 
173.26 	that commits insurance fraud.
173.27 	(e) For purposes of this subdivision, "insurance fraud" has the meaning given in 
173.28 	section 60A.951, subdivision 4.
173.29 	(f) Hearings under this subdivision must be conducted in accordance with chapter 
173.30 	14 and any other applicable law.

173.31 	EFFECTIVE DATE. This section is effective the day following final enactment, 
173.32 	and apply with respect to acts committed on or after that date.

173.33 	Sec. 3. Minnesota Statutes 2014, section 60D.215, subdivision 2, is amended to read:
174.1 		Subd. 2.Expenses. Each registered insurer subject to this section is liable for and 
174.2 	shall pay the reasonable expenses of the commissioner's participation in a supervisory 
174.3 	college in accordance with subdivision 3, including reasonable travel expenses. For 
174.4 	purposes of this section, a supervisory college may be convened as either a temporary 
174.5 	or permanent forum for communication and cooperation between the regulators charged 
174.6 	with the supervision of the insurer or its affiliates, and the commissioner may establish a 
174.7 	regular assessment to the insurer for the payment of these expenses. A registered insurer's 
174.8 	liability for expenses under this subdivision is limited to the actual, incurred costs of the 
174.9 	commissioner's participation in their supervisory college.

174.10 	Sec. 5. [65B.1325] RIGHT TO CONSULT WITH COUNSEL.
174.11 	An insurer may not settle a claim within 30 days of an accident from which the 
174.12 	claim arises unless the insurer gives the claimant written disclosure that the claimant has 
174.13 	the legal right to consult with an attorney in evaluating the settlement and the claimant 
174.14 	separately and specifically acknowledges the disclosure in writing.

174.15 	EFFECTIVE DATE. This section is effective the day following final enactment, 
174.16 	and apply with respect to acts committed on or after that date.

174.17 	Sec. 6. Minnesota Statutes 2014, section 65B.44, is amended by adding a subdivision 
174.18 	to read:
174.19 		Subd. 2a.Person convicted of insurance fraud. (a) A person convicted of 
174.20 	insurance fraud under section 609.611 in a case related to this chapter or of employment of 
174.21 	runners under section 609.612 may not enforce a contract for payment of services eligible 
174.22 	for reimbursement under subdivision 2, against an insured or reparation obligor.
174.23 	(b) After a period of five years from the date of conviction, a person described in 
174.24 	paragraph (a) may apply to district court to extinguish the collateral sanction set forth in 
174.25 	paragraph (a), which the court may grant in its reasonable discretion.

174.26 	EFFECTIVE DATE. This section is effective the day following final enactment, 
174.27 	and apply with respect to acts committed on or after that date.

174.28 	Sec. 4. Minnesota Statutes 2014, section 72B.092, subdivision 1, is amended to read:
174.29 		Subdivision 1.Prohibitions on insurer. No adjuster or insurer, director, officer, 
174.30 	broker, agent, attorney-in-fact, employee, or other representative of an insurer shall 
174.31 	in collision cases:
174.32 	(1) limit the freedom of an insured or claimant to choose the shop;
175.1 	(2) require that an insured or claimant present the claim or the automobile for loss 
175.2 	adjustment or inspection at a particular motor vehicle repair shop or shops designated by 
175.3 	the insurer, or a "drive-in" claim center or any other similar facility solely under the 
175.4 	control of the insurer;
175.5 	(3) engage in boycotts, intimidation or coercive tactics in negotiating repairs to 
175.6 	damaged motor vehicles which they insure or are liable to claimants to have repaired;
175.7 	(4) attempt to secure, except in an emergency, the insured's or claimant's signature 
175.8 	authorizing the party securing the signature to act in behalf of the insured or claimant in 
175.9 	selection of a repair shop facility;
175.10 	(5) adjust a damage appraisal of a repair shop when the extent of damage is in 
175.11 	dispute without conducting a physical inspection of the vehicle;
175.12 	(6) specify the use of a particular electronic estimating system, or the use of a 
175.13 	particular vendor or software program for the procurement of parts or other materials 
175.14 	necessary for the satisfactory repair of the vehicle. This clause does not require the 
175.15 	insurer to pay more than a reasonable market price for parts of like kind and quality 
175.16 	in adjusting a claim; or
175.17 	(7) unilaterally and arbitrarily disregard a repair operation or cost identified by an 
175.18 	estimating system, which an insurer and collision repair facility have agreed to utilize 
175.19 	in determining the cost of repair.

175.20 	Sec. 5. [80A.461] MNVEST REGISTRATION EXEMPTION.
175.21 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in 
175.22 	paragraphs (b) through (e) have the meanings given them.
175.23 	(b) "MNvest issuer" means an entity organized under the laws of Minnesota, other 
175.24 	than a general partnership, that satisfies the requirements of Code of Federal Regulations, 
175.25 	title 17, part 230.147, and the following requirements:
175.26 	(1) the principal office of the entity is located in Minnesota;
175.27 	(2) as of the last day of the most recent semiannual fiscal period of the entity, at least 
175.28 	80 percent, or other threshold permitted by Code of Federal Regulations,  title 17, part 
175.29 	230.147, of the entity's assets were located in Minnesota;
175.30 	(3) except in the case of an entity whose gross revenue during the most recent period 
175.31 	of 12 full months did not exceed $5,000, the entity derived at least 80 percent, or other 
175.32 	threshold permitted by Code of Federal Regulations, title 17, part 230.147, of the entity's 
175.33 	gross revenues from the operation of a business in Minnesota during (i) the previous fiscal 
175.34 	year, if the MNvest offering begins during the first six months of the entity's fiscal year; or 
176.1 	(ii) during the 12 months ending on the last day of the sixth month of the entity's current 
176.2 	fiscal year, if the MNvest offering begins following the last day;
176.3 	(4) the entity does not attempt to limit its liability, or the liability of any other 
176.4 	person, for fraud or intentional misrepresentation in connection with the offering of its 
176.5 	securities in a MNvest offering; and
176.6 	(5) the entity is not:
176.7 	(i) engaged in the business of investing, reinvesting, owning, holding, or trading in 
176.8 	securities, except that the entity may hold securities of one class in an entity that is not 
176.9 	itself engaged in the business of investing, reinvesting, owning, holding, or trading in 
176.10 	securities; or
176.11 	(ii) subject to the reporting requirements of the Securities and Exchange Act of 
176.12 	1934, section 13 or 15(d), United States Code, title 15, sections 78m and 78o(d).
176.13 	(c) "MNvest offering" means an offer, or an offer and sale, of securities by a MNvest 
176.14 	issuer that: (1) is conducted exclusively through a MNvest portal, and (2) satisfies the 
176.15 	requirements of this section and other requirements the administrator imposes by rule.
176.16 	(d) "MNvest portal" means an Internet Web site that is operated by a portal operator 
176.17 	for the offer or sale of MNvest offerings under this section or registered securities under 
176.18 	section 80A.50, paragraph (b), and satisfies the requirements of subdivision 6.
176.19 	(e) "Portal operator" means an entity, including an issuer, that:
176.20 	(1) is authorized to do business in Minnesota;
176.21 	(2) is a broker-dealer registered under this chapter or otherwise registers with the 
176.22 	administrator as a portal operator in accordance with subdivision 7, paragraph (a), and is 
176.23 	therefore excluded from broker-dealer registration; and
176.24 	(3) satisfies such other conditions as the administrator may determine.
176.25 		Subd. 2.Generally. The offer, sale, and issuance of securities in a MNvest offering 
176.26 	is exempt from the requirements of sections 80A.49 to 80A.54, except 80A.50, paragraph 
176.27 	(a), clause (3), and 80A.71, if the issuer meets the qualifications under this section.
176.28 		Subd. 3.MNvest offering. (a) A MNvest offering must satisfy the following 
176.29 	requirements:
176.30 	(1) the issuer must be a MNvest issuer on the date that its securities are first offered 
176.31 	for sale in the offering and continuously through the closing of the offering;
176.32 	(2) the offering must meet the requirements of the federal exemption for intrastate 
176.33 	offerings in section 3(a)(11) of the Securities Act of 1933, United States Code, title 15, 
176.34 	section 77c(a)(11), and Rule 147 adopted under the Securities Act of 1933, Code of 
176.35 	Federal Regulations, title 17, part 230.147;
176.36 	(3) the sale of securities must be conducted exclusively through a MNvest portal;
177.1 	(4) the MNvest issuer shall require the portal operator to provide or make available 
177.2 	to prospective purchasers through the MNvest portal a copy of the MNvest issuer's balance 
177.3 	sheet and income statement for the MNvest issuer's most recent fiscal year, if the issuer 
177.4 	was in existence. For offerings beginning more than 90 days after the issuer's most recent 
177.5 	fiscal year end, or if the MNvest issuer was not in existence the previous calendar year, the 
177.6 	MNvest issuer must provide or make available a balance sheet as of a date not more than 
177.7 	90 days before the commencement of the MNvest offering for the MNvest issuer's most 
177.8 	recently completed fiscal year, or such shorter portion the MNvest issuer was in existence 
177.9 	during that period, and the year-to-date period, or inception-to-date period, if shorter, 
177.10 	corresponding with the more recent balance sheet required by this clause;
177.11 	(5) in any 12-month period, the MNvest issuer shall not raise more than the 
177.12 	aggregate amounts set forth in item (i) or (ii), either in cash or other consideration, in 
177.13 	connection with one or more MNvest offerings:
177.14 	(i) $2,000,000 if the financial statements described in clause (4) have been (A) 
177.15 	audited by a certified public accountant firm licensed under chapter 326A using auditing 
177.16 	standards issued by either the American Institute of Certified Public Accountants or the 
177.17 	Public Company Oversight Board, or (B) reviewed by a certified public accountant 
177.18 	firm licensed under chapter 326A using the Statements on Standards for Accounting 
177.19 	and Review Services issued by the Accounting and Review Services Committee of the 
177.20 	American Institute of Certified Public Accountants; or
177.21 	(ii) $1,000,000 if the financial statements described in clause (4) have not been 
177.22 	audited or reviewed as described in item (i);
177.23 	(6) the MNvest issuer must use at least 80 percent of the net proceeds of the offering 
177.24 	in connection with the operation of its business within Minnesota;
177.25 	(7) no single purchaser may purchase more than $10,000 in securities of the MNvest 
177.26 	issuer under this exemption in connection with a single MNvest offering unless the 
177.27 	purchaser is an accredited investor;
177.28 	(8) all payments for the purchase of securities must be held in escrow until the 
177.29 	aggregate capital deposited into escrow from all purchasers is equal to or greater than the 
177.30 	stated minimum offering amount. Purchasers will receive a return of all their subscription 
177.31 	funds if the minimum offering amount is not raised by the stipulated expiration date 
177.32 	required in subdivision 4, clause (2). The escrow agent must be a bank, regulated trust 
177.33 	company, savings bank, savings association, or credit union authorized to do business 
177.34 	in Minnesota. Prior to the execution of the escrow agreement between the issuer and 
177.35 	the escrow agent, the escrow agent must conduct searches of the issuer, its executive 
177.36 	officers, directors, governors, and managers, as provided to the escrow agent by the portal 
178.1 	operator, against the Specially Designated Nationals list maintained by the Office of 
178.2 	Foreign Assets Control. The escrow agent is only responsible to act at the direction of the 
178.3 	party establishing the escrow account and does not have a duty or liability, contractual 
178.4 	or otherwise, to an investor or other person except as set forth in the applicable escrow 
178.5 	agreement or other contract;
178.6 	(9) the MNvest issuer shall require the portal operator to make available to the 
178.7 	prospective purchaser through the MNvest portal a disclosure document that meets the 
178.8 	requirements set forth in subdivision 4;
178.9 	(10) before selling securities to a prospective purchaser on a MNvest portal, the 
178.10 	MNvest issuer shall require the portal operator to obtain from the prospective purchaser 
178.11 	the certification required under subdivision 5;
178.12 	(11) not less than ten days before the beginning of an offering of securities in reliance 
178.13 	on the exemption under this section, the MNvest issuer shall provide the following to 
178.14 	the administrator:
178.15 	(i) a notice of claim of exemption from registration, specifying that the MNvest 
178.16 	issuer will be conducting an offering in reliance on the exemption under this section;
178.17 	(ii) a copy of the disclosure document to be provided to prospective purchasers in 
178.18 	connection with the offering, as described in subdivision 4; and
178.19 	(iii) a filing fee of $300; and
178.20 	(12) the MNvest issuer and the portal operator may engage in solicitation and 
178.21 	advertising of the MNvest offering provided that:
178.22 	(i) the advertisement contains disclaiming language which clearly states:
178.23 	(A) the advertisement is not the offer and is for informational purposes only;
178.24 	(B) the offering is being made in reliance on the exemption under this section;
178.25 	(C) the offering is directed only to residents of the state;
178.26 	(D) all offers and sales are made through a MNvest portal; and
178.27 	(E) the Department of Commerce is the securities regulator in Minnesota;
178.28 	(ii) along with the disclosures required under item (i), the advertisement may contain 
178.29 	no more than the following information:
178.30 	(A) the name and contact information of the MNvest issuer;
178.31 	(B) a brief description of the general type of business of the MNvest issuer;
178.32 	(C) the minimum offering amount the MNvest issuer is attempting to raise through 
178.33 	its offering;
178.34 	(D) a description of how the issuer will use the funds raised through the MNvest 
178.35 	offering;
178.36 	(E) the duration that the MNvest offering will remain open;
179.1 	(F) the MNvest issuer's logo; and
179.2 	(G) a link to the MNvest issuer's Web site and the MNvest portal in which the 
179.3 	MNvest offering is being made;
179.4 	(iii) the advertisement complies with all applicable state and federal laws.
179.5 		Subd. 4.Required disclosures to prospective MNvest offering purchasers.
 179.6 	The MNvest issuer shall require the portal operator to make available to the prospective 
179.7 	purchaser through the MNvest portal a printable or downloadable disclosure document 
179.8 	containing the following:
179.9 	(1) the MNvest issuer's type of entity, the address and telephone number of its 
179.10 	principal office, its formation history for the previous five years, a summary of the material 
179.11 	facts of its business plan and its capital structure, and its intended use of the offering 
179.12 	proceeds, including any amounts to be paid from the proceeds of the MNvest offering, as 
179.13 	compensation or otherwise, to an owner, executive officer, director, governor, manager, 
179.14 	member, or other person occupying a similar status or performing similar functions on 
179.15 	behalf of the MNvest issuer;
179.16 	(2) the MNvest offering must stipulate the date on which the offering will expire, 
179.17 	which must not be longer than 12 months from the date the MNvest offering commenced;
179.18 	(3) a copy of the escrow agreement between the escrow agent, the MNvest issuer, 
179.19 	and, if applicable, the portal operator, as described in subdivision 3, clause (8);
179.20 	(4) the financial statements required under subdivision 3, clause (4);
179.21 	(5) the identity of all persons owning more than ten percent of any class of equity 
179.22 	interests in the company;
179.23 	(6) the identity of the executive officers, directors, governors, managers, members, 
179.24 	and other persons occupying a similar status or performing similar functions in the name of 
179.25 	and on the behalf of the MNvest issuer, including their titles and their relevant experience;
179.26 	(7) the terms and conditions of the securities being offered, a description of investor 
179.27 	exit strategies, and of any outstanding securities of the MNvest issuer; the minimum and 
179.28 	maximum amount of securities being offered; either the percentage economic ownership 
179.29 	of the MNvest issuer represented by the offered securities, assuming the minimum and, if 
179.30 	applicable, maximum number of securities being offered is sold, or the valuation of the 
179.31 	MNvest issuer implied by the price of the offered securities; the price per share, unit, or 
179.32 	interest of the securities being offered; any restrictions on transfer of the securities being 
179.33 	offered; and a disclosure that any future issuance of securities might dilute the value of 
179.34 	securities being offered;
179.35 	(8) the identity of and consideration payable to a person who has been or will be 
179.36 	retained by the MNvest issuer to assist the MNvest issuer in conducting the offering and 
180.1 	sale of the securities, including a portal operator, but excluding (i) persons acting primarily 
180.2 	as accountants or attorneys, and (ii) employees whose primary job responsibilities involve 
180.3 	operating the business of the MNvest issuer rather than assisting the MNvest issuer in 
180.4 	raising capital;
180.5 	(9) a description of any pending material litigation, legal proceedings, or regulatory 
180.6 	action involving the MNvest issuer or any executive officers, directors, governors, 
180.7 	managers, members, and other persons occupying a similar status or performing similar 
180.8 	functions in the name of and on behalf of the MNvest issuer;
180.9 	(10) a statement of the material risks unique to the MNvest issuer and its business 
180.10 	plans;
180.11 	(11) a statement that the securities have not been registered under federal or state 
180.12 	securities law and that the securities are subject to limitations on resale; and
180.13 	(12) the following legend must be displayed conspicuously in the disclosure 
180.14 	document:
180.15 	"IN MAKING AN INVESTMENT DECISION, PURCHASERS MUST RELY 
180.16 	ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF 
180.17 	THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE 
180.18 	SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR 
180.19 	STATE SECURITIES COMMISSION OR DIVISION OR OTHER REGULATORY 
180.20 	AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE 
180.21 	NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY 
180.22 	OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY 
180.23 	IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO 
180.24 	RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE 
180.25 	TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY SUBSECTION 
180.26 	(e) OF SEC RULE 147 (CODE OF FEDERAL REGULATIONS, TITLE 17, PART 
180.27 	230.147 (e)) AS PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS 
180.28 	AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT 
180.29 	TO REGISTRATION OR EXEMPTION THEREFROM. PURCHASERS SHOULD 
180.30 	BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL 
180.31 	RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME."
180.32 		Subd. 5.Required certification from MNvest offering purchasers. Before 
180.33 	selling securities to a prospective purchaser through a MNvest portal, the MNvest issuer 
180.34 	shall require the portal operator to obtain from the prospective purchaser through the 
180.35 	applicable MNvest portal a written or electronic certification that includes, at a minimum, 
180.36 	the following statements:
181.1 	"I UNDERSTAND AND ACKNOWLEDGE THAT:
181.2 	If I make an investment in an offering through this MNvest portal, it is very likely 
181.3 	that I am investing in a high-risk, speculative business venture that could result in the 
181.4 	complete loss of my investment, and I need to be able to afford such a loss.
181.5 	This offering has not been reviewed or approved by any state or federal securities 
181.6 	commission or division or other regulatory authority and that no such person or authority 
181.7 	has confirmed the accuracy or determined the adequacy of any disclosure made to me 
181.8 	relating to this offering.
181.9 	If I make an investment in an offering through this MNvest portal, it is very likely 
181.10 	that the investment will be difficult to transfer or sell and, accordingly, I may be required 
181.11 	to hold the investment indefinitely.
181.12 	By entering into this transaction with the company, I am affirmatively representing 
181.13 	myself as being a Minnesota resident at the time that this contract is formed, and if this 
181.14 	representation is subsequently shown to be false, the contract is void."
181.15 		Subd. 6.MNvest portal. A MNvest portal must satisfy the requirements of clauses 
181.16 	(1) through (4):
181.17 	(1) the Web site does not contain the word "MNvest" in its URL address;
181.18 	(2) the Web site implements steps to limit Web site access to the offer or sale of 
181.19 	securities to only Minnesota residents when conducting MNvest offerings; and
181.20 	(3) MNvest offerings may not be viewed on the MNvest portal by a prospective 
181.21 	purchaser until:
181.22 	(i) the portal operator verifies, through its exercise of reasonable steps, such as using 
181.23 	a third-party verification service or as otherwise approved by the administrator, that the 
181.24 	prospective purchaser is a Minnesota resident; and
181.25 	(ii) the prospective purchaser makes an affirmative acknowledgment, electronically 
181.26 	through the MNvest portal, that:
181.27 	(A) I am a Minnesota resident;
181.28 	(B) the securities and investment opportunities listed on this Web site involve 
181.29 	high-risk, speculative business ventures. If I choose to invest in any securities or 
181.30 	investment opportunity listed on this Web site, I may lose all of my investment, and 
181.31 	I can afford such a loss;
181.32 	(C) the securities and investment opportunities listed on this Web site have not 
181.33 	been reviewed or approved by any state or federal securities commission or division or 
181.34 	other regulatory authority, and no such person or authority, including this Web site, has 
181.35 	confirmed the accuracy or determined the adequacy of any disclosure made to prospective 
181.36 	investors relating to any offering; and
182.1 	(D) if I choose to invest in any securities or investment opportunity listed on this 
182.2 	Web site, I understand that the securities I will acquire may be difficult to transfer or sell, 
182.3 	that there is no ready market for the sale of such securities, that it may be difficult or 
182.4 	impossible for me to sell or otherwise dispose of this investment at any price, and that, 
182.5 	accordingly, I may be required to hold this investment indefinitely; and
182.6 	(4) the Web site complies with all other rules adopted by the administrator.
182.7 		Subd. 7.Portal operator. (a) An entity, other than a registered broker-dealer, 
182.8 	wishing to become a portal operator shall file with the administrator:
182.9 	(1) form ....... [to be approved by the administrator], including all applicable 
182.10 	schedules and supplemental information;
182.11 	(2) a copy of the articles of incorporation or other documents that indicate the 
182.12 	entity's form of organization; and
182.13 	(3) a filing fee of $200.
182.14 	(b) A portal operator's registration expires 12 months from the date the administrator 
182.15 	has approved the entity as a portal operator, and subsequent registration for the succeeding 
182.16 	12-month period shall be issued upon written application and upon payment of a renewal 
182.17 	fee of $200, without filing of further statements or furnishing any further information, 
182.18 	unless specifically requested by the administrator. This section is not applicable to a 
182.19 	registered broker-dealer functioning as a portal operator.
182.20 	(c) A portal operator that is not a broker-dealer registered under this chapter shall not:
182.21 	(1) offer investment advice or recommendations, provided that a portal operator 
182.22 	shall not be deemed to be offering investment advice or recommendations merely because 
182.23 	it (i) selects, or may perform due diligence with respect to, issuers or offerings to be listed, 
182.24 	or (ii) provides general investor educational materials;
182.25 	(2) provide transaction-based compensation for securities sold under this chapter to 
182.26 	employees, agents, or other persons unless the employees, agents, or other persons are 
182.27 	registered with the administrator and permitted to receive such compensation;
182.28 	(3) charge a fee to the issuer for an offering of securities on a MNvest portal unless 
182.29 	the fee is (i) a fixed amount for each offering, (ii) a variable amount based on the length of 
182.30 	time that the securities are offered on the MNvest portal, or (iii) a combination of such 
182.31 	fixed and variable amounts; or
182.32 	(4) hold, manage, possess, or otherwise handle purchaser funds or securities. This 
182.33 	restriction does not apply if the issuer is the portal operator.
182.34 	(d) A portal operator shall provide the administrator with read-only access to 
182.35 	administrative sections of the MNvest portal.
183.1 	(e) A portal operator shall comply with the record-keeping requirements of this 
183.2 	paragraph, provided that the failure of a portal operator that is not an issuer to maintain 
183.3 	records in compliance with this paragraph shall not affect the MNvest issuer's exemption 
183.4 	from registration afforded by this section:
183.5 	(1) a portal operator shall maintain and preserve, for a period of five years from either 
183.6 	the date of the closing or termination of the securities offering, the following records:
183.7 	(i) the name of each issuer whose securities have been listed on its MNvest portal;
183.8 	(ii) the full name, residential address, Social Security number, date of birth, and 
183.9 	copy of a state-issued identification for all owners with greater than ten percent voting 
183.10 	equity in an issuer;
183.11 	(iii) copies of all offering materials that have been displayed on its MNvest portal;
183.12 	(iv) the names and other personal information of each purchaser who has registered 
183.13 	at its MNvest portal;
183.14 	(v) any agreements and contracts between the portal operator and the issuer; and
183.15 	(vi) any information used to establish that a MNvest issuer, prospective MNvest 
183.16 	purchaser, or MNvest purchaser is a Minnesota resident;
183.17 	(2) a portal operator shall, upon written request of the administrator, furnish to the 
183.18 	administrator any records required to be maintained and preserved under this subdivision;
183.19 	(3) the records required to be kept and preserved under this subdivision must be 
183.20 	maintained in a manner, including by any electronic storage media, that will permit the 
183.21 	immediate location of any particular document so long as such records are available for 
183.22 	immediate and complete access by representatives of the administrator. Any electronic 
183.23 	storage system must preserve the records exclusively in a nonrewriteable, nonerasable 
183.24 	format; verify automatically the quality and accuracy of the storage media recording 
183.25 	process; serialize the original and, if applicable, duplicate units storage media, and 
183.26 	time-date for the required period of retention the information placed on such electronic 
183.27 	storage media; and be able to download indexes and records preserved on electronic 
183.28 	storage media to an acceptable medium. In the event that a records retention system 
183.29 	commingles records required to be kept under this subdivision with records not required to 
183.30 	be kept, representatives of the administrator may review all commingled records; and
183.31 	(4) a portal operator shall maintain such other records as the administrator shall 
183.32 	determine by rule.
183.33 		Subd. 8.Portal operator; privacy of purchaser information. (a) For purposes of 
183.34 	this subdivision, "personal information" means information provided to a portal operator 
183.35 	by a prospective purchaser or purchaser that identifies, or can be used to identify, the 
183.36 	prospective purchaser or purchaser.
184.1 	(b) Except as provided in paragraph (c), a portal operator must not disclose personal 
184.2 	information without written or electronic consent from the prospective purchaser or 
184.3 	purchaser that authorizes the disclosure.
184.4 	(c) Paragraph (b) does not apply to:
184.5 	(1) records required to be provided to the administrator under subdivision 7, 
184.6 	paragraph (e);
184.7 	(2) the disclosure of personal information to a MNvest issuer relating to its MNvest 
184.8 	offering; or
184.9 	(3) the disclosure of personal information to the extent required or authorized under 
184.10 	other law.
184.11 		Subd. 9.Bad actor disqualification. (a) An exemption under this section is not 
184.12 	available for a sale if securities in the MNvest issuer; any predecessor of the MNvest 
184.13 	issuer; any affiliated issuer; any director, executive officer, other officer participating in 
184.14 	the MNvest offering, general partner, or managing member of the MNvest issuer; any 
184.15 	beneficial owner of 20 percent or more of the MNvest issuer's outstanding voting equity 
184.16 	securities, calculated on the basis of voting power; any promoter connected with the 
184.17 	MNvest issuer in any capacity at the time of the sale; any investment manager of an 
184.18 	issuer that is a pooled investment fund; any general partner or managing member of any 
184.19 	investment manager; or any director, executive officer, or other officer participating in 
184.20 	the offering of any investment manager or general partner or managing member of the 
184.21 	investment manager:
184.22 	(1) has been convicted, within ten years before the offering, or five years, in the case 
184.23 	of MNvest issuers, their predecessors, and affiliated issuers, of any felony or misdemeanor:
184.24 	(i) in connection with the purchase or sale of any security;
184.25 	(ii) involving the making of any false filing with the Securities and Exchange 
184.26 	Commission or a state administrator; or
184.27 	(iii) arising out of the conduct of the business of an underwriter, broker, dealer, 
184.28 	municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;
184.29 	(2) is subject to any order, judgment, or decree of any court of competent jurisdiction, 
184.30 	entered within five years before the sale, that, at the time of the sale, restrains or enjoins 
184.31 	the person from engaging or continuing to engage in any conduct or practice:
184.32 	(i) in connection with the purchase or sale of any security;
184.33 	(ii) involving the making of any false filing with the Securities and Exchange 
184.34 	Commission or a state administrator; or
184.35 	(iii) arising out of the conduct of the business of an underwriter, broker, dealer, 
184.36 	municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;
185.1 	(3) is subject to a final order of a state securities commission or an agency or officer 
185.2 	of a state performing like functions; a state authority that supervises or examines banks, 
185.3 	savings associations, or credit unions; a state insurance commission or an agency or 
185.4 	officer of a state performing like functions; an appropriate federal banking agency; the 
185.5 	United States Commodity Futures Trading Commission; or the National Credit Union 
185.6 	Administration that:
185.7 	(i) at the time of the offering, bars the person from:
185.8 	(A) association with an entity regulated by the commission, authority, agency, or 
185.9 	officer;
185.10 	(B) engaging in the business of securities, insurance, or banking; or
185.11 	(C) engaging in savings association or credit union activities; or
185.12 	(ii) constitutes a final order based on a violation of any law or regulation that prohibits 
185.13 	fraudulent, manipulative, or deceptive conduct entered within ten years before the offering;
185.14 	(4) is subject to an order of the Securities and Exchange Commission entered pursuant 
185.15 	to section 15(b) or 15B(c) of the Securities Exchange Act of 1934, United States Code, title 
185.16 	15, section 78o(b) or 78o-4(c) or section 203(e) or (f) of the Investment Advisers Act of 
185.17 	1940, United States Code, title 15, section 80b-3(e) or (f) that, at the time of the offering:
185.18 	(i) suspends or revokes the person's registration as a broker, dealer, municipal 
185.19 	securities dealer, or investment adviser;
185.20 	(ii) places limitations on the activities, functions, or operations of the person; or
185.21 	(iii) bars the person from being associated with any entity or from participating in 
185.22 	the offering of any penny stock;
185.23 	(5) is subject to any order of the Securities and Exchange Commission or a state 
185.24 	administrator entered within five years before the sale that, at the time of the sale, orders 
185.25 	the person to cease and desist from committing or causing a violation or future violation of:
185.26 	(i) any scienter-based antifraud provision of the federal securities laws, including 
185.27 	without limitation section 17(a)(1) of the Securities Act of 1933, United States Code, title 
185.28 	15, section 77q(a)(1), section 10(b) of the Securities Exchange Act of 1934, United States 
185.29 	Code, title 15, section 78j(b) and Code of Federal Regulations, title 17, section 240.10b-5, 
185.30 	section 15(c)(1) of the Securities Exchange Act of 1934, United States Code, title 15, 
185.31 	section 78o(c)(1) and section 206(1) of the Investment Advisers Act of 1940, United 
185.32 	States Code, title 15, section 80b-6(1), or any other rule or regulation thereunder; or
185.33 	(ii) section 5 of the Securities Act of 1933, United States Code, title 15, section 77e;
185.34 	(6) is suspended or expelled from membership in, or suspended or barred from 
185.35 	association with a member of, a registered national securities exchange or a registered 
186.1 	national or affiliated securities association for any act or omission to act constituting 
186.2 	conduct inconsistent with just and equitable principles of trade;
186.3 	(7) has filed as a registrant or issuer, or was or was named as an underwriter in, any 
186.4 	registrations statement or Regulation A offering statement filed with the Securities and 
186.5 	Exchange Commission or a state administrator that, within five years before the sale, was 
186.6 	the subject of a refusal order, stop order, or order suspending the Regulation A exemption, 
186.7 	or is, at the time of the sale, the subject of an investigation or proceeding to determine 
186.8 	whether a stop order or suspension order should be issued; or
186.9 	(8) is subject to a United States Postal Service false representation order entered 
186.10 	within five years before the offering, or is, at the time of the offering, subject to a 
186.11 	temporary restraining order or preliminary injunction with respect to conduct alleged by 
186.12 	the United States Postal Service to constitute a scheme or device for obtaining money or 
186.13 	property through the mail by means of false representations.
186.14 	(b) Paragraph (a) does not apply:
186.15 	(1) with respect to any conviction, order, judgment, decree, suspension, expulsion, 
186.16 	or bar that occurred or was issued before September 23, 2013;
186.17 	(2) upon a showing of good cause and without prejudice to any other action by 
186.18 	the Securities and Exchange Commission or a state administrator, if the Securities and 
186.19 	Exchange Commission or a state administrator determines that it is not necessary under 
186.20 	the circumstances that an exemption be denied;
186.21 	(3) if, before the relevant offering, the court of regulatory authority that entered the 
186.22 	relevant order, judgment, or decree advises in writing, whether contained in the relevant 
186.23 	judgment, order, or decree or separately to the Securities and Exchange Commission or a 
186.24 	state administrator or their staff, that disqualification under paragraph (a) should not arise 
186.25 	as a consequence of the order, judgment, or decree; or
186.26 	(4) if the MNvest issuer establishes that it did not know and, in the exercise of 
186.27 	reasonable care, could not have known that a disqualification existed under paragraph (a).
186.28 	(c) For purposes of paragraph (a), events relating to any affiliated issuer that occurred 
186.29 	before the affiliation arose will not be considered disqualifying if the affiliated entity is not:
186.30 	(1) in control of the issuer; or
186.31 	(2) under common control with the issuer by a third party that was in control of the 
186.32 	affiliated entity at the time of the events.

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

187.1 	Sec. 6. Minnesota Statutes 2014, section 80A.84, is amended to read:
187.2 	80A.84 SECTION 607; PUBLIC RECORDS; CONFIDENTIALITY.
187.3 	(a) Presumption of public records. Except as otherwise provided in subsection 
187.4 	(b), records obtained by the administrator or filed under this chapter, including a record 
187.5 	contained in or filed with a registration statement, application, notice filing, or report, are 
187.6 	public records and are available for public examination.
187.7 	(b) Nonpublic records. The following records are not public records and are not 
187.8 	available for public examination under subsection (a):
187.9 	(1) a record obtained by the administrator in connection with an audit or inspection 
187.10 	under section 80A.66(d) or an investigation under section 80A.79;
187.11 	(2) a part of a record filed in connection with a registration statement under sections 
187.12 	80A.49 and 80A.51 through 80A.53 or a record under section 80A.66(d) that contains 
187.13 	trade secrets or confidential information if the person filing the registration statement or 
187.14 	report has asserted a claim of confidentiality or privilege that is authorized by law;
187.15 	(3) a record that is not required to be provided to the administrator or filed under this 
187.16 	chapter and is provided to the administrator only on the condition that the record will not 
187.17 	be subject to public examination or disclosure;
187.18 	(4) a nonpublic record received from a person specified in section 80A.85(a);
187.19 	(5) any social security number, residential address unless used as a business address, 
187.20 	and residential telephone number contained in a record that is filed; and
187.21 	(6) a record obtained by the administrator through a designee of the administrator 
187.22 	that a rule or order under this chapter determines has been:
187.23 	(A) expunged from the administrator's records by the designee; or
187.24 	(B) determined to be nonpublic or nondisclosable by that designee if the administrator 
187.25 	finds the determination to be in the public interest and for the protection of investors; and
187.26 	(7) a record furnished to the administrator by a portal operator under section 
187.27 	80A.461, subdivision 7, paragraph (e).
187.28 	(c) Administrator discretion to disclose. If disclosure is for the purpose of a civil, 
187.29 	administrative, or criminal investigation, action, or proceeding or to a person specified 
187.30 	in section 80A.85(a), the administrator may disclose a record obtained in connection 
187.31 	with an audit or inspection under section 80A.66(d) or a record obtained in connection 
187.32 	with an investigation under section 80A.79.

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

187.34 	Sec. 7. Minnesota Statutes 2014, section 115C.09, subdivision 1, is amended to read:
188.1 		Subdivision 1.Reimbursable costs. (a) The board shall provide reimbursement to 
188.2 	eligible applicants for reimbursable costs.
188.3 	(b) The following costs are reimbursable for purposes of this chapter:
188.4 	(1) corrective action costs incurred by the applicant and documented in a form 
188.5 	prescribed by the board, except including the costs related to the physical removal of a 
188.6 	tank when the removal was requested or ordered by the commissioner as necessary for 
188.7 	corrective action under this chapter;
188.8 	(2) costs that the responsible person is legally obligated to pay as damages to third 
188.9 	parties for bodily injury, property damage, or corrective action costs incurred by a third 
188.10 	party caused by a release where the responsible person's liability for the costs has been 
188.11 	established by a court order or court-approved settlement; and
188.12 	(3) up to 180 days of interest costs associated with the financing of corrective action 
188.13 	and incurred by the applicant in a written extension of credit or loan that has been signed by 
188.14 	the applicant and executed after July 1, 2002, provided that the applicant documents that:
188.15 	(i) the interest costs are incurred as a result of an extension of credit or loan from a 
188.16 	financial institution; and
188.17 	(ii) the board has not considered the application within the applicable time frame 
188.18 	specified in subdivision 2a, paragraph (c).
188.19 	Interest costs meeting the requirements of this clause are eligible only when they are 
188.20 	incurred between the date a complete initial application is received by the board, or the 
188.21 	date a complete supplemental application is received by the board, and the date that the 
188.22 	board first notifies the applicant of its reimbursement determination. An application is 
188.23 	complete when the information reasonably required or requested by the board's staff 
188.24 	from the applicant has been received by the board's staff. Interest costs are not eligible 
188.25 	for reimbursement to the extent they exceed two percentage points above the adjusted 
188.26 	prime rate charged by banks, as defined in section 270C.40, subdivision 5, at the time the 
188.27 	extension of credit or loan was executed.
188.28 	(c) A cost for liability to a third party is incurred by the responsible person when an 
188.29 	order or court-approved settlement is entered that sets forth the specific costs attributed 
188.30 	to the liability. Except as provided in this paragraph, reimbursement may not be made 
188.31 	for costs of liability to third parties until all eligible corrective action costs have been 
188.32 	reimbursed. If a corrective action is expected to continue in operation for more than one 
188.33 	year after it has been fully constructed or installed, the board may estimate the future 
188.34 	expense of completing the corrective action and, after subtracting this estimate from the 
188.35 	total reimbursement available under subdivision 3, reimburse the costs for liability to third 
188.36 	parties. The total reimbursement may not exceed the limit set forth in subdivision 3.

189.1 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies to 
189.2 	applications for reimbursement pending or received on or after that date, including those 
189.3 	that include tank removal costs previously denied payment by the board.

189.4 	Sec. 8. Minnesota Statutes 2014, section 216B.1694, subdivision 3, is amended to read:
189.5 		Subd. 3.Staging and permitting. (a) A natural gas-fired plant, and biomass or 
189.6 	other feedstock gasification facilities and related fuel or other conversion facilities, that is 
189.7 	are located on one site designated as an innovative energy project site under subdivision 
189.8 	1, clause (3), isare accorded the regulatory incentives granted to an innovative energy 
189.9 	project under subdivision 2, clauses (1) to (3), and may exercise the authorities therein.
189.10 	(b) Following issuance of a final state or federal environmental impact statement for 
189.11 	an innovative energy project that was a subject of contested case proceedings before an 
189.12 	administrative law judge:
189.13 	(1) site and route permits and water appropriation approvals for an innovative energy 
189.14 	project must also be deemed valid for a plant meeting the requirements of paragraph (a) 
189.15 	and shall remain valid until the earlierlater of (i) four years from the date the final required 
189.16 	state or federal preconstruction permit is issued or (ii) June 30, 2019; and
189.17 	(2) no air, water, or other permit issued by a state agency that is necessary for 
189.18 	constructing an innovative energy project may be the subject of contested case hearings, 
189.19 	notwithstanding Minnesota Rules, parts 7000.1750 to 7000.2200.

189.20 	Sec. 9. Minnesota Statutes 2014, section 216B.62, subdivision 3b, is amended to read:
189.21 		Subd. 3b.Assessment for department regional and national duties. In addition 
189.22 	to other assessments in subdivision 3, the department may assess up to $1,000,000 per 
189.23 	fiscal year for performing its duties under section 216A.07, subdivision 3a. The amount 
189.24 	in this subdivision shall be assessed to energy utilities in proportion to their respective 
189.25 	gross operating revenues from retail sales of gas or electric service within the state 
189.26 	during the last calendar year and shall be deposited into an account in the special revenue 
189.27 	fund and is appropriated to the commissioner of commerce for the purposes of section 
189.28 	216A.07, subdivision 3a. An assessment made under this subdivision is not subject to 
189.29 	the cap on assessments provided in subdivision 3 or any other law. For the purpose of 
189.30 	this subdivision, an "energy utility" means public utilities, generation and transmission 
189.31 	cooperative electric associations, and municipal power agencies providing natural gas or 
189.32 	electric service in the state. This subdivision expires June 30, 2015.

189.33 	Sec. 9. Minnesota Statutes 2014, section 332.31, subdivision 3, is amended to read:
190.1 		Subd. 3.Collection agency. "Collection agency" means and includes any person 
190.2 	engaged in the business of collection for others any account, bill or other indebtedness 
190.3 	except as hereinafter provided. It includes persons who furnish collection systems carrying 
190.4 	a name which simulates the name of a collection agency and who supply forms or form 
190.5 	letters to be used by the creditor, even though such forms direct the debtor to make payments 
190.6 	directly to the creditor rather than to such fictitious agency. The term also includes any 
190.7 	person engaged in a business the principal purpose of which is the collection of any debts.

190.8 	Sec. 10. Minnesota Statutes 2014, section 332.31, subdivision 6, is amended to read:
190.9 		Subd. 6.Collector. "Collector" is a person acting under the authority of a collection 
190.10 	agency under subdivision 3, and on its behalf in the business of collection for others an 
190.11 	account, bill, or other indebtedness except as otherwise provided in this chapter. The term 
190.12 	includes a person acting under the authority of a collection agency under subdivision 3 
190.13 	that is engaged in a business the principal purpose of which is the collection of any debts.

190.14 	Sec. 11. Laws 2014, chapter 312, article 2, section 14, is amended to read:
190.15 	Sec. 14. ASSIGNED RISK TRANSFER.
 190.16 	(a) By June 30, 2015, if the commissioner of commerce determines on the basis of 
190.17 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
190.18 	Statutes, section 79.252, the commissioner of management and budget shall transfer 
190.19 	the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This 
190.20 	transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 
190.21 	1, paragraph (a), clause (1). This is a onetime transfer.
190.22 	(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce 
190.23 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
190.24 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
190.25 	budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each 
190.26 	year, to the Minnesota minerals 21st century fund under Minnesota Statutes, section 
190.27 	116J.423. This transfer occurs prior to any transfer under Minnesota Statutes, section 
190.28 	79.251, subdivision 1, paragraph (a), clause (1), but after the transfer authorized in 
190.29 	paragraph (a). The total amount authorized for all transfers under this paragraph must not 
190.30 	exceed $24,100,000. This paragraph expires the day following the transfer in which the 
190.31 	total amount transferred under this paragraph to the Minnesota minerals 21st century 
190.32 	fund equals $24,100,000.
190.33 	(c) By June 30, 2015, if the commissioner of commerce determines on the basis of 
190.34 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
191.1 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
191.2 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
191.3 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
191.4 	paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If 
191.5 	a transfer occurs under this paragraph, the amount transferred is appropriated from the 
191.6 	general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes 
191.7 	of section 15. Both the transfer and appropriation under this paragraph are onetime. The 
191.8 	appropriation in this paragraph is available until June 30, 2018.
191.9 	(d) By June 30, 2016, if the commissioner of commerce determines on the basis of 
191.10 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
191.11 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
191.12 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
191.13 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
191.14 	paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If 
191.15 	a transfer occurs under this paragraph, the amount transferred is appropriated from the 
191.16 	general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes 
191.17 	of section 15. Both the transfer and appropriation under this paragraph are onetime. The 
191.18 	appropriation in this paragraph is available until June 30, 2019.
191.19 	(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of 
191.20 	management and budget shall transfer to the assigned risk plan under Minnesota Statutes, 
191.21 	section 79.252, any unencumbered or unexpended balance of the appropriations under 
191.22 	paragraphs (c) and (d) remaining on June 30, 2017, or the date the commissioner of 
191.23 	commerce determines that an excess surplus in the assigned risk plan does not exist, 
191.24 	whichever occurs earlier.

191.25 	Sec. 12. PUBLIC UTILITY SOLAR PROJECT.
 191.26 	The public utility for a solar project by or in cooperation with the public utility and 
191.27 	the Minnesota Army National Guard at a military and civilian training facility in Morrison 
191.28 	County must install when completing the solar project only solar photovoltaic modules that:
191.29 	(1) meet the "Made in Minnesota" qualification requirements under Minnesota 
191.30 	Statutes, section 216C.413;
191.31 	(2) comply with the "Made in USA" standard established by the United States 
191.32 	Federal Trade Commission because all or virtually all of the product's significant parts 
191.33 	and processing are of United States origin;
191.34 	(3) provide local economic benefits derived from the purchase and use of modules 
191.35 	manufactured in-state;
192.1 	(4) demonstrate the manufacturer's and supplier's total combined experience as 
192.2 	supported by evidence of years of solar manufacturing experience, manufacturing 
192.3 	certifications, component sourcing criteria, testing, and number of years of actual field 
192.4 	experience;
192.5 	(5) have the projected performance of the solar modules over an expected life of 30 
192.6 	years or more as supported by product design, third-party lab testing, and manufacturer's 
192.7 	and component supplier's field experience;
192.8 	(6) have the projected durability, safety, and reliability of the solar modules over an 
192.9 	expected life of 30 years or more, as supported by product design, third-party lab testing, 
192.10 	and manufacturer's and component supplier's field experience;
192.11 	(7) offer a minimum ten-year solar module workmanship warranty and 30-year solar 
192.12 	module power warranty, with a minimum warranted power performance of 80 percent 
192.13 	in year 30; and
192.14 	(8) provide a third-party certification supporting the environmental sustainability of 
192.15 	module component sources and manufacturing processes.

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

192.17 	Sec. 13. PREPURCHASING PROPANE; REPORT.
 192.18 	(a) The commissioner of commerce shall conduct a study of the operation of the 
192.19 	propane prepurchase program under Minnesota Statutes, section 216B.0951. The study 
192.20 	must address:
192.21 	(1) the amount and price of propane prepurchased;
192.22 	(2) the locations where prepurchased propane was stored and any costs of storage;
192.23 	(3) a description of how the propane was distributed to customers, focusing on the 
192.24 	activities of the local agencies that deliver energy assistance and propane distributors;
192.25 	(4) a description of any obstacles that interfered with the efficient operation of the 
192.26 	program, and suggestions for overcoming those obstacles; and
192.27 	(5) an estimate of the savings that accrued to propane customers as a result of the 
192.28 	prepurchase program.
192.29 	(b) By January 1 of 2016 and 2017, the commissioner of commerce shall submit a 
192.30 	report containing the information required under this section for the previous calendar year 
192.31 	to the chairs and ranking minority members of the senate and house of representatives 
192.32 	committees with primary responsibility for energy policy.

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

193.1 	Sec. 17. TASK FORCE ON NO-FAULT AUTO INSURANCE ISSUES.
 193.2 		Subdivision 1.Establishment. The task force on no-fault auto insurance is 
193.3 	established to review certain issues related to no-fault automobile insurance reform.
193.4 		Subd. 2.Membership; meetings; staff. (a) The task force shall be composed of 
193.5 	the following 19 members, who must be appointed by July 1, 2015, and who serve at the 
193.6 	pleasure of their appointing authorities:
193.7 	(1) the commissioner of commerce or a designee;
193.8 	(2) two members of the house of representatives, one appointed by the speaker of the 
193.9 	house and one appointed by the minority leader;
193.10 	(3) two members of the senate, one appointed by the Subcommittee on Committees 
193.11 	of the Committee on Rules and Administration and one appointed by the minority leader;
193.12 	(4) a person appointed by the Minnesota Chiropractic Association;
193.13 	(5) a person appointed by the Insurance Federation of Minnesota;
193.14 	(6) a person appointed by the Insurance Federation of Minnesota who is not a 
193.15 	member of the Federation;
193.16 	(7) a person appointed by the Minnesota Association for Justice; 
193.17 	(8) a person appointed by the Minnesota Medical Association;
193.18 	(9) a person appointed by the Minnesota Glass Association;
193.19 	(10) a person appointed by the Minnesota Hospital Association;
193.20 	(11) a person appointed by the Minnesota Ambulance Association;
193.21 	(12) a person appointed by the Minnesota Physical Therapy Association;
193.22 	(13) a person appointed by the Academy of Emergency Physicians-Minnesota 
193.23 	Chapter;
193.24 	(14) a person appointed by the Medical Group Management Association of 
193.25 	Minnesota;
193.26 	(15) a representative of a medical consulting company specializing in the delivery of 
193.27 	independent medical examinations, appointed by the commissioner;
193.28 	(16) a person appointed by the Minnesota Defense Lawyers Association; and
193.29 	(17) a person appointed by the Minnesota Ambulatory Surgery Center Association.
193.30 	(b) Compensation and expense reimbursement must be as provided under Minnesota 
193.31 	Statutes, section 15.059, subdivision 3, to members of the task force.
193.32 	(c) The commissioner of commerce shall convene the task force by August 1, 2015, 
193.33 	and shall appoint a chair from the membership of the task force. Staffing and technical 
193.34 	assistance must be provided by the Department of Commerce.
193.35 		Subd. 3.Duties. The task force shall review and evaluate the following issues 
193.36 	related to no-fault automobile insurance reform:
194.1 	(1) no-fault arbitration process;
194.2 	(2) independent medical exam process;
194.3 	(3) treatment standards and fee schedules; and
194.4 	(4) no-fault health provider oversight.
194.5 		Subd. 4.Report. By February 1, 2016, the task force must submit to the 
194.6 	chairs and ranking minority members of the house of representatives and senate 
194.7 	committees and divisions with primary jurisdiction over commerce and transportation its 
194.8 	written recommendations, including any draft legislation necessary to implement the 
194.9 	recommendations.
194.10 		Subd. 5.Expiration. The task force expires the day after submitting the report 
194.11 	under subdivision 4, or February 2, 2016, whichever is earlier.

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

194.13 	ARTICLE 9
194.14 	IRON RANGE RESOURCES

194.15 	Section 1. Minnesota Statutes 2014, section 123B.53, subdivision 1, is amended to read:
194.16 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
194.17 	revenue of a district is defined as follows:
194.18 	(1) the amount needed to produce between five and six percent in excess of the 
194.19 	amount needed to meet when due the principal and interest payments on the obligations 
194.20 	of the district for eligible projects according to subdivision 2, including the amounts 
194.21 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292 
194.22 	to 298.298, debt service loans and capital loans, lease purchase payments under section 
194.23 	126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 
194.24 	5, paragraph (a), minus
194.25 	(2) the amount of debt service excess levy reduction for that school year calculated 
194.26 	according to the procedure established by the commissioner.
194.27 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
194.28 	(1) obligations under section 123B.61;
194.29 	(2) the part of debt service principal and interest paid from the taconite environmental 
194.30 	protection economic development fund or Douglas J. Johnson economic protection trust, 
194.31 	excluding the portion of taconite payments from the Iron Range school consolidation and 
194.32 	cooperatively operated school account under section 298.28, subdivision 7a;
194.33 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
194.34 	amended by Laws 1992, chapter 499, article 5, section 24;
195.1 	(4) obligations under section 123B.62; and
195.2 	(5) obligations equalized under section 123B.535.
195.3 	(c) For purposes of this section, if a preexisting school district reorganized under 
195.4 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
195.5 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
195.6 	service equalization aid must be computed separately for each of the preexisting districts.
195.7 	(d) For purposes of this section, the adjusted net tax capacity determined according 
195.8 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
195.9 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

195.10 	Sec. 2. Minnesota Statutes 2014, section 298.018, subdivision 1, is amended to read:
195.11 		Subdivision 1.Within taconite assistance area. The proceeds of the tax paid under 
195.12 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
195.13 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
195.14 	(1) five percent to the city or town within which the minerals or energy resources 
195.15 	are mined or extracted, or within which the concentrate was produced. If the mining 
195.16 	and concentration, or different steps in either process, are carried on in more than one 
195.17 	taxing district, the commissioner shall apportion equitably the proceeds among the 
195.18 	cities and towns by attributing 50 percent of the proceeds of the tax to the operation of 
195.19 	mining or extraction, and the remainder to the concentrating plant and to the processes of 
195.20 	concentration, and with respect to each thereof giving due consideration to the relative 
195.21 	extent of the respective operations performed in each taxing district;
195.22 	(2) ten percent to the taconite municipal aid account to be distributed as provided 
195.23 	in section 298.282;
195.24 	(3) ten percent to the school district within which the minerals or energy resources 
195.25 	are mined or extracted, or within which the concentrate was produced. If the mining 
195.26 	and concentration, or different steps in either process, are carried on in more than one 
195.27 	school district, distribution among the school districts must be based on the apportionment 
195.28 	formula prescribed in clause (1);
195.29 	(4) 20 percent to a group of school districts comprised of those school districts 
195.30 	wherein the mineral or energy resource was mined or extracted or in which there is a 
195.31 	qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion 
195.32 	to school district indexes as follows: for each school district, its pupil units determined 
195.33 	under section 126C.05 for the prior school year shall be multiplied by the ratio of the 
195.34 	average adjusted net tax capacity per pupil unit for school districts receiving aid under 
195.35 	this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 
196.1 	ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 
196.2 	Each district shall receive that portion of the distribution which its index bears to the sum 
196.3 	of the indices for all school districts that receive the distributions;
196.4 	(5) 20 percent to the county within which the minerals or energy resources are 
196.5 	mined or extracted, or within which the concentrate was produced. If the mining and 
196.6 	concentration, or different steps in either process, are carried on in more than one county, 
196.7 	distribution among the counties must be based on the apportionment formula prescribed in 
196.8 	clause (1), provided that any county receiving distributions under this clause shall pay one 
196.9 	percent of its proceeds to the Range Association of Municipalities and Schools;
196.10 	(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be 
196.11 	distributed as provided in sections 273.134 to 273.136;
196.12 	(7) five percent to the Iron Range Resources and Rehabilitation Board for the 
196.13 	purposes of section 298.22;
196.14 	(8) three percent to the Douglas J. Johnson economic protection trust fund; and
196.15 	(9) seven percent to the taconite environmental protectioneconomic development 
196.16 	fund.
196.17 	The proceeds of the tax shall be distributed on July 15 each year.

196.18 	Sec. 3. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:
196.19 		Subdivision 1.The Office of the Commissioner of Iron Range resources 
196.20 	and rehabilitation. (a) The Office of the Commissioner of Iron Range resources and 
196.21 	rehabilitation is created as an agency in the executive branch of state government. The 
196.22 	governor shall appoint the commissioner of Iron Range resources and rehabilitation under 
196.23 	section 15.06.
196.24 	(b) The commissioner may hold other positions or appointments that are not 
196.25 	incompatible with duties as commissioner of Iron Range resources and rehabilitation. The 
196.26 	commissioner may appoint a deputy commissioner. All expenses of the commissioner, 
196.27 	including the payment of staff and other assistance as may be necessary, must be paid 
196.28 	out of the amounts appropriated by section 298.28 or otherwise made available by law 
196.29 	to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner 
196.30 	may utilize contracting options available under section 471.345 when the commissioner 
196.31 	determines it is in the best interest of the agency. The agency is not subject to sections 
196.32 	16E.016 and 16C.05.
196.33 	(c) When the commissioner determines that distress and unemployment exists or 
196.34 	may exist in the future in any county by reason of the removal of natural resources or 
196.35 	a possibly limited use of natural resources in the future and any resulting decrease in 
197.1 	employment, the commissioner may use whatever amounts of the appropriation made to 
197.2 	the commissioner of revenue in section 298.28 that are determined to be necessary and 
197.3 	proper in the development of the remaining resources of the county and in the vocational 
197.4 	training and rehabilitation of its residents, except that the amount needed to cover cost 
197.5 	overruns awarded to a contractor by an arbitrator in relation to a contract awarded by 
197.6 	the commissioner or in effect after July 1, 1985, is appropriated from the general fund. 
197.7 	For the purposes of this section, "development of remaining resources" includes, but is 
197.8 	not limited to, the promotion of tourism.
197.9 	(d) Notwithstanding any law to the contrary, any money in any account that is under 
197.10 	control of the commissioner on January 1, 2014, shall remain with the agency and be used 
197.11 	for economic development purposes or public infrastructure.

197.12 	Sec. 4. Minnesota Statutes 2014, section 298.22, subdivision 3, is amended to read:
197.13 		Subd. 3.Commissioner may acquire property. Whenever the commissioner of 
197.14 	Iron Range resources and rehabilitation has made determinations required by subdivision 
197.15 	1 and has determined that distress and unemployment exists or may exist in the future 
197.16 	in any county by reason of the removal of the natural resources or a possible limited use 
197.17 	thereof in the future and the decrease in employment resulting therefrom and deems that 
197.18 	economic conditions might be improved through the acquirement of real estate or personal 
197.19 	property is necessary and proper in the development of the remaining resources, the 
197.20 	commissioner may acquire such property or interests therein by gift, purchase, or lease. 
197.21 	The commissioner may purchase insurance to protect any property acquired from loss or 
197.22 	damage by fire, or to protect the commissioner from any liability the commissioner may 
197.23 	incur by reason of ownership of the property, or both. If after such property is acquired it 
197.24 	is necessary in the judgment of the commissioner to acquire a right-of-way for access to 
197.25 	projects operated on property acquired by gift, purchase, or lease, said right-of-way may 
197.26 	be acquired by condemnation in the manner provided by law. If the owner or operator of 
197.27 	an iron mine or related production or beneficiation facilities discontinues the operation 
197.28 	of the mine or facilities for any reason, the commissioner may acquire any or all of the 
197.29 	mine lands and related facilities by gift, purchase, lease, or condemnation in the manner 
197.30 	provided in chapter 117.

197.31 	Sec. 5. Minnesota Statutes 2014, section 298.22, subdivision 4, is amended to read:
197.32 		Subd. 4.Commissioner may accept grants and conveyances. Whenever property 
197.33 	has been granted and conveyed to the state of Minnesota in accordance with an agreement 
197.34 	made by the commissioner of Iron Range resources and rehabilitation and the commissioner 
198.1 	of administration for the necessary and proper development of the remaining resources of 
198.2 	any distressed county or economic development purposes, such grants, and conveyances 
198.3 	or leases are hereby accepted in accordance with the terms and conditions thereof.

198.4 	Sec. 6. Minnesota Statutes 2014, section 298.22, subdivision 5, is amended to read:
198.5 		Subd. 5.Commissioner may lease property. In order to carry out the terms and 
198.6 	provisions of this section, the commissioner of Iron Range resources and rehabilitation 
198.7 	and the commissioner of administration may lease any property acquired hereunder for 
198.8 	a term not to exceed 20 years upon such terms as they may determine, provided that 
198.9 	such property shall not be leased to any person in such a manner as to constitute a direct 
198.10 	contribution of working capital to a business enterprise. Such lease may provide that in the 
198.11 	event the property is ever sold by the state to such lessee, the lessee may obtain a credit 
198.12 	on the purchase price covering the rentals paid under the lease or any renewals thereof 
198.13 	and that said real estate can be conveyed by the commissioner of Iron Range resources 
198.14 	and rehabilitation and the commissioner of administration and the said commissioners 
198.15 	are hereby authorized to make such conveyances. The commissioner may lease, upon the 
198.16 	terms determined by the commissioner and approved by the board, surface and mineral 
198.17 	interests owned or acquired by the state of Minnesota acting by and through the Office 
198.18 	of the Commissioner of Iron Range Resources and Rehabilitation. The payments and 
198.19 	royalties from the leases shall be retained for the benefit of the agency.

198.20 	Sec. 7. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:
198.21 		Subd. 6.Private entity participation. The board may acquire an equity interest in 
198.22 	any project for which it provides funding. The commissioner may establish, participate in 
198.23 	the management of, and dispose of the assets of charitable foundations, nonprofit limited 
198.24 	liability companies, and nonprofit corporations associated with any project for which it 
198.25 	provides funding, including specifically, but without limitation, a corporation within the 
198.26 	meaning of section 317A.011, subdivision 6. Notwithstanding any law to the contrary, 
198.27 	agency funds that are transferred to any entity established by the commissioner under this 
198.28 	subdivision shall, upon request by the entity, be invested by the State Board of Investment 
198.29 	on behalf of the entity.

198.30 	Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:
198.31 		Subd. 10.Sale or privatization of functions. The commissioner of Iron Range 
198.32 	resources and rehabilitation may not sell or privatize the Ironworld Discovery Center or 
198.33 	Giants Ridge Golf and Ski Resort without prior approval by the board.

199.1 	Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:
199.2 		Subd. 11.Budgeting. The commissioner of Iron Range resources and rehabilitation 
199.3 	shall annually prepare a budget for operational expenditures, programs, and projects, 
199.4 	and submit it to the Iron Range Resources and Rehabilitation Board. After the budget 
199.5 	is approved by the board and the governor, the commissioner may spend money in 
199.6 	accordance with the approved budget.

199.7 	Sec. 10. Minnesota Statutes 2014, section 298.221, is amended to read:
199.8 	298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
199.9 	(a) Except as provided in paragraph (c), all money paid to the state of Minnesota 
199.10 	pursuant to the terms of any contract entered into by the state under authority of section 
199.11 	298.22 and any fees which may, in the discretion of the commissioner of Iron Range 
199.12 	resources and rehabilitation, be charged in connection with any project pursuant to that 
199.13 	section as amended, shall be deposited in the state treasury to the credit of the Iron Range 
199.14 	Resources and Rehabilitation Board account in the special revenue fund and are hereby 
199.15 	appropriated for the purposes of section 298.22.
199.16 	(b) Notwithstanding section 16A.013, merchandise may be accepted by the 
199.17 	commissioner of the Iron Range Resources and Rehabilitation Board for payment of 
199.18 	advertising contracts if the commissioner determines that the merchandise can be used 
199.19 	for special event prizes or mementos at facilities operated by the board. Nothing in this 
199.20 	paragraph authorizes the commissioner or a member of the board to receive merchandise 
199.21 	for personal use.
199.22 	(c) All fees charged by the commissioner in connection with public use of the 
199.23 	state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other 
199.24 	revenues derived by the commissioner from the operation or lease of those facilities 
199.25 	and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge 
199.26 	Recreation Area must be deposited into an Iron Range Resources and Rehabilitation 
199.27 	Board account that is created within the state enterprise fund. All funds deposited in the 
199.28 	enterprise fund account are appropriated to the commissioner to be expended, subject to 
199.29 	approval by the board, as follows:
199.30 	(1) to pay costs associated with the construction, equipping, operation, repair, or 
199.31 	improvement of the Giants Ridge Recreation Area facilities or lands;
199.32 	(2) to pay principal, interest and associated bond issuance, reserve, and servicing 
199.33 	costs associated with the financing of the facilities; and
199.34 	(3) to pay the costs of any other project authorized under section 298.22.

200.1 	Sec. 11. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:
200.2 		Subd. 3.Project approval. All projects authorized by this section shall be 
200.3 	submitted by the commissioner to the Iron Range Resources and Rehabilitation Board for 
200.4 	approval by the board. Prior to the commencement of a project involving the exercise by 
200.5 	the commissioner of any authority of sections 469.174 to 469.179, the governing body 
200.6 	of each municipality in which any part of the project is located and the county board of 
200.7 	any county containing portions of the project not located in an incorporated area shall by 
200.8 	majority vote approve or disapprove the project. Any project approved by the board and 
200.9 	the applicable governing bodies, if any, together with detailed information concerning the 
200.10 	project, its costs, the sources of its funding, and the amount of any bonded indebtedness to 
200.11 	be incurred in connection with the project, shall be transmitted to the governor, who shall 
200.12 	approve, disapprove, or return the proposal for additional consideration within 30 days of 
200.13 	receipt. No project authorized under this section shall be undertaken, and no obligations 
200.14 	shall be issued and no tax increments shall be expended for a project authorized under this 
200.15 	section until the project has been approved by the governor. The governor shall approve, 
200.16 	disapprove, or return the project for additional consideration within 30 days of receipt.

200.17 	Sec. 12. Minnesota Statutes 2014, section 298.222, is amended to read:
200.18 	298.222 CITATION.
200.19 	Sections 298.222 to 298.226 and Laws 1977, chapter 423, article 10, section 22 shall 
200.20 	be known as the Taconite Environmental Protection Economic Development Fund Act 
200.21 	of 1977.

200.22 	Sec. 13. Minnesota Statutes 2014, section 298.223, is amended to read:
200.23 	298.223 TACONITE AREA ENVIRONMENTAL PROTECTION 
200.24 	ECONOMIC DEVELOPMENT FUND.
200.25 		Subdivision 1.Creation; purposes. A fund called the taconite environmental 
200.26 	protection economic development fund is created for the purpose of reclaiming, restoring 
200.27 	and enhancing those areas of northeast Minnesota located within the taconite assistance 
200.28 	area defined in section 273.1341, that are adversely affected by the environmentally 
200.29 	damaging operations involved in mining taconite and iron ore and producing iron ore 
200.30 	concentrate and for the purpose of promoting the economic development of northeast 
200.31 	Minnesota. The taconite environmental protection economic development fund shall be 
200.32 	used for the following purposes:
201.1 	(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation 
201.2 	Board determines are in need of study and which will determine the environmental 
201.3 	problems requiring remedial action;
201.4 	(2) reclamation, restoration, or reforestation of mine lands not otherwise provided 
201.5 	for by state law;
201.6 	(3) local economic development projects but only if those projects are approved by 
201.7 	the board, and public works, including construction of sewer and water systems located 
201.8 	within the taconite assistance area defined in section 273.1341;
201.9 	(4) monitoring of mineral industry related health problems among mining employees;
201.10 	(5) local public works projects under section 298.227, paragraph (c); and
201.11 	(6) local public works projects as provided under this clause. The following amounts 
201.12 	shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
201.13 	(i) .4651 cent per ton to the city of Aurora for street repair and renovation;
201.14 	(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure 
201.15 	improvements to the south side industrial site;
201.16 	(iii) .6460 cent per ton to the city of Buhl for street repair;
201.17 	(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
201.18 	(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure 
201.19 	upgrades;
201.20 	(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure 
201.21 	upgrades;
201.22 	(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;
201.23 	(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility 
201.24 	modifications for the miners' memorial;
201.25 	(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
201.26 	(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
201.27 	(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
201.28 	(xii) .6460 cent per ton to the town of Balkan for community center repairs;
201.29 	(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
201.30 	(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;
201.31 	(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;
201.32 	(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
201.33 	(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
201.34 	(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
201.35 	(xix) .3230 cent per ton to Lake County for trail construction;
202.1 	(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand 
202.2 	Marais;
202.3 	(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure 
202.4 	improvements;
202.5 	(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
202.6 	(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer 
202.7 	improvements along Gayley Avenue;
202.8 	(xxiv) .3876 cent per ton to the city of Marble for construction of a city 
202.9 	administration facility;
202.10 	(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the 
202.11 	community center;
202.12 	(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure 
202.13 	upgrades;
202.14 	(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades 
202.15 	along Depot Street;
202.16 	(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter 
202.17 	improvements;
202.18 	(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer 
202.19 	infrastructure upgrades at Pokegema Golf Course and Park Place;
202.20 	(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades 
202.21 	for 1st Avenue from River Road to 3rd Street SE; and
202.22 	(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing 
202.23 	at Highway 2 and County Road 62.
202.24 		Subd. 2.Administration. (a) The taconite area environmental protection economic 
202.25 	development fund shall be administered by the commissioner of the Iron Range Resources 
202.26 	and Rehabilitation Board. The commissioner shall by September 1 of each year submit to 
202.27 	the board a list of projects to be funded from the taconite area environmental protection 
202.28 	economic development fund, with such supporting information including description of 
202.29 	the projects, plans, and cost estimates as may be necessary.
202.30 	(b) Each year no less than one-half of the amounts deposited into the taconite 
202.31 	environmental protection economic development fund must be used for public works 
202.32 	projects, including construction of sewer and water systems, as specified under subdivision 
202.33 	1, clause (3). The Iron Range Resources and Rehabilitation Board may waive the 
202.34 	requirements of this paragraph.
202.35 	(c) Upon approval by the board, the list of projects approved under this subdivision 
202.36 	shall be submitted to the governor by November 1 of each year. By December 1 of each 
203.1 	year, the governor shall approve or disapprove, or return for further consideration, each 
203.2 	project. Funds for a project may be expended only upon approval of the project by the 
203.3 	board and the governor. The commissioner may submit supplemental projects to the 
203.4 	board and governor for approval at any time.
203.5 		Subd. 3.Appropriation. There is annually appropriated to the commissioner of 
203.6 	Iron Range resources and rehabilitation taconite area environmental protection economic 
203.7 	development funds necessary to carry out approved projects and programs and the funds 
203.8 	necessary for administration of this section. Annual administrative costs, not including 
203.9 	detailed engineering expenses for the projects, shall not exceed five percent of the amount 
203.10 	annually expended from the fund.
203.11 	Funds for the purposes of this section are provided by section 298.28, subdivision 
203.12 	11, relating to the taconite area environmental protection economic development fund.

203.13 	Sec. 14. Minnesota Statutes 2014, section 298.225, subdivision 2, is amended to read:
203.14 		Subd. 2.Funding guaranteed distribution level. The money necessary for funding 
203.15 	the difference between the initial distribution made pursuant to section 298.28 and the 
203.16 	amount guaranteed in subdivision 1 is appropriated in equal proportions from the initial 
203.17 	current year distributions to the taconite environmental protection economic development 
203.18 	fund and to the Douglas J. Johnson economic protection trust pursuant to section 298.28. 
203.19 	If the initial distributions to the taconite environmental protection economic development 
203.20 	fund and the Douglas J. Johnson economic protection trust are insufficient to fund the 
203.21 	difference, the commissioner of Iron Range resources and rehabilitation shall make the 
203.22 	payments of any remaining difference from the corpus of the taconite environmental 
203.23 	protection economic development fund and the corpus of the Douglas J. Johnson economic 
203.24 	protection trust fund in equal proportions as directed by the commissioner of revenue.
203.25 	If a taconite producer ceases beneficiation operations permanently and is required 
203.26 	by a special law to make bond payments for a school district, the Douglas J. Johnson 
203.27 	economic protection trust fund shall assume the payments of the taconite producer if 
203.28 	the producer ceases to make the needed payments. The commissioner of Iron Range 
203.29 	resources and rehabilitation shall make these school bond payments from the corpus of 
203.30 	the Douglas J. Johnson economic protection trust fund in the amounts certified by the 
203.31 	commissioner of revenue.

203.32 	Sec. 15. Minnesota Statutes 2014, section 298.227, is amended to read:
203.33 	298.227 TACONITE ECONOMIC DEVELOPMENT MINING 
203.34 	REINVESTMENT FUND.
204.1 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
204.2 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by 
204.3 	the Iron Range Resources and Rehabilitation Board in a separate taconite economic 
204.4 	development mining reinvestment fund for each taconite and direct reduced ore producer. 
204.5 	Money from the fund for each producer shall be released by the commissioner after review 
204.6 	by a joint committee consisting of an equal number of representatives of the salaried 
204.7 	employees and the nonsalaried production and maintenance employees of that producer. 
204.8 	The District 11 director of the United States Steelworkers of America, on advice of each 
204.9 	local employee president, shall select the employee members. In nonorganized operations, 
204.10 	the employee committee shall be elected by the nonsalaried production and maintenance 
204.11 	employees. The review must be completed no later than six months after the producer 
204.12 	presents a proposal for expenditure of the funds to the committee. The funds held pursuant 
204.13 	to this section may be released only for workforce development and associated public 
204.14 	facility improvement, or for acquisition of plant and stationary mining equipment and 
204.15 	facilities for the producer or for research and development in Minnesota on new mining, or 
204.16 	taconite, iron, or steel production technology, but only if the producer provides a matching 
204.17 	expenditure equal to the amount of the distribution to be used for the same purpose 
204.18 	beginning with distributions in 2014. Effective for proposals for expenditures of money 
204.19 	from the fund beginning May 26, 2007, the commissioner may not release the funds before 
204.20 	the next scheduled meeting of the board. If a proposed expenditure is not approved by the 
204.21 	board, the funds must be deposited in the Taconite Environmental Protection Fund taconite 
204.22 	economic development fund under sections 298.222 to 298.225. If a producer uses money 
204.23 	which has been released from the fund prior to May 26, 2007 to procure haulage trucks, 
204.24 	mobile equipment, or mining shovels, and the producer removes the piece of equipment 
204.25 	from the taconite tax relief area defined in section 273.134 within ten years from the date 
204.26 	of receipt of the money from the fund, a portion of the money granted from the fund must 
204.27 	be repaid to the taconite economic development mining reinvestment fund. The portion 
204.28 	of the money to be repaid is 100 percent of the grant if the equipment is removed from 
204.29 	the taconite tax relief area within 12 months after receipt of the money from the fund, 
204.30 	declining by ten percent for each of the subsequent nine years during which the equipment 
204.31 	remains within the taconite tax relief area. If a taconite production facility is sold after 
204.32 	operations at the facility had ceased, any money remaining in the fund for the former 
204.33 	producer may be released to the purchaser of the facility on the terms otherwise applicable 
204.34 	to the former producer under this section. If a producer fails to provide matching funds 
204.35 	for a proposed expenditure within six months after the commissioner approves release 
204.36 	of the funds, the funds are available for release to another producer in proportion to the 
205.1 	distribution provided and under the conditions of this section. Any portion of the fund 
205.2 	which is not released by the commissioner within one year of its deposit in the fund shall 
205.3 	be divided between the taconite environmental protection economic development fund 
205.4 	created in section 298.223 and the Douglas J. Johnson economic protection trust fund 
205.5 	created in section 298.292 for placement in their respective special accounts. Two-thirds of 
205.6 	the unreleased funds shall be distributed to the taconite environmental protection economic 
205.7 	development fund and one-third to the Douglas J. Johnson economic protection trust fund.
205.8 	(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 
205.9 	distributions and the review process, an amount equal to ten cents per taxable ton of 
205.10 	production in 2007, for distribution in 2008 only, that would otherwise be distributed 
205.11 	under paragraph (a), may be used for a loan or grant for the cost of providing for a 
205.12 	value-added wood product facility located in the taconite tax relief area and in a county 
205.13 	that contains a city of the first class. This amount must be deducted from the distribution 
205.14 	under paragraph (a) for which a matching expenditure by the producer is not required. The 
205.15 	granting of the loan or grant is subject to approval by the board. If the money is provided 
205.16 	as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213, 
205.17 	subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the 
205.18 	taconite environment protection fund under sections 298.222 to 298.225. If a loan or 
205.19 	grant is not made under this paragraph by July 1, 2012, the amount that had been made 
205.20 	available for the loan under this paragraph must be transferred to the taconite environment 
205.21 	protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the 
205.22 	fund established under this section that exceeds ten cents per ton is available to qualifying 
205.23 	producers under paragraph (a) on a pro rata basis.
205.24 	(c) Repayment or transfer of money to the taconite environmental protection fund 
205.25 	under paragraph (b), item (ii), must be allocated by the Iron Range Resources and 
205.26 	Rehabilitation Board for public works projects in house legislative districts in the same 
205.27 	proportion as taxable tonnage of production in 2007 in each house legislative district, for 
205.28 	distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution 
205.29 	in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph 
205.30 	do not require approval by the governor. For purposes of this paragraph, "house legislative 
205.31 	districts" means the legislative districts in existence on May 15, 2009.

205.32 	Sec. 16. Minnesota Statutes 2014, section 298.28, subdivision 4, is amended to read:
205.33 		Subd. 4.School districts. (a) 32.15 cents per taxable ton, plus the increase provided 
205.34 	in paragraph (d), less the amount that would have been computed under Minnesota 
205.35 	Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, must be 
206.1 	allocated to qualifying school districts to be distributed, based upon the certification of the 
206.2 	commissioner of revenue, under paragraphs (b), (c), and (f).
206.3 	(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which 
206.4 	the lands from which taconite was mined or quarried were located or within which the 
206.5 	concentrate was produced. The distribution must be based on the apportionment formula 
206.6 	prescribed in subdivision 2.
206.7 	(ii) Four cents per taxable ton from each taconite facility must be distributed to 
206.8 	each affected school district for deposit in a fund dedicated to building maintenance 
206.9 	and repairs, as follows:
206.10 	(1) proceeds from Keewatin Taconite or its successor are distributed to Independent 
206.11 	School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor 
206.12 	districts;
206.13 	(2) proceeds from the Hibbing Taconite Company or its successor are distributed to 
206.14 	Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor 
206.15 	districts;
206.16 	(3) proceeds from the Mittal Steel Company and Minntac or their successors are 
206.17 	distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 
206.18 	2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
206.19 	(4) proceeds from the Northshore Mining Company or its successor are distributed 
206.20 	to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, 
206.21 	or their successor districts; and
206.22 	(5) proceeds from United Taconite or its successor are distributed to Independent 
206.23 	School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their 
206.24 	successor districts.
206.25 	Revenues that are required to be distributed to more than one district shall be 
206.26 	apportioned according to the number of pupil units identified in section 126C.05, 
206.27 	subdivision 1, enrolled in the second previous year.
206.28 	(c)(i) 24.72 cents per taxable ton, less any amount distributed under paragraph (e), 
206.29 	shall be distributed to a group of school districts comprised of those school districts which 
206.30 	qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a 
206.31 	qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion 
206.32 	to school district indexes as follows: for each school district, its pupil units determined 
206.33 	under section 126C.05 for the prior school year shall be multiplied by the ratio of the 
206.34 	average adjusted net tax capacity per pupil unit for school districts receiving aid under 
206.35 	this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 
206.36 	ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 
207.1 	Each district shall receive that portion of the distribution which its index bears to the sum 
207.2 	of the indices for all school districts that receive the distributions.
207.3 	(ii) Notwithstanding clause (i), each school district that receives a distribution 
207.4 	under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this 
207.5 	clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on 
207.6 	severed mineral values after reduction for any portion distributed to cities and towns 
207.7 	under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its 
207.8 	levy reduction under section 126C.48, subdivision 8, for the second year prior to the 
207.9 	year of the distribution shall receive a distribution equal to the difference; the amount 
207.10 	necessary to make this payment shall be derived from proportionate reductions in the 
207.11 	initial distribution to other school districts under clause (i). If there are insufficient tax 
207.12 	proceeds to make the distribution provided under this paragraph in any year, money must 
207.13 	be transferred from the taconite property tax relief account in subdivision 6, to the extent 
207.14 	of the shortfall in the distribution.
207.15 	(d)(1) Any school district described in paragraph (c) where a levy increase pursuant 
207.16 	to section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 
207.17 	2001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 
207.18 	times the pupil units identified in section 126C.05, subdivision 1, enrolled in the second 
207.19 	previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8 
207.20 	percent times the district's taxable net tax capacity in 2011.
207.21 	(2) Districts qualifying under paragraph (c) must receive additional taconite aid each 
207.22 	year equal to 22.5 percent of the amount obtained by subtracting:
207.23 	(i) 1.8 percent of the district's net tax capacity for 2011, from:
207.24 	(ii) the district's weighted average daily membership for fiscal year 2012, multiplied 
207.25 	by the sum of:
207.26 	(A) $415, plus
207.27 	(B) the district's referendum revenue allowance for fiscal year 2013.
207.28 	If the total amount provided by paragraph (d) is insufficient to make the payments 
207.29 	herein required then the entitlement of $175 per pupil unit shall be reduced uniformly 
207.30 	so as not to exceed the funds available. Any amounts received by a qualifying school 
207.31 	district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general 
207.32 	education aid which the district receives pursuant to section 126C.13 or the permissible 
207.33 	levies of the district. Any amount remaining after the payments provided in this paragraph 
207.34 	shall be paid to the commissioner of Iron Range resources and rehabilitation who shall 
207.35 	deposit the same in the taconite environmental protection economic development fund and 
207.36 	the Douglas J. Johnson economic protection trust fund as provided in subdivision 11.
208.1 	Each district receiving money according to this paragraph shall reserve the lesser of 
208.2 	the amount received under this paragraph or $25 times the number of pupil units served in 
208.3 	the district. It may use the money for early childhood programs.
208.4 	(e) There shall be distributed to any school district the amount which the school 
208.5 	district was entitled to receive under section 298.32 in 1975.
208.6 	(f) Four cents per taxable ton must be distributed to qualifying school districts 
208.7 	according to the distribution specified in paragraph (b), clause (ii), and 11 cents per taxable 
208.8 	ton must be distributed according to the distribution specified in paragraph (c). These 
208.9 	amounts are not subject to sections 126C.21, subdivision 4, and 126C.48, subdivision 8.

208.10 	Sec. 17. Minnesota Statutes 2014, section 298.28, subdivision 9a, is amended to read:
208.11 		Subd. 9a.Taconite economic development Mining reinvestment fund. (a) 
208.12 	25.1 cents per ton for distributions in 2002 and thereafter must be paid to the taconite 
208.13 	economic development mining reinvestment fund. No distribution shall be made under 
208.14 	this paragraph in 2004 or any subsequent year in which total industry production falls 
208.15 	below 30 million tons. Distribution shall only be made to a taconite producer's fund under 
208.16 	section 298.227 if the producer timely pays its tax under section 298.24 by the dates 
208.17 	provided under section 298.27, or pursuant to the due dates provided by an administrative 
208.18 	agreement with the commissioner.
208.19 	(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate 
208.20 	sold in the form of pellet chips and fines not exceeding 5/16 inch in size and not including 
208.21 	crushed pellets shall be paid to the taconite economic development mining reinvestment 
208.22 	fund. The amount paid shall not exceed $700,000 annually for all companies. If the initial 
208.23 	amount to be paid to the fund exceeds this amount, each company's payment shall be 
208.24 	prorated so the total does not exceed $700,000.

208.25 	Sec. 18. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:
208.26 		Subd. 9d.Iron Range higher education account. (a) Five cents per taxable ton 
208.27 	must be allocated to the Iron Range Resources and Rehabilitation Board to be deposited 
208.28 	in an Iron Range higher education account that is hereby created, to be used for higher 
208.29 	education programs conducted at educational institutions in the taconite assistance area 
208.30 	defined in section 273.1341. The Iron Range Higher Education committee under section 
208.31 	298.2214, and the Iron Range Resources and Rehabilitation Board must approve all 
208.32 	expenditures from the account.
208.33 	(b) For distributions in 2015 and subsequent years, at least 2.5 cents per ton must be 
208.34 	used for the Iron Range engineering program at Mesabi Range College.

209.1 	Sec. 19. Minnesota Statutes 2014, section 298.28, subdivision 11, is amended to read:
209.2 		Subd. 11.Remainder. (a) The proceeds of the tax imposed by section 298.24 which 
209.3 	remain after the distributions and payments in subdivisions 2 to 10a, as certified by the 
209.4 	commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with 
209.5 	interest earned on all money distributed under this section prior to distribution, shall 
209.6 	be divided between the taconite environmental protection economic development fund 
209.7 	created in section 298.223 and the Douglas J. Johnson economic protection trust fund 
209.8 	created in section 298.292 as follows: Two-thirds to the taconite environmental protection 
209.9 	economic development fund and one-third to the Douglas J. Johnson economic protection 
209.10 	trust fund. The proceeds shall be placed in the respective special accounts.
209.11 	(b) There shall be distributed to each city, town, and county the amount that it 
209.12 	received under section 294.26 in calendar year 1977; provided, however, that the amount 
209.13 	distributed in 1981 to the unorganized territory number 2 of Lake County and the town 
209.14 	of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be 
209.15 	distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake 
209.16 	County and the towns of Beaver Bay and Stony River based on the miles of track of Erie 
209.17 	Mining Company in each taxing district.
209.18 	(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board 
209.19 	the amounts it received in 1977 under section 298.22. The amount distributed under 
209.20 	this paragraph shall be expended within or for the benefit of the taconite assistance area 
209.21 	defined in section 273.1341.
209.22 	(d) There shall be distributed to each school district 62 percent of the amount that it 
209.23 	received under section 294.26 in calendar year 1977.

209.24 	Sec. 20. Minnesota Statutes 2014, section 298.28, subdivision 15, is amended to read:
209.25 		Subd. 15.Distribution of delayed payments. Notwithstanding any other provision 
209.26 	of this section or any other law, if payment of taxes collected under section 298.24 is 
209.27 	delayed past the due date because the taxpayer is a debtor in a pending bankruptcy 
209.28 	proceeding, the amount paid shall be distributed as follows when received:
209.29 	(1) 50 percent to St. Louis County acting as the counties' fiscal agent, to be 
209.30 	distributed as provided in sections 273.134 to 273.136;
209.31 	(2) 25 percent to the Douglas J. Johnson economic protection trust fund; and
209.32 	(3) 25 percent to the taconite environmental protection economic development fund.

209.33 	Sec. 21. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:
210.1 		Subd. 2.Use of money. Money in the Douglas J. Johnson economic protection trust 
210.2 	fund may be used for the following purposes:
210.3 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of 
210.4 	participation with private sources of financing, but a loan to a private enterprise shall be 
210.5 	for a principal amount not to exceed one-half of the cost of the project for which financing 
210.6 	is sought, and the rate of interest on a loan to a private enterprise shall be no less than the 
210.7 	lesser of eight percent or an interest rate three percentage points less than a full faith 
210.8 	and credit obligation of the United States government of comparable maturity, at the 
210.9 	time that the loan is approved;
210.10 	(2) to fund reserve accounts established to secure the payment when due of the 
210.11 	principal of and interest on bonds issued pursuant to section 298.2211;
210.12 	(3) to pay in periodic payments or in a lump-sum payment any or all of the interest 
210.13 	on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, 
210.14 	or retrofitting heating facilities in connection with district heating systems or systems 
210.15 	utilizing alternative energy sources;
210.16 	(4) (3) to invest in a venture capital fund or enterprise that will provide capital 
210.17 	to other entities that are engaging in, or that will engage in, projects or programs that 
210.18 	have the purposes set forth in subdivision 1. No investments may be made in a venture 
210.19 	capital fund or enterprise unless at least two other unrelated investors make investments 
210.20 	of at least $500,000 in the venture capital fund or enterprise, and the investment by the 
210.21 	Douglas J. Johnson economic protection trust fund may not exceed the amount of the 
210.22 	largest investment by an unrelated investor in the venture capital fund or enterprise. For 
210.23 	purposes of this subdivision, an "unrelated investor" is a person or entity that is not related 
210.24 	to the entity in which the investment is made or to any individual who owns more than 40 
210.25 	percent of the value of the entity, in any of the following relationships: spouse, parent, 
210.26 	child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of 
210.27 	the value of all interests in it. For purposes of determining the limitations under this 
210.28 	clause, the amount of investments made by an investor other than the Douglas J. Johnson 
210.29 	economic protection trust fund is the sum of all investments made in the venture capital 
210.30 	fund or enterprise during the period beginning one year before the date of the investment 
210.31 	by the Douglas J. Johnson economic protection trust fund; and
210.32 	(5) (4) to purchase forest land in the taconite assistance area defined in section 
210.33 	273.1341 to be held and managed as a public trust for the benefit of the area for the 
210.34 	purposes authorized in section 298.22, subdivision 5a. Property purchased under this 
210.35 	section may be sold by the commissioner upon approval by the board. The net proceeds 
210.36 	must be deposited in the trust fund for the purposes and uses of this section.
211.1 	Money from the trust fund shall be expended only in or for the benefit of the taconite 
211.2 	assistance area defined in section 273.1341.

211.3 	Sec. 22. Minnesota Statutes 2014, section 298.293, is amended to read:
211.4 	298.293 EXPENDING FUNDS.
211.5 	The funds provided by section 298.28, subdivision 11, relating to the Douglas J. 
211.6 	Johnson economic protection trust fund, except money expended pursuant to Laws 
211.7 	1982, Second Special Session, chapter 2, sections 8 to 14, shall be expended only in 
211.8 	an amount that does not exceed the sum of the net interest, dividends, and earnings 
211.9 	arising from the investment of the trust for the preceding 12 calendar months from the 
211.10 	date of the authorization plus, for fiscal year 1983, $10,000,000 from the corpus of the 
211.11 	fund. The funds may be spent only in or for the benefit of the taconite assistance area as 
211.12 	defined in section 273.1341. If during any year the taconite property tax account under 
211.13 	sections 273.134 to 273.136 does not contain sufficient funds to pay the property tax relief 
211.14 	specified in Laws 1977, chapter 423, article X, section 4, there is appropriated from this 
211.15 	trust fund to the relief account sufficient funds to pay the relief specified in Laws 1977, 
211.16 	chapter 423, article X, section 4.

211.17 	Sec. 23. Minnesota Statutes 2014, section 298.2961, subdivision 3, is amended to read:
211.18 		Subd. 3.Redistribution. (a) If a taconite production facility is sold after operations 
211.19 	at the facility had ceased, any money remaining in the taconite environmental fund for the 
211.20 	former producer may be released to the purchaser of the facility on the terms otherwise 
211.21 	applicable to the former producer under this section.
211.22 	(b) Any portion of the taconite environmental fund that is not released by the 
211.23 	commissioner within three years of its deposit in the taconite environmental fund shall 
211.24 	be divided between the taconite environmental protection economic development fund 
211.25 	created in section 298.223 and the Douglas J. Johnson economic protection trust fund 
211.26 	created in section 298.292 for placement in their respective special accounts. Two-thirds of 
211.27 	the unreleased funds must be distributed to the taconite environmental protection economic 
211.28 	development fund and one-third to the Douglas J. Johnson economic protection trust fund.

211.29 	Sec. 24.  REPEALER.
 211.30 	Minnesota Statutes 2014, section 298.298, is repealed.

212.1 	ARTICLE 10
212.2 	BUREAU OF MEDIATION SERVICES

212.3 	Section 1. Minnesota Statutes 2014, section 13.43, subdivision 6, is amended to read:
212.4 		Subd. 6.Access by labor organizations, the Bureau of Mediation Services, 
212.5 	and the Public Employment Relations Board. Personnel data may be disseminated to 
212.6 	labor organizations and the Public Employment Relations Board to the extent that the 
212.7 	responsible authority determines that the dissemination is necessary to conduct elections, 
212.8 	notify employees of fair share fee assessments, and implement the provisions of chapters 
212.9 	179 and 179A. Personnel data shall be disseminated to labor organizations, the Public 
212.10 	Employment Relations Board, and to the Bureau of Mediation Services to the extent the 
212.11 	dissemination is ordered or authorized by the commissioner of the Bureau of Mediation 
212.12 	Services, or the Public Employment Relations Board or its designee.

212.13 	EFFECTIVE DATE. This section is effective July 1, 2015.

212.14 	Sec. 2. [13.7909] PUBLIC EMPLOYMENT RELATIONS BOARD DATA.
212.15 		Subdivision 1.Definition. For purposes of this section, "board" means the Public 
212.16 	Employment Relations Board.
212.17 		Subd. 2.Not public data. (a) Except as provided in this subdivision, all data 
212.18 	maintained by the board about a charge or complaint of unfair labor practices and 
212.19 	appeals of determinations of the commissioner under section 179A.12, subdivision 11, 
212.20 	are classified as protected nonpublic data or confidential data, and become public when 
212.21 	admitted into evidence at a hearing conducted pursuant to section 179A.13. The data may 
212.22 	be subject to a protective order as determined by the board or a hearing officer. 
212.23 	(b) Notwithstanding sections 13.43 and 181.932, the following data are public: 
212.24 	(1) the filing date of unfair labor practice charges; 
212.25 	(2) the status of unfair labor practice charges as an original or amended charge; 
212.26 	(3) the names and job classifications of charging parties and charged parties; 
212.27 	(4) the provisions of law alleged to have been violated in unfair labor practice charges; 
212.28 	(5) the complaint issued by the board and all data in the complaint; 
212.29 	(6) the full and complete record of an evidentiary hearing before a hearing officer, 
212.30 	including the hearing transcript, exhibits admitted into evidence, and posthearing briefs, 
212.31 	unless subject to a protective order; 
212.32 	(7) recommended decisions and orders of hearing officers pursuant to section 
212.33 	179A.13, subdivision 1, paragraph (i);
213.1 	(8) exceptions to the hearing officer's recommended decision and order filed with the 
213.2 	board pursuant to section 179A.13, subdivision 1, paragraph (k);
213.3 	(9) briefs filed with the board; and
213.4 	(10) decisions and orders issued by the board.
213.5 	(c) Notwithstanding paragraph (a), individuals have access to their own statements 
213.6 	provided to the board under paragraph (a).
213.7 	(d) The board may make any data classified as protected nonpublic or confidential 
213.8 	pursuant to this subdivision accessible to any person or party if the access will aid the 
213.9 	implementation of chapters 179 and 179A or ensure due process protection of the parties.

213.10 	EFFECTIVE DATE. This section is effective July 1, 2015.

213.11 	Sec. 3. [179.851] LABOR-MANAGEMENT STAKEHOLDER COORDINATION.
213.12 	The commissioner of mediation services shall work with labor-management 
213.13 	stakeholders, including representatives from existing labor organizations and management 
213.14 	from existing companies or organizations, to foster mutual understanding and provide 
213.15 	input on the development of collaborative programs and services designed to improve 
213.16 	labor-management relations in both public and private sector organizations throughout 
213.17 	Minnesota. The commissioner may convene informal working groups to provide 
213.18 	information and assistance and to develop recommendations.

213.19 	Sec. 4. Minnesota Statutes 2014, section 179A.041, is amended by adding a 
213.20 	subdivision to read:
213.21 		Subd. 10.Open meetings. Chapter 13D does not apply to meetings of the board 
213.22 	when it is deliberating on the merits of unfair labor practice charges under sections 
213.23 	179.11, 179.12, and 179A.13; reviewing a recommended decision and order of a hearing 
213.24 	officer under section 179A.13; reviewing decisions of the commissioner of the Bureau of 
213.25 	Mediation Services relating to unfair labor practices under section 179A.12, subdivision 
213.26 	11; or exercising its hiring authority under section 179A.041.

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

213.28 	Sec. 5. Minnesota Statutes 2014, section 179A.041, is amended by adding a 
213.29 	subdivision to read:
213.30 		Subd. 11.Report. The board shall prepare and submit a report to the governor 
213.31 	and the chairs and ranking minority members of the committees with jurisdiction over 
213.32 	the board by November 15, 2016. The report shall summarize the nature, number, and 
214.1 	resolution of charges filed with the board. The report shall cover the period of July 
214.2 	1, 2015, through June 30, 2016.

214.3 	EFFECTIVE DATE. This section is effective July 1, 2015.