1.1.................... moves to amend H.F. No. 2976 as follows:
1.2Delete everything after the enacting clause and insert:

1.5	Section 1. APPROPRIATIONS.

1.6    The sums shown in the columns under "Appropriations" are added to or, if shown
1.7in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 1,
1.8or other law to the specified agencies. The appropriations are from the general fund, or
1.9another named fund, and are available for the fiscal years indicated for each purpose. The
1.10figures "2014" and "2015" used in this article mean that the appropriations listed under
1.11them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
1.12Appropriations for the fiscal year ending June 30, 2014, are effective the day following
1.13final enactment. Reductions may be taken in either fiscal year.

1.14				APPROPRIATIONS
1.15				Available for the Year
1.16				Ending June 30
1.17					2014		2015

1.18 1.19

Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

1.20

Subdivision 1.Total Appropriation

$

0

$

36,375,000

1.21	Appropriations by Fund
1.22		2014	2015
1.23	General	0	36,375,000

1.24The amounts that may be spent for each
1.25purpose are specified in the following
1.26subdivisions.

2.1 2.2

Subd. 2.Business and Community Development

$

0

$

34,800,000

2.3	Appropriations by Fund
2.4	General	0	34,800,000

2.5(a) $25,000,000 in fiscal year 2015 is for
2.6grants for the development of broadband
2.7infrastructure under Minnesota Statutes,
2.8section 116J.395, or to supplement revenues
2.9raised by bonds sold by local units of
2.10government for broadband infrastructure
2.11development. This is a onetime appropriation
2.12and is available until June 30, 2017.
2.13(b) $1,000,000 in fiscal year 2015 is from
2.14the general fund for a grant to the Southwest
2.15Initiative Foundation for business revolving
2.16loans or other lending programs. This is a
2.17onetime appropriation and is available until
2.18expended.
2.19(c) $1,000,000 in fiscal year 2015 is from the
2.20general fund for a grant to the West Central
2.21Initiative Foundation for business revolving
2.22loans or other lending programs. This is a
2.23onetime appropriation and is available until
2.24expended.
2.25(d) $1,000,000 in fiscal year 2015 is from
2.26the general fund for a grant to the Southern
2.27Minnesota Initiative Foundation for business
2.28revolving loans or other lending programs.
2.29This is a onetime appropriation and is
2.30available until expended.
2.31(e) $1,000,000 in fiscal year 2015 is from
2.32the general fund for a grant to the Northwest
2.33Minnesota Foundation for business revolving
2.34loans or other lending programs. This is a
3.1onetime appropriation and is available until
3.2expended.
3.3(f) $1,000,000 in fiscal year 2015 is from
3.4the general fund for a grant to the Initiative
3.5Foundation for business revolving loans or
3.6other lending programs. This is a onetime
3.7appropriation and is available until expended.
3.8(g) $1,000,000 in fiscal year 2015 is from
3.9the general fund for a grant to the Northland
3.10Foundation for business revolving loans or
3.11other lending programs. This is a onetime
3.12appropriation and is available until expended.
3.13(h) $500,000 in fiscal year 2015 is from the
3.14general fund for grants to small business
3.15development centers under Minnesota
3.16Statutes, section 116J.68. Funds made
3.17available under this section may be used to
3.18match funds under the federal small business
3.19development center (SBDC) program under
3.20United States Code, title 15, section 648, to
3.21provide consulting and technical services, or
3.22to build additional SBDC network capacity
3.23to serve entrepreneurs and small businesses.
3.24The commissioner shall allocate funds
3.25equally among the nine regional centers and
3.26lead center. This is a onetime appropriation
3.27and is available until expended.
3.28(i) $750,000 in fiscal year 2015 is from the
3.29general fund for the innovation voucher pilot
3.30program in article 2, section 8. This is a
3.31onetime appropriation and is available until
3.32expended. Of this amount, up to five percent
3.33may be used for administration. Vouchers
3.34require a 50 percent match by recipients.
4.1(j) $1,600,000 in fiscal year 2015 is
4.2from the general fund for the Minnesota
4.3Jobs Skills Partnership program under
4.4Minnesota Statutes, section 116L.02. Of this
4.5appropriation, $600,000 is onetime and is
4.6available until expended and $1,000,000 is
4.7added to the agency's base budget each year
4.8for fiscal years 2016 and 2017.
4.9(k) (1) $500,000 in fiscal year 2015 is from
4.10the general fund for grants to Women Venture
4.11and the Arrowhead Economic Opportunity
4.12Agency to facilitate and promote the creation
4.13and expansion of women-owned businesses.
4.14Funds available under this paragraph must
4.15be allocated equally among grant recipients.
4.16This is a onetime appropriation. Grant funds
4.17may be used only for the purposes under
4.18clause (2) except that up to ten percent of
4.19each grant award may be used by grant
4.20recipients for administrative costs.
4.21(2) Grants awarded under this section must be
4.22used for: entrepreneurial training, mentoring,
4.23and technical assistance for the startup
4.24or expansion of eligible women-owned
4.25businesses; development of networks of
4.26potential investors for eligible women-owned
4.27businesses; and development of recruitment
4.28programs for mid-career women with an
4.29interest in starting eligible women-owned
4.30businesses.
4.31(3) For the purposes of this paragraph
4.32"eligible women-owned business" means a
4.33business entity: that is at least 51 percent
4.34female owned or, in the case of a publicly
4.35traded business, at least 51 percent of the
5.1stock is female owned; whose management
5.2and daily operations are controlled by
5.3women; that is organized for profit; that is
5.4projected to generate at least $500,000 in
5.5annual revenue and create at least ten jobs,
5.6each of which pays an annual income equal
5.7to at least 200 percent of the federal poverty
5.8guideline adjusted for a family size of four;
5.9and that is in the field of construction;
5.10transportation; warehousing; agriculture;
5.11mining; finance; insurance; professional,
5.12technical, or scientific services; technology;
5.13or other industries with businesses meeting
5.14the revenue and job creation requirements
5.15of this clause.
5.16(4) If an appropriation for this purpose
5.17is enacted more than once in the 2014
5.18legislative session, the appropriation must be
5.19given effect only once.
5.20(l) $450,000 in fiscal year 2015 is from the
5.21general fund for the Office of Regenerative
5.22Medicine under sections 116J.886 to
5.23116J.8862.

5.24

Subd. 3.Workforce Development

$

0

$

1,575,000

5.25	Appropriations by Fund
5.26	General	0	1,575,000

5.27(a) $75,000 in fiscal year 2015 is from
5.28the general fund for workforce program
5.29outcome activities under Minnesota Statutes,
5.30section 116L.98. Up to five percent of
5.31this appropriation may be used by the
5.32commissioner for administration.
5.33(b) $500,000 in fiscal year 2015 is from
5.34the general fund to develop and implement
6.1the women and nontraditional jobs grant
6.2program under Minnesota Statutes, section
6.3116L.99. Funds available under this section
6.4must not supplant other funds available for
6.5the same purposes. If an appropriation for
6.6this purpose is enacted more than once in the
6.72014 legislative session, the appropriation
6.8must be given effect only once.
6.9(c) $1,000,000 in fiscal year 2015 is from the
6.10general fund for training rebates under article
6.112, section 10. This is a onetime appropriation
6.12and available until expended.

6.13 6.14

Sec. 3. DEPARTMENT OF LABOR AND INDUSTRY

6.15

Subdivision 1.Total Appropriation

$

0

$

250,000

6.16	Appropriations by Fund
6.17		2014	2015
6.18	General	0	250,000

6.19The amounts that may be spent for each
6.20purpose are specified in the following
6.21subdivisions.

6.22

Subd. 2.Labor Standards and Apprenticeship

$

0

$

250,000

6.23	Appropriations by Fund
6.24	General	0	250,000

6.25(a) $250,000 in fiscal year 2015 is from
6.26the general fund for the labor education
6.27advancement program under Minnesota
6.28Statutes, section 178.11, to educate,
6.29promote, assist, and support women to
6.30enter apprenticeship programs in high-wage,
6.31high-demand nontraditional occupations.
6.32Funds available under this section must
6.33not supplant other funds available for the
6.34same purpose. If an appropriation for this
7.1purpose is enacted more than once in the
7.22014 legislative session, the appropriation
7.3must be given effect only once.
7.4(b) The base for the department is increased
7.5by $70,000 each year for implementing and
7.6administering a minimum wage inflation
7.7adjustment. This adjustment is available only
7.8if a law is enacted in the 2014 legislative
7.9session that includes an automatic inflation
7.10adjustment to the state minimum wage. The
7.11availability of this appropriation is effective
7.12in the same fiscal year that the inflation
7.13adjustment is first effective.

7.14    Sec. 4. Laws 2013, chapter 85, article 1, section 3, as amended by Laws 2013, chapter
7.15144, section 2, Laws 2013, chapter 144, section 3, is amended to read:
7.16    Subd. 8. Competitive grant limitations. An organization that receives a direct
7.17appropriation under this section is not eligible to participate in competitive grant programs
7.18under this section during the fiscal years in which the direct appropriation is received.
7.19EFFECTIVE DATE.This section is effective the day following final enactment.

7.20    Sec. 5. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:

7.21 7.22

Subd. 2.Business and Community Development

53,642,000

45,407,000

7.23	Appropriations by Fund
7.24	General	52,942,000	44,707,000
7.25	Remediation	700,000	700,000

7.26(a)(1) $15,000,000 each year is for the
7.27Minnesota investment fund under Minnesota
7.28Statutes, section 116J.8731. Of this amount,
7.29the commissioner of employment and
7.30economic development may use up to three
7.31percent for administrative expenses. This
7.32appropriation is available until spent.
8.1(2) Of the amount available under clause
8.2(1), up to $3,000,000 in fiscal year 2014
8.3is for a loan to facilitate initial investment
8.4in the purchase and operation of a
8.5biopharmaceutical manufacturing facility.
8.6This loan is not subject to the loan limitations
8.7under Minnesota Statutes, section 116J.8731,
8.8and shall be forgiven by the commissioner
8.9of employment and economic development
8.10upon verification of meeting performance
8.11goals. Purchases related to and for the
8.12purposes of this loan award must be made
8.13between January 1, 2013, and June 30, 2015.
8.14The amount under this clause is available
8.15until expended.
8.16(3) Of the amount available under clause (1),
8.17up to $2,000,000 is available for subsequent
8.18investment in the biopharmaceutical facility
8.19project in clause (2). The amount under this
8.20clause is available until expended. Loan
8.21thresholds under clause (2) must be achieved
8.22and maintained to receive funding. Loans
8.23are not subject to the loan limitations under
8.24Minnesota Statutes, section 116J.8731, and
8.25shall be forgiven by the commissioner of
8.26employment and economic development
8.27upon verification of meeting performance
8.28goals. Purchases related to and for the
8.29purposes of loan awards must be made during
8.30the biennium the loan was received.
8.31(4) Notwithstanding any law to the contrary,
8.32the biopharmaceutical manufacturing facility
8.33in this paragraph shall be deemed eligible
8.34for the Minnesota job creation fund under
8.35Minnesota Statutes, section 116J.8748,
9.1by having at least $25,000,000 in capital
9.2investment and 190 retained employees.
9.3(5) For purposes of clauses (1) to (4),
9.4"biopharmaceutical" and "biologics" are
9.5interchangeable and mean medical drugs
9.6or medicinal preparations produced using
9.7technology that uses biological systems,
9.8living organisms, or derivatives of living
9.9organisms, to make or modify products or
9.10processes for specific use. The medical drugs
9.11or medicinal preparations include but are not
9.12limited to proteins, antibodies, nucleic acids,
9.13and vaccines.
9.14(b) $12,000,000 each year is for the
9.15Minnesota job creation fund under Minnesota
9.16Statutes, section 116J.8748. Of this amount,
9.17the commissioner of employment and
9.18economic development may use up to three
9.19percent for administrative expenses. This
9.20appropriation is available until spent. The
9.21base funding for this program shall be
9.22$12,500,000 each year in the fiscal year
9.232016-2017 biennium.
9.24(c) $1,272,000 each year is from the
9.25general fund for contaminated site cleanup
9.26and development grants under Minnesota
9.27Statutes, sections 116J.551 to 116J.558. This
9.28appropriation is available until expended.
9.29(d) $700,000 each year is from the
9.30remediation fund for contaminated site
9.31cleanup and development grants under
9.32Minnesota Statutes, sections 116J.551 to
9.33116J.558 . This appropriation is available
9.34until expended.
10.1(e) $1,425,000 the first year and $1,425,000
10.2the second year are from the general fund for
10.3the business development competitive grant
10.4program. Of this amount, up to five percent
10.5is for administration and monitoring of the
10.6business development competitive grant
10.7program. All grant awards shall be for two
10.8consecutive years. Grants shall be awarded
10.9in the first year.
10.10(f) $4,195,000 each year is from the general
10.11fund for the Minnesota job skills partnership
10.12program under Minnesota Statutes, sections
10.13116L.01 to 116L.17. If the appropriation for
10.14either year is insufficient, the appropriation
10.15for the other year is available. This
10.16appropriation is available until spent.
10.17(g) $6,000,000 the first year is from the
10.18general fund for the redevelopment program
10.19under Minnesota Statutes, section 116J.571.
10.20This is a onetime appropriation and is
10.21available until spent.
10.22(h) $12,000 each year is from the general
10.23fund for a grant to the Upper Minnesota Film
10.24Office.
10.25(i) $325,000 each year is from the general
10.26fund for the Minnesota Film and TV Board.
10.27The appropriation in each year is available
10.28only upon receipt by the board of $1 in
10.29matching contributions of money or in-kind
10.30contributions from nonstate sources for every
10.31$3 provided by this appropriation, except that
10.32each year up to $50,000 is available on July
10.331 even if the required matching contribution
10.34has not been received by that date.
11.1(j) $100,000 each year is for a grant to the
11.2Northern Lights International Music Festival.
11.3(k) $5,000,000 each year is from the general
11.4fund for a grant to the Minnesota Film
11.5and TV Board for the film production jobs
11.6program under Minnesota Statutes, section
11.7116U.26 . This appropriation is available
11.8until expended. The base funding for this
11.9program shall be $1,500,000 each year in the
11.10fiscal year 2016-2017 biennium.
11.11(l) $375,000 each year is from the general
11.12fund for a grant to Enterprise Minnesota, Inc.,
11.13for the small business growth acceleration
11.14program under Minnesota Statutes, section
11.15116O.115 . This is a onetime appropriation.
11.16(m) $160,000 each year is from the general
11.17fund for a grant to develop and implement
11.18a southern and southwestern Minnesota
11.19initiative foundation collaborative pilot
11.20project. Funds available under this paragraph
11.21must be used to support and develop
11.22entrepreneurs in diverse populations in
11.23southern and southwestern Minnesota. This
11.24is a onetime appropriation and is available
11.25until expended.
11.26(n) $100,000 each year is from the general
11.27fund for the Center for Rural Policy
11.28and Development. This is a onetime
11.29appropriation.
11.30(o) $250,000 each year is from the general
11.31fund for the Broadband Development Office.
11.32(p) $250,000 the first year is from the
11.33general fund for a onetime grant to the St.
11.34Paul Planning and Economic Development
12.1Department for neighborhood stabilization
12.2use in NSP3.
12.3(q) $1,235,000 the first year is from the
12.4general fund for a onetime grant to a city
12.5of the second class that is designated as an
12.6economically depressed area by the United
12.7States Department of Commerce. The
12.8appropriation is for economic development,
12.9redevelopment, and job creation programs
12.10and projects. This appropriation is available
12.11until expended.
12.12(r) $875,000 each year is from the general
12.13fund for the Host Community Economic
12.14Development Program established in
12.15Minnesota Statutes, section 116J.548.
12.16(s) $750,000 the first year is from the general
12.17fund for a onetime grant to the city of Morris
12.18for loans or grants to agricultural processing
12.19facilities for energy efficiency improvements.
12.20Funds available under this section shall be
12.21used to increase conservation and promote
12.22energy efficiency through retrofitting existing
12.23systems and installing new systems to
12.24recover waste heat from industrial processes
12.25and reuse energy. This appropriation is not
12.26available until the commissioner determines
12.27that at least $1,250,000 a match of $750,000
12.28 is committed to the project from nonpublic
12.29sources. This appropriation is available until
12.30expended.
12.31EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

12.32    Sec. 6. Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:

12.33

Subd. 6.Vocational Rehabilitation

27,691,000

27,691,000

13.1	Appropriations by Fund
13.2	General	20,861,000	20,861,000
13.3 13.4	Workforce Development	6,830,000	6,830,000

13.5(a) $10,800,000 each year is from the general
13.6fund for the state's vocational rehabilitation
13.7program under Minnesota Statutes, chapter
13.8268A.
13.9(b) $2,261,000 each year is from the general
13.10fund for grants to centers for independent
13.11living under Minnesota Statutes, section
13.12268A.11 .
13.13(c) $5,745,000 each year from the general
13.14fund and $6,830,000 each year from the
13.15workforce development fund is for extended
13.16employment services for persons with
13.17severe disabilities under Minnesota Statutes,
13.18section 268A.15. The allocation of extended
13.19employment funds to Courage Center from
13.20July 1, 2012 to June 30, 2013 must be
13.21contracted to Allina Health systems from
13.22July 1, 2013 to June 30, 2014 2015 to provide
13.23extended employment services in accordance
13.24with Minnesota Rules, parts 3300.2005 to
13.253300.2055.
13.26(d) $2,055,000 each year is from the general
13.27fund for grants to programs that provide
13.28employment support services to persons with
13.29mental illness under Minnesota Statutes,
13.30sections 268A.13 and 268A.14. The base
13.31appropriation for this program is $1,555,000
13.32each year in the fiscal year 2016-2017
13.33biennium.

13.34    Sec. 7. Laws 2013, chapter 85, article 1, section 5, is amended to read:

14.1

Sec. 5. EXPLORE MINNESOTA TOURISM

$

13,988,000

$

13,988,000

14.2To develop maximum private sector
14.3involvement in tourism, $500,000 in fiscal
14.4year 2014 and $500,000 in fiscal year 2015
14.5must be matched by Explore Minnesota
14.6Tourism from nonstate sources. Each $1 of
14.7state incentive must be matched with $6 of
14.8private sector funding. Cash match is defined
14.9as revenue to the state or documented cash
14.10expenditures directly expended to support
14.11Explore Minnesota Tourism programs. Up
14.12to one-half of the private sector contribution
14.13may be in-kind or soft match. The incentive
14.14in fiscal year 2014 shall be based on fiscal
14.15year 2013 private sector contributions. The
14.16incentive in fiscal year 2015 shall be based on
14.17fiscal year 2014 private sector contributions.
14.18This incentive is ongoing.
14.19Funding for the marketing grants is available
14.20either year of the biennium. Unexpended
14.21grant funds from the first year are available
14.22in the second year.
14.23(3) Unexpended money from the general
14.24fund appropriations made under this section
14.25does not cancel but must be placed in a
14.26special marketing account for use by Explore
14.27Minnesota Tourism for additional marketing
14.28activities.


14.31    Section 1. [116J.394] DEFINITIONS.
14.32(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
14.33the meanings given them.
15.1(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
15.2subdivision 1, paragraph (b).
15.3(c) "Broadband infrastructure" means networks of deployed telecommunications
15.4equipment and technologies necessary to provide high-speed Internet access and other
15.5advanced telecommunications services for end-users.
15.6(d) "Commissioner" means the commissioner of the Department of Employment and
15.7Economic Development.
15.8(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
15.9final leg connecting the broadband service provider's network to the end-use customer's
15.10on-premises telecommunications equipment.
15.11(f) "Middle-mile infrastructure" means broadband infrastructure that links a
15.12broadband service provider's core network infrastructure to last-mile infrastructure.
15.13(g) "Political subdivision" means any county, city, town, school district, special
15.14district or other political subdivision, or public corporation.
15.15(h) "Unserved areas" means areas of Minnesota in which households or businesses
15.16lack access to broadband service at speeds that meet the state broadband goals of ten to 20
15.17megabits per second download and five to ten megabits per second upload.

15.18    Sec. 2. [116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT
15.19GRANT PROGRAM.
15.20    Subdivision 1. Establishment. A grant program is established under the
15.21commissioner of employment and economic development to award grants to eligible
15.22applicants in order to promote the expansion of access to broadband service in unserved
15.23areas of the state.
15.24    Subd. 2. Eligible expenditures. Grants may be awarded under this section to fund
15.25the acquisition and installation of middle-mile and last-mile infrastructure in unserved
15.26areas that support broadband service scalable to speeds of at least 100 megabits per second
15.27download and 100 megabits per second upload.
15.28    Subd. 3. Eligible applicants. Eligible applicants for grants awarded under this
15.29section include:
15.30(1) an incorporated business or a partnership;
15.31(2) a political subdivision;
15.32(3) an Indian tribe;
15.33(4) a Minnesota nonprofit organization organized under chapter 317A;
15.34(5) a Minnesota cooperative association organized under chapter 308A or 308B; and
16.1(6) a Minnesota limited liability corporation organized under chapter 322B for the
16.2purpose of expanding broadband access.
16.3    Subd. 4. Application process. An eligible applicant must submit an application
16.4to the commissioner on a form prescribed by the commissioner. The commissioner shall
16.5develop administrative procedures governing the application and grant award process.
16.6The commissioner shall act as fiscal agent for the grant program and shall be responsible
16.7for receiving and reviewing grant applications and awarding grants under this section.
16.8    Subd. 5. Application contents. An applicant for a grant under this section shall
16.9provide the following information on the application:
16.10(1) the location of the project;
16.11(2) the kind and amount of broadband infrastructure to be purchased for the project;
16.12(3) evidence regarding the unserved nature of the community in which the project is
16.13to be located;
16.14(4) the number of end-users who will have access to broadband service as a result of
16.15the project, or whose broadband service will be upgraded as a result of the project;
16.16(5) significant community institutions that will benefit from the proposed project;
16.17(6) evidence of community support for the project;
16.18(7) the total cost of the project;
16.19(8) sources of funding or in-kind contributions for the project that will supplement
16.20any grant award; and
16.21(9) any additional information requested by the commissioner.
16.22    Subd. 6. Awarding grants. (a) In evaluating applications and awarding grants
16.23under this section, the commissioner shall give priority to applications that:
16.24(1) are constructed in areas identified by the director of the Office of Broadband
16.25Development as unserved;
16.26(2) offer new or substantially upgraded broadband service to important community
16.27institutions, including, but not limited to, libraries, educational institutions, public safety
16.28facilities, and healthcare facilities;
16.29(3) facilitate the use of telemedicine and electronic health records;
16.30(4) serve economically distressed areas of the state, as measured by indices of
16.31unemployment, poverty, or population loss that are significantly greater than the statewide
16.32average;
16.33(5) provide technical support and train residents, businesses, and institutions in the
16.34community served by the project to utilize broadband service;
16.35(6) include a component to actively promote the adoption of the newly available
16.36broadband services in the community;
17.1(7) provide evidence of strong support for the project from citizens, government,
17.2businesses, and institutions in the community;
17.3(8) provide access to broadband service to a greater number of unserved households
17.4and businesses; and
17.5(9) leverage greater amounts of funding for the project from other private and
17.6public sources.
17.7(b) The commissioner shall endeavor to award grants under this section to qualified
17.8applicants in all regions of the state.
17.9    Subd. 7. Limitations. No grant awarded under this section may fund more than
17.1050 percent of the total cost of a project.
17.11EFFECTIVE DATE.This section is effective the day following final enactment.

17.12    Sec. 3. [116J.396] BORDER-TO-BORDER BROADBAND FUND.
17.13    Subdivision 1. Account established. The border-to-border broadband fund account
17.14is established as a separate account in the state treasury. The commissioner shall credit
17.15to the account appropriations and transfers to the account. Earnings, such as interest,
17.16dividends, and any other earnings arising from assets of the account, must be credited to
17.17the account. Funds remaining in the account at the end of a fiscal year are not canceled
17.18to the general fund, but remain in the account until expended. The commissioner shall
17.19manage the account.
17.20    Subd. 2. Expenditures. Money in the account may be used only:
17.21(1) for grant awards made under section 116J.395, including reasonable expenses
17.22incurred by the Department of Employment and Economic Development to administer
17.23that section; or
17.24(2) to supplement revenues raised by bonds sold by local units of government for
17.25broadband infrastructure development.
17.26    Subd. 3. Restrictions. (a) Except as provided in paragraph (c), in any fiscal year, no
17.27more than one-third of the funds expended from the account established in this section
17.28shall be awarded to applicants located in areas whose household density exceeds 100
17.29households per square mile, as determined by the state demographer.
17.30(b) Except as provided in paragraph (c), in any fiscal year, no more than two-thirds
17.31of the funds expended from the account established in this section shall be awarded to
17.32applicants located in areas whose household density is less than100 households per square
17.33mile, as determined by the state demographer.
17.34(c) If applications are insufficient to exhaust all funds available under the restrictions
17.35imposed in paragraph (a) or (b), the funds unspent at the end of a fiscal year may be
18.1awarded to eligible applicants, as determined by the commissioner, irrespective of the
18.2population density of the area in which the applicant is located.
18.3    Subd. 4. Appropriation. Money in the account is appropriated to the commissioner
18.4for the purposes of subdivision 2.
18.5EFFECTIVE DATE.This section is effective the day following final enactment.

18.6    Sec. 4. [116J.886] CITATION; REGENERATIVE MEDICINE DEVELOPMENT
18.7ACT.
18.8Sections 116J.886 to 116J.8862 shall be known as the Regenerative Medicine
18.9Development Act to promote private sector investment in regenerative medicine to
18.10strengthen the state's economy, reduce the long-term costs related to treating debilitating
18.11illnesses, advance the regenerative medicine industry, and facilitate and expand clinical
18.12research opportunities in the State of Minnesota.

18.13    Sec. 5. [116J.8861] DEFINITIONS.
18.14    Subdivision 1. Definitions. For the purposes of sections 116J.886 to 116J.8862, the
18.15following terms have the meanings given them.
18.16    Subd. 2. Business development services. "Business development services"
18.17means business incubator services and services to facilitate access to existing publicly
18.18or privately financed grants, loans, or loan guarantees, and to support basic or applied
18.19research , development of therapies, and development of pharmacologies and treatments
18.20through preclinical or clinical trials.
18.21    Subd. 3. Commissioner. "Commissioner" means the commissioner of employment
18.22and economic development.
18.23    Subd. 4. Office. "Office" means the Office of Regenerative Medicine Development
18.24established under section 116J.8862.
18.25    Subd. 5. Regenerative medicine. "Regenerative medicine" means the process of
18.26creating or using living, functional tissue to augment, repair, replace or regenerate organs
18.27and tissue that have been damaged by disease, injury, aging or other biological processes
.18.28    Subd. 6. Regenerative medicine development project or project. "Regenerative
18.29medicine development project" or "project" means any research, product development,
18.30or commercial venture relating to basic, preclinical, or clinical work to produce a drug,
18.31biological or chemical material, compound, or medical device designed to augment,
18.32repair, replace, or regenerate organs and tissue that have been damaged by disease, injury,
18.33aging or other biological processes.

19.1    Sec. 6. [116J.8862] OFFICE OF REGENERATIVE MEDICINE
19.2DEVELOPMENT.
19.3    Subdivision 1. Established. The commissioner shall establish an Office of
19.4Regenerative Medicine Development to provide business development services and
19.5outreach to promote and expand the regenerative medicine industry in Minnesota.
19.6    Subd. 2. Consultation. The office must regularly consult with external stakeholders,
19.7and must conduct public meetings to gather input. For the purposes of this section external
19.8stakeholders must include:
19.9(1) the director of the Minnesota Stem Cell Institute at the University of Minnesota;
19.10(2) a representative of a Minnesota based trade association with the largest number
19.11of bioscience companies as its membership;
19.12(3) a representative of a Minnesota based trade association with the largest number
19.13of hospitals as its membership; and
19.14(4) a representative of the largest private entity in Minnesota conducting research
19.15into the benefits and uses of regenerative medicine.
19.16    Subd. 3. Outside funding. The commissioner, on behalf of the office, may accept
19.17appropriations, gifts, grants, and bequests.
19.18    Subd. 4. Public infrastructure grant program. The commissioner shall coordinate
19.19the services and activities of the office with the innovative business development public
19.20infrastructure program under section 116J.435.
19.21    Subd. 5. Fiscal planning . By December 15, 2014, the commissioner shall develop
19.22a long-term budget proposal for the office for fiscal years 2016 through 2024 to provide
19.23business development services to regenerative medicine development projects.
19.24    Subd. 6. Project applications; selection. (a) The office shall provide business
19.25development services to eligible regenerative medicine development projects approved by
19.26the commissioner. To be eligible for business development services under this section, a
19.27regenerative medicine development project must:
19.28(1) demonstrate that at least 70 percent of the project costs are paid from nonstate
19.29sources. The nonstate share may include federal funds and the prior purchase of scientific
19.30equipment and materials incidental to the project, provided the purchase is completed not
19.31more than two years prior to the approval of funding by the commissioner;
19.32(2) not duplicate or supplant any other research or other project already conducted
19.33by the federal government, or for which federal funding is available; and
19.34(3) demonstrate that project activities are carried out directly by the grant recipient.
19.35(b) The commissioner shall establish an application and process for approving
19.36projects. Project applications must include the following information:
20.1(i) evidence that the required match is available and committed;
20.2(ii) a detailed estimate, along with necessary supporting evidence, of the total cost
20.3of the project;
20.4(iii) an assessment of the potential to attract new or continue existing public and
20.5private research grant awards resulting from the project;
20.6(iv) a detailed risk analysis projecting the likelihood of clinical success resulting in
20.7revenues or royalty payments from the project;
20.8(v) an assessment of the likelihood for and potential costs savings for publicly
20.9funded health care and long-term care programs from the project as a result of reducing
20.10the incidence or lowering the treatment costs of debilitating illnesses and diseases over
20.11the next ten years;
20.12(vi) a timeline indicating the major milestones of research projects and their
20.13anticipated completion dates, including any previously completed similar research; and
20.14(vii) an estimate of any potential current and future employment opportunities
20.15within the state, stimulation of economic growth, and the possibility for advancing the
20.16development of commercially successful and affordable regenerative medicine products,
20.17processes, or services. The application requirements are not in priority order and the
20.18commissioner may weigh each item, depending upon the facts and circumstances, as
20.19the commissioner considers appropriate.
20.20    Subd. 7. Report. The commissioner, on behalf of the office, must report to the
20.21legislative chairs with jurisdiction over economic development by January 1 of each
20.22odd-numbered year on successful economic development projects implemented or
20.23initiated since their last report and on plans for the upcoming year.
20.24    Subd. 8. Sunset. The office established under this section expires on June 30, 2024.

20.25    Sec. 7. Minnesota Statutes 2012, section 116L.98, is amended to read:
20.26116L.98 WORKFORCE PROGRAM OUTCOMES.
20.27    Subdivision 1. Requirements. (a) The commissioner shall develop and implement a
20.28set of standard approaches for assessing the outcomes of uniform outcome measurement
20.29and reporting system for adult workforce programs under this chapter the jurisdiction of
20.30the commissioner. The outcomes assessed must include, but are not limited to, periodic
20.31comparisons of workforce program participants and nonparticipants.
20.32    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
20.33this subdivision have the meanings given.
21.1(b) "Credential" means an attestation of qualification or competence issued to an
21.2individual by a third party with the relevant authority or assumed competence to issue
21.3the credential.
21.4(c) "Exit" means to have not received service under a workforce program for 90
21.5consecutive days. The exit date is the last date of service.
21.6(d) "Net impact" means the use of matched control groups and regression analysis to
21.7estimate the impacts attributable to program participation net of other factors, including
21.8observable personal characteristics and economic conditions.
21.9(e) "Pre-enrollment" means the period of time before an individual was enrolled
21.10in a workforce program.
21.11    Subd. 3. Uniform outcome report card; reporting by commissioner. The
21.12commissioner shall also monitor the activities and outcomes of programs and services
21.13funded by legislative appropriations and administered by the department on a pass-through
21.14basis and develop a consistent and equitable method of assessing recipients for the costs
21.15of its monitoring activities. (a) By December 31 of each even-numbered year, the
21.16commissioner must report to the chairs and ranking minority members of the committees of
21.17the house of representatives and the senate having jurisdiction over economic development
21.18and workforce policy and finance the following information from the previous fiscal or
21.19calendar year, for each program subject to the requirements of subdivision 1:
21.20(1) the total number of participants;
21.21(2) the median pre-enrollment wages based on participant wages for the second
21.22through the fifth quarters immediately preceding the quarter of enrollment;
21.23(3) the total number of participants enrolled in occupational skills training;
21.24(4) the total number of participants enrolled in occupational skills training by industry;
21.25(5) the total number of participants that exited the program and the average
21.26enrollment duration of participants that have exited the program during the year;
21.27(6) the total number of exited participants who completed occupational skills training;
21.28(7) the total number of exited participants who attained a credential;
21.29(8) the total number of participants employed during four consecutive quarters
21.30immediately following the date of exit, by industry;
21.31(9) the median wages of participants employed during four consecutive quarters
21.32immediately following the date of exit;
21.33(10) the total number of participants employed during eight consecutive quarters
21.34immediately following the date of exit, by industry; and
21.35(11) the median wages of participants employed during eight consecutive quarters
21.36immediately following the date of exit.
22.1(b) The report to the legislature must contain participant information by education
22.2level, race and ethnicity, gender, and geography, and a comparison of exited participants
22.3who completed occupational skills training and those who did not.
22.4(c) The requirements of this section apply to programs administered directly by the
22.5commissioner or administered by other organizations under a grant made by the department.
22.6    Subd. 4. Data to commissioner; uniform report card. (a) A recipient of a
22.7grant or direct appropriation made by or through the department must report data to the
22.8commissioner by September 1 of each even-numbered year on each of the items in
22.9subdivision 3 for each program it administers. The data must be in a format prescribed by
22.10the commissioner.
22.11(b) Beginning November 1, 2014, the commissioner shall provide notice to grant
22.12applicants and recipients regarding the data collection and reporting requirements under
22.13this subdivision and must provide technical assistance to applicants and recipients to assist
22.14in complying with the requirements of this subdivision.
22.15    Subd. 5. Information. The information collected and reported under subdivisions 3
22.16and 4 shall be made available on the department's Web site.
22.17    Subd. 6. Limitations on future appropriations. (a) A program that is a recipient
22.18of public funds and subject to the requirements of this section as of May 1, 2014, is not
22.19eligible for additional state appropriations for any fiscal year beginning after June 30,
22.202015, unless all of the reporting requirements under subdivision 4 have been satisfied.
22.21(b) A program with an initial request for funds on or after the effective date of this
22.22section may be considered for receipt of public funds for the first two fiscal years only
22.23if a plan that demonstrates how the data collection and reporting requirements under
22.24subdivision 4 will be met has been submitted and approved by the commissioner. Any
22.25subsequent request for funds after an initial request is subject to the requirements of
22.26paragraph (a).
22.27    Subd. 7. Workforce program net impact study. (a) The commissioner, in
22.28partnership with a committee of the Governor's Workforce Development Council that
22.29oversees net impact analysis, shall by December 1, 2014, conduct a net impact study
22.30for adult workforce-related programs funded in whole or in part by the workforce
22.31development fund. The requirements of this section apply to programs administered
22.32directly by the commissioner or administered by other employment organizations under a
22.33grant made by the department. The net impact methodology must include:
22.34(1) standardized statistical methods for estimating the net impacts of workforce
22.35services on individual employment, earnings, and public benefits usage outcomes; and
23.1(2) standardized cost-benefit analyses for understanding the monetary impacts of
23.2workforce services from the participant and taxpayer points of view.
23.3(b) By January 15 of each odd-numbered year beginning in 2015, the commissioner,
23.4in partnership with a committee of the Governor's Workforce Development Council that
23.5oversees net impact analysis, must report to the chairs and the ranking minority members
23.6of the committees of the house of representatives and the senate having jurisdiction over
23.7economic development and workforce policy and finance, the following information for
23.8each program subject to this subdivision:
23.9(1) the net impact of workforce services on individual employment, earnings, and
23.10public benefits usage outcomes; and
23.11(2) cost-benefit analyses for understanding the monetary impacts of workforce
23.12services from the participant and taxpayer points of view.
23.13(c) By January 15, 2015, the commissioner, in partnership with the Governor's
23.14Workforce Development Council, must report to the chairs and ranking minority members
23.15of the committees of the house of representatives and the senate having jurisdiction over
23.16economic development and workforce policy and finance the results of the net impact
23.17pilot project already underway.
23.18    Subd. 8. Independent evaluation. By February 1 of each odd-numbered year, the
23.19commissioner of administration, in consultation with the commissioner of employment
23.20and economic development, shall contract with an independent entity qualified to conduct
23.21labor market analyses to audit information included in the report required under this
23.22section. The audit must include analysis of the validity of the statistical methods for
23.23estimating net impact analysis and cost benefit analysis, and an analysis of net impact
23.24and cost benefit results. The commissioner shall report the results of the analysis to the
23.25chairs and ranking minority members of the committees of the house of representatives
23.26and the senate having jurisdiction over economic development and workforce policy and
23.27finance issues when it is completed. The audit must be made available to the public in an
23.28electronic format on the department of employment and economic development's Web site.

23.29    Sec. 8. INNOVATION VOUCHER PILOT PROGRAM.
23.30(a) The commissioner of employment and economic development shall develop and
23.31implement an innovation voucher pilot program to provide financing to small businesses
23.32to purchase technical assistance and services from public higher education institutions
23.33and nonprofit entities to assist in the development or commercialization of innovative
23.34new products or services.
24.1(b) Funds available under this section may be used by a small business to access
24.2technical assistance and other services including, but not limited to: research, technical
24.3development, product development, commercialization, technology exploration, and
24.4improved business practices.
24.5(c) To be eligible for a voucher under this section, a business must enter into an
24.6agreement with the commissioner that includes:
24.7(1) a list of the technical assistance and services the business proposes to purchase
24.8and from whom the services will be purchased; and
24.9(2) deliverable outcomes in one of the following areas:
24.10(i) research and development;
24.11(ii) business model development;
24.12(iii) market feasibility;
24.13(iv) operations; or
24.14(v) other outcomes determined by the commissioner.
24.15As part of the agreement, the commissioner must approve the technical assistance and
24.16services to be purchased, and the entities from which the services or technical assistance
24.17will be purchased.
24.18(d) For the purposes of this section, a small business means a business with fewer
24.19than 25 employees.
24.20(e) A voucher award must not exceed $25,000 per business.
24.21(f) The commissioner must report to the chairs of the committees of the house of
24.22representatives and senate having jurisdiction over economic development and workforce
24.23policy and finance issues by December 1, 2014, on the vouchers awarded to date.

24.24    Sec. 9. COMMISSIONERS ACCOUNTABILITY PLAN.
24.25By December 1, 2014, the commissioner shall report to the committees of the
24.26house of representatives and senate having jurisdiction over workforce development
24.27and economic development policy and finance issues, on the department's plan, and any
24.28request for funding, to design and implement a performance accountability outcome
24.29measurement system for programs under chapter 116J.

24.30    Sec. 10. NEW EMPLOYEE TRAINING PARTNERSHIP.
24.31    Subdivision 1. Training partnership initiative. (a) The commissioner of
24.32employment and economic development shall develop and implement a new employee
24.33training partnership to provide rebates to employers that hire and train new employees. To
24.34be eligible for a rebate under this section, an employer must enter into an agreement with
25.1the commissioner under subdivision 3. The commissioner shall give priority to employers
25.2in counties in which the county unemployment rate over the preceding 12 months exceeded
25.3the state average unemployment rate by 1.5 percentage points over the same period.
25.4(b) Before entering into an agreement with an employer, the commissioner must
25.5investigate the applicability of other training programs and determine whether the job skills
25.6partnership grant program is a more suitable source of funding for the training and whether
25.7the training can be completed in a timely manner that meets the needs of the employer.
25.8    The investigation must be completed within 15 days or as soon as reasonably possible
25.9after the employer has provided the commissioner with all the requested information.
25.10(c) The commissioner shall prescribe the form of all applications for rebates, the
25.11timing for submission of applications, the execution of agreements with the commissioner,
25.12and the payment of rebates.
25.13    Subd. 2. Definitions. For the purposes of this section, the following terms have
25.14the meanings given.
25.15(a) "Agreement" means the agreement between an employer and the commissioner
25.16for a training partnership.
25.17(b) "Commissioner" means the commissioner of employment and economic
25.18development.
25.19(c) "Cost of training" means all necessary and incidental costs of providing training
25.20services. The term does not include the cost of purchasing equipment to be owned or used
25.21by the training or educational institution or service.
25.22(d) "Disability" has the meaning given under United States Code, title 42, chapter 126.
25.23(e) "Employee" means an individual employed in a new job.
25.24(f) "Employer" means an individual, corporation, partnership, limited liability
25.25company, or association providing new jobs and entering into an agreement.
25.26(g) "Long-term unemployed" has the meaning given by the United States Department
25.27of Labor, Bureau of Labor Standards.
25.28(h) "New job" means a job:
25.29(1) that is provided by a new or expanding business at a location outside of the
25.30metropolitan area, as defined in section 473.121, subdivision 2;
25.31(2) that provides 32 hours of work per week for a minimum of nine months of the
25.32year and is permanent with no planned termination date; and
25.33(3) for which the employee hired was not (i) formerly employed by the employer
25.34in the state or (ii) a replacement worker, including a worker newly hired as a result of a
25.35labor dispute.
26.1(i) "Rebate" means a payment by the commissioner to an employer for the cost
26.2of training an employee. Rebates are limited to a maximum of $3,000 per employee,
26.3except that the maximum rebate for the training costs of an employee with a disability, an
26.4employee who was considered long-term unemployed, or an employee who is a veteran,
26.5is $4,000 per employee.
26.6(j) "Training partnership" means a training services and rebate arrangement that is
26.7the subject of an agreement entered into between the commissioner and an employer.
26.8(k) "Training services" means training and education specifically directed to new
26.9jobs, determined to be appropriate by the commissioner, including in-house training;
26.10services provided by institutions of higher education, or federal, state, or local agencies; or
26.11private training or educational services. Administrative services, assessment, and testing
26.12costs may be considered as training services.
26.13    Subd. 3. Agreements; required terms. (a) To be eligible for a rebate under this
26.14section, an employer must enter into an agreement with the commissioner that:
26.15(1) identifies the training costs to be incurred by the employer, who will provide the
26.16training services, and the amount of the rebate to be provided by the commissioner;
26.17(2) provides for a guarantee by the employer of payment for all training costs; and
26.18(3) provides that each employee must be paid wages of at least $13 per hour, plus
26.19benefits, except that during a period not to exceed three weeks, during which an employee
26.20is receiving training services, the employee may be paid wages of at least $11 per hour,
26.21plus benefits.
26.22    Subd. 4. Verification prior to payment of rebate. The commissioner shall not
26.23pay any rebate until all training costs and payment of the training costs by the employer
26.24have been verified.
26.25    Subd. 5. Allocation. (a) The commissioner shall allocate payment for rebates
26.26to employers only after receipt of a complete application for the rebate, including the
26.27provision of all of the required information and the execution of an agreement and
26.28approval by the commissioner. In approving applications, the commissioner must give
26.29priority to employers in counties with high seasonally adjusted unemployment rates.
26.30(b) The commissioner may utilize existing on-the-job training rebate or payment
26.31processes or procedures.
26.32    Subd. 6. Report. (a) By February 1, 2015, the commissioner shall report to the
26.33committees of the house of representatives and the senate having jurisdiction over economic
26.34development policy and finance. The report must include the following information:
27.1(1) the total amount of rebates issued;
27.2(2) the number of individuals receiving training, including disaggregate data
27.3for employees who are individuals with disabilities, veterans, or who were long-term
27.4unemployed;
27.5(3) an analysis of the effectiveness of the rebate in encouraging employment; and
27.6(4) any other information the commissioner determines appropriate.


27.9    Section 1. Minnesota Statutes 2013 Supplement, section 176.011, subdivision 15,
27.10is amended to read:
27.11    Subd. 15. Occupational disease. (a) "Occupational disease" means a mental
27.12impairment as defined in paragraph (d) or physical disease arising out of and in the
27.13course of employment peculiar to the occupation in which the employee is engaged
27.14and due to causes in excess of the hazards ordinary of employment and shall include
27.15undulant fever. Physical stimulus resulting in mental injury and mental stimulus resulting
27.16in physical injury shall remain compensable. Mental impairment is not considered a
27.17disease if it results from a disciplinary action, work evaluation, job transfer, layoff,
27.18demotion, promotion, termination, retirement, or similar action taken in good faith by the
27.19employer. Ordinary diseases of life to which the general public is equally exposed outside
27.20of employment are not compensable, except where the diseases follow as an incident of an
27.21occupational disease, or where the exposure peculiar to the occupation makes the disease
27.22an occupational disease hazard. A disease arises out of the employment only if there be a
27.23direct causal connection between the conditions under which the work is performed and
27.24if the occupational disease follows as a natural incident of the work as a result of the
27.25exposure occasioned by the nature of the employment. An employer is not liable for
27.26compensation for any occupational disease which cannot be traced to the employment as a
27.27direct and proximate cause and is not recognized as a hazard characteristic of and peculiar
27.28to the trade, occupation, process, or employment or which results from a hazard to which
27.29the worker would have been equally exposed outside of the employment.
27.30(b) If immediately preceding the date of disablement or death, an employee was
27.31employed on active duty with an organized fire or police department of any municipality,
27.32as a member of the Minnesota State Patrol, conservation officer service, state crime bureau,
27.33as a forest officer by the Department of Natural Resources, state correctional officer, or
27.34sheriff or full-time deputy sheriff of any county, and the disease is that of myocarditis,
27.35coronary sclerosis, pneumonia or its sequel, and at the time of employment such employee
28.1was given a thorough physical examination by a licensed doctor of medicine, and a written
28.2report thereof has been made and filed with such organized fire or police department, with
28.3the Minnesota State Patrol, conservation officer service, state crime bureau, Department
28.4of Natural Resources, Department of Corrections, or sheriff's department of any county,
28.5which examination and report negatived any evidence of myocarditis, coronary sclerosis,
28.6pneumonia or its sequel, the disease is presumptively an occupational disease and shall
28.7be presumed to have been due to the nature of employment. If immediately preceding
28.8the date of disablement or death, any individual who by nature of their position provides
28.9emergency medical care, or an employee who was employed as a licensed police officer
28.10under section 626.84, subdivision 1; firefighter; paramedic; state correctional officer;
28.11emergency medical technician; or licensed nurse providing emergency medical care; and
28.12who contracts an infectious or communicable disease to which the employee was exposed
28.13in the course of employment outside of a hospital, then the disease is presumptively an
28.14occupational disease and shall be presumed to have been due to the nature of employment
28.15and the presumption may be rebutted by substantial factors brought by the employer
28.16or insurer. Any substantial factors which shall be used to rebut this presumption and
28.17which are known to the employer or insurer at the time of the denial of liability shall be
28.18communicated to the employee on the denial of liability.
28.19(c) A firefighter on active duty with an organized fire department who is unable
28.20to perform duties in the department by reason of a disabling cancer of a type caused
28.21by exposure to heat, radiation, or a known or suspected carcinogen, as defined by the
28.22International Agency for Research on Cancer, and the carcinogen is reasonably linked to
28.23the disabling cancer, is presumed to have an occupational disease under paragraph (a). If a
28.24firefighter who enters the service after August 1, 1988, is examined by a physician prior to
28.25being hired and the examination discloses the existence of a cancer of a type described
28.26in this paragraph, the firefighter is not entitled to the presumption unless a subsequent
28.27medical determination is made that the firefighter no longer has the cancer.
28.28(d) For the purposes of this chapter, "mental impairment" means a diagnosis of
28.29post-traumatic stress disorder by a licensed psychiatrist or psychologist. For the purposes
28.30of this chapter, "post-traumatic stress disorder" means the condition as described in
28.31the most recently published edition of the Diagnostic and Statistical Manual of Mental
28.32Disorders by the American Psychiatric Association. For purposes of section 79.34,
28.33subdivision 2, one or more compensable mental impairment claims arising out of a single
28.34event or occurrence shall constitute a single loss occurrence.
28.35EFFECTIVE DATE.This section is effective for employees with dates of injury on
28.36or after October 1, 2013.

29.1    Sec. 2. Minnesota Statutes 2012, section 176.129, subdivision 2a, is amended to read:
29.2    Subd. 2a. Payments to fund. (a) On or before April 1 of each year, all self-insured
29.3employers shall report paid indemnity losses and insurers shall report paid indemnity
29.4losses and standard workers' compensation premium in the form and manner prescribed
29.5by the commissioner. On June 1 of each year, the commissioner shall determine the
29.6total amount needed to pay all estimated liabilities, including administrative expenses,
29.7of the special compensation fund for the following fiscal year. The commissioner shall
29.8assess this amount against self-insured employers and insurers. The total amount of the
29.9assessment must be allocated between self-insured employers and insured employers
29.10based on paid indemnity losses for the preceding calendar year, as provided by paragraph
29.11(b). The method of assessing self-insured employers must be based on paid indemnity
29.12losses, as provided by paragraph (c). The method of assessing insured employers is based
29.13on standard workers' compensation premium, as provided by paragraph (c). Each insurer
29.14shall collect the assessment through a policyholder surcharge as provided by paragraph
29.15(d). On or before June 30 of each year, the commissioner shall provide notification to each
29.16self-insured employer and insurer of amounts due. Each self-insured employer and each
29.17insurer shall pay at least one-half of the amount due to the commissioner for deposit into
29.18the special compensation fund on or before August 1 of the same calendar year. The
29.19remaining balance is due on February 1 of the following calendar year. Each insurer must
29.20pay the full amount due as stated in the commissioner's notification, regardless of the
29.21amount the insurer actually collects from the premium policyholder surcharge.
29.22(b) The portion of the total assessment that is allocated to self-insured employers
29.23is the proportion that paid indemnity losses made by all self-insured employers bore to
29.24the total paid indemnity losses made by all self-insured employers and insured employers
29.25during the preceding calendar year. The portion of the total assessment that is allocated
29.26to insured employers is the proportion that paid indemnity losses made on behalf of
29.27all insured employers bore to the total paid indemnity losses made by all self-insured
29.28employers and insured employers during the preceding calendar year.
29.29(c) The portion of the total assessment allocated to self-insured employers that
29.30shall be paid by each self-insured employer must be based upon paid indemnity losses
29.31made by that self-insured employer during the preceding calendar year. The portion of
29.32the total assessment allocated to insured employers that is paid by each insurer must be
29.33based on standard workers' compensation premium earned in the state by that insurer
29.34during the preceding current calendar year. If the current calendar year earned standard
29.35workers' compensation premium is not available, the commissioner shall estimate the
29.36portion of the total assessment allocated to insured employers that is paid by each insurer
30.1using the earned standard workers' compensation premium from the preceding calendar
30.2year. The commissioner shall then perform a reconciliation and final determination of
30.3the portion of the total assessment to be paid by each insurer when the earned standard
30.4workers' compensation premium for the current calendar year is calculable, but the final
30.5determination must not be made after December 1 of the following calendar year. An
30.6employer who has ceased to be self-insured shall continue to be liable for assessments
30.7based on paid indemnity losses arising out of injuries occurring during periods when the
30.8employer was self-insured, unless the self-insured employer has purchased a replacement
30.9policy covering those losses. An insurer who assumes a self-insured employer's obligation
30.10under a replacement policy shall separately report and pay assessments based on indemnity
30.11losses paid by the insurer under the replacement policy. The replacement policy may
30.12provide for reimbursement of the assessment to the insurer by the self-insured employer.
30.13(d) Insurers shall collect the assessments from their insured employers through
30.14a surcharge based on standard workers' compensation premium for each employer.
30.15Assessments when collected do not constitute an element of loss for the purpose of
30.16establishing rates for workers' compensation insurance but for the purpose of collection
30.17are treated as separate costs imposed on insured employers. The premium policyholder
30.18 surcharge is included in the definition of gross premium as defined in section 297I.01 only
30.19for premium tax purposes. An insurer may cancel a policy for nonpayment of the premium
30.20 policyholder surcharge. The premium policyholder surcharge is excluded from the
30.21definition of premium for all other purposes, except as otherwise provided in this paragraph.
30.22(e) For purposes of this section, the workers' compensation assigned risk plan
30.23established under section 79.252, shall report and pay assessments on standard workers'
30.24compensation premium in the same manner as an insurer.
30.25EFFECTIVE DATE.This section is effective for assessments due under Minnesota
30.26Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February
30.271, 2014, and for the first reconciliation and final determination under Minnesota Statutes,
30.28section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.

30.29    Sec. 3. Minnesota Statutes 2012, section 176.129, subdivision 7, is amended to read:
30.30    Subd. 7. Refunds. In case deposit is or has been made pursuant to subdivision
30.312a by mistake or inadvertence, or under circumstances that justice requires a refund,
30.32the commissioner of management and budget is authorized to refund the deposit under
30.33order of the commissioner, a compensation judge, the Workers' Compensation Court of
30.34Appeals, or a district court. Claims for refunds must be submitted to the commissioner
30.35within three years of the assessment due date of reconciliation and final determination
31.1under subdivision 2a. There is appropriated to the commissioner from the fund an amount
31.2sufficient to make the refund and payment.
31.3EFFECTIVE DATE.This section is effective for assessments due under Minnesota
31.4Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February
31.51, 2014, and for the first reconciliation and final determination under Minnesota Statutes,
31.6section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.

31.7    Sec. 4. Minnesota Statutes 2012, section 176.135, subdivision 7, is amended to read:
31.8    Subd. 7. Medical bills and records. (a) Health care providers shall submit to the
31.9insurer an itemized statement of charges in the standard electronic transaction format when
31.10required by section 62J.536 or, if there is no prescribed standard electronic transaction
31.11format, on a billing form prescribed by the commissioner. Health care providers shall also
31.12submit copies of medical records or reports that substantiate the nature of the charge and its
31.13relationship to the work injury. Health care providers may charge for copies of any records
31.14or reports that are in existence and directly relate to the items for which payment is sought
31.15under this chapter. The commissioner shall adopt a schedule of reasonable charges by rule.
31.16A health care provider shall not collect, attempt to collect, refer a bill for collection,
31.17or commence an action for collection against the employee, employer, or any other party
31.18until the information required by this section has been furnished.
31.19A United States government facility rendering health care services to veterans is not
31.20subject to the uniform billing form requirements of this subdivision.
31.21(b) For medical services provided under this section on or after October 1,
31.222014, the codes from the International Classification of Diseases, Tenth Edition,
31.23Clinical Modification/Procedure Coding System (ICD-10), must be used to report
31.24medical diagnoses and hospital inpatient procedures. The commissioner must replace
31.25the codes from the International Classification of Diseases, Ninth Edition, Clinical
31.26Modification/Procedure Coding System (ICD-9), with equivalent ICD-10 codes wherever
31.27the ICD-9 codes appear in rules adopted under this chapter. The commissioner must use
31.28the General Equivalence Mappings established by the Centers for Medicare and Medicaid
31.29Services to replace the ICD-9 diagnostic codes with ICD-10 codes in the rules.
31.30(c) The commissioner shall amend rules adopted under this chapter as necessary
31.31to implement the ICD-10 coding system in paragraph (b). The amendments shall be
31.32adopted by giving notice in the State Register according to the procedures in section
31.3314.386, paragraph (a). The amended rules are not subject to expiration under section
31.3414.386, paragraph (b).

32.1    Sec. 5. Minnesota Statutes 2012, section 176.136, subdivision 1a, is amended to read:
32.2    Subd. 1a. Relative value fee schedule. (a) The liability of an employer for services
32.3included in the medical fee schedule is limited to the maximum fee allowed by the
32.4schedule in effect on the date of the medical service, or the provider's actual fee, whichever
32.5is lower. The commissioner shall adopt permanent rules regulating fees allowable for
32.6medical, chiropractic, podiatric, surgical, and other health care provider treatment or
32.7service, including those provided to hospital outpatients, by implementing a relative value
32.8fee schedule. The commissioner may adopt by reference, according to the procedures in
32.9paragraph (h), clause (2), the relative value fee schedule tables adopted for the federal
32.10Medicare program. The relative value fee schedule must contain reasonable classifications
32.11including, but not limited to, classifications that differentiate among health care provider
32.12disciplines. The conversion factors for the original relative value fee schedule must
32.13reasonably reflect a 15 percent overall reduction from the medical fee schedule most
32.14recently in effect. The reduction need not be applied equally to all treatment or services,
32.15but must represent a gross 15 percent reduction.
32.16(b) Effective October 1, 2005, the commissioner shall remove all scaling factors
32.17from the relative value units and establish four separate conversion factors according to
32.18paragraphs (c) and (d) for each of the following parts of Minnesota Rules:
32.19(1) medical/surgical services in Minnesota Rules, part 5221.4030, as defined in part
32.205221.0700, subpart 3, item C, subitem (2);
32.21(2) pathology and laboratory services in Minnesota Rules, part 5221.4040, as
32.22defined in part 5221.0700, subpart 3, item C, subitem (3);
32.23(3) physical medicine and rehabilitation services in Minnesota Rules, part
32.245221.4050, as defined in part 5221.0700, subpart 3, item C, subitem (4); and
32.25(4) chiropractic services in Minnesota Rules, part 5221.4060, as defined in part
32.265221.0700, subpart 3, item C, subitem (5).
32.27(c) The four conversion factors established under paragraph (b) shall be calculated
32.28so that there is no change in each maximum fee for each service under the current fee
32.29schedule, except as provided in paragraphs (d) and (e).
32.30(d) By October 1, 2006, the conversion factor for chiropractic services described in
32.31paragraph (b), clause (4), shall be increased to equal 72 percent of the conversion factor
32.32for medical/surgical services described in paragraph (b), clause (1). Beginning October 1,
32.332005, the increase in chiropractic conversion factor shall be phased in over two years by
32.34approximately equal percentage point increases.
32.35(e) When adjusting the conversion factors in accordance with paragraph (g) on
32.36October 1, 2005, and October 1, 2006, the commissioner may adjust by no less than zero,
33.1all of the conversion factors as necessary to offset any overall increase in payments under
33.2the fee schedule resulting from the increase in the chiropractic conversion factor.
33.3(f) The commissioner shall give notice of the relative value units and conversion
33.4factors established under paragraphs (b), (c), and (d) according to the procedures in section
33.514.386, paragraph (a). The relative value units and conversion factors established under
33.6paragraphs (b), (c), and (d) are not subject to expiration under section 14.386, paragraph (b).
33.7(g) (c) The conversion factors shall be adjusted as follows:
33.8(1) After permanent rules have been adopted to implement this section, the conversion
33.9factors must be adjusted annually on October 1 by no more than the percentage change
33.10computed under section 176.645, but without the annual cap provided by that section.
33.11(2) Each time the workers' compensation relative value fee schedule tables are
33.12updated under paragraph (h), the commissioner shall adjust the conversion factors so that,
33.13for services in both fee schedules, there is no difference between the overall payment in each
33.14category of service listed in paragraph (b) under the new schedule and the overall payment
33.15for that category under the workers' compensation fee schedule most recently in effect.
33.16This adjustment must be made before making any additional adjustment under clause (1).
33.17(h) (d) The commissioner shall give notice of the adjusted conversion factors and
33.18updates to the relative value fee schedule as follows:
33.19(1) The commissioner shall annually give notice in the State Register of the adjusted
33.20conversion factors and any amendments to rules to implement Medicare relative value
33.21tables incorporated by reference under this subdivision. The notices of the adjusted
33.22conversion factors and amended rules to implement the relative value tables are subject
33.23to the requirements of section 14.386, paragraph (a). The annual adjustments to the
33.24conversion factors and the medical fee schedules adopted under this section, including all
33.25previous fee schedules, are not subject to expiration under section 14.386, paragraph (b).
33.26(2) The commissioner shall periodically, but at least once every three years, update
33.27the workers' compensation relative value tables by incorporating by reference the relative
33.28value tables in the national physician fee schedule relative value file established by the
33.29Centers for Medicare and Medicaid Services. The commissioner shall publish the notices
33.30of the incorporation by reference in the State Register at least 60 days before the tables
33.31are to become effective for purposes of payment under this section. Each notice of
33.32incorporation must state the date the incorporated tables will become effective and must
33.33include information on how the Medicare relative value tables may be obtained. The
33.34published notices of incorporation by reference and the incorporated tables are not rules
33.35subject to section 14.386 or other provisions of chapter 14, but have the force and effect of
33.36law as of the date specified in the notices.

34.1    Sec. 6. Minnesota Statutes 2012, section 176.231, subdivision 2, is amended to read:
34.2    Subd. 2. Initial report, written report. Where subdivision 1 requires an injury
34.3to be reported within 48 hours, the employer may make an initial report by telephone,
34.4telegraph, or personal notice, and file a written report of the injury within seven days from
34.5its occurrence or within such time as the commissioner of labor and industry designates.
34.6All written reports of injuries required by subdivision 1 shall include the date of injury.
34.7The reports shall be on a form designed by the commissioner, with a clear copy suitable
34.8for imaging to the commissioner, one copy to the insurer, and one copy to the employee.
34.9The employer must give the employee the "Minnesota Workers' Compensation
34.10System Employee Information Sheet" at the time the employee is given a copy of the
34.11first report of injury.
34.12If an insurer or self-insurer repeatedly fails to pay benefits within three days of the
34.13due date, pursuant to section 176.221, the insurer or self-insurer shall be ordered by the
34.14commissioner to explain, in person, the failure to pay benefits due in a reasonable time.
34.15If prompt payments are not thereafter made, the commissioner shall refer the insurer or
34.16self-insurer to the commissioner of commerce for action pursuant to section 176.225,
34.17subdivision 4 .

34.18    Sec. 7. Minnesota Statutes 2012, section 176.305, subdivision 1a, is amended to read:
34.19    Subd. 1a. Settlement and pretrial conferences; summary decision. The chief
34.20administrative law judge shall promptly assign the petition to a compensation judge under
34.21section 176.307, and shall schedule a settlement conference before a compensation judge,
34.22to be held no later than 180 days after a claim petition was filed, or 45 days after a petition
34.23to discontinue, objection to discontinuance, or request for formal hearing was filed.
34.24All parties must appear at the settlement conference, either personally or by
34.25representative, must be prepared to discuss settlement of all issues, and must be prepared
34.26to discuss or present the information required by the joint rules of the division and the
34.27office. If a representative appears on behalf of a party, the representative must have
34.28authority to fully settle the matter. The parties shall serve and file a pretrial statement no
34.29fewer than five days before the settlement conference.
34.30If settlement is not reached, the chief administrative law judge shall schedule a
34.31hearing to be held within 90 days from the scheduled settlement conference. However,
34.32the hearing must be held earlier than 90 days from the scheduled settlement conference if
34.33this chapter requires an expedited hearing to be held at an earlier date. The hearing must
34.34be held before a compensation judge other than the compensation judge who conducted
34.35the settlement conference. The compensation judge assigned to hold the hearing may
35.1choose to conduct a pretrial conference to clarify the issues and evidence that will be
35.2presented at the hearing.
35.3Cancellations and continuations of proceedings are disfavored but may be granted
35.4upon the showing of good cause under section 176.341, subdivision 4.
35.5The compensation judge conducting the settlement conference may require the
35.6parties to present copies of all documentary evidence not previously filed and a summary
35.7of the evidence they will present at a formal hearing. If appropriate, a written summary
35.8decision shall be issued within ten days after the conference stating the issues and a
35.9determination of each issue. If a party fails to appear at the conference, all issues may
35.10be determined contrary to the absent party's interest, provided the party in attendance
35.11presents a prima facie case.
35.12The summary decision is final unless a written request for a formal hearing is served
35.13on all parties and filed with the commissioner within 30 days after the date of service
35.14and filing of the summary decision. Within ten days after receipt of the request, the
35.15commissioner shall certify the matter to the office for a de novo hearing. In proceedings
35.16under section 176.2615, the summary decision is final and not subject to appeal or de
35.17novo proceedings.

35.18    Sec. 8. REPEALER.
35.19Minnesota Statutes 2012, sections 175.006, subdivision 1; 175.08; 175.14; 175.26;
35.20176.1311; 176.136, subdivision 3; 176.2615; and 176.641, are repealed."
35.21Renumber the sections in sequence and correct the internal references
35.22Amend the title accordingly
35.23Adjust amounts accordingly