Journal of the House - 99th Day - Wednesday, May 7, 2014

A quorum was present.

FitzSimmons, Hamilton and Hilstrom were excused.

Garofalo was excused until 11:30 a.m.

The Chief Clerk proceeded to read the Journal of the preceding day. There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.

Journal of the House - 99th Day - Wednesday, May 7, 2014 - Top of Page 10348

REPORTS OF CHIEF CLERK

S. F. No. 2712 and H. F. No. 2602, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Mullery moved that the rules be so far suspended that S. F. No. 2712 be substituted for H. F. No. 2602 and that the House File be indefinitely postponed. The motion prevailed.

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Carlson from the Committee on Ways and Means to which was referred:

H. F. No. 1068, A bill for an act relating to capital investment; appropriating money for capital projects; authorizing the Housing Finance Agency to issue housing infrastructure bonds; amending Minnesota Statutes 2012, sections 240A.09; 462A.37, subdivision 2, by adding subdivisions.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

The sums shown in the column under "Appropriations" are appropriated from the general fund to the state agencies or officials indicated, to be spent for public purposes. Unless otherwise specified, the appropriations in this act are available until the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.

SUMMARY
University of Minnesota		30,000,000
Minnesota State Colleges and Universities		30,650,000
Natural Resources		11,900,000
Agriculture		325,000
Public Safety		225,000
Transportation		74,250,000
Metropolitan Council		2,518,000
Human Services		46,512,000
Employment and Economic Development		500,000
Minnesota Historical Society		1,868,000

TOTAL		$198,748,000
Journal of the House - 99th Day - Wednesday, May 7, 2014 - Top of Page 10349	APPROPRIATIONS

Sec. 2. UNIVERSITY OF MINNESOTA

$30,000,000

To the Board of Regents of the University of Minnesota for Higher Education Asset Preservation and Replacement (HEAPR), to be spent in accordance with Minnesota Statutes, section 135A.046.

Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

Subdivision 1. Total Appropriation

$30,650,000

To the Board of Trustees of the Minnesota State Colleges and Universities for the purposes specified in this section.

Subd. 2. Higher Education Asset Preservation and Replacement (HEAPR)

30,000,000

To be spent in accordance with Minnesota Statutes, section 135A.046.

Subd. 3. Alexandria Technical and Community College

650,000

For equipment maintenance and acquisition for manufacturing programs at Alexandria Technical and Community College, including the machine tool and welding programs, and any other appropriate programs as determined by the college.

Sec. 4. NATURAL RESOURCES

Subdivision 1. Total Appropriation

$11,900,000

To the commissioner of natural resources for the purposes specified in this section.

Subd. 2. Flood Hazard Mitigation

9,900,000

(a) For the state share of flood hazard mitigation grants for publicly owned capital improvements to prevent or alleviate flood damage under Minnesota Statutes, section 103F.161. Levee projects, to the extent practical, shall meet the state standard of three feet above the 100-year flood elevation. Project priorities shall be determined by the commissioner as appropriate and based on need.

(b) This appropriation includes money for the projects in Montevideo and Moorhead.

(c) For any project listed in this subdivision that the commissioner determines is not ready to proceed or does not expend all the money allocated to it, the commissioner may allocate that project's money to a project on the commissioner's priority list.

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(d) To the extent that the cost of a project exceeds two percent of the median household income in a municipality or township multiplied by the number of households in the municipality or township, this appropriation is also for the local share of the project.

Subd. 3. Forestry Seed Processing Facilities

2,000,000

To construct, furnish, and equip an expansion to the cold storage and processing facilities at Badoura Nursery to support consolidated bareroot production; construct and equip improved seed development, processing, and storage facilities at Badoura Nursery; construct, furnish, and equip greenhouse and laboratory facilities at General Andrews Nursery site to support expanded tree improvement operations; and to upgrade irrigation and artificial propagation bed infrastructure at the General Andrews Nursery site.

Sec. 5. AGRICULTURE

$325,000

To the commissioner of agriculture for a grant to the Aitkin County Agricultural Society to predesign, design, construct, furnish, and equip a shared food service building that can be separated into three smaller food preparation areas. This appropriation does not require a nonstate contribution.

Sec. 6. PUBLIC SAFETY

$225,000

To the commissioner of public safety for a grant to the city of Cyrus to acquire land for and to predesign, design, construct, furnish, and equip a facility to accommodate the city hall with community meeting space and the fire department. This appropriation does not require a nonstate contribution.

Sec. 7. TRANSPORTATION

Subdivision 1. Total Appropriation

$74,250,000

To the commissioner of transportation for the purposes specified in this section.

Subd. 2. Local Bridge Replacement and Rehabilitation

21,750,000

To match federal money and to replace or rehabilitate local deficient bridges as provided in Minnesota Statutes, section 174.50. To the extent practicable, the commissioner shall expend the funds as provided under Minnesota Statutes, section 174.50, subdivision 6a, 6b, or 6c.

$11,750,000 of this appropriation is for a grant to Hennepin County to restore and recondition the Franklin Avenue Bridge. This appropriation is not available until the commissioner of management and budget determines that at least $16,500,000 is committed to the project from nonstate sources.

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Subd. 3. Local Road Improvement Fund Grants

49,500,000

(a) For construction and reconstruction of local roads with statewide or regional significance under Minnesota Statutes, section 174.52, subdivision 4, or for grants to counties to assist in paying the costs of rural road safety capital improvement projects on county state-aid highways under Minnesota Statutes, section 174.52, subdivision 4a.

(b) This appropriation includes funding for the following projects:

(1) a grant to the city of Richfield for the 77th Street underpass project;

(2) a grant to Anoka County for the U.S. Highway 10 and County State-Aid Highway 83 (Armstrong Boulevard) project;

(3) a grant to Ramsey County for the road improvements related to the Twin Cities Army Ammunition Plant redevelopment project; and

(4) a grant for $250,000 to Pine Lake Township in Otter Tail County for improvements to Nitche Lake Road between County Road 8 and County Road 53 in Pine Lake Township.

(c) Of this appropriation, $11,448,000 is for materials and supplies related to road repair resulting from effects of the 2013-2014 winter season. By September 1, 2014, the commissioner shall apportion funds to counties in the same manner as county state-aid highway funds provided for calendar year 2014 under Minnesota Statutes, section 162.07; and $3,552,000 is for materials and supplies related to road repair resulting from effects of the 2013-2014 winter season. By September 1, 2014, the commissioner shall apportion funds to cities in the same manner as municipal state-aid street funds provided for calendar year 2014 under Minnesota Statutes, section 162.13.

Subd. 4. Safe Routes to School

1,000,000

For grants under Minnesota Statutes, section 174.40.

Subd. 5. Port Development Assistance

2,000,000

For grants under Minnesota Statutes, chapter 457A. Any improvements made with the proceeds of these grants must be publicly owned.

Sec. 8. METROPOLITAN COUNCIL

Subdivision 1. Total Appropriation

$2,518,000

To the Metropolitan Council for the purposes specified in this section.

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Subd. 2. Maplewood - Fish Creek Trail

318,000

For a grant to the city of Maplewood to acquire and develop approximately 70 acres of land along Fish Creek to be included within the Fish Creek Natural Greenway, a park of regional and historical significance located in Ramsey County within the Mississippi National River and Recreation Area. This appropriation is not available until the commissioner of management and budget determines that an amount sufficient to complete the acquisition is committed to the project from nonstate sources.

Subd. 3. I-35E Pedestrian Shared Use Walkway

200,000

For a grant to the city of St. Paul to construct a pedestrian shared use walkway on the east side of I-35E from Arlington Avenue to Cuyuga Street. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

Subd. 4. West St. Paul - North Urban Regional Trail Bridge

2,000,000

For a grant to the city of West St. Paul to predesign, design, and construct a pedestrian bridge for the North Urban Regional Trail as an overpass of Robert Street in the area near Wentworth Avenue in West St. Paul. This appropriation may also be used to acquire property or purchase rights-of-way needed for bridge construction. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been committed to the project from nonstate sources.

Sec. 9. HUMAN SERVICES

Subdivision 1. Total Appropriation

$46,512,000

To the commissioner of administration, or another named agency, for the purposes specified in this section.

Subd. 2. Minnesota Security Hospital - St. Peter

41,317,000

(a) To design and perform asbestos and hazardous materials abatement and demolition; to complete the design of, and to construct, furnish, and equip the first phase of a two-phase project to remodel existing, and to develop new residential, program, activity, and ancillary facilities for the Minnesota Security Hospital on the upper campus of the St. Peter Regional Treatment Center. This appropriation includes funding to design the second phase of the project. Upon substantial completion of the first phase of this project, any unspent portion of this appropriation is available to design, perform asbestos and hazardous materials abatement, perform demolition, and to construct, renovate, furnish, and equip the second phase.

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(b) The commissioner of human services shall promulgate rules to establish new licensing requirements and a new licensing category for maximum security units at the Minnesota Security Hospital at St. Peter no later than July 1, 2015.

Subd. 3. Early Childhood Learning and Child Protection Facilities

5,000,000

To the commissioner of human services for grants under Minnesota Statutes, section 256E.37, to construct and rehabilitate early childhood learning and child protection facilities. Notwithstanding the limits on grant amounts in Minnesota Statutes, section 256E.37, a grant from this appropriation for an individual facility may be for up to $1,000,000.

Notwithstanding the limitations on grant amounts in Minnesota Statutes, section 256E.37, or this subdivision, $3,000,000 of this appropriation is for a grant to Hennepin County to predesign, design, renovate, furnish, and equip the early childhood center at the YWCA of Minneapolis. The grant to Hennepin County is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

Subd. 4. Advocating for Change Together

195,000

For grave markers or memorial monuments for the Remembering with Dignity Project as administered by the organization Advocating for Change Together for unmarked graves on public land of deceased residents of state hospitals or regional treatment centers.

Sec. 10. EMPLOYMENT AND ECONOMIC DEVELOPMENT

$500,000

To the commissioner of employment and economic development for Innovative Business Development Public Infrastructure Grants under Minnesota Statutes, section 116J.435.

Sec. 11. MINNESOTA HISTORICAL SOCIETY

$1,868,000

To the Minnesota Historical Society to be allocated to county and local jurisdictions as matching money for historic preservation projects of a capital nature, as provided in Minnesota Statutes, section 138.0525.

Sec. 12. Minnesota Statutes 2012, section 12A.16, subdivision 5, is amended to read:

Subd. 5. Waivers authorized. The requirements of section 174.50, subdivisions 5~~, 6, 6a, and~~ to 7, are waived for grants under subdivision 3.

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Sec. 13. Minnesota Statutes 2012, section 174.50, subdivision 6b, is amended to read:

Subd. 6b. Bridge ~~engineering and design~~ costs in smaller cities. ~~Until June 30, 2007,~~ (a) The commissioner may make grants from the state transportation fund to a home rule or statutory city with a population of 5,000 or less ~~and a net tax capacity of under $200,000~~ for design ~~and preliminary~~, engineering, and construction of bridges on city streets.

(b) Grants under this subdivision are subject to the procedures and criteria established under subdivisions 5 ~~and~~, 6, and 7.

(1) 100 percent of the design and ~~preliminary~~ engineering costs that are in excess of $10,000;

(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and

(3) 100 percent of the bridge construction work costs.

~~Total grants under this subdivision to all cities may not exceed $200,000.~~

Sec. 14. Minnesota Statutes 2012, section 174.50, subdivision 7, is amended to read:

Subd. 7. Bridge grant program ~~requirements~~; rulemaking. (a) The commissioner of transportation shall develop rules, procedures for application for grants, conditions of grant administration, standards, and criteria as provided under subdivision 6, including bridge specifications, in cooperation with road authorities of political subdivisions, for use in the administration of funds appropriated to the commissioner and for the administration of grants to subdivisions.

(b) The maximum use of standardized bridges is encouraged. Regardless of the size of the existing bridge, a bridge or replacement bridge is eligible for assistance from the state transportation fund if a hydrological survey indicates that the bridge or replacement bridge must be ten feet or more in length.

(c) As part of the standards or rules, the commissioner shall, in consultation with local road authorities, establish a minimum distance between any two bridges that cross over the same river, stream, or waterway, so that only one of the bridges is eligible for a grant under this section. As appropriate, the commissioner may establish exceptions from the minimum distance requirement or procedures for obtaining a variance.

(d) Political subdivisions may use grants made under this section to construct or reconstruct bridges, including but not limited to:

(1) matching federal aid grants to construct or reconstruct key bridges;

(2) paying the costs to abandon an existing bridge that is deficient and in need of replacement but where no replacement will be made; and

(3) paying the costs to construct a road or street to facilitate the abandonment of an existing bridge if the commissioner determines that the bridge is deficient, and that construction of the road or street is more economical than replacement of the existing bridge.

(e) Funds appropriated to the commissioner from the Minnesota state transportation fund shall be segregated from the highway tax user distribution fund and other funds created by article XIV of the Minnesota Constitution.

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Sec. 15. Minnesota Statutes 2012, section 174.52, subdivision 3, is amended to read:

Subd. 3. Advisory committee. (a) The commissioner shall establish an a local road improvement program advisory committee consisting of five members, including:

(1) one county commissioner;

(2) one county engineer;

(3) one city engineer;

(4) one city council member or city administrator representing a city with a population over 5,000; and

(5) one city council member or city administrator representing a city with a population under 5,000.

(b) The advisory committee shall provide recommendations to the commissioner regarding expenditures from the ~~trunk highway corridor projects account~~ accounts established in this section.

~~(b)~~ (c) Notwithstanding section 15.059, subdivision 5, the committee does not expire.

Sec. 16. Minnesota Statutes 2012, section 462A.37, subdivision 2, is amended to read:

Subd. 2. Authorization. (a) The agency may issue up to $30,000,000 in aggregate principal amount of housing infrastructure bonds in one or more series to which the payment made under this section may be pledged. The housing infrastructure bonds authorized in this subdivision may be issued to fund loans, on terms and conditions the agency deems appropriate, made for one or more of the following purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned housing to be used for affordable rental housing and the costs of new construction of rental housing on abandoned or foreclosed property where the existing structures will be demolished or removed;

(3) to finance that portion of the costs of acquisition of ~~abandoned or foreclosed~~ property that is attributable to the land to be leased by community land trusts to low- and moderate-income homebuyers, and to the extent feasible, projects should help mitigate racial disparities in homeownership rates and promote economic integration; and

(4) to finance the costs of acquisition and rehabilitation of federally assisted rental housing and for the refinancing of costs of the construction, acquisition, and rehabilitation of federally assisted rental housing, including providing funds to refund, in whole or in part, outstanding bonds previously issued by the agency or another government unit to finance or refinance such costs.

(b) Among comparable proposals for permanent supportive housing, preference shall be given to permanent supportive housing for veterans and other individuals or families who:

(1) either have been without a permanent residence for at least 12 months or at least four times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least four times in the last three years.

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(c) Among comparable proposals for acquisition of land to be leased by community land trusts, the agency shall give preference to the acquisition of abandoned or foreclosed property and the acquisition of property located in a foreclosure priority area identified by the agency. Proposals for the acquisition of property that is not foreclosed or abandoned or in a foreclosure priority area must include a rationale for not targeting foreclosed or abandoned properties or properties in foreclosure priority areas.

EFFECTIVE DATE. This section is effective the day following final enactment for bonds authorized in 2014 and thereafter.

Sec. 17. Minnesota Statutes 2012, section 462A.37, is amended by adding a subdivision to read:

Subd. 2a. Additional authorization. In addition to the amount authorized in subdivision 2, the agency may issue up to $80,000,000 of housing infrastructure bonds in one or more series to which the payments made under this section may be pledged.

Sec. 18. Minnesota Statutes 2012, section 462A.37, is amended by adding a subdivision to read:

Subd. 5. Additional appropriation. (a) The agency must certify annually to the commissioner of management and budget the actual amount of annual debt service on each series of bonds issued under subdivision 2a.

(b) Each July 15, beginning in 2016 and through 2037, if any housing infrastructure bonds issued under subdivision 2a remain outstanding, the commissioner of management and budget must transfer to the housing infrastructure bond account established under section 462A.21, subdivision 32, the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts necessary to make the transfers are appropriated from the general fund to the commissioner of management and budget.

(c) The agency may pledge to the payment of the housing infrastructure bonds the payments to be made by the state under this section.

Sec. 19. APPROPRIATIONS GIVEN EFFECT ONCE.

If an appropriation in this act is enacted more than once in the 2014 legislative session for the same purpose, the appropriation must be given effect only once. If the appropriations for the same purpose are for different amounts, the lowest of the amounts is the one to be given effect.

Sec. 20. EFFECTIVE DATE.

Except as otherwise provided, this act is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to capital investment; appropriating money for capital improvement projects; modifying grant programs; authorizing the Housing Finance Agency to issue housing infrastructure bonds; amending Minnesota Statutes 2012, sections 12A.16, subdivision 5; 174.50, subdivisions 6b, 7; 174.52, subdivision 3; 462A.37, subdivision 2, by adding subdivisions."

With the recommendation that when so amended the bill be re-referred to the Committee on Rules and Legislative Administration.

The report was adopted.

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Carlson from the Committee on Ways and Means to which was referred:

H. F. No. 2490, A bill for an act relating to capital investment; authorizing spending to acquire and better public land and buildings and other improvements of a capital nature with certain conditions; modifying previous appropriations; establishing new programs and modifying existing programs; authorizing the use of negotiated sales; authorizing the sale and issuance of state bonds; appropriating money; amending Minnesota Statutes 2012, sections 12A.16, subdivision 5; 16A.641, by adding a subdivision; 16A.642, subdivisions 1, 2; 134.45, subdivision 5b; 135A.034, subdivision 2; 174.50, subdivisions 6b, 7; 174.52, subdivision 3; Laws 2008, chapter 179, section 16, subdivision 5; Laws 2009, chapter 93, article 1, section 11, subdivision 4; Laws 2010, chapter 189, sections 15, subdivision 5; 21, subdivision 11; Laws 2012, First Special Session chapter 1, article 1, section 9, subdivision 3; article 2, section 4, subdivision 2; Laws 2013, chapter 136, sections 4; 7; proposing coding for new law in Minnesota Statutes, chapter 116J.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

APPROPRIATIONS

Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

The sums shown in the column under "Appropriations" are appropriated from the bond proceeds fund, or another named fund, to the state agencies or officials indicated, to be spent for public purposes. Appropriations of bond proceeds must be spent as authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public land and buildings and other public improvements of a capital nature, or as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless otherwise specified, money appropriated in this act for a capital program or project may be used to pay state agency staff costs that are attributed directly to the capital program or project in accordance with accounting policies adopted by the commissioner of management and budget. Unless otherwise specified, the appropriations in this act are available until the project is completed or abandoned subject to Minnesota Statutes, section 16A.642. Unless otherwise specified in this act, money appropriated in this act for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046, should not be used for projects that can be financed within a reasonable time frame under Minnesota Statutes, section 16B.322 or 16C.144.

SUMMARY

University of Minnesota		$119,497,000
Minnesota State Colleges and Universities		145,961,000
Education		13,491,000
Minnesota State Academies		11,654,000
Perpich Center for Arts Education		2,000,000
Natural Resources		59,150,000
Agriculture		203,000
Pollution Control Agency		2,625,000
Board of Water and Soil Resources		20,400,000
Zoological Garden		4,250,000
Administration		128,000,000
Minnesota Amateur Sports Commission		7,973,000
Public Safety		4,590,000
Military Affairs		3,224,000
Journal of the House - 99th Day - Wednesday, May 7, 2014 - Top of Page 10358 Transportation		10,600,000
Metropolitan Council		57,486,000
Human Services		7,470,000
Veterans Affairs		2,555,000
Corrections		28,745,000
Employment and Economic Development		14,450,000
Public Facilities Authority		45,067,000
Housing Finance Agency		20,000,000
Minnesota Historical Society		11,957,000
Iron Range Resources and Rehabilitation Board		4,995,000
Grants to Political Subdivisions		174,885,000
Bond Sale Expenses		900,000
Cancellations		(7,494,000)

TOTAL		$894,654,000

Bond Proceeds Fund (General Fund Debt Service)		843,003,000
Bond Proceeds Fund (User Financed Debt Service)		48,654,000
Maximum Effort School Loan Fund		10,491,000
Bond Proceeds Cancellations		(7,494,000)

APPROPRIATIONS

Sec. 2. UNIVERSITY OF MINNESOTA

Subdivision 1. Total Appropriation

$119,497,000

To the Board of Regents of the University of Minnesota for the purposes specified in this section.

Subd. 2. Minneapolis; Tate Laboratory Renovation

56,700,000

To design, renovate, furnish, and equip the Tate Laboratory of Physics building on the Minneapolis campus for the College of Science and Engineering.

Subd. 3. Crookston; Wellness Center

1,130,000

To predesign and design the renovation of the campus wellness and recreational center on the Crookston Campus.

Subd. 4. Research Laboratories

8,667,000

To design, construct, furnish, and equip a new bee research facility and to design, renovate, furnish, and equip the aquatic invasive species research laboratory.

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Subd. 5. Duluth; Chemical Sciences and Advanced Materials Building

1,500,000

To predesign and design a new facility to meet the research and undergraduate instruction needs of the Swenson College of Science and Engineering on the Duluth campus.

Subd. 6. James Ford Bell Natural History Museum and Planetarium

51,500,000

To complete the design of and to construct, furnish, and equip a new James Ford Bell Natural History Museum and Planetarium on the St. Paul campus.

Subd. 7. University Share

Except for the appropriations for HEAPR and the Bell Museum, the appropriations in this section are intended to cover approximately two-thirds of the cost of each project. The remaining costs must be paid from university sources.

Subd. 8. Unspent Appropriations

Upon substantial completion of a project authorized in this section and after written notice to the commissioner of management and budget, the Board of Regents must use any money remaining in the appropriation for that project for HEAPR under Minnesota Statutes, section 135A.046. The Board of Regents must report by February 1 of each even-numbered year to the chairs of the house of representatives and senate committees with jurisdiction over capital investment and higher education finance, and to the chairs of the house of representatives Ways and Means Committee and the senate Finance Committee, on how the remaining money has been allocated or spent.

Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

Subdivision 1. Total Appropriation

$145,961,000

To the Board of Trustees of the Minnesota State Colleges and Universities for the purposes specified in this section.

Subd. 2. Metropolitan State University

35,865,000

To complete the design of and to construct, furnish, and equip the Science Education Center, and renovate, furnish, and equip space in the new main building.

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Subd. 3. Bemidji State University

13,790,000

To complete design and renovate, construct an addition to, furnish, and equip Memorial Hall; to design and renovate, furnish, and equip Decker Hall; to demolish Sanford Hall; and to design the demolition and replacement of Hagg Sauer Hall.

Subd. 4. Lake Superior College

5,266,000

To complete design, renovate, furnish, and equip the allied health and science classroom, lab, and clinic space in the 1986 wing of the E building.

Subd. 5. Minneapolis Community and Technical College

3,600,000

To design and renovate classroom and lab space, and upgrade HVAC, security systems, and facility exteriors.

Subd. 6. St. Paul College

1,500,000

To design, renovate, furnish, and equip classroom and lab space for the culinary arts and computer numerical control/machine tool programs.

Subd. 7. Minnesota State College - Southeast Technical

1,200,000

To design, renovate, repurpose, furnish, and equip classroom and lab space on the Winona campus.

Subd. 8. Minnesota State University - Mankato

25,818,000

To complete design, construct, furnish, and equip a clinical science building.

Subd. 9. Minnesota State Community and Technical College - Moorhead

6,544,000

To design, renovate, demolish obsolete space, construct an addition, and furnish and equip the transportation center.

Subd. 10. Rochester Community and Technical College

1,000,000

To design the demolition of Memorial and Plaza Halls and the renovation and relocation of associated classrooms and office spaces.

Subd. 11. Century College

2,020,000

To design, renovate, repurpose, furnish, and equip classroom and lab space for high-demand technical programs including a digital fabrication lab and solar panels.

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Subd. 12. Northeast Higher Education District

3,344,000

To design, renovate, furnish, and equip Wilson Hall and construct a biomass boiler system on the Itasca campus; to design, renovate, furnish, and equip the clinical nursing lab on the Rainy River campus; to design, renovate, furnish, and equip classroom and lab space on the Vermilion campus; and to design the demolition of and to demolish obsolete space, and to design, renovate, furnish, and equip space on the Hibbing campus.

Subd. 13. Winona State University

22,200,000

To design, renovate, remodel, furnish, and equip classrooms for the Education Village project, which includes Wabasha Hall, Wabasha Rec, and the Cathedral School.

Subd. 14. St. Paul College

14,482,000

To complete the design of and construct the health and science alliance center addition and to renovate, furnish, and equip existing health and West Tower spaces.

Subd. 15. Century College

1,000,000

To design the renovation and construction of flexible, multiuse classrooms and labs for workforce programs.

Subd. 16. South Central College - North Mankato

7,467,000

To design, renovate, renew, furnish, and equip laboratory, classroom, and office spaces on the North Mankato campus, including asbestos abatement, roof replacement, and HVAC upgrades.

Subd. 17. St. Cloud State University

865,000

To design the renovation of Eastman Hall to relocate student health services and academic programs into the renovated Eastman Hall.

Subd. 18. Debt Service

(a) Except as provided in paragraph (b), the Board of Trustees shall pay the debt service on one-third of the principal amount of state bonds sold to finance projects authorized by this section. After each sale of general obligation bonds, the commissioner of management and budget shall notify the board of the amounts assessed for each year for the life of the bonds.

(b) The board need not pay debt service on bonds sold to finance HEAPR. Where a nonstate match is required, the debt service is due on a principal amount equal to one-third of the total project cost, less the match committed before the bonds are sold.

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(c) The commissioner of management and budget shall reduce the board's assessment each year by one-third of the net income from investment of general obligation bond proceeds in proportion to the amount of principal and interest otherwise required to be paid by the board. The board shall pay its resulting net assessment to the commissioner of management and budget by December 1 each year. If the board fails to make a payment when due, the commissioner of management and budget shall reduce allotments for appropriations from the general fund otherwise available to the board and apply the amount of the reduction to cover the missed debt service payment. The commissioner of management and budget shall credit the payments received from the board to the bond debt service account in the state bond fund each December 1 before money is transferred from the general fund under Minnesota Statutes, section 16A.641, subdivision 10.

Subd. 19. Unspent Appropriations

(a) Upon substantial completion of a project authorized in this section and after written notice to the commissioner of management and budget, the board must use any money remaining in the appropriation for that project for HEAPR under Minnesota Statutes, section 135A.046. The Board of Trustees must report by February 1 of each even-numbered year to the chairs of the house of representatives and senate committees with jurisdiction over capital investment and higher education finance, and to the chairs of the house of representatives Ways and Means Committee and the senate Finance Committee, on how the remaining money has been allocated or spent.

(b) The unspent portion of an appropriation for a project in this section that is complete is available for HEAPR under this subdivision, at the same campus as the project for which the original appropriation was made and the debt service requirement under subdivision 18 is reduced accordingly. Minnesota Statutes, section 16A.642, applies from the date of the original appropriation to the unspent amount transferred.

Sec. 4. EDUCATION

Subdivision 1. Total Appropriation

$13,491,000

To the commissioner of education or another named agency for the purposes specified in this section.

Subd. 2. Independent School District No. 38, Red Lake

10,491,000

From the maximum effort school loan fund for a capital loan to Independent School District No. 38, Red Lake, as provided in Minnesota Statutes, sections 126C.60 to 126C.72. Of this appropriation, $5,491,000 is to complete design and construction

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of, furnish, and equip a single kitchen and cafeteria to serve the high school and middle school, and $5,000,000 is to complete design, renovation, and construction of, furnish, and equip Red Lake Elementary School. Before any capital loan contract is approved under this authorization, the district must provide documentation acceptable to the commissioner on how the capital loan will be used.

Subd. 3. Library Construction Grants

3,000,000

For library construction grants under Minnesota Statutes, section 134.45.

Sec. 5. MINNESOTA STATE ACADEMIES

Subdivision 1. Total Appropriation

$11,654,000

To the commissioner of administration for the purposes specified in this section.

Subd. 2. Asset Preservation

1,000,000

For capital asset preservation improvements and betterments on both campuses of the Minnesota State Academies, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 3. New Residence Hall

10,654,000

To complete the design of and perform asbestos and hazardous materials abatement and demolition of Frechette Hall and to design, construct, furnish, and equip a new boys' dormitory on the Minnesota State Academy for the Deaf campus.

Sec. 6. PERPICH CENTER FOR ARTS EDUCATION

$2,000,000

To the commissioner of administration for capital asset preservation improvements and betterments at the Perpich Center for Arts Education, to be spent in accordance with Minnesota Statutes, section 16B.307. This appropriation includes money to renovate the restrooms in the east wing of the administration building.

Sec. 7. NATURAL RESOURCES

Subdivision 1. Total Appropriation

$59,150,000

To the commissioner of natural resources for the purposes specified in this section.

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The appropriations in this section are subject to the requirements of the natural resources capital improvement program under Minnesota Statutes, section 86A.12, unless this section or the statutes referred to in this section provide more specific standards, criteria, or priorities for projects than Minnesota Statutes, section 86A.12.

Subd. 2. Natural Resources Asset Preservation

10,000,000

For the renovation of state-owned facilities and recreational assets operated by the commissioner of natural resources to be spent in accordance with Minnesota Statutes, section 84.946. Notwithstanding section 84.946, the commissioner may use this appropriation to replace buildings if, considering the embedded energy in the building, that is the most energy-efficient and carbon-reducing method of renovation.

Subd. 3. Buildings and Facilities Development

2,000,000

To predesign buildings in Bemidji, Rochester, and a lab/necropsy facility; and to replace buildings that are in poor condition, outdated, and no longer support the natural resource work.

Subd. 4. Dam Renovation, Repair, Removal

6,500,000

(a) To renovate or remove publicly owned dams. The commissioner shall determine project priorities as appropriate under Minnesota Statutes, sections 103G.511 and 103G.515.

(b) This appropriation includes up to $3,000,000 for a grant to the city of Champlin to repair and renovate the Champlin Mill Pond Dam. Notwithstanding the match requirements in section 103G.515, the grant to the city of Champlin does not require any nonstate match.

(c) $2,400,000 of this appropriation is for a grant to Blue Earth County to repair and renovate the Rapidan Dam. Notwithstanding the match requirements in section 103G.515, the grant to Blue Earth County does not require any nonstate match.

(d) $1,100,000 of this appropriation is for a grant to the city of Lanesboro to replace the Lanesboro Dam in Fillmore County. Notwithstanding Minnesota Statutes, section 103G.511, subdivision 3, or any other law to the contrary, this appropriation does not require a nonstate match.

Subd. 5. RIM Critical Habitat

3,000,000

To provide the state match for the critical habitat private sector matching account under Minnesota Statutes, section 84.943. This appropriation must be used only to acquire fee title.

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Subd. 6. State Trails Acquisition and Development

20,900,000

To acquire land for and to construct and renovate state trails under Minnesota Statutes, section 85.015. This appropriation includes funding for the following trail projects:

(1) $500,000 to acquire land for and develop approximately four miles of the Blazing Star Trail from Myre-Big Island State Park to Hayward;

(2) $2,000,000 is for the Camp Ripley/Veterans Trail;

(3) $500,000 is to develop and pave approximately five miles of the Casey Jones Trail in Pipestone County from County Road 16 through Woodstock and to improve the trailhead in Pipestone;

(4) $2,750,000 is for the Cuyuna Lakes Trail segment from Deerwood to Crosby and the Sagamore Unit of the Cuyuna Country State Recreation Area, to connect to the Paul Bunyan Trail and into Lum Park and then to the airport;

(5) $600,000 is to acquire land and develop the Gateway Trail from Pine Point Park in May Township into William O'Brien State Park;

(6) $1,700,000 is to acquire land and develop the Gitchi-Gami Trail from a Department of Transportation wayside rest on Trunk Highway 61 at Cutface Creek to the existing trail terminus on the west edge of Grand Marais;

(7) $1,500,000 is to acquire land and develop an approximately five mile spur from the Glacial Lakes Trail through New London and into Sibley State Park, including a separated grade crossing of Trunk Highway 71;

(8) $300,000 is to acquire land and develop a portion of the Goodhue Pioneer Trail;

(9) $3,100,000 is to design, develop, and complete the Heartland Trail from Detroit Lakes to Frazee, and to predesign the trail between Moorhead and Hawley. Any remaining portion of this amount may be used to fund the design and completion of other sections of the Heartland Trail, including from Park Rapids to Itasca State Park or from Hawley to Detroit Lakes;

(10) $2,000,000 is to pave approximately 28.5 miles of the Luce Line Trail from the Carver-McLeod County border to Cedar Mills in Meeker County;

(11) $550,000 is to acquire land and develop the Mill Towns Trail segment from Faribault to Dundas;

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(12) $400,000 is for the Minnesota River Trail between Mankato and St. Peter, and connections to the Sakatah Singing Hills State Trail and the Red Jacket Trail in Mankato;

(13) up to $2,500,000 is to develop the Minnesota Valley Trail from the Bloomington Ferry Bridge to the Minnesota Valley Wildlife Refuge Visitor Center in Bloomington; and

(14) $2,500,000 is to acquire land and develop approximately 11 miles of the Shooting Star Trail from Rose Creek to Austin.

The commissioner may allocate money not needed to complete a project listed in this section to another project listed in this section that may need additional money to be completed. For any project listed in this subdivision that the commissioner determines is not ready to proceed, the commissioner may reallocate that project's money to another state trail project described in this section or other state trail infrastructure. The chairs of the house of representatives and senate committees with jurisdiction over environment and natural resources and legislators from the affected legislative districts must be notified of any changes.

Subd. 7. Scientific and Natural Areas Acquisition and Development

2,000,000

To acquire land identified by the commissioner as targeted sites for potential acquisition for scientific and natural areas under Minnesota Statutes, sections 84.033 and 86A.05, subdivision 5, and for protection and improvements of a capital nature in scientific and natural areas.

Subd. 8. Aquatic Management Area Acquisition and Development

1,000,000

To acquire land in fee for aquatic management area purposes and for improvements of a capital nature to develop, protect, or improve habitat and facilities on wildlife management areas under Minnesota Statutes, section 86A.05, subdivision 14.

Subd. 9. Central Minnesota Regional Parks

500,000

For a grant to the city of Sartell to acquire up to 68 acres of land located along the Sauk River near the confluence of the Mississippi to serve as part of the Central Minnesota Regional Parks and Trails.

Subd. 10. Fort Snelling Upper Post, Paths

500,000

To design and construct bicycle and pedestrian paths between the Fort Snelling light rail transit station and historic Fort Snelling and the upper post area.

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Subd. 11. Red River Recreation Area

250,000

To improve campground utilities in the Red River Recreation Area in the city of East Grand Forks. These improvements may include expansion of camping amenities in the form of full hookups, which include water, electricity, and sewage, but the appropriation does not include funding of a swimming pool.

Subd. 12. Fountain Lake Restoration

7,500,000

For a grant to the Shell Rock River Watershed District for sediment removal and cleanup of Fountain Lake, including engineering, design, permitting, and land acquisition for deposit of removed sediment.

Subd. 13. Native Prairie Bank Acquisition and Development

2,000,000

To acquire native prairie bank easements under Minnesota Statutes, section 84.96, to develop and restore certain tracts of prairie bank lands.

Subd. 14. Groundwater Monitoring and Observation Wells

1,000,000

To install groundwater monitoring wells for multiple groundwater quantity and quality monitoring purposes by state agencies, as scientifically and practically appropriate, with preference given to placing monitoring wells in groundwater management areas.

Subd. 15. James Ford Bell Museum

2,000,000

To design and construct outdoor classroom space and landscapes representing Minnesota biomes at the new James Ford Bell Museum of Natural History on the St. Paul campus of the University of Minnesota.

Subd. 16. State Forest Campground Connection to Sewer System

The commissioner must provide for the state forest campground in Kabetogama Township to be connected to a public sewage treatment system within the Voyageurs National Park Clean Water Joint Powers Board's jurisdiction, when one is constructed and operational.

Subd. 17. Unspent Appropriations

The unspent portion of an appropriation for a project in this section that is complete, upon written notice to the commissioner of management and budget, is available for asset preservation under Minnesota Statutes, section 84.946. Minnesota Statutes, section 16A.642, applies from the date of the original appropriation to the unspent amount transferred.

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Sec. 8. AGRICULTURE

$203,000

To the commissioner of agriculture to design, reconstruct, and equip the feed storage and grinding rooms in the Agriculture Laboratory.

Sec. 9. POLLUTION CONTROL AGENCY

$2,625,000

To the Pollution Control Agency for a solid waste capital assistance grant under Minnesota Statutes, section 115A.54, to Becker County to design and construct a waste transfer facility and a material recovery facility. This amount includes 75 percent of the cost of the transfer station and 50 percent of the cost of a material recovery facility. This appropriation is not available until the commissioner of management and budget determines that an amount sufficient to complete the project is committed from nonstate sources.

Sec. 10. BOARD OF WATER AND SOIL RESOURCES

Subdivision 1. Total Appropriation

$20,400,000

To the Board of Water and Soil Resources for the purposes specified in this section.

Subd. 2. Reinvest in Minnesota (RIM) Reserve Program

15,000,000

(a) To acquire conservation easements from landowners to preserve, restore, create, and enhance wetlands and associated uplands of prairie and grasslands, and restore and enhance rivers and streams, riparian lands, and associated uplands of prairie and grasslands in order to protect soil and water quality, support fish and wildlife habitat, reduce flood damage, and provide other public benefits. The provisions of Minnesota Statutes, section 103F.515, apply to this program.

(b) The board shall give priority to leveraging federal funds by enrolling targeted new lands or enrolling environmentally sensitive lands that have expiring federal conservation agreements.

(c) The board is authorized to enter into new agreements and amend past agreements with landowners as required by Minnesota Statutes, section 103F.515, subdivision 5, to allow for restoration. Of this appropriation, up to five percent may be used for restoration and enhancement.

Subd. 3. Local Government Roads Wetland Replacement Program

5,400,000

To acquire land or permanent easements and to restore, create, enhance, and preserve wetlands to replace those wetlands drained or filled as a result of the repair, reconstruction, replacement, or rehabilitation of existing public roads as required by Minnesota

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Statutes, section 103G.222, subdivision 1, paragraphs (l) and (m). The board may vary the priority order of Minnesota Statutes, section 103G.222, subdivision 3, paragraph (a), to implement an in-lieu fee agreement approved by the U.S. Army Corps of Engineers under Section 404 of the Clean Water Act. The purchase price paid for acquisition of land or perpetual easement must be a fair market value as determined by the board. The board may enter into agreements with the federal government, other state agencies, political subdivisions, nonprofit organizations, fee title owners, or other qualified private entities to acquire wetland replacement credits in accordance with Minnesota Rules, chapter 8420.

Sec. 11. MINNESOTA ZOOLOGICAL GARDENS

$4,250,000

To the Minnesota Zoological Garden Board for capital asset preservation improvements and betterments to infrastructure and exhibits at the Minnesota Zoo, to be spent in accordance with Minnesota Statutes, section 16B.307.

Sec. 12. ADMINISTRATION

Subdivision 1. Total Appropriation

$128,000,000

To the commissioner of administration for the purposes specified in this section.

Subd. 2. Capitol Renovation and Restoration, Continued

126,300,000

This appropriation may be used for one or more of the following purposes:

(1) To complete the design of, and to construct, repair, improve, renovate, restore, furnish, and equip, the State Capitol building and grounds including, but not limited to, exterior stone repairs and window replacement; asbestos and hazardous materials abatement; mechanical, electrical, and plumbing; security systems replacement; general construction including, but not limited to, demolition, site improvements, life safety improvements, accessibility, security, and telecommunications; roof replacement; assessment and conservation of works of art; and finish work.

(2) To predesign, design, conduct hazardous materials abatement, construct, repair, renovate, remodel, and furnish and equip the State Office Building, Administration Building, Centennial Office Building, 321 Grove Street buildings, and such other properties located on the Capitol campus as determined by the commissioner to meet temporary and permanent office, broadcast media, storage, parking, and other space needs occasioned by and in furtherance of an efficient restoration of the State Capitol building and for the efficient and effective function of the tenants currently located in the State Capitol building.

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This appropriation is in addition to the appropriations in Laws 2012, chapter 293, section 13, subdivision 3, and Laws 2013, chapter 136, section 3.

Subd. 3. Capital Asset Preservation and Replacement Account

1,000,000

To be spent in accordance with Minnesota Statutes, section 16A.632.

Subd. 4. Minnesota Hmong-Lao Veterans Memorial

450,000

To complete design of and construct a memorial in the Capitol Area to honor all Hmong-Lao veterans of the war in Laos who were allied with the American forces during the Vietnam War. This appropriation is not available until the commissioner of management and budget has determined that at least $100,000 has been committed to the project from nonstate sources. Nonstate funds provided for this project may also be used to fund only its proportional share of new sidewalks leading to monuments in the Capitol Area.

Subd. 5. Minnesota Workers Memorial

250,000

For capital improvements to the Minnesota Workers Memorial on the grounds of the State Capitol.

Sec. 13. MINNESOTA AMATEUR SPORTS COMMISSION

Subdivision 1. Total Appropriation

$7,973,000

To the Minnesota Amateur Sports Commission for the purposes specified in this section.

Subd. 2. Southwest Regional Amateur Sports Center

4,298,000

For a grant to the city of Marshall to acquire land and prepare a site for, and to predesign, design, construct, furnish, and equip the Southwest Regional Amateur Sports Center in Marshall. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount is committed to the project from nonstate sources.

Subd. 3. National Sports Center Expansion

3,200,000

To acquire land and prepare a site for and to design, construct, and equip parking lots, roads, athletic fields, and other infrastructure necessary for expansion of tournament fields at the National Sports Center in Blaine.

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Subd. 4. Asset Preservation

475,000

For asset preservation improvements and betterments of a capital nature at the National Sports Center in Blaine, to be spent in accordance with Minnesota Statutes, section 16B.307, including life safety improvements, emergency roof and wall repair, and to replace lighting systems on the National Sports Center campus.

Sec. 14. PUBLIC SAFETY

Subdivision 1. Total Appropriation

$4,590,000

To the commissioner of public safety for the purposes specified in this section.

Subd. 2. Cottage Grove - HERO Center

1,460,000

For a grant to the city of Cottage Grove to predesign and design a Health and Emergency Response Occupations (HERO) Center at 12600 Ravine Parkway in Cottage Grove. This appropriation is not available until the commissioner of management and budget determines that the cities of Cottage Grove and Woodbury and the Board of Trustees of the Minnesota State Colleges and Universities have entered into an agreement for operation and management of the center, and that at least an equal amount is committed to the project from nonstate sources.

Subd. 3. Maplewood - East Metro Public Safety Training Center

1,800,000

For a grant to the city of Maplewood to complete the second half of the critical Class A burn building; construct the simulation/training building and related site work; purchase and install two additional gas-fired burn equipment props; and install site training equipment, props, and burn room liners for the East Metro Public Safety Training Center located in the city of Maplewood. This appropriation does not require any additional contributions from nonstate sources.

Subd. 4. Montgomery - Public Safety Facility

1,330,000

For a grant to the city of Montgomery to design, construct, furnish, and equip a public safety facility for fire and ambulance services in the city of Montgomery. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount is committed to the project from nonstate sources.

Sec. 15. MILITARY AFFAIRS

Subdivision 1. Total Appropriation

$3,244,000

To the adjutant general for the purposes specified in this section.

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Subd. 2. Asset Preservation

2,000,000

For asset preservation improvements and betterments of a capital nature at military affairs facilities statewide, to be spent in accordance with Minnesota Statutes, section 16B.307, including life safety improvements, correcting code deficiencies, and federal Americans with Disabilities Act (ADA) compliance activities. The adjutant general may also use these funds to expand the military parking lot at the armory in Owatonna.

Subd. 3. Brooklyn Park Armory

1,244,000

To renovate existing space, furnish, and equip the Brooklyn Park Armory. This appropriation may also be used to construct an addition to the armory if sufficient federal funds are committed to the project.

Sec. 16. TRANSPORTATION

Subdivision 1. Total Appropriation

$10,600,000

To the commissioner of transportation for the purposes specified in this section.

Subd. 2. Greater Minnesota Transit

1,350,000

For capital assistance for greater Minnesota transit systems to be used for transit capital facilities under Minnesota Statutes, section 174.24, subdivision 3c. Money from this appropriation may be used to pay up to 80 percent of the nonfederal share of these facilities. Of this appropriation:

(1) $1,100,000 is for a grant to the St. Cloud Metropolitan Transit Commission for phase I of the metro bus operations center vehicle storage addition and improvements project; and

(2) $250,000 is for a grant to the Kandiyohi Area Transit Joint Powers Board for an additional bus storage garage in Willmar.

Subd. 3. Railroad Warning Devices Replacement

1,750,000

(a) $1,250,000 for a grant to the city of Little Canada to design, construct, and equip highway-rail grade crossing warning devices and associated safety improvements.

(b) $500,000 is for a grant to the city of Shoreview to design, construct, and equip highway-rail grade crossing warning devices and associated safety improvements.

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(c) Upon request, the commissioner shall provide reasonable technical assistance to the cities of Little Canada and Shoreview in grade crossing project development and establishment of quiet zones.

Subd. 4. Passenger and Freight Rail

7,500,000

To implement capital improvements and betterments for intercity passenger rail projects as identified in the statewide freight and passenger rail plan under Minnesota Statutes, section 174.03, subdivision 1b, which are determined to be eligible for United States Department of Transportation funding. Notwithstanding any law to the contrary, a portion or phase of an intercity passenger rail project may be accomplished with one or more state appropriations and an intercity passenger rail project need not be completed with any one appropriation. Capital improvements and betterments include preliminary engineering, design, engineering, environmental analysis and mitigation, acquisition of land and right-of-way, and construction.

This appropriation includes money for passenger and freight rail projects necessary for system capacity improvements and betterments per Passenger Rail Investment and Improvement Act of 2008 guidance, if federal funds are committed to the overall project.

Sec. 17. METROPOLITAN COUNCIL

Subdivision 1. Total Appropriation

$57,486,000

To the Metropolitan Council for the purposes specified in this section.

Subd. 2. Transit Capital Improvement Program

14,586,000

(a) To advance transit in the metropolitan area in accordance with the Metropolitan Council's current Transportation Policy Plan and in consultation with the Counties Transit Improvement Board. This appropriation may be used by the Metropolitan Council or for grants to metropolitan area political subdivisions for preliminary engineering, engineering, environmental assessment, environmental work, design, right-of-way acquisition, and construction for the Lake Street and I-35W transit station in Minneapolis, for improvements to provide direct access to and from marked Trunk Highway 77 to the existing Metro Red Line Cedar Grove Transit Station in the city of Eagan, and in the following transitway corridors: Bottineau Boulevard, East 7th Street in St. Paul, I-94 Gateway, Penn Avenue North bus rapid transit, Red Line bus rapid transit, Red Rock, Riverview, Robert Street, Rush Line, and Snelling Avenue.

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(b) The council shall allocate transit capital development resources so as to achieve geographic balance within the region to the extent possible.

Subd. 3. Metropolitan Regional Parks and Trails Capital Improvements

8,000,000

For the cost of improvements and betterments of a capital nature and acquisition by the council and local government units of regional recreational open-space lands in accordance with the council's policy plan as provided in Minnesota Statutes, section 473.147. This appropriation must not be used to purchase easements.

This appropriation is for projects in the following locations: Coon Rapids Dam Regional Park, Anoka County Riverfront Regional Park, Hyland-Bush-Anderson Lakes Regional Park Reserve - West Bush Lake Park Unit, Lake Waconia Regional Park, Lebanon Hills Regional Park, regional parks and trails in Dakota County, North Creek Regional Greenway, Above the Falls Regional Park, Ridgway Parkway Regional Trail, parkways in various regional parks owned by the Minneapolis Park and Recreation Board, Keller Regional Park, Long Lake Regional Park, Phalen Regional Park, Lilydale Regional Park, Como Regional Park, Doyle-Kennefick Regional Park, and Silverwood Special Recreation Feature.

Subd. 4. Metropolitan Cities Inflow and Infiltration Grants

1,000,000

For grants to cities within the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2, for capital improvements in municipal wastewater collection systems to reduce the amount of inflow and infiltration to the Metropolitan Council's metropolitan sanitary sewer disposal system. Grants from this appropriation are for up to 50 percent of the cost to mitigate inflow and infiltration in the publicly owned municipal wastewater collection systems. To be eligible for a grant, a city must be identified by the council as a contributor of excessive inflow and infiltration in the metropolitan disposal system or have a measured flow rate within 20 percent of its allowable council-determined inflow and infiltration limits. The council must award grants based on applications from cities that identify eligible capital costs and include a timeline for inflow and infiltration mitigation construction, pursuant to guidelines established by the council.

Subd. 5. Inver Grove Heights - Heritage Village Park

3,500,000

For a grant to the city of Inver Grove Heights for public infrastructure improvements and land acquisition in and adjacent to the Heritage Village Park, the Mississippi River Trail, and the

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Rock Island Swing Bridge. These improvements will include but are not limited to motor vehicle access, utility service, stormwater treatment, and trail and sidewalk connections. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been committed to the project from nonstate sources.

Subd. 6. Fridley - Springbrook Nature Center

5,500,000

For a grant to the city of Fridley to predesign, design, construct, furnish, and equip the redevelopment and expansion of the Springbrook Nature Center. A nonstate match is not required.

Subd. 7. Minneapolis - Sculpture Garden Drainage Control

8,000,000

For a grant to the Minneapolis Park and Recreation Board to predesign, design, and construct renovation of the Minneapolis Sculpture Garden, which displays art owned by the Walker Art Center, subject to Minnesota Statutes, section 16A.695. The complete renovation will include improving irrigation, drainage, the parking lot, security, granite substructures, concrete, and fixtures, in order to update them with more ecologically sustainable options that are less expensive to maintain; increasing physical accessibility in accordance with the Americans with Disabilities Act; transplanting and replacing trees and plant materials; and improving the mechanical plant, piping, and flooring of the Cowles Conservatory to permit its flexible reuse in a way that is more ecologically sustainable and less expensive to maintain.

Subd. 8. St. Paul - Bruce Vento Nature Sanctuary Cultural Center

3,500,000

For a grant to the city of St. Paul to predesign, design, renovate, furnish, and equip the areas of the vacant four-story warehouse building at the Bruce Vento Nature Sanctuary in St. Paul that will be used for uses and programs that the city determines meet regional and city public and park purposes requirements. The city may enter into a lease or management agreement under Minnesota Statutes, section 16A.695, to operate the programs in the center. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

Subd. 9. St. Paul - Como Regional Park Access

5,400,000

For a grant to the city of St. Paul to predesign, design, and construct access and circulation improvements to Como Regional Park.

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Subd. 10. St. Paul - Como Zoo

6,000,000

For a grant to the city of St. Paul to design, construct, furnish, and equip renovations to exhibits at Como Zoo.

Subd. 11. Washington County - Hastings Bridge Trail Connection

2,000,000

For a grant to Washington County to design and construct pedestrian and bike trail crossings and connections linking the Washington County and Dakota County regional trail systems at the site of the new Highway 61 bridge over the Mississippi River in the city of Hastings.

Sec. 18. HUMAN SERVICES

Subdivision 1. Total Appropriation

$7,470,000

To the commissioner of administration, or another named agency, for the purposes specified in this section.

Subd. 2. Asset Preservation

3,000,000

For asset preservation improvements and betterments of a capital nature at Department of Human Services facilities statewide, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 3. Maplewood - Harriet Tubman Center East

720,000

For a grant to the city of Maplewood to complete renovation of and equip Harriet Tubman Center East to be used as a regional collaborative service center that includes a shelter for victims of violence and exploitation and their children, legal services, youth programs, mental and chemical health services, and community education. This appropriation does not require any nonstate match and is added to the appropriation in Laws 2012, chapter 293, section 18, subdivision 3, for the same purposes.

Subd. 4. Hennepin County - St. David's Center for Child and Family Development

3,750,000

To the commissioner of human services for a grant to Hennepin County to acquire land for and to predesign, design, construct, furnish, and equip the expansion and renovation of the St. David's Center for Child and Family Development, subject to Minnesota Statutes, section 16A.695. The center must be used to promote the public welfare by providing early childhood education and respite care, children's mental health services, pediatric rehabilitative therapies for children with special needs, support services for persons with disabilities, foster care placement, and other interventions for children who are at risk for poor developmental

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outcomes or maltreatment. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been expended or committed to the project from nonstate sources. Nonstate money spent on the project since January 1, 2011, shall be included in the determination of nonstate commitments to the project.

Sec. 19. VETERANS AFFAIRS

Subdivision 1. Total Appropriation

$2,555,000

To the commissioner of administration for the purposes specified in this section.

Subd. 2. Asset Preservation

1,500,000

For asset preservation improvements and betterments of a capital nature at the veterans homes in Fergus Falls, Hastings, Luverne, and Silver Bay, and the Little Falls veterans cemetery, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 3. Minneapolis Deep Tunnel

730,000

To complete the design of and perform repairs to stabilize the structural integrity of and waterproof the deep tunnel on the Minneapolis Veterans Homes campus. These funds may be used for asbestos and hazardous materials abatement related to this project.

Subd. 4. All Veterans Memorial

225,000

For a grant to Edina to design and construct the All Veterans Memorial in the city of Edina, in accordance with Minnesota Statutes, section 416.01. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been committed to the project from nonstate sources.

Subd. 5. North St. Paul - Veterans Memorial

100,000

For a grant to the city of North St. Paul to design and construct a memorial to those who have served or are presently in the military of the United States of America and those who have died while in the line of duty. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been committed to the project from nonstate sources.

Sec. 20. CORRECTIONS

Subdivision 1. Total Appropriation

$28,745,000

To the commissioner of administration for the purposes specified in this section.

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Subd. 2. Asset Preservation

2,000,000

For asset preservation improvements and betterments of a capital nature at Minnesota correctional facilities statewide, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 3. Minnesota Correctional Facility - Shakopee

5,187,000

To design, construct, and equip a perimeter security fence at the Minnesota Correctional Facility - Shakopee.

Subd. 4. Minnesota Correctional Facility - St. Cloud

18,000,000

To design, construct, furnish, and equip phase one of a new health services unit, a new service corridor and security station leading to the unit, and a mechanical building to serve the new health unit and associated utility infrastructure systems and site work; and to design phase two consisting of new intake, warehouse, and loading dock buildings associated utility infrastructure systems and sitework and all associated repurposing, including asbestos and hazardous materials abatement of interior spaces that were formally used for the occupancies being moved to the new phase one and two buildings at the Minnesota Correctional Facility in St. Cloud.

Subd. 5. Northeast Regional Corrections Center

3,558,000

For a grant to the Arrowhead Regional Corrections Joint Powers Board to design, construct, remodel, furnish, and equip the Northeast Regional Corrections Center campus buildings that support farm operations, educational programming, work readiness, and vocational training. Nonstate contributions to improvements at the center made before the enactment of this subdivision are considered to be sufficient match, and no further nonstate match is required.

Subd. 6. Unspent Appropriations

The unspent portion of an appropriation for a project in this section that is complete, upon written notice to the commissioner of management and budget, is available for asset preservation under Minnesota Statutes, section 16B.307, at the same correctional facility as the project for which the original appropriation was made. Minnesota Statutes, section 16A.642, applies from the date of the original appropriation to the unspent amount transferred.

Sec. 21. EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1. Total Appropriation

$14,450,000

To the commissioner of employment and economic development for the purposes specified in this section.

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Subd. 2. Greater Minnesota Business Development Public Infrastructure Grants

5,000,000

For grants under Minnesota Statutes, section 116J.431.

Subd. 3. Public Building Accessibility Grants

450,000

For grants under new Minnesota Statutes, section 116J.434.

Subd. 4. St. Paul - Minnesota Public Media Commons

9,000,000

For a grant to the city of St. Paul to renovate the Twin Cities Public Television Building in downtown St. Paul. This appropriation is not available until at least an equal amount is committed to the project from nonstate sources.

Sec. 22. PUBLIC FACILITIES AUTHORITY

Subdivision 1. Total Appropriation

$45,067,000

To the Public Facilities Authority for the purposes specified in this section.

Subd. 2. State Match for Federal Grants

12,000,000

To match federal grants for the clean water revolving fund under Minnesota Statutes, section 446A.07, and the drinking water revolving fund under Minnesota Statutes, section 446A.081. This appropriation must be used for qualified capital projects.

Subd. 3. Wastewater Infrastructure Funding Program

20,000,000

For grants to eligible municipalities under the wastewater infrastructure funding program under Minnesota Statutes, section 446A.072.

Subd. 4. Big Lake Area Sanitary District

4,500,000

For a grant to the Big Lake Area Sanitary District to acquire land for and to predesign, design, and construct a pressure sewer system and force main to convey sewage to the Western Lake Superior Sanitary District connection in the city of Cloquet. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

Subd. 5. Voyageurs National Park Clean Water Joint Powers Board

8,567,000

(a) $750,000 is for a grant to the Crane Lake Water and Sanitary District to acquire land for and to predesign, design, and construct a new sanitary sewer collection system and to expand the existing

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systems. The project will include a sewer extension to the Handberg Resort, public landing, and any associated work in Area T of the Crane Lake Water and Sanitary District comprehensive plan, including any necessary road work. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

(b) $7,817,000 is for a grant to Koochiching County to acquire land for and to predesign, design, and construct new sanitary sewer collection systems and expand the existing systems in Koochiching County for the Island View sewer project as designated in the November 2013 Voyageurs National Park Clean Water Joint Powers Board Draft Comprehensive Plan. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

(c) Any remaining funds from the projects in paragraphs (a) or (b) may be used for the other project or for the Ash River project in St. Louis County or the Kabetogama project in St. Louis County. Funds are not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

Sec. 23. MINNESOTA HOUSING FINANCE AGENCY

$20,000,000

For transfer to the housing development fund to finance the costs of rehabilitation to preserve public housing under Minnesota Statutes, section 462A.202, subdivision 3a. For purposes of this section, "public housing" means housing for low-income persons and households financed by the federal government and owned and operated by the public housing authorities and agencies formed by cities and counties. Public housing authorities receiving a public housing assessment composite score of 80 or above are eligible to receive funding. Priority must be given to proposals that maximize federal or local resources to finance the capital costs. The priority in Minnesota Statutes, section 462A.202, subdivision 3a, for projects to increase the supply of affordable housing and the restrictions of Minnesota Statutes, section 462A.202, subdivision 7, do not apply to this appropriation.

Sec. 24. MINNESOTA HISTORICAL SOCIETY

Subdivision 1. Total Appropriation

$11,957,000

To the Minnesota Historical Society for the purposes specified in this section.

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Subd. 2. Oliver H. Kelley Farm Historic Site

9,857,000

To complete design and to construct, furnish, and equip the renovation of the Oliver H. Kelley Farm Historic Site, including the site's visitor center and other essential visitor services and site operations facilities.

Subd. 3. Historic Sites Asset Preservation

1,600,000

For capital improvements and betterments at state historic sites, buildings, landscaping at historic buildings, exhibits, markers, and monuments, to be spent in accordance with Minnesota Statutes, section 16B.307. The society shall determine project priorities as appropriate based on need.

Subd. 4. Historic Fort Snelling Predesign

500,000

For predesign of facilities to support visitor services and history programs at Historic Fort Snelling.

Sec. 25. IRON RANGE RESOURCES AND REHABILITATION BOARD

$4,995,000

To the Iron Range Resources and Rehabilitation Board to predesign, design, construct, furnish, and equip a new multiuse, year-round event center at Giants Ridge that will replace the existing facility. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from other sources.

Sec. 26. GRANTS TO POLITICAL SUBDIVISIONS

Subdivision 1. Total Appropriation

174,885,000

To the commissioner of employment and economic development, or another named agency, for the purposes specified in this section.

Subd. 2. Chatfield - Center for the Arts

7,985,000

For a grant to the city of Chatfield economic development authority to predesign, design, renovate, construct, furnish, and equip the Chatfield Center for the Arts in the city of Chatfield. The center includes the George H. Potter auditorium, the adjacent 1916 school building, and the land surrounding the structures currently owned by the economic development authority. Money, land and buildings, and in-kind contributions provided to the center before the enactment of this section are considered to be sufficient local match, and no further local match is required.

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Subd. 3. Duluth - NorShor Theatre

6,950,000

For a grant to the Duluth Economic Development Authority to design, construct, furnish, and equip certain public improvements, including skyway access from adjacent public parking, interior circulation, street and utility upgrades, the connection between the skyway and street levels, handicapped access, and restoration of the theater's lobby, entrance, and marquee as part of the restoration and to provide and enhance public access to the historic NorShor Theatre.

This appropriation is not available until the commissioner of management and budget has determined that at least $13,900,000 has been committed to the project from nonstate sources and that sufficient nonstate funds are available to complete the project. Funds invested in the project by an investor receiving an assignment of state historic tax credits pursuant to Minnesota Statutes, section 290.0681, are deemed nonstate funds for purposes of this requirement. The city of Duluth and the Duluth Economic Development Authority may operate a performing arts center and facilities that provide access to the center, and may enter into a lease or management agreement, subject to Minnesota Statutes, section 16A.695. The state bond-financed project subject to Minnesota Statutes, section 16A.695, shall consist only of those improvements paid for with state general obligation bond proceeds. The state bond-financed property may be legally described either as a separately platted real estate parcel under a registered land survey or a condominium unit. Due to the integrated nature of the overall development, public bidding shall not be required for the state bond-financed project, provided there shall be a separate construction contract for this portion of the project, and any amounts required for this portion of the project, in excess of the bond appropriation, shall be paid by nonstate sources.

Subd. 4. Duluth - Spirit Mountain Recreation Area

3,400,000

For a grant to the city of Duluth for the Spirit Mountain Recreation Area Authority to acquire easements, licenses, and other interests in real property and to engineer, design, permit, and construct works and systems to transport water from the St. Louis River estuary for commercial and industrial use. This appropriation is not available until the commissioner of management and budget determines that at least $1,100,000 has been committed to the project from nonstate sources. Expenditures made on or after September 1, 2011, for this project shall count toward the match from nonstate sources.

Subd. 5. Duluth - Wade Stadium

3,920,000

For a grant to the city of Duluth to design, construct, furnish, and equip improvements to Wade Stadium, including the stadium walls and façade, grandstand, lighting, concession facilities and field,

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with proper drainage, for a ballpark and public outdoor events facility. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount is committed to the project from nonstate sources.

Subd. 6. Fosston - Second Street Road Improvement

400,000

For a grant to the city of Fosston to improve Second Street to allow for future development. This work includes removal of approximately seven blocks of old street, and sewer and water lines, and replacement of sewer and water lines and street construction, to a nine-ton capacity. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

Subd. 7. Grand Rapids - Independent School District No. 318

3,897,000

To the commissioner of education for a grant to Independent School District No. 318, Grand Rapids, to complete the design of, and to renovate, construct, furnish, and equip, the Myles Reif Center for the Performing Arts. This appropriation is not available until the commissioner of management and budget determines that at least $3,347,000 is committed to the project from nonstate sources.

Subd. 8. International Falls - Airport

1,300,000

To the commissioner of transportation for a grant to the International Falls-Koochiching County Airport Commission to design, construct, furnish, and equip a new terminal building, jetway, and associated appurtenances of a capital nature at the Falls International Airport. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been committed to the project from nonstate sources.

Subd. 9. Lake Superior - Poplar River Water District

1,100,000

For a grant to the Lake Superior-Poplar River Water District to acquire interests in real property, engineer, design, permit, and construct infrastructure to transport and treat water from Lake Superior through the Poplar River Valley to serve domestic, irrigation, commercial, stock watering, and industrial water users.

Subd. 10. Mankato - Arena and Events Center Auditorium

14,500,000

For a grant to the city of Mankato to design, construct, furnish, and equip an addition to and renovate existing space, and for other improvements of a capital nature to the Minnesota State University Arena and Event Center Auditorium. This appropriation is not

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available until the commissioner of management and budget determines that at least $14,500,000 has been committed to the project from nonstate sources. Amounts expended by the city of Mankato for project costs since March 1, 2013, shall count toward the matching requirement.

Subd. 11. Maple Plain - Street and Utility Project

930,000

For a grant to the city of Maple Plain for the design, removal, and reconstruction of two city streets including the replacement of aging sewer and water lines. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

Subd. 12. Minneapolis - Brian Coyle Community Center

330,000

(a) To the Metropolitan Council for a grant to the Minneapolis Park and Recreation Board to predesign and design the renovation and expansion of the Brian Coyle Community Center, subject to Minnesota Statutes, section 16A.695. This appropriation does not require a local match.

(b) The Minneapolis Park and Recreation Board, the Pillsbury United Communities, Hennepin County, institutions of higher education, and neighborhood organizations shall develop an agreement for the use of the existing Brian Coyle Community Center. The lease between the Minneapolis Park and Recreation Board and Pillsbury United Communities shall be reformed prior to the expenditure of any funds for predesign and design.

Subd. 13. Minneapolis - Hennepin Center for the Arts

3,000,000

For a grant to the city of Minneapolis for improvements and betterments of a capital nature to renovate the historic Hennepin Center for the Arts.

Subd. 14. Minneapolis - Nicollet Mall

20,000,000

For a grant to the city of Minneapolis to predesign, design, and reconstruct Nicollet Mall and its adjacent and related infrastructure in downtown Minneapolis. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount has been committed to the project from nonstate sources.

Subd. 15. Park Rapids Upper Mississippi Arts Center

2,500,000

For a grant to the Park Rapids Economic Development Authority for acquisition, and to predesign, design, construct, furnish, and equip the renovation, including hazardous materials abatement;

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demolition; health, safety and building code compliance; mechanical systems; and space restoration, of the historic National Guard Armory Building in downtown Park Rapids, for use as a regional arts and event center, subject to Minnesota Statutes, section 16A.695. This appropriation is not available until the commissioner of management and budget has determined that funds sufficient to complete the project have been committed to it from nonstate sources.

Subd. 16. Range Regional Airport

6,500,000

To the commissioner of transportation for a grant to the Chisholm-Hibbing Airport Authority to demolish the existing terminal, construct, furnish, and equip a new airline passenger terminal, passenger boarding bridge, and associated appurtenances to include, but not limited to, building signage, building security systems, and tying into the adjacent sidewalks, driveway, and aircraft parking apron area at the Range Regional Airport terminal. The airport authority must use American-made steel for this project, unless the airport authority determines that an exception in Public Law 111-5, section 1605, applies. The capital improvements paid for with this appropriation may be used as the local contribution required by Minnesota Statutes, section 360.305, subdivision 4.

Subd. 17. Red Wing - River Renaissance

1,583,000

For a grant to the city of Red Wing for improvements of a capital nature to the area between Levee Road and the Mississippi River, extending between Bay Point Drive and Broad Street in Red Wing. This project includes: reconstruction of Levee Road from Broad Street to Jackson Street; improvements to storm water, sanitary sewer, and drinking water infrastructure; replacement of a harbor retaining wall; parking improvements; lighting improvements; and construction of a segment of the Riverwalk Trail. This grant is not available until the commissioner of management and budget determines that an amount sufficient to complete the project is committed to it from nonstate sources.

Subd. 18. Rice Lake Township - Water Main Replacement

1,168,000

For a grant to Rice Lake Township in St. Louis County to design and construct a replacement water main and related public infrastructure on East Calvary Road and Kolstad, Austin, Milwaukee, Mather, and Chicago Avenues in Rice Lake Township. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount is committed to the project from nonstate sources.

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Subd. 19. Rochester - Mayo Civic Center Complex

35,000,000

For a grant to the city of Rochester to design, construct, furnish, and equip the renovation and expansion of the Mayo Civic Center complex and related infrastructure, including but not limited to skyway access, lighting, parking, and landscaping. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been committed to the project from nonstate sources. Amounts expended by the city of Rochester for project costs since July 1, 2013, shall count toward the matching requirement.

Subd. 20. Sandstone - Business Park

200,000

For a grant to the city of Sandstone to design and construct necessary public infrastructure to open a planned business park to serve a major tenant in Sandstone, Pine County. This appropriation is not available until the commissioner of management and budget determines that at least an equal amount is committed to the project from nonstate sources.

Subd. 21. St. Cloud - River's Edge Convention Center

11,560,000

For a grant to the city of St. Cloud to predesign, design, construct, furnish, and equip an expansion of the River's Edge Convention Center, including a parking facility and pedestrian skyway connection. This appropriation is not available until the commissioner of management and budget determines that at least $10,100,000 has been committed to the project from nonstate sources. Amounts expended by the city of St. Cloud for project costs since July 1, 2010, shall count toward the matching requirement.

Subd. 22. St. Paul - Minnesota Children's Museum

14,000,000

For a grant to the city of St. Paul to predesign, design, construct, furnish, and equip an expansion and renovation of the Minnesota Children's Museum, subject to Minnesota Statutes, section 16A.695. The expansion and exhibit upgrades should incorporate the latest research on early learning, allow for new state-of-the art education facilities, and increase the capacity of visitors to galleries and programming areas. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been committed from nonstate sources.

Subd. 23. St. Paul - Historic Palace Theater Renovation

6,000,000

For a grant to the city of St. Paul to predesign, design, construct, furnish, and equip the renovation of the historic Palace Theater in St. Paul. The city of St. Paul may enter into one or more lease or

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management agreements to operate performing arts programs, subject to Minnesota Statutes, section 16A.695. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been committed from nonstate sources.

Subd. 24. St. Paul - Ordway Center for the Performing Arts

5,000,000

For a grant to the city of St. Paul to construct, furnish, and equip a concert hall of approximately 1,100 seats and support spaces at the Ordway Center for the Performing Arts.

Subd. 25. University Enterprise Laboratories

500,000

For a grant to the St. Paul Port Authority to predesign and begin design of phase two of the University Enterprise Laboratories building in St. Paul, subject to Minnesota Statutes, section 16A.695. Amounts expended to complete phase one of the University Enterprise Laboratories building since January 1, 2004, shall count toward the matching requirement.

Subd. 26. Thief River Falls - Public Infrastructure

1,998,000

For a grant to the city of Thief River Falls to design, construct, and equip sewers, streets, and utility improvements for a regional development center in Thief River Falls. This appropriation is not available until the commissioner has determined that at least an additional $1,012,000 has been committed to the project from nonstate sources.

Subd. 27. Truman - Storm Water Project

1,350,000

For a grant to the city of Truman to design, construct, and install new storm water lines to two areas of the city that experience flooding with heavy rain. This appropriation is not available until the commissioner of management and budget has determined that at least an equal amount has been committed to the project from nonstate sources.

Subd. 28. Virginia - Highway 53 Utilities Relocation

19,500,000

To the commissioner of transportation for:

(1) a grant to the city of Virginia Public Utilities Commission to acquire land, predesign, design, construct, furnish, and equip relocated storm water, sanitary sewer, water, electrical, and gas utilities along or near the relocated U.S. Highway 53 in Virginia, St. Louis County; and

(2) a grant to the St. Louis and Lake Counties Regional Railroad Authority to acquire land, predesign, design, construct, furnish, and equip trails to handle bicycles, pedestrians, snowmobiles, and ATVs along or near the relocated U.S. Highway 53 in Virginia, St. Louis County.

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Subd. 29. Worthington - Biotechnology Advancement Center

314,000

For a grant to the city of Worthington to complete construction of and to furnish and equip space in the Biotechnology Advancement Center to accommodate approximately four biotechnology laboratory stations.

Sec. 27. BOND SALE EXPENSES

$900,000

To the commissioner of management and budget for bond sale expenses under Minnesota Statutes, section 16A.641, subdivision 8.

Sec. 28. BOND SALE AUTHORIZATION.

Subdivision 1. Bond proceeds fund. To provide the money appropriated in this act from the bond proceeds fund, the commissioner of management and budget shall sell and issue bonds of the state in an amount up to $891,657,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.

Subd. 2. Maximum effort school loan fund. To provide the money appropriated in this act from the maximum effort school loan fund, the commissioner of management and budget shall sell and issue bonds of the state in an amount up to $10,491,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except accrued interest and any premium received on the sale of the bonds, must be credited to a bond proceeds account in the maximum effort school loan fund.

Sec. 29. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.

Subdivision 1. 2000; Two Harbors Safe Harbor. The unobligated amount remaining from the appropriation in Laws 2000, chapter 492, article 1, section 7, subdivision 21, as amended by Laws 2005, chapter 20, article 1, section 42, and Laws 2006, chapter 258, section 40, estimated to be $983,141.90, for the Harbor of Refuge at Two Harbors, is canceled. The bond sale authorization in Laws 2000, chapter 492, article 1, section 26, subdivision 1, is reduced by the same amount.

Subd. 2. 2002; BCA headquarters. The unobligated amount remaining from the appropriation in Laws 2002, chapter 374, article 11, section 7, subdivision 3, as amended by Laws 2002, chapter 393, section 90, estimated to be $23,340.68, for construction of the Bureau of Criminal Apprehension building in St. Paul, is canceled. The bond sale authorization in Laws 2002, chapter 374, article 11, section 17, is reduced by the same amount.

Subd. 3. 2002; Fergus Falls Regional Treatment Center. The unobligated amount remaining from the appropriation in Laws 2002, chapter 393, section 22, subdivision 6, as amended by Laws 2005, chapter 20, article 1, section 43, and Laws 2013, chapter 136, section 10, estimated to be $4,805, for the Fergus Falls Regional Treatment Center, is canceled. Laws 2002, chapter 393, section 30, subdivision 1, is reduced by the same amount.

Subd. 4. 2005; CAAPB. The unobligated amount remaining from the appropriation in Laws 2005, chapter 20, article 1, section 14, subdivision 2, estimated to be $28,600, for design of Capitol restoration work, is canceled. The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, subdivision 1, is reduced by the same amount.

Subd. 5. 2005; DHS. The unobligated amount remaining from the appropriation in Laws 2005, chapter 20, article 1, section 20, subdivision 3, as amended by Laws 2006, chapter 258, section 47, and Laws 2013, chapter 136, section 11, estimated to be $3,236, for statewide redevelopment, reuse, or demolition of Department of Human Services facilities, is canceled. The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, subdivision 1, is reduced by the same amount.

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Subd. 6. 2005; DHS. The unobligated amount remaining from the appropriation in Laws 2005, chapter 20, article 1, section 20, subdivision 6, estimated to be $5,542.15, for asset preservation of Department of Human Services facilities, is canceled. The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, subdivision 1, is reduced by the same amount.

Subd. 7. 2005; Veterans Home Board. The unobligated amount remaining from the appropriation in Laws 2005, chapter 20, article 1, section 21, subdivision 4, estimated to be $3,020.50, for building 4 remodeling at the Minneapolis Veterans Home, is canceled. The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, subdivision 1, is reduced by the same amount.

Subd. 8. 2006; CAPRA. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 12, subdivision 2, estimated to be $4,701.25, for capital asset preservation and replacement, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 9. 2006; asset preservation. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 12, subdivision 3, estimated to be $11,114.70, for Department of Administration asset preservation, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 10. 2006; CAAPB. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 13, estimated to be $6,927.50, for the Capitol dome and design work, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 11. 2006; local bridges, MnDOT. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 16, subdivision 2, estimated to be $251,357, for local bridge replacement and rehabilitation, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 3, is reduced by the same amount.

Subd. 12. 2006; local roads, MnDOT. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 16, subdivision 3, estimated to be $111,487.69, for local roads, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 3, is reduced by the same amount.

Subd. 13. 2006; Northeast Minnesota Rail Initiative, MnDOT. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 16, subdivision 5, as amended by Laws 2008, chapter 179, section 63, Laws 2008, chapter 365, section 14, subdivision 5, and Laws 2011, First Special Session chapter 12, section 29, estimated to be $5, for the Northeast Minnesota Rail Initiative, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 14. 2006; I-35W BRT. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 17, subdivision 2, estimated to be $987,142, for the I-35W bus rapid transitway, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 15. 2006; MSOP. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 18, subdivision 3, estimated to be $3,062.50, for the Moose Lake sex offender treatment facility, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 16. 2006; Veterans Home Board. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 19, subdivision 2, estimated to be $2,600, for asset preservation at veterans homes, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

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Subd. 17. 2006; Veterans Home Board. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 19, subdivision 3, estimated to be $1,225, for the Fergus Falls Veterans Home, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 18. 2006; Veterans Home Board. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 19, subdivision 4, as amended by Laws 2008, chapter 365, section 15, estimated to be $110,224.98, for the Hastings supportive housing, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 19. 2006; Veterans Home Board. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 19, subdivision 6, estimated to be $18,418.94, for the Minneapolis Veterans Home, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 20. 2006; Veterans Home Board. The unobligated amount remaining from the appropriation in Laws 2006, chapter 258, section 19, subdivision 7, estimated to be $1,300.61, for the Silver Bay Veterans Home, is canceled. The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is reduced by the same amount.

Subd. 21. 2007; disaster relief, DPS. The unobligated amount remaining from the appropriation in Laws 2007, First Special Session, chapter 2, article 1, section 3, subdivision 3, estimated to be $53,847.53, for state and local match, is canceled. The bond sale authorization in Laws 2007, First Special Session chapter 2, article 1, section 15, subdivision 1, is reduced by the same amount.

Subd. 22. 2008; Minnesota State Academies. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 5, subdivision 2, estimated to be $24,122.31, for asset preservation, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 23. 2008; administration. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 12, subdivision 2, estimated to be $1,500, for purchase of real property, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 24. 2008; administration. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 12, subdivision 3, estimated to be $14,716.28, for Capitol renovation, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 25. 2008; urban partnership agreement, Metropolitan Council. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 17, subdivision 2, as amended by Laws 2008, chapter 365, section 21, estimated to be $45,000, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 26. 2008; DHS asset preservation. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 18, subdivision 2, estimated to be $17,532.93, for asset preservation, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 27. 2008; veterans homes. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 19, subdivision 2, estimated to be $60,426.34, for asset preservation, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

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Subd. 28. 2008; veterans homes. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 19, subdivision 3, estimated to be $8,368.46, for the Fergus Falls Veterans Home, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 29. 2008; veterans homes. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 19, subdivision 4, as amended by Laws 2011, First Special Session chapter 12, section 34, and Laws 2012, chapter 293, section 42, estimated to be $26,191.18, for the Minneapolis Veterans Home, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 30. 2008; corrections. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 20, subdivision 2, estimated to be $3,083, for Department of Corrections asset preservation, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 31. 2008; corrections. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 20, subdivision 3, estimated to be $29,209.49, for expansion of the Faribault facility, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 32. 2008; corrections. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 20, subdivision 4, estimated to be $1,178.90, for a new building at Red Wing, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 33. 2008; DEED. The unobligated amount remaining from the appropriation in Laws 2008, chapter 179, section 21, subdivision 4, estimated to be $60,186.86, for redevelopment grants, is canceled. The bond sale authorization in Laws 2008, chapter 179, section 27, subdivision 1, is reduced by the same amount.

Subd. 34. 2008; CAPRA. The unobligated amount remaining from the appropriation in Laws 2008, chapter 365, section 3, estimated to be $67,037.96, for capital asset preservation and replacement, is canceled. The bond sale authorization in Laws 2008, chapter 365, section 6, is reduced by the same amount.

Subd. 35. 2008; veterans homes. The unobligated amount remaining from the appropriation in Laws 2008, chapter 365, section 5, subdivision 2, paragraph (a), as amended by Laws 2010, chapter 189, section 59, estimated to be $2,139.85, for the Minneapolis Veterans Home demolition of building 9, is canceled. The bond sale authorization in Laws 2008, chapter 365, section 6, is reduced by the same amount.

Subd. 36. 2008; veterans homes. The unobligated amount remaining from the appropriation in Laws 2008, chapter 365, section 5, subdivision 2, paragraph (b), estimated to be $118,858.49, for the 100-bed nursing facility at the Minneapolis Veterans Home, is canceled. The bond sale authorization in Laws 2008, chapter 365, section 6, is reduced by the same amount.

Subd. 37. 2009; Bigfork Airport. The unobligated amount remaining from the appropriation in Laws 2009, chapter 93, article 1, section 11, subdivision 8, estimated to be $199,627, for the Bigfork airport runway, is canceled. The bond sale authorization in Laws 2009, article 1, chapter 93, section 21, subdivision 1, is reduced by the same amount.

Subd. 38. 2010; Perpich Center for Arts Education. The unobligated amount remaining from the appropriation in Laws 2010, chapter 189, section 6, subdivision 2, as amended by Laws 2011, First Special Session chapter 12, section 39, estimated to be $6,041.58, for demolition of Alpha Building, is canceled. The bond sale authorization is Laws 2010, chapter 189, section 26, subdivision 1, is reduced by the same amount.

Subd. 39. 2010; Perpich Center for Arts Education. The unobligated amount remaining from the appropriation in Laws 2010, chapter 189, section 6, subdivision 3, estimated to be $191,154.83, for windows in the Delta Dormitory, is canceled. The bond sale authorization is Laws 2010, chapter 189, section 26, subdivision 1, is reduced by the same amount.

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Subd. 40. 2010; Perpich Center for Arts Education. The unobligated amount remaining from the appropriation in Laws 2010, chapter 189, section 6, subdivision 4, as amended by Laws 2011, First Special Session chapter 12, section 40, estimated to be $3,087.98, for a storage building, is canceled. The bond sale authorization is Laws 2010, chapter 189, section 26, subdivision 1, is reduced by the same amount.

Subd. 41. 2010; Northstar commuter rail extension. The $1,000,000 appropriation of bond proceeds in Laws 2010, chapter 189, section 15, subdivision 6, to match federal funds to extend the Northstar commuter rail to St. Cloud, is canceled. The bond sale authorization in Laws 2010, chapter 189, section 26, subdivision 1, is reduced by the same amount.

Subd. 42. 2010; North Branch infrastructure. The $1,000,000 appropriated in Laws 2010, chapter 189, section 21, subdivision 2, for the trunk water main loop connection line in North Branch, is canceled. The bond sale authorization in Laws 2010, chapter 189, section 26, subdivision 1, is reduced by the same amount.

Subd. 43. 2010; disaster relief, DPS. The $2,000,000 appropriation of bond proceeds in Laws 2010, Second Special Session chapter 1, article 1, section 3, for state and local match, is canceled. The bond sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17, subdivision 1, is reduced by the same amount.

Sec. 30. Laws 2013, chapter 136, section 7, is amended to read:

Sec. 7. BOND SALE SCHEDULE.

The commissioner of management and budget shall schedule the sale of state general obligation bonds so that, during the biennium ending June 30, 2015, no more than ~~$1,280,165,000~~ $1,253,992,000 will need to be transferred from the general fund to the state bond fund to pay principal and interest due and to become due on outstanding state general obligation bonds. During the biennium, before each sale of state general obligation bonds, the commissioner of management and budget shall calculate the amount of debt service payments needed on bonds previously issued and shall estimate the amount of debt service payments that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the amount of bonds scheduled to be sold so as to remain within the limit set by this section. The amount needed to make the debt service payments is appropriated from the general fund as provided in Minnesota Statutes, section 16A.641.

Sec. 31. APPROPRIATIONS GIVEN EFFECT ONCE.

Sec. 32. EFFECTIVE DATE.

This article is effective the day following final enactment.

ARTICLE 2

MISCELLANEOUS

Section 1. Minnesota Statutes 2012, section 16A.641, is amended by adding a subdivision to read:

Subd. 4b. Negotiated sales authority. Notwithstanding the public sale requirements of subdivision 4 and section 16A.66, subdivision 2, the commissioner may sell bonds, including refunding bonds, at negotiated sale.

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Sec. 2. Minnesota Statutes 2012, section 16A.642, subdivision 1, is amended to read:

Subdivision 1. Reports. (a) The commissioner of management and budget shall report to the chairs of the senate Committee on Finance and the house of representatives Committees on Ways and Means and Capital Investment by January 1 of each odd-numbered year on the following:

(1) all laws authorizing the issuance of state bonds, bonds supported by a state appropriation, or appropriating general fund money for state or local government capital investment projects enacted more than four years before January 1 of that odd-numbered year; the projects authorized to be acquired and constructed for which less than 100 percent of the authorized total cost has been expended, encumbered, or otherwise obligated; the cost of contracts to be let in accordance with existing plans and specifications shall be considered expended for this report; and the amount of general fund money appropriated but not spent or otherwise obligated, and the amount of bonds not issued and bond proceeds held but not previously expended, encumbered, or otherwise obligated for these projects; and

(2) all laws authorizing the issuance of state bonds, bonds supported by a state appropriation, or appropriating general fund money for state or local government capital programs or projects other than those described in clause (1), enacted more than four years before January 1 of that odd-numbered year; and the amount of general fund money appropriated but not spent or otherwise obligated, and the amount of bonds not issued and bond proceeds held but not previously expended, encumbered, or otherwise obligated for these programs and projects.

(b) The commissioner shall also report on general fund appropriations for capital projects, bond authorizations or bond proceed balances that may be canceled because projects have been canceled, completed, or otherwise concluded, or because the purposes for which the money was appropriated or bonds were authorized or issued have been canceled, completed, or otherwise concluded. The general fund appropriations, bond authorizations or bond proceed balances that are unencumbered or otherwise not obligated that are reported by the commissioner under this subdivision are canceled, effective July 1 of the year of the report, unless specifically reauthorized by act of the legislature.

(c) The reports required by this subdivision shall only contain bond authorizations supported by a state appropriation and their associated general fund appropriations for projects authorized or amended after December 31, 2013.

Sec. 3. Minnesota Statutes 2012, section 16A.642, subdivision 2, is amended to read:

Subd. 2. Cancellation. (a) If the commissioner determines that the purposes for which general obligation bonds of the state or bonds supported by a state appropriation have been issued or for which general fund monies were appropriated are accomplished or abandoned, after consultation with the affected agencies, and there is a remaining authorization or appropriation for a specific project of $500 or less, the commissioner may cancel the remaining authorization or appropriation for that project. Bonds supported by a state appropriation shall only be canceled if they were authorized or amended after December 31, 2013.

(b) If a premium received on the sale of bonds is credited to the bond proceeds fund, pursuant to section 16A.641, subdivision 7, paragraph (b), the corresponding bond authorization to which the premium is attributable must be reduced accordingly by the commissioner.

(c) The commissioner must notify the chairs of the senate Finance Committee and the house of representatives Capital Investment Committee of any bond authorizations, including bond authorizations supported by a state appropriation, or general fund appropriations canceled under this subdivision.

Sec. 4. Minnesota Statutes 2012, section 16A.695, is amended by adding a subdivision to read:

Subd. 10. Public representative required. A lease or management agreement under this section for a project appropriated $5,000,000 or more from the bond proceeds fund must require that the commissioner of the granting agency or a member of the political subdivision's governing body appoint an interested and qualified individual to

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serve as a voting member of the governing body, and any executive or management committee of the governing body, of the entity operating or managing the facility for as long as the facility is state bond-financed property. The appointment is for a term coterminus with appointing authority's term of office and a successor appointing authority may reappoint the same person or another to serve.

EFFECTIVE DATE. This section is effective the day following final enactment and applies retroactively to appropriations made on or after July 1, 2009.

Sec. 5. [116J.434] PUBLIC BUILDING ACCESSIBILITY GRANT PROGRAM.

Subdivision 1. Creation of account. A public building accessibility account is created in the bond proceeds fund. Money in the account is appropriated to the commissioner for grants under this section.

Subd. 2. Definitions. For the purposes of this section:

(1) "accessible" means satisfies the requirements of the State Building Code for accessibility by persons with disabilities;

(2) "eligible project" means predesign, design, acquisition of land or an interest in land, construction, renovation, or other improvement or betterment of a capital nature to make a building or facility owned by a local government unit accessible or improve its accessibility;

(3) "governing body" means the county board of commissioners, city council, or town board of supervisors; and

(4) "local government unit" means a county, statutory or home rule charter city, or town.

Subd. 3. Grant program established. The commissioner shall make grants to local government units on a first-come, first-served basis for eligible projects.

Subd. 4. Application. A local government unit seeking a grant under this section must apply to the commissioner in the form and manner determined by the commissioner. The application must include:

(1) a resolution of the governing body requesting the grant and stating that the local government unit has or will have in a timely manner the required nonstate contribution necessary to complete the project;

(2) a detailed description of the project and cost estimate, along with necessary supporting evidence; and

(3) any other information the commissioner determines is necessary or useful.

Subd. 5. Maximum grant amount; match. A local unit of government must not be awarded in aggregate more than $150,000, whether for one or more projects in one or more years. The local government unit awarded a grant under this section must provide at least an equal amount from nonstate sources which may include contributions made before the grant is awarded.

Sec. 6. Minnesota Statutes 2012, section 134.45, subdivision 5b, is amended to read:

Subd. 5b. Qualification; improvement grants. A public library jurisdiction may apply for a grant in an amount up to $1,000,000 or 50 percent, whichever is less, of the approved costs of renovating or expanding an existing library building, or to construct a new library building. Renovation may include remediation of conditions hazardous to health or safety.

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Sec. 7. Minnesota Statutes 2012, section 135A.034, subdivision 2, is amended to read:

Subd. 2. Capital projects. The Board of Regents of the University of Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities are requested to consider the following criteria in establishing priorities for requests for bond funds for capital projects:

(1) maintenance and preservation of existing facilities;

(2) completion of projects that have received funding;

(3) updating facilities to meet contemporary needs;

(4) providing geographic distribution of capital projects; and

(5) maximizing the use of nonstate contributions.

The criteria listed in this subdivision are not in priority order.

Sec. 8. Laws 2008, chapter 179, section 16, subdivision 5, is amended to read:

Subd. 5. Minnesota Valley Railroad Track Rehabilitation

3,000,000

For a grant to the Minnesota Valley Regional Rail Authority to rehabilitate a portion of railroad track from Norwood-Young America to Hanley Falls. The grant under this subdivision may also be used for predesign, design, engineering, and rehabilitation or replacement of bridges with new bridges or culverts between Norwood-Young America and Hanley Falls. Notwithstanding Minnesota Statutes, section 16A.642, the bond sale authorization for this project and appropriation of bond proceeds in this subdivision are available until December 31, 2015. A grant under this subdivision is in addition to any grant, loan, or loan guarantee for this project made by the commissioner under Minnesota Statutes, sections 222.46 to 222.62.

Sec. 9. Laws 2009, chapter 93, article 1, section 11, subdivision 4, is amended to read:

Subd. 4. Minnesota Valley Railroad Track Rehabilitation

4,000,000

For a grant to the Minnesota Valley Regional Railroad Authority to rehabilitate up to 95 miles of railroad track from Norwood-Young America to Hanley Falls. The grant under this subdivision may also be used for predesign, design, engineering, and rehabilitation or replacement of bridges with new bridges or culverts between Norwood-Young America and Hanley Falls. Notwithstanding Minnesota Statutes, section 16A.642, the bond sale authorization for this project and appropriation of bond proceeds in this subdivision are available until December 31, 2015. A grant under this subdivision is in addition to any grant, loan, or loan guarantee for this project made by the commissioner under Minnesota Statutes, sections 222.46 to 222.62.

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Sec. 10. Laws 2010, chapter 189, section 15, subdivision 5, is amended to read:

Subd. 5. Minnesota Valley Railroad Track Rehabilitation

5,000,000

For a grant to the Minnesota Valley Regional Rail Authority to rehabilitate and make capital improvements to railroad track from east of Gaylord to Winthrop. The grant under this subdivision may also be used for predesign, design, engineering, and rehabilitation or replacement of bridges with new bridges or culverts between Gaylord and Winthrop. Notwithstanding Minnesota Statutes, section 16A.642, the bond sale authorization for this project and appropriation of bond proceeds in this subdivision are available until December 31, 2015. A grant under this subdivision is in addition to any grant, loan, or loan guarantee for this project made by the commissioner under Minnesota Statutes, sections 222.46 to 222.62.

Sec. 11. Laws 2010, chapter 189, section 21, subdivision 11, is amended to read:

Subd. 11. Minneapolis - Orchestra Hall

16,000,000

For a grant to the city of Minneapolis to predesign, design, construct, furnish, and equip the renovation of Orchestra Hall at its current downtown Minneapolis location, including $2,000,000 for Peavey Plaza. The city of Minneapolis may operate a performing arts center and adjacent property for public recreation and may enter into a lease or management agreement for the improved facilities, subject to Minnesota Statutes, section 16A.695. Notwithstanding Minnesota Statutes, section 16A.642, the bond sale authorization and appropriation of bond proceeds for the Peavey Plaza project are available until December 31, 2018.

This appropriation is not available until the commissioner has determined that at least an equal amount has been committed from nonstate sources.

Sec. 12. Laws 2011, First Special Session chapter 12, section 18, subdivision 5, is amended to read:

Subd. 5. Hennepin County - Minnesota African American History Museum and Cultural Center

1,000,000

For a grant to Hennepin County to acquire land and buildings and to predesign, design, construct, furnish, and equip the renovation of an historic mansion for the Minnesota African American History Museum and Cultural Center in Minneapolis.

This appropriation is not available until the commissioner has determined that at least an equal amount has been committed to the project from nonstate sources.

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Sec. 13. Laws 2012, chapter 293, section 19, subdivision 4, is amended to read:

Subd. 4. Minneapolis Veterans Home Centralized Pharmacy

1,366,000

To predesign, design, remodel, and furnish ~~historic Building 13~~ Building 15 or another building located on the Minneapolis Veterans Home campus to be used as the veterans homes' central pharmacy.

Sec. 14. Laws 2012, chapter 293, section 21, subdivision 6, is amended to read:

Subd. 6. Austin Port Authority - Research and Technology Center

13,500,000

For a grant to the Austin Port Authority to design and construct a new building addition to the Hormel Institute, including research labs, research technology space, and support offices. The appropriation may also be used to design and construct a parking lot. This appropriation is not available until the commissioner has determined that at least an equal amount has been committed to the project from nonstate sources.

Sec. 15. Laws 2012, First Special Session chapter 1, article 1, section 9, subdivision 3, is amended to read:

Subd. 3. Flood Hazard Mitigation, Stream Restoration Grants

10,000,000

(a) For the purposes specified in Minnesota Statutes, section 12A.12, subdivision 2. Funds may be used to acquire or relocate structures damaged or threatened by the impacts resulting from the rain storm and are also available for the local share of acquisition and relocation flood mitigation projects. Of this appropriation, $9,000,000 is from the bond proceeds fund and $1,000,000 is from the general fund.

(b) This appropriation may also be used for stream restoration projects in the area included in DR-4069.

Sec. 16. Laws 2012, First Special Session chapter 1, article 2, section 4, subdivision 2, is amended to read:

Subd. 2. Reforestation

994,000

From the bond proceeds fund for reforestation of lands damaged by natural causes under Minnesota Statutes, section 89.002. Money appropriated in this section may be used to pay state agency staff costs that are attributed directly to the capital program. This appropriation may also be used for reforestation in the area included in the 2011 declared disaster area, DR-4009.

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Sec. 17. Laws 2013, chapter 136, section 4, is amended to read:

Sec. 4. VETERANS AFFAIRS

$18,935,000

(a) Of this amount, up to $1,750,000 is to the commissioner of administration to: (1) construct a new distribution and service tunnel to serve Buildings 17 north and 18 and the future Building 17 south; and (2) construct steam and electrical connections, related infrastructure, site work, a canopy with vestibule, and required modifications to Building 18 drop-off and entry. This appropriation is not available until the commissioner of management and budget has determined that at least $5,000,000 has been committed from federal sources. Any unused funds may be used under paragraph (b).

(b) The remainder of this amount is to the commissioner of administration to complete the design of, perform hazardous materials abatement for, and demolish the south wing of Building 17 and adjoining buildings~~, and~~; design, reconstruct, and furnish the new south wing of Building 17 and adjoining buildings as a new skilled nursing building,; construct a new distribution and service tunnel to serve buildings 6, ~~17 north, and~~ 19, and the future 17 south,; and design, construct, and equip a network and server room, including installation of new fiber optic lines. This appropriation is not available until the commissioner of management and budget has determined that the funds to complete this work have been committed from federal sources.

Sec. 18. EAST METRO INTEGRATION DISTRICT, PROPERTY CONVEYANCE.

Subdivision 1. Harambee. Notwithstanding Minnesota Statutes, section 16A.695, and the appropriations of state general obligation bond proceeds in Laws 1994, chapter 643, section 14, subdivision 7, to Joint Powers District No. 6067, East Metro Integration District, to acquire and better the Harambee community school, in Maplewood, the real and personal property of the Harambee school may be conveyed to Independent School District No. 623, Roseville, for operation of a multidistrict integration facility that serves students in any grade from early education through grade 12.

Subd. 2. Crosswinds. Notwithstanding Minnesota Statutes, section 16A.695, and the appropriation of state general obligation bond proceeds in Laws 1998, chapter 404, section 5, subdivision 5; Laws 1999, chapter 240, article 1, section 3; Laws 2000, chapter 492, article 1, section 5, subdivision 2; Laws 2001, First Special Session chapter 12, section 2, subdivision 2; and Laws 2005, chapter 20, article 1, section 5, subdivision 3, to acquire and better the Crosswinds school facilities by the Joint Powers District No. 6067, East Metro Integration District, in Woodbury, the Crosswinds school may be conveyed to the Perpich Center for Arts Education for use as an east metropolitan area integration magnet school.

Sec. 19. CONVEYANCE OF SURPLUS STATE LAND; WASHINGTON COUNTY.

(a) Notwithstanding Minnesota Statutes, sections 16A.695 and 16B.281 to 16B.296, the commissioner of administration may convey to the city of Bayport for no consideration the surplus land that is described in paragraph (c).

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(b) The conveyance must be in a form approved by the attorney general and provide that the lands revert to the state if the city of Bayport stops using the land for the public purpose described in paragraph (d). The attorney general may make changes to the land description to correct errors and ensure accuracy.

That part of the Southeast Quarter of the Southwest Quarter, Section 3, Township 29 North, Range 20 West, Washington County, Minnesota, described as follows:

Commencing at the southeast corner of said Southeast Quarter of the Southwest Quarter; thence South 89 degrees 28 minutes 13 seconds West, assigned bearing, along the south line of said Southeast Quarter of the Southwest Quarter, a distance of 665.22 feet to the easterly right-of-way line of Stagecoach Trail North (A. K. A. County State-Aid Highway 21); thence North 00 degrees 31 minutes 47 seconds West, along said easterly right-of-way line, 60.00 feet to the point of beginning of the tract to be herein described; thence North 34 degrees 35 minutes 03 seconds West, along said right-of-way line, 112.00 feet; thence North 21 degrees 21 minutes 41 seconds East, along said right-of-way line, 508.03 feet; thence South 70 degrees 24 minutes 54 seconds East, 250.49 feet; thence South 00 degrees 08 minutes 49 seconds East, 478.06 feet to the northerly right-of-way line of County State-Aid Highway 14 (A. K. A. 5th Avenue North); thence South 89 degrees 28 minutes 13 seconds West, along said northerly right-of-way line, 358.72 feet to the point of beginning. Subject to easements, restrictions, and reservations of record.

(d) The commissioner has determined that the land is no longer needed for any state purpose and that the state's land management interests would best be served if the land was conveyed to and used by the city of Bayport for a fire station.

Sec. 20. REVISOR'S INSTRUCTION.

The revisor of statutes shall change the headnote for Minnesota Statutes, section 134.45, to "LIBRARY CONSTRUCTION GRANTS."

Sec. 21. EFFECTIVE DATE.

Except as otherwise provided, this article is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to capital investment; authorizing spending to acquire and better public land and buildings and other improvements of a capital nature with certain conditions; modifying previous appropriations; establishing new programs and modifying existing programs; authorizing the use of negotiated sales; authorizing the transfer of state bond-financed property; authorizing the sale and issuance of state bonds; appropriating money; amending Minnesota Statutes 2012, sections 16A.641, by adding a subdivision; 16A.642, subdivisions 1, 2; 16A.695, by adding a subdivision; 134.45, subdivision 5b; 135A.034, subdivision 2; Laws 2008, chapter 179, section 16, subdivision 5; Laws 2009, chapter 93, article 1, section 11, subdivision 4; Laws 2010, chapter 189, sections 15, subdivision 5; 21, subdivision 11; Laws 2011, First Special Session chapter 12, section 18, subdivision 5; Laws 2012, chapter 293, sections 19, subdivision 4; 21, subdivision 6; Laws 2012, First Special Session chapter 1, article 1, section 9, subdivision 3; article 2, section 4, subdivision 2; Laws 2013, chapter 136, sections 4; 7; proposing coding for new law in Minnesota Statutes, chapter 116J."

With the recommendation that when so amended the bill be re-referred to the Committee on Rules and Legislative Administration.

The report was adopted.

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Carlson from the Committee on Ways and Means to which was referred:

S. F. No. 2470, A bill for an act relating to health; adopting the Medical Cannabis Therapeutic Research Act; requiring clinical trials on the therapeutic use of medical cannabis; setting standards for clinical trials; requiring the commissioner to contract with one manufacturer for medical cannabis products; requiring an impact assessment of medical cannabis therapeutic research; setting fees; requiring reports; appropriating money; amending Minnesota Statutes 2012, section 256B.0625, subdivision 13d; proposing coding for new law in Minnesota Statutes, chapter 152.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [152.22] MEDICAL CANNABIS THERAPEUTIC RESEARCH STUDY.

Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.

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

(c) "Health care practitioner" means a Minnesota licensed doctor of medicine, a Minnesota licensed physician assistant acting within the scope of authorized practice, or a Minnesota licensed advanced practice registered nurse, who has the primary responsibility for the care and treatment of a person diagnosed with a qualifying medical condition under this section.

(d) "Health records" means health record as defined in section 144.291.

(e) "Medical cannabis" means the flowers of any species of the genus cannabis plant, or any mixture or preparation of them, including extracts and resins which contain a chemical composition determined to likely be medically beneficial by the commissioner, and that is delivered in the form of:

(1) liquid, including, but not limited to, oil;

(2) pill;

(3) vaporized delivery method with use of liquid or oil but which does not require the use of dried leaves or plant form; or

(4) any other method approved by the commissioner but which shall not include smoking.

(f) "Medical cannabis manufacturer" or "manufacturer" means an entity registered by the commissioner to cultivate, acquire, manufacture, possess, prepare, transfer, transport, supply, or dispense medical cannabis, delivery devices, or related supplies and educational materials to patients with a qualifying medical condition who are enrolled in the registry program.

(g) "Medical cannabis product" means medical cannabis as defined in paragraph (e) and any delivery device or related supplies and educational materials used in the administration of medical cannabis for a patient with a qualifying medical condition enrolled in the registry program.

(h) "Patient" means a Minnesota resident who has been diagnosed by a health care practitioner with a qualifying medical condition and who has otherwise met any other requirements of patients under this section to participate in the registry program.

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(i) "Patient registry number" means a unique identification number assigned to a patient by the commissioner after the commissioner has enrolled the patient in the registry program.

(j) "Registered designated caregiver" means a person who is at least 21 years old and who has been approved by the commissioner to assist a patient who has been identified by a health care provider as developmentally or physically disabled and therefore unable to self-administer medication, and who is authorized by the commissioner to administer medical cannabis to the patient only within the patient's primary place of residence;

(k) "Registry program" means the patient registry established under this section.

(l) "Registry verification" means the verification provided by the commissioner that a patient is enrolled in the registry program and that includes the patient's name, patient registry number, qualifying medical condition, and, if applicable, the name of the patient's registered designated caregiver or parent or legal guardian.

(m) "Qualifying medical condition" means a diagnosis of the following conditions:

(1) cancer;

(2) glaucoma;

(3) human immunodeficiency virus or acquired immune deficiency syndrome;

(4) Tourette's syndrome;

(5) amyotrophic lateral sclerosis;

(6) seizures, including those characteristic of epilepsy;

(7) severe and persistent muscle spasms, including those characteristic of multiple sclerosis;

(8) Crohn's disease; or

(9) any other medical condition or its treatment approved by the commissioner.

Subd. 2. Limitations. This section does not permit any person to engage in and does not prevent the imposition of any civil, criminal, or other penalties for:

(1) undertaking any task under the influence of medical cannabis that would constitute negligence or professional malpractice;

(2) possessing or engaging in the use of medical cannabis on:

(i) a school bus;

(ii) on the grounds of any preschool or primary or secondary school; or

(iii) in any correctional facility;

(3) vaporizing medical cannabis pursuant to subdivision 1, paragraph (e):

(i) on any form of public transportation;

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(ii) where the vapor would be inhaled by a minor child; or

(iii) in any public place; and

(4) operating, navigating, or being in actual physical control of any motor vehicle, aircraft, train, or motorboat, or working on transportation property, equipment, or facilities while under the influence of medical cannabis.

Subd. 3. Federally approved clinical trials. The commissioner may prohibit enrollment of a patient in the registry program if the patient is simultaneously enrolled in a federally approved clinical trial for the treatment of a qualifying medical condition with medical cannabis. The commissioner shall provide information to all patients enrolled in the registry program on the existence of federally approved clinical trials for the treatment of the patient's qualifying medical condition with medical cannabis, as an alternative to enrollment in the patient registry program.

Subd. 4. Commissioner duties. (a) The commissioner shall register one in-state manufacturer for the production of all medical cannabis products within the state by December 1, 2014, unless the commissioner obtains an adequate supply of federally sourced medical cannabis products by August 1, 2014. The commissioner shall require any manufacturer application for registration to pay a fee of $20,000. If a manufacturer is not selected for registration, the commissioner shall refund $19,000 to that manufacturer. The commissioner shall continue to accept applications after December 1, 2014, if no manufacturer that meets the qualifications set forth in this subdivision applies prior to December 1, 2014. The commissioner's determination that no manufacturer exists to fulfill the duties under this section is subject to judicial review. As a condition for registration, the commissioner shall require the manufacturer to:

(1) supply medical cannabis products to patients by July 1, 2015; and

(2) comply with all requirements under subdivision 8.

(b) The commissioner shall consider the following factors when determining which manufacturer to register:

(1) the technical expertise of the manufacturer in cultivating medical cannabis and converting the medical cannabis into an acceptable delivery method under subdivision 1, paragraph (e);

(2) the qualifications of the manufacturer's employees;

(3) the long-term financial stability of the manufacturer;

(4) the ability to provide appropriate security measures on the premises of the manufacturer;

(5) whether the manufacturer has demonstrated an ability to meet the medical cannabis production needs required by this section; and

(6) the manufacturer's projection and ongoing assessment of fee levels on patients with a qualifying condition.

(c) The commissioner shall require the medical cannabis manufacturer to contract with an independent laboratory to test all medical cannabis produced by the manufacturer. The commissioner shall approve the laboratory chosen by the manufacturer and require that the laboratory report testing results to the manufacturer in a manner determined by the commissioner.

(d) The commissioner shall make an initial determination by December 1, 2014, after reviewing medical and scientific literature, of the range of chemical compositions of any plant of the genus cannabis that will likely be medically beneficial for each of the qualifying medical conditions, including a range of recommended doses for each condition. Once determined, the commissioner shall provide a listing of the range of chemical compositions and range of dosages to the manufacturer and publish the listing on the department Web site.

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(e) The commissioner shall adopt rules necessary for the manufacturer to begin distribution of medical cannabis products to patients under the registry program by July 1, 2015, and have notice of proposed rules published in the State Register prior to January 1, 2015.

(f) The commissioner shall, within 30 days of a deadline listed in this section, advise the public and the co-chairs of the task force on medical cannabis therapeutic research if the commissioner is unable to complete any requirements under this section by the deadline listed in this section. The commissioner shall provide a written statement as to the reason or reasons the deadline will not be met. Upon request of the commissioner, the task force shall extend any deadline by six months, but may not extend any deadline more than three times.

Subd. 5. Rulemaking. The commissioner shall adopt rules to implement this section. Rules for which notice is published in the State Register before January 1, 2015 may be adopted using the process in section 14.389.

Subd. 6. Patient registry program established. (a) The commissioner of health shall establish a patient registry program to evaluate data on patient demographics, effective treatment options, clinical outcomes, and quality-of-life outcomes for the purpose of making clinically significant findings regarding patients with a qualifying medical condition engaged in the therapeutic use of medical cannabis.

(b) The commissioner shall:

(1) give notice of the program to health care practitioners in the state who are eligible to serve as a health care practitioner as defined in subdivision 1, paragraph (c), and explain the purposes and requirements of the program;

(2) allow each health care practitioner in the state who meets or agrees to meet the program's requirements and who requests to participate, to be included in the registry program to collect data for the patient registry;

(3) provide explanatory information and assistance to each health care practitioner in understanding the nature of therapeutic use of medical cannabis within program requirements;

(4) create and provide a written certification to be used by a health practitioner for the practitioner to certify whether a patient has been diagnosed with a qualifying medical condition and include in the certification an option for the practitioner to certify whether the patient, in the health care practitioner's medical opinion, is mentally or physically disabled and, as a result of that disability, the patient is unable to self-administer medication;

(5) supervise the participation of the health care practitioner in conducting patient treatment and health records reporting in a manner that ensures stringent security and record-keeping requirements and that prevents the unauthorized release of private data on individuals as defined by section 13.02;

(6) develop safety criteria for patients with a qualifying condition as a requirement of the patient's participation in the program, to prevent the patient from undertaking any task under the influence of medical cannabis that would constitute negligence or professional malpractice on the part of the patient; and

(7) conduct research and studies based on data from health records submitted to the registry program and submit reports on intermediate or final research results to the legislature and major scientific journals. The commissioner may contract with a third party to complete the requirements of this clause.

(c) The commissioner shall develop a patient application for enrollment into the registry program. The application shall be available to the patient and given to health care practitioners in the state who are eligible to serve as a health care practitioner as defined under subdivision 1, paragraph (c). The application must include:

(1) the name, mailing address, and date of birth of the qualifying patient;

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(2) the name, mailing address, and telephone number of the qualifying patient's health care practitioner;

(3) the name, mailing address, and date of birth of the patient's designated caregiver, if any, or, if the patient is under age 18, the patient's parent or legal guardian;

(4) a copy of the written certification from the patient's health care practitioner that is dated within 90 days prior to submitting the application which certifies that the patient has been diagnosed with a qualifying medical condition and, if applicable, that, in the health care practitioner's medical opinion, the patient is mentally or physically disabled and, as a result of that disability, the patient is unable to self-administer medication; and

(5) all other signed affidavits and enrollment forms required by the commissioner under this section, including, but not limited to, the disclosure under paragraph (e).

(d) The commissioner shall register a single designated caregiver for a patient if the patient's health care provider certified that the patient, in the health care practitioner's medical opinion, is developmentally or physically disabled and, as a result of that disability, the patient is unable to self-administer medication and the caregiver has agreed, in writing, to be a patient's designated caregiver. As a condition of registration as a designated caregiver, the commissioner shall require the person:

(1) to be at least 21 years of age;

(2) to not already be registered as a caregiver for another patient enrolled in the registry program;

(3) to agree to only possess any medical cannabis product for purposes of administration of the medical cannabis to the patient within the patient's primary place of residence; and

(4) to agree that if the application is approved, the person will not be a registered designated caregiver for more than one patient.

(e) The commissioner shall develop a disclosure form and require, as a condition of enrollment, all patients to sign a copy of the disclosure. The disclosure must include:

(1) a statement that notwithstanding any law to the contrary, the commissioner of health, or an employee of any state agency, may not be held civilly or criminally liable for any injury, loss of property, personal injury, or death caused by any act or omission while acting within the scope of office or employment under this section; and

(2) the patient's acknowledgement that enrollment in the patient registry program is conditional on the patient's agreement to meet all of the requirements of subdivision 9;

(f) After receipt of a patient's application and signed disclosure, the commissioner shall enroll the patient in the registry program and assign the patient a patient registry number. A patient's enrollment in the registry program shall only be denied if the patient:

(1) does not have written certification from a health care provider that the patient has been diagnosed with a qualifying medical condition;

(2) has not signed and returned the disclosure form required under paragraph (d) to the commissioner;

(3) does not provide the information required;

(4) has previously been removed from the registry program for violations of subdivision 9; or

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(5) provides false information.

(g) The commissioner shall give written notice to a patient of the reason for denying enrollment in the registry program.

(h) Denial of enrollment into the registry program is considered a final decision of the commissioner and is subject to judicial review.

(i) A patient's enrollment in the registry program may only be revoked if a patient violates a requirement in subdivision 9.

(j) The commissioner shall develop a registry verification to provide to the health care practitioner identified in the patient's application and to the manufacturer. The registry verification shall include:

(1) the patient's name and date of birth;

(2) the patient registry number assigned to the patient;

(3) the patient's qualifying medical condition as provided by the patient's health care provider in the written certification; and

(4) the name and date of birth of the patient's registered designated caregiver, if any, or, if the patient is under age 18, the name of the patient's parent or legal guardian.

(k) If the commissioner adds a delivery form under subdivision 1, paragraph (e), or a qualifying medical condition under subdivision 1, paragraph (m), the commissioner shall notify the legislature by January 15 of any year in which the commissioner wishes to make the change. The change shall be effective on August 1 of that year, unless the legislature by law provides otherwise. As part of the January submission, the commissioner shall notify the chairs and ranking minority members of the legislative policy committees having jurisdiction over health and public safety of the addition and the reasons for its addition, including any written comments received by the commissioner from the public and any guidance received from the task force on medical cannabis research.

(l) Nothing in this section requires the medical assistance and MinnesotaCare programs to reimburse an enrollee or a provider for costs associated with the medical use of cannabis. Medical assistance and MinnesotaCare shall continue to reimburse providers for covered services related to treatment of a recipient's qualifying medical condition.

(m) The establishment of the registry program is not intended in any manner whatsoever to condone or promote the illicit recreational use of marijuana.

Subd. 7. Health care practitioner duties. (a) Prior to a patient's enrollment in the registry program, a health care practitioner shall:

(1) determine, in the health care practitioner's medical judgment, whether a patient suffers from a qualifying medical condition as defined in subdivision 1, paragraph (m), and if so determined, provide the patient with a written certification of that diagnosis;

(2) determine whether a patient is developmentally or physically disabled and, as a result of that disability, the patient is unable to self-administer medication, and, if so determined, include that determination on the patient's written certification of diagnosis;

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(3) advise patients, registered designated caregivers, and parents or legal guardians of patients under age 18 of the existence of any nonprofit patient support groups or organizations;

(4) provide explanatory information from the commissioner to patients with qualifying medical conditions, including disclosure to all patients about the experimental nature of therapeutic use of medical cannabis, the possible risks and side effects of the proposed treatment, the application and other materials from the commissioner, and provide patients with the Tennessen warning as required by section 13.04, subdivision 2; and

(5) agree to continue treatment of the patient's qualifying medical condition and report medical findings to the commissioner.

(b) Upon notification from the commissioner of the patient's enrollment in the registry program, the health care practitioner shall:

(1) participate in the patient registry reporting system under the guidance and supervision of the commissioner of health;

(2) report health records of the patient throughout the ongoing treatment of the patient to the commissioner in a manner determined by the commissioner of health and in accordance with paragraph (c); and

(3) otherwise comply with all requirements developed by the commissioner.

(c) Data collected on patients by a health care practitioner and reported to the patient registry are health records under section 144.291 and are private data on individuals under section 13.02 but may be used or reported in an aggregated, nonidentifiable form as part of a scientific, peer-reviewed publication of research conducted under this section.

Subd. 8. Manufacturer of medical cannabis duties. (a) The manufacturer of medical cannabis shall provide a reliable and ongoing supply of all medical cannabis products needed for the registry program.

(b) All cultivation, harvesting, manufacturing, and packing of cannabis must take place in an enclosed, locked facility at a physical address provided to the commissioner during the registration process.

(c) The medical cannabis manufacturer shall produce medical cannabis with chemical compositions as determined by the commissioner.

(d) The medical cannabis manufacturer shall contract with a laboratory, subject to the commissioner's approval of the laboratory and any additional requirements set by the commissioner, for purposes of testing all medical cannabis manufactured by the medical cannabis manufacturer as to content, contamination, and consistency to verify the medical cannabis meets the requirements of subdivision 1, paragraph (e).

(e) The manufacturer must process and prepare any cannabis plant material into a form allowable under subdivision 1, paragraph (e), prior to distribution of any medical cannabis.

(f) The manufacturer shall require that any employee licensed as a pharmacist pursuant to chapter 151 and the rules promulgated pursuant to that chapter be the only employees to distribute the medical cannabis to a patient.

(g) The manufacturer shall only distribute medical cannabis products to the patient or, if the patient is under age 18, to the patient's parent or legal guardian.

(h) Prior to distribution of any medical cannabis products to any patient or, if the patient is under age 18, the patient's parent of legal guardian, the manufacturer shall:

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(1) verify that the manufacturer has received the registry verification from the commissioner for that individual patient;

(2) verify that the person requesting the distribution of medical cannabis is the patient, or, if the patient is under age 18, the patient's parent or legal guardian, listed in the registry verification, in accordance with section 152.11, subdivision 2d;

(3) assign a tracking number to each individual medical cannabis product;

(4) ensure that any employee of the manufacturer licensed by a pharmacist pursuant to chapter 151 and the rules promulgated pursuant to that chapter has consulted with the patient to determine the proper dosage for the individual patient based on the recommendations of the range of chemical compositions of the medical cannabis and the range of proper dosages provided by the commissioner;

(5) properly label each medical cannabis product with individually identifying information, including:

(i) the patient's name and date of birth;

(ii) the name and date of birth of the patient's registered designated caregiver, or, if the patient is under age 18, the name of the patient's parent or legal guardian, if either were included on the registry verification;

(iii) the patient's registry number;

(iv) the chemical composition of the medical cannabis; and

(v) the dosage; and

(6) ensure that the medical cannabis distributed to a patient contains a maximum of a 30-day supply of the dosage determined for that patient.

(i) If the patient has a registered designated caregiver, the manufacturer shall deliver properly labeled medical cannabis products to the patient or the patient's registered designated caregiver but only at the patient's primary residence. The manufacturer shall verify that the person to whom the medical cannabis product is being delivered is either the patient or the patient's registered designated caregiver, in accordance with section 152.11, subdivision 2d. The manufacturer shall not distribute medical cannabis products to a registered designated caregiver at the premises of the manufacturer.

(j) The manufacturer shall report to the commissioner, on a monthly basis, the following information on each individual patient from the month prior to the report:

(1) the amount and dosages of medical cannabis products distributed;

(2) the chemical composition of the medical cannabis; and

(3) the tracking number assigned to any medical cannabis product distributed.

(k) The operating documents of the manufacturer must include:

(1) procedures for the oversight of the manufacturer and procedures to ensure accurate record keeping; and

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(2) procedures for the implementation of appropriate security measures to deter and prevent the theft of cannabis and unauthorized entrance into areas containing cannabis.

(l) The manufacturer shall not share office space with, refer patients to a health care practitioner, or have any financial relationship with a health care practitioner.

(m) The manufacturer shall not permit any person to consume cannabis on the property of the manufacturer.

(n) The manufacturer is subject to reasonable inspection by the commissioner.

(o) For purposes of this section only, the medical cannabis manufacturer is not subject to the Board of Pharmacy licensure or regulatory requirements under chapter 151.

Subd. 9. Patient duties. (a) A patient shall apply to the commissioner for enrollment in the registry program by submitting an application, as defined in subdivision 6, paragraph (c), and an annual registration fee as determined under subdivision 13, paragraph (a).

(b) As a condition of continued enrollment, a patient shall agree to:

(1) continue to receive regularly scheduled treatment for their qualifying medical condition from their health care practitioner; and

(2) report changes in their qualifying medical condition to their health care practitioner.

Subd. 10. Confidentiality. (a) Data in patient files with both the commissioner and the health care practitioner, and data submitted to or by the medical cannabis manufacturer, are private data on individuals or nonpublic data as defined in section 13.02.

(b) Data kept or maintained by the commissioner may not be used for any purpose not provided for in this section and may not be combined or linked in any manner with any other list or database.

Subd. 11. Protections for registry program participation; criminal and civil. (a) There is a presumption that a patient enrolled in the registry program under this section is engaged in the authorized use of medical cannabis.

(b) The presumption may be rebutted by evidence that conduct related to use of medical cannabis was not for the purpose of treating or alleviating the patient's qualifying medical condition or symptoms associated with the patient's qualifying medical condition pursuant to this section.

(1) use or possession of medical cannabis products by a patient enrolled in the registry program, or possession by the parent or guardian of a patient under age 18;

(2) possession of medical cannabis products by a registered designated caregiver, only if the registered designated caregiver is in possession of the medical cannabis products within the primary residence of the individual patient in which the caregiver has been registered to assist;

(3) possession, dosage determination, or sale of medical cannabis by the medical cannabis manufacturer or employees of the manufacturer; and

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(4) possession of medical cannabis products by any person while carrying out the duties required under this section.

(d) Medical cannabis obtained and distributed pursuant to this section and associated property is not subject to forfeiture under sections 609.531 to 609.5316.

(e) The commissioner, the commissioner's staff, and any health care practitioner are not subject to any civil or disciplinary penalties by the Board of Medical Practice or by any business, occupational, or professional licensing board or entity, solely for the participation in the registry program under this section. Nothing in this section prohibits a professional licensing board for sanctioning actions outside of those actions allowed under this section.

(f) Notwithstanding any law to the contrary, the commissioner of health, or an employee of any state agency, may not be held civilly or criminally liable for any injury, loss of property, personal injury, or death caused by any act or omission while acting within the scope of office or employment under this section.

Subd. 12. Discrimination prohibited. (a) No school or landlord may refuse to enroll or lease to and may not otherwise penalize a person solely for the person's status as a patient enrolled in the registry program under this section, unless failing to do so would violate federal law or regulations or cause the school or landlord to lose a monetary or licensing-related benefit under federal law or regulations.

(b) For the purposes of medical care, including organ transplants, a registry program enrollee's use of medical cannabis under this section is considered the equivalent of the authorized use of any other medication used at the discretion of a physician and does not constitute the use of an illicit substance or otherwise disqualify a qualifying patient from needed medical care.

(c) Unless a failure to do so would violate federal law or regulations or cause an employer to lose a monetary or licensing-related benefit under federal law or regulations, an employer may not discriminate against a person in hiring, termination, or any term or condition of employment, or otherwise penalize a person, if the discrimination is based upon either of the following:

(1) the person's status as a patient enrolled in the registry program under this section; or

(2) a patient's positive drug test for cannabis components or metabolites, unless the patient used, possessed, or was impaired by medical cannabis on the premises of the place of employment or during the hours of employment.

(d) A person shall not be denied custody of or visitation rights or parenting time with a minor solely for the person's status as a patient enrolled in the registry program under this section, and there shall be no presumption of neglect or child endangerment for conduct allowed under this section, unless the person's behavior is such that it creates an unreasonable danger to the safety of the minor as established by clear and convincing evidence.

Subd. 13. Fees; medical cannabis registry account. (a) The commissioner shall collect an enrollment fee of $200 from qualified patients enrolled under this section. If the patient receives Social Security disability, Supplemental Security Insurance payments, or is enrolled in medical assistance or MinnesotaCare then the fee shall be $50. The fees shall be payable annually and are due on the anniversary date of the patient's enrollment. The fee amount shall be deposited in the medical cannabis registry account in the state treasury and credited to the state government special revenue fund.

(b) The medical cannabis manufacturer may charge patients enrolled in the registry program a reasonable fee for costs associated with the operations of the manufacturer. The manufacturer may charge fees associated with the delivery of medical cannabis pursuant to subdivision 8, paragraph (i), but shall only charge the fee to those patients who received the delivery service. The manufacturer may establish a sliding scale of patient fees based upon a qualifying patient's household income and may accept private donations to reduce patient fees.

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Subd. 14. Nursing facilities. Nursing facilities licensed under chapter 144A, or boarding care homes licensed under section 144.50, may adopt reasonable restrictions on the use of medical cannabis by persons receiving services. The restrictions may include a provision that the facility will not store or maintain the patient's supply of medical cannabis, that the facility is not responsible for providing the medical cannabis for qualifying patients, and that medical cannabis be consumed only in a place specified by the facility. Nothing contained in this section shall require the facilities to adopt such restrictions, and no facility shall unreasonably limit a qualifying patient's access to or use of medical cannabis.

Sec. 2. Minnesota Statutes 2012, section 256B.0625, subdivision 13d, is amended to read:

Subd. 13d. Drug formulary. (a) The commissioner shall establish a drug formulary. Its establishment and publication shall not be subject to the requirements of the Administrative Procedure Act, but the Formulary Committee shall review and comment on the formulary contents.

(b) The formulary shall not include:

(1) drugs, active pharmaceutical ingredients, or products for which there is no federal funding;

(2) over-the-counter drugs, except as provided in subdivision 13;

(3) drugs or active pharmaceutical ingredients used for weight loss, except that medically necessary lipase inhibitors may be covered for a recipient with type II diabetes;

(4) drugs or active pharmaceutical ingredients when used for the treatment of impotence or erectile dysfunction;

(5) drugs or active pharmaceutical ingredients for which medical value has not been established; ~~and~~

(6) drugs from manufacturers who have not signed a rebate agreement with the Department of Health and Human Services pursuant to section 1927 of title XIX of the Social Security Act.; and

(7) medical cannabis as defined under section 152.22.

(c) If a single-source drug used by at least two percent of the fee-for-service medical assistance recipients is removed from the formulary due to the failure of the manufacturer to sign a rebate agreement with the Department of Health and Human Services, the commissioner shall notify prescribing practitioners within 30 days of receiving notification from the Centers for Medicare and Medicaid Services (CMS) that a rebate agreement was not signed.

Sec. 3. [152.23] MEDICAL CANNABIS MANUFACTURER ACCOUNT.

Subdivision 1. Creation of account. (a) A medical cannabis manufacturer account is created in the state government special revenue fund for the purpose of carrying out the commissioner's responsibilities associated with the regulation of medical cannabis manufacturers under section 152.22.

(b) The account shall be kept in the state treasury and shall be paid out in the manner prescribed by law.

(c) The account shall consist of the money paid by the medical cannabis manufacturer as provided in this section. Money in the account is appropriated to the commissioner of health for the purposes of this section.

Subd. 2. Medical cannabis manufacturer; fees and expenses. When the commissioner of health audits, inspects, examines, or visits a medical cannabis manufacturer, the manufacturer of medical cannabis shall pay into the medical cannabis manufacturer account the per diem salaries and necessary expenses of the employees of the Department of Health who are conducting or participating in the examination, inspection, visit, or desk audit. The per diem salary fee shall be determined by the commissioner.

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Subd. 3. Purposes for which the account may be spent. The commissioner shall use the fund for the payment of per diem salaries and expenses of special examiners and appraisers, the expenses of the commissioner of health or designee, and employees of the department when actively participating in any visit, audit, inspection, or examination of the medical cannabis manufacturer. Expenses include meals, lodging, transportation, and mileage.

Sec. 4. [152.24] IMPACT ASSESSMENT OF MEDICAL CANNABIS THERAPEUTIC RESEARCH.

Subdivision 1. Task force on medical cannabis therapeutic research. (a) A 23-member task force on medical cannabis therapeutic research is created to conduct an impact assessment of medical cannabis therapeutic research. The task force shall consist of the following members:

(1) two members of the house of representatives, one selected by the speaker of the house, the other selected by the minority leader;

(2) two members of the senate, one selected by the majority leader, the other selected by the minority leader;

(3) four members representing consumers or patients enrolled in the registry program, including at least two parents of patients under age 18;

(4) four members representing health care providers, including one licensed pharmacist;

(5) four members representing law enforcement, one from the Minnesota Chiefs of Police Association, one from the Minnesota Sheriff's Association, one from the Minnesota Police and Peace Officers Association, and one from the Minnesota County Attorneys Association;

(6) four members representing substance use disorder treatment providers; and

(7) the commissioners of health, human services, and public safety.

(b) Task force members listed under paragraph (a), clauses (3), (4), (5), and (6), shall be appointed by the governor. Members shall serve on the task force at the pleasure of the appointing authority.

(c) There shall be two cochairs of the task force chosen from the members listed under paragraph (a). One cochair shall be selected by the speaker of the house and the other cochair shall be selected by the majority leader of the senate. The expense reimbursement for members of the task force is governed by section 15.059.

(d) Members of the task force other than those in paragraph (a), clauses (1), (2), and (7), shall receive expenses as provided in section 15.059, subdivision 6.

Subd. 2. Impact assessment. The task force shall hold hearings to conduct an assessment that evaluates the impact of the use of medical cannabis and evaluate Minnesota's activities and other states' activities involving medical cannabis, and offer analysis of:

(1) program design and implementation;

(2) the impact on the health care provider community;

(3) patient experiences;

(4) the impact on the incidence of substance abuse;

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(5) access to and quality of medical products;

(6) the impact on law enforcement and prosecutions;

(7) public awareness and perception; and

(8) any unintended consequences.

Subd. 3. Reports to the legislature. (a) The cochairs shall submit the following reports to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over health and human services, public safety, judiciary, and civil law:

(1) by February 1, 2015, a report on the design and implementation of the registry program; and

(2) every two years thereafter, a complete report on the impact assessment.

(b) The task force may make recommendations to the legislature on whether to add or remove conditions from the list of qualifying medical conditions.

Subd. 4. Expiration. The task force on medical cannabis therapeutic research does not expire.

Sec. 5. APPROPRIATIONS, MEDICAL CANNABIS RESEARCH.

Subdivision 1. Health Department. $2,795,000 is appropriated in fiscal year 2015 from the general fund to the commissioner of health for implementing the medical cannabis therapeutic research study in this act. The base for this appropriation is $829,000 in fiscal year 2016 and $728,000 in fiscal year 2017.

Subd. 2. Legislative Coordinating Commission. $24,000 is appropriated in fiscal year 2015 from the general fund to the Legislative Coordinating Commission to administer the task force on medical cannabis therapeutic research and for the task force to conduct the impact assessment on the use of cannabis for medicinal purposes.

Subd. 3. Health Department base. The base appropriation for the commissioner of health from the state government special revenue fund is increased by $631,000 in fiscal year 2016 and fiscal year 2017 for costs associated with operations of the medical cannabis manufacturers under Minnesota Statutes, section 152.22, subdivision 13.

Sec. 6. EFFECTIVE DATE.

Sections 1 to 5 are effective July 1, 2014."

Delete the title and insert:

"A bill for an act relating to health; providing for medical cannabis therapeutic research study; creating account; providing appointments; requiring rulemaking; requiring reports; appropriating money; amending Minnesota Statutes 2012, section 256B.0625, subdivision 13d; proposing coding for new law in Minnesota Statutes, chapter 152."

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

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SECOND READING OF SENATE BILLS

S. F. Nos. 2712 and 2470 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Daudt; Gruenhagen; Myhra; Urdahl; Quam; Johnson, B.; Albright; Wills and McNamara introduced:

H. F. No. 3375, A bill for an act relating to elections; presidential electors; providing for designation of certain presidential electors and specifying the duties of presidential electors; amending Minnesota Statutes 2012, sections 208.03; 208.05; 208.08.

The bill was read for the first time and referred to the Committee on Elections.

Hortman introduced:

H. F. No. 3376, A bill for an act relating to electronic transactions; clarifying certain agreements to vary delivery by mail; amending Minnesota Statutes 2012, section 325L.08.

The bill was read for the first time and referred to the Committee on Commerce and Consumer Protection Finance and Policy.

Gunther introduced:

H. F. No. 3377, A bill for an act relating to unemployment; expanding the measurement of unemployed and underemployed Minnesotans; designating use of funds; proposing coding for new law in Minnesota Statutes, chapter 116J.

The bill was read for the first time and referred to the Committee on Jobs and Economic Development Finance and Policy.

Persell moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by Speaker pro tempore Hortman.

Halverson was excused between the hours of 11:15 a.m. and 11:55 a.m.

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MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1604, A bill for an act relating to health; requiring reporting of diverted narcotics or controlled substances; amending Minnesota Statutes 2012, section 214.33, by adding a subdivision.

The Senate has appointed as such committee:

Senators Nelson, Rosen and Latz.

Said House File is herewith returned to the House.

JoAnne M. Zoff, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1851, A bill for an act relating to public safety; enhancing penalties for certain repeat criminal sexual conduct offenders; amending Minnesota Statutes 2012, sections 243.167, subdivision 1; 609.135, subdivision 2; 609.3451, subdivision 3.

The Senate has appointed as such committee:

Senators Schmit, Kent and Housley.

Said House File is herewith returned to the House.

JoAnne M. Zoff, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1863, A bill for an act relating to state government; modifying laws governing certain executive branch advisory groups; amending Minnesota Statutes 2012, sections 3.922, subdivision 8; 15B.11, subdivision 2; 16B.055, subdivision 1; 28A.21, subdivision 6; 43A.316, subdivisions 2, 3, 6; 62J.495, subdivision 2; 79A.02, subdivision 1; 85.0146, subdivision 1; 89A.03, subdivision 5; 89A.08, subdivision 1; 92.35; 93.0015, subdivision 3; 97A.055, subdivision 4b; 103F.518, subdivision 1; 115.55, subdivision 12; 115.741, by adding a subdivision;

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116U.25; 120B.365, subdivision 2; 134.31, subdivision 6; 144.1255, subdivision 1; 144.1481, subdivision 1; 144.608, subdivision 2; 144G.06; 145A.10, subdivision 10; 148.7805, subdivision 2; 153A.20, subdivision 2; 162.07, subdivision 5; 162.13, subdivision 3; 174.52, subdivision 3; 175.007, subdivision 1; 182.656, subdivision 3; 206.805; 214.13, subdivision 4; 216B.813, subdivision 2; 216B.815; 216C.02, subdivision 1; 240.18, subdivision 4; 241.021, subdivision 4c; 243.1606, subdivision 4; 252.30; 256B.0625, subdivisions 13c, 13i; 256B.27, subdivision 3; 256C.28, subdivision 1; 270C.12, subdivision 5; 298.2213, subdivision 5; 298.2214, subdivision 1; 298.297; 299A.62, subdivision 2; 299A.63, subdivision 2; 299E.04, subdivision 5; 326B.07, subdivision 1; 611A.32, subdivision 2; 611A.33; 611A.345; 611A.35; 629.342, subdivision 2; Minnesota Statutes 2013 Supplement, sections 103I.105; 125A.28; 136A.031, subdivision 3; 144.98, subdivision 10; 254A.035, subdivision 2; 254A.04; 256B.064, subdivision 1a; 256B.093, subdivision 1; 260.835, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 162; repealing Minnesota Statutes 2012, sections 6.81; 15.059, subdivision 5; 15B.32, subdivision 7; 16E.0475; 43A.316, subdivision 4; 43A.317, subdivision 4; 62U.09; 82B.021, subdivision 10; 82B.05, subdivisions 1, 3, 5, 6, 7; 82B.06; 84.964; 103F.518, subdivision 11; 116L.361, subdivision 2; 116L.363; 127A.70, subdivision 3; 136A.031, subdivision 5; 144.011, subdivision 2; 145.98, subdivisions 1, 3; 147E.35, subdivision 4; 162.02, subdivisions 2, 3; 162.09, subdivisions 2, 3; 196.30; 197.585, subdivision 4; 243.93; 245.97, subdivision 7; 252.31; 270C.991, subdivision 4; 298.2213, subdivision 5; 299C.156; 299M.02; 402A.15; 611A.34; Minnesota Statutes 2013 Supplement, sections 15.059, subdivision 5b; 197.585, subdivision 2.

The Senate has appointed as such committee:

Senators Sieben, Newman and Wiklund.

Said House File is herewith returned to the House.

JoAnne M. Zoff, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1951, A bill for an act relating to retirement; various Minnesota public employee retirement plans; allowing MSRS-General deferred members to vote in board elections; continuing Stevens County Housing and Redevelopment Authority employees in PERA-General; excluding fixed-route bus drivers employed by the St. Cloud Metropolitan Transit Commission from PERA-General coverage; increasing member and employer contribution rates for certain retirement plans; providing for the consolidation of the Duluth Teachers Retirement Fund Association retirement plan and fund into the statewide Teachers Retirement Association; revising an amortization target date, creating new state aid programs; appropriating money; extending a MnSCU early retirement incentive program; increasing the limit for certain reemployed MnSCU retirees; extending the applicability of a second chance at tenure retirement coverage election opportunity for MnSCU faculty members; revising investment authority for various defined contribution plans or programs; authorizing the State Board of Investment to revise, remove, or create investment options for the Minnesota supplemental investment fund; expanding permissible investments under the unclassified state employees retirement program, the public employees defined contribution plan, the deferred compensation program, and the health care savings plan; revising salary reporting requirements; clarifying retirement provision applications to sheriffs; revising local government postretirement option program requirements and extending expiration date; clarifying future postretirement adjustment rates for former members of the former Minneapolis Firefighters Relief Association and the former Minneapolis Police Relief Association; making technical changes to amortization state aid and supplemental state aid; clarifying the eligibility of independent nonprofit firefighting corporations to receive police and fire supplemental retirement state aid; implementing the recommendations of the 2013-2014 state auditor volunteer fire

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working group; modifying the disability benefit application deadline for certain former Wadena County sheriff's deputies; authorizing city of Duluth and Duluth Airports Authority employee salary-supplement payments coverage following Court of Appeals decision; specifying interest rate for computing joint and survivor annuities; revising postretirement adjustment triggers; revising reemployed annuitant withholding in certain divorce situations; clarifying medical advisor and resumption of teaching provisions; specifying explicit postretirement adjustment assumptions; allowing volunteer firefighter relief associations to pay state fire chiefs association dues from the special fund; authorizing MnSCU employee to elect TRA coverage and transfer past service from IRAP to TRA; clarifying the applicability of 2013 postretirement adjustment modifications to certain county sheriffs; ratifying or grandparenting MSRS-Correctional plan coverage for Department of Human Services employees; allowing various service credit purchases; requiring a PERA report on certain survivor benefit amounts; amending Minnesota Statutes 2012, sections 3A.01, subdivision 1a; 11A.17, subdivisions 1, 9; 13.632, subdivision 1; 122A.18, subdivision 7a; 136F.481; 352.01, subdivisions 2b, 12; 352.03, subdivision 1, by adding a subdivision; 352.04, subdivisions 2, 3; 352.115, subdivisions 8, 10; 352.1155, subdivisions 1, 4; 352.90; 352.91, subdivisions 1, 2, 3c, 3d, 3e, 3f, by adding a subdivision; 352.92, subdivisions 1, 2; 352.965, subdivision 4, by adding subdivisions; 352.98, subdivision 2; 352B.08, subdivision 3; 352D.04, by adding subdivisions; 353.01, subdivision 14; 353.27, subdivisions 2, 3, 3b, 4, by adding a subdivision; 353.30, subdivision 3; 353.37, by adding a subdivision; 353.371, by adding a subdivision; 353.6511, subdivision 7; 353.6512, subdivision 7; 353D.05, subdivision 1, by adding a subdivision; 354.05, subdivisions 2, 7, 13; 354.42, subdivisions 2, 3; 354.44, subdivision 5; 354.445; 354.48, subdivision 6a; 354A.011, subdivisions 11, 15a, 27; 354A.021, subdivision 1; 354A.092; 354A.093, subdivision 1; 354A.096; 354A.12, subdivision 2; 354A.29, subdivision 8; 354A.31, subdivisions 1, 3a; 354A.32, subdivision 1; 354A.35, subdivision 1; 354A.37, subdivisions 3, 4; 354A.39; 354A.41; 354B.21, subdivisions 2, 3a; 355.01, subdivision 2c; 356.215, subdivision 11; 356.24, subdivision 1; 356.302, subdivision 7; 356.303, subdivision 4; 356.32, subdivision 2; 356.415, subdivision 1d; 356.42, subdivision 3; 356.465, subdivision 3; 356.47, subdivision 3; 356.635, subdivision 6; 356.99, subdivision 1; 356A.06, subdivisions 7, 7a; 424A.015, by adding a subdivision; 424A.016, subdivisions 4, 7; 424A.05, subdivision 3; 424A.08; 424B.12; 490.121, subdivision 2a; Minnesota Statutes 2013 Supplement, sections 69.051, subdivisions 1a, 3; 352.01, subdivision 2a; 352.03, subdivision 4; 353.01, subdivisions 2a, 2b; 353.651, subdivision 4; 354.436; 354.44, subdivision 6; 354A.12, subdivisions 1, 2a, 3a, 3c; 354A.27, subdivision 6a; 356.20, subdivision 2; 356.214, subdivision 1; 356.215, subdivision 8; 356.219, subdivision 8; 356.30, subdivision 3; 356.401, subdivision 3; 356.415, subdivisions 1a, 1c, 1e, 1f; 356.91; 363A.36, subdivision 1; 423A.02, subdivision 3; 423A.022, subdivisions 2, 3; 424A.016, subdivision 6; 424A.02, subdivisions 3, 7; 424A.092, subdivision 6; 424A.093, subdivisions 2, 6; 424A.094, subdivision 2; 424A.10, subdivision 2; Laws 2009, chapter 169, article 5, section 2, as amended; article 6, section 1; proposing coding for new law in Minnesota Statutes, chapters 354; 354A; 356; repealing Minnesota Statutes 2012, sections 11A.17, subdivision 4; 352.965, subdivision 5; 352D.04, subdivision 1; 353D.05, subdivision 2; 354A.021, subdivision 5; 354A.108; 354A.24; 354A.27, subdivision 5; 356.415, subdivision 3; Minnesota Statutes 2013 Supplement, sections 354A.27, subdivisions 6a, 7; 354A.31, subdivision 4a.

The Senate has appointed as such committee:

Senators Pappas, Johnson, Goodwin, Miller and Hayden.

Said House File is herewith returned to the House.

JoAnne M. Zoff, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 1984, A bill for an act relating to state government; providing for enhancement of accountability and transparency in public construction; establishing a requirement for a definition of responsible contractor; proposing coding for new law in Minnesota Statutes, chapter 16C.

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The Senate has appointed as such committee:

Senators Saxhaug, Hayden and Housley.

Said House File is herewith returned to the House.

JoAnne M. Zoff, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 2166, A bill for an act relating to elections; providing a study of the use of electronic rosters in elections; requiring secretary of state to evaluate electronic rosters in 2014 election; authorizing the use of electronic rosters statewide; proposing coding for new law in Minnesota Statutes, chapter 201.

The Senate has appointed as such committee:

Senators Bonoff, Kiffmeyer and Rest.

Said House File is herewith returned to the House.

JoAnne M. Zoff, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 2531, A bill for an act relating to campaign finance; making various technical changes; authorizing the board to request reconciliation information; authorizing certain fees; modifying certain definitions and fee amounts; imposing penalties; amending Minnesota Statutes 2012, sections 10A.01, subdivisions 5, 26; 10A.02, subdivision 11a; 10A.025, by adding a subdivision; 10A.09, subdivisions 1, 5, by adding a subdivision; 10A.12, subdivision 5; 10A.255, subdivision 3; 10A.28, subdivision 4; 211A.02, subdivision 2; Minnesota Statutes 2013 Supplement, sections 10A.01, subdivision 10; 10A.02, subdivision 11; 10A.025, subdivision 4; 10A.20, subdivisions 2, 5; repealing Minnesota Statutes 2012, section 10A.09, subdivision 8.

The Senate has appointed as such committee:

Senators Hoffman, Hayden and Newman.

Said House File is herewith returned to the House.

JoAnne M. Zoff, Secretary of the Senate

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Mr. Speaker:

I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:

H. F. No. 2925, A bill for an act relating to public safety; compensating exonerated persons; appropriating money; amending Minnesota Statutes 2012, section 609A.02, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 590; 611.

The Senate has appointed as such committee:

Senators Latz, Newman and Goodwin.

Said House File is herewith returned to the House.

JoAnne M. Zoff, Secretary of the Senate

Mr. Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 1874, A bill for an act relating to natural resources; appropriating money from environment and natural resources trust fund; modifying provisions for Legislative-Citizen Commission on Minnesota Resources; modifying requirements for land acquisition with trust fund money; amending Minnesota Statutes 2013 Supplement, section 116P.17; repealing Minnesota Statutes 2012, section 116P.05, subdivision 3.

JoAnne M. Zoff, Secretary of the Senate

CONCURRENCE AND REPASSAGE

Persell moved that the House concur in the Senate amendments to H. F. No. 1874 and that the bill be repassed as amended by the Senate. The motion prevailed.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 99 yeas and 29 nays as follows:

Those who voted in the affirmative were:

The bill was passed and its title agreed to.

McDonald was excused for the remainder of today's session.

S. F. No. 2065 was reported to the House.

Mahoney moved to amend S. F. No. 2065, the second engrossment, as follows:

Delete everything after the enacting clause and insert the following language of H. F. No. 2198, the first engrossment:

"Section 1. Minnesota Statutes 2012, section 116V.01, subdivision 2, is amended to read:

Subd. 2. Board of directors. The board of directors of the Agricultural Utilization Research Institute is comprised of:

(1) the chairs of the senate and the house of representatives standing committees with jurisdiction over agriculture finance or the chair's designee;

(2) ~~two representatives of statewide farm organizations~~ one member appointed by and serving at the pleasure of the Minnesota Farm Bureau, or its successor, and one member appointed by and serving at the pleasure of the Minnesota Farmers Union, or its successor;

(3) two representatives of agribusiness; and

(4) three representatives of the commodity promotion councils.

Sec. 2. [178.011] DEFINITIONS.

Subdivision 1. Scope. The terms defined in this section have the meanings given and apply to this chapter.

Subd. 2. Apprentice. "Apprentice" means a worker who is at least 16 years of age who is employed to learn an apprenticeable trade or occupation in a registered apprenticeship program under this chapter.

Subd. 3. Apprenticeship Advisory Board. "Apprenticeship Advisory Board" or "board" means the Apprenticeship Advisory Board established under section 178.02 and as an advisory State Apprenticeship Council as defined in Code of Federal Regulations, title 29, section 29.2.

Subd. 4. Apprenticeship program. "Apprenticeship program" means a program registered under this chapter that includes standards containing all terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices, as required under Code of Federal Regulations, title 29, parts 29 and 30, and a written apprenticeship agreement.

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Subd. 5. Commissioner. "Commissioner" means the commissioner of labor and industry or a duly designated representative of the commissioner who is an employee of the department.

Subd. 6. Department. "Department" means the Department of Labor and Industry established under section 175.001.

Subd. 7. Division. "Division" means the department's Labor Standards and Apprenticeship Division, established under sections 175.16 and 178.03, and the State Apprenticeship Agency as defined in Code of Federal Regulations, title 29, part 29, section 29.2.

Subd. 8. Employer. "Employer" means any person or organization employing an apprentice whether or not the person or organization is a party to an apprenticeship agreement with the apprentice.

Subd. 9. Journeyworker. "Journeyworker" means a person who has attained a level of skill, abilities, and competencies recognized within an industry as having mastered the skills and competencies required for the trade or occupation.

Subd. 10. Registered apprenticeship agreement. "Registered apprenticeship agreement" or "apprenticeship agreement" means a written agreement, complying with section 178.07, between the division, sponsor, and apprentice, and, if the apprentice is a minor, the minor's parent or guardian, which contains the terms and conditions of the employment and training of the apprentice.

Subd. 11. Related instruction. "Related instruction" means an organized and systematic form of instruction designed to provide the apprentice with the knowledge of the theoretical and technical subjects related to the apprentice's trade or occupation. The instruction may be given in a classroom through trade, occupational, or industrial courses or, when of equivalent value, by correspondence, electronic media, or other forms of self-study approved by the commissioner.

Subd. 12. Sponsor. "Sponsor" means an employer, employer association, or apprenticeship committee as defined by Code of Federal Regulations, title 29, part 29, section 29.2, that operates an apprenticeship program and in whose name the program is or is to be registered or approved.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 3. [178.012] UNIFORMITY WITH FEDERAL LAW.

Subdivision 1. Apprenticeship rules. Federal regulations governing apprenticeship in effect on July 1, 2013, as provided by Code of Federal Regulations, title 29, part 29, sections 29.1 to 29.6 and 29.11, are the apprenticeship rules in this state, subject to amendment by this chapter or by rule under section 178.041.

Subd. 2. State Apprenticeship Agency. The commissioner shall take all necessary steps as permitted by law to obtain and maintain the status of the division as a State Apprenticeship Agency recognized by the United States Department of Labor under Code of Federal Regulations, title 29, part 29, section 29.13.

EFFECTIVE DATE. This section is effective January 1, 2015.

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Sec. 4. Minnesota Statutes 2012, section 178.02, is amended to read:

178.02 APPRENTICESHIP ADVISORY BOARD.

Subdivision 1. Members. The commissioner ~~of labor and industry, hereinafter called the commissioner,~~ shall appoint an Apprenticeship Board~~, hereinafter referred to as the board,~~ composed of three representatives each from employer and employee organizations, and two representatives of the general public. ~~The director~~ A designee of the commissioner of education responsible for career and technical education or designee shall be an ex officio member of the board and shall serve in an advisory capacity only.

Subd. 2. Terms. The board shall not expire. The terms, compensation, and removal of appointed members shall be as provided in section 15.059.

Subd. 4. Duties. The board shall meet at the call of the commissioner and shall advise the commissioner about matters relating to this chapter. It shall propose occupational classifications for apprenticeship programs; propose minimum standards for apprenticeship programs and agreements; and advise on the establishment of such policies, procedures, and rules as the board or commissioner deems necessary in implementing the intent of this chapter.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 5. Minnesota Statutes 2012, section 178.03, is amended to read:

178.03 DIVISION OF LABOR STANDARDS AND APPRENTICESHIP.

Subdivision 1. Establishment of division. There is established a Division of Labor Standards and Apprenticeship in the Department of Labor and Industry. This division shall be administered by a director, and be under the supervision of the commissioner ~~of labor and industry, hereinafter referred to as the commissioner~~.

Subd. 2. Director of labor standards and apprenticeship. The commissioner shall appoint a director of the Division of Labor Standards and Apprenticeship, hereinafter referred to as the director, and may appoint and employ such clerical, technical, and professional help as is necessary to accomplish the purposes of this chapter. The director and division staff shall be appointed and shall serve in the classified service pursuant to civil service law and rules.

Subd. 3. Duties and functions. The director, under the supervision of the commissioner, and with the advice and consultation of the Apprenticeship Board, is authorized: to administer the provisions of this chapter; to promote apprenticeship and other forms of on-the-job learning; to establish, in cooperation and consultation with the Apprenticeship Board and with the apprenticeship committees, conditions, training, and learning standards for the approval of apprenticeship programs and agreements, which conditions and standards shall in no case be lower than those (1) prescribed by this chapter, and (2) established under The division shall be administered as prescribed by this chapter and in accordance with Code of Federal Regulations, title 29, part 29; to promote equal employment opportunity in apprenticeship and other on-the-job learning and to establish a Minnesota plan for equal employment opportunity in apprenticeship which shall be consistent with standards established under Code of Federal Regulations, title 29, part 30, as amended; to issue certificates of registration to sponsors of approved apprenticeship programs; to act as secretary of the Apprenticeship Board; to approve, if of the opinion that approval is for the best interest of the apprentice, any apprenticeship agreement which meets the standards established hereunder; to terminate any apprenticeship agreement in accordance with the provisions of such agreement; to keep a record of apprenticeship agreements and their disposition; to issue certificates of completion of apprenticeship; and to perform such other duties as the commissioner deems necessary to carry out the intent of this chapter; provided, that the administration and supervision of supplementary instruction in related subjects for apprentices; coordination of instruction on a concurrent basis with job experiences, and the selection and training of teachers and coordinators for

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~~such instruction shall be the function of state and local boards responsible for vocational education~~. The ~~director~~ division shall have the authority to make wage determinations applicable to the graduated schedule of wages and journeyworker wage rate for apprenticeship agreements, giving consideration to the existing wage rates prevailing throughout the state, except that no wage determination by the director shall alter an existing wage provision for apprentices or journeyworkers that is contained in a bargaining agreement in effect between an employer and an organization of employees, nor shall the director make any determination for the beginning rate for an apprentice that is below the wage minimum established by federal or state law.

Subd. 4. Reciprocity approval. The ~~director~~ commissioner, if requested by a ~~sponsoring entity~~ program sponsor, shall grant reciprocity approval to apprentices, apprenticeship programs of employers and unions who jointly form a sponsoring entity on a multistate basis in other than the building construction industry if such programs are in conformity with this chapter and have been registered in compliance with Code of Federal Regulations, title 29, part 29, by a state apprenticeship council recognized by or registered with the United States Department of Labor, Office of Apprenticeship, when such approval is necessary for federal purposes under Code of Federal Regulations, title 29, section 29.13(a) or 29.13(b)(7), and standards that are registered in other states. Program sponsors seeking reciprocal approval must meet the requirements of this chapter including the wage and hour provisions and apprentice ratio standards.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 6. [178.035] REGISTRATION OF APPRENTICESHIP PROGRAMS.

Subdivision 1. Application. To apply for the registration of an apprenticeship program, a sponsor shall submit a completed application to the division on a form provided by the commissioner, which shall include standards of apprenticeship that comply with the requirements of Code of Federal Regulations, title 29, part 29, section 29.5, and this chapter.

Subd. 2. Provisional approval. The division shall grant a provisional approval period of one year to an applicant demonstrating that the standards submitted meet the requirements of this chapter. The division may review each program granted provisional approval for quality and for conformity with the requirements of this section and section 178.036 at any time, but not less than biannually, during the provisional approval period. After review:

(1) a program that conforms with the requirements of this chapter:

(i) may be approved; or

(ii) may continue to be provisionally approved through the first full training cycle; and

(2) a program not in operation or not conforming with the requirements of this chapter during the provisional approval period shall be deregistered.

The division shall inform the applicant of the results of its review in writing at least 30 days prior to the expiration of the provisional approval period.

Subd. 3. Review. The division shall review all programs for quality and for conformity with the requirements of this chapter at the end of the first full training cycle. Subsequent review of a registered program must be conducted at least annually. Programs not in operation or not conforming to this chapter at the time of review may be recommended for deregistration.

Subd. 4. Program modification. To apply for modification of or change to a registered program, a sponsor shall submit a written request for modification to the division. The division shall approve or disapprove a modification request within 90 days from the date of receipt. If approved, the modification or change must be

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recorded and acknowledged within 90 days of its approval as an amendment to the registered program. If not approved, the division shall notify the sponsor in writing of the disapproval and the reasons for the disapproval. The division may provide technical assistance to a sponsor seeking to modify or change a registered program.

Subd. 5. Notice. When an application is submitted under subdivision 1 by an employer or employers' association, and where the standards, collective bargaining agreement, or other instrument provides for participation by a union in any manner in the operation of the substantive matters of the apprenticeship program, and the participation is exercised, a written acknowledgment of the union's agreement or a written statement specifying that the union has no objection to the registration is required. Where no union participation is evidenced and practiced, the employer or employers' association shall simultaneously furnish to the union, if any, which functions as the collective bargaining agent of the employees to be trained, a copy of its application for registration and the apprenticeship program. The commissioner shall provide a reasonable time of not less than 30 days nor more than 60 days for receipt of union comments, if any, before final action on the application for registration is taken. Union comments must be submitted to the division during the time period specified by the commissioner.

Subd. 6. Certificate. Upon registration of a program, the commissioner shall issue a certificate of registration to the sponsor. Within 30 days after the certificate is mailed or otherwise delivered to the sponsor, the sponsor must submit to the commissioner a copy of at least one executed apprenticeship agreement.

Subd. 7. Policy requirement. It must be the policy of the employer and sponsor that the recruitment, selection, employment, and training of apprentices during their apprenticeship must be without discrimination due to race, color, creed, religion, national origin, sex, sexual orientation, marital status, physical or mental disability, receipt of public assistance, or age. The employer and sponsor must take affirmative action to provide equal opportunity in apprenticeship and must operate the apprenticeship program as required under Code of Federal Regulations, title 29, part 30, and under the Minnesota plan for equal opportunity in apprenticeship.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 7. [178.036] STANDARDS OF APPRENTICESHIP.

Subdivision 1. Federal uniformity. Each program must have an organized, written plan of program standards embodying the terms and conditions of employment, training, and supervision of one or more apprentices in an apprenticeable trade or occupation, as defined in Code of Federal Regulations, title 29, part 29, section 29.4, and subscribed to by a sponsor and employer who has undertaken to carry out the apprentice training program. The program standards must contain the provisions that address each item identified in Code of Federal Regulations, title 29, part 29, section 29.5(b).

Subd. 2. Standards. (a) In addition to the requirements in subdivision 1, the program standards must also contain provisions in compliance with paragraphs (b) to (k):

(b) Related instruction. A minimum of 144 hours of related instruction is required in each training cycle. At least 50 hours of related safety instruction is required during the term of apprenticeship. Time spent in related instruction cannot be considered as hours of work as required by the job process schedule. Every apprenticeship instructor must meet the Department of Education's requirements for a vocational-technical instructor or be a subject matter expert, which is an individual such as a journeyworker who is recognized within an industry as having expertise in a specific trade or occupation.

(c) Job process schedule. Each time-based apprenticeship program must include not less than 2,000 hours of reasonably continuous employment.

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(d) Ratios. If the apprentice is covered by a collective bargaining agreement, the employer must follow the provisions of the collective bargaining agreement regarding the maximum number of apprentices to be employed at the work site for each journeyworker employed at the same work site. In the absence of a collective bargaining agreement, for the purposes of direct supervision and the safety and instruction of the apprentice, the ratio shall be:

(1) one apprentice for the first journeyworker employed at the work site plus one apprentice for each additional three journeyworkers employed at the work site;

(2) the work site ratio utilized by the majority of registered apprenticeship agreements in the same trade or occupation; or

(3) a program-specific ratio that has been approved by the Apprenticeship Advisory Board.

(e) Graduated schedule of wages. The graduated schedule of wages for an apprenticeship program shall be calculated as a percentage of the journeyworker rate in the majority of registered apprenticeship agreements in the same trade or occupation in the state. If there are no registered apprenticeship agreements in the same trade or occupation, the graduated schedule of wages may be determined by the sponsor.

(f) Probationary period. The standards must provide a period of probation of not more than 500 hours of employment and instruction extending over not more than four months, during which time the apprenticeship agreement shall be terminated by the director upon written request of either party, and providing that after such probationary period the apprenticeship agreement may be terminated by the director by mutual agreement of all parties thereto, or terminated by the director for good and sufficient reason.

(g) Dispute resolution. The program standards must include a provision that controversies or differences concerning the terms of the apprenticeship agreement which cannot be resolved by the parties thereto, or which are not covered by a collective bargaining agreement, may be submitted to the commissioner for determination as provided for in section 178.09.

(h) Term of apprenticeship. The term of apprenticeship may be measured either through:

(1) the time-based approach, which requires completion of at least 2,000 work hours of on-the-job training;

(2) the competency-based approach, which requires the attainment of competency; or

(3) the hybrid approach, which is a blend of the time-based and competency-based approaches.

(i) Training cycle. The training cycle for related instruction must be designated in hours, days, or months for each individual trade or occupation included in the standards.

(j) Responsibilities of the apprentice. An apprentice employed under the program standards shall agree to be punctual and regular in attendance, and to endeavor to the best of the apprentice's ability to perfect the required skills for the trade or occupation.

(k) Coordination of apprentices. The sponsor shall designate a qualified individual as a coordinator of apprentices who shall:

(1) maintain an adequate record of progress in training each apprentice;

(2) be responsible for assuring that the requirements of the applicable learning program are met during the prescribed training term; and

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(3) perform other duties as may be assigned by the sponsor relative to the development and operation of an effective program of apprenticeship.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 8. Minnesota Statutes 2012, section 178.041, subdivision 2, is amended to read:

Subd. 2. Chapter 14 applies. Rules, modifications, amendments, and repeals thereof which may be issued by the commissioner under this ~~section~~ chapter shall be adopted in accordance with chapter 14 and shall have the force and effect of law.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 9. [178.044] DETERMINATION OF APPRENTICE WAGES.

Subdivision 1. Maximum hours. The maximum number of hours of work per week 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 apprentice is employed. Time spent in related and supplemental instruction for any apprentice shall not be included in the maximum number of hours of work per workweek.

Subd. 2. Overtime. An apprentice may be allowed to work overtime provided that the overtime work does not conflict with related instruction course attendance. All time in excess of the number of hours of work per week as specified in the apprenticeship agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall be increased by the same percentage as the journeyworker's rate of pay for overtime is increased in the same industry or establishment.

Subd. 3. Journeyworker wage rate. If the apprentice is not covered by a collective bargaining agreement, the journeyworker wage rate upon which the apprentice agreement graduated schedule of wages is calculated shall be:

(1) the most current Minnesota state prevailing wage rate determination for the same trade or occupation in the county in which the apprentice's employer is located. If an apprenticeship agreement entered into after January 1, 2015, does not specify fringe benefits, the journeyworker wage rate upon which the apprentice wage rate is calculated must be the total rate listed in the wage determination; or

(2) if there is no Minnesota prevailing wage rate determination for the same trade or occupation in the county in which the apprentice's employer is located, the journeyworker wage may be determined by the sponsor with the approval of the division.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 10. Minnesota Statutes 2012, section 178.07, is amended to read:

178.07 REGISTERED APPRENTICESHIP AGREEMENTS.

Subdivision 1. Approval required. All terminations, cancellations, and transfers of apprenticeship agreements shall be approved by the division in writing. The division must be notified in writing by the sponsor within 45 days of all terminations, cancellations, or transfer of apprenticeship agreements.

Subd. 2. Signatures required. Apprenticeship agreements shall be signed by the sponsor, and by the apprentice, and if the apprentice is a minor, by a parent or legal guardian. When a minor enters into an apprenticeship agreement under this chapter for a period of learning extending into majority, the apprenticeship agreement shall likewise be binding for such a period as may be covered during the apprentice's majority.

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Subd. 3. Contents. Every apprenticeship agreement entered into under this chapter shall contain:

(1) the names of the contracting parties, and the signatures required by subdivision 1;

(2) the date of birth, and information as to the race and sex of the apprentice, and, on a voluntary basis, the apprentice's Social Security number;

~~(3) a statement of the trade, craft, occupation, or business which the apprentice is to be taught, and the time at which the apprenticeship will begin and end;~~

(3) contact information of the sponsor and the division;

(4) a statement ~~showing~~ of the trade or occupation which the apprentice is to be taught, the date on which the apprenticeship will begin, and the number of hours to be spent by the apprentice in work and the number of hours to be spent in concurrent, supplementary instruction in related subjects, which instruction shall be not less than 144 hours during each year of the apprenticeship term. The maximum number of hours of work per week not including time spent in related and supplemental instruction for any apprentice 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 apprentice is employed. An apprentice may be allowed to work overtime provided that the overtime work does not conflict with supplementary instruction course attendance. All time in excess of the number of hours of work per week as specified in the apprenticeship agreement shall be considered overtime. For overtime, the apprentice's rate of pay shall be increased by the same percentage as the journeyworker's rate of pay for overtime is increased in the same industry or establishment related instruction;

~~(5) a statement setting forth a schedule of the processes in the trade, occupation, or industry divisions in which the apprentice is to be taught and the approximate time to be spent at each process;~~

~~(6)~~ (5) a statement of the ~~graduated scale of~~ wages to be paid the apprentice ~~and whether the required school time shall be compensated~~ under sections 178.036, subdivision 2, paragraph (e), and 178.044, as applicable;

~~(7)~~ (6) a statement providing for a period of probation of not more than 500 hours of employment and instruction extending over not more than four months, during which time the apprenticeship agreement shall be terminated by the director upon written request of either party, and providing that after such probationary period the apprenticeship agreement may be terminated by the director by mutual agreement of all parties thereto, or terminated by the director for good and sufficient reason listing any fringe benefits to be provided to the apprentice;

(8) a provision that controversies or differences concerning the terms of the apprenticeship agreement which cannot be resolved by the parties thereto, or which are not covered by a collective bargaining agreement, may be submitted to the director for determination as provided for in section 178.09;

(9) a provision that an employer who is unable to fulfill an obligation under the apprenticeship agreement may, with the approval of the director, transfer such contract to any other employer, provided that the apprentice consents and that such other employer agrees to assume the obligations of the apprenticeship agreement; and

(7) a statement incorporating as part of the agreement the registered standards of the apprenticeship program on the date of the agreement and as they may be amended during the period of the agreement;

(8) a statement that the apprentice will be accorded equal opportunity in all phases of apprenticeship employment and training, without discrimination due to race, color, creed, religion, national origin, sex, sexual orientation, marital status, physical or mental disability, receipt of public assistance, or age; and

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~~(10)~~ (9) such additional terms and conditions as may be prescribed or approved by the ~~director~~ commissioner not inconsistent with the provisions of this chapter.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 11. Minnesota Statutes 2012, section 178.09, is amended to read:

178.09 INVESTIGATIONS ~~BY DIRECTOR~~ AND ENFORCEMENT OF APPRENTICESHIP AGREEMENTS.

Subdivision 1. Complaint. Upon the complaint of any interested person or upon the ~~director's~~ division's own initiative, the ~~director~~ division may investigate to determine if there has been a violation of the terms of an apprenticeship agreement made under this chapter. Complaints must be made in writing within 60 days of the events giving rise to the complaint and must set forth the specific matters complained of together with relevant facts and circumstances. Copies of pertinent documents and correspondence must accompany the complaint. The ~~director~~ division may conduct such proceedings as are necessary for that investigation and determination. All such proceedings shall be on a fair and impartial basis ~~and shall be conducted according to rules promulgated under section 178.041~~.

Subd. 2. Determination; appeal. Within 90 days after the receipt of a complaint, the division must issue a determination. The determination of the ~~director~~ division shall be filed with the commissioner and written notice shall be served on all parties affected by it. Any person aggrieved by any determination or action of the director may appeal to the commissioner. If no appeal is filed with the commissioner within ten days of the date of service, the ~~director's~~ division's determination shall become the final order of the commissioner. If an appeal is filed, the commissioner shall appoint and convene a hearing board to be composed of three members of the Apprenticeship Advisory Board appointed under section 178.02, one member being a representative of an employer organization, one representative being a member of an employee organization, and one member representing the general public. The board shall hold a hearing on the appeal after due notice to the interested parties and shall submit to the commissioner findings of fact and a recommended decision accompanied by a memorandum of the reasons for it. Within 30 days after submission, the commissioner may adopt the recommended decision of the board, or disregard the recommended decision of the board and prepare a decision based on the findings of fact and accompanied by a memorandum of reasons for that decision. Written notice of the commissioner's determination and order shall be served on all parties affected by it. Any person aggrieved ~~or affected~~ by ~~any~~ the commissioner's determination or order of the commissioner may appeal from it to the district court having jurisdiction at any time within 30 days after the date of the order by service of a written notice of appeal on the commissioner. Upon service of the notice of appeal, the commissioner shall file with the court administrator of the district court to which the appeal is taken a certified copy of the order appealed from, together with findings of fact on which it is based. The person serving a notice of appeal shall, within five days after its service, file it, with proof of service, with the court administrator of the court to which the appeal is taken. The district court shall then have jurisdiction over the appeal and it shall be entered in the records of the district court and tried de novo according to the applicable rules. Any person aggrieved or affected by any determination, order, or decision of the district court may appeal as in other civil cases and order under this section is entitled to judicial review under sections 14.63 to 14.68 in the same manner that a person aggrieved by a final decision in a contested case is entitled to judicial review. The commissioner's determination and order under this section shall be a final decision and order of the department for purposes of sections 14.63 to 14.68.

Subd. 3. Service. Service under this chapter may be by certified first class mail, personal service, or in accordance with any consent to service filed with the commissioner. Service by mail shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550, subpart 2. Personal service shall be accomplished in the manner provided in Minnesota Rules, part 1400.5550, subpart 3.

EFFECTIVE DATE. This section is effective January 1, 2015.

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Sec. 12. [178.091] INVESTIGATIONS AND ENFORCEMENT; APPRENTICESHIP PROGRAMS AND STANDARDS.

Subdivision 1. Investigations. In order to carry out the purposes of this chapter, the commissioner may investigate registered apprenticeship programs and applicants for program registration to determine whether there are any grounds for deregistration of a registered program or for the denial of an application. Persons requested by the commissioner to provide information or produce documents shall respond within 30 days of the commissioner's service of the request.

Subd. 2. Grounds. (a) The commissioner may deregister a registered apprenticeship program or deny an application for registration if:

(1) the program does not comply with any requirement of Code of Federal Regulations, title 29, part 29 or 32, this chapter, or any rule adopted pursuant to section 178.041;

(2) the program does not have at least one registered apprentice in each trade or occupation, except for the following specified periods of time:

(i) within the first 30 days after the date a program is registered; or

(ii) within one year of the date that a program graduates an apprentice in a trade or occupation and the date of registration for the next apprentice in that trade or occupation; or

(3) the program is not conducted, operated, or administered in accordance with the program's registered standards or with the requirements of this chapter, including but not limited to:

(i) failure to provide on-the-job learning;

(ii) failure to provide related instruction;

(iii) failure of an employer to pay the apprentice a progressively increasing schedule of wages consistent with the apprentice's skills acquired; or

(iv) persistent and significant failure to perform successfully.

(b) The commissioner may deregister an apprenticeship program at the written request of the sponsor in a manner consistent with the provisions of Code of Federal Regulations, title 29, part 29, section 29.8(a).

Subd. 3. Reinstatement. If the commissioner deregisters a registered apprenticeship program, the sponsor may request reinstatement not before one year after the effective date of the deregistration. The commissioner may, as a condition of reinstatement, require the sponsor to comply with reasonable conditions the commissioner considers necessary to effectuate the purposes of this chapter.

Subd. 4. Orders; hearings related to orders. (a) If the commissioner determines that a registered apprenticeship program should be deregistered or that an application for registration should be denied, the commissioner shall issue to and serve on the sponsor an order deregistering the program's registration or denying the application for registration.

(b) An order issued under this subdivision must specify:

(1) the deficiency and the required remedy or corrective action;

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(2) the time period to effectuate the required remedy or corrective action, which shall be no more than 90 days; and

(3) any other requirement consistent with Code of Federal Regulations, title 29, part 29, section 29.8(b).

(c) The sponsor to whom the commissioner issues an order under this subdivision may appeal to a hearing board appointed consistent with section 178.09, subdivision 2.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 13. Minnesota Statutes 2012, section 178.10, is amended to read:

178.10 LIMITATION.

(a) The provisions of this chapter shall have no application to those ~~infants~~ individuals who are apprenticed by the commissioner of corrections pursuant to sections 242.43 and 242.44.

(b) Nothing in this chapter or any apprenticeship agreement operates to invalidate:

(1) any apprenticeship provision in any collective bargaining agreement between employers and employees establishing higher apprenticeship standards; or

(2) any special provision for veterans, minority persons, or women, in the standards, apprentice qualifications, or operation of the program or in the apprenticeship agreement which is not otherwise prohibited by law.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 14. Minnesota Statutes 2012, section 181.723, subdivision 4, is amended to read:

Subd. 4. Independent contractor. (a) An individual is an independent contractor and not an employee of the person for whom the individual is performing services in the course of the person's trade, business, profession, or occupation only if the individual ~~is registered with the Department of Labor and Industry, if required under subdivision 4a, and the individual~~:

(1) maintains a separate business with the individual's own office, equipment, materials, and other facilities;

(2)(i) holds or has applied for a federal employer identification number or (ii) has filed business or self-employment income tax returns with the federal Internal Revenue Service if the individual has performed services in the previous year;

(3) is operating under contract to perform the specific services for the person for specific amounts of money and under which the individual controls the means of performing the services;

(4) is incurring the main expenses related to the services that the individual is performing for the person under the contract;

(5) is responsible for the satisfactory completion of the services that the individual has contracted to perform for the person and is liable for a failure to complete the services;

(6) receives compensation from the person for the services performed under the contract on a commission or per-job or competitive bid basis and not on any other basis;

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(7) may realize a profit or suffer a loss under the contract to perform services for the person;

(8) has continuing or recurring business liabilities or obligations; and

(9) the success or failure of the individual's business depends on the relationship of business receipts to expenditures.

An individual who is not registered, if required by section 326B.701, is presumed to be an employee of a person for whom the individual performs services in the course of the person's trade, business, profession, or occupation. The person for whom the services were performed may rebut this presumption by showing that the unregistered individual met all nine factors in this paragraph at the time the services were performed.

(b) If an individual is an owner or partial owner of a business entity, the individual is an employee of the person for whom the individual is performing services in the course of the person's trade, business, profession, or occupation, and is not an employee of the business entity in which the individual has an ownership interest, unless:

(1) the business entity meets the nine factors in paragraph (a);

(2) invoices and payments are ~~submitted~~ in the name of the business entity; and

(3) the business entity is registered with the secretary of state, if required~~; and~~.

~~(4) the business entity is registered with the Department of Labor and Industry, if required under subdivision 4a.~~

If the business entity in which the individual has an ownership interest is not registered, if required by section 326B.701, the individual is presumed to be an employee of a person for whom the individual performs services and not an employee of the business entity in which the individual has an ownership interest. The person for whom the services were performed may rebut the presumption by showing that the business entity met the requirements of clauses (1) to (3) at the time the services were performed.

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

Sec. 15. Minnesota Statutes 2012, section 181.723, subdivision 4a, is amended to read:

Subd. 4a. Applicability; registration ~~pilot project~~ requirement. (a) ~~The commissioner shall implement a pilot project, effective July 1, 2012, for the registration of~~ Persons who perform public or private sector commercial or residential building construction or improvement services as described in subdivision 2 must register with the commissioner as provided in this section. The purpose of ~~the pilot project is to evaluate whether the information obtained through registration assists~~ registration is to assist the Department of Labor and Industry, the Department of Employment and Economic Development, and the Department of Revenue to enforce laws related to misclassification of employees. The commissioner shall issue a report to the legislature no later than January 1, 2014, on recommendations for amendments to the registration program, including reasonable registration fees to be used to aid in enforcing misclassification laws. The commissioner must not charge a fee for registration under the pilot project, but may take the enforcement action specified in subdivision 8a. The pilot project shall expire on June 30, 2014, unless extended by the legislature.

(b) Except as provided in paragraph (c), any person who performs construction services in the state on or after September 15, 2012, must register with the commissioner as provided in ~~subdivision 5~~ section 326B.701 before performing construction services for another person. The requirements for registration under ~~this subdivision~~ section 326B.701 are not a substitute for, and do not relieve a person from complying with, any other law requiring that the person be licensed, registered, or certified.

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(1) a person who, at the time the person is performing the construction services, holds a current license, certificate, or registration under chapter 299M or 326B;

(2) a person who holds a current independent contractor exemption certificate issued under this section that is in effect on September 15, 2012, except that the person must register under ~~this~~ section 326B.701 no later than the date the exemption certificate expires, is revoked, or is canceled;

(3) a person who has given a bond to the state under section 326B.197 or 326B.46;

(4) an employee of the person performing the construction services, if the person was in compliance with laws related to employment of the individual at the time the construction services were performed;

(5) an architect or professional engineer engaging in professional practice as defined in section 326.02, subdivisions 2 and 3;

(6) a school district or technical college governed under chapter 136F;

(7) a person providing construction services on a volunteer basis, including but not limited to Habitat for Humanity and Builders Outreach Foundation, and their individual volunteers when engaged in activities on their behalf; or

(8) a person exempt from licensing under section 326B.805, subdivision 6, clause (5).

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

Sec. 16. Minnesota Statutes 2012, section 181.723, subdivision 5, is amended to read:

Subd. 5. Registration application. (a) Persons required to register under ~~subdivision 4a~~ section 326B.701 must submit electronically, in the manner prescribed by the commissioner, a complete application according to paragraphs (b) to (d).

(b) A complete application must include all of the following information about any individual who is registering as an individual or a sole proprietor, or who owns 25 percent or more of a business entity being registered:

(1) the individual's full legal name and title at the applicant's business;

(2) the individual's business address and telephone number;

(3) the percentage of the applicant's business owned by the individual; and

(4) the individual's Social Security number.

(1) the applicant's legal name; assumed name filed with the secretary of state, if any; designated business address; physical address; telephone number; and e-mail address;

(2) the applicant's Minnesota tax identification number, if one is required or has been issued;

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(3) the applicant's federal employer identification number, if one is required or has been issued;

(4) evidence of the active status of the applicant's business filings with the secretary of state, if one is required or has been issued;

(5) whether the applicant has any employees at the time the application is filed;

(6) the names of all other persons with an ownership interest in the business entity who are not identified in paragraph (b), and the percentage of the interest owned by each person, except that the names of shareholders with less than ten percent ownership in a publicly traded corporation need not be provided;

(7) information documenting compliance with workers' compensation and unemployment insurance laws;

(8) a certification that the person signing the application has: reviewed it; determined that the information provided is true and accurate; and determined that the person signing is authorized to sign and file the application as an agent of the applicant. The name of the person signing, entered on an electronic application, shall constitute a valid signature of the agent on behalf of the applicant; and

(9) a signed authorization for the Department of Labor and Industry to verify the information provided on or with the application.

(d) A registered person must notify the commissioner within 15 days after there is a change in any of the information on the application as approved. This notification must be provided electronically in the manner prescribed by the commissioner. However, if the business entity structure, legal form of the business entity, or business ownership has changed, the person must submit a new registration application and registration fee, if any, for the new business entity.

(e) The registered person must remain registered while providing construction services for another person. The provisions of sections 326B.091 ~~and~~, 326B.094 to, 326B.095, and 326B.097 apply to ~~this~~ section 326B.701. A person with an expired registration shall not provide construction services for another person if registration is required under this section. Registration application and expiration time frames are as follows:

(1) all registrations issued on or before June 30, 2015, expire on June 30, 2015;

(2) all registrations issued after June 30, 2015, expire on the following June 30 of each odd-numbered year; and

(3) a person may submit a registration or renewal application starting April 1 of the year the registration expires. If a renewal application is submitted later than May 1 of the expiration year, registration may expire before the department has issued or denied the registration.

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

Sec. 17. Minnesota Statutes 2012, section 181.723, subdivision 7, is amended to read:

Subd. 7. Prohibited activities related to independent contractor status. (a) The prohibited activities in this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085.

(b) An individual shall not hold himself or herself out as an independent contractor unless the individual meets the requirements of subdivision 4.

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(c) A person who provides construction services in the course of the person's trade, business, occupation, or profession shall not:

(1) require an individual through coercion, misrepresentation, or fraudulent means to adopt independent contractor status or form a business entity;

(2) knowingly misrepresent or misclassify an individual as an independent contractor;.

Subd. 7a. Prohibited activities related to registration. (a) The prohibited activities in this subdivision are in addition to those prohibited in sections 326B.081 to 326B.085.

(b) A person who provides construction services in the course of the person's trade, business, occupation, or profession shall not:

~~(3)~~ (1) contract with or perform construction services for another person without first being registered if required by ~~subdivision 4a~~ section 326B.701;

~~(4)~~ (2) contract with or pay another person to perform construction services if the other person is not registered if required by subdivision 4a. All payments to an unregistered person for construction services on a single project site shall be considered a single violation. It is not a violation of this clause:

(i) for a person to contract with or pay an unregistered person if the unregistered person was registered at the time the contract for construction services was entered into; or

(ii) for a homeowner or business to contract with or pay an unregistered person if the homeowner or business is not in the trade, business, profession, or occupation of performing building construction or improvement services; or

~~(5)~~ (3) be penalized for violations of this subdivision that are committed by another person. This clause applies only to violations of this paragraph.

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

Sec. 18. Minnesota Statutes 2012, section 181.723, subdivision 8a, is amended to read:

Subd. 8a. Enforcement; remedies; and penalties. (a) Notwithstanding the maximum penalty amount in section 326B.082, subdivisions 7 and 12, the maximum penalty for failure to register is $2,000, but the commissioner shall forgive the penalty if the person registers within 30 days of the date of the penalty order.

(b) The penalty for contracting with or paying an unregistered person to perform construction services in violation of subdivision 7a, paragraph (b), clause (2), shall be as provided in section 326B.082, subdivisions 7 and 12, but the commissioner shall forgive the penalty for the first violation.

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

Sec. 19. Minnesota Statutes 2012, section 326B.106, subdivision 2, is amended to read:

Subd. 2. Public buildings and state-licensed facilities; administration by commissioner. Unless the commissioner has entered into an agreement under subdivision 2a or 2b, the commissioner shall administer and enforce the State Building Code as a municipality with respect to public buildings and state-licensed facilities in the state. The commissioner shall establish appropriate permit, plan review, inspection fees, and surcharges for public buildings and state-licensed facilities.

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Municipalities other than the state having an agreement with the commissioner for code administration and enforcement service for public buildings and state licensed facilities shall charge their customary fees, including surcharge, to be paid directly to the jurisdiction by the applicant seeking authorization to construct a public building or a state licensed facility. The commissioner shall sign an agreement with a municipality other than the state for plan review, code administration, and code enforcement service for public buildings and state licensed facilities in the jurisdiction if the building officials of the municipality meet the requirements of section 326B.133 and wish to provide those services and if the commissioner determines that the municipality has enough adequately trained and qualified building inspectors to provide those services for the construction project.

~~The commissioner may direct the state building official to assist a community that has been affected by a natural disaster with building evaluation and other activities related to building codes.~~

Administration and enforcement in a municipality under this section must apply any optional provisions of the State Building Code adopted by the municipality. A municipality adopting any optional code provision shall notify the state building official within 30 days of its adoption.

~~The commissioner shall administer and enforce the provisions of the code relating to elevators statewide, except as provided for under section 326B.184, subdivision 4.~~

Sec. 20. Minnesota Statutes 2012, section 326B.106, is amended by adding a subdivision to read:

Subd. 2a. Public buildings and state-licensed facilities; municipal agreement for all building projects. (a) The commissioner shall enter into an agreement with a municipality other than the state for plan review, inspection, code administration, and code enforcement on public buildings and state-licensed facilities in the jurisdiction if the municipality requests to provide those services and the commissioner determines that the municipality has enough adequately trained and qualified inspectors to provide those services. In determining whether a municipality has enough adequately trained and qualified inspectors to provide the service, the commissioner must consider all inspectors who are employed by the municipality, are under contract with the municipality to provide inspection services, or are obligated to provide inspection services to the municipality under any other lawful agreement.

(b) The criteria used to make this determination shall be provided in writing to the municipality requesting an agreement.

(c) If the commissioner determines that the municipality lacks enough adequately trained and qualified inspectors to provide the required services, a written explanation of the deficiencies shall be provided to the municipality.

(d) The municipality shall be given an opportunity to remedy any deficiencies and request reconsideration of the commissioner's determination. A request for reconsideration must be in writing and accompanied by substantiating documentation. A request for reconsideration must be received by the commissioner within 90 days of the determination explanation. The commissioner shall review the information and issue a final determination to the municipality within 30 days of the request.

(e) A municipality aggrieved by a final decision of the commissioner to not enter into an agreement may appeal to be heard as a contested case in accordance with chapter 14.

Sec. 21. Minnesota Statutes 2012, section 326B.106, is amended by adding a subdivision to read:

Subd. 2b. Public buildings and state-licensed facilities; municipal agreement for certain building projects. The commissioner shall enter into an agreement with a municipality other than the state for inspection, code administration, and code enforcement of reserved projects occurring on public buildings and state-licensed facilities in its jurisdiction if the municipality has a designated building official as required by section 326B.133 and requests to provide those services.

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For purposes of this subdivision, "reserved projects" includes the following:

(1) roof covering replacement that does not add roof load;

(2) towers requiring special inspection;

(3) single-level storage buildings not exceeding 5,000 square feet;

(4) exterior maintenance work, including replacement of siding, windows, and doors;

(5) HVAC unit replacement that does not add roof load or ventilation capacity;

(6) accessibility upgrades not involving building additions or structural alterations;

(7) remodeling that does not change the building's occupancy, structural system, exit access or discharge pattern, or mechanical load; and

(8) other projects determined to be reserved by the commissioner.

Sec. 22. Minnesota Statutes 2012, section 326B.106, is amended by adding a subdivision to read:

Subd. 2c. Municipal fees. Municipalities other than the state having an agreement under subdivision 2a with the commissioner for code administration and enforcement service for public buildings and state-licensed facilities or inspecting under authority of subdivision 2b shall charge their customary fees, including surcharge, to be paid directly to the jurisdiction by the applicant seeking authorization to construct a public building or a state-licensed facility.

Sec. 23. Minnesota Statutes 2012, section 326B.106, is amended by adding a subdivision to read:

Subd. 2d. Public buildings and state-licensed facilities; municipal obligation. An agreement with the commissioner under subdivision 2a or 2b must require the municipality to attend to applicable aspects of code administration and enforcement as described in the agreement and established by rule.

Sec. 24. Minnesota Statutes 2012, section 326B.106, is amended by adding a subdivision to read:

Subd. 2e. Public buildings and state-licensed facilities; applicable code. Administration and enforcement in a municipality under subdivisions 2a and 2b must apply any optional provisions of the State Building Code adopted by the municipality. A municipality adopting any optional code provision shall notify the state building official within 30 days of its adoption.

Sec. 25. Minnesota Statutes 2012, section 326B.106, is amended by adding a subdivision to read:

Subd. 2f. Natural disasters. The commissioner may direct the state building official to assist a community that has been affected by a natural disaster with building evaluation and other activities related to building codes.

Sec. 26. Minnesota Statutes 2012, section 326B.106, is amended by adding a subdivision to read:

Subd. 2g. Elevators. The commissioner shall administer and enforce the provisions of the code relating to elevators statewide, except as provided for under section 326B.184, subdivision 4.

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Sec. 27. [326B.701] CONSTRUCTION CONTRACTOR REGISTRATION.

The following definition applies to this section: "business entity" means a person other than an individual or a sole proprietor.

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

Sec. 28. REVISOR'S INSTRUCTION.

The revisor of statutes shall replace the phrase "Division of Voluntary Apprenticeship" with the word "division" in Minnesota Rules, chapter 5200.

EFFECTIVE DATE. This section is effective January 1, 2015.

Sec. 29. REVISOR'S INSTRUCTION.

The revisor of statutes shall renumber the citations in column A with the citations in column B. The revisor shall correct any cross-references required because of the renumbering and may make necessary grammatical and technical changes, including changes to sentence structure, to preserve the meaning of the text.

	Column A	Column B
	326B.701	326B.701, subd. 1, paragraphs (a) and (b)
	181.723, subd. 1, paragraph (g)	326B.701, subd. 1, paragraph (c)
	181.723, subd. 4a	326B.701, subd. 2
	181.723, subd. 5	326B.701, subd. 3
	181.723, subd. 5a	326B.701, subd. 4
	181.723, subd. 7a	326B.701, subd. 5
	181.723, subd. 8a	326B.701, subd. 6
	181.723, subd. 10a	326B.701, subd. 7
	181.723, subd. 16	326B.701, subd. 8

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

Sec. 30. REPEALER.

(a) Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; and 178.08, are repealed.

(b) Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14, and 15; 5200.0340; 5200.0360; and 5200.0390, are repealed.

EFFECTIVE DATE. This section is effective January 1, 2015."

Delete the title and insert:

"A bill for an act relating to state government; extending an independent contractor pilot program; making federal conformity changes to the apprenticeship program; modifying municipal building code enforcement for certain public buildings; modifying the Agricultural Utilization Research Institute board of directors; amending Minnesota Statutes 2012, sections 116V.01, subdivision 2; 178.02; 178.03; 178.041, subdivision 2; 178.07; 178.09;

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178.10; 181.723, subdivisions 4, 4a, 5, 7, 8a; 326B.106, subdivision 2, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapters 178; 326B; repealing Minnesota Statutes 2012, sections 178.03, subdivision 2; 178.05; 178.06; 178.08; Minnesota Rules, parts 5200.0300; 5200.0310; 5200.0320, subparts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14, 15; 5200.0340; 5200.0360; 5200.0390."

The motion prevailed and the amendment was adopted.

Fabian moved to amend S. F. No. 2065, the second engrossment, as amended, as follows:

Page 1, delete section 1

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Fabian amendment and the roll was called. There were 56 yeas and 73 nays as follows:

Those who voted in the affirmative were:

The bill was passed, as amended, and its title agreed to.

ANNOUNCEMENTS BY THE SPEAKER

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2466:

Atkins, Lesch and Cornish.

The Speaker announced the appointment of the following members of the House to a Conference Committee on S. F. No. 2782:

Winkler, Bernardy and O'Driscoll.

CALENDAR FOR THE DAY, Continued

H. F. No. 799 was reported to the House.

LAY ON THE TABLE

Lesch moved that H. F. No. 799 be laid on the table. The motion prevailed.

The following Conference Committee Reports were received:

CONFERENCE COMMITTEE REPORT ON H. F. No. 2536

A bill for an act relating to state government; providing for the Women's Economic Security Act; requiring equal pay certificates of compliance; modifying workforce development provisions; creating women and high-wage, high-demand, nontraditional jobs grant program; modifying eligibility for unemployment insurance benefits; offering women entrepreneurs business development grants; requiring a report on a potential state-administered retirement savings plan; modifying parenting leave, sick leave, and pregnancy accommodations; providing employment protections; providing wage disclosure protection; appropriating money; amending Minnesota Statutes 2012, sections 13.552, by adding a subdivision; 181.939; 181.940, subdivision 2; 181.941; 181.943; 268.095, subdivisions 1, 6; 363A.03, by adding a subdivision; 363A.08, subdivisions 1, 2, 3, 4, by adding subdivisions; Minnesota Statutes 2013 Supplement, sections 116L.665, subdivision 2; 124D.165, subdivision 3; 181.9413; proposing coding for new law in Minnesota Statutes, chapters 116L; 181; 363A.

May 5, 2014

The Honorable Paul Thissen

Speaker of the House of Representatives

The Honorable Sandra L. Pappas

President of the Senate

We, the undersigned conferees for H. F. No. 2536 report that we have agreed upon the items in dispute and recommend as follows:

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That the Senate recede from its amendment and that H. F. No. 2536 be further amended as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

WOMEN'S ECONOMIC SECURITY ACT

Section 1. CITATION; WOMEN'S ECONOMIC SECURITY ACT.

This act shall be known as the Women's Economic Security Act.

ARTICLE 2

ECONOMIC SECURITY

Section 1. Minnesota Statutes 2012, section 13.552, is amended by adding a subdivision to read:

Subd. 7. Equal pay certificate of compliance. Access to data relating to equal pay certificates of compliance is governed by section 363A.44.

Sec. 2. Minnesota Statutes 2013 Supplement, section 116L.665, subdivision 2, is amended to read:

Subd. 2. Membership. The governor's Workforce Development Council is composed of 31 members appointed by the governor. The members may be removed pursuant to section 15.059. In selecting the representatives of the council, the governor shall ensure that 50 percent of the members come from nominations provided by local workforce councils. Local education representatives shall come from nominations provided by local education to employment partnerships. The 31 members shall represent the following sectors:

(a) State agencies: the following individuals shall serve on the council:

(1) commissioner of the Minnesota Department of Employment and Economic Development;

(2) commissioner of the Minnesota Department of Education; and

(3) commissioner of the Minnesota Department of Human Services.

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

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

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

(1) one individual shall represent local public secondary education;

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

(3) one individual shall represent leadership of the University of Minnesota;

(4) one individual shall represent secondary/postsecondary vocational institutions;

(5) the chancellor of the Board of Trustees of the Minnesota State Colleges and Universities; and

(6) one individual shall have expertise in agricultural education.

(f) Other: two individuals shall represent other constituencies including:

(1) units of local government; and

(2) applicable state or local programs.

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

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

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

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

Sec. 3. [116L.99] WOMEN AND HIGH-WAGE, HIGH-DEMAND, NONTRADITIONAL JOBS GRANT PROGRAM.

Subdivision 1. Definitions. (a) For the purpose of this section, the following terms have the meanings given.

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

(1) community-based organizations experienced in serving women;

(2) employers;

(3) business and trade associations;

(4) labor unions and employee organizations;

(5) registered apprenticeship programs;

(6) secondary and postsecondary education institutions located in Minnesota; and

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(7) workforce and economic development agencies.

(d) "High-wage, high-demand" means occupations that represent at least 0.1 percent of total employment in the base year, have an annual median salary which is higher than the average for the current year, and are projected to have more total openings as a share of employment than the average.

(e) "Low-income" means income less than 200 percent of the federal poverty guideline adjusted for a family size of four.

(f) "Nontraditional occupations'' means those occupations in which women make up less than 25 percent of the workforce as defined under United States Code, title 20, section 2302.

(g) "Registered apprenticeship program'' means a program registered under United States Code, title 29, section 50.

Subd. 2. Grant program. The commissioner shall establish the women and high-wage, high-demand, nontraditional jobs grant program to increase the number of women in high-wage, high-demand, nontraditional occupations. The commissioner shall make grants to eligible organizations for programs that encourage and assist women to enter high-wage, high-demand, nontraditional occupations including but not limited to those in the skilled trades, science, technology, engineering, and math (STEM) occupations.

Subd. 3. Use of funds. (a) Grant funds awarded under this section may be used for:

(1) recruitment, preparation, placement, and retention of women, including low-income women and women over 50 years old, in registered apprenticeships, postsecondary education programs, on-the-job training, and permanent employment in high-wage, high-demand, nontraditional occupations;

(2) secondary or postsecondary education or other training to prepare women to succeed in high-wage, high-demand, nontraditional occupations. Activities under this clause may be conducted by the grantee or in collaboration with another institution, including but not limited to a public or private secondary or postsecondary school;

(3) innovative, hands-on, best practices that stimulate interest in high-wage, high-demand, nontraditional occupations among girls, increase awareness among girls about opportunities in high-wage, high-demand, nontraditional occupations, or increase access to secondary programming leading to jobs in high-wage, high-demand, nontraditional occupations. Best practices include but are not limited to mentoring, internships, or apprenticeships for girls in high-wage, high-demand, nontraditional occupations;

(4) training and other staff development for job seeker counselors and Minnesota family investment program (MFIP) caseworkers on opportunities in high-wage, high-demand, nontraditional occupations;

(5) incentives for employers and sponsors of registered apprenticeship programs to retain women in high-wage, high-demand, nontraditional occupations for more than one year;

(6) training and technical assistance for employers to create a safe and healthy workplace environment designed to retain and advance women, including best practices for addressing sexual harassment, and to overcome gender inequity among employers and registered apprenticeship programs;

(7) public education and outreach activities to overcome stereotypes about women in high-wage, high-demand, nontraditional occupations, including the development of educational and marketing materials; and

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(8) support for women in high-wage, high-demand, nontraditional occupations including but not limited to assistance with workplace issues resolution and access to advocacy assistance and services.

(b) Grant applications must include detailed information about how the applicant plans to:

(1) increase women's participation in high-wage, high-demand occupations in which women are currently underrepresented in the workforce;

(2) comply with the requirements under subdivision 3; and

(3) use grant funds in conjunction with funding from other public or private sources.

(1) with demonstrated success in recruiting and preparing women, especially low-income women and women over 50 years old, for high-wage, high-demand, nontraditional occupations; and

(2) that leverage additional public and private resources.

(d) At least 50 percent of total grant funds must be awarded to programs providing services and activities targeted to low-income women.

(e) The commissioner of employment and economic development in conjunction with the commissioner of labor and industry shall monitor the use of funds under this section, collect and compile information on the activities of other state agencies and public or private entities that have purposes similar to those under this section, and identify other public and private funding available for these purposes.

Sec. 4. Minnesota Statutes 2012, section 268.095, subdivision 1, is amended to read:

Subdivision 1. Quit. An applicant who quit employment is ineligible for all unemployment benefits according to subdivision 10 except when:

(1) the applicant quit the employment because of a good reason caused by the employer as defined in subdivision 3;

(2) the applicant quit the employment to accept other covered employment that provided substantially better terms and conditions of employment, but the applicant did not work long enough at the second employment to have sufficient subsequent earnings to satisfy the period of ineligibility that would otherwise be imposed under subdivision 10 for quitting the first employment;

(3) the applicant quit the employment within 30 calendar days of beginning the employment because the employment was unsuitable for the applicant;

(4) the employment was unsuitable for the applicant and the applicant quit to enter reemployment assistance training;

(5) the employment was part time and the applicant also had full-time employment in the base period, from which full-time employment the applicant separated because of reasons for which the applicant was held not to be ineligible, and the wage credits from the full-time employment are sufficient to meet the minimum requirements to establish a benefit account under section 268.07;

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(6) the applicant quit because the employer notified the applicant that the applicant was going to be laid off because of lack of work within 30 calendar days. An applicant who quit employment within 30 calendar days of a notified date of layoff because of lack of work is ineligible for unemployment benefits through the end of the week that includes the scheduled date of layoff;

(7) the applicant quit the employment (i) because the applicant's serious illness or injury made it medically necessary that the applicant quit; or (ii) in order to provide necessary care because of the illness, injury, or disability of an immediate family member of the applicant. This exception only applies if the applicant informs the employer of the medical problem and requests accommodation and no reasonable accommodation is made available.

If the applicant's serious illness is chemical dependency, this exception does not apply if the applicant was previously diagnosed as chemically dependent or had treatment for chemical dependency, and since that diagnosis or treatment has failed to make consistent efforts to control the chemical dependency.

This exception raises an issue of the applicant's being available for suitable employment under section 268.085, subdivision 1, that the commissioner must determine;

(8) the applicant's loss of child care for the applicant's minor child caused the applicant to quit the employment, provided the applicant made reasonable effort to obtain other child care and requested time off or other accommodation from the employer and no reasonable accommodation is available.

This exception raises an issue of the applicant's being available for suitable employment under section 268.085, subdivision 1, that the commissioner must determine;

(9) the applicant quit because domestic abuse, sexual assault, or stalking of the applicant or an immediate family member of the applicant, necessitated the applicant's quitting the employment. ~~Domestic abuse~~ ~~must be shown by one or more of the following:~~

~~(i) a district court order for protection or other documentation of equitable relief~~ ~~issued by a court;~~

~~(ii) a police record documenting the domestic abuse;~~

~~(iii) documentation that the perpetrator of the domestic abuse~~ ~~has been convicted of the offense~~ ~~of domestic abuse;~~

~~(iv) medical documentation of domestic abuse;~~ or

~~(v) written statement that the applicant or an immediate family member of the~~ ~~applicant is a victim of domestic abuse,~~ ~~provided by a social~~ ~~worker, member of the clergy, shelter worker, attorney at law, or other professional who~~ ~~has assisted the applicant in dealing with the domestic abuse.~~

~~Domestic abuse for purposes of this clause is defined under section 518B.01; or~~

For purposes of this subdivision:

(i) "domestic abuse" has the meaning given in section 518B.01;

(ii) "sexual assault" means an act that would constitute a violation of sections 609.342 to 609.3453 or 609.352; and

(iii) "stalking" means an act that would constitute a violation of section 609.749; or

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(10) the applicant quit in order to relocate to accompany a spouse whose job location changed making it impractical for the applicant to commute.

EFFECTIVE DATE. This section is effective October 5, 2014, and applies to all determinations and appeal decisions issued on or after that date.

Sec. 5. Minnesota Statutes 2012, section 268.095, subdivision 6, is amended to read:

Subd. 6. Employment misconduct defined. (a) Employment misconduct means any intentional, negligent, or indifferent conduct, on the job or off the job that displays clearly:

(1) a serious violation of the standards of behavior the employer has the right to reasonably expect of the employee; or

(2) a substantial lack of concern for the employment.

(b) Regardless of paragraph (a), the following is not employment misconduct:

(1) conduct that was a consequence of the applicant's mental illness or impairment;

(2) conduct that was a consequence of the applicant's inefficiency or inadvertence;

(3) simple unsatisfactory conduct;

(4) conduct an average reasonable employee would have engaged in under the circumstances;

(5) conduct that was a consequence of the applicant's inability or incapacity;

(6) good faith errors in judgment if judgment was required;

(7) absence because of illness or injury of the applicant, with proper notice to the employer;

(8) absence, with proper notice to the employer, in order to provide necessary care because of the illness, injury, or disability of an immediate family member of the applicant;

(9) conduct that was a consequence of the applicant's chemical dependency, unless the applicant was previously diagnosed chemically dependent or had treatment for chemical dependency, and since that diagnosis or treatment has failed to make consistent efforts to control the chemical dependency; or

(10) conduct that was a consequence of the applicant, or an immediate family member of the applicant, being a victim of domestic abuse ~~as defined under section 518B.01~~, sexual assault, or stalking. ~~Domestic abuse must be shown as provided for in subdivision 1, clause (9).~~ For the purposes of this subdivision, "domestic abuse," "sexual assault," and "stalking" have the meanings given them in subdivision 1.

(c) Regardless of paragraph (b), clause (9), conduct in violation of sections 169A.20, 169A.31, or 169A.50 to 169A.53 that interferes with or adversely affects the employment is employment misconduct.

(d) If the conduct for which the applicant was discharged involved only a single incident, that is an important fact that must be considered in deciding whether the conduct rises to the level of employment misconduct under paragraph (a). This paragraph does not require that a determination under section 268.101 or decision under section 268.105 contain a specific acknowledgment or explanation that this paragraph was considered.

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(e) The definition of employment misconduct provided by this subdivision is exclusive and no other definition applies.

EFFECTIVE DATE. This section is effective October 5, 2014, and applies to all determinations and appeal decisions issued on or after that date.

Sec. 6. [363A.44] EQUAL PAY CERTIFICATE.

Subdivision 1. Scope. (a) No department, agency of the state, the Metropolitan Council, or an agency subject to section 473.143, subdivision 1, shall execute a contract or agreement in excess of $500,000 with a business that has 40 or more full-time employees in this state or a state where the business has its primary place of business on a single day during the prior 12 months, unless the business has an equal pay certificate or it has certified in writing that it is exempt. A certificate is valid for four years.

(b) This section does not apply to a business with respect to a specific contract if the commissioner of administration determines that application of this section would cause undue hardship to the contracting entity. This section does not apply to a contract to provide goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E, 256B, 256I, 256L, and 268A, with a business that has a license, certification, registration, provider agreement, or provider enrollment contract that is prerequisite to providing those goods and services. This section does not apply to contracts entered into by the State Board of Investment for investment options under section 352.965, subdivision 4.

Subd. 2. Application. (a) A business shall apply for an equal pay certificate by paying a $150 filing fee and submitting an equal pay compliance statement to the commissioner. The proceeds from the fees collected under this subdivision shall be deposited in an equal pay certificate special revenue account. Money in the account is appropriated to the commissioner for the purposes of this section. The commissioner shall issue an equal pay certificate of compliance to a business that submits to the commissioner a statement signed by the chairperson of the board or chief executive officer of the business:

(1) that the business is in compliance with Title VII of the Civil Rights Act of 1964, Equal Pay Act of 1963, Minnesota Human Rights Act, and Minnesota Equal Pay for Equal Work Law;

(2) that the average compensation for its female employees is not consistently below the average compensation for its male employees within each of the major job categories in the EEO-1 employee information report for which an employee is expected to perform work under the contract, taking into account factors such as length of service, requirements of specific jobs, experience, skill, effort, responsibility, working conditions of the job, or other mitigating factors;

(3) that the business does not restrict employees of one sex to certain job classifications and makes retention and promotion decisions without regard to sex;

(4) that wage and benefit disparities are corrected when identified to ensure compliance with the laws cited in clause (1) and with clause (2); and

(5) how often wages and benefits are evaluated to ensure compliance with the laws cited in clause (1) and with clause (2).

(b) The equal pay compliance statement shall also indicate whether the business, in setting compensation and benefits, utilizes:

(1) a market pricing approach;

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(2) state prevailing wage or union contract requirements;

(3) a performance pay system;

(4) an internal analysis; or

(5) an alternative approach to determine what level of wages and benefits to pay its employees. If the business uses an alternative approach, the business must provide a description of its approach.

(c) Receipt of the equal pay compliance statement by the commissioner does not establish compliance with the laws set forth in paragraph (a), clause (1).

Subd. 3. Issuance or rejection of certificate. The commissioner must issue an equal pay certificate, or a statement of why the application was rejected, within 15 days of receipt of the application. An application may be rejected only if it does not comply with the requirements of subdivision 2.

Subd. 4. Revocation of certificate. An equal pay certificate for a business may be suspended or revoked by the commissioner when the business fails to make a good-faith effort to comply with the laws identified in subdivision 2, paragraph (a), clause (1), fails to make a good-faith effort to comply with this section, or has multiple violations of this section or the laws identified in subdivision 2, paragraph (a), clause (1). Prior to suspending or revoking a certificate, the commissioner must first have sought to conciliate with the business regarding wages and benefits due to employees.

Subd. 5. Revocation of contract. (a) If a contract is awarded to a business that does not have an equal pay certificate as required under subdivision 1, or that is not in compliance with subdivision 2, paragraph (a), the commissioner may void the contract on behalf of the state. The contract award entity that is a party to the agreement must be notified by the commissioner prior to the commissioner taking action to void the contract.

(b) A contract may be abridged or terminated by the contract award entity identified in subdivision 1 upon notice that the commissioner has suspended or revoked the certificate of the business.

Subd. 6. Administrative review. (a) A business may obtain an administrative hearing pursuant to sections 14.57 to 14.69 before the suspension or revocation of its certificate is effective by filing a written request for hearing 20 days after service of notice by the commissioner.

(b) A business may obtain an administrative hearing pursuant to sections 14.57 to 14.69 before the contract award entity's abridgement or termination of a contract is effective by filing a written request for a hearing 20 days after service of notice by the contract award entity.

Subd. 7. Technical assistance. The commissioner must provide technical assistance to any business that requests assistance regarding this section.

Subd. 8. Audit. The commissioner may audit the business's compliance with this section. As part of an audit, upon request, a business must provide the commissioner the following information with respect to employees expected to perform work under the contract in each of the major job categories in the EEO-1 employee information report:

(1) number of male employees;

(2) number of female employees;

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(3) average annualized salaries paid to male employees and to female employees, in the manner most consistent with the employer's compensation system, within each major job category;

(4) information on performance payments, benefits, or other elements of compensation, in the manner most consistent with the employer's compensation system, if requested by the commissioner as part of a determination as to whether these elements of compensation are different for male and female employees;

(5) average length of service for male and female employees in each major job category; and

(6) other information identified by the business or by the commissioner, as needed, to determine compliance with items specified in subdivision 2, paragraph (a).

Subd. 9. Access to data. Data submitted to the commissioner related to equal pay certificates are private data on individuals or nonpublic data with respect to persons other than department employees. The commissioner's decision to issue, not issue, revoke, or suspend an equal pay certificate is public data.

Subd. 10. Report. The commissioner shall report to the governor and the chairs and ranking minority members of the committees in the senate and the house of representatives with primary jurisdiction over the department by January 31 of every even-numbered year, beginning January 31, 2016. The report shall indicate the number of equal pay certificates issued, the number of audits conducted, the processes used by contractors to ensure compliance with subdivision 2, paragraph (a), and a summary of its auditing efforts. The commissioner shall consult with the Legislative Coordinating Commission Office on the Economic Status of Women in preparing the report.

EFFECTIVE DATE. This section is effective August 1, 2014, and applies to any solicitation made on or after that date.

Sec. 7. HIGH-WAGE, HIGH-DEMAND, NONTRADITIONAL JOBS PROGRAM APPROPRIATION.

$500,000 is appropriated from the workforce development fund in fiscal year 2015 to the commissioner of employment and economic development to develop and implement the women and high-wage, high-demand, nontraditional jobs grant program under Minnesota Statutes, section 116L.99. Funds available under this section must not supplant other funds available for the same purposes. The commissioner may use up to five percent of the appropriation to administer the grant program. This is a onetime appropriation and is available until expended.

Sec. 8. WOMEN ENTREPRENEURS BUSINESS DEVELOPMENT; APPROPRIATION.

(a) $500,000 in fiscal year 2015 is appropriated from the general fund to the commissioner of employment and economic development for grants to Women Venture and the Women's Business Center of Northeastern Minnesota at the Northeast Entrepreneurial Fund to facilitate and promote the creation and expansion of women-owned businesses in Minnesota. Funds available under this section must be divided equally among grant recipients. This is a onetime appropriation and is available until expended. Grant funds may be used only for the purposes under paragraph (b) except that up to ten percent of each grant award may be used by grant recipients for administrative costs.

(b) Grants awarded under this section must be used for:

(1) entrepreneurial training, mentoring, and technical assistance for the startup or expansion of eligible women-owned businesses;

(2) development of networks of potential investors for eligible women-owned businesses;

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(3) development of outreach activities and recruitment programs for midcareer women with an interest in starting eligible women-owned businesses; and

(4) compilation, development, and dissemination of resources, information, and technical assistance on best practices and model programs that may be replicated on a statewide basis.

(1) that is at least 51 percent female owned or, in the case of a publicly traded business, at least 51 percent of the stock is female owned;

(2) whose management and daily operations are controlled by women;

(3) that is organized for profit;

(4) that is projected to generate at least $500,000 in annual revenue and create at least ten jobs, each of which pay an annual income equal to at least 200 percent of the federal poverty guideline adjusted for a family size of four; and

(5) in the field of construction; transportation; warehousing; agriculture; mining; finance; insurance; professional, technical, or scientific services; technology; or other industries with businesses meeting the revenue and job creation requirements of clause (4).

(d) A grant award under this section does not affect any other grant award or appropriation made to a grant recipient.

(e) The Women's Business Center of Northeastern Minnesota shall partner with the Arrowhead Economic Opportunity Agency to provide entrepreneurial development training and resources to women with incomes less than 200 percent of the federal poverty guideline, adjusted for a family size of four, to assist with the start-up or expansion of eligible women-owned businesses.

Sec. 9. WOMEN AND HIGH-WAGE, HIGH-DEMAND, NONTRADITIONAL JOBS APPRENTICESHIPS; APPROPRIATION.

$250,000 is appropriated from the workforce development fund in fiscal year 2015 to the commissioner of labor and industry for the labor education advancement program under Minnesota Statutes, section 178.11, to educate, promote, assist, and support women to enter apprenticeship programs in high-wage, high-demand, nontraditional occupations. Funds available under this section must not supplant other funds available for the same purposes. This is a onetime appropriation and is available until expended.

Sec. 10. REPORT; RETIREMENT SAVINGS PLAN.

(a) The commissioner of management and budget must report to the legislature by January 15, 2015, on the potential for a state-administered retirement savings plan to serve employees without access to either an automatic enrollment payroll deduction IRA maintained or offered by their employer, or a multiemployer retirement plan or qualifying retirement plan or arrangement described in sections 414(f) and 219(g)(5), respectively, of the Internal Revenue Code of 1986, as amended through April 14, 2011. The potential state-administered plan would provide for individuals to make contributions to their own accounts to be pooled and invested by the State Board of Investment, with the benefit consisting of the balance in each individual's account, and with the state having no liability for investment earnings and losses, while discouraging employers from dropping existing retirement plan options.

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(b) The report must include:

(1) estimates of the number of Minnesota workers who could be served by the potential state-administered plan, and the participation rate that would make the plan self-sustaining;

(2) the effect of federal tax laws and the federal Employee Retirement Income Security Act on a potential state-administered plan and on participating employers and employees, including coverage and potential gaps in consumer protections;

(3) barriers to savings and reasons individuals and employers may not be participating in existing private sector retirement plans;

(4) the potential use and availability of investment strategies, private insurance, underwriting, or reinsurance against loss to limit or eliminate potential state liability and manage risk to the principal;

(5) options for the process by which individuals would enroll in and contribute to the plan;

(6) projected costs of administration, record keeping, and investment management, including staffing, legal, compliance, licensing, procurement, communications with employers and employees, oversight, marketing, technology and infrastructure, and the fee needed to cover these costs as a percentage of the average daily net assets of the potential state-administered plan, relative to asset size, with estimates of investment-related fees determined in consultation with the State Board of Investment; and

(7) a comparison of a potential state-administered plan to private sector and federal government retirement savings options with regard to participation rates, contribution rates, risk-adjusted return expectations, fees, and any other factors determined by the commissioner, which may include suitability in meeting the investment needs of participants.

(1) estimates of the average amount of savings and other financial resources residents of Minnesota have upon retirement and those that are recommended for a financially secure retirement in Minnesota;

(2) estimates of the relative progress toward achieving the savings recommended for a financially secure retirement by gender, race, and ethnicity;

(3) the estimated impact on publicly funded social safety net programs attributable to insufficient retirement savings, and the aggregate effect of potential state-administered plan options on publicly funded social safety net programs and the state economy;

(4) the effect of federal tax laws and the federal Employee Retirement Income Security Act on a potential state-administered plan that allows for voluntary employer contributions, either commingled with or segregated from employee contributions;

(5) options for a potential state-administered plan to use group annuities to ensure a stable stream of retirement income throughout beneficiaries' retirement years;

(6) alternative ways and costs for the state to encourage similar outcomes to a state-administered plan;

(7) options discouraging employers from dropping existing employer-sponsored retirement savings plans in favor of a potential state-administered plan; and

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(8) other topics that the commissioner determines are relevant to legislative consideration of possible establishment of a state-administered plan.

(d) The commissioner may provide information for purposes of paragraph (c) by reporting the results of a request for public comment.

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

Sec. 11. RETIREMENT SAVINGS PLAN REPORT; APPROPRIATION.

$400,000 in fiscal year 2014 is appropriated from the general fund to the commissioner of management and budget for the retirement savings plan report under section 10. This is a onetime appropriation and is available until expended.

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

Sec. 12. APPROPRIATION; PAY EQUITY.

$674,000 in fiscal year 2015 is appropriated from the general fund to the commissioner of human rights for implementation of Minnesota Statutes, section 363A.44. The agency base budget for this purpose is $426,000 each year in fiscal years 2016 and 2017.

ARTICLE 3

LABOR STANDARDS AND WAGES

Section 1. Minnesota Statutes 2012, section 181.940, subdivision 2, is amended to read:

Subd. 2. Employee. "Employee" means a person who performs services for hire for an employer from whom a leave is requested under sections 181.940 to 181.944 for:

(1) at least 12 ~~consecutive~~ months ~~immediately~~ preceding the request; and

(2) for an average number of hours per week equal to one-half the full-time equivalent position in the employee's job classification as defined by the employer's personnel policies or practices or pursuant to the provisions of a collective bargaining agreement, during ~~those 12 months~~ the 12-month period immediately preceding the leave.

Employee includes all individuals employed at any site owned or operated by the employer but does not include an independent contractor.

Sec. 2. Minnesota Statutes 2012, section 181.941, is amended to read:

181.941 PREGNANCY AND PARENTING LEAVE.

Subdivision 1. ~~Six~~ Twelve-week leave; pregnancy, birth, or adoption. (a) An employer must grant an unpaid leave of absence to an employee who is a natural or adoptive parent in conjunction with the birth or adoption of a child. The length of the leave shall be determined by the employee, but may not exceed six weeks, unless agreed to by the employer.:

(1) a biological or adoptive parent in conjunction with the birth or adoption of a child; or

(2) a female employee for prenatal care, or incapacity due to pregnancy, childbirth, or related health conditions.

(b) The length of the leave shall be determined by the employee, but must not exceed 12 weeks, unless agreed to by the employer.

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Subd. 2. Start of leave. The leave shall begin at a time requested by the employee. The employer may adopt reasonable policies governing the timing of requests for unpaid leave. and may require an employee who plans to take a leave under this section to give the employer reasonable notice of the date the leave shall commence and the estimated duration of the leave. For leave taken under subdivision 1, paragraph (a), clause (1), the leave ~~may~~ must begin ~~not more than six weeks after~~ within 12 months of the birth or adoption; except that, in the case where the child must remain in the hospital longer than the mother, the leave ~~may not~~ must begin ~~more than six weeks~~ within 12 months after the child leaves the hospital.

Subd. 3. No employer retribution. An employer shall not retaliate against an employee for requesting or obtaining a leave of absence as provided by this section.

Subd. 4. Continued insurance. The employer must continue to make coverage available to the employee while on leave of absence under any group insurance policy, group subscriber contract, or health care plan for the employee and any dependents. Nothing in this section requires the employer to pay the costs of the insurance or health care while the employee is on leave of absence.

Sec. 3. Minnesota Statutes 2013 Supplement, section 181.9413, is amended to read:

181.9413 SICK LEAVE BENEFITS; CARE OF RELATIVES.

(a) An employee may use personal sick leave benefits provided by the employer for absences due to an illness of or injury to the employee's child, as defined in section 181.940, subdivision 4, adult child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent, for reasonable periods of time as the employee's attendance may be necessary, on the same terms upon which the employee is able to use sick leave benefits for the employee's own illness or injury. This section applies only to personal sick leave benefits payable to the employee from the employer's general assets.

(b) An employee may use sick leave as allowed under this section for safety leave, whether or not the employee's employer allows use of sick leave for that purpose for such reasonable periods of time as may be necessary. Safety leave may be used for assistance to the employee or assistance to the relatives described in paragraph (a). For the purpose of this section, "safety leave" is leave for the purpose of providing or receiving assistance because of sexual assault, domestic abuse, or stalking. For the purpose of this paragraph:

(1) "domestic abuse" has the meaning given in section 518B.01;

(2) "sexual assault" means an act that constitutes a violation under sections 609.342 to 609.3453 or 609.352; and

(3) "stalking" has the meaning given in section 609.749.

(c) An employer may limit the use of safety leave as described in paragraph (b) or personal sick leave benefits provided by the employer for absences due to an illness of or injury to the employee's adult child, spouse, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent to no less than 160 hours in any 12-month period. This paragraph does not apply to absences due to the illness or injury of a child, as defined in section 181.940, subdivision 4.

~~(c)~~ (d) For purposes of this section, "personal sick leave benefits" means time accrued and available to an employee to be used as a result of absence from work due to personal illness or injury, but does not include short-term or long-term disability or other salary continuation benefits.

~~(d)~~ (e) For the purpose of this section, "child" includes a stepchild and a biological, adopted, and foster child.

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(f) For the purpose of this section, "grandchild" includes a step-grandchild, and a biological, adopted, and foster grandchild.

~~(e)~~ (g) This section does not prevent an employer from providing greater sick leave benefits than are provided for under this section.

(h) An employer shall not retaliate against an employee for requesting or obtaining a leave of absence under this section.

Sec. 4. [181.9414] PREGNANCY ACCOMMODATIONS.

Subdivision 1. Accommodation. An employer must provide reasonable accommodations to an employee for health conditions related to pregnancy or childbirth if she so requests, with the advice of her licensed health care provider or certified doula, unless the employer demonstrates that the accommodation would impose an undue hardship on the operation of the employer's business. A pregnant employee shall not be required to obtain the advice of her licensed health care provider or certified doula, nor may an employer claim undue hardship for the following accommodations: (1) more frequent restroom, food, and water breaks; (2) seating; and (3) limits on lifting over 20 pounds. The employee and employer shall engage in an interactive process with respect to an employee's request for a reasonable accommodation. "Reasonable accommodation" may include, but is not limited to, temporary transfer to a less strenuous or hazardous position, seating, frequent restroom breaks, and limits to heavy lifting. Notwithstanding any other provision of this section, an employer shall not be required to create a new or additional position in order to accommodate an employee pursuant to this section, and shall not be required to discharge any employee, transfer any other employee with greater seniority, or promote any employee.

Subd. 2. Interaction with other laws. Nothing in this section shall be construed to affect any other provision of law relating to sex discrimination or pregnancy, or in any way to diminish the coverage of pregnancy, childbirth, or health conditions related to pregnancy or childbirth under any other provisions of any other law.

Subd. 3. No employer retribution. An employer shall not retaliate against an employee for requesting or obtaining accommodation under this section.

Subd. 4. Employee not required to take leave. An employer shall not require an employee to take a leave or accept an accommodation.

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

Sec. 5. Minnesota Statutes 2012, section 181.943, is amended to read:

181.943 RELATIONSHIP TO OTHER LEAVE.

(a) The length of ~~parental~~ leave provided under section 181.941 may be reduced by any period of ~~paid parental or disability leave, but not accrued sick leave, provided by the employer, so that the total leave does not exceed six weeks, unless agreed to by the employer.~~:

(1) paid parental, disability, personal, medical, or sick leave, or accrued vacation provided by the employer so that the total leave does not exceed 12 weeks, unless agreed to by the employer; or

(2) leave taken for the same purpose by the employee under United States Code, title 29, chapter 28.

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(b) Nothing in sections 181.940 to 181.943 prevents any employer from providing leave benefits in addition to those provided in sections 181.940 to 181.944 or otherwise affects an employee's rights with respect to any other employment benefit.

ARTICLE 4

EMPLOYMENT PROTECTIONS

Section 1. Minnesota Statutes 2013 Supplement, 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, 181.172, paragraph (a) or (d), 181.275, subdivision 2a, 181.722, ~~and~~ 181.79, and 181.939 to 181.943, 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. 2. [181.172] WAGE DISCLOSURE PROTECTION.

(a) An employer shall not:

(1) require nondisclosure by an employee of his or her wages as a condition of employment;

(2) require an employee to sign a waiver or other document which purports to deny an employee the right to disclose the employee's wages; or

(3) take any adverse employment action against an employee for disclosing the employee's own wages or discussing another employee's wages which have been disclosed voluntarily.

(b) Nothing in this section shall be construed to:

(1) create an obligation on any employer or employee to disclose wages;

(2) permit an employee, without the written consent of the employer, to disclose proprietary information, trade secret information, or information that is otherwise subject to a legal privilege or protected by law;

(3) diminish any existing rights under the National Labor Relations Act under United States Code, title 29; or

(4) permit the employee to disclose wage information of other employees to a competitor of their employer.

(c) An employer that provides an employee handbook to its employees must include in the handbook notice of employee rights and remedies under this section.

(d) An employer may not retaliate against an employee for asserting rights or remedies under this section.

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(e) An employee may bring a civil action against an employer for a violation of paragraph (a) or (d). If a court finds that an employer has violated paragraph (a) or (d), the court may order reinstatement, back pay, restoration of lost service credit, if appropriate, and the expungement of any related adverse records of an employee who was the subject of the violation.

Sec. 3. Minnesota Statutes 2012, section 181.939, is amended to read:

181.939 NURSING MOTHERS.

(a) An employer must provide reasonable unpaid break time each day to an employee who needs to express breast milk for her infant child. The break time must, if possible, run concurrently with any break time already provided to the employee. An employer is not required to provide break time under this section if to do so would unduly disrupt the operations of the employer.

(b) The employer must make reasonable efforts to provide a room or other location, in close proximity to the work area, other than a bathroom or a toilet stall, that is shielded from view and free from intrusion from coworkers and the public and that includes access to an electrical outlet, where the employee can express her milk in privacy. The employer would be held harmless if reasonable effort has been made.

(c) For the purposes of this section, "employer" means a person or entity that employs one or more employees and includes the state and its political subdivisions.

(d) An employer may not retaliate against an employee for asserting rights or remedies under this section.

Sec. 4. Minnesota Statutes 2012, section 181.9435, subdivision 1, is amended to read:

Subdivision 1. Investigation. The Division of Labor Standards and Apprenticeship shall receive complaints of employees against employers relating to sections ~~181.940~~ 181.172, paragraph (a) or (d), and 181.939 to 181.9436 and investigate informally whether an employer may be in violation of sections ~~181.940~~ 181.172, paragraph (a) or (d), and 181.939 to 181.9436. The division shall attempt to resolve employee complaints by informing employees and employers of the provisions of the law and directing employers to comply with the law. For complaints related to section 181.939, the division must contact the employer within two business days and investigate the complaint within ten days of receipt of the complaint.

Sec. 5. Minnesota Statutes 2012, section 181.944, is amended to read:

181.944 INDIVIDUAL REMEDIES.

In addition to any other remedies provided by law, a person injured by a violation of sections ~~181.940~~ 181.172, paragraph (a) or (d), and 181.939 to 181.943 may bring a civil action to recover any and all damages recoverable at law, together with costs and disbursements, including reasonable attorney's fees, and may receive injunctive and other equitable relief as determined by a court.

Sec. 6. Minnesota Statutes 2012, section 363A.08, subdivision 1, is amended to read:

Subdivision 1. Labor organization. Except when based on a bona fide occupational qualification, it is an unfair employment practice for a labor organization, because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, familial status, disability, sexual orientation, or age:

(1) to deny full and equal membership rights to a person seeking membership or to a member;

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(2) to expel a member from membership;

(3) to discriminate against a person seeking membership or a member with respect to hiring, apprenticeship, tenure, compensation, terms, upgrading, conditions, facilities, or privileges of employment; or

(4) to fail to classify properly, or refer for employment or otherwise to discriminate against a person or member.

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

Sec. 7. Minnesota Statutes 2012, section 363A.08, subdivision 2, is amended to read:

Subd. 2. Employer. Except when based on a bona fide occupational qualification, it is an unfair employment practice for an employer, because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, familial status, membership or activity in a local commission, disability, sexual orientation, or age to:

(1) refuse to hire or to maintain a system of employment which unreasonably excludes a person seeking employment; or

(2) discharge an employee; or

(3) discriminate against a person with respect to hiring, tenure, compensation, terms, upgrading, conditions, facilities, or privileges of employment.

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

Sec. 8. Minnesota Statutes 2012, section 363A.08, subdivision 3, is amended to read:

Subd. 3. Employment agency. Except when based on a bona fide occupational qualification, it is an unfair employment practice for an employment agency, because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, familial status, disability, sexual orientation, or age to:

(1) refuse or fail to accept, register, classify properly, or refer for employment or otherwise to discriminate against a person; or

(2) comply with a request from an employer for referral of applicants for employment if the request indicates directly or indirectly that the employer fails to comply with the provisions of this chapter.

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

Sec. 9. Minnesota Statutes 2012, section 363A.08, subdivision 4, is amended to read:

Subd. 4. Employer, employment agency, or labor organization. (a) Except when based on a bona fide occupational qualification, it is an unfair employment practice for an employer, employment agency, or labor organization, before a person is employed by an employer or admitted to membership in a labor organization, to:

(1) require or request the person to furnish information that pertains to race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, familial status, disability, sexual orientation, or age; or, subject to section 363A.20, to require or request a person to undergo physical examination; unless for the sole and exclusive purpose of national security, information pertaining to national origin is required by the United States, this state or a political subdivision or agency of the United States or this state, or for the sole and exclusive

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purpose of compliance with the Public Contracts Act or any rule, regulation, or laws of the United States or of this state requiring the information or examination. A law enforcement agency may, after notifying an applicant for a peace officer or part-time peace officer position that the law enforcement agency is commencing the background investigation on the applicant, request the applicant's date of birth, gender, and race on a separate form for the sole and exclusive purpose of conducting a criminal history check, a driver's license check, and fingerprint criminal history inquiry. The form shall include a statement indicating why the data is being collected and what its limited use will be. No document which has date of birth, gender, or race information will be included in the information given to or available to any person who is involved in selecting the person or persons employed other than the background investigator. No person may act both as background investigator and be involved in the selection of an employee except that the background investigator's report about background may be used in that selection as long as no direct or indirect references are made to the applicant's race, age, or gender; or

(2) seek and obtain for purposes of making a job decision, information from any source that pertains to the person's race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, familial status, disability, sexual orientation, or age, unless for the sole and exclusive purpose of compliance with the Public Contracts Act or any rule, regulation, or laws of the United States or of this state requiring the information; or

(3) cause to be printed or published a notice or advertisement that relates to employment or membership and discloses a preference, limitation, specification, or discrimination based on race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, familial status, disability, sexual orientation, or age.

(b) Any individual who is required to provide information that is prohibited by this subdivision is an aggrieved party under sections 363A.06, subdivision 4, and 363A.28, subdivisions 1 to 9.

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

Sec. 10. ENFORCEMENT APPROPRIATION.

$100,000 in fiscal year 2015 is appropriated from the general fund to the commissioner of labor and industry for additional compliance and enforcement activities by the labor standards unit related to this act."

Delete the title and insert:

"A bill for an act relating to state government; providing for the Women's Economic Security Act; requiring equal pay certificates of compliance; modifying workforce development provisions; creating women and high-wage, high-demand, nontraditional jobs grant program; modifying eligibility for unemployment insurance benefits; offering women entrepreneurs business development grants; requiring a report on a potential state-administered retirement savings plan; modifying parenting leave, sick leave, and pregnancy accommodations; providing employment protections; providing wage disclosure protection; appropriating money; amending Minnesota Statutes 2012, sections 13.552, by adding a subdivision; 181.939; 181.940, subdivision 2; 181.941; 181.943; 181.9435, subdivision 1; 181.944; 268.095, subdivisions 1, 6; 363A.08, subdivisions 1, 2, 3, 4; Minnesota Statutes 2013 Supplement, sections 116L.665, subdivision 2; 177.27, subdivision 4; 181.9413; proposing coding for new law in Minnesota Statutes, chapters 116L; 181; 363A."

We request the adoption of this report and repassage of the bill.

House Conferees: Carly Melin and Rena Moran.

Senate Conferees: Sandra L. Pappas and Katie Sieben.

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Melin moved that the report of the Conference Committee on H. F. No. 2536 be adopted and that the bill be repassed as amended by the Conference Committee.

A roll call was requested and properly seconded.

Anderson, S., moved that the House refuse to adopt the Conference Committee Report on H. F. No. 2536, and that the bill be returned to the Conference Committee.

A roll call was requested and properly seconded.

The question was taken on the Anderson, S., motion and the roll was called. There were 59 yeas and 70 nays as follows:

Those who voted in the affirmative were:

The bill was repassed, as amended by Conference, and its title agreed to.

CONFERENCE COMMITTEE REPORT ON H. F. No. 2948

A bill for an act relating to economic development; repealing obsolete, redundant, and unnecessary laws administered by the Department of Employment and Economic Development; making conforming changes; amending Minnesota Statutes 2012, sections 15.991, subdivision 1; 116C.34, subdivision 3; 116D.04, subdivision 2a; 116L.02; 116L.05, subdivision 5; 116L.20, subdivision 2; 256J.49, subdivision 4; 256J.51, subdivision 2; 268.105, subdivision 7; 268.186; repealing Minnesota Statutes 2012, sections 116C.22; 116C.23; 116C.24; 116C.25; 116C.26; 116C.261; 116C.27; 116C.28; 116C.29; 116C.30; 116C.31; 116C.32; 116C.33; 116J.037; 116J.422; 116J.658; 116J.68, subdivision 5; 116J.74, subdivision 7a; 116J.874, subdivisions 1, 2, 3, 4, 5; 116J.885; 116J.987; 116J.988; 116J.989; 116J.990, subdivisions 1, 2, 3, 4, 5, 6; 116L.06; 116L.10; 116L.11; 116L.12, subdivisions 1, 3, 4, 5, 6; 116L.13; 116L.14; 116L.15; 116L.361, subdivision 2; 116L.363; 116L.871; 116L.872; 469.109; 469.124; Minnesota Statutes 2013 Supplement, sections 116J.6581; 116J.70, subdivision 2a.

May 5, 2014

The Honorable Paul Thissen

Speaker of the House of Representatives

The Honorable Sandra L. Pappas

President of the Senate

We, the undersigned conferees for H. F. No. 2948 report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 2948 be further amended as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

OBSOLETE AND REDUNDANT STATUTES

Section 1. Minnesota Statutes 2012, section 268.105, subdivision 7, is amended to read:

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Subd. 7. Judicial review. (a) The Minnesota Court of Appeals must, by writ of certiorari to the department, review the unemployment law judge's decision, provided a petition for the writ is filed with the court and a copy is served upon the unemployment law judge or the commissioner and any other involved party within 30 calendar days of the sending of the unemployment law judge's order under subdivision 2.

(b) Any employer petitioning for a writ of certiorari must pay to the court the required filing fee ~~and upon the service of the writ must furnish a cost bond to the department~~ in accordance with the Rules of Civil Appellate Procedure. If the employer requests a written transcript of the testimony received at the evidentiary hearing conducted under subdivision 1, the employer must pay to the department the cost of preparing the transcript. That money is credited to the administration account.

(c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a result of an applicant's petition, the department must furnish to the applicant at no cost a written transcript of any testimony received at the evidentiary hearing conducted under subdivision 1, and, if requested, a copy of all exhibits entered into evidence. No filing fee or cost bond is required of an applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.

(d) The Minnesota Court of Appeals may affirm the decision of the unemployment law judge or remand the case for further proceedings; or it may reverse or modify the decision if the substantial rights of the petitioner may have been prejudiced because the findings, inferences, conclusion, or decision are:

(1) in violation of constitutional provisions;

(2) in excess of the statutory authority or jurisdiction of the department;

(3) made upon unlawful procedure;

(4) affected by other error of law;

(5) unsupported by substantial evidence in view of the entire record as submitted; or

(6) arbitrary or capricious.

(e) The department is considered the primary responding party to any judicial action involving an unemployment law judge's decision. The department may be represented by an attorney licensed to practice law in Minnesota who is an employee of the department.

Sec. 2. Minnesota Statutes 2012, section 268.186, is amended to read:

268.186 RECORDS; AUDITS.

(a) Each employer must keep true and accurate records ~~for the periods of time and~~ on individuals performing services for the employer, containing the information the commissioner may require ~~by rule~~ under Minnesota Rules, part 3315.1010. The records must be kept for a period of not less than four years in addition to the current calendar year.

For the purpose of administering this chapter, the commissioner has the power to audit, examine, or cause to be supplied or copied, any books, correspondence, papers, records, or memoranda that are relevant, whether the books, correspondence, papers, records, or memoranda are the property of or in the possession of the employer or any other person at any reasonable time and as often as may be necessary.

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(b) Any employer that refuses to allow an audit of its records by the department, or that fails to make all necessary records available for audit in Minnesota upon request of the commissioner, may be assessed an administrative penalty of $500.

An employer that fails to provide a weekly breakdown of money earned by an applicant upon request of the commissioner, information necessary for the detection of applicant fraud under section 268.18, subdivision 2, may be assessed an administrative penalty of $100. Any notice requesting a weekly breakdown must clearly state that a $100 penalty may be assessed for failure to provide the information. The penalty collected is credited to the trust fund.

(c) The commissioner may make summaries, compilations, photographs, duplications, or reproductions of any records, or reports that the commissioner considers advisable for the preservation of the information contained therein. Any summaries, compilations, photographs, duplications, or reproductions is admissible in any proceeding under this chapter. The commissioner may duplicate records, reports, summaries, compilations, instructions, determinations, or any other written or recorded matter pertaining to the administration of this chapter.

(d) Regardless of any law to the contrary, the commissioner may provide for the destruction of any records, reports, or reproductions, or other papers that are no longer necessary for the administration of this chapter, including any required audit. In addition, the commissioner may provide for the destruction or disposition of any record, report, or other paper from which the information has been electronically captured and stored, or that has been photographed, duplicated, or reproduced.

Sec. 3. REPEALER.

Subdivision 1. Environmental Coordination Procedures Act. Minnesota Statutes 2012, sections 116C.22; 116C.23; 116C.24; 116C.25; 116C.26; 116C.261; 116C.27; 116C.28; 116C.29; 116C.30; 116C.31; 116C.32; and 116C.33, are repealed.

Subd. 2. E-Commerce ready designations. Minnesota Statutes 2012, section 116J.037, is repealed.

Subd. 3. Rural policy and development center fund. Minnesota Statutes 2012, section 116J.422, is repealed.

Subd. 4. Minnesota Entrepreneur Resource Virtual Network (MERVN). Minnesota Statutes 2013 Supplement, section 116J.6581, is repealed.

Subd. 5. Small Business Development Center Advisory Board meetings. Minnesota Statutes 2012, section 116J.68, subdivision 5, is repealed.

Subd. 6. Business license assistance exceptions. Minnesota Statutes 2013 Supplement, section 116J.70, subdivision 2a, is repealed.

Subd. 7. Affirmative enterprise program. Minnesota Statutes 2012, section 116J.874, subdivisions 1, 2, 3, 4, and 5, are repealed.

Subd. 8. Biomedical Innovation and Commercialization Initiative. Minnesota Statutes 2012, section 116J.885, is repealed.

Subd. 9. Board of Invention. Minnesota Statutes 2012, sections 116J.987; 116J.988; 116J.989; and 116J.990, subdivisions 1, 2, 3, 4, 5, and 6, are repealed.

Subd. 10. HIRE education loan program. Minnesota Statutes 2012, section 116L.06, is repealed.

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Subd. 11. Healthcare and human services worker program. Minnesota Statutes 2012, sections 116L.10; 116L.11; 116L.12, subdivisions 1, 3, 4, 5, and 6; 116L.13; 116L.14; and 116L.15, are repealed.

Subd. 12. Youthbuild advisory committee. Minnesota Statutes 2012, section 116L.363, is repealed.

Subd. 13. Local service unit delivery. Minnesota Statutes 2012, sections 116L.871; and 116L.872, are repealed.

ARTICLE 2

CONFORMING CHANGES

Section 1. Minnesota Statutes 2012, section 15.991, subdivision 1, is amended to read:

Subdivision 1. Definitions. For purposes of this section and section 15.992:

(1) "business license" or "license" has the meaning given it in section 116J.70, subdivision 2~~, and also includes licenses and other forms of approval listed in section 116J.70, subdivision 2a, clauses (7) and (8), but does not include those listed in subdivision 2a, clauses (1) to (6)~~;

(2) "customer" means an individual; a small business as defined in section 645.445, but also including a nonprofit corporation that otherwise meets the criteria in that section; a family farm, family farm corporation, or family farm partnership as defined in section 500.24, subdivision 2; or a political subdivision as defined in section 103G.005, subdivision 14a;

(3) "initial agency" means the state agency to which a customer submits an application for a license or inquires about submitting an application; and

(4) "responsible agency" means the initial agency or another state agency that agrees to be designated the responsible agency.

Sec. 2. Minnesota Statutes 2012, section 116C.34, subdivision 3, is amended to read:

Subd. 3. County responsibility. The auditor of each county shall post in a conspicuous place in the auditor's office the telephone numbers of the Bureau of Business Licenses and the permit information center in the office of the applicable regional development commission~~; copies of any master applications or permit applications forwarded to the auditor pursuant to section 116C.27, subdivision 1;~~ and copies of any information published by the bureau or an information center pursuant to subdivision 1.

Sec. 3. Minnesota Statutes 2012, section 116D.04, subdivision 2a, is amended to read:

Subd. 2a. When prepared. Where there is potential for significant environmental effects resulting from any major governmental action, the action shall be preceded by a detailed environmental impact statement prepared by the responsible governmental unit. The environmental impact statement shall be an analytical rather than an encyclopedic document which describes the proposed action in detail, analyzes its significant environmental impacts, discusses appropriate alternatives to the proposed action and their impacts, and explores methods by which adverse environmental impacts of an action could be mitigated. The environmental impact statement shall also analyze those economic, employment, and sociological effects that cannot be avoided should the action be implemented. To ensure its use in the decision-making process, the environmental impact statement shall be prepared as early as practical in the formulation of an action.

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(a) The board shall by rule establish categories of actions for which environmental impact statements and for which environmental assessment worksheets shall be prepared as well as categories of actions for which no environmental review is required under this section. A mandatory environmental assessment worksheet shall not be required for the expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph (b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a biobutanol facility as defined in section 41A.105, subdivision 1a, based on the capacity of the expanded or converted facility to produce alcohol fuel, but must be required if the ethanol plant or biobutanol facility meets or exceeds thresholds of other categories of actions for which environmental assessment worksheets must be prepared. The responsible governmental unit for an ethanol plant or biobutanol facility project for which an environmental assessment worksheet is prepared shall be the state agency with the greatest responsibility for supervising or approving the project as a whole.

A mandatory environmental impact statement shall not be required for a facility or plant located outside the seven-county metropolitan area that produces less than 125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, if the facility or plant is: an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined in section 41A.105, subdivision 1a, clause (1); or a cellulosic biofuel facility, as defined in section 41A.10, subdivision 1, paragraph (d).

(b) The responsible governmental unit shall promptly publish notice of the completion of an environmental assessment worksheet by publishing the notice in at least one newspaper of general circulation in the geographic area where the project is proposed, by posting the notice on a Web site that has been designated as the official publication site for publication of proceedings, public notices, and summaries of a political subdivision in which the project is proposed, or in any other manner determined by the board and shall provide copies of the environmental assessment worksheet to the board and its member agencies. Comments on the need for an environmental impact statement may be submitted to the responsible governmental unit during a 30-day period following publication of the notice that an environmental assessment worksheet has been completed. The responsible governmental unit's decision on the need for an environmental impact statement shall be based on the environmental assessment worksheet and the comments received during the comment period, and shall be made within 15 days after the close of the comment period. The board's chair may extend the 15-day period by not more than 15 additional days upon the request of the responsible governmental unit.

(c) An environmental assessment worksheet shall also be prepared for a proposed action whenever material evidence accompanying a petition by not less than 100 individuals who reside or own property in the state, submitted before the proposed project has received final approval by the appropriate governmental units, demonstrates that, because of the nature or location of a proposed action, there may be potential for significant environmental effects. Petitions requesting the preparation of an environmental assessment worksheet shall be submitted to the board. The chair of the board shall determine the appropriate responsible governmental unit and forward the petition to it. A decision on the need for an environmental assessment worksheet shall be made by the responsible governmental unit within 15 days after the petition is received by the responsible governmental unit. The board's chair may extend the 15-day period by not more than 15 additional days upon request of the responsible governmental unit.

(d) Except in an environmentally sensitive location where Minnesota Rules, part 4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental review under this chapter and rules of the board, if:

(1) the proposed action is:

(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or

(ii) an expansion of an existing animal feedlot facility with a total cumulative capacity of less than 1,000 animal units;

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(2) the application for the animal feedlot facility includes a written commitment by the proposer to design, construct, and operate the facility in full compliance with Pollution Control Agency feedlot rules; and

(3) the county board holds a public meeting for citizen input at least ten business days prior to the Pollution Control Agency or county issuing a feedlot permit for the animal feedlot facility unless another public meeting for citizen input has been held with regard to the feedlot facility to be permitted. The exemption in this paragraph is in addition to other exemptions provided under other law and rules of the board.

(e) The board may, prior to final approval of a proposed project, require preparation of an environmental assessment worksheet by a responsible governmental unit selected by the board for any action where environmental review under this section has not been specifically provided for by rule or otherwise initiated.

(f) An early and open process shall be utilized to limit the scope of the environmental impact statement to a discussion of those impacts, which, because of the nature or location of the project, have the potential for significant environmental effects. The same process shall be utilized to determine the form, content and level of detail of the statement as well as the alternatives which are appropriate for consideration in the statement. In addition, the permits which will be required for the proposed action shall be identified during the scoping process. Further, the process shall identify those permits for which information will be developed concurrently with the environmental impact statement. The board shall provide in its rules for the expeditious completion of the scoping process. The determinations reached in the process shall be incorporated into the order requiring the preparation of an environmental impact statement.

(g) The responsible governmental unit shall, to the extent practicable, avoid duplication and ensure coordination between state and federal environmental review and between environmental review and environmental permitting. Whenever practical, information needed by a governmental unit for making final decisions on permits or other actions required for a proposed project shall be developed in conjunction with the preparation of an environmental impact statement. When an environmental impact statement is prepared for a project requiring multiple permits for which two or more agencies' decision processes include either mandatory or discretionary hearings before a hearing officer prior to the agencies' decision on the permit, the agencies may, notwithstanding any law or rule to the contrary, conduct the hearings in a single consolidated hearing process if requested by the proposer. All agencies having jurisdiction over a permit that is included in the consolidated hearing shall participate. The responsible governmental unit shall establish appropriate procedures for the consolidated hearing process, including procedures to ensure that the consolidated hearing process is consistent with the applicable requirements for each permit regarding the rights and duties of parties to the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing. ~~The procedures of section 116C.28, subdivision 2, apply to the consolidated hearing.~~

(h) An environmental impact statement shall be prepared and its adequacy determined within 280 days after notice of its preparation unless the time is extended by consent of the parties or by the governor for good cause. The responsible governmental unit shall determine the adequacy of an environmental impact statement, unless within 60 days after notice is published that an environmental impact statement will be prepared, the board chooses to determine the adequacy of an environmental impact statement. If an environmental impact statement is found to be inadequate, the responsible governmental unit shall have 60 days to prepare an adequate environmental impact statement.

(i) The proposer of a specific action may include in the information submitted to the responsible governmental unit a preliminary draft environmental impact statement under this section on that action for review, modification, and determination of completeness and adequacy by the responsible governmental unit. A preliminary draft environmental impact statement prepared by the project proposer and submitted to the responsible governmental unit shall identify or include as an appendix all studies and other sources of information used to substantiate the analysis contained in the preliminary draft environmental impact statement. The responsible governmental unit shall require additional studies, if needed, and obtain from the project proposer all additional studies and information necessary for the responsible governmental unit to perform its responsibility to review, modify, and determine the completeness and adequacy of the environmental impact statement.

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Sec. 4. Minnesota Statutes 2012, section 116L.02, is amended to read:

116L.02 JOB SKILLS PARTNERSHIP PROGRAM.

(a) The Minnesota Job Skills Partnership program is created to act as a catalyst to bring together employers with specific training needs with educational or other nonprofit institutions which can design programs to fill those needs. The partnership shall work closely with employers to prepare, train and place prospective or incumbent workers in identifiable positions as well as assisting educational or other nonprofit institutions in developing training programs that coincide with current and future employer requirements. The partnership shall provide grants to educational or other nonprofit institutions for the purpose of training workers. A participating business must match the grant-in-aid made by the Minnesota Job Skills Partnership. The match may be in the form of funding, equipment, or faculty.

~~(b) The partnership program shall administer the health care and human services worker training and retention program under sections 116L.10 to 116L.15.~~

~~(c)~~ (b) The partnership program is authorized to use funds to pay for training for individuals who have incomes at or below 200 percent of the federal poverty line. The board may grant funds to eligible recipients to pay for board-certified training. Eligible recipients of grants may include public, private, or nonprofit entities that provide employment services to low-income individuals.

Sec. 5. Minnesota Statutes 2012, section 116L.05, subdivision 5, is amended to read:

Subd. 5. Use of workforce development funds. After March 1 of any fiscal year, the board may use workforce development funds for the purposes outlined in sections 116L.02, and 116L.04~~, and 116L.10 to 116L.14,~~ or to provide incumbent worker training services under section 116L.18 if the following conditions have been met:

(1) the board examines relevant economic indicators, including the projected number of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of declining and expanding industries, the number of initial applications for and the number of exhaustions of unemployment benefits, job vacancy data, and any additional relevant information brought to the board's attention;

(2) the board accounts for all allocations made in section 116L.17, subdivision 2;

(3) based on the past expenditures and projected revenue, the board estimates future funding needs for services under section 116L.17 for the remainder of the current fiscal year and the next fiscal year;

(4) the board determines there will be unspent funds after meeting the needs of dislocated workers in the current fiscal year and there will be sufficient revenue to meet the needs of dislocated workers in the next fiscal year; and

(5) the board reports its findings in clauses (1) to (4) to the chairs of legislative committees with jurisdiction over the workforce development fund, to the commissioners of revenue and management and budget, and to the public.

Sec. 6. Minnesota Statutes 2012, section 116L.20, subdivision 2, is amended to read:

Subd. 2. Disbursement of special assessment funds. (a) The money collected under this section shall be deposited in the state treasury and credited to the workforce development fund to provide for employment and training programs. The workforce development fund is created as a special account in the state treasury.

(b) All money in the fund not otherwise appropriated or transferred is appropriated to the Job Skills Partnership Board for the purposes of section 116L.17 and as provided for in paragraph (d). The board must act as the fiscal agent for the money and must disburse that money for the purposes of section 116L.17, not allowing the money to

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be used for any other obligation of the state. All money in the workforce development fund shall be deposited, administered, and disbursed in the same manner and under the same conditions and requirements as are provided by law for the other special accounts in the state treasury, except that all interest or net income resulting from the investment or deposit of money in the fund shall accrue to the fund for the purposes of the fund.

(c) Reimbursement for costs related to collection of the special assessment shall be in an amount negotiated between the commissioner and the United States Department of Labor.

(d) If the board determines that the conditions of section 116L.05, subdivision 5, have been met, the board may use funds for the purposes outlined in ~~sections~~ section 116L.04 ~~and 116L.10 to 116L.14,~~ or to provide incumbent worker training services under section 116L.18.

Sec. 7. Minnesota Statutes 2012, section 256J.49, subdivision 4, is amended to read:

Subd. 4. Employment and training service provider. "Employment and training service provider" means:

(1) a public, private, or nonprofit agency with which a county has contracted to provide employment and training services and which is included in the county's service agreement submitted under section 256J.626, subdivision 4;

(2) a county agency, if the county has opted to provide employment and training services and the county has indicated that fact in the service agreement submitted under section 256J.626, subdivision 4; or

(3) a local public health department under section 145A.17, subdivision 4a, that a county has designated to provide employment and training services and is included in the county's service agreement submitted under section 256J.626, subdivision 4.

~~Notwithstanding section 116L.871,~~ An employment and training services provider meeting this definition may deliver employment and training services under this chapter.

Sec. 8. Minnesota Statutes 2012, section 256J.51, subdivision 2, is amended to read:

Subd. 2. Appeal; alternate approval. ~~(a)~~ An employment and training service provider that is not included by a county agency in the service agreement under section 256J.626, subdivision 4, and that meets the criteria in paragraph (b), may appeal its exclusion to the commissioner of employment and economic development, and may request alternative approval by the commissioner of employment and economic development to provide services in the county.

(b) An employment and training services provider that is requesting alternative approval must demonstrate to the commissioner that the provider meets the standards specified in section 116L.871, subdivision 1, paragraph (b), except that the provider's past experience may be in services and programs similar to those specified in section 116L.871, subdivision 1, paragraph (b).

Sec. 9. REPEALER.

Subdivision 1. Reference to Minnesota Statutes, section 116J.70, subdivision 2a. Minnesota Statutes 2012, section 116J.74, subdivision 7a, is repealed.

Subd. 2. Reference to Minnesota Statutes, section 116L.363. Minnesota Statutes 2012, section 116L.361, subdivision 2, is repealed.

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ARTICLE 3

METROPOLITAN COUNCIL

Section 1. Minnesota Statutes 2012, section 473.123, subdivision 4, is amended to read:

Subd. 4. Chair; appointment, officers, selection; duties and compensation. (a) The chair of the Metropolitan Council shall be appointed by the governor as the 17th voting member thereof by and with the advice and consent of the senate to serve at the pleasure of the governor to represent the metropolitan area at large. Senate confirmation shall be as provided by section 15.066.

The chair of the Metropolitan Council shall, if present, preside at meetings of the council, have the primary responsibility for meeting with local elected officials, serve as the principal legislative liaison, present to the governor and the legislature, after council approval, the council's plans for regional governance and operations, serve as the principal spokesperson of the council, and perform other duties assigned by the council or by law.

(b) The Metropolitan Council shall elect other officers as it deems necessary for the conduct of its affairs for a one-year term. A secretary and treasurer need not be members of the Metropolitan Council. Meeting times and places shall be fixed by the Metropolitan Council and special meetings may be called by a majority of the members of the Metropolitan Council or by the chair. The chair and each Metropolitan Council member shall be reimbursed for actual and necessary expenses. The annual budget of the council shall provide as a separate account anticipated expenditures for compensation, travel, and associated expenses for the chair and members, and compensation or reimbursement shall be made to the chair and members only when budgeted.

(c) Each member of the council shall attend and participate in council meetings and meet regularly with local elected officials and legislative members from the council member's district. Each council member shall serve on at least one division committee for transportation, environment, or community development.

(d) In the performance of its duties the Metropolitan Council may adopt policies and procedures governing its operation, establish committees, and, when specifically authorized by law, make appointments to other governmental agencies and districts.

Sec. 2. Minnesota Statutes 2012, section 473.125, is amended to read:

473.125 REGIONAL ADMINISTRATOR.

The Metropolitan Council shall appoint a regional administrator to serve at the council's pleasure as the principal administrative officer for the Metropolitan Council. The regional administrator shall organize the work of the council staff. The regional administrator shall appoint on the basis of merit and fitness, and discipline and discharge all employees in accordance with the council's personnel policy, except ~~(1) the performance and budget analysts provided for in section 473.123, subdivision 7, (2)~~ the general counsel, as provided in section 473.123, subdivision 8, (3) employees of the offices of wastewater services and transit operations, who are appointed, disciplined, and discharged in accordance with council personnel policies by their respective operations managers, and (4) metropolitan transit police officers. The regional administrator must ensure that all policy decisions of the council are carried out. The regional administrator shall attend meetings of the council and may take part in discussions but may not vote. The regional administrator shall recommend to the council for adoption measures deemed necessary for efficient administration of the council, keep the council fully apprised of the financial condition of the council, and prepare and submit an annual budget to the council for approval. The regional administrator shall prepare and submit for approval by the council an administrative code organizing and codifying the policies of the council, and perform other duties as prescribed by the council. The regional administrator may be chosen from among the citizens of the nation at large, and shall be selected on the basis of training and experience in public administration.

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Sec. 3. Minnesota Statutes 2012, section 473.129, subdivision 6, is amended to read:

Subd. 6. On metro agencies. ~~(a)~~ The Metropolitan Council shall appoint from its membership a member to serve with each metropolitan agency. Each member of the Metropolitan Council so appointed on each of such agencies shall serve without a vote.

~~(b) The Metropolitan Council shall also appoint individuals to the governing body of the cable communications metropolitan interconnected regional channel entity under section 238.43, subdivision 5.~~

Sec. 4. Minnesota Statutes 2012, section 473.129, subdivision 12, is amended to read:

Subd. 12. Best value procurement alternative. (a) Notwithstanding the provisions of section 471.345, the council may award a contract for the purchase of transit vehicles to the vendor or contractor offering the best value under a request for proposals. For the purposes of this subdivision, "transit vehicles" means buses and coaches, commuter rail locomotives and coach cars, light rail vehicles, and paratransit vehicles that are used to provide transit and special transportation service pursuant to sections 473.371 to 473.449.

(b) For the purposes of this subdivision, "best value" describes a result intended in the acquisition of goods and services described in paragraph (a). Price must be one of the evaluation criteria ~~when acquiring such goods and services~~. Other evaluation criteria may include, but are not limited to, environmental considerations, quality, and vendor or contractor performance. ~~A best value determination must be based on~~ The evaluation criteria ~~detailed~~ must be included in the solicitation document~~. If criteria other than price are used, the solicitation document must state~~ as well as the relative importance of price and other factors.

Sec. 5. Minnesota Statutes 2012, section 473.173, subdivision 2, is amended to read:

Subd. 2. Rules. ~~By September 1, 1976,~~ The council shall adopt and put into effect rules establishing standards, guidelines and procedures for determining whether any proposed matter is of metropolitan significance, and establishing a procedure for the review of and final determination on such matters in accordance with the powers and requirements set forth in this section. The purpose of these rules shall be to promote the orderly and ~~economic~~ economical development, public and private, of the metropolitan area.

Sec. 6. Minnesota Statutes 2012, section 473.181, subdivision 2, is amended to read:

Subd. 2. Parks. The council shall review local government park master plans pursuant to section 473.313. The Metropolitan Council shall approve the use of moneys made available for land acquisition to local units of government from the land and conservation fund, the open space program of HUD, the natural resources account in the state treasury, if the use thereof conforms with the system of priorities established by law as part of a comprehensive plan for the development of parks; otherwise it shall disapprove of the use thereof.

Sec. 7. Minnesota Statutes 2012, section 473.254, subdivision 3a, is amended to read:

Subd. 3a. Affordable, life-cycle housing opportunities amount ~~after 2002~~. ~~(1)~~ ~~Notwithstanding any other provisions of this section, commencing for calendar year 2003 and each succeeding calendar year,~~ (a) Each municipality's "affordable and life-cycle housing opportunities amount" for that year must be determined annually by the council using the method in this subdivision. The affordable and life-cycle housing opportunities amount must be determined for each calendar year for all municipalities in the metropolitan area.

~~(2)~~ (b) The council must allocate to each municipality its portion of the $1,000,000 of the revenue generated by the levy authorized in section 473.249 which is credited to the local housing incentives account pursuant to subdivision 5, paragraph (b). The allocation must be made by determining the amount levied for and payable in

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each municipality in the previous calendar year pursuant to the council levy in section 473.249 divided by the total amount levied for and payable in the metropolitan area in the previous calendar year pursuant to such levy and multiplying that result by $1,000,000.

~~(3)~~ (c) The council must also determine the amount levied for and payable in each municipality in the previous calendar year pursuant to the council levy in section 473.253, subdivision 1.

~~(4)~~ (d) A municipality's affordable and life-cycle housing opportunities amount for the calendar year is the sum of the amounts determined under ~~clauses (2) and (3)~~ paragraphs (b) and (c).

(5) Within 90 days after the effective date of this act, the council must notify each municipality of its affordable and life-cycle housing opportunities amount for calendar years 2003 and 2004 as determined by the method in this subdivision. These amounts replace the affordable and life-cycle housing opportunities amount for each municipality for calendar years 2003 and 2004 as previously determined by the method in subdivision 3.

~~(6)~~ (e) By ~~August 1, 2004, and by~~ August 1 of each ~~succeeding~~ year, the council must notify each municipality of its affordable and life-cycle housing opportunities amount for the following calendar year determined by the method in this subdivision.

Sec. 8. Minnesota Statutes 2012, section 473.254, subdivision 4, is amended to read:

Subd. 4. Affordable and life-cycle housing requirement. ~~In 1998, and thereafter,~~ (a) A municipality that does not spend 85 percent of its affordable and life-cycle housing opportunities amount to create affordable and life-cycle housing opportunities in the previous calendar year must do one of the following with the affordable and life-cycle housing opportunities amount for the previous year as determined under subdivision ~~3 or~~ 3a~~, as applicable~~:

(1) distribute it to the local housing incentives account; or

(2) distribute it to the housing and redevelopment authority of the city or county in which the municipality is located to create affordable and life-cycle housing opportunities in the municipality.

(b) A municipality may enter into agreements with adjacent municipalities to cooperatively provide affordable and life-cycle housing. The housing may be provided in any of the cooperating municipalities, but must meet the combined housing goals of each participating municipality.

Sec. 9. Minnesota Statutes 2012, section 473.254, subdivision 5, is amended to read:

Subd. 5. Sources of funds. (a) The council shall credit to the local housing incentives account any revenues derived from municipalities under subdivision 4, paragraph ~~(b)~~ (a), clause (1).

(b) The council shall credit $1,000,000 of the proceeds of solid waste bonds issued by the council under Minnesota Statutes, section 473.831, before its repeal, to the local housing incentives account in the metropolitan livable communities fund. In 1998 and each year thereafter, The council shall annually credit $1,000,000 of the revenues generated by the levy authorized in section 473.249 to the local housing incentives account.

(c) ~~In 1997, and each year thereafter,~~ The council shall annually transfer $500,000 from the livable communities demonstration account to the local housing incentives account.

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Sec. 10. Minnesota Statutes 2012, section 473.315, subdivision 1, is amended to read:

Subdivision 1. To metro local governments. The Metropolitan Council with the advice of the commission may make grants, from any funds available to it for recreation open space purposes, to any ~~municipality, park district or county located wholly or partially within the metropolitan area~~ implementing agency, as defined in section 473.351, to cover the cost, or any portion of the cost, of acquiring or developing regional recreation open space in accordance with the policy plan; and all such agencies may enter into contracts for this purpose or rights or interests therein. The cost of acquisition shall include any payments required for relocation pursuant to sections 117.50 to 117.56.

Sec. 11. Minnesota Statutes 2012, section 473.375, subdivision 11, is amended to read:

Subd. 11. Ride sharing. The council shall administer a ride-sharing program in the metropolitan area, except for the statewide vanpool leasing program conducted by the commissioner of transportation and shall cooperate with the commissioner in the conduct of ride-sharing activities in areas where the commissioner's programs and the council's program overlap. ~~The council shall establish a rideshare advisory committee to advise it in carrying out the program.~~ The council may contract for services in operating the program.

Sec. 12. Minnesota Statutes 2012, section 473.39, subdivision 1e, is amended to read:

Subd. 1e. Obligations; additional authority. In addition to the authority in subdivisions 1a, 1b, 1c, and 1d, the council may issue certificates of indebtedness, bonds, or other obligations under this section in an amount not exceeding $32,500,000, which may be used for capital expenditures as prescribed in the council's transit capital improvement program and for related costs, including the costs of issuance and sale of the obligations.

The Metropolitan Council, the city of St. Paul, and the Minnesota Department of Transportation shall jointly assess the feasibility of locating a bus storage facility near Mississippi and Cayuga Street and I-35E in St. Paul. If the metropolitan council determines feasibility, the first priority for siting must be at that location.

Sec. 13. Minnesota Statutes 2012, section 473.391, subdivision 1, is amended to read:

Subdivision 1. Contracts. The council may contract with other operators or local governments for route planning and scheduling services in any configuration of new or reconfiguration of existing transit services and routes, including route planning and scheduling necessary for the test marketing program, the service bidding program, and the interstate highway described generally as Legislative Routes Nos. 10 and 107 between I-494 and the Hawthorne interchange in the city of Minneapolis, commonly known as I-394.

Sec. 14. Minnesota Statutes 2012, section 473.405, subdivision 5, is amended to read:

Subd. 5. Acquisition of transit systems. The council may acquire by purchase, lease, gift, or condemnation proceedings any existing public transit system or any part thereof, including all or any part of the plant, equipment, shares of stock, property, real, personal, or mixed, rights in property, reserve funds, special funds, franchises, licenses, patents, permits and papers, documents and records belonging to any operator of a public transit system within the metropolitan area, and may in connection therewith assume any or all liabilities of any operator of a public transit system. The council may take control of and operate a system immediately following the filing and approval of the initial petition for condemnation, if the council, in its discretion, determines this to be necessary, and may take possession of all right, title and other powers of ownership in all properties and facilities described in the petition. Control must be taken by resolution which is effective upon service of a copy on the condemnee and the filing of the resolution in the condemnation action. In the determination of the fair value of the existing public transit system, there must not be included any value attributable to expenditures for improvements made by the former Metropolitan Transit Commission or council.

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The council may continue or terminate within three months of acquisition any advertising contract in existence by and between any advertiser and a transit system that the council has acquired. If the council determines to terminate the advertising contract, it shall acquire all of the advertiser's rights under the contract by purchase or eminent domain proceedings as provided by law.

Sec. 15. Minnesota Statutes 2012, section 473.42, is amended to read:

473.42 EMPLOYER CONTRIBUTIONS FOR CERTAIN EMPLOYEES.

Notwithstanding any contrary provisions of section 352.029, the council shall make the employer contributions required pursuant to section 352.04, subdivision 3, for any employee who was on authorized leave of absence from the transit operating division of the former Metropolitan Transit Commission who is employed by the labor organization which is the exclusive bargaining agent representing Metro Transit Division employees of the ~~Office of Transit Operations~~ council and who is covered by the Minnesota State Retirement System in addition to all other employer contributions the council is required to make.

Sec. 16. Minnesota Statutes 2012, section 473.504, subdivision 5, is amended to read:

Subd. 5. Gifts, grants, loans. The council may accept gifts, may apply for and accept grants or loans of money or other property from the United States, the state, or any person for any of its purposes~~, including any grant available under the federal Water Pollution Act amendments of 1972,~~ whether for construction, research, or pilot project implementation, may enter into any agreement required in connection therewith, and may hold, use, and dispose of such money or property in accordance with the terms of the gift, grant, loan, or agreement relating thereto. The council has all powers necessary to comply with the federal Water Pollution Control Act amendments of 1972 and any grant offered to it thereunder including, but not limited to, the power to enter into such contracts with, or to impose such charges upon, persons using the metropolitan disposal system as it shall determine to be necessary for the recovery of treatment works and interceptor costs paid with federal grant funds. Insofar as possible these costs shall be recovered by local government units on behalf of the council.

Sec. 17. Minnesota Statutes 2012, section 473.504, subdivision 11, is amended to read:

Subd. 11. Surplus property. The council may sell or otherwise dispose of any real or personal property acquired by it which is no longer required for accomplishment of its purposes. Such property may be sold in the manner provided by section 469.065, insofar as practical. The council may give such notice of sale as it shall deem appropriate. When the council determines that any property or any interceptor or treatment works or any part thereof which has been acquired from a local government unit without compensation is no longer required, but is required as a local facility by the government unit from which it was acquired, the council may by resolution transfer it to such government unit.

Sec. 18. Minnesota Statutes 2012, section 473.858, subdivision 1, is amended to read:

Subdivision 1. No conflicting zoning, fiscal device, official control. Within nine months following the receipt of a metropolitan system statement for an amendment to a metropolitan system plan and within three years following the receipt of a metropolitan system statement issued in conjunction with the decennial review required under section 473.864, subdivision 2, every local governmental unit shall have reviewed and, if necessary, amended its comprehensive plan in accordance with sections 462.355, 473.175, and 473.851 to 473.871 and the applicable planning statute and shall have submitted the plan to the Metropolitan Council for review pursuant to section 473.175. The provisions of sections 462.355, 473.175, and 473.851 to 473.871 shall supersede the provisions of the applicable planning statute wherever a conflict may exist. If the comprehensive municipal plan is in conflict with the zoning ordinance, the zoning ordinance shall be brought into conformance with the plan by local government units in conjunction with the review and, if necessary, amendment of its comprehensive plan required under section

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473.864, subdivision 2. ~~After August 1, 1995,~~ A local government unit shall not adopt any fiscal device or official control which is in conflict with its comprehensive plan, including any amendments to the plan, or which permits activity in conflict with metropolitan system plans, as defined by section 473.852, subdivision 8. The comprehensive plan shall provide guidelines for the timing and sequence of the adoption of official controls to ensure planned, orderly, and staged development and redevelopment consistent with the comprehensive plan. For purposes of this section, a fiscal device or official control shall not be considered to be in conflict with a local government unit's comprehensive plan or to permit an activity in conflict with metropolitan system plans if such fiscal device or official control is adopted to ensure the planned, orderly, and staged development of urbanization or redevelopment areas designated in the comprehensive plan pursuant to section 473.859, subdivision 5.

Sec. 19. Minnesota Statutes 2012, section 473.859, subdivision 6, is amended to read:

Subd. 6. Plan review. The council shall~~, by January 1, 1994,~~ prepare guidelines for the preparation of the water supply plans required in subdivision 3, clause (4). The plans must be submitted to the council ~~by January 1, 1996~~ as part of the decennial review required under section 473.864, subdivision 2. The council shall review the plans under section 473.175, subdivision 1, after submitting them to affected counties that have adopted groundwater plans under section 103B.255 for their review and comment.

Sec. 20. Minnesota Statutes 2012, section 473.861, subdivision 2, is amended to read:

Subd. 2. ~~By 1976~~ Plan preparation. ~~By December 31, 1976,~~ Each town within the counties of Anoka, Carver, Dakota, Scott and Washington, authorized to plan under sections 462.351 to 462.364, or under special law, shall by resolution determine whether it will prepare the comprehensive plan for its jurisdiction. Each such town also shall specify, pursuant to agreement with the county within which it is situated, any parts of its plan and official controls, if any, the preparation of which it delegates to the county.

Sec. 21. Minnesota Statutes 2012, section 473.862, subdivision 2, is amended to read:

Subd. 2. ~~Towns with no plan by 1976~~ Town planning. Each county other than Hennepin, Ramsey, Anoka, and Dakota shall prepare, with the participation and assistance of the town, the comprehensive plan for any town within the county which ~~fails by December 31, 1976, to take~~ has not taken action by resolution pursuant to section 473.861, subdivision 2 and shall prepare all or part of any plan delegated to it pursuant to section 473.861, subdivision 2.

Sec. 22. REPEALER.

Minnesota Statutes 2012, sections 473.123, subdivision 7; 473.13, subdivision 1c; 473.23; 473.241; 473.243; 473.244; 473.254, subdivision 3; 473.315, subdivision 2; 473.326; 473.333; 473.375, subdivision 9; 473.382; 473.388, subdivision 8; 473.392; 473.516, subdivision 5; 473.523, subdivision 2; 473.535; and 473.852, subdivision 11, and Minnesota Statutes 2013 Supplement, section 473.517, subdivision 9, are repealed.

Sec. 23. APPLICATION.

This article applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

ARTICLE 4

INFORMATION TECHNOLOGY

Section 1. Minnesota Statutes 2012, section 16E.01, as amended by Laws 2013, chapter 134, section 21, is amended to read:

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16E.01 OFFICE OF MN.IT SERVICES.

Subdivision 1. Creation; chief information officer. The Office of MN.IT Services, referred to in this chapter as the "office," is an agency in the executive branch headed by a commissioner, who also is the state chief information officer. The appointment of the commissioner is subject to the advice and consent of the senate under section 15.066.

Subd. 1a. Responsibilities. The office shall provide oversight, leadership, and direction for information and telecommunications technology policy and the management, delivery, accessibility, and security of information and telecommunications technology systems and services in Minnesota. The office shall manage strategic investments in information and telecommunications technology systems and services to encourage the development of a technically literate society, to ensure sufficient access to and efficient delivery of accessible government services, and to maximize benefits for the state government as an enterprise.

Subd. 2. Discretionary powers. The office may:

(1) enter into contracts for goods or services with public or private organizations and charge fees for services it provides;

(2) apply for, receive, and expend money from public agencies;

(3) apply for, accept, and disburse grants and other aids from the federal government and other public or private sources;

(4) enter into contracts with agencies of the federal government, local governmental units, the University of Minnesota and other educational institutions, and private persons and other nongovernmental organizations as necessary to perform its statutory duties;

~~(5) appoint committees and task forces of not more than two years' duration to assist the office in carrying out its duties;~~

~~(6)~~ (5) sponsor and conduct conferences and studies, collect and disseminate information, and issue reports relating to information and communications technology issues;

~~(7) participate in the activities of standards bodies and other appropriate conferences related to information and communications technology issues;~~

~~(8)~~ (6) review the technology infrastructure of regions of the state and cooperate with and make recommendations to the governor, legislature, state agencies, local governments, local technology development agencies, the federal government, private businesses, and individuals for the realization of information and communications technology infrastructure development potential;

~~(9)~~ (7) sponsor, support, and facilitate innovative and collaborative economic and community development and government services projects, including technology initiatives related to culture and the arts, with public and private organizations; and

~~(10)~~ (8) review and recommend alternative sourcing strategies for state information and communications systems.

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Subd. 3. Duties. (a) The office shall:

(1) manage the efficient and effective use of available federal, state, local, and public-private resources to develop statewide information and telecommunications technology systems and services and its infrastructure;

(2) approve state agency and intergovernmental information and telecommunications technology systems and services development efforts involving state or intergovernmental funding, including federal funding, provide information to the legislature regarding projects reviewed, and recommend projects for inclusion in the governor's budget under section 16A.11;

(3) ensure cooperation and collaboration among state and local governments in developing intergovernmental information and telecommunications technology systems and services, and define the structure and responsibilities of a representative governance structure;

(4) cooperate and collaborate with the legislative and judicial branches in the development of information and communications systems in those branches;

(5) continue the development of North Star, the state's official comprehensive online service and information initiative;

(6) promote and collaborate with the state's agencies in the state's transition to an effectively competitive telecommunications market;

(7) collaborate with entities carrying out education and lifelong learning initiatives to assist Minnesotans in developing technical literacy and obtaining access to ongoing learning resources;

(8) promote and coordinate public information access and network initiatives, consistent with chapter 13, to connect Minnesota's citizens and communities to each other, to their governments, and to the world;

(9) promote and coordinate electronic commerce initiatives to ensure that Minnesota businesses and citizens can successfully compete in the global economy;

(10) manage and promote the regular and periodic reinvestment in the information and telecommunications technology systems and services infrastructure so that state and local government agencies can effectively and efficiently serve their customers;

(11) facilitate the cooperative development of and ensure compliance with standards and policies for information and telecommunications technology systems and services, electronic data practices and privacy, and electronic commerce among international, national, state, and local public and private organizations;

(12) eliminate unnecessary duplication of existing information and telecommunications technology systems and services provided by ~~other public and private organizations while building on the existing governmental, educational, business, health care, and economic development infrastructures~~ state agencies;

(13) identify, sponsor, develop, and execute shared information and telecommunications technology projects and ongoing operations;

(14) ensure overall security of the state's information and technology systems and services; and

(15) manage and direct compliance with accessibility standards for informational technology, including hardware, software, Web sites, online forms, and online surveys.

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(b) The chief information officer, in consultation with the commissioner of management and budget, must determine when it is cost-effective for agencies to develop and use shared information and telecommunications technology systems and services for the delivery of electronic government services. The chief information officer may require agencies to use shared information and telecommunications technology systems and services. The chief information officer shall establish reimbursement rates in cooperation with the commissioner of management and budget to be billed to agencies and other governmental entities sufficient to cover the actual development, operating, maintenance, and administrative costs of the shared systems. The methodology for billing may include the use of interagency agreements, or other means as allowed by law.

(c) A state agency that has an information and telecommunications technology project with a total expected project cost of more than $1,000,000, whether funded as part of the biennial budget or by any other means, shall register with the office by submitting basic project startup documentation, as specified by the chief information officer in both format and content, before any project funding is requested or committed and before the project commences. State agency project leaders must demonstrate that the project will be properly managed, provide updates to the project documentation as changes are proposed, and regularly report on the current status of the project on a schedule agreed to with the chief information officer.

(d) The chief information officer shall monitor progress on any active information and telecommunications technology project with a total expected project cost of more than $5,000,000 and report on the performance of the project in comparison with the plans for the project in terms of time, scope, and budget. The chief information officer may conduct an independent project audit of the project. The audit analysis and evaluation of the projects subject to paragraph (c) must be presented to agency executive sponsors, the project governance bodies, and the chief information officer. All reports and responses must become part of the project record.

(e) For any active information and telecommunications technology project with a total expected project cost of more than $10,000,000, the state agency must perform an annual independent audit that conforms to published project audit principles promulgated by the office.

(f) The chief information officer shall report by January 15 of each year to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over the office regarding projects the office has reviewed under paragraph (a), clause ~~(2)~~ (13). The report must include the reasons for the determinations made in the review of each project and a description of its current status.

Sec. 2. Minnesota Statutes 2012, section 16E.03, subdivision 2, is amended to read:

Subd. 2. Chief information officer's responsibility. ~~The chief information officer shall coordinate the state's information and telecommunications technology systems and services to serve the needs of the state government.~~ The chief information officer shall:

(1) design a master plan for information and telecommunications technology systems and services in the state and its political subdivisions and shall report on the plan to the governor and legislature at the beginning of each regular session;

(2) coordinate, review, and approve all information and telecommunications technology projects and oversee the state's information and telecommunications technology systems and services;

(3) establish and enforce compliance with standards for information and telecommunications technology systems and services that are cost-effective and support open systems environments and that are compatible with state, national, and international standards, including accessibility standards;

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(4) maintain a library of systems and programs developed by the state and its political subdivisions for use by agencies of government;

(5) direct and manage the shared operations of the state's information and telecommunications technology systems and services; and

(6) establish and enforce standards and ensure acquisition of hardware and software necessary to protect data and systems in state agency networks connected to the Internet.

Sec. 3. Minnesota Statutes 2012, section 16E.035, is amended to read:

16E.035 TECHNOLOGY INVENTORY.

The chief information officer must prepare an a financial inventory of technology owned or leased by ~~state agencies~~ MN.IT Services. The inventory must include: (1) information on how the technology fits into the state's information technology architecture; and (2) a projected replacement schedule. The chief information officer must report the inventory to the legislative committees with primary jurisdiction over state technology issues by July 1 of each even-numbered year.

Sec. 4. Minnesota Statutes 2013 Supplement, section 16E.04, subdivision 2, is amended to read:

Subd. 2. Responsibilities. ~~(a) In addition to other activities prescribed by law, the office shall carry out the duties set out in this subdivision.~~

~~(b)~~ (a) The office shall develop and establish a state information architecture to ensure:

(1) that state agency ~~development and purchase of~~ information and communications systems, equipment, and services ~~is designed to ensure that individual agency information systems complement and~~ do not needlessly duplicate or conflict with the systems of other agencies; and

(2) enhanced public access to data can be provided consistent with standards developed under section 16E.05, subdivision 4.

When state agencies have need for the same or similar public data, the chief information officer, in coordination with the affected agencies, shall manage the most efficient and cost-effective method of producing and storing data for or sharing data between those agencies. The development of this information architecture must include the establishment of standards and guidelines to be followed by state agencies. The office shall ensure compliance with the architecture.

(c) The office shall, in cooperation with state agencies, plan and manage the development and improvement of information systems so that an individual information system reflects and supports the state agency's mission and the state's requirements and functions.

~~(d)~~ (b) The office shall review and approve agency requests for funding for the development or purchase of information systems equipment or software before the requests may be included in the governor's budget.

~~(e)~~ (c) The office shall review and approve agency requests for grant funding that have an information and technology component.

~~(f)~~ (d) The office shall review major purchases of information systems equipment to:

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(1) ensure that the equipment follows the standards and guidelines of the state information architecture;

(2) ensure the agency's proposed purchase reflects a cost-effective policy regarding volume purchasing; and

(3) ensure that the equipment is consistent with other systems in other state agencies so that data can be shared among agencies, unless the office determines that the agency purchasing the equipment has special needs justifying the inconsistency.

~~(g)~~ (e) The office shall review the operation of information systems by state agencies and ensure that these systems are operated efficiently and securely and continually meet the standards and guidelines established by the office. The standards and guidelines must emphasize uniformity that is cost-effective for the enterprise, that encourages information interchange, open systems environments, and portability of information whenever practicable and consistent with an agency's authority and chapter 13.

Sec. 5. Minnesota Statutes 2012, section 16E.05, subdivision 1, is amended to read:

Subdivision 1. Duties. The office, in consultation with interested persons, shall:

(1) coordinate statewide efforts by units of state and local government to plan for and develop a system for providing access to government services; and

~~(2) make recommendations to facilitate coordination and assistance of demonstration projects; and~~

~~(3)~~ (2) explore ways and means to improve citizen and business access to public services, including implementation of technological improvements.

Sec. 6. Minnesota Statutes 2013 Supplement, section 16E.18, subdivision 8, is amended to read:

Subd. 8. Exemption. The state information network is exempt from the five- and ten-year limitation on contracts set by sections ~~16C.03, subdivision 17;~~ 16C.05, subdivision 2, paragraph (b); 16C.06, subdivision 3b; 16C.08, subdivision 3, clause (5); and 16C.09, clause (6). A contract compliance review must be performed by the office on a five-year basis for any contract that has a total term greater than five years. The review must detail any compliance or performance issues on the part of the contractor.

Sec. 7. REPEALER.

Minnesota Statutes 2012, sections 16E.02, subdivisions 2 and 3; 16E.03, subdivision 8; and 16E.0475, are repealed the day following final enactment."

Delete the title and insert:

"A bill for an act relating to state government; repealing obsolete, redundant, and unnecessary laws administered by the Department of Employment and Economic Development, Metropolitan Council, and MN.IT; making conforming changes; amending Minnesota Statutes 2012, sections 15.991, subdivision 1; 16E.01, as amended; 16E.03, subdivision 2; 16E.035; 16E.05, subdivision 1; 116C.34, subdivision 3; 116D.04, subdivision 2a; 116L.02; 116L.05, subdivision 5; 116L.20, subdivision 2; 256J.49, subdivision 4; 256J.51, subdivision 2; 268.105, subdivision 7; 268.186; 473.123, subdivision 4; 473.125; 473.129, subdivisions 6, 12; 473.173, subdivision 2; 473.181, subdivision 2; 473.254, subdivisions 3a, 4, 5; 473.315, subdivision 1; 473.375, subdivision 11; 473.39, subdivision 1e; 473.391, subdivision 1; 473.405, subdivision 5; 473.42; 473.504, subdivisions 5, 11; 473.858, subdivision 1; 473.859, subdivision 6; 473.861, subdivision 2; 473.862, subdivision 2; Minnesota Statutes 2013 Supplement, sections 16E.04, subdivision 2; 16E.18, subdivision 8; repealing Minnesota Statutes 2012, sections

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16E.02, subdivisions 2, 3; 16E.03, subdivision 8; 16E.0475; 116C.22; 116C.23; 116C.24; 116C.25; 116C.26; 116C.261; 116C.27; 116C.28; 116C.29; 116C.30; 116C.31; 116C.32; 116C.33; 116J.037; 116J.422; 116J.68, subdivision 5; 116J.74, subdivision 7a; 116J.874, subdivisions 1, 2, 3, 4, 5; 116J.885; 116J.987; 116J.988; 116J.989; 116J.990, subdivisions 1, 2, 3, 4, 5, 6; 116L.06; 116L.10; 116L.11; 116L.12, subdivisions 1, 3, 4, 5, 6; 116L.13; 116L.14; 116L.15; 116L.361, subdivision 2; 116L.363; 116L.871; 116L.872; 473.123, subdivision 7; 473.13, subdivision 1c; 473.23; 473.241; 473.243; 473.244; 473.254, subdivision 3; 473.315, subdivision 2; 473.326; 473.333; 473.375, subdivision 9; 473.382; 473.388, subdivision 8; 473.392; 473.516, subdivision 5; 473.523, subdivision 2; 473.535; 473.852, subdivision 11; Minnesota Statutes 2013 Supplement, sections 116J.6581; 116J.70, subdivision 2a; 473.517, subdivision 9."

We request the adoption of this report and repassage of the bill.

House Conferees: Tim Mahoney, John Persell and Bob Gunther.

Senate Conferees: Dan Sparks, Terri E. Bonoff and Gary H. Dahms.

Mahoney moved that the report of the Conference Committee on H. F. No. 2948 be adopted and that the bill be repassed as amended by the Conference Committee.

A roll call was requested and properly seconded.

The question was taken on the Mahoney motion and the roll was called. There were 114 yeas and 12 nays as follows:

Those who voted in the affirmative were: