Bill Text: MN HF729 | 2013-2014 | 88th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Omnibus jobs, economic development, housing, commerce, and energy bill.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-05-23 - Secretary of State Chapter 85 [HF729 Detail]

Download: Minnesota-2013-HF729-Engrossed.html

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A bill for an act

relating to state government; appropriating money for jobs and economic
development, commerce and consumer protection, and housing; making
changes to labor and industry provisions; modifying and providing for
certain fees; modifying employment, economic development, and workforce
development provisions; making unemployment insurance changes; reducing
the unemployment insurance tax; establishing notice for contracts for deed
involving residential property; providing remedies; establishing the Office of
Broadband Development in the Department of Commerce and assigning it duties;
requiring the Department of Transportation to post a database on its Web site;
appropriating money to various boards, departments, and the Housing Finance
Agency; requiring reports;amending Minnesota Statutes 2012, sections 60A.14,
subdivision 1; 116J.70, subdivision 2a; 116J.8731, subdivisions 2, 3, 8, 9;
116L.17, subdivision 4, by adding a subdivision; 116U.26; 136F.37; 154.001, by
adding a subdivision; 154.003; 154.02; 154.05; 154.06; 154.065, subdivision 2;
154.07, subdivision 1; 154.08; 154.09; 154.10, subdivision 1; 154.11, subdivision
1; 154.12; 154.14; 154.15, subdivision 2; 154.26; 155A.23, subdivisions 3, 8, 11;
155A.25, subdivisions 1a, 4; 155A.27, subdivisions 4, 10; 155A.29, subdivision
2; 155A.30, by adding a subdivision; 177.27, subdivision 4; 237.012, subdivision
3; 239.101, subdivision 3; 245.4712, subdivision 1; 268.051, subdivision 5;
268.07, subdivision 3b; 268.125, subdivisions 1, 3, 4, 5; 268.136, subdivisions
1, 2, 3, 4, 5, by adding a subdivision; 268.199; 268.23; 268A.13; 268A.14,
subdivision 1; 326.02, subdivision 5; 326A.04, subdivisions 2, 3, 5, 7; 326A.10;
326B.081, subdivision 3; 326B.082, subdivision 11; 326B.093, subdivision 4;
326B.101; 326B.103, subdivision 11; 326B.121, subdivision 1; 326B.163, by
adding subdivisions; 326B.184, subdivisions 1, 2, by adding a subdivision;
326B.187; 326B.31, by adding a subdivision; 326B.33, subdivisions 19, 21;
326B.36, subdivision 7; 326B.37, by adding a subdivision; 326B.43, subdivision
2; 326B.49, subdivisions 2, 3; 326B.89, subdivision 1; 327B.04, subdivision
4; 341.21, subdivision 3a; 341.221; 341.27; 341.29; 341.30, subdivision 4;
341.32, subdivision 2; 341.321; 507.235, subdivision 2; 559.211, subdivision
2; Laws 2011, First Special Session chapter 2, article 2, section 3, subdivision
4; Laws 2012, chapter 201, article 1, section 3; proposing coding for new law
in Minnesota Statutes, chapters 116J; 116L; 154; 155A; 161; 179; 237; 268;
326B; 383D; 559; proposing coding for new law as Minnesota Statutes, chapter
80G; repealing Minnesota Statutes 2012, sections 116W.01; 116W.02; 116W.03;
116W.035; 116W.04; 116W.05; 116W.06; 116W.20; 116W.21; 116W.23;
116W.24; 116W.25; 116W.26; 116W.27; 116W.28; 116W.29; 116W.30; 116W.31;
116W.32; 116W.33; 116W.34; 155A.25, subdivision 1; 326A.03, subdivisions
2, 5, 8; 326B.31, subdivisions 18, 19, 22; 326B.978, subdivision 4; 507.235,
subdivision 4; Minnesota Rules, parts 1105.0600; 1105.2550; 1105.2700;
1307.0032; 3800.3520, subpart 5, items C, D; 3800.3602, subpart 2, item B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.

    The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

			2014		2015		Total
	General	$	81,899,000	$	75,301,000	$	157,200,000
	Workforce Development		17,476,000		17,476,000		34,952,000
	Remediation		700,000		700,000		1,400,000
	Workers' Compensation		22,784,000		22,574,000		45,358,000
	Total	$	122,859,000	$	116,051,000	$	238,910,000

Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.

    The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2014" and "2015" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2014, or
June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
year 2015. "The biennium" is fiscal years 2014 and 2015.

				APPROPRIATIONS
				Available for the Year
				Ending June 30
					2014		2015

Sec. 3. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1.Total Appropriation

$

91,788,000

$

86,255,000

	Appropriations by Fund
		2014	2015
	General	74,641,000	69,108,000
	Remediation	700,000	700,000
	Workforce Development	16,447,000	16,447,000

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

Subd. 2.Business and Community Development

40,590,000

35,610,000

	Appropriations by Fund
	General	39,890,000	34,910,000
	Remediation	700,000	700,000

(a)(1) $10,000,000 each year is for
the Minnesota investment fund under
Minnesota Statutes, section 116J.8731.
This appropriation is available until spent.
The base funding for this appropriation is
$13,750,000 each year in the fiscal year
2016-2017 biennium.
(2) Of the amount available under clause
(1), up to $3,000,000 in fiscal year 2014
is for a loan to facilitate initial investment
in the purchase and operation of a
biopharmaceutical manufacturing facility.
This loan is not subject to the loan limitations
under Minnesota Statutes, section 116J.8731,
and shall be forgiven by the commissioner
of employment and economic development
upon verification of meeting performance
goals. Purchases related to and for the
purposes of this loan award must be made
between January 1, 2013, and June 30, 2015.
The amount under this clause is available
until expended.
(3) Of the amount available under clause (1),
up to $2,000,000 is available for subsequent
investment in the biopharmaceutical facility
project in clause (2). The amount under this
clause is available until expended. Loan
thresholds under clause (2) must be achieved
and maintained to receive funding. Loans
are not subject to the loan limitations under
Minnesota Statutes, section 116J.8731, and
shall be forgiven by the commissioner of
employment and economic development
upon verification of meeting performance
goals. Purchases related to and for the
purposes of loan awards must be made during
the biennium the loan was received.
(4) Notwithstanding any law to the contrary,
the biopharmaceutical manufacturing facility
in this paragraph shall be deemed eligible
for the Minnesota job creation fund under
Minnesota Statutes, section 116J.8748.
(5) For purposes of clauses (1) to (4),
"biopharmaceutical" and "biologics" are
interchangeable and mean medical drugs
or medicinal preparations produced using
technology that uses biological systems,
living organisms, or derivatives of living
organisms, to make or modify products or
processes for specific use. The medical drugs
or medicinal preparations include but are not
limited to proteins, antibodies, nucleic acids,
and vaccines.
(b) $6,000,000 the first year and $12,500,000
the second year are for the Minnesota job
creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until spent.
(c) $1,272,000 the first year and $1,272,000
the second year are from the general fund for
contaminated site cleanup and development
grants under Minnesota Statutes, sections
116J.551 to 116J.558.
(d) $700,000 the first year and $700,000 the
second year are from the remediation fund for
contaminated site cleanup and development
grants under Minnesota Statutes, sections
116J.551 to 116J.558. This appropriation is
available until expended.
(e) $1,425,000 the first year and $1,425,000
the second year are from the general fund for
the business development competitive grant
program. Of this amount, up to five percent
is for administration and monitoring of the
business development competitive grant
program. All grant awards shall be for two
consecutive years. Grants shall be awarded
in the first year.
(f) $5,320,000 each year is from the general
fund for the Minnesota job skills partnership
program under Minnesota Statutes, sections
116L.01 to 116L.17. If the appropriation for
either year is insufficient, the appropriation
for the other year is available. This
appropriation is available until spent.
The general fund base for this program
is $4,195,000 each year in the fiscal year
2016-2017 biennium.
(g) $9,580,000 the first year is from the
general fund for grants under Minnesota
Statutes, section 116J.571, for the
redevelopment program. This is a onetime
appropriation and is available until spent.
(h) $1,900,000 the first year is from the
general fund for a onetime grant to the
Minnesota Film and TV Board for the film
production jobs program under Minnesota
Statutes, section 116U.26. This appropriation
is available until expended.
(i) $375,000 each year is from the general
fund for a grant to Enterprise Minnesota, Inc.,
for the small business growth acceleration
program under Minnesota Statutes, section
116O.115. This is a onetime appropriation.
(j) $200,000 each year is from the general
fund for a grant to develop and implement
a southern and southwestern Minnesota
initiative foundation collaborative pilot
project. Funds available under this paragraph
must be used to support and develop
entrepreneurs in diverse populations in
southern and southwestern Minnesota. This
is a onetime appropriation and is available
until expended.
(k) $100,000 each year is from the general
fund for the Center for Rural Policy
and Development. This is a onetime
appropriation.

Subd. 3.Workforce Development

14,726,000

14,108,000

	Appropriations by Fund
	General	5,134,000	4,516,000
	Workforce Development	9,592,000	9,592,000

(a) $1,039,000 each year from the general
fund and $2,244,000 each year from the
workforce development fund are for the adult
workforce development competitive grant
program. Of this amount, up to five percent
is for administration and monitoring of the
adult workforce development competitive
grant program. All grant awards shall be
for two consecutive years. Grants shall be
awarded in the first year.
(b) $3,500,000 each year is from the
workforce development fund for the
Minnesota youth program under Minnesota
Statutes, sections 116L.56 and 116L.561.
(c) $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota
Statutes, sections 116L.361 to 116L.366.
(d) $570,000 each year is from the general
fund and $2,848,000 each year is from the
workforce development fund for the youth
workforce development competitive grant
program. Of this amount, up to five percent
is for administration and monitoring of the
youth workforce development competitive
grant program. All grant awards shall be
for two consecutive years. Grants shall be
awarded in the first year.
(e) $2,500,000 each year is from the
general fund for a grant to the Minnesota
FastTRAC program. Up to ten percent
of this appropriation may be used to
provide leadership, oversight, and technical
assistance services. The base funding for this
program shall be $2,225,000 each year in the
fiscal year 2016-2017 biennium.
(f) $507,000 the first year and $407,000 the
second year are from the general fund for a
grant to the Minnesota High Tech Association
to support SciTechsperience, a program that
supports science, technology, engineering,
and math (STEM) internship opportunities
for two- and four-year college and university
students in their field of study. The internship
opportunities must match students with
paid internships within STEM disciplines
at small, for-profit companies located in the
seven-county metropolitan area, with fewer
than 150 total employees, or at small or
medium, for-profit companies located outside
of the seven-county metropolitan area, with
fewer than 250 total employees. At least 125
students must be matched in the first year
and at least 175 students must be matched in
the second year. Selected hiring companies
shall receive from the grant 50 percent of the
wages paid to the intern, capped at $2,500
per intern. Of this appropriation, at least 50
percent of the student interns must be women
or other underserved populations. This is a
onetime appropriation and is available until
expended.
(g) $450,000 the first year is from the general
fund for the foreign-trained health care
professionals grant program modeled after
the pilot program conducted under Laws
2006, chapter 282, article 11, section 2,
subdivision 12, to encourage state licensure
of foreign-trained health care professionals,
including: physicians, with preference given
to primary care physicians who commit
to practicing for at least five years after
licensure in underserved areas of the state;
nurses; dentists; pharmacists; mental health
professionals; and other allied health care
professionals. The commissioner must
collaborate with health-related licensing
boards and Minnesota workforce centers to
award grants to foreign-trained health care
professionals sufficient to cover the actual
costs of taking a course to prepare health
care professionals for required licensing
examinations and the fee for the state
licensing examinations. When awarding
grants, the commissioner must consider the
following factors:
(1) whether the recipient's training involves
a medical specialty that is in high demand in
one or more communities in the state;
(2) whether the recipient commits to
practicing in a designated rural area or an
underserved urban community, as defined in
Minnesota Statutes, section 144.1501;
(3) whether the recipient's language skills
provide an opportunity for needed health care
access for underserved Minnesotans; and
(4) any additional criteria established
by the commissioner. This is a onetime
appropriation and is available until expended.
(h) $68,000 the first year from the general
fund is for a grant to Olmsted County for
employment supports and independent
living services to county residents diagnosed
with high-functioning autism, Asperger's
syndrome, nonverbal learning disorders,
and pervasive development disorder, not
otherwise specified, and for education,
outreach, and support services to area
employers to encourage the hiring and
promotion of workers with high-functioning
autism, Asperger's syndrome, nonverbal
learning disorders, and pervasive
development disorder, not otherwise
specified. This is a onetime appropriation
and is available until expended.

Subd. 4.General Support Services

1,509,000

1,604,000

(a) $150,000 each year is from the general
fund for the cost-of-living study required
under Minnesota Statutes, section 116J.013.
(b) $250,000 each year is from the general
fund for the publication, dissemination,
and use of labor market information under
Minnesota Statutes, section 116J.4011.

Subd. 5.Minnesota Trade Office

2,322,000

2,292,000

(a) $330,000 in fiscal year 2014 and $300,000
in fiscal year 2015 are for the STEP grants
in Minnesota Statutes, section 116J.979. Of
the fiscal year 2014 appropriation, $30,000
is for establishing trade and export relations
between the state of Minnesota and east
African nations.
(b) $180,000 in fiscal year 2014 and
$180,000 in fiscal year 2015 are for the Invest
Minnesota marketing initiative in Minnesota
Statutes, section 116J.9801. Notwithstanding
any other law, this provision does not expire.
(c) $270,000 each year is from the general
fund for the expansion of Minnesota Trade
Offices under Minnesota Statutes, section
116J.978.
(d) $50,000 each year is from the general
fund for the trade policy advisory group
under Minnesota Statutes, section 116J.9661.
(e) The commissioner of employment and
economic development, in consultation
with the commissioner of agriculture, shall
identify and increase export opportunities for
Minnesota agricultural products.

Subd. 6.Vocational Rehabilitation

26,716,000

26,716,000

	Appropriations by Fund
	General	19,861,000	19,861,000
	Workforce Development	6,855,000	6,855,000

(a) $10,800,000 each year is from the general
fund for the state's vocational rehabilitation
program under Minnesota Statutes, chapter
268A.
(b) $2,261,000 each year is from the general
fund for grants to centers for independent
living under Minnesota Statutes, section
268A.11.
(c) $5,245,000 each year from the general
fund and $6,830,000 each year from the
workforce development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15.
(d) $1,555,000 each year is from the general
fund for grants to programs that provide
employment support services to persons with
mental illness under Minnesota Statutes,
sections 268A.13 and 268A.14.
(e) $25,000 each year is from the workforce
development fund for grants to programs
that provide employment support services to
persons with mental illness under Minnesota
Statutes, sections 268A.13 and 268A.14.
At least 50 percent of the funding must be
used for projects that use the evidence-based
practice of individual placement and
supports. Grants may be used for special
projects for young people with mental
illness transitioning from school to work or
experiencing a first psychotic episode.

Subd. 7.Services for the Blind

5,925,000

5,925,000

Subd. 8.Competitive grant limitations.

An organization that receives a direct
appropriation under this section is not eligible
to participate in competitive grant programs
under this section during the fiscal years in
which the direct appropriations are received.

Sec. 4. DEPARTMENT OF LABOR AND INDUSTRY

Subdivision 1.Total Appropriation

$

23,859,000

$

22,948,000

	Appropriations by Fund
		2014	2015
	General	1,959,000	1,048,000
	Workers' Compensation	20,871,000	20,871,000
	Workforce Development	1,029,000	1,029,000

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

Subd. 2.Workers' Compensation

10,678,000

10,678,000

This appropriation is from the workers'
compensation fund.
$200,000 each year is for grants to the
Vinland Center for rehabilitation services.
Grants shall be distributed as the department
refers injured workers to the Vinland Center
for rehabilitation services.

Subd. 3.Labor Standards and Apprenticeship

2,988,000

2,077,000

	Appropriations by Fund
	General	1,959,000	1,048,000
	Workforce Development	1,029,000	1,029,000

(a) $816,000 each year is from the
general fund for the labor standards and
apprenticeship program.
(b) $150,000 each year is from the general
fund for a child labor initiative for expanding
education and outreach to high schools and
targeted industries to ensure minors entering
the workforce are safe.
(c) $879,000 each year is appropriated from
the workforce development fund for the
apprenticeship program under Minnesota
Statutes, chapter 178, and includes $100,000
for labor education and advancement
program grants and to expand and promote
registered apprenticeship training in
nonconstruction trade programs.
(d) $150,000 each year is appropriated
from the workforce development fund for
prevailing wage enforcement.
(e) $70,000 in the second year is from
the general fund for implementing and
administering a minimum wage inflation
adjustment. This appropriation is available
only if a law is enacted in 2013 that includes
an automatic inflation adjustment to the state
minimum wage. The availability of this
appropriation is effective in the same fiscal
year that the inflation adjustment is first
effective.
(f) $987,000 in fiscal year 2014 is
appropriated from the general fund to the
commissioner of labor and industry for
the purposes of the job-based education
and apprenticeship program (JEAP) for
manufacturing industries under article 2.
This appropriation is available until spent.
Of this appropriation:
(1) $330,000 is for the commissioner of labor
and industry to implement JEAP; and
(2) $657,000 is for transfer to the Board of
Trustees of the Minnesota State Colleges
and Universities for grants to administer the
JEAP related instruction component, to be
dispersed as follows:
(i) $187,000 is for Alexandria Technical and
Community College's Customized Training
Center;
(ii) $380,000 is for Century College;
(iii) $45,000 is for Hennepin Technical
College; and
(iv) $45,000 is for Central Lakes College.

Subd. 4.Workplace Safety

4,154,000

4,154,000

This appropriation is from the workers'
compensation fund.

Subd. 5.General Support

6,039,000

6,039,000

This appropriation is from the workers'
compensation fund.

Sec. 5. BUREAU OF MEDIATION SERVICES

$

2,140,000

$

2,056,000

(a) $68,000 each year is for grants to area
labor management committees. Grants may
be awarded for a 12-month period beginning
July 1 each year. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available for the second year.
(b) $100,000 in fiscal year 2014 is
appropriated from the general fund to the
Bureau of Mediation Services for transfer
to the Office of Enterprise Technology to
develop a new business management system
for case and document management. This is
a onetime appropriation and is available for
spending until June 30, 2015. Any ongoing
information technology support or costs for
this application will be incorporated into the
service level agreement and will be paid to
the Office of Enterprise Technology by the
Bureau of Mediation Services under the rates
and mechanism specified in that agreement.
(c) $256,000 each year is from the general
fund for the Office of Collaboration and
Dispute Resolution under Minnesota
Statutes, section 179.90. Of this amount,
$160,000 each year is for grants under
Minnesota Statutes, section 179.91, and
$96,000 each year is for intergovernmental
and public policy collaboration and operation
of the office.
(d) The bureau's general fund base
is $2,085,000 in fiscal year 2016 and
$2,089,000 in fiscal year 2017.

Sec. 6. BOARD OF ACCOUNTANCY

$

708,000

$

624,000

Sec. 7. BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN

$

778,000

$

783,000

Sec. 8. BOARD OF COSMETOLOGIST EXAMINERS

$

1,354,000

$

1,361,000

Sec. 9. BOARD OF BARBER EXAMINERS

$

319,000

$

321,000

Sec. 10. WORKERS' COMPENSATION COURT OF APPEALS

$

1,913,000

$

1,703,000

This appropriation is from the workers'
compensation fund.
Of this appropriation, $210,000 in the first
year is onetime and is available for spending
until June 30, 2015. $110,000 in fiscal
year 2014 is for a onetime transfer to the
Office of Enterprise Technology to develop
a paperless case management system and
to ensure that services and hardware are
accessible and compatible with systems with
which the Workers' Compensation Court
of Appeals must interact. Any ongoing
information technology support or costs for
this application will be incorporated into the
service level agreement and will be paid to
the Office of Enterprise Technology by the
Workers' Compensation Court of Appeals
under the rates and mechanism specified in
that agreement.

    Sec. 11. CANCELLATION.
Of the appropriation to the commissioner of the department of employment and
economic development for the Minnesota Investment Fund in Laws 2012, First Special
Session chapter 1, article 1, section 5, $7,000,000 is canceled to the general fund.

ARTICLE 2

LABOR AND INDUSTRY

    Section 1. Minnesota Statutes 2012, section 116J.70, subdivision 2a, is amended to read:
    Subd. 2a. License; exceptions. "Business license" or "license" does not include
the following:
(1) any occupational license or registration issued by a licensing board listed in
section 214.01 or any occupational registration issued by the commissioner of health
pursuant to section 214.13;
(2) any license issued by a county, home rule charter city, statutory city, township, or
other political subdivision;
(3) any license required to practice the following occupation regulated by the
following sections:
(i) abstracters regulated pursuant to chapter 386;
(ii) accountants regulated pursuant to chapter 326A;
(iii) adjusters regulated pursuant to chapter 72B;
(iv) architects regulated pursuant to chapter 326;
(v) assessors regulated pursuant to chapter 270;
(vi) athletic trainers regulated pursuant to chapter 148;
(vii) attorneys regulated pursuant to chapter 481;
(viii) auctioneers regulated pursuant to chapter 330;
(ix) barbers and cosmetologists regulated pursuant to chapter 154;
(x) boiler operators regulated pursuant to chapter 183 326B;
(xi) chiropractors regulated pursuant to chapter 148;
(xii) collection agencies regulated pursuant to chapter 332;
(xiii) dentists, registered dental assistants, and dental hygienists regulated pursuant
to chapter 150A;
(xiv) detectives regulated pursuant to chapter 326;
(xv) electricians regulated pursuant to chapter 326 326B;
(xvi) mortuary science practitioners regulated pursuant to chapter 149A;
(xvii) engineers regulated pursuant to chapter 326;
(xviii) insurance brokers and salespersons regulated pursuant to chapter 60A;
(xix) certified interior designers regulated pursuant to chapter 326;
(xx) midwives regulated pursuant to chapter 147D;
(xxi) nursing home administrators regulated pursuant to chapter 144A;
(xxii) optometrists regulated pursuant to chapter 148;
(xxiii) osteopathic physicians regulated pursuant to chapter 147;
(xxiv) pharmacists regulated pursuant to chapter 151;
(xxv) physical therapists regulated pursuant to chapter 148;
(xxvi) physician assistants regulated pursuant to chapter 147A;
(xxvii) physicians and surgeons regulated pursuant to chapter 147;
(xxviii) plumbers regulated pursuant to chapter 326 326B;
(xxix) podiatrists regulated pursuant to chapter 153;
(xxx) practical nurses regulated pursuant to chapter 148;
(xxxi) professional fund-raisers regulated pursuant to chapter 309;
(xxxii) psychologists regulated pursuant to chapter 148;
(xxxiii) real estate brokers, salespersons, and others regulated pursuant to chapters
82 and 83;
(xxxiv) registered nurses regulated pursuant to chapter 148;
(xxxv) securities brokers, dealers, agents, and investment advisers regulated
pursuant to chapter 80A;
(xxxvi) steamfitters regulated pursuant to chapter 326 326B;
(xxxvii) teachers and supervisory and support personnel regulated pursuant to
chapter 125;
(xxxviii) veterinarians regulated pursuant to chapter 156;
(xxxix) water conditioning contractors and installers regulated pursuant to chapter
326 326B;
(xl) water well contractors regulated pursuant to chapter 103I;
(xli) water and waste treatment operators regulated pursuant to chapter 115;
(xlii) motor carriers regulated pursuant to chapter 221;
(xliii) professional firms regulated under chapter 319B;
(xliv) real estate appraisers regulated pursuant to chapter 82B;
(xlv) residential building contractors, residential remodelers, residential roofers,
manufactured home installers, and specialty contractors regulated pursuant to chapter
326 326B;
(xlvi) licensed professional counselors regulated pursuant to chapter 148B;
(4) any driver's license required pursuant to chapter 171;
(5) any aircraft license required pursuant to chapter 360;
(6) any watercraft license required pursuant to chapter 86B;
(7) any license, permit, registration, certification, or other approval pertaining to a
regulatory or management program related to the protection, conservation, or use of or
interference with the resources of land, air, or water, which is required to be obtained
from a state agency or instrumentality; and
(8) any pollution control rule or standard established by the Pollution Control
Agency or any health rule or standard established by the commissioner of health or any
licensing rule or standard established by the commissioner of human services.

    Sec. 2. Minnesota Statutes 2012, section 177.27, subdivision 4, is amended to read:
    Subd. 4. Compliance orders. The commissioner may issue an order requiring
an employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031,
181.032 , 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, 181.275, subdivision
2a , 181.722, and 181.79, or with any rule promulgated under section 177.28. The
commissioner shall issue an order requiring an employer to comply with sections 177.41
to 177.435 if the violation is repeated. For purposes of this subdivision only, a violation
is repeated if at any time during the two years that preceded the date of violation, the
commissioner issued an order to the employer for violation of sections 177.41 to 177.435
and the order is final or the commissioner and the employer have entered into a settlement
agreement that required the employer to pay back wages that were required by sections
177.41 to 177.435. The department shall serve the order upon the employer or the
employer's authorized representative in person or by certified mail at the employer's place
of business. An employer who wishes to contest the order must file written notice of
objection to the order with the commissioner within 15 calendar days after being served
with the order. A contested case proceeding must then be held in accordance with sections
14.57 to 14.69. If, within 15 calendar days after being served with the order, the employer
fails to file a written notice of objection with the commissioner, the order becomes a
final order of the commissioner.

    Sec. 3. Minnesota Statutes 2012, section 326.02, subdivision 5, is amended to read:
    Subd. 5. Limitation. The provisions of sections 326.02 to 326.15 shall not apply
to the preparation of plans and specifications for the erection, enlargement, or alteration
of any building or other structure by any person, for that person's exclusive occupancy
or use, unless such occupancy or use involves the public health or safety or the health
or safety of the employees of said person, or of the buildings listed in section 326.03,
subdivision 2 , nor to any detailed or shop plans required to be furnished by a contractor
to a registered engineer, landscape architect, architect, or certified interior designer,
nor to any standardized manufactured product, nor to any construction superintendent
supervising the execution of work designed by an architect, landscape architect, engineer,
or certified interior designer licensed or certified in accordance with section 326.03, nor
to the planning for and supervision of the construction and installation of work by an
electrical or elevator contractor or master plumber as defined in and licensed pursuant to
chapter 326B, where such work is within the scope of such licensed activity and not
within the practice of professional engineering, or architecture, or where the person does
not claim to be a certified interior designer as defined in subdivision 2, 3, or 4b.

    Sec. 4. Minnesota Statutes 2012, section 326B.081, subdivision 3, is amended to read:
    Subd. 3. Applicable law. "Applicable law" means the provisions of sections
181.723 , 325E.66, 327.31 to 327.36, and this chapter, and chapter 341, and all rules,
orders, stipulation agreements, settlements, compliance agreements, licenses, registrations,
certificates, and permits adopted, issued, or enforced by the department under sections
181.723, 325E.66, 327.31 to 327.36, or this chapter, or chapter 341.

    Sec. 5. Minnesota Statutes 2012, section 326B.082, subdivision 11, is amended to read:
    Subd. 11. Licensing orders; grounds; reapplication. (a) The commissioner may
deny an application for a permit, license, registration, or certificate if the applicant does
not meet or fails to maintain the minimum qualifications for holding the permit, license,
registration, or certificate, or has any unresolved violations or unpaid fees or monetary
penalties related to the activity for which the permit, license, registration, or certificate has
been applied for or was issued.
    (b) The commissioner may deny, suspend, limit, place conditions on, or revoke a
person's permit, license, registration, or certificate, or censure the person holding the
permit, license, registration, or certificate, if the commissioner finds that the person:
    (1) committed one or more violations of the applicable law;
    (2) submitted false or misleading information to the state in connection with
activities for which the permit, license, registration, or certificate was issued, or in
connection with the application for the permit, license, registration, or certificate;
    (3) allowed the alteration or use of the person's own permit, license, registration,
or certificate by another person;
    (4) within the previous five years, was convicted of a crime in connection with
activities for which the permit, license, registration, or certificate was issued;
    (5) violated: (i) a final administrative order issued under subdivision 7 or, (ii) a final
stop order issued under subdivision 10, or (iii) injunctive relief issued under subdivision 9,
or (iv) a consent order or final order of the commissioner;
    (6) failed to cooperate with a commissioner's request to give testimony, to produce
documents, things, apparatus, devices, equipment, or materials, or to access property
under subdivision 2;
    (7) retaliated in any manner against any employee or person who is questioned by,
cooperates with, or provides information to the commissioner or an employee or agent
authorized by the commissioner who seeks access to property or things under subdivision 2;
    (8) engaged in any fraudulent, deceptive, or dishonest act or practice; or
    (9) performed work in connection with the permit, license, registration, or
certificate or conducted the person's affairs in a manner that demonstrates incompetence,
untrustworthiness, or financial irresponsibility.
    (c) If the commissioner revokes or denies a person's permit, license, registration,
or certificate under paragraph (b), the person is prohibited from reapplying for the same
type of permit, license, registration, or certificate for at least two years after the effective
date of the revocation or denial. The commissioner may, as a condition of reapplication,
require the person to obtain a bond or comply with additional reasonable conditions the
commissioner considers necessary to protect the public.
    (d) If a permit, license, registration, or certificate expires, or is surrendered,
withdrawn, or terminated, or otherwise becomes ineffective, the commissioner may
institute a proceeding under this subdivision within two years after the permit, license,
registration, or certificate was last effective and enter a revocation or suspension order as
of the last date on which the permit, license, registration, or certificate was in effect.

    Sec. 6. Minnesota Statutes 2012, section 326B.093, subdivision 4, is amended to read:
    Subd. 4. Examination results. If the applicant receives a passing score on the
examination and meets all other requirements for licensure, the commissioner must
approve the application and notify the applicant of the approval within 60 days of the
date of the passing score. The applicant must, within 90 180 days after the notification
of approval, pay the license fee. Upon receipt of the license fee, the commissioner must
issue the license. If the applicant does not pay the license fee within 90 180 days after
the notification of approval, the commissioner will rescind the approval and must deny
the application. If the applicant does not receive a passing score on the examination,
the commissioner must deny the application. If the application is denied because of the
applicant's failure to receive a passing score on the examination, then the applicant cannot
submit a new application for the license until at least 30 days after the notification of denial.

    Sec. 7. Minnesota Statutes 2012, section 326B.101, is amended to read:
326B.101 POLICY AND PURPOSE.
The State Building Code governs the construction, reconstruction, alteration, and
repair, and use of buildings and other structures to which the code is applicable. The
commissioner shall administer and amend a state code of building construction which will
provide basic and uniform performance standards, establish reasonable safeguards for
health, safety, welfare, comfort, and security of the residents of this state and provide for
the use of modern methods, devices, materials, and techniques which will in part tend to
lower construction costs. The construction of buildings should be permitted at the least
possible cost consistent with recognized standards of health and safety.

    Sec. 8. Minnesota Statutes 2012, section 326B.103, subdivision 11, is amended to read:
    Subd. 11. Public building. "Public building" means a building and its grounds the
cost of which is paid for by the state or a state agency regardless of its cost, and a school
district building project or charter school building project the cost of which is $100,000
or more.

    Sec. 9. Minnesota Statutes 2012, section 326B.121, subdivision 1, is amended to read:
    Subdivision 1. Application. (a) The State Building Code is the standard that applies
statewide for the construction, reconstruction, alteration, and repair, and use of buildings
and other structures of the type governed by the code.
(b) The State Building Code supersedes the building code of any municipality.
(c) The State Building Code does not apply to agricultural buildings except:
(1) with respect to state inspections required or rulemaking authorized by sections
103F.141 ; 216C.19, subdivision 9; and 326B.36; and
(2) translucent panels or other skylights without raised curbs shall be supported to
have equivalent load-bearing capacity as the surrounding roof.

    Sec. 10. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 9. Direct supervision. "Direct supervision" means:
(1) an unlicensed individual is being directly supervised by an individual licensed
to perform the elevator work being supervised during the entire time the unlicensed
individual is performing elevator work;
(2) the licensed individual is physically present at the location where the unlicensed
individual is performing elevator work and immediately available to the unlicensed
individual at all times for assistance and direction;
(3) the licensed individual shall review the elevator work performed by the
unlicensed individual before the elevator work is operated; and
(4) the licensed individual is able to and does determine that all elevator work
performed by the unlicensed individual is performed in compliance with the elevator code.

    Sec. 11. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 10. Elevator contractor. "Elevator contractor" means a licensed contractor
whose responsible licensed individual is a master elevator constructor. An elevator
contractor license does not itself qualify its holder to perform or supervise elevator work
authorized by holding a personal license issued by the commissioner.

    Sec. 12. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 11. Limited elevator contractor. "Limited elevator contractor" means a
licensed contractor whose responsible licensed individual is a limited master elevator
constructor. A limited elevator contractor or its employees may only install, test, or alter
residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited
use or limited application elevator equipment, conveyors, and special purpose personnel
elevators.

    Sec. 13. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 11a. Limited elevator work. "Limited elevator work" means the installing,
maintaining, altering, repairing, testing, planning, or laying out of residential elevators,
platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited
application elevator equipment, conveyors, and special purpose personnel elevators
as covered by Minnesota Rules, chapters 1307 and 1315. Limited elevator work also
includes electrical wiring on the load side of the elevator equipment disconnect and the
decommissioning of elevator equipment to enable safe removal.

    Sec. 14. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 12. Elevator work. "Elevator work" means the installing, maintaining,
altering, repairing, testing, planning, or laying out of elevator apparatus or equipment as
covered by Minnesota Rules, chapters 1307 and 1315. Elevator work also includes the
disconnection of electrical wiring on the load side of the elevator equipment disconnect
and the decommissioning of elevator equipment to enable safe removal.

    Sec. 15. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 13. Master elevator constructor. "Master elevator constructor" means
an individual having the necessary qualifications, training, experience, and technical
knowledge to properly plan, lay out, supervise, and perform the installation, maintenance,
altering, testing, wiring, and repair of apparatus and equipment for elevators, including
electrical wiring on the load side of the elevator equipment disconnect and who is licensed
as a master elevator constructor by the commissioner.

    Sec. 16. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 14. Limited master elevator constructor. "Limited master elevator
constructor" means an individual having the necessary qualifications, training, experience,
and technical knowledge to properly plan, lay out, supervise, and perform the testing,
altering, installation, maintenance, and repair of wiring, apparatus, and equipment for
residential elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited
use or limited application elevator equipment, conveyors, and special purpose personnel
elevators, including wiring on the load side of the elevator equipment disconnect and who
is licensed as a limited master elevator constructor by the commissioner.

    Sec. 17. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 14a. Limited journeyman elevator constructor. "Limited journeyman
elevator constructor" means an individual having the necessary qualifications, training,
experience, and technical knowledge to install, maintain, alter, test, and repair apparatus
and equipment for residential elevators, platform lifts, stairway chairlifts, dumbwaiters,
material lifts, limited use or limited application elevator equipment, conveyors, and
special purpose personnel elevators, including electrical wiring on the load side of the
elevator equipment disconnect and who is licensed as a limited journeyman elevator
constructor by the commissioner.

    Sec. 18. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 15. Journeyman elevator constructor. "Journeyman elevator constructor"
means an individual having the necessary qualifications, training, experience, and
technical knowledge to install, maintain, alter, test, and repair apparatus and equipment for
elevators, including electrical wiring on the load side of the elevator equipment disconnect
and who is licensed as a journeyman elevator constructor by the commissioner.

    Sec. 19. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 16. Registered unlicensed elevator constructor. "Registered unlicensed
elevator constructor" means an individual who has registered with the department but is
not licensed by the commissioner to perform elevator work.

    Sec. 20. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 17. Residential dwelling. "Residential dwelling" is a single dwelling unit
that is contained in a one-family, two-family, or multifamily dwelling. A residential
dwelling also includes outdoor space at a one-family dwelling.

    Sec. 21. Minnesota Statutes 2012, section 326B.163, is amended by adding a
subdivision to read:
    Subd. 18. Responsible licensed individual. "Responsible licensed individual"
means an individual licensed as a master elevator constructor or limited master elevator
constructor who is identified as the responsible licensed individual on an elevator
contractor license application.

    Sec. 22. [326B.164] LICENSES.
    Subdivision 1. Master elevator constructor. (a) Except as otherwise provided by
law, no individual shall perform or supervise elevator work, unless:
(1) the individual is licensed by the commissioner as a master elevator constructor;
and
(2) the elevator work is for a licensed elevator contractor and the individual is an
employee, partner, or officer of, or is the licensed contractor.
(b) An applicant for a master elevator constructor license shall:
(1) have at least one year of experience, acceptable to the commissioner, as a
licensed journeyman elevator constructor; or
(2) have at least six years' experience, acceptable to the commissioner, in planning
for, laying out, supervising, and installing apparatus, equipment, and wiring for elevators.
(c) Individuals licensed as master elevator constructors under section 326B.33,
subdivision 11, as of December 31, 2013, shall not be required to pass an examination
under this section but, effective January 1, 2014, shall be subject to the requirements of
sections 326B.163 to 326B.191.
(d) Except for the initial license term, as a condition of license renewal, master
elevator constructors must attain a minimum of 16 hours of continuing education credit
approved by the commissioner every renewal period. Not less than 12 hours shall be based
on the Minnesota Elevator Code or elevator technology, and not less than four hours shall
be based on the National Electrical Code.
    Subd. 2. Limited master elevator constructor. (a) Except as otherwise provided
by law, no individual shall perform or supervise elevator work on residential elevators,
platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use or limited
application elevator equipment, conveyors, and special purpose personnel elevators, unless:
(1) the individual is licensed by the commissioner as a limited master elevator
constructor; and
(2) the elevator work is for a limited elevator contractor and the individual is an
employee, partner, or officer of, or is the licensed contractor.
(b) An applicant for a limited master elevator constructor license shall have at
least three years of experience, acceptable to the commissioner, in installing apparatus,
equipment, and wiring for elevators.
(c) Except for the initial license term, as a condition of license renewal, limited
master elevator constructors must attain a minimum of eight hours of continuing education
credit approved by the commissioner every renewal period. Not less than six hours shall
be based on the Minnesota Elevator Code or elevator technology, and not less than two
hours on the National Electrical Code.
    Subd. 3. Journeyman elevator constructor. (a) Except as otherwise provided
by law, no individual shall perform and supervise elevator work except for planning or
laying out of elevator work, unless:
(1) the individual is licensed by the commissioner as a journeyman elevator
constructor; and
(2) the elevator work is for an elevator contractor, and the individual is an employee,
partner, or officer of the licensed elevator contractor.
(b) An applicant for a journeyman elevator constructor license shall have completed
a four-year elevator mechanics apprenticeship registered with the United States
Department of Labor or worked at least 9,000 hours in five consecutive years for a
licensed elevator contractor, acceptable to the commissioner, installing, maintaining,
modernizing, testing, wiring, and repairing elevators.
(c) Individuals licensed as journeyman elevator constructors under section 326B.33,
subdivision 8, as of December 31, 2013, shall not be required to pass an examination
under this section but, effective January 1, 2014, shall be subject to the requirements of
sections 326B.163 to 326B.191.
(d) As a condition of license renewal, journeyman elevator constructors must attain
a minimum of 16 hours of continuing education credit approved by the commissioner
every renewal period. Not less than 12 hours shall be based on the Minnesota Elevator
Code or elevator technology, and not less than four hours shall be based on the National
Electrical Code.
    Subd. 3a. Limited journeyman elevator constructor. (a) Except as otherwise
provided by law, no individual shall perform or supervise elevator work on residential
elevators, platform lifts, stairway chairlifts, dumbwaiters, material lifts, limited use
or limited application elevator equipment, conveyors, and special purpose personnel
elevators, except for planning or laying out of elevator work, unless:
(1) the individual is licensed by the commissioner as a limited journeyman elevator
constructor; and
(2) the elevator work is for a limited elevator contractor or an elevator contractor,
and the individual is an employee, partner, or officer of the licensed limited elevator
contractor or licensed elevator contractor.
(b) An applicant for a limited journeyman elevator constructor license shall have
at least two years of experience, acceptable to the commissioner, in installing apparatus,
equipment, and wiring for elevators.
(c) Except for the initial license term, as a condition of license renewal, limited
journeyman elevator constructors must attain a minimum of eight hours of continuing
education credit approved by the commissioner every renewal period. Not less than six
hours shall be based on the Minnesota Elevator Code or elevator technology, and not less
than two hours on the National Electrical Code.
    Subd. 4. Registered unlicensed elevator constructor. (a) An unlicensed individual
shall not perform elevator work, unless the individual has first registered with the
department as an unlicensed elevator constructor. Except as allowed by subdivision 12, a
registered unlicensed elevator constructor shall not perform elevator work unless the work
is performed under the direct supervision of an individual actually licensed to perform
such work. The licensed elevator constructor and the registered unlicensed elevator
constructor must be employed by the same employer. Unlicensed individuals shall not
supervise the performance of elevator work or make assignments of elevator work to
unlicensed individuals. Licensed elevator constructors shall provide direct supervision for
no more than two registered unlicensed elevator constructors.
(b) Notwithstanding any other provision of this section, no individual other than a
master elevator constructor or limited master elevator constructor shall plan or lay out
elevator wiring, apparatus, or equipment.
(c) Contractors employing registered unlicensed elevator constructors performing
elevator work shall maintain records establishing compliance with this subdivision that
shall identify all unlicensed individuals performing elevator work and shall permit the
department to examine and copy all such records.
(d) When a licensed elevator constructor supervises the elevator work of an
unlicensed individual, the licensed elevator constructor is responsible for ensuring that the
elevator work complies with this section and the Minnesota Elevator Code.
(e) A registered unlicensed elevator constructor with a minimum of one year
experience may perform the following maintenance tasks for elevator equipment without
being provided with direct supervision: oiling, cleaning, greasing, painting, relamping,
and replacing of escalator and moving walk comb teeth.
    Subd. 5. Registration of unlicensed individuals. (a) Unlicensed individuals
performing elevator work for a contractor shall register with the department in the manner
prescribed by the commissioner. Experience credit for elevator work performed in
Minnesota after January 1, 2009, by an applicant for a license identified in this section
shall not be granted where the applicant has not registered with the department or is
not licensed by the department.
(b) As a condition of renewal of registration, unlicensed individuals shall attain a
minimum of two hours of continuing education credit, approved by the commissioner,
every renewal period. The continuing education course shall be based on the Minnesota
Elevator Code or elevator technology.
(c) Individuals registered under section 326B.33, subdivision 13, whose registration
expires after July 31, 2013, shall be subject to the registration requirements of this
subdivision and the requirements of sections 326B.163 to 326B.191.
    Subd. 6. Contractor's license required. (a) No individual, other than an employee,
partner, or officer of a licensed contractor, as defined by section 326B.163, subdivision
10, shall perform or offer to perform elevator work with or without compensation, unless
the individual obtains a contractor's license. A contractor's license does not of itself
qualify its holder to perform or supervise the elevator work authorized by holding any
class of personal license.
(b) Companies licensed under section 326B.33, subdivision 14, as of July 31, 2013,
shall not be required to comply with this subdivision.
    Subd. 7. Bond required. As a condition of licensing, each contractor shall give
and maintain bond to the state in the sum of $25,000, conditioned upon the faithful and
lawful performance of all work contracted for or performed by the contractor within the
state of Minnesota, and such bond shall be for the benefit of persons injured or suffering
financial loss by reason of failure of such performance. The bond shall be filed with
the commissioner and shall be in lieu of all other license bonds to any other political
subdivision. The bond shall be written by a corporate surety licensed to do business
in the state of Minnesota.
    Subd. 8. Insurance required. Each elevator contractor shall have and maintain
in effect general liability insurance, which includes premises and operations insurance
and products and completed operations insurance, with limits of at least $100,000 per
occurrence, $300,000 aggregate limit for bodily injury, and property damage insurance
with limits of at least $50,000, or a policy with a single limit for bodily injury and property
damage of $300,000 per occurrence and $300,000 aggregate limits. The insurance shall be
written by an insurer licensed to do business in the state of Minnesota, and each contractor
shall maintain on file with the commissioner a certificate evidencing such insurance. In the
event of a policy cancellation, the insurer shall send written notice to the commissioner at
the same time that a cancellation request is received from or a notice is sent to the insured.
    Subd. 9. Employment of responsible individual. (a) Each elevator contractor
must designate a responsible master elevator constructor or limited master elevator
constructor who shall be the responsible individual for the performance of all elevator
work in accordance with the requirements of sections 326B.163 to 326B.191, all rules
adopted under these sections, and all orders issued under section 326B.082. The classes of
work that a licensed contractor is authorized to perform shall be limited to the classes of
work that the responsible individual is allowed to perform.
(b) When a contractor's license is held by an individual, sole proprietorship,
partnership, limited liability company, or corporation, and the individual, proprietor, one
of the partners, one of the members, or an officer of the corporation, respectively, is not the
responsible master elevator constructor or limited master elevator constructor, all elevator
permits shall be submitted by the responsible master elevator constructor or limited
master elevator constructor. If the contractor is an individual or a sole proprietorship,
the responsible master or limited master elevator constructor must be the individual,
proprietor, or managing employee. If the contractor is a partnership, the responsible
master or limited master elevator constructor must be a general partner or managing
employee. If the licensed contractor is a limited liability company, the responsible master
or limited master elevator constructor must be a chief manager or managing employee.
If the contractor is a corporation, the responsible master or limited master elevator
constructor must be an officer or managing employee. If the responsible master or limited
master elevator constructor is a managing employee, the responsible individual must be
actively engaged in performing elevator work on behalf of the contractor and cannot be
employed in any capacity performing elevator work for any other elevator contractor or
employer. An individual may be the responsible individual for only one contractor.
(c) All applications and renewals for contractor licenses shall include a verified
statement that the applicant and responsible individual are in compliance with this
subdivision.
    Subd. 10. Examination. In addition to the other requirements described in this
section and sections 326B.091 to 326B.098, as a precondition to issuance of a personal
license, each applicant must pass a written or oral examination developed and administered
by the commissioner to ensure the competence of each applicant for license. An oral
examination shall be administered only to an applicant who furnishes a written statement
from a certified teacher or other professional, trained in the area of reading disabilities,
stating that the applicant has a specific reading disability that would prevent the applicant
from performing satisfactorily on a written test. The oral examination shall be structured
so that an applicant who passes the examination will not impair the applicant's own safety
or that of others while acting as a licensed individual.
    Subd. 11. License, registration, and renewal fees; expiration. (a) Unless revoked
or suspended under this chapter, all licenses issued or renewed under this section expire on
the following schedule:
(1) master licenses expire March 1 of each odd-numbered year after issuance or
renewal;
(2) elevator contractor licenses expire March 1 of each even-numbered year after
issuance or renewal;
(3) journeyman elevator constructor licenses expire two years from the date of
original issuance and every two years thereafter; and
(4) registrations of unlicensed individuals expire one year from the date of original
issuance and every year thereafter.
(b) For purposes of calculating license fees and renewal license fees required under
section 326B.092:
(1) the registration of an unlicensed individual under subdivision 5 shall be
considered an entry-level license;
(2) the journeyman elevator constructor shall be considered a journeyman license;
(3) the master elevator constructor and limited master elevator constructor licenses
shall be considered master licenses; and
(4) an elevator contractor license shall be considered a business license.
    Subd. 12. Exemption from licensing. Employees of a licensed elevator contractor
or licensed limited elevator contractor are not required to hold or obtain a license
under this section or be provided with direct supervision by a licensed master elevator
constructor, licensed limited master elevator constructor, licensed elevator constructor,
or licensed limited elevator constructor to install, maintain, or repair platform lifts and
stairway chairlifts. Unlicensed employees performing elevator work under this exemption
must comply with subdivision 5. This exemption does not include the installation,
maintenance, repair, or replacement of electrical wiring for elevator equipment.
    Subd. 13. Reciprocity. (a) The commissioner may enter into reciprocity agreements
for personal licenses with another state and issue a personal license without requiring the
applicant to pass an examination provided the applicant:
(1) submits an application under this section;
(2) pays the application and examination fee and license fee required under section
326B.092; and
(3) holds a valid comparable license in the state participating in the agreement.
(b) Reciprocity agreements are subject to the following:
(1) the parties to the agreement must administer a statewide licensing program that
includes examination and qualifying experience or training comparable to Minnesota's;
(2) the experience and training requirements under which an individual applicant
qualified for examination in the qualifying state must be deemed equal to or greater than
required for an applicant making application in Minnesota at the time the applicant
acquired the license in the qualifying state;
(3) the applicant must have acquired the license in the qualifying state through an
examination deemed equivalent to the same class of license examination in Minnesota.
A lesser class of license may be granted where the applicant has acquired a greater
class of license in the qualifying state, and the applicant otherwise meets the conditions
of this subdivision;
(4) at the time of application, the applicant must hold a valid license in the qualifying
state and have held the license continuously for at least one year before making application
in Minnesota;
(5) an applicant is not eligible for a license under this subdivision if the applicant has
failed the same or greater class of license examination in Minnesota, or if the applicant's
license of the same or greater class has been revoked or suspended; and
(6) an applicant who has failed to renew a personal license for two years or more
after its expiration is not eligible for a license under this subdivision.

    Sec. 23. Minnesota Statutes 2012, section 326B.184, subdivision 1, is amended to read:
    Subdivision 1. Permits. No person may construct, install, alter, repair, or remove
an elevator without first filing an application for a permit with the department or a
municipality authorized by subdivision 4 to inspect elevators. A permit issued by the
department is valid for work commenced within 12 months of application and completed
within two years of application. Where no work is commenced within 12 months of
application, an applicant may cancel the permit and request a refund of inspection fees.

    Sec. 24. Minnesota Statutes 2012, section 326B.184, is amended by adding a
subdivision to read:
    Subd. 1a. Department permit and inspection fees. (a) The department permit and
inspection fees to construct, install, alter, repair, or remove an elevator are as follows:
(1) the permit fee is $100;
(2) the inspection fee is 0.015 of the total cost of the permitted work for labor and
materials, including related electrical and mechanical equipment. The inspection fee
covers two inspections. The inspection fee for additional inspections is $80 per hour;
(3) when inspections scheduled by the permit submitter are not able to be completed
because the work is not complete, a fee equal to two hours at the hourly rate of $80 must
be paid by the permit submitter; and
(4) when the owner or permit holder requests inspections be performed outside of
normal work hours or on weekends or holidays, an hourly rate of $120 in addition to
the inspection fee must be paid.
(b) The department fees for inspection of existing elevators when requested by the
elevator owner or as a result of an accident resulting in personal injury are at an hourly rate
of $80 during normal work hours or $120 outside of normal work hours or on weekends or
holidays, with a one-hour minimum.
EFFECTIVE DATE.This section is effective January 1, 2014.

    Sec. 25. Minnesota Statutes 2012, section 326B.184, subdivision 2, is amended to read:
    Subd. 2. Operating permits and fees; periodic inspections. (a) No person may
operate an elevator without first obtaining an annual operating permit from the department
or a municipality authorized by subdivision 4 to issue annual operating permits. A $100
annual operating permit fee must be paid to the department for each annual operating
permit issued by the department, except that the original annual operating permit must
be included in the permit fee for the initial installation of the elevator. Annual operating
permits must be issued at 12-month intervals from the date of the initial annual operating
permit. For each subsequent year, an owner must be granted an annual operating permit
for the elevator upon the owner's or owner's agent's submission of a form prescribed by
the commissioner and payment of the $100 fee. Each form must include the location of
the elevator, the results of any periodic test required by the code, and any other criteria
established by rule. An annual operating permit may be revoked by the commissioner upon
an audit of the periodic testing results submitted with the application or a failure to comply
with elevator code requirements, inspections, or any other law related to elevators. Except
for an initial operating permit fee, hand-powered manlifts and electric endless belt manlifts,
and vertical reciprocating conveyors are not subject to a subsequent operating permit fee.
(b) All elevators are subject to periodic inspections by the department or a
municipality authorized by subdivision 4 to perform periodic inspections, except that
hand-powered manlifts and electric endless belt manlifts are exempt from periodic
inspections. Periodic inspections by the department shall be performed at the following
intervals:
(1) a special purpose personnel elevator is subject to inspection not more than once
every five years;
(2) an elevator located within a house of worship that does not have attached school
facilities is subject to inspection not more than once every three years; and
(3) all other elevators are subject to inspection not more than once each year.

    Sec. 26. Minnesota Statutes 2012, section 326B.187, is amended to read:
326B.187 RULES.
    The commissioner may adopt rules for the following purposes:
    (1) to establish minimum qualifications for elevator inspectors that must include
possession of a current elevator constructor electrician's license issued by the department
and proof of successful completion of the national elevator industry education program
examination or equivalent experience;
    (2) to establish minimum qualifications for limited elevator inspectors;
    (3) to establish criteria for the qualifications of elevator contractors;
    (4) to establish elevator standards under sections 326B.106, subdivisions 1 and 3,
and 326B.13;
    (5) to establish procedures for appeals of decisions of the commissioner under
chapter 14 and procedures allowing the commissioner, before issuing a decision, to seek
advice from the elevator trade, building owners or managers, and others knowledgeable in
the installation, construction, and repair of elevators; and
    (6) to establish requirements for the registration of all elevators.

    Sec. 27. Minnesota Statutes 2012, section 326B.31, is amended by adding a
subdivision to read:
    Subd. 26a. Request for inspection. "Request for inspection" means the application
for and issuance of a permit for an electrical installation that is required to be inspected
under section 326B.36.

    Sec. 28. Minnesota Statutes 2012, section 326B.33, subdivision 19, is amended to read:
    Subd. 19. License, registration, and renewal fees; expiration. (a) Unless
revoked or suspended under this chapter, all licenses issued or renewed under this section
expire on the date specified in this subdivision. Master licenses expire March 1 of each
odd-numbered year after issuance or renewal. Electrical contractor licenses expire March
1 of each even-numbered year after issuance or renewal. Technology system contractor
and satellite system contractor licenses expire August 1 of each even-numbered year after
issuance or renewal. All other personal licenses expire two years from the date of original
issuance and every two years thereafter. Registrations of unlicensed individuals expire
one year from the date of original issuance and every year thereafter.
(b) For purposes of calculating license fees and renewal license fees required under
section 326B.092:
(1) the registration of an unlicensed individual under subdivision 12 shall be
considered an entry level license;
(2) the following licenses shall be considered journeyman licenses: Class A
journeyman electrician, Class B journeyman electrician, Class A installer, Class B
installer, elevator constructor, lineman, maintenance electrician, satellite system installer,
and power limited technician;
(3) the following licenses shall be considered master licenses: Class A master
electrician, and Class B master electrician, and master elevator constructor; and
(4) the following licenses shall be considered business licenses: Class A electrical
contractor, Class B electrical contractor, elevator contractor, satellite system contractor,
and technology systems contractor.
(c) For each filing of a certificate of responsible person by an employer, the fee is
$100.

    Sec. 29. Minnesota Statutes 2012, section 326B.33, subdivision 21, is amended to read:
    Subd. 21. Exemptions from licensing. (a) An individual who is a maintenance
electrician is not required to hold or obtain a license under sections 326B.31 to 326B.399 if:
    (1) the individual is engaged in the maintenance and repair of electrical equipment,
apparatus, and facilities that are owned or leased by the individual's employer and that are
located within the limits of property operated, maintained, and either owned or leased by
the individual's employer;
    (2) the individual is supervised by:
    (i) the responsible master electrician for a contractor who has contracted with the
individual's employer to provide services for which a contractor's license is required; or
    (ii) a licensed master electrician, a licensed maintenance electrician, an electrical
engineer, or, if the maintenance and repair work is limited to technology circuits or
systems work, a licensed power limited technician; and
    (3) the individual's employer has on file with the commissioner a current certificate
of responsible person, signed by the responsible master electrician of the contractor, the
licensed master electrician, the licensed maintenance electrician, the electrical engineer, or
the licensed power limited technician, and stating that the person signing the certificate
is responsible for ensuring that the maintenance and repair work performed by the
employer's employees complies with the Minnesota Electrical Act and the rules adopted
under that act. The employer must pay a filing fee to file a certificate of responsible person
with the commissioner. The certificate shall expire two years from the date of filing. In
order to maintain a current certificate of responsible person, the employer must resubmit a
certificate of responsible person, with a filing fee, no later than two years from the date
of the previous submittal.
    (b) Employees of a licensed electrical or technology systems contractor or other
employer where provided with supervision by a master electrician in accordance with
subdivision 1, or power limited technician in accordance with subdivision 7, paragraph
(a), clause (1), are not required to hold a license under sections 326B.31 to 326B.399
for the planning, laying out, installing, altering, and repairing of technology circuits or
systems except planning, laying out, or installing:
    (1) in other than residential dwellings, class 2 or class 3 remote control circuits that
control circuits or systems other than class 2 or class 3, except circuits that interconnect
these systems through communication, alarm, and security systems are exempted from
this paragraph;
    (2) class 2 or class 3 circuits in electrical cabinets, enclosures, or devices containing
physically unprotected circuits other than class 2 or class 3; or
    (3) technology circuits or systems in hazardous classified locations as covered by
chapter 5 of the National Electrical Code.
    (c) Companies and their employees that plan, lay out, install, alter, or repair class
2 and class 3 remote control wiring associated with plug or cord and plug connected
appliances other than security or fire alarm systems installed in a residential dwelling are
not required to hold a license under sections 326B.31 to 326B.399.
    (d) Heating, ventilating, air conditioning, and refrigeration contractors and their
employees are not required to hold or obtain a license under sections 326B.31 to 326B.399
when performing heating, ventilating, air conditioning, or refrigeration work as described
in section 326B.38.
    (e) Employees of any electrical, communications, or railway utility, cable
communications company as defined in section 238.02, or a telephone company as defined
under section 237.01 or its employees, or of any independent contractor performing work
on behalf of any such utility, cable communications company, or telephone company, shall
not be required to hold a license under sections 326B.31 to 326B.399:
    (1) while performing work on installations, materials, or equipment which are owned
or leased, and operated and maintained by such utility, cable communications company, or
telephone company in the exercise of its utility, antenna, or telephone function, and which
    (i) are used exclusively for the generation, transformation, distribution, transmission,
or metering of electric current, or the operation of railway signals, or the transmission
of intelligence and do not have as a principal function the consumption or use of electric
current or provided service by or for the benefit of any person other than such utility, cable
communications company, or telephone company, and
    (ii) are generally accessible only to employees of such utility, cable communications
company, or telephone company or persons acting under its control or direction, and
    (iii) are not on the load side of the service point or point of entrance for
communication systems;
    (2) while performing work on installations, materials, or equipment which are a part
of the street lighting operations of such utility; or
    (3) while installing or performing work on outdoor area lights which are directly
connected to a utility's distribution system and located upon the utility's distribution poles,
and which are generally accessible only to employees of such utility or persons acting
under its control or direction.
    (f) An owner shall not be required to hold or obtain a license under sections 326B.31
to 326B.399.
(g) Companies and their employees licensed under section 326B.164 shall not be
required to hold or obtain a license under sections 326B.31 to 326B.399.

    Sec. 30. Minnesota Statutes 2012, section 326B.36, subdivision 7, is amended to read:
    Subd. 7. Exemptions from inspections. Installations, materials, or equipment shall
not be subject to inspection under sections 326B.31 to 326B.399:
    (1) when owned or leased, operated and maintained by any employer whose
maintenance electricians are exempt from licensing under sections 326B.31 to 326B.399,
while performing electrical maintenance work only as defined by rule;
    (2) when owned or leased, and operated and maintained by any electrical,
communications, or railway utility, cable communications company as defined in section
238.02 , or telephone company as defined under section 237.01, in the exercise of its
utility, antenna, or telephone function; and
    (i) are used exclusively for the generations, transformation, distribution,
transmission, or metering of electric current, or the operation of railway signals, or the
transmission of intelligence, and do not have as a principal function the consumption or
use of electric current by or for the benefit of any person other than such utility, cable
communications company, or telephone company; and
    (ii) are generally accessible only to employees of such utility, cable communications
company, or telephone company or persons acting under its control or direction; and
    (iii) are not on the load side of the service point or point of entrance for
communication systems;
    (3) when used in the street lighting operations of an electrical utility;
    (4) when used as outdoor area lights which are owned and operated by an electrical
utility and which are connected directly to its distribution system and located upon the
utility's distribution poles, and which are generally accessible only to employees of such
utility or persons acting under its control or direction;
    (5) when the installation, material, and equipment are in facilities subject to the
jurisdiction of the federal Mine Safety and Health Act; or
    (6) when the installation, material, and equipment is part of an elevator installation
for which the elevator contractor, licensed under section 326B.33 326B.164, is required to
obtain a permit from the authority having jurisdiction as provided by section 326B.184,
and the inspection has been or will be performed by an elevator inspector certified and
licensed by the department. This exemption shall apply only to installations, material, and
equipment permitted or required to be connected on the load side of the disconnecting
means required for elevator equipment under National Electrical Code Article 620, and
elevator communications and alarm systems within the machine room, car, hoistway, or
elevator lobby.

    Sec. 31. Minnesota Statutes 2012, section 326B.37, is amended by adding a
subdivision to read:
    Subd. 15. Utility interconnected wind generation installations. (a) Fees
associated with utility interconnected generation installations consisting of one or more
generator sources interconnected with a utility power system and not supplying other
premises loads are calculated according to paragraph (b) or (c).
(b) The inspection fee is calculated according to subdivisions 2, 3, 4, and 6,
paragraphs (d), (f), (j), and (k). A fee must be included for the generators and utility
interconnect feeders, but not for a utility service.
(c) There is a plan review fee and an inspection fee for the entire electrical
installation. The plan review fee is based on the valuation of the electrical installation
related to one of the generator systems that is part of the overall installation, not to include
the supporting tower or other nonelectrical equipment or structures, calculated according
to section 326B.153, subdivision 2. The inspection fee is $80 for each individual tower,
including any voltage matching transformers located at the tower, and the fee for the
feeders interconnecting the individual towers to the utility power system is calculated
according to subdivisions 4 and 6, paragraph (k).

    Sec. 32. Minnesota Statutes 2012, section 326B.43, subdivision 2, is amended to read:
    Subd. 2. Agreement with municipality. The commissioner may enter into an
agreement with a municipality, in which the municipality agrees to perform plan and
specification reviews required to be performed by the commissioner under Minnesota
Rules, part 4715.3130, if:
    (a) the municipality has adopted:
    (1) the plumbing code;
    (2) an ordinance that requires plumbing plans and specifications to be submitted to,
reviewed, and approved by the municipality, except as provided in paragraph (n);
    (3) an ordinance that authorizes the municipality to perform inspections required by
the plumbing code; and
    (4) an ordinance that authorizes the municipality to enforce the plumbing code in its
entirety, except as provided in paragraph (p);
    (b) the municipality agrees to review plumbing plans and specifications for all
construction for which the plumbing code requires the review of plumbing plans and
specifications, except as provided in paragraph (n);
    (c) the municipality agrees that, when it reviews plumbing plans and specifications
under paragraph (b), the review will:
    (1) reflect the degree to which the plans and specifications affect the public health
and conform to the provisions of the plumbing code;
    (2) ensure that there is no physical connection between water supply systems that
are safe for domestic use and those that are unsafe for domestic use; and
    (3) ensure that there is no apparatus through which unsafe water may be discharged
or drawn into a safe water supply system;
    (d) the municipality agrees to perform all inspections required by the plumbing
code in connection with projects for which the municipality reviews plumbing plans and
specifications under paragraph (b);
    (e) the commissioner determines that the individuals who will conduct the inspections
and the plumbing plan and specification reviews for the municipality do not have any
conflict of interest in conducting the inspections and the plan and specification reviews;
    (f) individuals who will conduct the plumbing plan and specification reviews for
the municipality are:
    (1) licensed master plumbers;
    (2) licensed professional engineers; or
    (3) individuals who are working under the supervision of a licensed professional
engineer or licensed master plumber and who are licensed master or journeyman plumbers
or hold a postsecondary degree in engineering;
    (g) individuals who will conduct the plumbing plan and specification reviews for
the municipality have passed a competency assessment required by the commissioner to
assess the individual's competency at reviewing plumbing plans and specifications;
    (h) individuals who will conduct the plumbing inspections for the municipality
are licensed master or journeyman plumbers, or inspectors meeting the competency
requirements established in rules adopted under section 326B.135;
    (i) the municipality agrees to enforce in its entirety the plumbing code on all
projects, except as provided in paragraph (p);
    (j) the municipality agrees to keep official records of all documents received,
including plans, specifications, surveys, and plot plans, and of all plan reviews, permits
and certificates issued, reports of inspections, and notices issued in connection with
plumbing inspections and the review of plumbing plans and specifications;
    (k) the municipality agrees to maintain the records described in paragraph (j) in the
official records of the municipality for the period required for the retention of public
records under section 138.17, and shall make these records readily available for review at
the request of the commissioner;
    (l) the municipality and the commissioner agree that if at any time during the
agreement the municipality does not have in effect the plumbing code or any of ordinances
described in paragraph (a), or if the commissioner determines that the municipality is not
properly administering and enforcing the plumbing code or is otherwise not complying
with the agreement:
    (1) the commissioner may, effective 14 days after the municipality's receipt of
written notice, terminate the agreement;
    (2) the municipality may challenge the termination in a contested case before the
commissioner pursuant to the Administrative Procedure Act; and
    (3) while any challenge is pending under clause (2), the commissioner shall perform
plan and specification reviews within the municipality under Minnesota Rules, part
4715.3130;
    (m) the municipality and the commissioner agree that the municipality may terminate
the agreement with or without cause on 90 days' written notice to the commissioner;
    (n) the municipality and the commissioner agree that the municipality shall forward
to the state for review all plumbing plans and specifications for the following types of
projects within the municipality:
    (1) hospitals, nursing homes, supervised living facilities licensed for eight or
more individuals, and similar health-care-related facilities regulated by the Minnesota
Department of Health state-licensed facilities as defined in section 326B.103, subdivision
13;
    (2) buildings owned by the federal or state government public buildings as defined
in section 326B.103, subdivision 11; and
    (3) projects of a special nature for which department review is requested by either
the municipality or the state;
    (o) where the municipality forwards to the state for review plumbing plans and
specifications, as provided in paragraph (n), the municipality shall not collect any fee for
plan review, and the commissioner shall collect all applicable fees for plan review; and
    (p) no municipality shall revoke, suspend, or place restrictions on any plumbing
license issued by the state.

    Sec. 33. Minnesota Statutes 2012, section 326B.49, subdivision 2, is amended to read:
    Subd. 2. Fees for plan reviews and audits. Plumbing system plans and
specifications that are submitted to the commissioner for review shall be accompanied by
the appropriate plan examination fees. If the commissioner determines, upon review of
the plans, that inadequate fees were paid, the necessary additional fees shall be paid prior
to plan approval. The commissioner shall charge the following fees for plan reviews and
audits of plumbing installations for public, commercial, and industrial buildings:
    (1) systems with both water distribution and drain, waste, and vent systems and
having:
    (i) 25 or fewer drainage fixture units, $150;
    (ii) 26 to 50 drainage fixture units, $250;
    (iii) 51 to 150 drainage fixture units, $350;
    (iv) 151 to 249 drainage fixture units, $500;
    (v) 250 or more drainage fixture units, $3 per drainage fixture unit to a maximum
of $4,000; and
    (vi) interceptors, separators, or catch basins, $70 per interceptor, separator, or catch
basin design;
    (2) building sewer service only, $150;
    (3) building water service only, $150;
    (4) building water distribution system only, no drainage system, $5 per supply
fixture unit or $150, whichever is greater;
    (5) storm drainage system, a minimum fee of $150 or:
    (i) $50 per drain opening, up to a maximum of $500; and
    (ii) $70 per interceptor, separator, or catch basin design;
    (6) manufactured home park or campground, one to 25 sites, $300;
    (7) manufactured home park or campground, 26 to 50 sites, $350;
    (8) manufactured home park or campground, 51 to 125 sites, $400;
    (9) manufactured home park or campground, more than 125 sites, $500; and
    (10) accelerated review, double the regular fee, one-half to be refunded if no
response from the commissioner within 15 business days; and
    (11) (10) revision to previously reviewed or incomplete plans:
    (i) review of plans for which the commissioner has issued two or more requests for
additional information, per review, $100 or ten percent of the original fee, whichever
is greater;
    (ii) proposer-requested revision with no increase in project scope, $50 or ten percent
of original fee, whichever is greater; and
    (iii) proposer-requested revision with an increase in project scope, $50 plus the
difference between the original project fee and the revised project fee.
EFFECTIVE DATE.This section is effective January 1, 2014.

    Sec. 34. Minnesota Statutes 2012, section 326B.49, subdivision 3, is amended to read:
    Subd. 3. Inspection Permits; fees. The commissioner shall charge the following
fees for inspections under sections 326B.42 to 326B.49:

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

(a) Before commencement of a plumbing installation to be inspected by the
commissioner, the plumbing contractor or registered plumbing employer performing the
plumbing work must submit to the commissioner an application for a permit and the
permit and inspection fees in paragraphs (b) to (f).
(b) The permit fee is $100.
(c) The residential inspection fee is $50 for each inspection trip.
(d) The public, commercial, and industrial inspection fees are as follows:
(1) for systems with water distribution, drain, waste, and vent system connection:
(i) $25 for each fixture, permanently connected appliance, floor drain, or other
appurtenance;
    (ii) $25 for each water conditioning, water treatment, or water filtration system; and
(iii) $25 for each interceptor, separator, catch basin, or manhole;
(2) roof drains, $25 for each drain;
(3) building sewer service only, $100;
(4) building water service only, $100;
(5) building water distribution system only, no drainage system, $5 for each fixture
supplied;
(6) storm drainage system, a minimum fee of $25 for each drain opening, interceptor,
separator, or catch basin;
(7) manufactured home park or campground, $25 for each site;
(8) reinspection fee to verify corrections, regardless of the total fee submitted, $100
for each reinspection; and
(9) each $100 in fees paid covers one inspection trip.
(e) In addition to the fees in paragraph (c), the fee submitter must pay an hourly rate of
$80 during regular business hours, or $120 when inspections are requested to be performed
outside of normal work hours or on weekends and holidays, with a two-hour minimum
where the fee submitter requests inspections of installations as systems are being installed.
(f) The fee submitter must pay a fee equal to two hours at the hourly rate of $80
when inspections scheduled by the submitter are not able to be completed because the
work is not complete.

    Sec. 35. Minnesota Statutes 2012, section 326B.89, subdivision 1, is amended to read:
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them.
    (b) "Gross annual receipts" means the total amount derived from residential
contracting or residential remodeling activities, regardless of where the activities are
performed, and must not be reduced by costs of goods sold, expenses, losses, or any
other amount.
    (c) "Licensee" means a person licensed as a residential contractor or residential
remodeler.
    (d) "Residential real estate" means a new or existing building constructed for
habitation by one to four families, and includes detached garages.
    (e) "Fund" means the contractor recovery fund.
(f) "Owner" when used in connection with real property, means a person who has
any legal or equitable interest in real property and includes a condominium or townhome
association that owns common property located in a condominium building or townhome
building or an associated detached garage. Owner does not include any real estate
developer or any owner using, or intending to use, the property for a business purpose and
not as owner-occupied residential real estate.

    Sec. 36. Minnesota Statutes 2012, section 327B.04, subdivision 4, is amended to read:
    Subd. 4. License prerequisites. No application shall be granted nor license issued
until the applicant proves to the commissioner that:
    (a) the applicant has a permanent, established place of business at each licensed
location. An "established place of business" means a permanent enclosed building other
than a residence, or a commercial office space, either owned by the applicant or leased by
the applicant for a term of at least one year, located in an area where zoning regulations
allow commercial activity, and where the books, records and files necessary to conduct
the business are kept and maintained. The owner of a licensed manufactured home park
who resides in or adjacent to the park may use the residence as the established place of
business required by this subdivision, unless prohibited by local zoning ordinance.
    If a license is granted, the licensee may use unimproved lots and premises for sale,
storage, and display of manufactured homes, if the licensee first notifies the commissioner
in writing;
    (b) if the applicant desires to sell, solicit or advertise the sale of new manufactured
homes, it has a bona fide contract or franchise in effect with a manufacturer or distributor
of the new manufactured home it proposes to deal in;
    (c) the applicant has secured: (1) a surety bond in the amount of $20,000 for each
agency and each subagency location that bears the applicant's name and the name under
which the applicant will be licensed and do business in this state. Each bond is for the
protection of consumer customers, and must be executed by the applicant as principal and
issued by a surety company admitted to do business in this state. Each bond shall be
exclusively for the purpose of reimbursing consumer customers and shall be conditioned
upon the faithful compliance by the applicant with all of the laws and rules of this state
pertaining to the applicant's business as a dealer or manufacturer, including sections
325D.44 , 325F.67 and 325F.69, and upon the applicant's faithful performance of all its
legal obligations to consumer customers; and (2) a certificate of liability insurance in
the amount of $1,000,000 that provides aggregate coverage for the agency and each
subagency location. In the event of a policy cancellation, the insurer shall send written
notice to the commissioner at the same time that a cancellation request is received from
or a notice is sent to the insured;
    (d) the applicant has established a trust account as required by section 327B.08,
subdivision 3 , unless the applicant states in writing its intention to limit its business to
selling, offering for sale, soliciting or advertising the sale of new manufactured homes; and
    (e) the applicant has provided evidence of having had at least two years' prior
experience in the sale of manufactured homes, working for a licensed dealer. The
applicant does not have to satisfy the two-year prior experience requirement if:
(1) the applicant sells or brokers used manufactured homes as permitted under
section 327B.01, subdivision 7; or
    (2) the applicant:
    (i) has met all other licensing requirements;
    (ii) is the owner of a manufactured home park; and
    (iii) is selling new manufactured homes installed in the manufactured home park
that the applicant owns.

    Sec. 37. Minnesota Statutes 2012, section 341.21, subdivision 3a, is amended to read:
    Subd. 3a. Commissioner. "Commissioner" means the commissioner of labor
and industry or a duly designated representative of the commissioner who is either an
employee of the Department of Labor and Industry or a person working under contract
with the department.

    Sec. 38. Minnesota Statutes 2012, section 341.221, is amended to read:
341.221 ADVISORY COUNCIL.
(a) The commissioner must appoint a Combative Sports Advisory Council to advise
the commissioner on the administration of duties under this chapter.
(b) The council shall have nine members appointed by the commissioner. One
member must be a retired judge of the Minnesota District Court, Minnesota Court of
Appeals, Minnesota Supreme Court, the United States District Court for the District of
Minnesota, or the Eighth Circuit Court of Appeals. At least four members must have
knowledge of the boxing industry. At least four members must have knowledge of the
mixed martial arts industry. The commissioner shall make serious efforts to appoint
qualified women to serve on the council.
(c) Council members shall serve terms of four years with the terms ending on the
first Monday in January.
(d) The council shall annually elect from its membership a chair.
(e) The commissioner shall convene the first meeting of the council by July 1, 2012.
The council shall elect a chair at its first meeting. Thereafter, Meetings shall be convened
by the commissioner, or by the chair with the approval of the commissioner.
(f) For the first appointments to the council, the commissioner shall appoint the
members currently serving on the Combative Sports Commission established under
section 341.22, to the council. The commissioner shall designate two of the members to
serve until the first Monday in January 2013; two members to serve until the first Monday
in January 2014; two members to serve until the first Monday in January 2015; and three
members to serve until the first Monday in January 2016.
(g) Removal of members, filling of vacancies, and compensation of members shall
be as provided in section 15.059.

    Sec. 39. Minnesota Statutes 2012, section 341.27, is amended to read:
341.27 COMMISSIONER DUTIES.
    The commissioner shall:
    (1) issue, deny, renew, suspend, or revoke licenses;
    (2) make and maintain records of its acts and proceedings including the issuance,
denial, renewal, suspension, or revocation of licenses;
    (3) keep public records of the council open to inspection at all reasonable times;
    (4) develop rules to be implemented under this chapter;
    (5) conform to the rules adopted under this chapter;
    (6) develop policies and procedures for regulating boxing and mixed martial arts; and
    (7) immediately suspend an individual license for a medical condition, including but
not limited to a medical condition resulting from an injury sustained during a match, bout,
or contest that has been confirmed by the ringside physician. The medical suspension must
be lifted after the commissioner receives written information from a physician licensed in
the home state of the licensee indicating that the combatant may resume competition, and
any other information that the commissioner may by rule require. Medical suspensions
are not subject to section 214.10. 326B.082 or the contested case procedures provided
in sections 14.57 to 14.69; and
    (8) immediately suspend an individual combatant license for a mandatory rest period,
which must commence at the conclusion of every combative sports contest in which the
license holder competes and does not receive a medical suspension. A rest suspension
must automatically lift after seven calendar days from the date the combative sports
contest passed without notice or additional proceedings. Rest suspensions are not subject
to section 326B.082 or the contested case procedures provided in sections 14.57 to 14.69.

    Sec. 40. Minnesota Statutes 2012, section 341.29, is amended to read:
341.29 JURISDICTION OF COMMISSIONER.
    The commissioner shall:
    (1) have sole direction, supervision, regulation, control, and jurisdiction over all
combative sport contests that are held within this state unless a contest is exempt from the
application of this chapter under federal law;
    (2) have sole control, authority, and jurisdiction over all licenses required by this
chapter; and
    (3) grant a license to an applicant if, in the judgment of the commissioner, the
financial responsibility, experience, character, and general fitness of the applicant are
consistent with the public interest, convenience, or necessity and the best interests of
combative sports and conforms with this chapter and the commissioner's rules.; and
    (4) deny, suspend, or revoke a license using the enforcement provisions of section
326B.082.

    Sec. 41. Minnesota Statutes 2012, section 341.30, subdivision 4, is amended to read:
    Subd. 4. Prelicensure requirements. (a) Before the commissioner issues a license
to a promoter, corporation, or other business entity, the applicant shall:
    (1) provide the commissioner with a copy of any agreement between a combatant
and the applicant that binds the applicant to pay the combatant a certain fixed fee or
percentage of the gate receipts;
    (2) show on the application the owner or owners of the applicant entity and the
percentage of interest held by each owner holding a 25 percent or more interest in the
applicant;
    (3) provide the commissioner with a copy of the latest financial statement of the
entity; and
    (4) provide the commissioner with a copy or other proof acceptable to the
commissioner of the insurance contract or policy required by this chapter.
    (b) Before the commissioner issues a license to a promoter, the applicant shall
deposit with the commissioner a cash bond or surety bond in an amount set by the
commissioner, which must not be less than $10,000. The bond shall be executed in favor
of this state and shall be conditioned on the faithful performance by the promoter of the
promoter's obligations under this chapter and the rules adopted under it. An applicant for a
license as a promoter and licensed promoters shall submit an application for each event a
minimum of six weeks before the combative sport contest is scheduled to occur.
    (c) Before the commissioner issues a license to a combatant, the applicant shall
submit to the commissioner:
    (1) a mixed martial arts combatant national identification number or federal boxing
identification number that is unique to the applicant, or both; and
    (2) the results of a current medical examination on forms furnished or approved
by the commissioner. The medical examination must include an ophthalmological and
neurological examination, and documentation of test results for HBV, HCV, and HIV, and
any other blood test as the commissioner by rule may require. The ophthalmological
examination must be designed to detect any retinal defects or other damage or condition
of the eye that could be aggravated by combative sports. The neurological examination
must include an electroencephalogram or medically superior test if the combatant has
been knocked unconscious in a previous contest. The commissioner may also order an
electroencephalogram or other appropriate neurological or physical examination before
any contest if it determines that the examination is desirable to protect the health of the
combatant. The commissioner shall not issue a license to an applicant submitting positive
test results for HBV, HCV, or HIV.

    Sec. 42. Minnesota Statutes 2012, section 341.32, subdivision 2, is amended to read:
    Subd. 2. Expiration and renewal. A license issued after July 1, 2007, is valid for
one year from the date it is issued and Licenses expire annually on December 31, and may
be renewed by filing an application for renewal with the commissioner and payment of the
license fees established in section 341.321. An application for a license and renewal of a
license must be on a form provided by the commissioner. There is a 30-day grace period
during which a license may be renewed if a late filing penalty fee equal to the license fee
is submitted with the regular license fee. A licensee that files late shall not conduct any
activity regulated by this chapter until the commissioner has renewed the license. If the
licensee fails to apply to the commissioner within the 30-day grace period, the licensee
must apply for a new license under subdivision 1.

    Sec. 43. Minnesota Statutes 2012, section 341.321, is amended to read:
341.321 FEE SCHEDULE.
    (a) The fee schedule for professional licenses issued by the commissioner is as
follows:
    (1) referees, $45 $80 for each initial license and each renewal;
    (2) promoters, $400 $700 for each initial license and each renewal;
    (3) judges and knockdown judges, $45 $80 for each initial license and each renewal;
    (4) trainers, $45 $80 for each initial license and each renewal;
    (5) ring announcers, $45 $80 for each initial license and each renewal;
    (6) seconds, $45 $80 for each initial license and each renewal;
    (7) timekeepers, $45 $80 for each initial license and each renewal;
    (8) combatants, $45 $120 for each initial license and each renewal;
    (9) managers, $45 $80 for each initial license and each renewal; and
    (10) ringside physicians, $45 $80 for each initial license and each renewal.
In addition to the license fee and the late filing penalty fee in section 341.32, subdivision
2 , if applicable, an individual who applies for a professional license on the same day the
combative sporting event is held shall pay a late fee of $100 plus the original license fee of
$45 $120 at the time the application is submitted.
    (b) The fee schedule for amateur licenses issued by the commissioner is as follows:
    (1) referees, $45 $80 for each initial license and each renewal;
    (2) promoters, $400 $700 for each initial license and each renewal;
    (3) judges and knockdown judges, $45 $80 for each initial license and each renewal;
    (4) trainers, $45 $80 for each initial license and each renewal;
    (5) ring announcers, $45 $80 for each initial license and each renewal;
    (6) seconds, $45 $80 for each initial license and each renewal;
    (7) timekeepers, $45 $80 for each initial license and each renewal;
    (8) combatant, $25 $60 for each initial license and each renewal;
    (9) managers, $45 $80 for each initial license and each renewal; and
    (10) ringside physicians, $45 $80 for each initial license and each renewal.
    (c) The commissioner shall establish a contest fee for each combative sport contest.
The professional combative sport contest fee is $1,500 per event or not more than four
percent of the gross ticket sales, whichever is greater, as determined by the commissioner
when the combative sport contest is scheduled, except that the amateur combative sport
contest fee shall be $500 $1,500 or not more than four percent of the gross ticket sales,
whichever is greater. The commissioner shall consider the size and type of venue when
establishing a contest fee. The commissioner may establish the maximum number
of complimentary tickets allowed for each event by rule. A professional or amateur
combative sport contest fee is nonrefundable.
    (d) All fees and penalties collected by the commissioner must be deposited in the
commissioner account in the special revenue fund.

    Sec. 44. JOB-BASED EDUCATION AND APPRENTICESHIP PROGRAM
(JEAP) FOR MANUFACTURING INDUSTRIES.
    Subdivision 1. Creation. The commissioner of labor and industry, in collaboration
with the Board of Trustees of the Minnesota State Colleges and Universities (MnSCU)
and employers, shall develop JEAP for manufacturing industries that integrates academic
instruction and job-related learning in the workplace and through MnSCU institutions.
The commissioner shall actively recruit participants in JEAP, through the Web-based hub
created in subdivision 4 and other means, from the following groups: secondary and
postsecondary school systems; individuals with disabilities; dislocated workers; retired
and disabled veterans; individuals enrolled in MFIP under Minnesota Statutes, chapter
256J; minorities; previously incarcerated individuals; individuals residing in labor surplus
areas as defined by the United States Department of Labor; and any other disadvantaged
group as determined by the commissioner.
    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
(b) "Board of Trustees of the Minnesota State Colleges and Universities" has the
meaning given in Minnesota Statutes, section 136F.01.
(c) "Commissioner" means the commissioner of labor and industry.
(d) "Employer" means a skilled manufacturing employer within the state who enters
into the agreements with MnSCU and the commissioner of labor under subdivisions 4 to 6.
(e) "Hub" or "the hub" means the Web-based listing of skilled manufacturing jobs
under subdivision 3.
(f) "MnSCU institution" means the local college or university providing instruction
to the participant.
(g) "Participant" means an employee who:
(1) enters into a JEAP participation agreement under subdivision 6; and
(2) is successfully admitted to a MnSCU institution, if applicable.
(h) "Related instruction" means classroom instruction or technical or vocational
training required to perform the duties of the skilled manufacturing job.
(i) "Skilled manufacturing" means occupations in manufacturing industry sectors 31
to 33 as defined by the North American Industry Classification System (NAICS).
    Subd. 3. Job-seekers hub. (a) The commissioner shall develop a centralized
Web-based skilled manufacturing job-seekers hub that matches the needs of employers
with job seekers.
(b) An employer may advertise a JEAP or other job opportunity on the hub if the
employer:
(1) collaborates with a MnSCU institution to assist with the development of any
necessary classroom instruction or technical or vocational training that may be required to
perform the duties of the skilled manufacturing job;
(2) collaborates with the commissioner of labor and industry to create a JEAP under
subdivision 4;
(3) abides by the terms of the JEAP employer agreement under subdivision 4; and
(4) employs the participant under the terms of a JEAP participation agreement under
subdivision 5 for the duration of the modified apprenticeship program and, assuming
successful completion, makes reasonable efforts to continue to employ the participant as a
regular employee.
(c) Job seekers seeking skilled manufacturing jobs advertised on the hub agree to
abide by the terms of the JEAP participation agreement under subdivision 5.
(d) The Board of Trustees of MnSCU and MnSCU institutions shall provide
information for the hub describing the related instruction component of JEAP through
data exchange.
    Subd. 4. JEAP employer agreement. (a) The commissioner, eligible employer,
and MnSCU institution shall enter into a JEAP employer agreement that is specific to the
identified manufacturing training needs of an employer.
(b) The agreement must contain the following:
(1) the name of the employer;
(2) a statement showing the number of hours to be spent by a participant in work and
the number of hours to be spent, if any, in concurrent, supplementary instruction in related
subjects. The maximum number of hours of work per week, not including time spent in
related instruction, for any participant shall not exceed either the number prescribed by
law or the customary regular number of hours per week for the employees of the company
by which the participant is employed. A participant may be allowed to work overtime
provided that the overtime work does not conflict with supplementary instruction course
attendance. All time spent by the participant in excess of the number of hours of work per
week as specified in the JEAP participation agreement shall be considered overtime;
(3) a statement showing the schedule of wages that a participant will earn, including
a probationary period, if any;
(4) an explanation of how the employer agreement or participant agreement may
be terminated;
(5) a statement setting forth a schedule of the processes in the occupation in which
the participant is to be trained and the approximate time to be spent at each process;
(6) a statement by the MnSCU institution and the employer describing the related
instruction that will be offered, if any, under subdivision 6, paragraph (c); and
(7) any other provision the commissioner deems necessary to carry out the purposes
of this section.
    Subd. 5. JEAP participation agreement. (a) The commissioner, the prospective
participant, and the employer shall enter into a JEAP participation agreement that is
specific to the manufacturing training to be provided to the participant.
(b) The participation agreement must contain the following:
(1) the name of the employer;
(2) the name of the participant;
(3) a statement setting forth a schedule of the processes of the occupation in which
the participant is to be trained and the approximate time to be spent at each process;
(4) a description of any related instruction;
(5) a statement showing the number of hours to be spent by a participant in work and
the number of hours to be spent, if any, in concurrent, supplementary instruction in related
subjects. The maximum number of hours of work per week, not including time spent in
related instruction, for any participant shall not exceed either the number prescribed by
law or the customary regular number of hours per week for the employees of the company
by which the participant is employed. A participant may be allowed to work overtime
provided that the overtime work does not conflict with supplementary instruction course
attendance. All time spent by the participant in excess of the number of hours of work per
week as specified in the JEAP participation agreement shall be considered overtime;
(6) a statement showing the schedule of wages that a participant will earn, including
a probationary period, if any; and
(7) an explanation of how the parties may terminate the participation agreement.
(c) If a JEAP participation agreement meets the requirements of Minnesota
Statutes, section 178.07, the commissioner may approve the participation agreement
as an apprenticeship agreement.
(d) The commissioner may periodically review the adherence to the terms of
the JEAP participation agreement. If the commissioner determines that an employer
or participant has failed to comply with the terms of a participation agreement, the
commissioner shall terminate the participation agreement.
    Subd. 6. MnSCU instruction. (a) MnSCU institutions shall collaborate with
employers to provide related instruction which the employer deems necessary to instruct
participants of JEAP. The related instruction provided must be, for the purposes of this
section, career-level, as negotiated by the commissioner and the MnSCU institution. The
related instruction may be for credit or noncredit, and credit earned may be transferable to
a degree program, as determined by the MnSCU institution.
(b) The commissioner, in conjunction with the MnSCU institution, shall issue a
certificate of completion to a participant who completes all required components of the
JEAP participation agreement.
(c) As part of the JEAP, an employer shall collaborate with a MnSCU institution for
any related instruction required to perform the skilled manufacturing job. The employer
agreement shall include:
(1) a detailed explanation of the related instruction; and
(2) the number of hours of related instruction needed to receive a certificate of
completion.
(d) Before entering into a JEAP participation agreement under subdivision 6, a
prospective participant must enroll in the MnSCU institution at which the required
instruction will occur. Acceptance into JEAP does not guarantee enrollment as a
degree-seeking student in good standing at a MnSCU institution. The MnSCU institution
may modify admission procedures and requirements for participants applying for JEAP
under this section.
    Subd. 7. Expiration. JEAP does not expire unless jointly agreed to by both the
Board of Trustees of MnSCU and the commissioner.

    Sec. 45. IMPLEMENTATION; REPORT.
The commissioner shall implement JEAP for manufacturing industries under
Minnesota Statutes, section 178A.10, at Century College, Alexandria Technical and
Community College, Hennepin Technical College, and Central Lakes College. By January
15, 2015, the commissioner and the Board of Trustees of MnSCU, in conjunction with
each MnSCU institution listed in this section, shall report to the legislative committees
with jurisdiction over jobs. The report must address the progress and success of the
implementation of JEAP at each individual MnSCU institution listed in this section. The
report must give recommendations on where JEAP should next be implemented, taking
into consideration all current and potential manufacturing training providers available.

    Sec. 46. REPEALER.
(a) Minnesota Statutes 2012, sections 326B.31, subdivisions 18, 19, and 22; and
326B.978, subdivision 4, are repealed.
(b) Minnesota Rules, parts 1307.0032; 3800.3520, subpart 5, items C and D; and
3800.3602, subpart 2, item B, subitems (5) and (6), are repealed.

ARTICLE 3

EMPLOYMENT, ECONOMIC DEVELOPMENT, AND
WORKFORCE DEVELOPMENT

    Section 1. [116J.013] COST-OF-LIVING STUDY; ANNUAL REPORT.
(a) The commissioner shall conduct an annual cost-of-living study in Minnesota.
The study shall include:
(1) a calculation of the statewide basic needs cost of living, adjusted for family size;
(2) a calculation of the basic needs cost of living, adjusted for family size, for each
county;
(3) an analysis of statewide and county cost-of-living data, employment data, and
job vacancy data; and
(4) recommendations to aid in the assessment of employment and economic
development planning needs throughout the state.
(b) The commissioner shall report on the cost-of-living study and recommendations
by February 1 of each year to the governor and to the chairs of the standing committees
of the house of representatives and the senate having jurisdiction over employment and
economic development issues.

    Sec. 2. [116J.4011] LABOR MARKET INFORMATION DATA PRODUCTION
REQUIREMENT.
(a) As part of the commissioner's obligation under section 116J.401, the
commissioner must, in collaboration with the Office of Higher Education and local
workforce center boards, publish labor market analysis supply and demand reports,
statewide and by region. The supply and demand reports must:
(1) identify the state and regional industry sectors and occupations with the highest
current and projected job growth;
(2) identify top job vacancies by state and regional industry sectors and occupations;
(3) provide information on the education attainment of the current state and regional
workforce;
(4) identify the expected number of graduates in industry-recognized credential and
degree programs by career field;
(5) identify the completion rate and average debt per student of industry-recognized
credential and degree programs by career field;
(6) identify higher education institutions offering industry-recognized credential and
degree programs in high job-growth career fields;
(7) make projections on future state and regional job growth by education level; and
(8) utilize employer surveys to identify the credentials and skills needed for
employment in high job-growth occupations.
(b) The statewide report and regional reports shall each present side-by-side
comparisons of:
(1) new job growth and total job openings by education level compared with
educational attainment levels of current workforce;
(2) current and projected top high-growth, high-pay industries by number of new
jobs and median salaries compared with top annual graduates by major or credential; and
(3) top job vacancies requiring some postsecondary credential. Each of these
vacancies should be directly linked to information about what credentials are required,
where in the state and region those credentials can be obtained, the completion and
credential attainment rate of each of those credential programs, the average debt per
student who attains each credential, and median wages for the job vacancy.
(c) Reports required by this section must be regularly reviewed by regional
employers and educators to ensure accuracy.
(d) Reports required by this section must be easily accessible, easily readable, and
prominently presented on the Department of Employment and Economic Development
Web site and Web sites of workforce centers.

    Sec. 3. Minnesota Statutes 2012, section 116J.8731, subdivision 2, is amended to read:
    Subd. 2. Administration. Except as otherwise provided in this section, the
commissioner shall administer the fund as part of the Small Cities Development Block
Grant Program. and funds shall be made available to local communities and recognized
Indian tribal governments in accordance with the rules adopted for economic development
grants in the small cities community development block grant program, except that.
All units of general purpose local government are eligible applicants for Minnesota
investment funds. The commissioner may provide forgivable loans directly to a private
enterprise and not require a local community or recognized Indian tribal government
application other than a resolution supporting the assistance. Eligible applicants for the
state-funded portion of the fund also include development authorities as defined in section
116J.552, subdivision 4, provided that the governing body of the municipality approves,
by resolution, the application of the development authority. The commissioner may also
make funds available within the department for eligible expenditures under subdivision 3,
clause (2). A home rule charter or statutory city, county, or town may loan or grant money
received from repayment of funds awarded under this section to a regional development
commission, other regional entity, or statewide community capital fund as determined by
the commissioner, to capitalize or to provide the local match required for capitalization of
a regional or statewide revolving loan fund.

    Sec. 4. Minnesota Statutes 2012, section 116J.8731, subdivision 3, is amended to read:
    Subd. 3. Eligible expenditures. The money appropriated for this section may
be used to:
(1) fund loans or grants for infrastructure, loans, loan guarantees, interest buy-downs,
and other forms of participation with private sources of financing, provided that a loan to
a private enterprise must be for a principal amount not to exceed one-half of the cost of
the project for which financing is sought;
(2) fund strategic investments in renewable energy market development, such as
low interest loans for renewable energy equipment manufacturing, training grants to
support renewable energy workforce, development of a renewable energy supply chain
that represents and strengthens the industry throughout the state, and external marketing
to garner more national and international investment into Minnesota's renewable sector.
Expenditures in external marketing for renewable energy market development are not
subject to the limitations in clause (1); and
(3) provide private entrepreneurs with training, other technical assistance, and
financial assistance, as provided in the small cities development block grant program.

    Sec. 5. Minnesota Statutes 2012, section 116J.8731, subdivision 8, is amended to read:
    Subd. 8. Disaster contingency account; repayments. There is created a Minnesota
investment fund disaster contingency account in the special revenue fund. Repayment of
loan amounts to the local government unit or development authority under this section
shall be forwarded to the commissioner and deposited in the disaster contingency account
in the Minnesota investment fund to be appropriated by law for future disaster relief.

    Sec. 6. Minnesota Statutes 2012, section 116J.8731, subdivision 9, is amended to read:
    Subd. 9. Requirements for assistance. (a) All awards under section 12A.07 are
subject to the following requirements in this subdivision.
(a) Eligible applicants include the following:
(b) Eligible applicants are subject to the following requirements:
(1) Applicants may be any business or nonprofit organization in the area included
in the disaster declaration that was directly and adversely affected by the disaster. This
includes: businesses, cooperatives, utilities, industrial, commercial, retail, and nonprofit
organizations, including those nonprofits that provide residential, health care, child care,
social, or other services on behalf of the Department of Human Services to residents
included in the disaster area.
    (2) Business applicants must be organized as a proprietorship, partnership, LLC, or
a corporation.
    (3) Applicants must have been in operation before the date of the disaster.
    (b) Eligible activities. (c) Loan funds may be used to assist businesses only in their
recovery efforts but are not available to provide relief from economic losses.
    (c) Eligible costs. (d) Eligible costs may include the following: repair of buildings,
leasehold improvements, fixtures and/or equipment, loss of inventory, and cleanup costs.
    (d) (e) Ineligible activities include all of the following:
    (1) Ineligible applicants. Any applicants not meeting the eligibility requirements
outlined in this subdivision are ineligible to receive recovery loan funds.
    (2) Ineligible activities. Funds may not be used for lending or investment operations,
land speculation, or any activity deemed illegal by federal, state, or local law or ordinance.
    (3) Ineligible costs. Ineligible costs include but are not limited to: economic injury
losses, relocation, management fees, financing costs, franchise fees, debt consolidation,
moving costs, refinancing debt existing prior to the date of the disaster, and operating costs.
    (e) (f) Loan application:
    (1) Application process. All parties seeking recovery loan funds must file an
application with the local unit of government or development authority. Small Business
Administration (SBA) application forms may be used. Applications must be transmitted
in the form and manner prescribed by the commissioner.
    (f) Application information. (g) Only completed applications will be reviewed for
consideration. Submittal of the following information constitutes a complete application:
    (1) Minnesota investment fund recovery loan fund application;
    (2) business SBA disaster application, if applicable;
    (3) regional development organization or responsible local government application,
if applicable;
    (4) administrative contact;
    (5) business release for local government to review SBA damage assessment/loss
verification, if applicable;
    (6) proof of loss statement from insurer;
    (7) construction cost estimates;
    (8) invoices for work completed;
    (9) quotes for equipment;
    (10) proposed security;
    (11) company historical financial statements for the 24 months immediately prior to
the application date;
    (12) credit check release;
    (13) number of jobs to be retained;
    (14) wages paid;
    (15) amount of loan request;
    (16) documentation of damages incurred;
    (17) property taxes paid and current;
    (18) judgments, liens, agreements, consent decrees, stipulations for settlements, or
other such actions which would prevent the applicant from participating in any program
administered by the responsible local, state, or regional government;
    (19) compliance with all applicable local ordinances and plans;
    (20) documentation through financial and tax records that the business was a viable
operating entity at the time of the flood;
    (21) business tax identification number; and
    (22) other documentation as requested.
    (g) (h) Incomplete applications will be assigned pending status and the applicant
will be informed in writing of the missing documentation.
    (h) Determination of eligibility. (i) Applicant eligibility will be determined using
criteria enumerated in paragraph (a) (b). A credit check for the company and each of its
principal owners may be conducted. An owner's encumbrance report will be completed
by the Recorder's Office.
    (j) A grant recipient is eligible for assistance provided under this section only after the
recipient has claimed all applicable private insurance and the recipient has utilized all other
sources of applicable assistance available under the act appropriating funding for the grant.

    Sec. 7. [116J.8748] MINNESOTA JOB CREATION FUND.
    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
have the meanings given them.
(b) "Agreement" or "business subsidy agreement" means a business subsidy
agreement under section 116J.994 that must include, but is not limited to: specification
of the duration of the agreement, job goals and a timeline for achieving those goals over
the duration of the agreement, construction and other investment goals and a timeline for
achieving those goals over the duration of the agreement, and the value of benefits the
firm may receive following achievement of construction and employment goals. The local
government and business must report to the commissioner on the business performance
using the forms developed by the commissioner.
(c) "Business" means an individual, corporation, partnership, limited liability
company, association, or other entity.
(d) "Capital investment" means money that is expended for the purpose of building
or improving real fixed property where employees under paragraphs (g) and (h) are or will
be employed and also includes construction materials, services, and supplies.
(e) "Commissioner" means the commissioner of employment and economic
development.
(f) "Minnesota job creation fund business" means a business that is designated
by the commissioner under subdivision 3.
(g) "New full-time employee" means an employee who:
(1) begins work at a Minnesota job creation fund business facility noted in a business
subsidy agreement and following the designation as a job creation fund business; and
(2) has expected work hours of at least 2,080 hours annually.
(h) "Retained job" means a full-time position:
(1) that existed at the facility prior to the designation as a job creation fund business;
and
(2) has expected work hours of at least 2,080 hours annually.
(i) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).
    Subd. 2. Application. (a) In order to qualify for designation as a Minnesota job
creation fund business under subdivision 3, a business must submit an application to the
local government entity where the facility is or will be located.
(b) A local government must submit the business application along with other
application materials to the commissioner for approval.
(c) The applications required under paragraphs (a) and (b) must be in the form and
be made under the procedures specified by the commissioner.
    Subd. 3. Minnesota job creation fund business designation; requirements. (a)
To receive designation as a Minnesota job creation fund business, a business must satisfy
all of the following conditions:
(1) the business is or will be engaged in, within Minnesota, one of the following
as its primary business activity:
(i) manufacturing;
(ii) warehousing;
(iii) distribution;
(iv) information technology;
(v) finance;
(vi) insurance; or
(vii) professional or technical services;
(2) the business must not be primarily engaged in lobbying, gambling, entertainment,
professional sports, political consulting, leisure, hospitality, or professional services
provided by attorneys, accountants, business consultants, physicians, or health care
consultants, or primarily engaged in making retail sales to purchasers who are physically
present at the business's location;
(3) the business must enter into a binding construction and job creation business
subsidy agreement with the commissioner to expend at least $500,000 in capital
investment in a construction project that includes a new, expanded, or remodeled facility
within one year following designation as a Minnesota job creation fund business and:
(i) create at least ten new full-time employee positions within two years of the
benefit date following the designation as a Minnesota job creation fund business; or
(ii) expend at least $25,000,000 in capital investment and retain at least 50 employees;
(4) positions or employees moved or relocated from another Minnesota location
of the Minnesota job creation fund business must not be included in any calculation or
determination of job creation or new positions under this paragraph; and
(5) a Minnesota job creation fund business must not terminate, lay off, or reduce
the working hours of an employee for the purpose of hiring an individual to satisfy job
creation goals under this subdivision.
(b) Prior to approving the proposed designation of a business under this subdivision,
the commissioner shall consider the following:
(1) the economic outlook of the industry in which the business engages;
(2) the projected sales of the business that will be generated from outside the state
of Minnesota;
(3) how the business will build on existing regional, national, and international
strengths to diversify the state's economy;
(4) whether the business activity would occur without financial assistance;
(5) whether the business is unable to expand at an existing Minnesota operation
due to facility or land limitations;
(6) whether the business has viable location options outside Minnesota;
(7) the effect of financial assistance on industry competitors in Minnesota;
(8) financial contributions to the project made by local governments; and
(9) any other criteria the commissioner deems necessary.
(c) Upon receiving notification of local approval under subdivision 2, the
commissioner shall review the determination by the local government and consider the
conditions listed in paragraphs (a) and (b) to determine whether it is in the best interests of
the state and local area to designate a business as a Minnesota job creation fund business.
(d) If the commissioner designates a business as a Minnesota job creation fund
business, the business subsidy agreement shall include the performance outcome
commitments and the expected financial value of any Minnesota job creation fund benefits.
(e) The commissioner may amend an agreement once, upon request of a local
government on behalf of a business, only if the performance is expected to exceed
thresholds stated in the original agreement.
(f) A business may apply to be designated as a Minnesota job creation fund business
at the same location more than once only if all goals under a previous Minnesota job
creation fund agreement have been met and the agreement is completed.
    Subd. 4. Certification; benefits. (a) The commissioner may certify a Minnesota job
creation fund business as eligible to receive a specific value of benefit under paragraphs
(b) and (c) when the business has achieved its job creation and construction goals noted in
its agreement under subdivision 3.
(b) A qualified Minnesota job creation fund business may be certified eligible for the
benefits in this paragraph for up to five years for projects located in the metropolitan area
as defined in section 200.02, subdivision 24, and seven years for projects located outside
the metropolitan area, as determined by the commissioner when considering the best
interests of the state and local area. The eligibility for the following benefits begins the
date the commissioner certifies the business as a qualified Minnesota job creation fund
business under this subdivision:
(1) up to five percent rebate for projects located in the metropolitan area as
defined in section 200.02, subdivision 24, and 7.5 percent for projects located outside
the metropolitan area, on capital investment on qualifying purchases as provided in
subdivision 5 with the total rebate for a project not to exceed $500,000;
(2) an award of up to $500,000 based on full-time job creation and wages paid as
provided in subdivision 6 with the total award not to exceed $500,000;
(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation
awards for projects that have at least $25,000,000 in capital investment and 200 new
employees; and
(4) up to $1,000,000 in capital investment rebates for projects that have at least
$25,000,000 in capital investment and 50 retained employees.
(c) The job creation award may be provided in multiple years as long as the qualified
Minnesota job creation fund business continues to meet the job creation goals provided
for in its agreement under subdivision 3 and the total award does not exceed $500,000
except as provided under paragraph (b), clauses (3) and (4).
(d) No rebates or award may be provided until the Minnesota job creation fund
business has at least $500,000 in capital investment in the project and at least ten full-time
jobs have been created and maintained for at least one year or the retained employees, as
provided in paragraph (b), clause (4), remain for at least one year. The agreement may
require additional performance outcomes that need to be achieved before rebates and
awards are provided. If fewer retained jobs are maintained, but still above the minimum
under this subdivision, the capital investment award shall be reduced on a proportionate
basis.
(e) The forms needed to be submitted to document performance by the Minnesota
job creation fund business must be in the form and be made under the procedures specified
by the commissioner. The forms shall include documentation and certification by the
business that it is in compliance with the business subsidy agreement, sections 116J.871
and 116L.66, and other provisions as specified by the commissioner.
(f) Minnesota job creation fund businesses must pay each new full-time employee
added pursuant to the agreement total compensation, including benefits not mandated by
law, that on an annualized basis is equal to at least 110 percent of the federal poverty
level for a family of four.
(g) A Minnesota job creation fund business must demonstrate reasonable progress
on its capital investment expenditures within six months following designation as a
Minnesota job creation fund business to ensure that the capital investment goal in the
agreement under subdivision 1 will be met. The commissioner may determine that
a business not making reasonable progress will not be eligible for benefits under the
submitted application and will need to work with the local government unit to submit a
new application and request to be a Minnesota job creation fund business. Notwithstanding
any six-month goals noted in its agreement under subdivision 1, this action shall not be
considered a default of the business subsidy agreement.
    Subd. 5. Capital investment rebate. (a) A qualified Minnesota job creation fund
business is eligible for a rebate on the purchase and use of construction materials, services,
and supplies used for or consumed in the construction project as described in the goals
under the agreement provided under subdivision 1, paragraph (b).
(b) The rebate under this subdivision applies regardless of whether the purchases are
made by the qualified Minnesota job creation fund business or a contractor hired to perform
work or provide services at the qualified Minnesota job creation fund business location.
(c) Minnesota job creation fund businesses seeking the rebate for capital investment
provided under subdivision 4 must submit forms and applications to the Department of
Employment and Economic Development as prescribed by the commissioner of each
department.
    Subd. 6. Job creation award. (a) A qualified Minnesota job creation fund business
is eligible for an annual award for each new job created and maintained by the business
using the following schedule: $1,000 for each job position paying annual wages at least
$26,000 but less than $35,000; $2,000 for each job position paying at least $35,000 but
less than $45,000; and $3,000 for each job position paying at least $45,000; and as noted
in the goals under the agreement provided under subdivision 1.
(b) The job creation award schedule must be adjusted annually using the percentage
increase in the federal poverty level for a family of four.
(c) Minnesota job creation fund businesses seeking an award credit provided under
subdivision 4 must submit forms and applications to the Department of Employment and
Economic Development as prescribed by the commissioner.
EFFECTIVE DATE.This section is effective January 1, 2014.

    Sec. 8. [116J.9661] TRADE POLICY ADVISORY GROUP.
    Subdivision 1. Establishment. A trade policy advisory group is established to
advise and assist the governor and the legislature regarding government procurement
agreements of United States trade agreements.
    Subd. 2. Membership. (a) The trade policy advisory group shall be appointed by
the governor and comprised of 12 members as follows:
(1) two representatives of organized labor;
(2) a representative of an organization representing environmental interests;
(3) a representative of organizations representing family farmers;
(4) two representatives from business and industry;
(5) a representative of a nonprofit organization focused on international trade and
development;
(6) the commissioner of employment and economic development or the
commissioner's designee;
(7) two senators, including one member from the majority party and one member
from the minority party, appointed by the Subcommittee on Committees of the Committee
on Rules and Administration of the senate; and
(8) two members of the house of representatives, including one member appointed
by the speaker of the house and one member appointed by the minority leader.
(b) Members of the trade policy advisory group shall serve for a term of two years
and may be reappointed. Members shall serve until their successors have been appointed.
(c) The trade policy advisory group may invite representatives from other state
agencies, industries, trade and labor organizations, nongovernmental organizations, and
local governments to join the group as nonvoting ex officio members.
    Subd. 3. Administration. (a) The commissioner of employment and economic
development or the commissioner's designee shall:
(1) coordinate with the other appointing authorities to designate their representatives;
and
(2) provide meeting space and administrative services for the group.
(b) The members shall elect a chair from the legislative members of the working
group. The chair will assume responsibility for convening future meetings of the group.
(c) Public members of the advisory group serve without compensation or payment of
expenses.
    Subd. 4. Duties. The trade policy advisory group shall:
(1) serve as an advisory group to the governor and the legislature on matters relating
to government procurement agreements of United States trade agreements;
(2) assess the potential impact of government procurement agreements on the state's
economy;
(3) advise the governor and the legislature of the group's findings and make
recommendations, including any draft legislation necessary to implement the
recommendations, to the governor and the legislature;
(4) determine, on a case-by-case basis, the impact of a specific government
procurement agreement by requesting input from state agencies, seeking expert advice,
convening public hearings, and taking other reasonable and appropriate actions;
(5) provide advice on other issues related to trade agreements other than government
procurement agreements when specifically requested by the governor or the legislature;
(6) request information from the Office of the United States Trade Representative
necessary to conduct an appropriate review of government procurement agreements or
other trade issues as directed by the governor or the legislature; and
(7) receive information obtained by the United States Trade Representative's single
point of contact for Minnesota.
    Subd. 5. Report. The trade policy advisory group shall issue a report to the
legislature with its findings and recommendations no less than once per fiscal year.

    Sec. 9. [116J.978] MINNESOTA TRADE OFFICES IN FOREIGN MARKETS.
(a) The commissioner of employment and economic development shall establish
three new Minnesota Trade Offices in key foreign markets selected for their potential to
increase Minnesota exports and attract foreign direct investment.
(b) The commissioner shall establish a performance rating system for the new offices
established under this section and create specific annual goals for the offices to meet. The
commissioner shall monitor activities of the office, including, but not limited to, the number
of inquiries and projects received and completed, meetings arranged between Minnesota
companies and potential investors, distributors, or customers, and agreements signed.

    Sec. 10. [116J.979] MINNESOTA STEP GRANTS.
    Subdivision 1. Establishment. The commissioner of employment and economic
development shall create a State Trade and Export Promotion grants program, hereafter
STEP grants, to provide financial and technical assistance to eligible Minnesota small
businesses with an active interest in exporting products or services to foreign markets.
    Subd. 2. Grants. Recipients may apply, on an application devised by the
commissioner, for up to $7,500 in reimbursement for approved export-development
activities, including, but not limited to:
(1) participation in trade missions;
(2) export training;
(3) exhibition at trade shows or industry-specific events;
(4) translation of marketing materials;
(5) development of foreign language Web sites, Gold Key, or other business
matchmaking services;
(6) company-specific international sales activities; and
(7) testing and certification required to sell products in foreign markets.

    Sec. 11. [116J.9801] INVEST MINNESOTA.
The commissioner shall establish the Invest Minnesota marketing initiative. This
initiative must focus on branding the state's economic development initiatives and
promoting Minnesota business opportunities. The initiative may include measures to
communicate the benefits of doing business in Minnesota to companies considering
relocating, establishing a United States presence, or expanding.

    Sec. 12. [116L.191] WORKFORCE CENTER; CREDENTIAL ASSISTANCE.
(a) The commissioner shall provide at local workforce centers services that
assist individuals in identifying and obtaining industry-recognized credentials for jobs,
particularly jobs in high demand. The workforce centers must consult and cooperate
with training institutions, particularly postsecondary institutions, to identify credential
programs to individuals.
(b) Each workforce center shall provide information under section 116J.4011,
paragraph (b), clause (3), linked as a shortcut from the desktop of each workforce center
computer and available in hard copy. Prominent signs should be posted in workforce
centers directing individuals to where they can find a list of top job vacancies and related
credential information.

    Sec. 13. Minnesota Statutes 2012, section 116U.26, is amended to read:
116U.26 FILM PRODUCTION JOBS PROGRAM.
    (a) The film production jobs program is created. The program shall be operated
by the Minnesota Film and TV Board with administrative oversight and control by the
commissioner of administration employment and economic development. The program
shall make payment to producers of feature films, national television or Internet programs,
documentaries, music videos, and commercials that directly create new film jobs in
Minnesota. To be eligible for a payment, a producer must submit documentation to the
Minnesota Film and TV Board of expenditures for production costs incurred in Minnesota
that are directly attributable to the production in Minnesota of a film product.
    The Minnesota Film and TV Board shall make recommendations to the
commissioner of administration employment and economic development about program
payment, but the commissioner has the authority to make the final determination on
payments. The commissioner's determination must be based on proper documentation of
eligible production costs submitted for payments. No more than five percent of the funds
appropriated for the program in any year may be expended for administration, including
costs for independent audits and financial reviews of projects.
    (b) For the purposes of this section:
    (1) "production costs" means the cost of the following:
    (i) a story and scenario to be used for a film;
    (ii) salaries of talent, management, and labor, including payments to personal
services corporations for the services of a performing artist;
    (iii) set construction and operations, wardrobe, accessories, and related services;
    (iv) photography, sound synchronization, lighting, and related services;
    (v) editing and related services;
    (vi) rental of facilities and equipment; or
    (vii) other direct costs of producing the film in accordance with generally accepted
entertainment industry practice; and
(viii) above-the-line talent fees for nonresident talent; or
(ix) costs incurred during postproduction; and
    (2) "film" means a feature film, television or Internet show, pilot, program, series,
documentary, music video, or television commercial, whether on film, video, or digital
media. Film does not include news, current events, public programming, or a program
that includes weather or market reports; a talk show; a production with respect to a
questionnaire or contest; a sports event or sports activity; a gala presentation or awards
show; a finished production that solicits funds; or a production for which the production
company is required under United States Code, title 18, section 2257, to maintain records
with respect to a performer portrayed in a single-media or multimedia program.
    (c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board
may make reimbursements of: (1) up to 20 25 percent of film production costs for films that
locate production outside the metropolitan area, as defined in section 473.121, subdivision
2, or that incur production costs in excess of $5,000,000 in the metropolitan area within a
12-month period; or (2) up to 15 20 percent of film production costs for films that incur
production costs of $5,000,000 or less in the metropolitan area within a 12-month period.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 14. Minnesota Statutes 2012, section 136F.37, is amended to read:
136F.37 JOB PLACEMENT IMPACT ON PROGRAM REVIEW;
INFORMATION TO STUDENTS.
    Subdivision 1. Colleges; technical occupational program. The board must
assess labor market data when conducting college program reviews. Colleges must
provide prospective students with the job placement rate for graduates of technical and
occupational programs offered at the colleges.
    Subd. 2. DEED labor market survey; MnSCU usage and disclosure. The data
assessed under subdivision 1 must include labor market data compiled by the Department
of Employment and Economic Development under section 116J.4011. The board and its
colleges and universities must use this market data when deciding upon course and program
offerings. The board must provide a link to this labor market data on its Internet portal.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 15. Minnesota Statutes 2012, section 245.4712, subdivision 1, is amended to read:
    Subdivision 1. Availability of community support services. (a) County boards
must provide or contract for sufficient community support services within the county to
meet the needs of adults with serious and persistent mental illness who are residents of the
county. Adults may be required to pay a fee according to section 245.481. The community
support services program must be designed to improve the ability of adults with serious
and persistent mental illness to:
    (1) work in a regular or supported work environment find and maintain competitive
employment;
    (2) handle basic activities of daily living;
    (3) participate in leisure time activities;
    (4) set goals and plans; and
    (5) obtain and maintain appropriate living arrangements.
    The community support services program must also be designed to reduce the
need for and use of more intensive, costly, or restrictive placements both in number of
admissions and length of stay.
    (b) Community support services are those services that are supportive in nature and
not necessarily treatment oriented, and include:
    (1) conducting outreach activities such as home visits, health and wellness checks,
and problem solving;
    (2) connecting people to resources to meet their basic needs;
    (3) finding, securing, and supporting people in their housing;
    (4) attaining and maintaining health insurance benefits;
    (5) assisting with job applications, finding and maintaining employment, and
securing a stable financial situation;
    (6) fostering social support, including support groups, mentoring, peer support, and
other efforts to prevent isolation and promote recovery; and
    (7) educating about mental illness, treatment, and recovery.
    (c) Community support services shall use all available funding streams. The county
shall maintain the level of expenditures for this program, as required under section
245.4835 . County boards must continue to provide funds for those services not covered
by other funding streams and to maintain an infrastructure to carry out these services. The
county is encouraged to fund evidence-based practices such as individual placement and
support supported employment and illness management and recovery.
    (d) The commissioner shall collect data on community support services programs,
including, but not limited to, demographic information such as age, sex, race, the number
of people served, and information related to housing, employment, hospitalization,
symptoms, and satisfaction with services.

    Sec. 16. Minnesota Statutes 2012, section 268A.13, is amended to read:
268A.13 EMPLOYMENT SUPPORT SERVICES FOR PERSONS WITH
MENTAL ILLNESS.
The commissioner of employment and economic development, in cooperation
with the commissioner of human services, shall develop a statewide program of grants
as outlined in section 268A.14 to provide services for persons with mental illness who
want to work in supported employment. Projects funded under this section must: (1)
assist persons with mental illness in obtaining and retaining competitive employment; (2)
emphasize individual community placements for clients client preferences; (3) ensure
interagency collaboration at the local level between vocational rehabilitation field offices,
county service agencies, community support programs operating under the authority of
section 245.4712, and community rehabilitation providers, in assisting clients; (4) ensure
services are integrated with mental health treatment; (5) provide benefits counseling;
(6) conduct rapid job search; and (4) (7) involve clients in the planning, development,
oversight, and delivery of support services. Project funds may not be used to provide
services in segregated settings such as the center-based employment subprograms as
defined in section 268A.01.
The commissioner of employment and economic development, in consultation
with the commissioner of human services, shall develop a request for proposals which is
consistent with the requirements of this section and section 268A.14 and which specifies
the types of services that must be provided by grantees. Priority for funding shall be given
to organizations with experience in developing innovative employment support services
for persons with mental illness carrying out evidence-based practices. Each applicant for
funds under this section shall submit an evaluation protocol as part of the grant application.

    Sec. 17. Minnesota Statutes 2012, section 268A.14, subdivision 1, is amended to read:
    Subdivision 1. Employment support services and programs. The commissioner
of employment and economic development, in cooperation with the commissioner of
human services, shall operate a statewide system to reimburse providers for employment
support services for persons with mental illness. The system shall be operated to support
employment programs and services where:
(1) services provided are readily accessible to all persons with mental illness who
want to work, including rapid competitive job search, so they can make progress toward
economic self-sufficiency;
(2) services provided are made an integral part of all mental health treatment and
rehabilitation programs for persons with mental illness to ensure that they have the ability
and opportunity to consider a variety of work options;
(3) programs help persons with mental illness form long-range plans for employment
that fit their skills and abilities by ensuring that ongoing time-unlimited support, crisis
management, placement, and career planning services are available;
(4) services provided give persons with mental illness the information needed
to make informed choices about employment expectations and options, including
information on the types of employment available in the local community, the types of
employment services available, the impact of employment on eligibility for governmental
benefits, and career options;
(5) programs assess whether persons with mental illness being serviced are satisfied
with the services and outcomes. Satisfaction assessments shall address at least whether
persons like their jobs, whether quality of life is improved, whether potential for
advancement exists, and whether there are adequate support services in place;
(6) programs encourage persons with mental illness being served to be involved in
employment support services issues by allowing them to participate in the development of
individual rehabilitation plans and to serve on boards, committees, task forces, and review
bodies that shape employment services policies and that award grants, and by encouraging
and helping them to establish and participate in self-help and consumer advocacy groups;
(7) programs encourage employers to expand employment opportunities for
persons with mental illness and, to maximize the hiring of persons with mental illness,
educate employers about the needs and abilities of persons with mental illness and the
requirements of the Americans with Disabilities Act;
(8) programs encourage persons with mental illness, vocational rehabilitation
professionals, and mental health professionals to learn more about current work incentive
provisions in governmental benefits programs;
(9) programs establish and maintain linkages with a wide range of other programs
and services, including educational programs, housing programs, economic assistance
services, community support services, and clinical services to ensure that persons with
mental illness can obtain and maintain employment;
(10) programs participate in ongoing training across agencies and service delivery
systems so that providers in human services systems understand their respective roles,
rules, and responsibilities and understand the options that exist for providing employment
and community support services to persons with mental illness; and
(11) programs work with local communities to expand system capacity to provide
access to employment services to all persons with mental illness who want them.

    Sec. 18. [383D.412] DAKOTA COUNTY COMMUNITY DEVELOPMENT
AGENCY; MINNESOTA INVESTMENT FUND.
    Subdivision 1. Treatment. As long as the conditions set forth in subdivision 2 are met
and notwithstanding the provisions of section 116J.8731, the Dakota County Community
Development Agency will be treated as if it were a general purpose local governmental unit
and may apply for and receive state-funded money from the Minnesota investment fund.
    Subd. 2. Conditions precedent. Conditions precedent to the treatment of the
Dakota County Community Development Agency as a general purpose local governmental
unit as described in subdivision 1 are:
(a) the board of commissioners of Dakota County shall have adopted a resolution
approving such treatment of the Dakota County Community Development Agency, and
such resolution shall be in full force and effect and shall not have been revoked by
Dakota County; and
(b) the members of the board of commissioners of Dakota County shall be the same
persons as the members of the board of commissioners of the Dakota County Community
Development Agency.

    Sec. 19. EMPLOYMENT SUPPORT AND INDEPENDENT LIVING SERVICES
FOR INDIVIDUALS WITH HIGH-FUNCTIONING AUTISM, ASPERGER'S
SYNDROME, NONVERBAL LEARNING DISORDERS, AND PERVASIVE
DEVELOPMENT DISORDER, NOT OTHERWISE SPECIFIED; PILOT
PROGRAM.
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them.
(b) "Communication" means the ability to effectively give and receive information
through spoken words, writing, speaking, listening, or other means of communication,
including but not limited to nonverbal expressions, gestures, or other adaptive methods.
(c) "Functional areas" means communication, interpersonal skills, mobility, self-care,
self-direction, preemployment skills, work tolerance, and independent living skills.
(d) "Independent living assessment" means an active, performance-based skill
assessment in the functional areas of communication, interpersonal skills, mobility,
self-care, self-direction, preemployment skills, and independent living skills, that provides
an analysis of the individual's ability to independently achieve certain skills and which
is performed through direct observation.
(e) "Interpersonal skills" means the ability to establish and maintain personal,
family, work, and community relationships.
(f) "Mobility" means the physical and psychological ability to move about from
place to place, including travel to and from destinations in the community for activities
of daily living, training, or work.
(g) "Natural supports" means the process of assisting an employer to expand its
capacity for training, supervising, and supporting workers with disabilities.
(h) "Ongoing employment support services" means any of the following services:
(1) facilitation of natural supports at the work site;
(2) disability awareness training for the worker, the worker's employer, supervisor,
or coworkers;
(3) services necessary to increase the worker's inclusion at the work site;
(4) job skills training at the work site;
(5) regular observation or supervision of the worker;
(6) coordination of support services;
(7) job-related safety training;
(8) job-related advocacy skills training to advance employment;
(9) training in independent living skills and support including self-advocacy, money
management and organization, grooming and personal care, communication, interpersonal
skills, problem solving, orientation and mobility, and using public transportation or
driver's training;
(10) follow-up services necessary to reinforce and stabilize employment, including
regular contact with the worker's employer, supervisor or coworkers, parents, family
members, advocates, legal representatives, other suitable professionals, and informed
advisors;
(11) training in job seeking skills; and
(12) internships or career planning to assist the individual's advancement in
meaningful employment.
(i) "Preemployment skills" means the abilities and skills to successfully apply for,
secure, and maintain competitive employment.
(j) "Self-care" means skills needed to manage one's self or living environment,
including but not limited to money management, personal health care, personal hygiene,
and safety needs, including medication management.
(k) "Self-direction" means the ability to plan, initiate, organize, or carry out
goal-directed activities or solve problems related to self-care, socialization, recreation, and
working independently.
(l) "Severe impairment to employment" means limitations experienced by persons
diagnosed with high-functioning autism, Asperger's syndrome, nonverbal learning
disorders, or pervasive development disorder, not otherwise specified, due to an extended
history of unemployment or underemployment; limited education, training, or job skills;
and physical, intellectual, or emotional characteristics that seriously impair the individual's
ability to obtain and retain permanent employment.
(m) "Work tolerance" means the ability to effectively and efficiently perform jobs
with various levels of sensory and environmental components including scent, noise,
visual stimuli, physical space, and psychological demands.
    Subd. 2. Employment support plan and outcomes. An individual participating in
the program under this section must develop an employment support plan that includes:
(1) employment goals;
(2) ongoing support services;
(3) program outcomes that focus on competitive employment in the community; and
(4) ongoing independent living services and employment supports necessary for the
individual to secure, maintain, and advance in employment that best fits the individual's
strengths and career goals.

ARTICLE 4

UNEMPLOYMENT INSURANCE

    Section 1. Minnesota Statutes 2012, section 116L.17, subdivision 4, is amended to read:
    Subd. 4. Use of funds. Funds granted by the board under this section may be used
for any combination of the following, except as otherwise provided in this section:
    (1) employment transition services such as developing readjustment plans for
individuals; outreach and intake; early readjustment; job or career counseling; testing;
orientation; assessment of skills and aptitudes; provision of occupational and labor market
information; job placement assistance; job search; job development; prelayoff assistance;
relocation assistance; and programs provided in cooperation with employers or labor
organizations to provide early intervention in the event of plant closings or substantial
layoffs; and entrepreneurial training and business consulting;
    (2) support services, including assistance to help the participant relocate to employ
existing skills; out-of-area job search assistance; family care assistance, including child
care; commuting assistance; emergency housing and rental assistance; counseling
assistance, including personal and financial; health care; emergency health assistance;
emergency financial assistance; work-related tools and clothing; and other appropriate
support services that enable a person to participate in an employment and training program
with the goal of reemployment;
    (3) specific, short-term training to help the participant enhance current skills
in a similar occupation or industry; entrepreneurial training, customized training, or
on-the-job training; basic and remedial education to enhance current skills; and literacy
and work-related English training for non-English speakers; and
    (4) long-term training in a new occupation or industry, including occupational skills
training or customized training in an accredited program recognized by one or more
relevant industries. Long-term training shall only be provided to dislocated workers
whose skills are obsolete and who have no other transferable skills likely to result in
employment at a comparable wage rate. Training shall only be provided for occupations or
industries with reasonable expectations of job availability based on the service provider's
thorough assessment of local labor market information where the individual currently
resides or is willing to relocate. This clause shall not restrict training in personal services
or other such industries.

    Sec. 2. Minnesota Statutes 2012, section 116L.17, is amended by adding a subdivision
to read:
    Subd. 11. Converting layoffs into Minnesota businesses (CLIMB). Converting
layoffs into Minnesota businesses (CLIMB) is created to assist dislocated workers in
starting or growing a business. CLIMB must offer entrepreneurial training, business
consulting, and technical assistance to dislocated workers seeking to start or grow a
business. The commissioner, in cooperation with local workforce councils, must provide
the assistance in this subdivision by:
(1) encouraging closer ties between the Small Business Development Center
network, Small Business Development Center training providers, and workforce centers,
as well as other dislocated worker program service providers; and
(2) eliminating grantee performance data disincentives that would otherwise prevent
enrollment of dislocated workers in entrepreneurship-related training.

    Sec. 3. Minnesota Statutes 2012, section 268.051, subdivision 5, is amended to read:
    Subd. 5. Tax rate for new employers. (a) Each new taxpaying employer that does
not qualify for an experience rating under subdivision 3, except new employers in a high
experience rating industry, must be assigned, for a calendar year, a tax rate the higher of
(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing
the total amount of unemployment benefits paid all applicants during the 48 calendar
months ending on June 30 of the prior calendar year by the total taxable wages of all
taxpaying employers during the same period, plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).
    (b) Each new taxpaying employer in a high experience rating industry that does not
qualify for an experience rating under subdivision 3, must be assigned, for a calendar year,
a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed
to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits
paid to all applicants from high experience rating industry employers during the 48
calendar months ending on June 30 of the prior calendar year by the total taxable wages
of all high experience rating industry employers during the same period, to a maximum
provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any
additional assessments under subdivision 2, paragraph (c).
    (c) An employer is considered to be in a high experience rating industry if:
    (1) the employer is engaged in residential, commercial, or industrial construction,
including general contractors;
    (2) the employer is engaged in sand, gravel, or limestone mining;
    (3) the employer is engaged in the manufacturing of concrete, concrete products,
or asphalt; or
    (4) the employer is engaged in road building, repair, or resurfacing, including bridge
and tunnels and residential and commercial driveways and parking lots.
(d) Regardless of any law to the contrary, a taxpaying employer must be assigned a
tax rate under this subdivision if:
(1) the employer registers for a tax account under section 268.042 and for each of
the five calendar quarters after registering files a "no wages paid" report on wage detail
under section 268.044; or had no taxable wages during the experience rating period under
subdivision 3.
(2) the employer has filed 14 consecutive quarterly "no wages paid" reports on
wage detail under section 268.044.
    (e) The commissioner must send to the new employer, by mail or electronic
transmission, a determination of tax rate. An employer may appeal the determination of
tax rate in accordance with the procedures in subdivision 6, paragraph (c).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2012, section 268.07, subdivision 3b, is amended to read:
    Subd. 3b. Limitations on applications and benefit accounts. (a) An application for
unemployment benefits is effective the Sunday of the calendar week that the application
was filed. An application for unemployment benefits may be backdated one calendar week
before the Sunday of the week the application was actually filed if the applicant requests
the backdating at the time the application is filed. An application may be backdated only if
the applicant had no employment was unemployed during the period of the backdating.
If an individual attempted to file an application for unemployment benefits, but was
prevented from filing an application by the department, the application is effective the
Sunday of the calendar week the individual first attempted to file an application.
    (b) A benefit account established under subdivision 2 is effective the date the
application for unemployment benefits was effective.
    (c) A benefit account, once established, may later be withdrawn only if:
    (1) the applicant has not been paid any unemployment benefits on that benefit
account; and
(2) a new application for unemployment benefits is filed and a new benefit account is
established at the time of the withdrawal.
    A determination or amended determination of eligibility or ineligibility issued under
section 268.101, that was sent before the withdrawal of the benefit account, remains in
effect and is not voided by the withdrawal of the benefit account.
    (d) An application for unemployment benefits is not allowed before the Sunday
following the expiration of the benefit year on a prior benefit account. Except as allowed
under paragraph (c), an applicant may establish only one benefit account each 52 calendar
weeks.

    Sec. 5. Minnesota Statutes 2012, section 268.125, subdivision 1, is amended to read:
    Subdivision 1. Additional unemployment benefits; when available. Additional
unemployment benefits are available if:
    (1) MS 2008 [Expired, 2008 c 300 s 15]
    (2)(i) at a facility that had 100 or more employees, the employer reduced operations,
resulting within a one-month period in the layoff of 50 percent or more of the facility's
work force, including reductions caused as a result of a major natural disaster declared by
the president;
    (ii) the employer has no expressed plan to resume operations that would lead to the
reemployment of those employees in the immediate future; and
    (iii) the seasonally adjusted unemployment rate in the county that the facility is
located was ten percent or more during the month of the reduction or any of the three
months before or after the month of the reduction; or
    (3) the applicant stopped working because of a lockout. The term "lockout" has the
meaning given in section 179.01, subdivision 9. This clause does not apply to professional
athletes who are locked out by a professional sports team. This clause does not apply to
individuals whose total compensation was in excess of $150,000 in the previous year.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 6. Minnesota Statutes 2012, section 268.125, subdivision 3, is amended to read:
    Subd. 3. Eligibility conditions. (a) An applicant is eligible to receive additional
unemployment benefits for any week during the applicant's benefit year if:
    (1) for any week during which benefits are available under subdivision 1, clause (1):
    (i) the applicant resides in a county that meets the requirements of subdivision 1,
clause (1), and resided in that county each week that regular unemployment benefits
were paid;
    (ii) the applicant was not paid unemployment benefits for any week in the 12 months
before the effective date of the applicant's benefit account;
    (iii) the applicant meets the same eligibility requirements that are required for
regular unemployment benefits under section 268.069; and
    (iv) MS 2008 [Expired, 2008 c 300 s 17]
    (2) (1) the applicant was laid off from employment as a result of a reduction under
subdivision 1, clause (2), or was laid off because of lack of work from that employer
during the three-month period before, or the three-month period after, the month of the
reduction under subdivision 1, clause (2);
    (3) (2) the applicant meets the same eligibility requirements that are required for
regular unemployment benefits under section 268.069;
    (4) (3) the applicant has exhausted regular unemployment benefits under section
268.07 , is not entitled to receive extended unemployment benefits under section 268.115,
and is not entitled to receive unemployment benefits under any other state or federal law
for that week; and
    (5) (4) a majority of the applicant's wage credits were from the employer that had a
reduction in operations under subdivision 1, clause (2).
(b) An applicant who stopped working because of a lockout is eligible to receive
additional unemployment benefits for any week if:
(1) the applicant meets the eligibility requirements under section 268.069;
(2) the applicant has exhausted regular unemployment benefits under section 268.07
or the law of another state;
(3) the applicant is not eligible for extended unemployment benefits or
unemployment benefits under any federal law; and
(4) the lockout is in active progress.
Section 268.085, subdivision 1, clause (2), does not apply to this paragraph.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2012, section 268.125, subdivision 4, is amended to read:
    Subd. 4. Weekly unemployment benefit amount. An applicant's weekly additional
unemployment benefit amount is the same as the applicant's weekly regular unemployment
benefit amount during the current benefit year under section 268.07.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. Minnesota Statutes 2012, section 268.125, subdivision 5, is amended to read:
    Subd. 5. Maximum amount of unemployment benefits. (a) For an applicant
who qualifies for additional unemployment benefits under subdivision 1, clause (2), the
maximum amount of additional unemployment benefits available in the applicant's benefit
year is one-half of the applicant's maximum amount of regular unemployment benefits
available under section 268.07, subdivision 2. Extended unemployment benefits paid and
unemployment benefits paid under any federal law other than regular unemployment
benefits must be deducted from the maximum amount of additional unemployment
benefits available.
(b) For an applicant who qualifies for additional unemployment benefits under
subdivision 1, clause (3), the applicant may receive additional unemployment benefits for
up to 156 weeks so long as the lockout is in active progress.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 9. [268.133] UNEMPLOYMENT BENEFITS WHILE IN
ENTREPRENEURIAL TRAINING.
Unemployment benefits are available to dislocated workers participating in the
converting layoffs into Minnesota businesses (CLIMB) program under section 116L.17,
subdivision 11. Applicants participating in CLIMB are considered in reemployment
assistance training under section 268.035, subdivision 21c. All requirements under section
268.069, subdivision 1, must be met, except the commissioner may waive:
(1) the earnings deductible provisions in section 268.085, subdivision 5; and
(2) the 32 hours of work limitation in section 268.085, subdivision 2, clause (6). A
maximum of 500 applicants may receive a waiver at any given time.

    Sec. 10. Minnesota Statutes 2012, section 268.136, subdivision 1, is amended to read:
    Subdivision 1. Shared work agreement plan requirements. (a) An employer
may submit a proposed shared work plan for an employee group to the commissioner
for approval in a manner and format set by the commissioner. The proposed agreement
shared work plan must include:
(1) a certified statement that the normal weekly hours of work of all of the proposed
participating employees were full time or regular part time but are now reduced, or will be
reduced, with a corresponding reduction in pay, in order to prevent layoffs;
(2) the name and Social Security number of each participating employee;
(3) the number of layoffs that would have occurred absent the employer's ability to
participate in a shared work plan;
(4) a certified statement of when that each participating employee was first hired by
the employer, which must be at least one year before the proposed agreement shared work
plan is submitted and is not a seasonal, temporary, or intermittent worker;
(4) (5) the hours of work each participating employee will work each week for the
duration of the agreement shared work plan, which must be at least 20 one-half the normal
weekly hours and but no more than 32 hours per week, except that the agreement plan
may provide for a uniform vacation shutdown of up to two weeks;
(6) a certified statement that any health benefits and pension benefits provided by
the employer to participating employees will continue to be provided under the same
terms and conditions as though the participating employees' hours of work each week had
not been reduced;
(7) a certified statement that the terms and implementation of the shared work plan is
consistent with the employer's obligations under state and federal law;
(8) an acknowledgement that the employer understands that unemployment benefits
paid under a shared work plan will be used in computing the future tax rate of a taxpaying
employer or charged to the reimbursable account of a nonprofit or government employer;
(5) (9) the proposed duration of the agreement shared work plan, which must be
at least two months and not more than one year, although an agreement a plan may be
extended for up to an additional year upon approval of the commissioner;
(6) (10) a starting date beginning on a Sunday at least 15 calendar days after the date
the proposed agreement shared work plan is submitted; and
(7) (11) a signature of an owner or officer of the employer who is listed as an owner
or officer on the employer's account under section 268.045.
(b) An agreement may not be approved for an employer that:
(1) has any unemployment tax or reimbursements, including any interest, fees,
or penalties, due but unpaid; or
(2) has the maximum experience rating provided for under section 268.051,
subdivision 3.

    Sec. 11. Minnesota Statutes 2012, section 268.136, subdivision 2, is amended to read:
    Subd. 2. Agreement Approval by commissioner. (a) The commissioner must
promptly review a proposed agreement shared work plan and notify the employer, by mail
or electronic transmission, within 15 days of receipt, whether the proposal satisfies the
requirements of this section and has been approved. If the proposal does not comply
with this section, the commissioner must specifically state why the proposal is not in
compliance. If a proposed agreement complies with this section shared work plan has
been approved, it must be implemented according to its terms.
(b) The commissioner may reject an agreement not approve a proposed shared work
plan if the commissioner has cause to believe the proposal is not was submitted for the a
purpose of other than preventing layoffs due to lack of work.
(c) The commissioner may not approve a proposed shared work plan if the employer
has any unemployment tax or reimbursements, including any interest, fees, or penalties,
due but unpaid.
(d) A shared work plan that has been approved by the commissioner is considered
a contract that is binding on the employer and the department. This contract may be
canceled or modified under subdivision 5.

    Sec. 12. Minnesota Statutes 2012, section 268.136, is amended by adding a subdivision
to read:
    Subd. 2a. Notice to participating employee. The employer must provide written
notification to each participating employee that the employer has submitted a proposed
shared work plan. The notification must be provided to the employee no later than the
time the commissioner notifies the employer that a proposed shared work plan has been
approved. The notification must inform the employee of the proposed terms of the
shared work plan along with notice to the employee of the employee's right to apply for
unemployment benefits.

    Sec. 13. Minnesota Statutes 2012, section 268.136, subdivision 3, is amended to read:
    Subd. 3. Applicant requirements. (a) An applicant, in order to be paid
unemployment benefits under this section, must meet all of the requirements under section
268.069, subdivision 1 . The following provisions of section 268.085 do not apply to an
applicant under this section in an approved shared work plan:
(1) the deductible earnings provision of section 268.085, under subdivision 5;
(2) the restriction under section 268.085, subdivision 6 2, clause (6), if the applicant
works exactly 32 hours in a week;
(3) the requirement of being available for suitable employment under subdivision 1,
clause (4), but only if the applicant is (i) available for the normal hours of work per week
with the shared work employer, or (ii) is in a training program when not working; and
(4) the requirement of actively seeking suitable employment under subdivision
1, clause (5).
(b) An applicant is ineligible for unemployment benefits under this section for
any week, if:
(1) the applicant works more than 32 hours in a week in employment with one or
more employer; or.
(2) the applicant works more hours in a week for the shared work employer than
the reduced weekly hours provided for in the agreement.

    Sec. 14. Minnesota Statutes 2012, section 268.136, subdivision 4, is amended to read:
    Subd. 4. Amount of unemployment benefits available. (a) The weekly benefit
amount and maximum amount of unemployment benefits available are computed
according to section 268.07, except that an applicant is paid the amount of benefits
available is a reduced amount in direct proportion to the reduction in hours set out in the
shared work plan from the normal weekly hours.
(b) Regardless of paragraph (a), if the applicant works more hours in a week for the
shared work employer than the reduced weekly hours provided for in the shared work
plan, the amount of unemployment benefits available is a reduced amount in direct
proportion to the reduction in hours actually worked from the normal weekly hours.
(c) If an applicant works fewer hours in a week for the shared work employer than
set out in the shared work plan, the amount of unemployment benefits are available in
accordance with paragraph (a).

    Sec. 15. Minnesota Statutes 2012, section 268.136, subdivision 5, is amended to read:
    Subd. 5. Cancellation; modification. (a) An employer may cancel an agreement a
shared work plan at any time upon seven calendar days' notice to the commissioner in a
manner and format prescribed by the commissioner. The cancellation must be signed by
an owner or officer of the employer.
(b) An employer may request that the commissioner allow modification of the shared
work plan as to the hours of work each participating employee will work each week. The
request must be sent in a manner and form prescribed by the commissioner. The request
must be signed by an owner or officer of the employer. The commissioner must notify the
employer as soon as possible if the modification is allowed.
(b) (c) An employer that cancels an agreement or requests modification of a shared
work plan must provide written notice to each participating employee in the group of the
cancellation or requested modification at the time notice is sent to the commissioner.
(c) (d) If an employer cancels an agreement a shared work plan before the expiration
date provided for in subdivision 1, a new agreement shared work plan may not be entered
into with approved for that employer under this section for at least 60 calendar days.
(d) (e) The commissioner may immediately cancel any agreement shared work plan
if the commissioner determines the agreement plan was based upon false information or
the employer is in breach has failed to adhere to the terms of the contract shared work plan.
The commissioner must immediately send written notice of cancellation to the employer.
An employer that receives notice of cancellation by the commissioner must provide
written notice to each participating employer in the group employee of the cancellation.

    Sec. 16. Minnesota Statutes 2012, section 268.199, is amended to read:
268.199 CONTINGENT ACCOUNT.
    (a) There is created in the state treasury a special account, to be known as the
contingent account, that does not lapse nor revert to any other fund or account. This
account consists of all money collected under this chapter that is required to be placed
in this account and any interest earned on the account. All money in this account is
appropriated and available for administration of the Minnesota unemployment insurance
program unless otherwise appropriated by session law. The money deposited in the
account is transferred to the general fund.
    (b) All money in this account must be deposited, administered, and disbursed in the
same manner and under the same conditions and requirements as is provided by law for
the other special accounts in the state treasury.
EFFECTIVE DATE.This section is effective July 1, 2013.

    Sec. 17. Minnesota Statutes 2012, section 268.23, is amended to read:
268.23 SEVERABLE.
    In the event that If the United States Department of Labor determines that any
provision of the Minnesota Unemployment Insurance Law, or any other provision of
Minnesota Statutes relating to the unemployment insurance program, is not in conformity
with, or is inconsistent with, the requirements of federal law, the provision has no force
or effect; but. If only a portion of the provision, or the application to any person or
circumstances, is held determined not in conformity, or determined inconsistent, the
remainder of the provision and the application of the provision to other persons or
circumstances are not affected.

    Sec. 18. Laws 2012, chapter 201, article 1, section 3, the effective date, is amended to
read:
EFFECTIVE DATE.This section is effective July 1, 2012, except the amendments
to paragraph (d) are effective for penalties imposed credited on or after July 1, 2013.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 19. UNEMPLOYMENT INSURANCE EMPLOYER TAX REDUCTION.
(a) Notwithstanding Minnesota Statutes, section 268.051, subdivision 2, if, on
September 30, 2013, the balance in the Minnesota Unemployment Trust Fund is more than
$800,000,000, the base tax rate for calendar year 2014 is 0.1 percent, and there will be no
additional assessment assigned. If, on September 30, 2014, the balance in the Minnesota
Unemployment Trust Fund is more than $900,000,000, the base tax rate for calendar year
2015 is 0.1 percent, and there will be no additional assessment assigned.
(b) This section expires December 31, 2015.

    Sec. 20. COMMISSIONER AUTHORIZED TO REQUEST SHARED WORK
FUNDS.
The commissioner of employment and economic development is authorized to
request federal funding for Minnesota's shared work unemployment benefit program
under Minnesota Statutes, section 268.136. Federal funding is available under the Middle
Class Tax Relief and Job Creation Act of 2012, Public Law 112-96. Federal funding
provided under that act for the shared work program must be immediately deposited in
the Minnesota Unemployment Insurance Trust Fund. The exception under Minnesota
Statutes, section 268.047, subdivision 2, clause (10), does not apply to the federal money.
EFFECTIVE DATE.This section is effective the day following final enactment.

ARTICLE 5

MISCELLANEOUS

    Section 1. Minnesota Statutes 2012, section 154.001, is amended by adding a
subdivision to read:
    Subd. 4. Comprehensive examination. "Comprehensive examination" means all
parts of a test administered by the board, including but not limited to written, oral, and
practical components.

    Sec. 2. Minnesota Statutes 2012, section 154.003, is amended to read:
154.003 FEES.
    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the
board, shall be paid to the board. The board shall deposit the fees in the general fund
in the state treasury.
    (b) The board shall charge the following fees:
    (1) examination and certificate, registered barber, $85;
(2) retake of written examination, registered barber, $10;
    (2) (3) examination and certificate, apprentice, $80;
(4) retake of written examination, apprentice, $10;
    (3) (5) examination, instructor, $180;
    (4) (6) certificate, instructor, $65;
    (5) (7) temporary teacher or apprentice permit, $80;
    (6) (8) renewal of license, registered barber, $80;
    (7) (9) renewal of license, apprentice, $70;
    (8) (10) renewal of license, instructor, $80;
    (9) (11) renewal of temporary teacher permit, $65;
    (10) (12) student permit, $45;
(13) renewal of student permit, $25;
    (11) (14) initial shop registration, $85;
    (12) (15) initial school registration, $1,030;
    (13) (16) renewal shop registration, $85;
    (14) (17) renewal school registration, $280;
    (15) (18) restoration of registered barber license, $95;
    (16) (19) restoration of apprentice license, $90;
    (17) (20) restoration of shop registration, $105;
    (18) (21) change of ownership or location, $55;
    (19) (22) duplicate license, $40; and
    (20) (23) home study course, $95 $75;
(24) letter of license verification, $25; and
(25) reinspection, $100.

    Sec. 3. Minnesota Statutes 2012, section 154.02, is amended to read:
154.02 WHAT CONSTITUTES BARBERING.
Any one or any combination of the following practices when done upon the head
and neck for cosmetic purposes and not for the treatment of disease or physical or mental
ailments and when done for payment directly or indirectly or without payment for the
public generally constitutes the practice of barbering within the meaning of sections
154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26:
to shave the face or neck, trim the beard, cut or bob the hair of any person of either sex
for compensation or other reward received by the person performing such service or any
other person; to give facial and scalp massage or treatments with oils, creams, lotions,
or other preparations either by hand or mechanical appliances; to singe, shampoo the
hair, or apply hair tonics; or to apply cosmetic preparations, antiseptics, powders, oils,
clays, or lotions to hair, scalp, face, or neck.

    Sec. 4. Minnesota Statutes 2012, section 154.05, is amended to read:
154.05 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A
REGISTERED BARBER.
A person is qualified to receive a certificate of registration as a registered barber:
(1) who is qualified under the provisions of section 154.06;
(2) who has practiced as a registered apprentice for a period of 12 months under the
immediate personal supervision of a registered barber; and
(3) who has passed an examination conducted by the board to determine fitness to
practice barbering.
An apprentice applicant for a certificate of registration to practice as a registered
barber who fails to pass the comprehensive examination conducted by the board and
who fails to pass a onetime retake of the written examination, shall continue to practice
as an apprentice for an additional two months 300 hours before being again entitled to
take eligible to retake the comprehensive examination for a registered barber as many
times as necessary to pass.

    Sec. 5. Minnesota Statutes 2012, section 154.06, is amended to read:
154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A
REGISTERED APPRENTICE.
A person is qualified to receive a certificate of registration as a registered apprentice:
(1) who has completed at least ten grades of an approved school;
(2) who has graduated from a barber school approved by the a barber board within
the previous four years; and
(3) who has passed an examination conducted by the board to determine fitness to
practice as a registered apprentice. An applicant who graduated from a barber school
approved by a barber board more than four years prior to application is required to
complete a further course of study of at least 500 hours.
An applicant for a an initial certificate of registration to practice as an apprentice,
who fails to pass the comprehensive examination conducted by the board, and who fails to
pass a onetime retake of the written examination, is required to complete a further course
of study of at least 500 hours, of not more than eight hours in any one working day, in a
barber school approved by the board before being eligible to retake the comprehensive
examination as many times as necessary to pass.
A certificate of registration of an apprentice shall be valid for four years from the
date the certificate of registration is issued by the board and shall not be renewed for a fifth
year. During the four-year period the certificate of registration shall remain in full force
and effect only if the apprentice complies with all the provisions of sections 154.001,
154.002 , 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, including
the payment of an annual fee, and the rules of the board.
If a registered apprentice, during the term in which the certificate of registration is in
effect, enters full-time active duty in the armed forces of the United States of America,
the expiration date of the certificate of registration shall be extended by a period of time
equal to the period or periods of active duty.
If a registered apprentice graduates from a barber school approved by the board and
is issued a certificate of registration while incarcerated by the Department of Corrections
of the Federal Bureau of Prisons, the expiration date of the certificate of registration shall
be extended one time so that it expires four years from the date of first release from a
correctional facility.

    Sec. 6. Minnesota Statutes 2012, section 154.065, subdivision 2, is amended to read:
    Subd. 2. Qualifications. A person is qualified to receive a certificate of registration
as an instructor of barbering who:
(1) is a graduate from of an approved high school, or its equivalent, as determined
by examination by the Department of Education;
(2) has qualified for a teacher's or instructor's vocational certificate; successfully
completed vocational instructor training from a board-approved program or accredited
college or university program that includes the following courses or their equivalents as
determined by the board:
(i) introduction to career and technical education training;
(ii) philosophy and practice of career and technical education;
(iii) course development for career and technical education;
(iv) instructional methods for career and technical education; and
(v) human relations;
(3) is currently a registered barber and has at least three years experience as a
registered barber in this state, or its equivalent as determined by the board; and
(4) has passed an examination conducted by the board to determine fitness to
instruct in barbering.
A certificate of registration under this section is provisional until a teacher's or
instructor's vocational certificate has been issued by the Department of Education. A
provisional certificate of registration is valid for 30 days and is not renewable.

    Sec. 7. Minnesota Statutes 2012, section 154.07, subdivision 1, is amended to read:
    Subdivision 1. Admission requirements; course of instruction. No barber school
shall be approved by the board unless it requires, as a prerequisite to admission, ten grades
of an approved school or its equivalent, as determined by an examination conducted by
the commissioner of education, which shall issue a certificate that the student has passed
the required examination, and unless it requires, as a prerequisite to graduation, a course
of instruction of at least 1,500 hours, of not more than eight hours in any one working day.
The course of instruction must include the following subjects: scientific fundamentals
for barbering; hygiene; practical study of the hair, skin, muscles, and nerves; structure of
the head, face, and neck; elementary chemistry relating to sterilization and antiseptics;
diseases of the skin, hair, and glands; massaging and manipulating the muscles of the face
and neck; haircutting; shaving; trimming the beard; bleaching, tinting and dyeing the hair;
and the chemical waving and straightening of hair.

    Sec. 8. Minnesota Statutes 2012, section 154.08, is amended to read:
154.08 APPLICATION; FEE.
Each applicant for an examination shall:
(1) make application to the Board of Barber Examiners on blank forms prepared and
furnished by it, the application to contain proof under the applicant's oath of the particular
qualifications and identity of the applicant;
(2) furnish to the board two five-inch x three-inch signed photographs of the
applicant, one to accompany the application and one to be returned to the applicant,
to be presented to the board when the applicant appears for examination provide all
documentation required in support of the application; and
(3) pay to the board the required fee; and
(4) present a government-issued photo identification as proof of identity upon
application and when the applicant appears for examination.

    Sec. 9. Minnesota Statutes 2012, section 154.09, is amended to read:
154.09 EXAMINATIONS, CONDUCT AND SCOPE.
The board shall conduct examinations of applicants for certificates of registration to
practice as barbers and apprentices not more than six times each year, at such time and
place as the board may determine. Additional written examinations may be scheduled
by the board and conducted by board staff as designated by the board. The proprietor
of a barber school must file an affidavit shall be filed with the board by the proprietor
of a barber school that of hours completed by students applying to take the apprentice
examination have completed. Students must complete 1,500 hours in a barber school
registered with approved by the board.
The examination of applicants for certificates of registration as barbers and
apprentices shall include both a practical demonstration and a written and oral test and
embrace. The examination must cover the subjects usually taught in barber schools
registered with the board.

    Sec. 10. Minnesota Statutes 2012, section 154.10, subdivision 1, is amended to read:
    Subdivision 1. Application. Each applicant for an initial certificate of registration
shall make application to the board on forms prepared and furnished by the board with
proof under oath of the particular qualifications and identity of each applicant. This
application shall be accompanied by a fee prescribed by law or the rules of the board to
defray the expenses of making investigation and for the examination of such applicant.

    Sec. 11. Minnesota Statutes 2012, section 154.11, subdivision 1, is amended to read:
    Subdivision 1. Examination of nonresidents. A person who meets all of the
requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01 to
154.161 , 154.19 to 154.21, and 154.24 to 154.26 and either has a license, certificate
of registration, or an equivalent as a practicing barber or instructor of barbering from
another state or country which in the discretion of the board has substantially the same
requirements for registering barbers and instructors of barbering as required by sections
154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 or
can prove by sworn affidavits practice as a barber or instructor of barbering in another
state or country for at least five years immediately prior to making application in this state,
shall, upon payment of the required fee, be issued a certificate of registration without
examination, provided that the other state or country grants the same privileges to holders
of Minnesota certificates of registration.

    Sec. 12. Minnesota Statutes 2012, section 154.12, is amended to read:
154.12 EXAMINATION OF NONRESIDENT APPRENTICES.
A person who meets all of the requirements for registration as a barber in sections
154.001 , 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and
who has a license, a certificate of registration, or its equivalent as an apprentice in a state
or country which in the discretion of the board has substantially the same requirements for
registration as an apprentice as is provided by sections 154.001, 154.002, 154.003, 154.01
to 154.161, 154.19 to 154.21, and 154.24 to 154.26, shall, upon payment of the required
fee, be issued a certificate of registration without examination, provided that the other state
or country grants the same privileges to holders of Minnesota certificates of registration.

    Sec. 13. Minnesota Statutes 2012, section 154.14, is amended to read:
154.14 CERTIFICATES OF REGISTRATION AND TEMPORARY PERMITS
TO BE DISPLAYED.
Every holder of a certificate of registration as a registered barber or registered
apprentice or temporary apprentice permit shall display it the certificate or permit, with a
photograph of the certificate or permit holder that meets the same standards as required for
a United States passport, in a conspicuous place adjacent to or near the chair where work
is performed. Every holder of a certificate of registration as an instructor of barbering or
as a barber school, of a temporary permit as an instructor of barbering, shall display the
certificate or permit, with a photograph of the certificate or permit holder that meets the
same standards as required for a United States passport, in a conspicuous place accessible
to the public. Every holder of a certificate of registration as a barber school and of a shop
registration card shall display it in a conspicuous place accessible to the public.

    Sec. 14. Minnesota Statutes 2012, section 154.15, subdivision 2, is amended to read:
    Subd. 2. Effect of failure to renew. A registered barber or a registered apprentice
who has not renewed a certificate of registration may be reinstated within one year four
years of such failure to renew without examination upon the payment of the required
restoration fee for each year the certificate is lapsed. A registered instructor of barbering
who has not renewed a certificate of registration may be reinstated within three four years
of such failure to renew without examination upon payment of the required restoration fee
for each year the certificate is lapsed. All registered barbers and registered apprentices
who allow their certificates of registration to lapse for more than one year four years shall
be required to reexamine before being issued a certificate of registration. All registered
instructors of barbering who allow their certificates of registration to lapse for more
than three four years shall be required to reexamine before being issued a certificate of
registration. A barber shop owner who has not renewed the barber shop certificate for more
than one year may reinstate the barber shop registration upon payment of the restoration
fee for each year the shop card was lapsed. If lapsed or unlicensed status is discovered by
the barber inspector during inspection, penalties under section 154.162 shall apply.

    Sec. 15. [154.162] ADMINISTRATIVE PENALTIES.
The board shall impose and collect the following penalties:
(1) missing or lapsed shop registration discovered upon inspection; penalty imposed
on shop owner: $500;
(2) unlicensed or unregistered apprentice or registered barber, first occurrence
discovered upon inspection; penalty imposed on shop owner and unlicensed or
unregistered individual: $500; and
(3) unlicensed or unregistered apprentice or registered barber, second occurrence
discovered upon inspection; penalty imposed on shop owner and unlicensed or
unregistered individual: $1,000.

    Sec. 16. Minnesota Statutes 2012, section 154.26, is amended to read:
154.26 MUNICIPALITIES MAY REGULATE HOURS; REGULATION
AUTHORIZED.
The governing body of any city of this state may regulate by ordinance the opening
and closing hours of barber shops within its municipal limits in addition to all other
applicable local regulations.

    Sec. 17. [154.27] MISREPRESENTATION.
No person shall represent themselves to the public, solicit business, advertise as a
licensed barber or as operating a licensed barber shop, use the title or designation of barber
or barber shop, or engage in any other act or practice that would create the impression to
members of the public that the person is a licensed barber or is operating a licensed barber
shop unless the person holds the appropriate license under this chapter.

    Sec. 18. [154.28] SYMBOLS; BARBER POLE.
No person shall place a barber pole in a location that would create or tend to create
the impression to the public that the business is a barber shop unless the operator holds a
valid license under this chapter. For the purposes of this section, "barber pole" means a
red and white or red, white, and blue striped vertical cylinder commonly recognized as
a barber pole.

    Sec. 19. Minnesota Statutes 2012, section 155A.23, subdivision 3, is amended to read:
    Subd. 3. Cosmetology. "Cosmetology" is the practice of personal services, for
compensation, for the cosmetic care of the hair, nails, and skin. These services include
cleaning, conditioning, shaping, reinforcing, coloring and enhancing the body surface in
the areas of the head, scalp, face, arms, hands, legs, and feet, and trunk of the body, except
where these services are performed by a barber under sections 154.001, 154.002, 154.003,
154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26.

    Sec. 20. Minnesota Statutes 2012, section 155A.23, subdivision 8, is amended to read:
    Subd. 8. Manager. A "manager" is any person who conducts, operates, or manages a
cosmetology school or salon and who also instructs in or provides any services, as defined
in subdivision 3. A school manager must maintain an active salon manager's license.

    Sec. 21. Minnesota Statutes 2012, section 155A.23, subdivision 11, is amended to read:
    Subd. 11. Instructor. An "instructor" is any person employed by a school to prepare
and present the theoretical and practical education of cosmetology to persons who seek to
practice cosmetology. An instructor must maintain an active operator or manager's license
in the area in which the instructor holds an instructor's license.

    Sec. 22. Minnesota Statutes 2012, section 155A.25, subdivision 1a, is amended to read:
    Subd. 1a. Schedule. The fee schedule for licensees is as follows for licenses issued
after June 30, 2010, and prior to July 1, 2013:
(a) Three-year license fees:
(1) cosmetologist, nail technician manicurist, or esthetician:
(i) $90 for each initial license and a $40 nonrefundable initial license application fee,
for a total of $130; and
(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for
a total of $75;
(2) instructor or manager:
(i) $120 for each initial license and a $40 nonrefundable initial license application
fee, for a total of $160; and
(ii) $90 for each renewal and a $15 nonrefundable renewal application fee, for a
total of $105;
(3) salon:
(i) $130 for each initial license and a $100 nonrefundable initial license application
fee, for a total of $230; and
(ii) $100 for each renewal and a $50 nonrefundable renewal application fee, for a
total of $150; and
(4) school:
(i) $1,500 for each initial license and a $1,000 nonrefundable initial license
application fee, for a total of $2,500; and
(ii) $1,500 for each renewal and a $500 nonrefundable renewal application fee,
for a total of $2,000.
(b) Penalties:
(1) reinspection fee, variable;
(2) manager and owner with lapsed practitioner found on inspection, $150 each;
(3) lapsed practitioner or instructor found on inspection, $200;
(4) lapsed salon found on inspection, $500;
(5) lapsed school found on inspection, $1,000;
(6) failure to display current license, $100;
(7) failure to dispose of single-use equipment, implements, or materials as provided
under section 155A.355, paragraph (a), $500;
(8) use of prohibited razor-type callus shavers, rasps, or graters under section
155A.355, $500;
(9) performing manicuring or cosmetology services in esthetician salon, or
performing esthetician or cosmetology services in manicure salon, $500;
(10) owner and manager allowing an operator to work as an independent contractor,
$200;
(11) operator working as an independent contractor, $100;
(12) refusal or failure to cooperate with an inspection, $500;
(3) (13) expired cosmetologist, manicurist, esthetician, manager, school manager,
and instructor license, $45; and
(4) (14) expired salon or school license, $50.
(c) Administrative fees:
(1) certificate of identification, $20;
(2) name change, $20;
(3) letter of license verification, $30;
(4) duplicate license, $20;
(5) processing fee, $10;
(6) special event permit, $75 per year; and
(7) registration of hair braiders, $20 per year.

    Sec. 23. Minnesota Statutes 2012, section 155A.25, subdivision 4, is amended to read:
    Subd. 4. License expiration date. The board shall, in a manner determined by the
board and without the need for rulemaking under chapter 14, phase in changes to initial
and renewal license expiration dates so that by January 1, 2014:
(1) individual licenses expire on the last day of the licensee's birth month of the
year due; and
(2) salon and school licenses expire on the last day of the month of initial licensure
of the year due.

    Sec. 24. Minnesota Statutes 2012, section 155A.27, subdivision 4, is amended to read:
    Subd. 4. Testing. All theory, practical, and Minnesota law and rule testing must
be done by a board-approved provider. Appropriate standardized tests shall be used and
shall include subject matter relative to the application of Minnesota law. In every case,
the primary consideration shall be to safeguard the health and safety of consumers by
determining the competency of the applicants to provide the services indicated.

    Sec. 25. Minnesota Statutes 2012, section 155A.27, subdivision 10, is amended to read:
    Subd. 10. Nonresident licenses. (a) A nonresident cosmetologist, manicurist, or
esthetician may be licensed in Minnesota if the individual has completed cosmetology
school in a state or country with the same or greater school hour requirements, has an
active license in that state or country, and has passed a board-approved theory and
practice-based examination, the Minnesota-specific written operator examination for
cosmetologist, manicurist, or esthetician. If a test is used to verify the qualifications of
trained cosmetologists, the test should be translated into the nonresident's native language
within the limits of available resources. Licenses shall not be issued under this subdivision
for managers or instructors.
(b) If an individual has less than the required number of school hours, the individual
must have had a current active license in another state or country for at least three
years and have passed a board-approved theory and practice-based examination, or
the Minnesota-specific written operator examination for cosmetologist, manicurist, or
esthetician. If a test is used to verify the qualifications of trained cosmetologists, the test
should be translated into the nonresident's native language within the limits of available
resources. Licenses must not be issued under this subdivision for managers or instructors.
(c) Applicants claiming training and experience in a foreign country shall supply
official English-language translations of all required documents from a board-approved
source.

    Sec. 26. Minnesota Statutes 2012, section 155A.29, subdivision 2, is amended to read:
    Subd. 2. Requirements. (a) The conditions and process by which a salon is licensed
shall be established by the board by rule. In addition to those requirements, no license
shall be issued unless the board first determines that the conditions in clauses (1) to (5)
have been satisfied:
(1) compliance with all local and state laws, particularly relating to matters of
sanitation, health, and safety;
(2) the employment of a manager, as defined in section 155A.23, subdivision 8;
(3) inspection and licensing prior to the commencing of business;
(4) (3) if applicable, evidence of compliance with section 176.182; and
(5) (4) evidence of continued professional liability insurance coverage of at least
$25,000 for each claim and $50,000 total coverage for each policy year for each operator.
(b) A licensed esthetician or manicurist who complies with the health, safety,
sanitation, inspection, and insurance rules promulgated by the board to operate a salon
solely for the performance of those personal services defined in section 155A.23,
subdivision 5 , in the case of an esthetician, or subdivision 7, in the case of a manicurist.

    Sec. 27. Minnesota Statutes 2012, section 155A.30, is amended by adding a
subdivision to read:
    Subd. 11. Instruction requirements. (a) Instruction may be offered for no more
than ten hours per day per student.
(b) Instruction must be given within a licensed school building. Online instruction is
permitted for board-approved theory-based classes. Practice-based classes must not be
given online.

    Sec. 28. [155A.355] PROHIBITED USES.
(a) Single-use equipment, implements, or materials that are made or constructed of
paper, wood, or other porous materials must only be used for one application or client
service. Presence of used articles in the work area is prima facie evidence of reuse.
Failure to dispose of the materials in this paragraph is punishable by penalty under section
155A.25, subdivision 1a, paragraph (b), clause (7).
(b) Razor-type callus shavers, rasps, or graters designed and intended to cut growths
of skin such as corns and calluses, including but not limited to credo blades, are prohibited.
Presence of these articles in the work area is prima facie evidence of use and may be
punishable by penalty in section 155A.25, subdivision 1a, paragraph (b), clause (8);
(c) Licensees must not use any of the following substances or products in performing
cosmetology services:
(1) methyl methacrylate liquid monomers, also known as MMA; and
(2) fumigants, including but not limited to formalin tablets or formalin liquids.

    Sec. 29. [179.90] OFFICE OF COLLABORATION AND DISPUTE
RESOLUTION.
The commissioner of mediation services shall establish an Office of Collaboration
and Dispute Resolution within the bureau. The office must:
(1) promote the broad use of community mediation in the state, ensuring that all areas
of the state have access to services by providing grants to private nonprofits entities certified
by the state court administrator under chapter 494 that assist in resolution of disputes;
(2) assist state agencies, offices of the executive, legislative, and judicial branches,
and units of local government in improving collaboration and dispute resolution;
(3) support collaboration and dispute resolution in the public and private sector by
providing technical assistance and information on best practices and new developments in
dispute resolution options;
(4) educate the public and governmental entities on dispute resolution options; and
(5) promote and utilize collaborative dispute resolution models and processes based
on documented best practices including, but not limited to, the Minnesota Solutions model:
(i) establishing criteria and procedures for identification and assessment of dispute
resolution projects;
(ii) designating projects and appointing impartial convenors by the commissioner
or the commissioner's designee;
(iii) forming multidisciplinary conflict resolution teams; and
(iv) utilizing collaborative techniques, processes, and standards through facilitated
meetings until consensus among parties is reached in resolving a dispute.

    Sec. 30. [179.91] GRANTS.
    Subdivision 1. Authority. The commissioner of mediation services shall to the
extent funds are appropriated for this purpose, make grants to private nonprofit community
mediation entities certified by the state court administrator under chapter 494 that assist
in resolution of disputes. The commissioner shall establish a grant review committee to
assist in the review of grant applications and the allocation of grants under this section.
    Subd. 2. Eligibility. To be eligible for a grant under this section, a nonprofit
organization must meet the requirements of section 494.05, subdivision 1, clauses (1),
(2), (4), and (5).
    Subd. 3. Conditions and exclusions. A nonprofit entity receiving a grant must
agree to comply with guidelines adopted by the state court administrator under section
494.015, subdivision 1. Sections 16B.97 and 16B.98 and policies adopted under those
sections apply to grants under this section. The exclusions in section 494.03 apply to
grants under this section.
    Subd. 4. Reporting. Grantees must report data required under chapter 494 to
evaluate quality and outcomes.

    Sec. 31. Minnesota Statutes 2012, section 326A.04, subdivision 2, is amended to read:
    Subd. 2. Timing. (a) Certificates must be initially issued and renewed for periods of
not more than three years annually but in any event must expire on December 31 in the year
prescribed by the board by rule. Applications for certificates must be made in the form, and
in the case of applications for renewal between the dates, specified by the board in rule.
The board shall grant or deny an application no later than 90 days after the application is
filed in proper form. If the applicant seeks the opportunity to show that issuance or renewal
of a certificate was mistakenly denied, or if the board is unable to determine whether it
should be granted or denied, the board may issue to the applicant a provisional certificate
that expires 90 days after its issuance, or when the board determines whether or not to
issue or renew the certificate for which application was made, whichever occurs first.
(b) Certificate holders who do not provide professional services and do not use the
certified public accountant designation in any manner are not required to renew their
certificates provided they have notified the board as provided in board rule and comply
with the requirements for nonrenewal as specified in board rule.
(c) Applications for renewal of a certificate that are complete and timely filed with
the board and are not granted or denied by the board before January 1 are renewed on a
provisional basis as of January 1 and for 90 days thereafter, or until the board grants or
denies the renewal of the certificate, whichever occurs first, provided the licensee meets
the requirements in this chapter and rules adopted by the board.
EFFECTIVE DATE.This section is effective for licenses issued or renewed after
January 1, 2014.

    Sec. 32. Minnesota Statutes 2012, section 326A.04, subdivision 3, is amended to read:
    Subd. 3. Residents of other states. (a) With regard to an applicant who must
obtain a certificate in this state because the applicant does not qualify under the substantial
equivalency standard in section 326A.14, subdivision 1, the board shall issue a certificate
to a holder of a certificate, license, or permit issued by another state upon a showing that:
(1) the applicant passed the examination required for issuance of a certificate in
this state;
(2) the applicant had four years of experience of the type described in section
326A.03, subdivision 6 , paragraph (b), if application is made on or after July 1, 2006,
or section 326A.03, subdivision 8, if application is made before July 1, 2006; or the
applicant meets equivalent requirements prescribed by the board by rule, after passing
the examination upon which the applicant's certificate was based and within the ten years
immediately preceding the application;
(3) if the applicant's certificate, license, or permit was issued more than four years
prior to the application for issuance of an initial certificate under this subdivision, that the
applicant has fulfilled the requirements of continuing professional education that would
have been applicable under subdivision 4; and
(4) the applicant has met the qualifications prescribed by the board by rule.
(b) A certificate holder licensed by another state who establishes a principal place
of business in this state shall request the issuance of a certificate from the board prior to
establishing the principal place of business. The board shall issue a certificate to the person
if the person's individual certified public accountant qualifications, upon verification, are
substantially equivalent to the certified public accountant licensure requirements of this
chapter or the person meets equivalent requirements as the board prescribes by rule.
Residents of this state who provide professional services in this state at an office location
in this state shall be considered to have their principal place of business in this state.

    Sec. 33. Minnesota Statutes 2012, section 326A.04, subdivision 5, is amended to read:
    Subd. 5. Fee. (a) The board shall charge a fee for each application for initial
issuance or renewal of a certificate under this section as provided in paragraph (b).
(b) The board shall charge the following fees:
(1) initial issuance of certificate, $150;
(2) renewal of certificate with an active status, $100 per year;
(3) initial CPA firm permits, except for sole practitioners, $100;
(4) renewal of CPA firm permits, except for sole practitioners and those firms
specified in clause (17), $35 per year;
(5) initial issuance and renewal of CPA firm permits for sole practitioners, except for
those firms specified in clause (17), $35 per year;
(6) annual late processing delinquency fee for permit, certificate, or registration
renewal applications not received prior to expiration date, $50;
(7) copies of records, per page, 25 cents;
(8) registration of noncertificate holders, nonlicensees, and nonregistrants in
connection with renewal of firm permits, $45 per year;
(9) applications for reinstatement, $20;
(10) initial registration of a registered accounting practitioner, $50;
(11) initial registered accounting practitioner firm permits, $100;
(12) renewal of registered accounting practitioner firm permits, except for sole
practitioners, $100 per year;
(13) renewal of registered accounting practitioner firm permits for sole practitioners,
$35 per year;
(14) CPA examination application, $40;
(15) CPA examination, fee determined by third-party examination administrator;
(16) renewal of certificates with an inactive status, $25 per year; and
(17) renewal of CPA firm permits for firms that have one or more offices located in
another state, $68 per year.

    Sec. 34. Minnesota Statutes 2012, section 326A.04, subdivision 7, is amended to read:
    Subd. 7. Certificates issued by foreign countries. The board shall issue a
certificate to a holder of a generally equivalent foreign country designation, provided that:
(1) the foreign authority that granted the designation makes similar provision to
allow a person who holds a valid certificate issued by this state to obtain the foreign
authority's comparable designation;
(2) the foreign designation:
(i) was duly issued by a foreign authority that regulates the practice of public
accountancy and the foreign designation has not expired or been revoked or suspended;
(ii) entitles the holder to issue reports upon financial statements; and
(iii) was issued upon the basis of educational, examination, and experience
requirements established by the foreign authority or by law; and
(3) the applicant:
(i) received the designation, based on educational and examination standards
generally equivalent to those in effect in this state, at the time the foreign designation
was granted;
(ii) has, within the ten years immediately preceding the application, completed an
experience requirement that is generally equivalent to the requirement in section 326A.03,
subdivision 6 , paragraph (b), if application is made on or after July 1, 2006, or section
326A.03, subdivision 8, if application is made before July 1, 2006, in the jurisdiction that
granted the foreign designation; completed four years of professional experience in this
state; or met equivalent requirements prescribed by the board by rule; and
(iii) passed a uniform qualifying examination in national standards and an
examination on the laws, regulations, and code of ethical conduct in effect in this state
as the board prescribes by rule.

    Sec. 35. Minnesota Statutes 2012, section 326A.10, is amended to read:
326A.10 UNLAWFUL ACTS.
(a) Only a licensee and individuals who have been granted practice privileges
under section 326A.14 may issue a report on financial statements of any person, firm,
organization, or governmental unit that results from providing attest services, or offer to
render or render any attest service. Only a certified public accountant, an individual who
has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent
permitted by board rule, a person registered under section 326A.06, paragraph (b), may
issue a report on financial statements of any person, firm, organization, or governmental
unit that results from providing compilation services or offer to render or render any
compilation service. These restrictions do not prohibit any act of a public official or
public employee in the performance of that person's duties or prohibit the performance
by any nonlicensee of other services involving the use of accounting skills, including
the preparation of tax returns, management advisory services, and the preparation of
financial statements without the issuance of reports on them. Nonlicensees may prepare
financial statements and issue nonattest transmittals or information on them which do not
purport to be in compliance with the Statements on Standards for Accounting and Review
Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may,
to the extent permitted by board rule, prepare financial statements and issue nonattest
transmittals or information on them.
(b) Licensees and individuals who have been granted practice privileges under
section 326A.14 performing attest or compilation services must provide those services in
accordance with professional standards. To the extent permitted by board rule, registered
accounting practitioners performing compilation services must provide those services in
accordance with standards specified in board rule.
(c) A person who does not hold a valid certificate issued under section 326A.04
or a practice privilege granted under section 326A.14 shall not use or assume the title
"certified public accountant," the abbreviation "CPA," or any other title, designation,
words, letters, abbreviation, sign, card, or device tending to indicate that the person is a
certified public accountant.
(d) A firm shall not provide attest services or assume or use the title "certified public
accountants," the abbreviation "CPA's," or any other title, designation, words, letters,
abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless
(1) the firm has complied with section 326A.05, and (2) ownership of the firm is in
accordance with this chapter and rules adopted by the board.
(e) A person or firm that does not hold a valid certificate or permit issued under
section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or
326A.05 as required in this chapter shall not assume or use the title "certified accountant,"
"chartered accountant," "enrolled accountant," "licensed accountant," "registered
accountant," "accredited accountant," "accounting practitioner," "public accountant,"
"licensed public accountant," or any other title or designation likely to be confused
with the title "certified public accountant," or use any of the abbreviations "CA," "LA,"
"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the
abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals
so designated by the Internal Revenue Service.
(f) Persons registered under section 326A.06, paragraph (b), may use the title
"registered accounting practitioner" or the abbreviation "RAP." A person who does not
hold a valid registration under section 326A.06, paragraph (b), shall not assume or use
such title or abbreviation.
(g) Except to the extent permitted in paragraph (a), nonlicensees may not use
language in any statement relating to the financial affairs of a person or entity that is
conventionally used by licensees in reports on financial statements. In this regard, the
board shall issue by rule safe harbor language that nonlicensees may use in connection
with such financial information. A person or firm that does not hold a valid certificate or
permit, or a registration issued under section 326A.04, 326A.05, or 326A.06, paragraph
(b) , or has not otherwise complied with section 326A.04 or 326A.05 as required in this
chapter shall not assume or use any title or designation that includes the word "accountant"
or "accounting" in connection with any other language, including the language of a report,
that implies that the person or firm holds such a certificate, permit, or registration or has
special competence as an accountant. A person or firm that does not hold a valid certificate
or permit issued under section 326A.04 or 326A.05 or has not otherwise complied with
section 326A.04 or 326A.05 as required in this chapter shall not assume or use any title
or designation that includes the word "auditor" in connection with any other language,
including the language of a report, that implies that the person or firm holds such a
certificate or permit or has special competence as an auditor. However, this paragraph
does not prohibit any officer, partner, member, manager, or employee of any firm or
organization from affixing that person's own signature to any statement in reference to the
financial affairs of such firm or organization with any wording designating the position,
title, or office that the person holds, nor prohibit any act of a public official or employee in
the performance of the person's duties as such.
(h)(1) No person holding a certificate or registration or firm holding a permit under
this chapter shall use a professional or firm name or designation that is misleading about
the legal form of the firm, or about the persons who are partners, officers, members,
managers, or shareholders of the firm, or about any other matter. However, names of one
or more former partners, members, managers, or shareholders may be included in the
name of a firm or its successor.
(2) A common brand name or network name part, including common initials, used
by a CPA firm in its name, is not misleading if the firm is a network firm as defined in
the American Institute of Certified Public Accountants (AICPA) Code of Professional
Conduct in effect July 1, 2011, and when offering or rendering services that require
independence under AICPA standards, the firm must comply with the AICPA code's
applicable standards on independence.
(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification,
designation, degree, or license granted in a foreign country entitling the holder to engage
in the practice of public accountancy or its equivalent in that country, if:
(1) the activities of the person or firm in this state are limited to the provision of
professional services to persons or firms who are residents of, governments of, or business
entities of the country in which the person holds the entitlement;
(2) the person or firm performs no attest or compilation services and issues no reports
with respect to the financial statements of any other persons, firms, or governmental
units in this state; and
(3) the person or firm does not use in this state any title or designation other than
the one under which the person practices in the foreign country, followed by a translation
of the title or designation into English, if it is in a different language, and by the name
of the country.
(j) No holder of a certificate issued under section 326A.04 may perform attest services
through any business form that does not hold a valid permit issued under section 326A.05.
(k) No individual licensee may issue a report in standard form upon a compilation
of financial information through any form of business that does not hold a valid permit
issued under section 326A.05, unless the report discloses the name of the business through
which the individual is issuing the report, and the individual:
(1) signs the compilation report identifying the individual as a certified public
accountant;
(2) meets the competency requirement provided in applicable standards; and
(3) undergoes no less frequently than once every three years, a peer review
conducted in a manner specified by the board in rule, and the review includes verification
that the individual has met the competency requirements set out in professional standards
for such services.
(l) No person registered under section 326A.06, paragraph (b), may issue a report
in standard form upon a compilation of financial information unless the board by rule
permits the report and the person:
(1) signs the compilation report identifying the individual as a registered accounting
practitioner;
(2) meets the competency requirements in board rule; and
(3) undergoes no less frequently than once every three years a peer review conducted
in a manner specified by the board in rule, and the review includes verification that the
individual has met the competency requirements in board rule.
(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from
preparing or presenting records or documents customarily prepared by an attorney or firm
of attorneys in connection with the attorney's professional work in the practice of law.
(n) The board shall adopt rules that place limitations on receipt by a licensee or a
person who holds a registration under section 326A.06, paragraph (b), of:
(1) contingent fees for professional services performed; and
(2) commissions or referral fees for recommending or referring to a client any
product or service.
(o) Anything in this section to the contrary notwithstanding, it shall not be a violation
of this section for a firm not holding a valid permit under section 326A.05 and not having
an office in this state to provide its professional services in this state so long as it complies
with the applicable requirements of section 326A.05, subdivision 1.

    Sec. 36. REVISOR'S INSTRUCTION.
(a) The revisor of statutes shall change the term "manicurist" to "nail technician"
wherever it appears in Minnesota Rules and Statutes.
(b) The revisor of statutes shall change the term "licensed" to "registered" and
"license" to "registration" wherever it appears in Minnesota Statutes, chapter 154, or
applicable Minnesota Rules.

    Sec. 37. REPEALER.
(a) Minnesota Statutes 2012, sections 116W.01; 116W.02; 116W.03; 116W.035;
116W.04; 116W.05; 116W.06; 116W.20; 116W.21; 116W.23; 116W.24; 116W.25;
116W.26; 116W.27; 116W.28; 116W.29; 116W.30; 116W.31; 116W.32; 116W.33;
116W.34; 155A.25, subdivision 1; and 326A.03, subdivisions 2, 5, and 8, are repealed.
(b) Minnesota Rules, parts 1105.0600; 1105.2550; and 1105.2700, are repealed.

ARTICLE 6

COMMERCE AND CONSUMER PROTECTION APPROPRIATIONS

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

			2014		2015		Total
	General	$	44,608,000	$	44,868,000	$	89,476,000
	Special Revenue		4,898,000		4,940,000		9,838,000
	Petroleum Tank		1,052,000		1,052,000		2,104,000
	Workers' Compensation		751,000		751,000		1,502,000
	Lottery Prize Fund		225,000		225,000		450,000
	Total	$	51,534,000	$	51,836,000	$	103,370,000

Sec. 2. COMMERCE AND CONSUMER PROTECTION APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2014" and "2015" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2014, or
June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
year 2015. "The biennium" is fiscal years 2014 and 2015.

				APPROPRIATIONS
				Available for the Year
				Ending June 30
					2014		2015

Sec. 3. DEPARTMENT OF COMMERCE

Subdivision 1.Total Appropriation

$

26,126,000

$

26,048,000

	Appropriations by Fund
		2014	2015
	General	24,323,000	24,245,000
	Petroleum Tank	1,052,000	1,052,000
	Workers' Compensation	751,000	751,000

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

Subd. 2.Financial Institutions

4,885,000

4,885,000

$142,000 each year is for the regulation of
mortgage originators and servicers under
Minnesota Statutes, chapters 58 and 58A.

Subd. 3.Petroleum Tank Release Compensation Board

1,052,000

1,052,000

This appropriation is from the petroleum
tank fund.

Subd. 4.Administrative Services

6,689,000

6,865,000

$375,000 each year is for additional
compliance efforts with unclaimed property.
The commissioner may issue contracts for
these services.
$25,000 each year is for newspaper
advertising directed at persons who own or
may own unclaimed property. By June 30
of each year, the commissioner shall submit
a report to the house and senate committees
with jurisdiction over the department of the
results of the newspaper advertisements
in returning property to the owners. This
appropriation for newspaper advertising and
the requirement of a report is for fiscal years
2014 and 2015 only.
Fees for the Weights and Measures Unit are
increased by 30 percent during fiscal year
2014. All fees are deposited to the general
fund as nondedicated revenue.
Base adjustment. $174,000 in fiscal year
2014 and $350,000 in fiscal year 2015 is
added to the base.

Subd. 5.Telecommunications

1,509,000

1,259,000

$500,000 in fiscal year 2014 and $250,000
in fiscal year 2015 are for the Broadband
Development Office. $250,000 of the
appropriation for fiscal year 2014 is a onetime
appropriation for grants to low-payment-rate
nursing facilities for information technology
or telecommunications equipment upgrades.
The following transfer is from the
telecommunications access Minnesota
fund. $500,000 the first year and $800,000
the second year and each year thereafter
are for transfer to the commissioner of
human services to supplement the ongoing
operational expenses of the Commission
of Deaf, DeafBlind, and Hard-of-Hearing
Minnesotans.

Subd. 6.Enforcement

4,824,000

4,820,000

	Appropriations by Fund
	General	4,626,000	4,622,000
	Workers' Compensation	198,000	198,000

Of the general fund amount, $646,000 in
fiscal year 2014 and $642,000 in fiscal year
2015 is to establish the regulation of gold
bullion dealers.

Subd. 7.Energy Resources

3,252,000

3,252,000

Subd. 8.Insurance

3,915,000

3,915,000

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

Sec. 4. PUBLIC UTILITIES COMMISSION

$

6,226,000

$

6,277,000

Base adjustment. $48,000 in fiscal year
2014 and $99,000 in fiscal year 2015 is
added to the base.

Sec. 5. GAMBLING CONTROL

$

3,989,000

$

4,021,000

These appropriations are from the lawful
gambling regulation account in the special
revenue fund.
Base adjustment. $30,000 in fiscal year
2014 and $62,000 in fiscal year 2015 is
added to the base.

Sec. 6. RACING COMMISSION

$

909,000

$

919,000

These appropriations are from the racing
and card playing regulation accounts in the
special revenue fund.
Base adjustment. $10,000 in fiscal year
2014 and $20,000 in fiscal year 2015 is
added to the base.

Sec. 7. STATE LOTTERY

Notwithstanding Minnesota Statutes, section
349A.10, subdivision 3, the operating budget
must not exceed $30,500,000 in fiscal year
2014 and $30,500,000 in fiscal year 2015.

Sec. 8. EXPLORE MINNESOTA TOURISM

$

14,059,000

$

14,096,000

(a) Of this amount, $12,000 each year is for a
grant to the Upper Minnesota Film Office.
(b)(1) To develop maximum private sector
involvement in tourism, $500,000 in fiscal
year 2014 and $500,000 in fiscal year 2015
must be matched by Explore Minnesota
Tourism from nonstate sources. Each $1 of
state incentive must be matched with $6 of
private sector funding. Cash match is defined
as revenue to the state or documented cash
expenditures directly expended to support
Explore Minnesota Tourism programs. Up
to one-half of the private sector contribution
may be in-kind or soft match. The incentive
in fiscal year 2014 shall be based on fiscal
year 2013 private sector contributions. The
incentive in fiscal year 2015 shall be based on
fiscal year 2014 private sector contributions.
This incentive is ongoing.
(2) Funding for the marketing grants is
available either year of the biennium.
Unexpended grant funds from the first year
are available in the second year.
(3) Unexpended money from the general
fund appropriations made under this section
does not cancel but must be placed in a
special marketing account for use by Explore
Minnesota Tourism for additional marketing
activities.
(c) $325,000 in fiscal year 2014 and $325,000
in fiscal year 2015 are for the Minnesota
Film and TV Board. The appropriation in
each year is available only upon receipt by
the board of $1 in matching contributions
of money or in-kind contributions from
nonstate sources for every $3 provided by
this appropriation, except that each year up
to $50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.
(d) Base adjustment. $34,000 in fiscal
year 2014 and $71,000 in fiscal year 2015
is added to the base.

    Sec. 9. PROBLEM GAMBLING APPROPRIATION.
$225,000 in fiscal year 2014 and $225,000 in fiscal year 2015 are appropriated
from the lottery prize fund to the commissioner of human services for a grant to the
state affiliate recognized by the National Council on Problem Gambling. The affiliate
must provide services to increase public awareness of problem gambling, education,
and training for individuals and organizations providing effective treatment services to
problem gamblers and their families, and research relating to problem gambling. These
services must be complementary to and not duplicative of the services provided through
the problem gambling program administered by the commissioner of human services.
This is a onetime appropriation.

ARTICLE 7

COMMERCE AND CONSUMER PROTECTION POLICY

    Section 1. Minnesota Statutes 2012, section 60A.14, subdivision 1, is amended to read:
    Subdivision 1. Fees other than examination fees. In addition to the fees and
charges provided for examinations, the following fees must be paid to the commissioner
for deposit in the general fund:
(a) by township mutual fire insurance companies;
(1) for filing certificate of incorporation $25 and amendments thereto, $10;
(2) for filing annual statements, $15;
(3) for each annual certificate of authority, $15;
(4) for filing bylaws $25 and amendments thereto, $10;
(b) by other domestic and foreign companies including fraternals and reciprocal
exchanges;
(1) for filing an application for an initial certification of authority to be admitted
to transact business in this state, $1,500;
(2) for filing certified copy of certificate of articles of incorporation, $100;
(3) for filing annual statement, $225;
(4) for filing certified copy of amendment to certificate or articles of incorporation,
$100;
(5) for filing bylaws, $75 or amendments thereto, $75;
(6) for each company's certificate of authority, $575, annually;
(c) the following general fees apply:
(1) for each certificate, including certified copy of certificate of authority, renewal,
valuation of life policies, corporate condition or qualification, $25;
(2) for each copy of paper on file in the commissioner's office 50 cents per page,
and $2.50 for certifying the same;
(3) for license to procure insurance in unadmitted foreign companies, $575;
(4) for valuing the policies of life insurance companies, one cent per $1,000 of
insurance so valued, provided that the fee shall not exceed $13,000 per year for any
company. The commissioner may, in lieu of a valuation of the policies of any foreign life
insurance company admitted, or applying for admission, to do business in this state, accept
a certificate of valuation from the company's own actuary or from the commissioner of
insurance of the state or territory in which the company is domiciled;
(5) for receiving and filing certificates of policies by the company's actuary, or by
the commissioner of insurance of any other state or territory, $50;
(6) for each appointment of an agent filed with the commissioner, $10 $30;
(7) for filing forms, rates, and compliance certifications under section 60A.315, $140
per filing, or $125 per filing when submitted via electronic filing system. Filing fees
may be paid on a quarterly basis in response to an invoice. Billing and payment may
be made electronically;
(8) for annual renewal of surplus lines insurer license, $300.
The commissioner shall adopt rules to define filings that are subject to a fee.

    Sec. 2. [80G.01] REGISTRATION.
(a) The fee for each registration under this chapter shall be as follows:
(1) bullion coin dealers, $25; and
(2) coin dealer representatives, $10.
(b) The commissioner, based on the cost of processing registrations, may adjust the
registration fee on an annual basis as needed.

    Sec. 3. [161.462] FIBER COLLABORATION DATABASE.
    Subdivision 1. Purpose. The purpose of the fiber collaboration database is
to provide broadband providers with advance notice of upcoming Department of
Transportation construction projects, so that they may notify the department of their
interest in installing broadband infrastructure within the right-of-way during construction
in order to minimize installation costs.
    Subd. 2. Database. (a) The Department of Transportation shall post on its Web site,
and update annually, the list of upcoming construction projects contained in its statewide
transportation improvement program, including, for each project:
(1) the geographical location where construction will occur;
(2) the estimated start and end dates of construction; and
(3) a description of the nature of the construction project.
(b) The department shall post this information as far in advance of the beginning of
construction as is feasible.
(c) The department's Web site shall allow a provider of broadband service to register
to receive from the department electronic information on proposed construction projects
added to the database in specific geographical areas of the state as soon as it is updated.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2012, section 237.012, subdivision 3, is amended to read:
    Subd. 3. Annual reports. The commissioner of commerce must annually by
February 10 report on the achievement of the goals under subdivisions 1 and 2 to the chairs
and ranking minority members of the legislative committees with primary jurisdiction
over telecommunication issues. The report must also suggest policies, incentives, and
legislation designed to accelerate the achievement of the goals. The report on goals under
subdivision 1 must be made through 2015.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 5. [237.85] OFFICE OF BROADBAND DEVELOPMENT.
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them.
(b) "Broadband" or "broadband service" means any service providing advanced
telecommunications capability and Internet access with transmission speeds that, at a
minimum, meet the Federal Communications Commission definition for broadband.
(c) "Local unit of government" has the meaning given in section 116G.03,
subdivision 3.
(d) "Office" means the Office of Broadband Development established in subdivision
2, paragraph (a).
    Subd. 2. Office established; purpose. (a) An Office of Broadband Development is
established within the Department of Commerce.
(b) The purpose of the office is to encourage, foster, develop, and improve broadband
within the state in order to:
(1) drive job creation, promote innovation, and expand markets for Minnesota
businesses;
(2) serve the ongoing and growing needs of Minnesota's education systems, health
care system, public safety system, industries and businesses, governmental operations,
and citizens; and
(3) improve accessibility for underserved communities and populations.
    Subd. 3. Organization. The office shall consist of a director of the Office of
Broadband Development, as well as any staff necessary to carry out the office's duties
under subdivision 4.
    Subd. 4. Duties. The office shall have the power and duty to:
(1) serve as the central broadband planning body for the state of Minnesota;
(2) coordinate with state, regional, local, and private entities to develop, to the
maximum extent practicable, a uniform statewide broadband access and usage policy;
(3) develop, recommend, and implement a statewide plan to encourage cost-effective
broadband access, and to make recommendations for increased usage, particularly in
rural and other underserved areas;
(4) coordinate efforts, in consultation and cooperation with the commissioner of
commerce, local units of government, and private entities, to meet the state's broadband
goals in section 237.012;
(5) develop, coordinate, and implement the state's broadband infrastructure
development program under section 237.90;
(6) provide consultation services to local units of government or other project
sponsors in connection with the planning, acquisition, improvement, construction, or
development of any broadband deployment project;
(7) encourage public-private partnerships to increase deployment and adoption
of broadband services and applications, including recommending funding options and
possible incentives to encourage investment in broadband expansion;
(8) monitor the broadband development efforts of other states and nations in areas
such as business, education, public safety, and health;
(9) monitor broadband-related activities at the federal level, including regulatory and
policy changes and the potential impact on broadband deployment and sustainability in
the state;
(10) serve as an information clearinghouse for federal programs providing financial
assistance to institutions located in rural areas seeking to obtain access to high speed
broadband service, and use this information as an outreach tool to make institutions
located in rural areas that are unserved or underserved with respect to broadband service
aware of the existence of federal assistance;
(11) coordinate an ongoing collaborative effort of stakeholders to evaluate and
address security, vulnerability, and redundancy issues important to ensure the reliability
of broadband networks;
(12) provide an annual report, as required by subdivision 5; and
(13) perform any other activities consistent with the office's purpose.
    Subd. 5. Reporting. (a) Beginning on January 15, 2014, and each year thereafter,
the Office of Broadband Development shall report to the legislative committees having
jurisdiction over telecommunications policy and finance on the office's activities during
the previous year.
(b) The report shall contain, at a minimum:
(1) an analysis of the current availability and use of broadband, including average
broadband speeds, within the state;
(2) information gathered from schools, libraries, hospitals, and public safety
facilities across the state, determining the actual speed and capacity of broadband currently
in use and the need, if any, for increases in speed and capacity to meet basic needs;
(3) an analysis of incumbent broadband infrastructure within the state and its ability
to spur economic development;
(4) an analysis of the degree to which new, additional, or improved broadband
infrastructure would spur economic development in the state;
(5) a summary of the office's activities in coordinating broadband infrastructure
development under section 237.90;
(6) any proposed legislative and policy initiatives; and
(7) any other information requested by the legislative committees having jurisdiction
over telecommunications policy and finance, or that the office deems necessary.
(c) The report may be submitted electronically and is subject to section 3.195,
subdivision 1.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 6. [237.90] COORDINATION OF BROADBAND INFRASTRUCTURE
DEVELOPMENT.
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them.
(b) "Broadband" or "broadband service" has the meaning given in section 237.85,
subdivision 1, paragraph (b).
(c) "Broadband conduit" means a conduit, pipe, innerduct, or microduct for fiber
optic or other cables that support broadband and wireless facilities for broadband service.
(d) "Local unit of government" has the meaning given in section 116G.03,
subdivision 3.
(e) "Office" means the Office of Broadband Development established in section
237.85.
    Subd. 2. Broadband infrastructure development. (a) The office shall, in
collaboration with the Department of Transportation and private entities, encourage and
coordinate "dig once" efforts for the planning, relocation, installation, or improvement of
broadband conduit within the right-of-way in conjunction with any current or planned
construction, including, but not limited to, trunk highways and bridges. To the extent
necessary, the office shall, in collaboration with the Department of Transportation,
evaluate engineering and design standards, procedures and criteria for contracts or lease
agreements with private entities, and pricing requirements, and provide for allocation
of risk, costs, and any revenue generated.
(b) The office shall, in collaboration with other state departments and agencies as the
office deems necessary, develop a strategy to facilitate the timely and efficient deployment
of broadband conduit or other broadband facilities on state-owned lands and buildings.
(c) To the extent practicable, the office shall encourage and assist local units of
government to adopt and implement policies similar to those under paragraphs (a) and (b)
for construction or other improvements to county state-aid highways, municipal state-aid
roads, and any other rights-of-way under the local unit of government's jurisdiction, and to
other lands or buildings owned by the local unit of government.
(d) Special consideration must be paid to projects under this subdivision that will
likely improve access to broadband by rural or underserved communities.
    Subd. 3. Reporting. As part of its annual report under section 237.85, subdivision
5, the office shall report on activities taken under this section, including, but not limited to,
the number of current and planned projects using the "dig once" approach, any gains in
broadband speed or access associated with the project, and any costs or cost savings to
the state, private entity, or end user of broadband services.
    Subd. 4. No right of action. Nothing in this section shall be construed to create
any right or benefit, substantive or procedural, enforceable at law or in equity by any
party against the state of Minnesota, its departments, agencies, or entities, its officers,
employees, or agents, or any other person.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2012, section 239.101, subdivision 3, is amended to read:
    Subd. 3. Petroleum inspection fee; appropriation, uses. (a) An inspection fee
is imposed (1) on petroleum products when received by the first licensed distributor,
and (2) on petroleum products received and held for sale or use by any person when the
petroleum products have not previously been received by a licensed distributor. The
petroleum inspection fee is $1 for every 1,000 gallons received. The commissioner of
revenue shall collect the fee. The revenue from 81 89 cents of the fee is appropriated to
the commissioner of commerce for the cost of operations of the Division of Weights and
Measures, petroleum supply monitoring, and to make grants to providers of low-income
weatherization services to install renewable energy equipment in households that are
eligible for weatherization assistance under Minnesota's weatherization assistance
program state plan. The remainder of the fee must be deposited in the general fund.
    (b) The commissioner of revenue shall credit a person for inspection fees previously
paid in error or for any material exported or sold for export from the state upon filing of a
report as prescribed by the commissioner of revenue.
    (c) The commissioner of revenue may collect the inspection fee along with any
taxes due under chapter 296A.

    Sec. 8. Minnesota Statutes 2012, section 507.235, subdivision 2, is amended to read:
    Subd. 2. Penalty for failure to file. (a) A vendee who fails to record a contract for
deed, as required by subdivision 1, is subject to a civil penalty, payable under subdivision
5, equal to two percent of the principal amount of the contract debt, unless the vendee
has not received a copy of the contract for deed in recordable form, as required under
subdivision 1a. Payments of the penalty shall be deposited in the general fund of the
county. The penalty may be enforced as a lien against the vendee's interest in the property.
(b) A person receiving an assignment of a vendee's interest in a contract for deed
who fails to record the assignment as required by subdivision 1 is subject to a civil penalty,
payable under subdivision 5, equal to two percent of the original principal amount of the
contract debt. Payments of the penalty must be deposited in the general fund of the county.
The penalty may be enforced as a lien against the vendee's interest in the property.

    Sec. 9. [559.201] DEFINITIONS.
    Subdivision 1. Application. The definitions in this section apply to section 559.202.
    Subd. 2. Business day. "Business day" means any day other than a Saturday,
Sunday, or holiday as defined in section 645.44, subdivision 5.
    Subd. 3. Family farm security loan. "Family farm security loan" has the meaning
given in Minnesota Statutes 2008, section 41.52, subdivision 5.
    Subd. 4. Multiple seller. "Multiple seller" means a person that has acted as a seller
in four or more contracts for deed involving residential real property during the 12-month
period that precedes either: (1) the date on which the purchaser executes a purchase
agreement under section 559.202; or (2) if there is no purchase agreement, the date on
which the purchaser executes a contract for deed under section 559.202. A contract for
deed transaction that is exempt under section 559.202, subdivision 2, is a contract for deed
for the purposes of determining whether a seller is a multiple seller.
    Subd. 5. Person. "Person" means a natural person, partnership, corporation, limited
liability company, association, trust, or other legal entity, however organized.
    Subd. 6. Purchase agreement. "Purchase agreement" means a purchase agreement
for a contract for deed, an earnest money contract, or an executed option contemplating
that, at closing, the seller and the purchaser will enter into a contract for deed.
    Subd. 7. Purchaser. "Purchaser" means a natural person who enters into a contract
for deed to purchase residential real property. Purchaser includes all purchasers who enter
into the same contract for deed to purchase residential real property.
    Subd. 8. Residential real property. "Residential real property" means real property
consisting of one to four family dwelling units, one of which the purchaser intends to
occupy as the purchaser's principal place of residence. Residential real property does
not include property subject to a family farm security loan or a transaction subject to
sections 583.20 to 583.32.

    Sec. 10. [559.202] CONTRACTS FOR DEED INVOLVING RESIDENTIAL
PROPERTY.
    Subdivision 1. Notice required. (a) In addition to the disclosures required under
sections 513.52 to 513.60, a multiple seller must deliver the notice specified under
subdivision 3 to a prospective purchaser as provided under this subdivision.
(b) If there is a purchase agreement, the notice must be affixed to the front of
the purchase agreement. A contract for deed for which notice is required under this
subdivision may not be executed for five business days following the execution of the
purchase agreement and delivery of the notice and instructions for cancellation.
(c) If there is no purchase agreement, a multiple seller must deliver the notice in a
document separate from any other document or writing to a prospective purchaser no less
than five business days before the prospective purchaser executes the contract for deed.
(d) The notice must be:
(1) written in at least 12-point type; and
(2) signed and dated by the purchaser.
(e) If a dispute arises concerning whether or when the notice required by this
subdivision was provided to the purchaser, there is a rebuttable presumption that the notice
was not provided unless the original executed contract for deed contains the following
statement, initialed by the purchaser: "By initialing here ....... purchaser acknowledges
receipt at least five business days before signing this contract for deed of the disclosure
statement entitled "Important Information About Contracts for Deed" required by
Minnesota Statutes, section 559.202, subdivision 3."
    Subd. 2. Exception. This section does not apply if the purchaser is represented
throughout the transaction by either:
(1) a person licensed to practice law in this state; or
(2) a person licensed as a real estate broker or salesperson under chapter 82,
provided that the representation does not create a dual agency, as that term is defined
in section 82.55, subdivision 6.
    Subd. 3. Content of the notice. The notice must contain the following verbatim
language:

"IMPORTANT INFORMATION ABOUT CONTRACTS FOR DEED

Know What You Are Getting Into
(1) A contract for deed is a complex legal agreement. You are NOT a tenant. Mortgage
foreclosure laws don't apply.
(2) You should know ALL of your obligations and rights before you sign a purchase
agreement or contract for deed.
(3) You (seller must circle one):

	(a)	DO	DO NOT	have to pay homeowner's insurance.
	(b)	DO	DO NOT	have to pay property taxes.
	(c)	DO	DO NOT	have to make and pay for some or all of the repairs or maintenance, as described in the contract for deed.

(4) After some time, you may need to make a large lump sum payment (called a "balloon
payment"). Know when it is due and how much it will be. You'll probably need to get a
new mortgage, another financial arrangement, or pay for the balance in cash at that time.
(5) If you miss just a single payment or can't make the balloon payment, the seller can
cancel your contract. You will likely lose all the money you have already paid. You will
likely lose your ability to purchase the home. The seller can begin an eviction action
against you in just a few months.
(6) Within four months of signing the contract for deed, you must "record" it in the office
of the county recorder or registrar of titles in the county in which the property is located.
If you do not do so, you could face a fine.
Key Things Highly Recommended Before You Sign
(1) Get advice from a lawyer or the Minnesota Home Ownership Center at
1-866-462-6466. To find a lawyer through the Minnesota State Bar Association, go to
www.mnfindalawyer.com.
(2) Get an independent, professional appraisal of the property to learn what it is worth.
(3) Get an independent, professional inspection of the property.
(4) Buy title insurance or ask a real estate lawyer for a "title opinion."
(5) Check with the city or county to find out if there are inspection reports or unpaid
utility bills.
(6) Check with a title company or the county where the property is located to find out if
there is a mortgage or other lien on the property and if the property taxes have been paid.
If You Are Entering into a Purchase Agreement
(1) If you haven't already signed the contract for deed, you can cancel the purchase
agreement (and get all your money back) if you do so within five business days after
getting this notice.
(2) To cancel the purchase agreement, you must follow the provisions of Minnesota
Statutes, section 559.217, subdivision 4. Ask a lawyer for help."
    Subd. 4. Right to cancel purchase agreement. (a) A prospective purchaser may
cancel a purchase agreement within five business days after actually receiving the notice
required under subdivision 1 if a multiple seller fails to timely deliver the notice, provided
that the contract for deed has not been executed by all parties.
(b) A prospective purchaser may cancel the purchase agreement in accordance with
the provisions of section 559.217, subdivision 4.
(c) In the event of cancellation, the multiple seller may not impose a penalty and must
promptly refund all payments made by the prospective purchaser prior to cancellation.
    Subd. 5. Remedies for failure to timely deliver notices. (a) Notwithstanding
any contrary provision in the purchase agreement or contract for deed, a purchaser has
a private right of action against a multiple seller who fails to timely deliver the notice
required under subdivision 1. The multiple seller is liable to the purchaser for:
(1) the greater of actual damages or statutory damages of $2,500; and
(2) reasonable attorney fees and court costs.
(b) A multiple seller who knowingly fails to timely deliver the notice required
under subdivision 1 is liable to the purchaser for triple the actual or statutory damages
available under paragraph (a), whichever is greater, provided that the purchaser must elect
the remedy provided under either paragraph (a) or this paragraph and may not recover
damages under both paragraphs.
(c) The rights and remedies provided in this subdivision are cumulative to, and not
a limitation of, any other rights and remedies provided under law. An action brought
pursuant to this subdivision must be commenced within four years from the date of the
alleged violation.
    Subd. 6. Effects of violation. A violation of this section has no effect on the
validity of the contract.
    Subd. 7. Duty of multiple seller to account. Upon reasonable request by the
purchaser and no more than once every 12-month period, a multiple seller must provide an
accounting of all payments made pursuant to the contract for deed, the amount of interest
paid, and the amount remaining to satisfy the principal balance under the contract.
    Subd. 8. No waiver. The provisions of this section may not be waived.
EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
transactions in which the contract for deed and the purchase agreement for the contract
for deed, if any, were both executed on or after that date.

    Sec. 11. Minnesota Statutes 2012, section 559.211, subdivision 2, is amended to read:
    Subd. 2. Remedies additional. The remedies provided in this section are in
addition to and do not limit other rights or remedies available to purchasers or vendors of
real estate. Subject to the provisions of sections 559.213 and 559.217, subdivision 7, this
section shall not be construed to bar a court from determining the validity, effectiveness,
or consequences of proceeding under section 559.21 or 559.217, or granting other relief in
connection therewith, by reason of the failure of a purchaser to seek or obtain relief under
this section prior to the purported effective date of the termination of the contract.

    Sec. 12. Laws 2011, First Special Session chapter 2, article 2, section 3, subdivision 4,
is amended to read:

Subd. 4.Administrative Services

4,247,000

4,247,000

$375,000 each year is for additional
compliance efforts with unclaimed property.
The commissioner may issue contracts
for these services. This additional amount
shall be added to the base budget for fiscal
years 2014 and 2015 only. The enhanced
unclaimed property compliance program
shall sunset June 30, 2015.

    Sec. 13. STATE BROADBAND STRATEGY; REPORT.
The Office of Broadband Development shall conduct research and produce a report
recommending a set of programs and strategies the state can pursue to promote the
improvement, more efficient and effective use, and expansion of broadband services in
ways that will have the greatest impact on the state's economic development, by which is
meant enhancing the ability of Minnesota citizens and businesses to develop their skills,
to expand businesses to new markets, develop new products, reach more customers, and
lower costs. While the state's broadband goals in section 237.012 address the universal
provision of greater broadband access and speed statewide, this report must consider
broadband as an economic development tool and must examine and analyze:
(1) how the state can best use its limited resources to adopt strategies and make
investments to improve the use of broadband services by subgroups of broadband users,
including mobile broadband users, that promise to deliver the greatest economic impact
per dollar of state investment;
(2) roles the state can play in addition to financial assistance for broadband
infrastructure, including supporting education and training for Minnesotans to enable
them to use broadband more effectively; and
(3) strategies and opportunities for state investment to leverage additional amounts
of private capital and financial assistance from the federal government in order to achieve
these goals.
By January 15, 2014, the office shall submit the report to the chairs and ranking minority
members of the senate and house committees with jurisdiction over telecommunications
issues.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 14. REPEALER.
Minnesota Statutes 2012, section 507.235, subdivision 4, is repealed effective the
day following final enactment.

ARTICLE 8

HOUSING FINANCE

    Section 1. HOUSING FINANCE AGENCY.
    The sums shown in the columns marked "APPROPRIATIONS" are appropriated
to the agencies and for the purposes specified in this act. The appropriations are from
the general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2014" and "2015" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2014, or
June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
year 2015. "The biennium" is fiscal years 2014 and 2015.

				APPROPRIATIONS
				Available for the Year
				Ending June 30
					2014		2015

Sec. 2. APPROPRIATIONS.

Subdivision 1.Total Appropriation

$

50,048,000

$

48,048,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.
Unless otherwise specified, this appropriation
is for transfer to the housing development
fund for the programs specified in this
section. Except as otherwise indicated, this
transfer is part of the agency's permanent
budget base.

Subd. 2.Challenge Program

10,227,000

10,227,000

(a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
Priority shall be given to funding programs
that are aimed at closing the disparity gap
in affordable homeownership and rental
housing for indigenous American Indians
and communities of color. Of this amount,
$1,208,000 each year shall be made available
during the first 11 months of the fiscal
year exclusively for housing projects for
American Indians. Any funds not committed
to housing projects for American Indians in
the first 11 months of the fiscal year shall
be available for any eligible activity under
Minnesota Statues, section 462A.33.
(b) Priority shall be given to programs that:
(1) focus on creating safe and stable housing
for homeless youth;
(2) provide housing and services to trafficked
women and children;
(3) are land trust programs and programs
that work in coordination with a land trust
program; or
(4) provide housing for communities and
regions that have: (i) low vacancy rates, a
plan that identifies current and future housing
needs, experienced job growth since 2005,
and at least 2,000 jobs within the commuter
shed; or (ii) communities and regions that:
have evidence of anticipated job expansion
or a significant portion of area employees
who commute more than 30 miles between
their residence and employment, and where
area employers are willing to provide a
meaningful contribution that reduces the
need for deferred loan or grant funds from
state sources.
(c) The base funding for this program in the
2016-2017 biennium is $10,805,000 each
year.

Subd. 3.Housing Trust Fund

12,105,000

10,605,000

(a) This appropriation is for deposit in the
housing trust fund account created under
Minnesota Statutes, section 462A.201, and
may be used for the purposes provided in that
section. Priority shall be given to funding
programs that are aimed at closing the
disparity gap in rental housing for indigenous
American Indians and communities of
color and culturally specific groups who
are providing services to members of their
communities.
(b) $1,500,000 in the first year is for
temporary rental assistance for families
with school-age children who have changed
school or home at least once in the last
school year. The agency, in consultation
with the Department of Education, may
establish additional targeting criteria. The
base funding for this initiative is $1,500,000
in fiscal year 2016.
(c) The base funding for the housing trust
fund program is $12,291,000 in fiscal year
2016 and $10,791,000 in fiscal year 2017.

Subd. 4.Rental Assistance for the Mentally Ill

2,638,000

2,638,000

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

Subd. 5.Family Homeless Prevention

8,043,000

8,043,000

This appropriation is for the family homeless
prevention and assistance programs under
Minnesota Statutes, section 462A.204.
The base funding for this program in fiscal
years 2016 and 2017 is $8,145,000 each year.

Subd. 6.Home Ownership Assistance Fund

845,000

845,000

This appropriation is for the home ownership
assistance program under Minnesota
Statutes, section 462A.21, subdivision 8.
Priority shall be given to funding programs
that are aimed at closing the disparity gap in
affordable homeownership for indigenous
American Indians and communities of color.
The base funding for this program in fiscal
years 2016 and 2017 is $854,000 each year.

Subd. 7.Affordable Rental Investment Fund

4,200,000

4,200,000

(a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and
for making equity take-out loans under
Minnesota Statutes, section 462A.05,
subdivision 39.
(b) The owner of federally assisted rental
property must agree to participate in
the applicable federally assisted housing
program and to extend any existing
low-income affordability restrictions on the
housing for the maximum term permitted.
The owner must also enter into an agreement
that gives local units of government,
housing and redevelopment authorities,
and nonprofit housing organizations the
right of first refusal if the rental property
is offered for sale. Priority must be given
among comparable federally assisted rental
properties to properties with the longest
remaining term under an agreement for
federal assistance. Priority must also be
given among comparable rental housing
developments to developments that are or
will be owned by local government units, a
housing and redevelopment authority, or a
nonprofit housing organization.
(c) The appropriation also may be used to
finance the acquisition, rehabilitation, and
debt restructuring of existing supportive
housing properties. For purposes of this
subdivision, "supportive housing" means
affordable rental housing with links to
services necessary for individuals, youth, and
families with children to maintain housing
stability.

Subd. 8.Housing Rehabilitation

6,094,000

6,094,000

This appropriation is for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14.
Of this amount, $3,344,000 each year is for
the rehabilitation of rental properties, and
$2,750,000 each year is for the rehabilitation
of owner-occupied homes.
The base funding for this program in fiscal
years 2016 and 2017 is $6,188,000 each
year. Of this amount, $3,438,000 each year
is for the rehabilitation of rental housing and
$2,750,000 each year is for the rehabilitation
of owner-occupied housing.

Subd. 9.Homeownership Education, Counseling, and Training

809,000

809,000

This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
Priority may be given to funding programs
that are aimed at culturally specific groups
who are providing services to members of
their communities.
The base funding for this program in fiscal
years 2016 and 2017 is $819,000 each year.

Subd. 10.Capacity Building Grants

242,000

242,000

This appropriation is for nonprofit capacity
building grants under Minnesota Statutes,
section 462A.21, subdivision 3b.
The base funding for this program in fiscal
years 2016 and 2017 is $263,000 each year.

Subd. 11.Grants

445,000

445,000

(a) This appropriation is for the grants in
paragraphs (b) to (d) and is available until
expended. This appropriation is added to the
agency's base.
(b) $70,000 each year is for a grant to Open
Access Connection to provide free voice mail
services for homeless and low-income people
so that they have a reliable and consistent
communication tool to aid in their search
for affordable housing and their search for
and maintenance of jobs so that they have
income to maintain affordable housing. This
service is provided in the metropolitan area
and through a toll-free number in greater
Minnesota.
(c) $200,000 each year is for a grant to
HOME Line for the tenant's rights advocacy
and services program.
(d) $175,000 each year is for a grant to an East
African women's organization to promote the
health and safety of East African women and
children in Minnesota and provide services to
East African women, who are first-generation
immigrants from East African countries, and
their children. The program must provide
safe housing for victims of domestic abuse
and trafficking as well as assistance accessing
the health care system. The program must
provide educational resources to prevent
the exploitation of East African women
and children in Minnesota. The program
shall provide shelter services and health
and human rights education to promote
empowerment and provide culturally
appropriate services to East African women
and children in Minnesota and other victims
of domestic violence.

Subd. 12.Transfers

4,400,000

3,900,000

(a) The appropriations in this subdivision are
not for transfer to the housing development
fund. These appropriations are for transfer
to the commissioner of human services for
the purposes specified. The appropriations
are added to the Minnesota Housing Finance
Agency's fiscal year 2016 and fiscal year
2017 base budget.
(b) $900,000 each year is for the long-term
homeless supportive services fund under
Minnesota Statutes, section 256K.26.
(c) $250,000 each year is for the transitional
housing programs under Minnesota Statutes,
section 256E.33.
(d) $250,000 each year is for emergency
services grants under Minnesota Statutes,
section 256E.36.
(e) $1,500,000 each year is to provide
housing and services to homeless youth
under Minnesota Statutes, section 256K.45.
(f) $1,000,000 each year is to develop and
provide housing and shelters to prevent the
sexual exploitation of women and children
and assist trafficked women and children.
(g) $500,000 in the first year is a onetime
appropriation for a grant for housing
subsidies to the nonprofit organizations
selected to administer the demonstration
project for high-risk adults under Laws 2007,
chapter 54, article 1, section 19, to help
complete the project.