Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10845

 

STATE OF MINNESOTA

 

 

EIGHTY-EIGHTH SESSION - 2014

 

_____________________

 

ONE HUNDRED FIFTH DAY

 

Saint Paul, Minnesota, Thursday, May 15, 2014

 

 

      The House of Representatives convened at 10:00 a.m. and was called to order by Paul Thissen, Speaker of the House.

 

      Prayer was offered by Pastor Sam Brown, Chisago Lakes Baptist Church, Chisago City, Minnesota.

 

      The members of the House gave the pledge of allegiance to the flag of the United States of America.

 

      The roll was called and the following members were present:

 


Abeler

Albright

Allen

Anderson, P.

Anderson, S.

Anzelc

Atkins

Barrett

Beard

Benson, J.

Benson, M.

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Daudt

Davids

Davnie

Dean, M.

Dehn, R.

Dettmer

Dill

Dorholt

Drazkowski

Erhardt

Erickson, R.

Erickson, S.

Fabian

Falk

Faust

Fischer

Franson

Freiberg

Fritz

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Halverson

Hamilton

Hansen

Hausman

Hertaus

Hilstrom

Holberg

Hoppe

Hornstein

Hortman

Howe

Huntley

Isaacson

Johnson, B.

Johnson, C.

Johnson, S.

Kahn

Kelly

Kiel

Kresha

Laine

Leidiger

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McDonald

McNamar

McNamara

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Myhra

Nelson

Newberger

Newton

Nornes

Norton

O'Driscoll

O'Neill

Paymar

Pelowski

Peppin

Persell

Petersburg

Poppe

Pugh

Quam

Radinovich

Rosenthal

Runbeck

Sanders

Savick

Sawatzky

Schoen

Schomacker

Scott

Selcer

Simon

Simonson

Slocum

Sundin

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wagenius

Ward, J.A.

Ward, J.E.

Wills

Winkler

Woodard

Yarusso

Zerwas

Spk. Thissen


 

      A quorum was present.

 

      Anderson, M., and Kieffer were excused.

 

      FitzSimmons was excused until 12:05 p.m.  Zellers was excused until 3:10 p.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 - 105th Day - Thursday, May 15, 2014 - Top of Page 10846

PETITIONS AND COMMUNICATIONS

 

 

      The following communications were received:

 

 

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

May 13, 2014

 

The Honorable Paul Thissen

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Thissen:

 

      Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State H. F. Nos. 2670, 2543, 2265, 2654 and 2386.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Mark Dayton

                                                                                                                                Governor

 

 

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

 

The Honorable Paul Thissen

Speaker of the House of Representatives

 

The Honorable Sandra L. Pappas

President of the Senate

 

      I have the honor to inform you that the following enrolled Acts of the 2014 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

 

 

S. F.

No.

 

H. F.

No.

 

Session Laws

Chapter No.

Time and

Date Approved

2014

 

Date Filed

2014

 

     2322                                                233                                         12:06 p.m. May 13                                 May 13

     2423                                                234                                         12:08 p.m. May 13                                 May 13

       511                                                235                                         12:07 p.m. May 13                                 May 13

                               2670                      236                                         11:59 a.m. May 13                                 May 13

                               2543                      237                                         12:00 p.m. May 13                                 May 13


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10847

                                                       2265                                                           238       12:01 p.m. May 13 May 13

     2336                                                240                                         12:03 p.m. May 13                                 May 13

     2712                                                242                                         12:08 p.m. May 13                                 May 13

     2614                                                243                                         12:10 p.m. May 13                                 May 13

                               2654                      244                                         12:04 p.m. May 13                                 May 13

                               2386                      245                                         12:10 p.m. May 13                                 May 13

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Mark Ritchie

                                                                                                                                Secretary of State

 

 

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

 

May 14, 2014

 

The Honorable Paul Thissen

Speaker of the House of Representatives

The State of Minnesota

 

Dear Speaker Thissen:

 

      Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State H. F. No. 2576.

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Mark Dayton

                                                                                                                                Governor

 

 

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

 

The Honorable Paul Thissen

Speaker of the House of Representatives

 

The Honorable Sandra L. Pappas

President of the Senate

 

      I have the honor to inform you that the following enrolled Acts of the 2014 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10848

S. F.

No.

 

H. F.

No.

 

Session Laws

Chapter No.

Time and

Date Approved

2014

 

Date Filed

2014

 

     1740                                                241                                         10:07 a.m. May 14                                 May 14

                               2576                      246                                           9:16 a.m. May 14                                 May 14

 

 

                                                                                                                                Sincerely,

 

                                                                                                                                Mark Ritchie

                                                                                                                                Secretary of State

 

 

INTRODUCTION AND FIRST READING OF HOUSE BILLS

 

 

      The following House Files were introduced:

 

 

Loeffler; Melin; Johnson, S.; Mack; Lohmer; Kiel; Hornstein; Albright; Schoen; Brynaert; Urdahl; Liebling; Fischer; Mullery; Yarusso; Norton; Barrett; O'Neill; Runbeck; Dorholt; Persell; Dettmer; Newton; Laine; Pugh; Moran; Kahn; Clark and Ward, J.A., introduced:

 

H. F. No. 3383, A resolution memorializing the President and the United States Congress to require the National Institute on Drug Abuse and the United States Drug Enforcement Agency to expedite serious research into the medical uses and benefits of marijuana.

 

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

 

 

Franson and Nornes introduced:

 

H. F. No. 3384, A bill for an act relating to game and fish; allowing residents age 75 and older to fish without a license; amending Minnesota Statutes 2012, section 97A.451, subdivision 8.

 

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy.

 

 

MESSAGES FROM THE SENATE

 

 

      The following message was received from 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:


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10849

H. F. No. 3169, A bill for an act relating to state government; establishing a legislative salary council; modifying a proposed constitutional amendment to remove lawmakers' power to set their own pay; amending Laws 2013, chapter 124, sections 1; 2; proposing coding for new law in Minnesota Statutes, chapter 15A.

 

JoAnne M. Zoff, Secretary of the Senate

 

 

CONCURRENCE AND REPASSAGE

 

      Metsa moved that the House concur in the Senate amendments to H. F. No. 3169 and that the bill be repassed as amended by the Senate.

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the Metsa motion and the roll was called.  There were 68 yeas and 60 nays as follows:

 

      Those who voted in the affirmative were:

 


Allen

Anzelc

Atkins

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Davnie

Dehn, R.

Dill

Dorholt

Erhardt

Erickson, R.

Falk

Faust

Fischer

Freiberg

Fritz

Halverson

Hansen

Hilstrom

Hornstein

Hortman

Huntley

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McNamar

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Paymar

Persell

Poppe

Savick

Sawatzky

Schoen

Selcer

Simon

Simonson

Slocum

Sundin

Wagenius

Ward, J.A.

Ward, J.E.

Winkler

Yarusso

Spk. Thissen


 

      Those who voted in the negative were:

 


Abeler

Albright

Anderson, P.

Anderson, S.

Barrett

Beard

Benson, M.

Cornish

Daudt

Davids

Dean, M.

Dettmer

Drazkowski

Erickson, S.

Fabian

Franson

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Hamilton

Hertaus

Holberg

Hoppe

Howe

Johnson, B.

Kelly

Kiel

Kresha

Leidiger

Lohmer

Loon

Mack

McDonald

McNamara

Myhra

Newberger

Nornes

O'Driscoll

O'Neill

Pelowski

Peppin

Petersburg

Pugh

Quam

Radinovich

Rosenthal

Runbeck

Sanders

Schomacker

Scott

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wills

Woodard

Zerwas


 

 

      The motion prevailed.

 

 

H. F. No. 3169, A bill for an act relating to state government; establishing a legislative salary council; modifying a proposed constitutional amendment to remove lawmakers' power to set their own pay; amending Laws 2013, chapter 124, sections 1; 2; proposing coding for new law in Minnesota Statutes, chapter 15A.

 

 

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


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10850

         The question was taken on the repassage of the bill and the roll was called.  There were 68 yeas and 62 nays as follows:

 

      Those who voted in the affirmative were:

 


Allen

Anzelc

Atkins

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Davnie

Dehn, R.

Dill

Dorholt

Erhardt

Erickson, R.

Falk

Faust

Fischer

Freiberg

Halverson

Hansen

Hausman

Hilstrom

Hornstein

Hortman

Huntley

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McNamar

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Paymar

Persell

Poppe

Savick

Sawatzky

Schoen

Selcer

Simon

Simonson

Slocum

Sundin

Wagenius

Ward, J.A.

Ward, J.E.

Winkler

Yarusso

Spk. Thissen


 

      Those who voted in the negative were:

 


Abeler

Albright

Anderson, P.

Anderson, S.

Barrett

Beard

Benson, M.

Cornish

Daudt

Davids

Dean, M.

Dettmer

Drazkowski

Erickson, S.

Fabian

Franson

Fritz

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Hamilton

Hertaus

Holberg

Hoppe

Howe

Johnson, B.

Kelly

Kiel

Kresha

Leidiger

Lenczewski

Lohmer

Loon

Mack

McDonald

McNamara

Myhra

Newberger

Nornes

O'Driscoll

O'Neill

Pelowski

Peppin

Petersburg

Pugh

Quam

Radinovich

Rosenthal

Runbeck

Sanders

Schomacker

Scott

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wills

Woodard

Zerwas


 

 

      The bill was repassed, as amended by the Senate, and its title agreed to.

 

 

CALENDAR FOR THE DAY

 

 

      S. F. No. 2255 was reported to the House.

 

 

      Nelson moved to amend S. F. No. 2255 as follows:

 

      Delete everything after the enacting clause and insert the following language of H. F. No. 2319, the first engrossment:

 

"Section 1.  Minnesota Statutes 2012, section 118A.03, subdivision 5, is amended to read:

 

Subd. 5.  Withdrawal of excess collateral.  A financial institution may withdraw excess collateral or substitute other collateral after giving written notice to the governmental government entity and receiving confirmation.  The authority to return any delivered and assigned collateral rests with the government entity.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10851

Sec. 2.  Minnesota Statutes 2012, section 118A.04, subdivision 7, is amended to read:

 

Subd. 7.  Temporary general obligation bonds.  Funds may be invested in general obligation temporary bonds of the same governmental government entity issued under section 429.091, subdivision 7, 469.178, subdivision 5, or 475.61, subdivision 6.

 

Sec. 3.  Minnesota Statutes 2012, section 118A.04, subdivision 8, is amended to read:

 

Subd. 8.  Debt service funds.  Funds held in a debt service fund may be used to purchase any obligation, whether general or special, of an issue which is payable from the fund, at such price, which may include a premium, as shall be agreed to by the holder, or may be used to redeem any obligation of such an issue prior to maturity in accordance with its terms.  The securities representing any such investment may be sold by the governmental government entity at any time, but the money so received remains part of the fund until used for the purpose for which the fund was created.  Any obligation held in a debt service fund from which it is payable may be canceled at any time unless otherwise provided in a resolution or other instrument securing obligations payable from the fund.

 

Sec. 4.  Minnesota Statutes 2012, section 118A.05, subdivision 4, is amended to read:

 

Subd. 4.  Minnesota joint powers investment trust.  Government entities may enter into agreements or contracts for:

 

(1) shares of a Minnesota joint powers investment trust whose investments are restricted to securities described in this section and, section 118A.04, and section 118.07, subdivision 7;

 

(2) units of a short-term investment fund established and administered pursuant to regulation 9 of the Office of the Comptroller of the Currency, in which investments are restricted to securities described in this section and section 118A.04;

 

(3) shares of an investment company which is registered under the Federal Investment Company Act of 1940 and which holds itself out as a money market fund meeting the conditions of rule 2a-7 of the Securities and Exchange Commission and is rated in one of the two highest rating categories for money market funds by at least one nationally recognized statistical rating organization; or

 

(4) shares of an investment company which is registered under the Federal Investment Company Act of 1940, and whose shares are registered under the Federal Securities Act of 1933, as long as the investment company's fund receives the highest credit rating and is rated in one of the two highest risk rating categories by at least one nationally recognized statistical rating organization and is invested in financial instruments with a final maturity no longer than 13 months.

 

Sec. 5.  Minnesota Statutes 2012, section 118A.07, is amended to read:

 

118A.07 ADDITIONAL INVESTMENT AUTHORITY.

 

Subdivision 1.  Authority provided.  As used in this section, "governmental entity" means a city with a population in excess of 200,000 or, a county that contains a city of that size, or the Metropolitan Council.  If a governmental entity meets the requirements of subdivisions 2 and 3, it may exercise additional investment authority under subdivisions 4, 5, and 6.

 

Subd. 2.  Written policies and procedures.  Prior to exercising any additional authority under subdivisions 4, 5, and 6, the governmental entity must have written investment policies and procedures governing the following:

 

(1) the use of or limitation on mutual bond funds or other securities authorized or permitted investments under law;


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10852

(2) specifications for and limitations on the use of derivatives;

 

(3) the final maturity of any individual security;

 

(4) the maximum average weighted life of the portfolio;

 

(5) the use of and limitations on reverse repurchase agreements;

 

(6) credit standards for financial institutions with which the government governmental entity deals; and

 

(7) credit standards for investments made by the government governmental entity.

 

Subd. 3.  Oversight process.  Prior to exercising any authority under subdivisions 4, 5, and 6, the governmental entity must establish an oversight process that provides for review of the government governmental entity's investment strategy and the composition of the financial portfolio.  This process shall include one or more of the following:

 

(1) audit reviews;

 

(2) internal or external investment committee reviews; and

 

(3) internal management control.

 

Additionally, the governing body of the governmental entity must, by resolution, authorize its treasurer to utilize the additional authorities under this section within their prescribed limits, and in conformance with the written limitations, policies, and procedures of the governmental entity.

 

If the governing body of a governmental entity exercises the authority provided in this section, the treasurer of the governmental entity must annually report to the governing body on the findings of the oversight process required under this subdivision.  If the governing body intends to continue to exercise the authority provided in this section for the following calendar year, it must adopt a resolution affirming that intention by December 1.

 

Subd. 4.  Repurchase agreements.  A government governmental entity may enter into repurchase agreements as authorized under section 118A.05, provided that the exclusion of mortgage-backed securities defined as "high-risk mortgage-backed securities" under section 118A.04, subdivision 6, shall not apply to repurchase agreements under this authority if the margin requirement is 101 percent or more.

 

Subd. 5.  Reverse repurchase agreements.  Notwithstanding the limitations contained in section 118A.05, subdivision 2, the county governmental entity may enter into reverse repurchase agreements to:

 

(1) meet cash flow needs; or

 

(2) generate cash for investments, provided that the total securities owned shall be limited to an amount not to exceed 130 percent of the annual daily average of general investable monies for the fiscal year as disclosed in the most recently available audited financial report.  Excluded from this limit are:

 

(i) securities with maturities of one year or less; and

 

(ii) securities that have been reversed to maturity.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10853

There shall be no limit on the term of a reverse repurchase agreement.  Reverse repurchase agreements shall not be included in computing the net debt of the governmental entity, and may be made without an election or public sale, and the interest payable thereon shall not be subject to the limitation in section 475.55.  The interest shall not be deducted or excluded from gross income of the recipient for the purpose of state income, corporate franchise, or bank excise taxes, or if so provided by federal law, for the purpose of federal income tax.

 

Subd. 6.  Options and futures.  A government governmental entity may enter into futures contracts, options on futures contracts, and option agreements to buy or sell securities authorized under law as legal investments for counties governmental entities, but only with respect to securities owned by the governmental entity, including securities that are the subject of reverse repurchase agreements under this section that expire at or before the due date of the option agreement.

 

Subd. 7.  Negotiable certificates of deposit.  A Minnesota joint powers investment trust may invest funds in negotiable certificates of deposit or other evidences of deposit, with a remaining maturity of three years or less, issued by a nationally or state-chartered bank, a federal or state savings and loan association, or a state-licensed branch of a foreign bank, except that for obligations with a maturity of one year or less, the debt obligations of the issuing institution or its parent are rated in the top short-term rating category by at least two nationally recognized statistical ratings organizations and for obligations with a maturity in excess of one year, the senior debt obligations of the issuing institution or its parent are rated at least A or its equivalent by at least two nationally recognized statistical ratings organizations.  Investments in these instruments shall not be subject to the collateralization requirements of section 118A.03.

 

Sec. 6.  Minnesota Statutes 2012, section 473.543, subdivision 3, is amended to read:

 

Subd. 3.  Where to deposit; how to invest.  The moneys on hand in said funds and accounts may be deposited in the official depositories of the council or invested as hereinafter provided.  The amount thereof not currently needed or required by law to be kept in cash on deposit may be invested in obligations authorized for the investment of public funds by section 118A.04 chapter 118A.  Such moneys may also be held under certificates of deposit issued by any official depository of the council.

 

Sec. 7.  APPLICATION.

 

Section 6 applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington."

 

      Delete the title and insert:

 

"A bill for an act relating to deposits and investments of public funds; granting the Metropolitan Council additional investment authority; authorizing certain investments by a Minnesota joint powers investment trust; making certain conforming technical changes; amending Minnesota Statutes 2012, sections 118A.03, subdivision 5; 118A.04, subdivisions 7, 8; 118A.05, subdivision 4; 118A.07; 473.543, subdivision 3."

 

 

      The motion prevailed and the amendment was adopted.

 

 

      The Speaker called Hortman to the Chair.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10854

Albright moved to amend S. F. No. 2255, as amended, as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2012, section 118A.03, subdivision 5, is amended to read:

 

Subd. 5.  Withdrawal of excess collateral.  A financial institution may withdraw excess collateral or substitute other collateral after giving written notice to the governmental government entity and receiving confirmation.  The authority to return any delivered and assigned collateral rests with the government entity.

 

Sec. 2.  Minnesota Statutes 2012, section 118A.04, subdivision 7, is amended to read:

 

Subd. 7.  Temporary general obligation bonds.  Funds may be invested in general obligation temporary bonds of the same governmental government entity issued under section 429.091, subdivision 7, 469.178, subdivision 5, or 475.61, subdivision 6.

 

Sec. 3.  Minnesota Statutes 2012, section 118A.04, subdivision 8, is amended to read:

 

Subd. 8.  Debt service funds.  Funds held in a debt service fund may be used to purchase any obligation, whether general or special, of an issue which is payable from the fund, at such price, which may include a premium, as shall be agreed to by the holder, or may be used to redeem any obligation of such an issue prior to maturity in accordance with its terms.  The securities representing any such investment may be sold by the governmental government entity at any time, but the money so received remains part of the fund until used for the purpose for which the fund was created.  Any obligation held in a debt service fund from which it is payable may be canceled at any time unless otherwise provided in a resolution or other instrument securing obligations payable from the fund.

 

Sec. 4.  Minnesota Statutes 2012, section 118A.05, subdivision 4, is amended to read:

 

Subd. 4.  Minnesota joint powers investment trust.  Government entities may enter into agreements or contracts for:

 

(1) shares of a Minnesota joint powers investment trust whose investments are restricted to securities described in this section and, section 118A.04, and section 118.07, subdivision 7;

 

(2) units of a short-term investment fund established and administered pursuant to regulation 9 of the Office of the Comptroller of the Currency, in which investments are restricted to securities described in this section and section 118A.04;

 

(3) shares of an investment company which is registered under the Federal Investment Company Act of 1940 and which holds itself out as a money market fund meeting the conditions of rule 2a-7 of the Securities and Exchange Commission and is rated in one of the two highest rating categories for money market funds by at least one nationally recognized statistical rating organization; or

 

(4) shares of an investment company which is registered under the Federal Investment Company Act of 1940, and whose shares are registered under the Federal Securities Act of 1933, as long as the investment company's fund receives the highest credit rating and is rated in one of the two highest risk rating categories by at least one nationally recognized statistical rating organization and is invested in financial instruments with a final maturity no longer than 13 months.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10855

Sec. 5.  Minnesota Statutes 2012, section 118A.07, is amended to read:

 

118A.07 ADDITIONAL INVESTMENT AUTHORITY.

 

Subdivision 1.  Authority provided.  As used in this section, "governmental entity" means a city with a population in excess of 200,000 or, a county that contains a city of that size, or the Metropolitan Council.  If a governmental entity meets the requirements of subdivisions 2 and 3, it may exercise additional investment authority under subdivisions 4, 5, and 6.

 

Subd. 2.  Written policies and procedures.  Prior to exercising any additional authority under subdivisions 4, 5, and 6, the governmental entity must have written investment policies and procedures governing the following:

 

(1) the use of or limitation on mutual bond funds or other securities authorized or permitted investments under law;

 

(2) specifications for and limitations on the use of derivatives;

 

(3) the final maturity of any individual security;

 

(4) the maximum average weighted life of the portfolio;

 

(5) the use of and limitations on reverse repurchase agreements;

 

(6) credit standards for financial institutions with which the government governmental entity deals; and

 

(7) credit standards for investments made by the government governmental entity.

 

Subd. 3.  Oversight process.  Prior to exercising any authority under subdivisions 4, 5, and 6, the governmental entity must establish an oversight process that provides for review of the government governmental entity's investment strategy and the composition of the financial portfolio.  This process shall include one or more of the following:

 

(1) audit reviews;

 

(2) internal or external investment committee reviews; and

 

(3) internal management control.

 

Additionally, the governing body of the governmental entity must, by resolution, authorize its treasurer to utilize the additional authorities under this section within their prescribed limits, and in conformance with the written limitations, policies, and procedures of the governmental entity.

 

If the governing body of a governmental entity exercises the authority provided in this section, the treasurer of the governmental entity must annually report to the governing body on the findings of the oversight process required under this subdivision.  If the governing body intends to continue to exercise the authority provided in this section for the following calendar year, it must adopt a resolution affirming that intention by December 1.

 

Subd. 4.  Repurchase agreements.  A government governmental entity may enter into repurchase agreements as authorized under section 118A.05, provided that the exclusion of mortgage-backed securities defined as "high-risk mortgage-backed securities" under section 118A.04, subdivision 6, shall not apply to repurchase agreements under this authority if the margin requirement is 101 percent or more.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10856

Subd. 5.  Reverse repurchase agreements.  Notwithstanding the limitations contained in section 118A.05, subdivision 2, the county governmental entity may enter into reverse repurchase agreements to:

 

(1) meet cash flow needs; or

 

(2) generate cash for investments, provided that the total securities owned shall be limited to an amount not to exceed 130 percent of the annual daily average of general investable monies for the fiscal year as disclosed in the most recently available audited financial report.  Excluded from this limit are:

 

(i) securities with maturities of one year or less; and

 

(ii) securities that have been reversed to maturity.

 

There shall be no limit on the term of a reverse repurchase agreement.  Reverse repurchase agreements shall not be included in computing the net debt of the governmental entity, and may be made without an election or public sale, and the interest payable thereon shall not be subject to the limitation in section 475.55.  The interest shall not be deducted or excluded from gross income of the recipient for the purpose of state income, corporate franchise, or bank excise taxes, or if so provided by federal law, for the purpose of federal income tax.

 

Subd. 6.  Options and futures.  A government governmental entity may enter into futures contracts, options on futures contracts, and option agreements to buy or sell securities authorized under law as legal investments for counties governmental entities, but only with respect to securities owned by the governmental entity, including securities that are the subject of reverse repurchase agreements under this section that expire at or before the due date of the option agreement.

 

Subd. 7.  Negotiable certificates of deposit.  A Minnesota joint powers investment trust may invest funds in negotiable certificates of deposit or other evidences of deposit, with a remaining maturity of three years or less, issued by a nationally or state-chartered bank, a federal or state savings and loan association, or a state-licensed branch of a foreign bank, except that for obligations with a maturity of one year or less, the debt obligations of the issuing institution or its parent are rated in the top short-term rating category by at least two nationally recognized statistical ratings organizations and for obligations with a maturity in excess of one year, the senior debt obligations of the issuing institution or its parent are rated at least A or its equivalent by at least two nationally recognized statistical ratings organizations.  Investments in these instruments shall not be subject to the collateralization requirements of section 118A.03.

 

Sec. 6.  Minnesota Statutes 2012, section 473.543, subdivision 3, is amended to read:

 

Subd. 3.  Where to deposit; how to invest.  The moneys on hand in said funds and accounts may be deposited in the official depositories of the council or invested as hereinafter provided.  The amount thereof not currently needed or required by law to be kept in cash on deposit may be invested in obligations authorized for the investment of public funds by section 118A.04 chapter 118A.  Such moneys may also be held under certificates of deposit issued by any official depository of the council.

 

Sec. 7.  Minnesota Statutes 2012, section 473.543, is amended by adding a subdivision to read:

 

Subd. 6.  Report; investment of funds.  The Metropolitan Council shall annually by February 1 report to the legislature on the purchases made with the additional investment authority authorized under this act, as well as the income and losses attributable to this additional authority.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10857

Sec. 8.  APPLICATION.

 

Sections 6 and 7 apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington."

 

Renumber the sections in sequence and correct the internal references

 

Delete the title and insert:

 

"A bill for an act relating to deposits and investments of public funds; granting the Metropolitan Council additional investment authority; authorizing certain investments by a Minnesota joint powers investment trust; making certain conforming technical changes; requiring a report; amending Minnesota Statutes 2012, sections 118A.03, subdivision 5; 118A.04, subdivisions 7, 8; 118A.05, subdivision 4; 118A.07; 473.543, subdivision 3, by adding a subdivision."

 

 

      A roll call was requested and properly seconded.

 

 

Runbeck moved to amend the Albright amendment to S. F. No. 2255, as amended, as follows:

 

Page 4, after line 22, insert:

 

"Sec. 6.  [473.1201] METROPOLITAN COUNCIL ABOLISHED.

 

Effective July 1, 2015, the Metropolitan Council is abolished.

 

Sec. 7.  [473.1202] TRANSITION PERIOD.

 

Subdivision 1.  Council duties.  As soon as possible after the effective date of this act, the Metropolitan Council shall prepare a summary of its powers and duties and an inventory of its assets and liabilities of all kinds.  Based upon its summary and inventory, the council shall submit to the legislature, before October 31, 2014, a report making recommendations to the legislature on the following:

 

(1) proposed alternative successors to the council for those powers and duties the council concludes must be possessed by some level of government and that have not been transferred by law to another entity of government or abolished by July 1, 2015;

 

(2) proposed alternative dispositions of the council's assets and liabilities that have not been transferred by law to another governmental entity by July 1, 2015; and

 

(3) any other recommendations the council may wish to make to the legislature to provide an orderly transition from the governmental status existing before the enactment of this act to the governmental status which will exist beginning July 1, 2015, including amendments to, or repeals of, laws relating to the Metropolitan Council.

 

Subd. 2.  Commissioner of administration; powers and duties.  Powers and duties of the Metropolitan Council that are not transferred to another governmental entity or abolished by law by July 1, 2015, are transferred to the commissioner of administration, who shall continue to exercise those powers and duties until they are abolished by law or until July 1, 2016, whichever is earlier.  Assets and liabilities of the Metropolitan Council that have not been disposed of pursuant to law by July 1, 2015, are transferred to the commissioner of administration, who shall dispose of them pursuant to law by July 1, 2016.  Section 15.039 applies to the transfer of the Metropolitan Council's powers, duties, assets, and liabilities to the commissioner of administration to the extent


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10858

practicable.  By January 15, 2016, the commissioner shall report to the legislature any recommendations that the commissioner considers necessary to supplement the Metropolitan Council's report and recommendation required by subdivision 1.

 

Sec. 8.  BONDS TO BE PAID.

 

Notwithstanding the repeal of their authorizing law, bonds and other obligations of the Metropolitan Council issued and outstanding on the effective date of this section must be paid according to the authorizing law and the terms of the obligations."

 

Page 5, line 4, before "Sections" insert "Sections 6 to 8 are effective the day following final enactment except as otherwise provided."

 

Page 5, line 4, delete "and 7" and insert "to 10"

 

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 amendment to the amendment and the roll was called.  There were 56 yeas and 74 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Albright

Anderson, P.

Anderson, S.

Barrett

Beard

Benson, M.

Cornish

Daudt

Dean, M.

Dettmer

Drazkowski

Erickson, S.

Fabian

Franson

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Hamilton

Hertaus

Holberg

Hoppe

Howe

Johnson, B.

Kelly

Kiel

Kresha

Leidiger

Lohmer

Loon

Mack

McDonald

McNamara

Myhra

Newberger

Nornes

O'Driscoll

O'Neill

Peppin

Petersburg

Pugh

Quam

Runbeck

Sanders

Schomacker

Scott

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wills

Woodard

Zerwas


 

      Those who voted in the negative were:

 


Allen

Anzelc

Atkins

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Davids

Davnie

Dehn, R.

Dill

Dorholt

Erhardt

Erickson, R.

Falk

Faust

Fischer

Freiberg

Fritz

Halverson

Hansen

Hausman

Hilstrom

Hornstein

Hortman

Huntley

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McNamar

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Paymar

Pelowski

Persell

Poppe

Radinovich

Rosenthal

Savick

Sawatzky

Schoen

Selcer

Simon

Simonson

Slocum

Sundin

Wagenius

Ward, J.A.

Ward, J.E.

Winkler

Yarusso

Spk. Thissen


 

 

      The motion did not prevail and the amendment to the amendment was not adopted.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10859

Runbeck moved to amend the Albright amendment to S. F. No. 2255, as amended, as follows:

 

Page 4, after line 22, insert:

 

"Sec. 6.  Minnesota Statutes 2012, section 473.129, subdivision 7, is amended to read:

 

Subd. 7.  Property; no eminent domain.  The council may acquire, own, hold, use, improve, operate, maintain, lease, exchange, transfer, sell, or otherwise dispose of personal or real property, franchises, easements, or property rights or interests of any kind.  Notwithstanding any other provision in law that authorizes the council to acquire property by eminent domain, the council must not use eminent domain unless a law authorizing its use for a specific project is enacted.  The council must not acquire property from any other entity that used eminent domain to acquire the property within ten years of the proposed transfer to the council.

 

Sec. 7.  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, or 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.

 

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. 8.  Minnesota Statutes 2012, section 473.411, subdivision 3, is amended to read:

 

Subd. 3.  Services of Department of Transportation.  The council may make use of engineering and other technical and professional services, including regular staff and qualified consultants, which the commissioner of transportation can furnish, upon fair and reasonable reimbursement for the cost thereof; provided, that the council has final authority over the employment of any services from other sources which it may deem necessary for such purposes.  The commissioner of transportation may furnish all engineering, legal, and other services, if so requested by the council and upon fair and reasonable reimbursement for the cost thereof by the council, for the purposes stated in this subdivision, including the acquisition by purchase, condemnation, or otherwise in the name of the council of all lands, waters, easements, or other rights or interests in lands or waters required by the council.  No purchase of service agreements may be made under this subdivision which are not included in the budget of the council.

 

Sec. 9.  Minnesota Statutes 2012, section 473.411, subdivision 4, is amended to read:

 

Subd. 4.  State highways; joint use for transit and highway purposes.  Wherever the joint construction or use of a state highway is feasible in fulfilling the purposes of sections 473.405 to 473.449, the council shall enter into an agreement with the commissioner of transportation therefor, evidenced by a memorandum setting forth the terms of


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10860

the agreement.  Either the council or the commissioner of transportation may acquire any additional lands, waters, easements or other rights or interests required for joint use in accordance with the agreement, or joint acquisition may be made by condemnation as provided by section 117.016 and the provisions of sections 473.405 to 473.449.  Under the agreement each party shall pay to the other party reasonable compensation for the costs of any services performed at the request of the other party which may include any costs of engineering, design, acquisition of property, construction of the facilities, and for the use thereof so far as attributable to and necessary for the purposes.  The council may not agree to acquisitions or expenditures under this subdivision which are not included in its budget.

 

Sec. 10.  Minnesota Statutes 2012, section 473.504, subdivision 9, is amended to read:

 

Subd. 9.  May get property.  The council may acquire by purchase, lease, condemnation, gift, or grant, any real or personal property including positive and negative easements and water and air rights, and it may construct, enlarge, improve, replace, repair, maintain, and operate any interceptor or treatment works determined to be necessary or convenient for the collection and disposal of sewage in the metropolitan area.  Any local government unit and the commissioners of transportation and natural resources are authorized to convey to or permit the use of any such facilities owned or controlled by it by the council, subject to the rights of the holders of any bonds issued with respect thereto, with or without compensation, without an election or approval by any other government agency.  All powers conferred by this subdivision may be exercised both within or without the metropolitan area as may be necessary for the exercise by the council of its powers or the accomplishment of its purposes.  The council may hold such property for its purposes, and may lease any such property so far as not needed for its purposes, upon such terms and in such manner as it shall deem advisable.  Unless otherwise provided, the right to acquire lands and property rights by condemnation shall be exercised in accordance with chapter 117, and shall apply to any property or interest therein owned by any local government unit; provided, that no such property devoted to an actual public use at the time, or held to be devoted to such use within a reasonable time, shall be so acquired unless a court of competent jurisdiction shall determine that the use proposed by the board is paramount to such use.  Except in case of property in actual public use, the council may take possession of any property for which condemnation proceedings have been commenced at any time after the issuance of a court order appointing commissioners for its condemnation.

 

Sec. 11.  Minnesota Statutes 2012, section 473.516, subdivision 1, is amended to read:

 

Subdivision 1.  Acquisition and operation.  Without limiting the grant or enumeration of any of the powers conferred on the council under sections 473.501 to 473.549, the council shall have the specific power to acquire by purchase, lease, condemnation, gift or grant any real or personal property, positive and negative easements and water and air rights, and it may construct, enlarge, improve, replace, repair, maintain and operate waste facilities in the metropolitan area deemed to be necessary or convenient in connection with the processing or disposal of waste resulting from sewage treatment, and the council may contract for the maintenance and operation of such waste facilities, subject to the bidding requirements of section 473.523.  The council may accept for processing waste derived from outside the metropolitan area in the state, as well as waste derived from within the metropolitan area, and may fix and collect fees and charges for the acceptance of waste as the council determines to be reasonable."

 

Page 5, after line 2, insert:

 

"Sec. 14.  REPEALER.

 

Minnesota Statutes 2012, section 473.405, subdivisions 3 and 9, are repealed."

 

Page 5, line 4, delete "and 7" and insert "to 14"

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10861

         The question was taken on the amendment to the amendment and the roll was called.  There were 56 yeas and 74 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Albright

Anderson, P.

Anderson, S.

Barrett

Beard

Benson, M.

Cornish

Daudt

Davids

Dean, M.

Dettmer

Drazkowski

Erickson, S.

Fabian

Franson

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Hamilton

Hertaus

Holberg

Hoppe

Howe

Johnson, B.

Kelly

Kiel

Kresha

Leidiger

Lohmer

Loon

Mack

McDonald

Myhra

Newberger

Nornes

O'Driscoll

O'Neill

Peppin

Petersburg

Pugh

Quam

Runbeck

Sanders

Schomacker

Scott

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wills

Woodard

Zerwas


 

      Those who voted in the negative were:

 


Allen

Anzelc

Atkins

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Davnie

Dehn, R.

Dill

Dorholt

Erhardt

Erickson, R.

Falk

Faust

Fischer

Freiberg

Fritz

Halverson

Hansen

Hausman

Hilstrom

Hornstein

Hortman

Huntley

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McNamar

McNamara

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Paymar

Pelowski

Persell

Poppe

Radinovich

Rosenthal

Savick

Sawatzky

Schoen

Selcer

Simon

Simonson

Slocum

Sundin

Wagenius

Ward, J.A.

Ward, J.E.

Winkler

Yarusso

Spk. Thissen


 

 

      The motion did not prevail and the amendment to the amendment was not adopted.

 

 

Scott moved to amend the Albright amendment to S. F. No. 2255, as amended, as follows:

 

Page 4, after line 22, insert:

 

"Sec. 6.  Minnesota Statutes 2012, section 473.123, subdivision 1, is amended to read:

 

Subdivision 1.  Creation.  A Metropolitan Council with jurisdiction in the metropolitan area is established as a public corporation and political subdivision of the state.  It shall be under the supervision and control of 17 members, all of whom shall be residents of the metropolitan area elected from districts as provided in section 473.124.

 

Sec. 7.  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 elected by, and from among, the members of the council to serve a one-year term.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10862

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.  Each Metropolitan Council member must be paid as authorized by the Metropolitan Council.

 

(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. 8.  Minnesota Statutes 2012, section 473.123, subdivision 7, is amended to read:

 

Subd. 7.  Performance and budget analyst.  The council, other than the chair, may hire a performance and budget analyst to assist the 16 council members with policy and budget analysis and evaluation of the council's performance.  The analyst may recommend and the council may hire up to two additional analysts to assist the council with performance evaluation and budget analysis.  The analyst and any additional analysts hired shall serve at the pleasure of the council members.  The 16 members of the council may prescribe all terms and conditions for the employment of the analyst and any additional analysts hired, including, but not limited to, the fixing of compensation, benefits, and insurance.  The analyst shall prepare the budget for the provisions of this section subdivision and submit the budget for council approval and inclusion in the council's overall budget.

 

Sec. 9.  [473.124] METROPOLITAN COUNCIL ELECTIONS.

 

Subdivision 1.  Number of members.  The Metropolitan Council consists of 16 elected members.  Members shall be elected at the state general election held before their terms of office expire.  They shall be nonpartisan candidates under section 211B.01, subdivision 3.

 

Subd. 2.  Districts.  (a) After the federal decennial census in 2020, and after each federal decennial census thereafter, the Metropolitan Council must divide the metropolitan area into as many districts as there are members.  Each district is entitled to elect one member.  The districts must be bounded by town, municipal, ward, or precinct lines.  The districts must be composed of compact, convenient, and contiguous territory and must be substantially equal in population.  The population of the largest district must not exceed the population of the smallest district by more than ten percent, unless the result would force a voting precinct to be split.  A Metropolitan Council district must not include territory in more than one county unless necessary to meet equal-population requirements.  The districts must be numbered in a regular series.

 

(b) The districts must be redrawn within the time provided in section 204B.135, subdivision 2.  Before acting to redistrict, the council must publish in newspapers of general circulation three weeks' notice of its purpose, stating the time and place of the meeting where the matter will be considered.  The council must file a map of the new districts with the secretary of state.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10863

Subd. 3.  Terms.  Members serve a term of four years, except to fill a vacancy.  There must be a new election of all members at the first election after each decennial redistricting and the members elected at that election from districts with odd numbers serve for an initial term of two years.

 

Subd. 4.  Applicability of campaign finance provisions.  An individual who is seeking nomination or election to the Metropolitan Council is a "candidate" under section 10A.01, subdivision 10, for purposes of chapter 10A and is subject to chapter 10A, except as provided in section 473.1245.  For purposes of spending and contribution limits under chapter 10A, a Metropolitan Council candidate shall have the same limits as a state senator.

 

Sec. 10.  [473.1245] METROPOLITAN COUNCIL CAMPAIGN FUND.

 

Subdivision 1.  Funding.  The Metropolitan Council must provide sufficient money to pay the distribution provided for in this section.

 

Subd. 2.  Eligibility.  A candidate is eligible to receive a public subsidy in the amount of $30,000 if the candidate has filed with the board a spending limit agreement under section 10A.322 and an affidavit of contributions under section 10A.323, the candidate was opposed in the primary election or will be opposed in the general election, and the candidate's name will appear on the ballot in the general election.

 

Subd. 3.  Certification.  Within one week after the last day for filing a spending limit agreement under section 10A.322 and an affidavit of contributions under section 10A.323, the board must certify to the Metropolitan Council the maximum number of candidates eligible to receive the public subsidy if they survive the primary election.  Within one week after receiving the certification, the Metropolitan Council must pay the board the amount necessary to fund the public subsidy for that number of candidates.  The amount received must be deposited in the state treasury and credited to a Metropolitan Council public subsidy account in the special revenue fund.  Money in the fund is appropriated to the board for purposes of the public subsidy program.

 

Subd. 4.  Payment.  The board shall pay the public subsidy to the eligible candidates as soon as the board has obtained from the secretary of state the results of the primary election but not later than one week after certification by the State Canvassing Board of the results of the primary.  Amounts not paid to candidates, or returned by them under section 10A.324 to the board, must be returned by the board to the Metropolitan Council."

 

Page 5, after line 2, insert:

 

"Sec. 13.  REPEALER.

 

Minnesota Statutes 2012, section 473.123, subdivisions 2a, 3, and 3a, are repealed."

 

Page 5, line 4, delete "and 7" and insert "to 14"

 

Page 5, after line 5, insert:

 

"Sec. 15.  EFFECTIVE DATE; TRANSITION; REVISOR'S INSTRUCTION.

 

Except as otherwise provided, sections 6 to 10 and 13 are effective beginning with the 2016 election.  For purposes of the 2016 election and until the district boundaries are established under Minnesota Statutes, section 473.124, the districts shall be as established under Minnesota Statutes, section 473.123, subdivision 3e.  Current members shall be appointed and serve under Minnesota Statutes, chapter 473, prior to enactment of this act, until


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10864

their elected successors take office.  Upon the effective date of this section the Metropolitan Council is not an agency under Minnesota Statutes, section 15.0597, subdivision 1, and the revisor of statutes shall remove from Minnesota Statutes any references to the Metropolitan Council as an agency of the state."

 

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 amendment to the amendment and the roll was called.  There were 56 yeas and 74 nays as follows:

 

      Those who voted in the affirmative were:

 


Albright

Anderson, P.

Anderson, S.

Barrett

Beard

Benson, M.

Cornish

Daudt

Davids

Dean, M.

Dettmer

Drazkowski

Erickson, S.

Fabian

Franson

Garofalo

Green

Gruenhagen

Gunther

Hamilton

Hertaus

Hoppe

Howe

Johnson, B.

Kelly

Kiel

Kresha

Leidiger

Lohmer

Loon

Mack

McDonald

McNamara

Myhra

Newberger

Nornes

O'Driscoll

O'Neill

Paymar

Peppin

Petersburg

Pugh

Quam

Rosenthal

Runbeck

Sanders

Schomacker

Scott

Selcer

Swedzinski

Theis

Torkelson

Urdahl

Wills

Woodard

Zerwas


 

      Those who voted in the negative were:

 


Abeler

Allen

Anzelc

Atkins

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Davnie

Dehn, R.

Dill

Dorholt

Erhardt

Erickson, R.

Falk

Faust

Fischer

Freiberg

Fritz

Hackbarth

Halverson

Hansen

Hausman

Hilstrom

Holberg

Hornstein

Hortman

Huntley

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McNamar

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Pelowski

Persell

Poppe

Radinovich

Savick

Sawatzky

Schoen

Simon

Simonson

Slocum

Sundin

Uglem

Wagenius

Ward, J.A.

Ward, J.E.

Winkler

Yarusso

Spk. Thissen


 

 

      The motion did not prevail and the amendment to the amendment was not adopted.

 

 

      The question recurred on the Albright amendment and the roll was called.  There were 60 yeas and 70 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Albright

Anderson, P.

Anderson, S.

Barrett

Beard

Benson, M.

Cornish

Daudt

Davids

Dean, M.

Dettmer

Dill

Drazkowski

Erickson, S.

Fabian

Franson

Garofalo


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10865

Green

Gruenhagen

Gunther

Hackbarth

Hamilton

Hertaus

Holberg

Hoppe

Howe

Johnson, B.

Kelly

Kiel

Kresha

Leidiger

Lohmer

Loon

Mack

McDonald

McNamara

Myhra

Newberger

Nornes

O'Driscoll

O'Neill

Peppin

Petersburg

Pugh

Quam

Rosenthal

Runbeck

Sanders

Schomacker

Scott

Selcer

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wills

Woodard

Zerwas


 

      Those who voted in the negative were:

 


Allen

Anzelc

Atkins

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Davnie

Dehn, R.

Dorholt

Erhardt

Erickson, R.

Falk

Faust

Fischer

Freiberg

Fritz

Halverson

Hansen

Hausman

Hilstrom

Hornstein

Hortman

Huntley

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McNamar

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Paymar

Pelowski

Persell

Poppe

Radinovich

Savick

Sawatzky

Schoen

Simon

Simonson

Slocum

Sundin

Wagenius

Ward, J.A.

Ward, J.E.

Winkler

Yarusso

Spk. Thissen


 

 

      The motion did not prevail and the amendment was not adopted.

 

 

      The Speaker resumed the Chair.

 

 

      S. F. No. 2255, A bill for an act relating to deposits and investments of public funds; granting the Metropolitan Council additional investment authority; making certain conforming technical changes; amending Minnesota Statutes 2012, sections 118A.03, subdivision 5; 118A.04, subdivisions 7, 8; 118A.07; 473.543, subdivision 3.

 

 

      The bill was read for the third time, as amended, and placed upon its final passage.

 

      The question was taken on the passage of the bill and the roll was called.  There were 73 yeas and 57 nays as follows:

 

      Those who voted in the affirmative were:

 


Allen

Anzelc

Atkins

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Davnie

Dehn, R.

Dill

Dorholt

Erhardt

Erickson, R.

Falk

Faust

Fischer

Freiberg

Fritz

Halverson

Hansen

Hausman

Hilstrom

Hornstein

Hortman

Huntley

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McNamar

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Paymar

Pelowski

Persell

Poppe

Radinovich

Rosenthal

Savick

Sawatzky

Schoen

Selcer

Simon

Simonson

Slocum

Sundin

Wagenius

Ward, J.A.

Ward, J.E.

Winkler

Yarusso

Spk. Thissen



Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10866

         Those who voted in the negative were:

 


Abeler

Albright

Anderson, P.

Anderson, S.

Barrett

Beard

Benson, M.

Cornish

Daudt

Davids

Dean, M.

Dettmer

Drazkowski

Erickson, S.

Fabian

Franson

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Hamilton

Hertaus

Holberg

Hoppe

Howe

Johnson, B.

Kelly

Kiel

Kresha

Leidiger

Lohmer

Loon

Mack

McDonald

McNamara

Myhra

Newberger

Nornes

O'Driscoll

O'Neill

Peppin

Petersburg

Pugh

Quam

Runbeck

Sanders

Schomacker

Scott

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wills

Woodard

Zerwas


 

 

      The bill was passed, as amended, and its title agreed to.

 

 

      S. F. No. 2887, A bill for an act relating to transportation; motor vehicles; eliminating barriers to the purchase of electric and plug-in hybrid electric vehicles by state agencies; requiring a report; amending Minnesota Statutes 2012, sections 16C.135, subdivision 3; 16C.137, subdivisions 1, 2; 16C.138, subdivision 2; 160.02, by adding a subdivision.

 

 

      The bill was read for the third time and placed upon its final passage.

 

      The question was taken on the passage of the bill and the roll was called.  There were 119 yeas and 10 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Albright

Allen

Anderson, P.

Anzelc

Atkins

Barrett

Beard

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Daudt

Davids

Davnie

Dean, M.

Dehn, R.

Dill

Dorholt

Erhardt

Erickson, R.

Erickson, S.

Fabian

Falk

Faust

Fischer

Franson

Freiberg

Fritz

Garofalo

Green

Gruenhagen

Gunther

Halverson

Hamilton

Hansen

Hausman

Hilstrom

Holberg

Hoppe

Hornstein

Hortman

Howe

Huntley

Isaacson

Johnson, B.

Johnson, C.

Johnson, S.

Kahn

Kelly

Kiel

Kresha

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McDonald

McNamar

McNamara

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Myhra

Nelson

Newton

Nornes

Norton

O'Driscoll

O'Neill

Paymar

Pelowski

Persell

Petersburg

Poppe

Radinovich

Rosenthal

Runbeck

Sanders

Savick

Sawatzky

Schoen

Schomacker

Scott

Selcer

Simon

Simonson

Slocum

Sundin

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wagenius

Ward, J.A.

Ward, J.E.

Wills

Winkler

Woodard

Yarusso

Zerwas

Spk. Thissen


 

      Those who voted in the negative were:

 


Benson, M.

Dettmer

Drazkowski

Hackbarth

Hertaus

Leidiger

Newberger

Peppin

Pugh

Quam


 

 

      The bill was passed and its title agreed to.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10867

         The following Conference Committee Report was received:

 

 

CONFERENCE COMMITTEE REPORT ON H. F. No. 183

 

A bill for an act relating to data practices; enhancing certain penalties and procedures related to unauthorized access to data by a public employee; amending Minnesota Statutes 2012, sections 13.05, subdivision 5; 13.055; 13.09; 299C.40, subdivision 4.

 

May 14, 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. 183 report that we have agreed upon the items in dispute and recommend as follows:

 

That the Senate recede from its amendments and that H. F. No. 183 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2012, section 13.05, subdivision 5, is amended to read:

 

Subd. 5.  Data protection.  (a) The responsible authority shall:

 

(1) establish procedures to assure that all data on individuals is accurate, complete, and current for the purposes for which it was collected; and

 

(2) establish appropriate security safeguards for all records containing data on individuals, including procedures for ensuring that data that are not public are only accessible to persons whose work assignment reasonably requires access to the data, and is only being accessed by those persons for purposes described in the procedure; and

 

(3) develop a policy incorporating these procedures, which may include a model policy governing access to the data if sharing of the data with other government entities is authorized by law.

 

(b) When not public data is being disposed of, the data must be destroyed in a way that prevents its contents from being determined.

 

Sec. 2.  Minnesota Statutes 2012, section 13.055, is amended to read:

 

13.055 STATE AGENCIES; DISCLOSURE OF BREACH IN SECURITY; NOTIFICATION AND INVESTIGATION REPORT REQUIRED.

 

Subdivision 1.  Definitions.  For purposes of this section, the following terms have the meanings given to them.

 

(a) "Breach of the security of the data" means unauthorized acquisition of data maintained by a state agency government entity that compromises the security and classification of the data.  Good faith acquisition of or access to government data by an employee, contractor, or agent of a state agency government entity for the purposes of the state agency entity is not a breach of the security of the data, if the government data is not provided to or viewable


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10868

by an unauthorized person, or accessed for a purpose not described in the procedures required by section 13.05, subdivision 5.  For purposes of this paragraph, data maintained by a government entity includes data maintained by a person under a contract with the government entity that provides for the acquisition of or access to the data by an employee, contractor, or agent of the government entity.

 

(b) "Contact information" means either name and mailing address or name and e-mail address for each individual who is the subject of data maintained by the state agency government entity.

 

(c) "Unauthorized acquisition" means that a person has obtained, accessed, or viewed government data without the informed consent of the individuals who are the subjects of the data or statutory authority and with the intent to use the data for nongovernmental purposes.

 

(d) "Unauthorized person" means any person who accesses government data without permission or without a work assignment that reasonably requires the person to have access to the data, or regardless of the person's work assignment, for a purpose not described in the procedures required by section 13.05, subdivision 5.

 

Subd. 2.  Notice to individuals; investigation report.  (a) A state agency government entity that collects, creates, receives, maintains, or disseminates private or confidential data on individuals must disclose any breach of the security of the data following discovery or notification of the breach.  Written notification must be made to any individual who is the subject of the data and whose private or confidential data was, or is reasonably believed to have been, acquired by an unauthorized person and must inform the individual that a report will be prepared under paragraph (b), how the individual may obtain access to the report, and that the individual may request delivery of the report by mail or e-mail.  The disclosure must be made in the most expedient time possible and without unreasonable delay, consistent with (1) the legitimate needs of a law enforcement agency as provided in subdivision 3; or (2) any measures necessary to determine the scope of the breach and restore the reasonable security of the data.

 

(b) Notwithstanding section 13.15 or 13.37, upon completion of an investigation into any breach in the security of data and final disposition of any disciplinary action for purposes of section 13.43, including exhaustion of all rights of appeal under any applicable collective bargaining agreement, the responsible authority shall prepare a report on the facts and results of the investigation.  If the breach involves unauthorized access to or acquisition of data by an employee, contractor, or agent of the government entity, the report must at a minimum include:

 

(1) a description of the type of data that were accessed or acquired;

 

(2) the number of individuals whose data was improperly accessed or acquired;

 

(3) if there has been final disposition of disciplinary action for purposes of section 13.43, the name of each employee determined to be responsible for the unauthorized access or acquisition, unless the employee was performing duties under chapter 5B; and

 

(4) the final disposition of any disciplinary action taken against each employee in response.

 

Subd. 3.  Delayed notice.  The notification required by this section may be delayed if a law enforcement agency determines that the notification will impede an active criminal investigation.  The notification required by this section must be made after the law enforcement agency determines that it will not compromise the investigation.

 

Subd. 4.  Method of notice.  Notice under this section may be provided by one of the following methods:

 

(a) written notice by first class mail to each affected individual;


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10869

(b) electronic notice to each affected individual, if the notice provided is consistent with the provisions regarding electronic records and signatures as set forth in United States Code, title 15, section 7001; or

 

(c) substitute notice, if the state agency government entity demonstrates that the cost of providing the written notice required by paragraph (a) would exceed $250,000, or that the affected class of individuals to be notified exceeds 500,000, or the state agency government entity does not have sufficient contact information.  Substitute notice consists of all of the following:

 

(i) e-mail notice if the state agency government entity has an e-mail address for the affected individuals;

 

(ii) conspicuous posting of the notice on the Web site page of the state agency government entity, if the state agency government entity maintains a Web site; and

 

(iii) notification to major media outlets that reach the general public within the government entity's jurisdiction.

 

Subd. 5.  Coordination with consumer reporting agencies.  If the state agency government entity discovers circumstances requiring notification under this section of more than 1,000 individuals at one time, the state agency government entity must also notify, without unreasonable delay, all consumer reporting agencies that compile and maintain files on consumers on a nationwide basis, as defined in United States Code, title 15, section 1681a, of the timing, distribution, and content of the notices.

 

Subd. 6.  Security assessments.  At least annually, each government entity shall conduct a comprehensive security assessment of any personal information maintained by the government entity.  For the purposes of this subdivision, personal information is defined under section 325E.61, subdivision 1, paragraphs (e) and (f).

 

Subd. 7.  Access to data for audit purposes.  Nothing in this section or section 13.05, subdivision 5, restricts access to not public data by the legislative auditor or state auditor in the performance of official duties.

 

EFFECTIVE DATE.  This section is effective August 1, 2014, and applies to security breaches occurring on or after that date.

 

Sec. 3.  Minnesota Statutes 2012, section 13.09, is amended to read:

 

13.09 PENALTIES.

 

(a) Any person who willfully violates the provisions of this chapter or any rules adopted under this chapter or whose conduct constitutes the knowing unauthorized acquisition of not public data, as defined in section 13.055, subdivision 1, is guilty of a misdemeanor.

 

(b) Willful violation of this chapter by, including any action subject to a criminal penalty under paragraph (a), by any public employee constitutes just cause for suspension without pay or dismissal of the public employee.

 

EFFECTIVE DATE.  This section is effective August 1, 2014, and applies to crimes committed on or after that date.

 

Sec. 4.  Minnesota Statutes 2012, section 299C.40, subdivision 4, is amended to read:

 

Subd. 4.  Data classification; general rule; changes in classification; audit trail.  (a) The classification of data in the law enforcement agency does not change after the data is submitted to CIBRS.  If CIBRS is the only source of data made public by section 13.82, subdivisions 2, 3, 6, and 7, data described in those subdivisions must be downloaded and made available to the public as required by section 13.03.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10870

(b) Data on individuals created, collected, received, maintained, or disseminated by CIBRS is classified as confidential data on individuals as defined in section 13.02, subdivision 3, and becomes private data on individuals as defined in section 13.02, subdivision 12, as provided by this section.

 

(c) Data not on individuals created, collected, received, maintained, or disseminated by CIBRS is classified as protected nonpublic data as defined in section 13.02, subdivision 13, and becomes nonpublic data as defined in section 13.02, subdivision 9, as provided by this section.

 

(d) Confidential or protected nonpublic data created, collected, received, maintained, or disseminated by CIBRS must automatically change classification from confidential data to private data or from protected nonpublic data to nonpublic data on the earlier of the following dates:

 

(1) upon receipt by CIBRS of notice from a law enforcement agency that an investigation has become inactive; or

 

(2) when the data has not been updated by the law enforcement agency that submitted it for a period of 120 days.

 

(e) For the purposes of this section, an investigation becomes inactive upon the occurrence of any of the events listed in section 13.82, subdivision 7, clauses (a) to (c).

 

(f) Ten days before making a data classification change because data has not been updated, CIBRS must notify the law enforcement agency that submitted the data that a classification change will be made on the 120th day.  The notification must inform the law enforcement agency that the data will retain its classification as confidential or protected nonpublic data if the law enforcement agency updates the data or notifies CIBRS that the investigation is still active before the 120th day.  A new 120-day period begins if the data is updated or if a law enforcement agency notifies CIBRS that an active investigation is continuing.

 

(g) A law enforcement agency that submits data to CIBRS must notify CIBRS if an investigation has become inactive so that the data is classified as private data or nonpublic data.  The law enforcement agency must provide this notice to CIBRS within ten days after an investigation becomes inactive.

 

(h) All queries and responses and all actions in which data is submitted to CIBRS, changes classification, or is disseminated by CIBRS to any law enforcement agency must be recorded in the CIBRS audit trail.

 

(i) Notwithstanding paragraphs (b) and (c), the name of each law enforcement agency that submits data to CIBRS, and a general description of the types of data submitted by the agency, are public."

 

Delete the title and insert:

 

"A bill for an act relating to data practices; enhancing certain penalties and procedures related to unauthorized access to data by a public employee; requiring disclosure of certain data related to use of the CIBRS law enforcement database; amending Minnesota Statutes 2012, sections 13.05, subdivision 5; 13.055; 13.09; 299C.40, subdivision 4."

 

 

We request the adoption of this report and repassage of the bill.

 

House Conferees:  Mary Liz Holberg, Debra Hilstrom and Melissa Hortman.

 

Senate Conferees:  D. Scott Dibble, Kathy Sheran and Warren Limmer.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10871

         Holberg moved that the report of the Conference Committee on H. F. No. 183 be adopted and that the bill be repassed as amended by the Conference Committee.  The motion prevailed.

 

 

H. F. No. 183, A bill for an act relating to data practices; enhancing certain penalties and procedures related to unauthorized access to data by a public employee; amending Minnesota Statutes 2012, sections 13.05, subdivision 5; 13.055; 13.09; 299C.40, subdivision 4.

 

 

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

 

      The question was taken on the repassage of the bill and the roll was called.  There were 131 yeas and 0 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Albright

Allen

Anderson, P.

Anderson, S.

Anzelc

Atkins

Barrett

Beard

Benson, J.

Benson, M.

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Daudt

Davids

Davnie

Dean, M.

Dehn, R.

Dettmer

Dill

Dorholt

Drazkowski

Erhardt

Erickson, R.

Erickson, S.

Fabian

Falk

Faust

Fischer

FitzSimmons

Franson

Freiberg

Fritz

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Halverson

Hamilton

Hansen

Hausman

Hertaus

Hilstrom

Holberg

Hoppe

Hornstein

Hortman

Howe

Huntley

Isaacson

Johnson, B.

Johnson, C.

Johnson, S.

Kahn

Kelly

Kiel

Kresha

Laine

Leidiger

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McDonald

McNamar

McNamara

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Myhra

Nelson

Newberger

Newton

Nornes

Norton

O'Driscoll

O'Neill

Paymar

Pelowski

Peppin

Persell

Petersburg

Poppe

Pugh

Quam

Radinovich

Rosenthal

Runbeck

Sanders

Savick

Sawatzky

Schoen

Schomacker

Scott

Selcer

Simon

Simonson

Slocum

Sundin

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wagenius

Ward, J.A.

Ward, J.E.

Wills

Winkler

Woodard

Yarusso

Zerwas

Spk. Thissen


 

 

      The bill was repassed, as amended by Conference, and its title agreed to.

 

 

      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 the Speaker.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10872

CALENDAR FOR THE DAY, Continued

 

 

      S. F. No. 1770 was reported to the House.

 

 

      Lesch moved to amend S. F. No. 1770, the third engrossment, as follows:

 

      Delete everything after the enacting clause and insert the following language of H. F. No. 2167, the first engrossment:

 

"Section 1.  Minnesota Statutes 2012, section 13.05, subdivision 11, is amended to read:

 

Subd. 11.  Privatization.  (a) If a government entity enters into a contract with a private person to perform any of its functions, the government entity shall include in the contract terms that make it clear that all of the data created, collected, received, stored, used, maintained, or disseminated by the private person in performing those functions is subject to the requirements of this chapter and that the private person must comply with those requirements as if it were a government entity.  All contracts entered into by a government entity must include a notice that the requirements of this subdivision apply to the contract.  Failure to include the notice in the contract does not invalidate the application of this subdivision.  The remedies in section 13.08 apply to the private person under this subdivision.

 

(b) This subdivision does not create a duty on the part of the private person to provide access to public data to the public if the public data are available from the government entity, except as required by the terms of the contract."

 

      Delete the title and insert:

 

"A bill for an act relating to data practices; clarifying application of government data practices act to parties contracting with a government entity; amending Minnesota Statutes 2012, section 13.05, subdivision 11."

 

 

      The motion prevailed and the amendment was adopted.

 

 

Hortman moved to amend S. F. No. 1770, the third engrossment, as amended, as follows:

 

Page 1, after line 19, insert:

 

"Sec. 2.  [13.387] HEALTH CARE CONTRACT DATA.

 

The provisions of section 13.05, subdivision 11, requiring public access to certain data of private persons performing a government function, do not apply to health plan companies, managed care organizations, county-based purchasing plans, third-party administrators, providers, or other vendors, or their parent or subsidiary, contracting with a government entity for health care related services.  This section expires on June 30, 2015.

 

Sec. 3.  HEALTH CARE STUDY.

 

The commissioner of human services, in consultation with interested stakeholders and other state agencies, shall study public policy issues related to application of Minnesota Statutes, section 13.05, subdivision 11, to the entities listed in section 2 and the economic impact on the health care market.  The commissioner shall submit a report to the chairs and ranking minority members of the committees of the legislature with jurisdiction over health and human services policy and finance and data practices by December 21, 2014.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10873

Sec. 4.  EFFECTIVE DATE.

 

This act is effective the day following final enactment."

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.

 

 

Bly moved to amend the Hortman amendment to S. F. No. 1770, the third engrossment, as amended, as follows:

 

Page 1, line 5, delete ", requiring public access to certain"

 

Page 1, line 6, delete "data of private persons performing a government function, do not"

 

Page 1, line 9, delete "expires on" and insert "is effective"

 

Page 1, line 18, before "This" insert "Except where otherwise provided,"

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the amendment to the amendment and the roll was called.  There were 117 yeas and 14 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Albright

Allen

Anderson, P.

Anderson, S.

Atkins

Barrett

Beard

Benson, J.

Benson, M.

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Daudt

Davnie

Dean, M.

Dehn, R.

Dettmer

Dorholt

Drazkowski

Erhardt

Erickson, R.

Erickson, S.

Fabian

Falk

Faust

Fischer

Franson

Freiberg

Fritz

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Halverson

Hamilton

Hansen

Hausman

Hertaus

Hilstrom

Holberg

Hoppe

Hornstein

Hortman

Howe

Huntley

Isaacson

Johnson, B.

Johnson, C.

Johnson, S.

Kahn

Kelly

Kiel

Kresha

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McNamar

McNamara

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newberger

Newton

Nornes

Norton

O'Driscoll

Paymar

Pelowski

Peppin

Persell

Petersburg

Poppe

Pugh

Radinovich

Rosenthal

Runbeck

Sanders

Sawatzky

Schoen

Selcer

Simon

Slocum

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wagenius

Ward, J.A.

Ward, J.E.

Wills

Winkler

Yarusso

Zellers

Zerwas

Spk. Thissen


 

      Those who voted in the negative were:

 


Anzelc

Davids

Dill

Leidiger

McDonald

Myhra

O'Neill

Quam

Savick

Schomacker

Scott

Simonson

Sundin

Woodard


 

 

      The motion prevailed and the amendment to the amendment was adopted.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10874

Liebling moved to amend the Hortman amendment, as amended, to S. F. No. 1770, the third engrossment, as amended, as follows:

 

Page 1, delete section 2 and insert:

 

"Sec. 2.  [13.387] HEALTH CARE CONTRACT DATA.

 

Section 13.05, subdivision 11, requiring public access to certain data of private persons performing a government function, permits legislators acting within the scope of their legislative duties to access data from health plan companies, managed care organizations, county-based purchasing plans, third-party administrators, providers, or other vendors, or their parent or subsidiary, contracting with a government entity for health care related services."

 

 

      A roll call was requested and properly seconded.

 

 

      The question was taken on the amendment to the amendment and the roll was called.  There were 39 yeas and 92 nays as follows:

 

      Those who voted in the affirmative were:

 


Allen

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Davnie

Dehn, R.

Dorholt

Erickson, S.

Falk

Fischer

Garofalo

Hansen

Hausman

Hilstrom

Holberg

Hornstein

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lesch

Liebling

Lillie

Loeffler

Mariani

Masin

McNamara

Metsa

Murphy, M.

Paymar

Savick

Scott

Simon

Simonson

Wagenius


 

      Those who voted in the negative were:

 


Abeler

Albright

Anderson, P.

Anderson, S.

Anzelc

Atkins

Barrett

Beard

Benson, J.

Benson, M.

Daudt

Davids

Dean, M.

Dettmer

Dill

Drazkowski

Erhardt

Erickson, R.

Fabian

Faust

FitzSimmons

Franson

Freiberg

Fritz

Green

Gruenhagen

Gunther

Hackbarth

Halverson

Hamilton

Hertaus

Hoppe

Hortman

Howe

Huntley

Johnson, B.

Kelly

Kiel

Kresha

Leidiger

Lenczewski

Lien

Lohmer

Loon

Mack

Mahoney

Marquart

McDonald

McNamar

Moran

Morgan

Mullery

Murphy, E.

Myhra

Nelson

Newberger

Newton

Nornes

Norton

O'Driscoll

O'Neill

Pelowski

Peppin

Persell

Petersburg

Poppe

Pugh

Quam

Radinovich

Rosenthal

Runbeck

Sanders

Sawatzky

Schoen

Schomacker

Selcer

Slocum

Sundin

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Ward, J.A.

Ward, J.E.

Wills

Winkler

Woodard

Yarusso

Zellers

Zerwas

Spk. Thissen


 

 

      The motion did not prevail and the amendment to the amendment was not adopted.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10875

         The question recurred on the Hortman amendment, as amended, and the roll was called.  There were 70 yeas and 57 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Albright

Anderson, S.

Atkins

Barrett

Benson, J.

Benson, M.

Davids

Davnie

Dean, M.

Dehn, R.

Drazkowski

Erhardt

Erickson, R.

Fabian

Faust

Fritz

Green

Gruenhagen

Gunther

Halverson

Hoppe

Hortman

Huntley

Johnson, B.

Johnson, C.

Kahn

Kelly

Kiel

Kresha

Leidiger

Lenczewski

Lien

Lillie

Lohmer

Loon

Mack

Mahoney

Marquart

Moran

Morgan

Mullery

Murphy, E.

Nelson

Newberger

Newton

Nornes

Norton

Pelowski

Persell

Petersburg

Poppe

Pugh

Quam

Rosenthal

Sanders

Schoen

Schomacker

Scott

Selcer

Slocum

Uglem

Urdahl

Wagenius

Ward, J.E.

Woodard

Yarusso

Zellers

Zerwas

Spk. Thissen


 

      Those who voted in the negative were:

 


Allen

Anderson, P.

Anzelc

Beard

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Daudt

Dettmer

Dill

Dorholt

Erickson, S.

Falk

Fischer

Franson

Freiberg

Garofalo

Hackbarth

Hamilton

Hansen

Hausman

Hertaus

Hilstrom

Holberg

Hornstein

Howe

Isaacson

Johnson, S.

Laine

Lesch

Liebling

Loeffler

Mariani

Masin

McNamar

McNamara

Metsa

Murphy, M.

Myhra

O'Driscoll

Paymar

Peppin

Runbeck

Savick

Sawatzky

Simon

Simonson

Sundin

Swedzinski

Theis

Torkelson

Ward, J.A.

Wills

Winkler


 

 

      The motion prevailed and the amendment, as amended, was adopted.

 

 

      Murphy, E., 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.

 

 

      Hoppe was excused between the hours of 5:35 p.m. and 11:05 p.m.

 

      Pugh was excused between the hours of 5:35 p.m. and 11:15 p.m.

 

 

CALENDAR FOR THE DAY, Continued

 

 

Holberg moved to amend S. F. No. 1770, the third engrossment, as amended, as follows:

 

Page 1, after line 19, insert:

 

"Sec. 2.  Minnesota Statutes 2012, section 168.327, subdivision 1, is amended to read:


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10876

Subdivision 1.  Records and fees.  (a) Upon request by any person authorized in this section, the commissioner shall furnish a certified copy of any driver's license record, instruction permit record, Minnesota identification card record, vehicle registration record, vehicle title record, or accident record.

 

(b) Other than accident records governed under section 169.09, subdivision 13, the requester shall pay a fee of $10 for each certified record specified in paragraph (a) or a fee of $9 for each record that is not certified.

 

(c) In addition to the record fee in paragraph (b), the fee for a copy of the history of any vehicle title not in electronic format is $1 for each page of the historical record.

 

(d) Fees collected under paragraph (b) for driver's license, instruction permit, and Minnesota identification card records must be paid into the state treasury with 50 cents of each fee credited to the general fund.  The remainder of the fees collected must be credited to the driver services operating account in the special revenue fund under section 299A.705.

 

(e) Fees collected under paragraphs (b) and (c) for vehicle registration or title records must be paid into the state treasury with 50 cents of each fee credited to the general fund.  The remainder of the fees collected must be credited to the vehicle services operating account in the special revenue fund specified in section 299A.705.

 

(f) The commissioner shall permit a person to inquire into a single record by the person's own electronic means for a fee of $4.50 for each inquiry, except that no fee may be charged when the requester is the subject of the data.  Fees collected under this paragraph must be deposited as follows:

 

(1) Of the $4.50 fee, $2.70 must be deposited in the general fund.;

 

(2) for driver's license, instruction permit, or Minnesota identification card records, the remainder must be deposited in the driver services operating account in the special revenue fund under section 299A.705.; and

 

(3) for vehicle title or registration records, the remainder must be deposited in the vehicle services operating account in the special revenue fund under section 299A.705.

 

(g) Fees and the deposit of the fees for accident records and reports are governed by section 169.09, subdivision 13.

 

(h) The commissioner may impose fees for a requester to inquire, through the requester's own electronic means, into data in bulk form, as provided under sections 168.346, subdivision 1, and 171.12, subdivision 7.  The fee structure must match that in use on January 1, 2014.  The fees (1) are in lieu of the fee imposed under paragraph (f) and the surcharge under subdivision 2; and (2) must not exceed any that would have been imposed on January 1, 2014, for a comparable bulk data inquiry.

 

(i) Fees collected under paragraph (h) must be deposited as follows:

 

(1) for driver's license, instruction permit, or Minnesota identification card records, in the driver services operating account; and

 

(2) for vehicle title or registration records, in the vehicle services operating account.

 

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


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10877

Sec. 3.  Minnesota Statutes 2012, section 168.346, subdivision 1, is amended to read:

 

Subdivision 1.  Vehicle registration data; federal compliance.  (a) Data on an individual provided to register a vehicle shall be treated as provided by United States Code, title 18, section 2721, as in effect on May 23, 2005, and shall be disclosed as required or permitted by that section.  The commissioner shall disclose the data in bulk form to an authorized recipient upon request for any of the permissible uses described in United States Code, title 18, section 2721.

 

(b) The registered owner of a vehicle who is an individual may consent in writing to the commissioner to disclose the individual's personal information exempted by United States Code, title 18, section 2721, to any person who makes a written request for the personal information.  If the registered owner is an individual and so authorizes disclosure, the commissioner shall implement the request.

 

(c) If authorized by the registered owner as indicated in paragraph (b), the registered owner's personal information may be used, rented, or sold solely for bulk distribution by organizations for business purposes including surveys, marketing, or solicitation.

 

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

 

Sec. 4.  Minnesota Statutes 2012, section 171.12, subdivision 7, is amended to read:

 

Subd. 7.  Privacy of data.  (a) Data on individuals provided to obtain a driver's license or Minnesota identification card shall be treated as provided by United States Code, title 18, section 2721, as in effect on May 23, 2005, and shall be disclosed as required or permitted by that section.  The commissioner shall disclose the data in bulk form upon request to an authorized recipient under United States Code, title 18, section 2721.

 

(b) An applicant for a driver's license or a Minnesota identification card may consent, in writing, to the commissioner to disclose the applicant's personal information exempted by United States Code, title 18, section 2721, to any person who makes a request for the personal information.  If the applicant so authorizes disclosures, the commissioner shall implement the request and the information may be used.

 

(c) If authorized by an applicant for a driver's license or a Minnesota identification card, as indicated in paragraph (b), the applicant's personal information may be used, rented, or sold solely for bulk distribution by organizations for business purposes, including surveys, marketing, or solicitation.

 

(d) An applicant for a driver's license, instruction permit, or Minnesota identification card may request that the applicant's residence address be classified as "private data on individuals," as defined in section 13.02, subdivision 12.  The commissioner shall grant the classification on receipt of a signed statement by the individual that the classification is required for the safety of the applicant or the applicant's family, if the statement also provides a valid, existing address where the applicant consents to receive service of process.  The commissioner shall use the service for process mailing address in place of the residence address in all documents and notices pertaining to the driver's license, instruction permit, or Minnesota identification card.  The residence address and any information provided in the classification request, other than the mailing address, are private data on individuals and may be provided to requesting law enforcement agencies, probation and parole agencies, and public authorities, as defined in section 518A.26, subdivision 18.

 

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

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10878

Holberg moved to amend her amendment to S. F. No. 1770, the third engrossment, as amended, as follows:

 

Page 1, after line 2, insert:

 

"Page 1, after line 5, insert:

 

"Section 1.  Minnesota Statutes 2012, section 3.9741, is amended by adding a subdivision to read:

 

Subd. 5.  State data security; account, appropriation.  (a) The data security account is created in the special revenue fund.  Receipts credited to the account are appropriated to the legislative auditor for the purpose of oversight relating to security of data stored and transmitted by state systems.

 

(b) Subject to available funds appropriated under paragraph (a), the legislative auditor shall:

 

(1) review and audit the audit reports of subscribers and requesters submitted under section 168.327, subdivision 6, including producing findings and opinions;

 

(2) in collaboration with the commissioner and affected subscribers and requesters, recommend corrective action plans to remediate any deficiencies identified under clause (1); and

 

(3) review and audit driver records subscription services and bulk data practices of the Department of Public Safety, including identifying any deficiencies and making recommendations to the commissioner.

 

(c) The legislative auditor shall submit any reports, findings, and recommendations under this subdivision to the legislative commission on data practices.""

 

Page 1, delete lines 4 to 26 and insert:

 

"Sec. 3.  Minnesota Statutes 2012, section 168.327, subdivision 1, is amended to read:

 

Subdivision 1.  Records and fees.  (a) Upon request by any person authorized in this section, the commissioner shall furnish a certified copy of any driver's license record, instruction permit record, Minnesota identification card record, vehicle registration record, vehicle title record, or accident record.

 

(b) Except as provided in subdivisions 4 and 5, and other than accident records governed under section 169.09, subdivision 13, the requester shall pay a fee of $10 for each certified record specified in paragraph (a) or a fee of $9 for each record that is not certified.

 

(c) Except as provided in subdivisions 4 and 5, in addition to the record fee in paragraph (b), the fee for a copy of the history of any vehicle title not in electronic format is $1 for each page of the historical record.

 

(d) Fees collected under paragraph (b) for driver's license, instruction permit, and Minnesota identification card records must be paid into the state treasury with 50 cents of each fee credited to the general fund.  The remainder of the fees collected must be credited to the driver services operating account in the special revenue fund under section 299A.705.

 

(e) Fees collected under paragraphs (b) and (c) for vehicle registration or title records must be paid into the state treasury with 50 cents of each fee credited to the general fund.  The remainder of the fees collected must be credited to the vehicle services operating account in the special revenue fund specified in section 299A.705.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10879

(f) Except as provided in subdivisions 4 and 5, the commissioner shall permit a person to inquire into a record by the person's own electronic means for a fee of $4.50 for each inquiry, except that no fee may be charged when the requester is the subject of the data.

 

(1) Of the $4.50 fee, $2.70 must be deposited in the general fund.

 

(2) For driver's license, instruction permit, or Minnesota identification card records, the remainder must be deposited in the driver services operating account in the special revenue fund under section 299A.705.

 

(3) For vehicle title or registration records, the remainder must be deposited in the vehicle services operating account in the special revenue fund under section 299A.705.

 

(g) Fees and the deposit of the fees for accident records and reports are governed by section 169.09, subdivision 13.

 

Sec. 4.  Minnesota Statutes 2012, section 168.327, is amended by adding a subdivision to read:

 

Subd. 4.  Driver records subscription service.  (a) The commissioner may implement a driver records subscription service to provide information concerning access to driver license, instruction permit, and identification card records, including regular notice of records that have changed, to subscribers who:

 

(1) pay applicable fees; and

 

(2) are approved by the commissioner in accordance with sections 168.346 and 171.12, and United States Code, title 18, section 2721.

 

(b) If a driver records subscription service is implemented, the commissioner shall establish a fee that does not exceed $3,680 per month for a subscription to the service.  Fees collected under this paragraph must be credited to the driver services operating account in the special revenue fund under section 299A.705, and are appropriated to the commissioner for the purposes in paragraph (a) and this paragraph.

 

(c) If a driver records subscription service is implemented, the commissioner shall establish a fee that does not exceed $0.01 per driver record requested.  Of the fees collected under this paragraph, 40 percent must be credited to the driver services operating account in the special revenue fund under section 299A.705 and is appropriated to the commissioner for the purposes in this subdivision, and 60 percent must be credited to the data security account in the special revenue fund under section 3.9741, subdivision 5.

 

Sec. 5.  Minnesota Statutes 2012, section 168.327, is amended by adding a subdivision to read:

 

Subd. 5.  Bulk vehicle records requests.  (a) "Bulk vehicle records" in this section is a total of 1,000 or more vehicle title records and vehicle registration records.

 

(b) The commissioner shall establish a fee that does not exceed $0.01 per record for a request of bulk vehicle records.

 

(c) Of the fees collected, 40 percent must be credited to the vehicle services operating account in the special revenue fund under section 299A.705 and is appropriated to the commissioner for the purposes in this subdivision, and 60 percent must be credited to the data security account in the special revenue fund under section 3.9741, subdivision 5.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10880

Sec. 6.  Minnesota Statutes 2012, section 168.327, is amended by adding a subdivision to read:

 

Subd. 6.  Review and audit of purchases of bulk driver and motor vehicle records.  Each subscriber and each requester of bulk vehicle records shall engage an independent professional organization to audit its uses of bulk data and its information technology security procedures, including the methods and practices employed in the processing and use of driver and vehicle services data.  Within 30 days of the date of the audit report, each subscriber and requester must submit each report to the legislative auditor and the commissioner."

 

Page 2, delete lines 1 to 18

 

Page 2, delete line 34

 

Page 3, delete line 28

 

Page 3, after line 28, insert:

 

"Sec. 9.  REVIEW OF ISSUES RELATED TO THE USE OF STATE MOTOR VEHICLE AND DRIVER'S LICENSE RECORDS.

 

(a) The legislative commission on data practices shall study issues relating to disclosure of motor vehicle registration and driver's license data in bulk form.  The study and analysis must include:

 

(1) any violations of the federal law or breaches of security by purchasers of bulk data since passage of this act;

 

(2) program audit requirements and practices, and the results of reviews and audits of bulk purchasers of data presented by the legislative auditor;

 

(3) revenues received from the sale of bulk data and the costs associated with providing the data, including options for fees and charges to provide access to the data;

 

(4) any options for continued bulk transfer of data, including quality and timing, and alternatives to bulk transfer that will facilitate the disclosure of data for purposes that are required under federal law while ensuring data privacy and security; and

 

(5) the operation of the subscription service established under Minnesota Statutes, section 168.327, subdivision 4.

 

As used in this section "the federal law" means United States Code, title 18, sections 2721 to 2725.

 

(b) In conducting the review required by this section, the commission shall invite the input and participation of a cross-section of private and governmental entities that obtain and use motor vehicle registration and driver's license data pursuant to Minnesota Statutes, sections 168.346 and 171.12, and consumer advocates and data privacy experts.

 

Sec. 10.  EFFECTIVE DATE.

 

Sections 1 and 3 to 9 are effective January 1, 2015."

 

Renumber the sections in sequence and correct the internal references

 

Amend the title accordingly

 

 

      A roll call was requested and properly seconded.


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10881

         The question was taken on the amendment to the amendment and the roll was called.  There were 106 yeas and 21 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Allen

Anderson, P.

Anderson, S.

Anzelc

Atkins

Barrett

Beard

Benson, J.

Benson, M.

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Daudt

Davnie

Dettmer

Dill

Dorholt

Drazkowski

Erhardt

Erickson, R.

Fabian

Falk

Faust

Fischer

FitzSimmons

Freiberg

Fritz

Garofalo

Green

Gruenhagen

Gunther

Halverson

Hansen

Hausman

Hertaus

Hilstrom

Hortman

Huntley

Isaacson

Johnson, B.

Johnson, C.

Kahn

Kelly

Kresha

Laine

Leidiger

Lenczewski

Lien

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Marquart

Masin

McDonald

McNamar

McNamara

Metsa

Morgan

Mullery

Murphy, E.

Murphy, M.

Myhra

Nelson

Newberger

Newton

Nornes

Norton

O'Driscoll

O'Neill

Pelowski

Persell

Petersburg

Poppe

Quam

Radinovich

Rosenthal

Sanders

Savick

Sawatzky

Schoen

Schomacker

Selcer

Simon

Simonson

Slocum

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wagenius

Ward, J.A.

Ward, J.E.

Wills

Winkler

Yarusso

Zellers

Zerwas

Spk. Thissen


 

      Those who voted in the negative were:

 


Albright

Davids

Dean, M.

Dehn, R.

Erickson, S.

Franson

Hackbarth

Hamilton

Holberg

Hornstein

Howe

Johnson, S.

Kiel

Lesch

Liebling

Moran

Peppin

Runbeck

Scott

Sundin

Woodard


 

 

      The motion prevailed and the amendment to the amendment was adopted.

 

 

      The question recurred on the Holberg amendment, as amended, to S. F. No. 1770, the third engrossment, as amended.  The motion prevailed and the amendment, as amended, was adopted.

 

 

      S. F. No. 1770, A bill for an act relating to data practices; clarifying application of government data practices act to parties contracting with a government entity; amending Minnesota Statutes 2012, section 13.05, subdivision 11; proposing coding for new law in Minnesota Statutes, chapter 13.

 

 

      The bill was read for the third time, as amended, and placed upon its final passage.

 

      The question was taken on the passage of the bill and the roll was called.  There were 130 yeas and 0 nays as follows:

 

      Those who voted in the affirmative were:

 


Abeler

Albright

Allen

Anderson, P.

Anderson, S.

Anzelc

Atkins

Barrett

Beard

Benson, J.

Benson, M.

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Daudt

Davids

Davnie

Dean, M.

Dehn, R.

Dettmer

Dill


Journal of the House - 105th Day - Thursday, May 15, 2014 - Top of Page 10882

Dorholt

Drazkowski

Erhardt

Erickson, R.

Erickson, S.

Fabian

Falk

Faust

Fischer

FitzSimmons

Franson

Freiberg

Fritz

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Halverson

Hamilton

Hansen

Hausman

Hertaus

Hilstrom

Holberg

Hornstein

Hortman

Howe

Huntley

Isaacson

Johnson, B.

Johnson, C.

Johnson, S.

Kahn

Kelly

Kiel

Kresha

Laine

Leidiger

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Lohmer

Loon

Mack

Mahoney

Mariani

Marquart

Masin

McDonald

McNamar

McNamara

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Myhra

Nelson

Newberger

Newton

Nornes

Norton

O'Driscoll

O'Neill

Paymar

Pelowski

Peppin

Persell

Petersburg

Poppe

Quam

Radinovich

Rosenthal

Runbeck

Sanders

Savick

Sawatzky

Schoen

Schomacker

Scott

Selcer

Simon

Simonson

Slocum

Sundin

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wagenius

Ward, J.A.

Ward, J.E.

Wills

Winkler

Woodard

Yarusso

Zellers

Zerwas

Spk. Thissen


 

 

      The bill was passed, as amended, and its title agreed to.

 

 

      Davids was excused between the hours of 6:30 p.m. and 7:45 p.m.

 

      Gruenhagen was excused between the hours of 6:30 p.m. and 9:55 p.m.

 

 

      The following Conference Committee Report was received:

 

 

CONFERENCE COMMITTEE REPORT ON H. F. No. 2402

 

A bill for an act relating to state government; making changes to health and human services policy provisions; modifying provisions relating to children and family services, the provision of health services, chemical and mental health services, health-related occupations, Department of Health, public health, continuing care, public assistance programs, and health care; establishing reporting requirements and grounds for disciplinary action for health professionals; making changes to the medical assistance program; modifying provisions governing juvenile safety and placement; regulating the sale and use of tobacco-related and electronic delivery devices; modifying requirements for local boards of health; making changes to provisions governing the Board of Pharmacy; modifying home and community-based services standards; revising the Minnesota family investment program; establishing and modifying task forces and advisory councils; making changes to grant programs; modifying certain penalty fees; requiring studies and reports; amending Minnesota Statutes 2012, sections 13.46, subdivision 2; 62J.497, subdivision 5; 119B.02, subdivision 2; 119B.09, subdivisions 6, 13; 144.1501, subdivision 1; 144.414, by adding a subdivision; 144.4165; 144D.065; 144E.101, subdivision 6; 145.928, by adding a subdivision; 145A.02, subdivisions 5, 15, by adding subdivisions; 145A.03, subdivisions 1, 2, 4, 5, by adding a subdivision; 145A.04, as amended; 145A.05, subdivision 2; 145A.06, subdivisions 2, 5, 6, by adding subdivisions; 145A.07, subdivisions 1, 2; 145A.08; 145A.11, subdivision 2; 145A.131; 148.01, subdivisions 1, 2, by adding a subdivision; 148.105, subdivision 1; 148.6402, subdivision 17; 148.6404; 148.6430; 148.6432, subdivision 1; 148.7802, subdivisions 3, 9; 148.7803, subdivision 1; 148.7805, subdivision 1; 148.7808, subdivisions 1, 4; 148.7812, subdivision 2; 148.7813, by adding a subdivision; 148.7814; 148.995, subdivision 2; 148B.5301, subdivisions 2, 4; 149A.92, by adding a subdivision; 150A.01, subdivision 8a; 150A.06, subdivisions 1, 1a, 1c, 1d, 2, 2a, 2d, 3, 8; 150A.091, subdivision 16; 150A.10; 151.01; 151.06; 151.211; 151.26; 151.34; 151.35; 151.361, subdivision 2; 151.37, as amended; 151.44; 151.58, subdivisions 2, 3, 5; 153.16, subdivisions 1, 2, 3, by adding subdivisions; 214.103, subdivisions 2, 3;


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214.12, by adding a subdivision; 214.29; 214.31; 214.32; 214.33, subdivision 3, by adding a subdivision; 245A.02, subdivision 19; 245A.03, subdivision 6a; 245A.155, subdivisions 1, 2, 3; 245A.65, subdivision 2; 245C.04, by adding a subdivision; 253B.092, subdivision 2; 254B.01, by adding a subdivision; 254B.05, subdivision 5; 256.962, by adding a subdivision; 256B.0654, subdivision 1; 256B.0659, subdivisions 11, 28; 256B.0751, by adding a subdivision; 256B.493, subdivision 1; 256B.5016, subdivision 1; 256B.69, subdivision 16, by adding a subdivision; 256D.01, subdivision 1e; 256D.05, by adding a subdivision; 256D.405, subdivision 1; 256E.30, by adding a subdivision; 256G.02, subdivision 6; 256I.03, subdivision 3; 256I.04, subdivisions 1a, 2a; 256J.09, subdivision 3; 256J.20, subdivision 3; 256J.30, subdivisions 4, 12; 256J.32, subdivisions 6, 8; 256J.38, subdivision 6; 256J.49, subdivision 13; 256J.521, subdivisions 1, 2; 256J.53, subdivisions 2, 5; 256J.626, subdivisions 5, 8; 256J.67; 256J.68, subdivisions 1, 2, 4, 7, 8; 256J.751, subdivision 2; 256K.26, subdivision 4; 260C.157, subdivision 3; 260C.215, subdivisions 4, 6, by adding a subdivision; 325H.05; 325H.09; 393.01, subdivisions 2, 7; 461.12; 461.18; 461.19; 609.685; 609.6855; 626.556, subdivision 11c; 626.5561, subdivision 1; Minnesota Statutes 2013 Supplement, sections 144.1225, subdivision 2; 144.493, subdivisions 1, 2; 144A.474, subdivisions 8, 12; 144A.475, subdivision 3, by adding subdivisions; 145.4716, subdivision 2; 145A.06, subdivision 7; 151.252, by adding a subdivision; 245A.1435; 245A.50, subdivision 5; 245D.02, by adding a subdivision; 245D.05, subdivisions 1, 1b; 245D.06, subdivision 1; 245D.07, subdivision 2; 245D.071, subdivisions 1, 3, 4, 5; 245D.09, subdivisions 3, 4, 4a, 5; 245D.095, subdivision 3; 245D.22, subdivision 4; 245D.31, subdivisions 3, 4, 5; 245D.33; 254A.035, subdivision 2; 254A.04; 256B.04, subdivision 21; 256B.0625, subdivision 9; 256B.0659, subdivision 21; 256B.0922, subdivision 1; 256B.4912, subdivision 10; 256B.492; 256B.766; 256B.85, subdivision 12; 256J.21, subdivision 2; 256J.24, subdivision 3; 256J.621, subdivision 1; 256J.626, subdivisions 6, 7; 260.835, subdivision 2; 626.556, subdivision 7; 626.557, subdivision 9; Laws 2011, First Special Session chapter 9, article 7, section 7; Laws 2013, chapter 108, article 7, section 60; proposing coding for new law in Minnesota Statutes, chapters 144; 144D; 150A; 151; 214; 245A; 260D; 325F; 325H; 403; 461; repealing Minnesota Statutes 2012, sections 145A.02, subdivision 2; 145A.03, subdivisions 3, 6; 145A.09, subdivisions 1, 2, 3, 4, 5, 7; 145A.10, subdivisions 1, 2, 3, 4, 5a, 7, 9, 10; 145A.12, subdivisions 1, 2, 7; 148.01, subdivision 3; 148.7808, subdivision 2; 148.7813; 214.28; 214.36; 214.37; 256.01, subdivision 32; 325H.06; 325H.08; Minnesota Statutes 2013 Supplement, sections 148.6440; 245D.071, subdivision 2; Laws 2011, First Special Session chapter 9, article 6, section 95, subdivisions 1, 2, 3, 4; Minnesota Rules, parts 2500.0100, subparts 3, 4b, 9b; 2500.4000; 9500.1126; 9500.1450, subpart 3; 9500.1452, subpart 3; 9500.1456; 9505.5300; 9505.5305; 9505.5310; 9505.5315; 9505.5325; 9525.1580.

 

May 14, 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. 2402 report that we have agreed upon the items in dispute and recommend as follows:

 

That the Senate recede from its amendments and that H. F. No. 2402 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

CHILDREN AND FAMILIES

 

Section 1.  Minnesota Statutes 2012, section 245A.02, subdivision 19, is amended to read:

 

Subd. 19.  Family day care and group family day care child age classifications.  (a) For the purposes of family day care and group family day care licensing under this chapter, the following terms have the meanings given them in this subdivision.


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(b) "Newborn" means a child between birth and six weeks old.

 

(c) "Infant" means a child who is at least six weeks old but less than 12 months old.

 

(d) "Toddler" means a child who is at least 12 months old but less than 24 months old, except that for purposes of specialized infant and toddler family and group family day care, "toddler" means a child who is at least 12 months old but less than 30 months old.

 

(e) "Preschooler" means a child who is at least 24 months old up to the school age of being eligible to enter kindergarten within the next four months.

 

(f) "School age" means a child who is at least of sufficient age to have attended the first day of kindergarten, or is eligible to enter kindergarten within the next four months five years of age, but is younger than 11 years of age.

 

Sec. 2.  Minnesota Statutes 2013 Supplement, section 245A.1435, is amended to read:

 

245A.1435 REDUCTION OF RISK OF SUDDEN UNEXPECTED INFANT DEATH IN LICENSED PROGRAMS.

 

(a) When a license holder is placing an infant to sleep, the license holder must place the infant on the infant's back, unless the license holder has documentation from the infant's physician directing an alternative sleeping position for the infant.  The physician directive must be on a form approved by the commissioner and must remain on file at the licensed location.  An infant who independently rolls onto its stomach after being placed to sleep on its back may be allowed to remain sleeping on its stomach if the infant is at least six months of age or the license holder has a signed statement from the parent indicating that the infant regularly rolls over at home.

 

(b) The license holder must place the infant in a crib directly on a firm mattress with a fitted sheet that is appropriate to the mattress size, that fits tightly on the mattress, and overlaps the underside of the mattress so it cannot be dislodged by pulling on the corner of the sheet with reasonable effort.  The license holder must not place anything in the crib with the infant except for the infant's pacifier, as defined in Code of Federal Regulations, title 16, part 1511.  The requirements of this section apply to license holders serving infants younger than one year of age.  Licensed child care providers must meet the crib requirements under section 245A.146.  A correction order shall not be issued under this paragraph unless there is evidence that a violation occurred when an infant was present in the license holder's care.

 

(c) If an infant falls asleep before being placed in a crib, the license holder must move the infant to a crib as soon as practicable, and must keep the infant within sight of the license holder until the infant is placed in a crib.  When an infant falls asleep while being held, the license holder must consider the supervision needs of other children in care when determining how long to hold the infant before placing the infant in a crib to sleep.  The sleeping infant must not be in a position where the airway may be blocked or with anything covering the infant's face.

 

(d) Placing a swaddled infant down to sleep in a licensed setting is not recommended for an infant of any age and is prohibited for any infant who has begun to roll over independently.  However, with the written consent of a parent or guardian according to this paragraph, a license holder may place the infant who has not yet begun to roll over on its own down to sleep in a one-piece sleeper equipped with an attached system that fastens securely only across the upper torso, with no constriction of the hips or legs, to create a swaddle.  Prior to any use of swaddling for sleep by a provider licensed under this chapter, the license holder must obtain informed written consent for the use of swaddling from the parent or guardian of the infant on a form provided by the commissioner and prepared in partnership with the Minnesota Sudden Infant Death Center.


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Sec. 3.  [245A.1511] CONTRACTORS SERVING MULTIPLE FAMILY CHILD CARE LICENSE HOLDERS.

 

Contractors who serve multiple family child care holders may request that the county agency maintain a record of:

 

(1) the contractor's background study results as required in section 245C.04, subdivision 7, to verify that the contractor does not have a disqualification or a disqualification that has not been set aside, and is eligible to provide direct contact services in a licensed program; and

 

(2) the contractor's compliance with training requirements.

 

Sec. 4.  Minnesota Statutes 2013 Supplement, section 245A.50, subdivision 5, is amended to read:

 

Subd. 5.  Sudden unexpected infant death and abusive head trauma training.  (a) License holders must document that before staff persons, caregivers, and helpers assist in the care of infants, they are instructed on the standards in section 245A.1435 and receive training on reducing the risk of sudden unexpected infant death.  In addition, license holders must document that before staff persons, caregivers, and helpers assist in the care of infants and children under school age, they receive training on reducing the risk of abusive head trauma from shaking infants and young children.  The training in this subdivision may be provided as initial training under subdivision 1 or ongoing annual training under subdivision 7.

 

(b) Sudden unexpected infant death reduction training required under this subdivision must be at least one-half hour in length and must be completed in person at least once every two years.  On the years when the license holder is not receiving the in-person training on sudden unexpected infant death reduction, the license holder must receive sudden unexpected infant death reduction training through a video of no more than one hour in length developed or approved by the commissioner., at a minimum, the training must address the risk factors related to sudden unexpected infant death, means of reducing the risk of sudden unexpected infant death in child care, and license holder communication with parents regarding reducing the risk of sudden unexpected infant death.

 

(c) Abusive head trauma training required under this subdivision must be at least one-half hour in length and must be completed at least once every year., at a minimum, the training must address the risk factors related to shaking infants and young children, means of reducing the risk of abusive head trauma in child care, and license holder communication with parents regarding reducing the risk of abusive head trauma.

 

(d) Training for family and group family child care providers must be developed by the commissioner in conjunction with the Minnesota Sudden Infant Death Center and approved by the Minnesota Center for Professional Development.  Sudden unexpected infant death reduction training and abusive head trauma training may be provided in a single course of no more than two hours in length.

 

(e) Sudden unexpected infant death reduction training and abusive head trauma training required under this subdivision must be completed in person or as allowed under subdivision 10, clause (1) or (2), at least once every two years.  On the years when the license holder is not receiving training in person or as allowed under subdivision 10, clause (1) or (2), the license holder must receive sudden unexpected infant death reduction training and abusive head trauma training through a video of no more than one hour in length.  The video must be developed or approved by the commissioner.

 

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


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Sec. 5.  Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision to read:

 

Subd. 7.  Current or prospective contractors serving multiple family child care license holders.  Current or prospective contractors who are required to have a background study under section 245C.03, subdivision 1, who provide services for multiple family child care license holders in a single county, and will have direct contact with children served in the family child care setting are required to have only one background study which is transferable to all family child care programs in that county if:

 

(1) the county agency maintains a record of the contractor's background study results which verify the contractor is approved to have direct contact with children receiving services;

 

(2) the license holder contacts the county agency and obtains notice that the current or prospective contractor is in compliance with background study requirements and approved to have direct contact; and

 

(3) the contractor's background study is repeated every two years.

 

Sec. 6.  Minnesota Statutes 2012, section 260C.212, subdivision 2, is amended to read:

 

Subd. 2.  Placement decisions based on best interests of the child.  (a) The policy of the state of Minnesota is to ensure that the child's best interests are met by requiring an individualized determination of the needs of the child and of how the selected placement will serve the needs of the child being placed.  The authorized child-placing agency shall place a child, released by court order or by voluntary release by the parent or parents, in a family foster home selected by considering placement with relatives and important friends in the following order:

 

(1) with an individual who is related to the child by blood, marriage, or adoption; or

 

(2) with an individual who is an important friend with whom the child has resided or had significant contact.

 

(b) Among the factors the agency shall consider in determining the needs of the child are the following:

 

(1) the child's current functioning and behaviors;

 

(2) the medical needs of the child;

 

(3) the educational needs of the child;

 

(4) the developmental needs of the child;

 

(5) the child's history and past experience;

 

(6) the child's religious and cultural needs;

 

(7) the child's connection with a community, school, and faith community;

 

(8) the child's interests and talents;

 

(9) the child's relationship to current caretakers, parents, siblings, and relatives; and

 

(10) the reasonable preference of the child, if the court, or the child-placing agency in the case of a voluntary placement, deems the child to be of sufficient age to express preferences.


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(c) Placement of a child cannot be delayed or denied based on race, color, or national origin of the foster parent or the child.

 

(d) Siblings should be placed together for foster care and adoption at the earliest possible time unless it is documented that a joint placement would be contrary to the safety or well-being of any of the siblings or unless it is not possible after reasonable efforts by the responsible social services agency.  In cases where siblings cannot be placed together, the agency is required to provide frequent visitation or other ongoing interaction between siblings unless the agency documents that the interaction would be contrary to the safety or well-being of any of the siblings.

 

(e) Except for emergency placement as provided for in section 245A.035, the following requirements must be satisfied before the approval of a foster or adoptive placement in a related or unrelated home:  (1) a completed background study is required under section 245C.08 before the approval of a foster placement in a related or unrelated home; and (2) a completed review of the written home study required under section 260C.215, subdivision 4, clause (5), or 260C.611, to assess the capacity of the prospective foster or adoptive parent to ensure the placement will meet the needs of the individual child.

 

Sec. 7.  Minnesota Statutes 2012, section 260C.215, subdivision 4, is amended to read:

 

Subd. 4.  Duties of commissioner.  The commissioner of human services shall:

 

(1) provide practice guidance to responsible social services agencies and child-placing agencies that reflect federal and state laws and policy direction on placement of children;

 

(2) develop criteria for determining whether a prospective adoptive or foster family has the ability to understand and validate the child's cultural background;

 

(3) provide a standardized training curriculum for adoption and foster care workers and administrators who work with children.  Training must address the following objectives:

 

(i) developing and maintaining sensitivity to all cultures;

 

(ii) assessing values and their cultural implications;

 

(iii) making individualized placement decisions that advance the best interests of a particular child under section 260C.212, subdivision 2; and

 

(iv) issues related to cross-cultural placement;

 

(4) provide a training curriculum for all prospective adoptive and foster families that prepares them to care for the needs of adoptive and foster children taking into consideration the needs of children outlined in section 260C.212, subdivision 2, paragraph (b);

 

(5) develop and provide to agencies a home study format to assess the capacities and needs of prospective adoptive and foster families.  The format must address problem-solving skills; parenting skills; evaluate the degree to which the prospective family has the ability to understand and validate the child's cultural background, and other issues needed to provide sufficient information for agencies to make an individualized placement decision consistent with section 260C.212, subdivision 2.  For a study of a prospective foster parent, the format must also address the capacity of the prospective foster parent to provide a safe, healthy, smoke-free home environment.  If a prospective adoptive parent has also been a foster parent, any update necessary to a home study for the purpose of adoption may be completed by the licensing authority responsible for the foster parent's license.  If a prospective adoptive parent with an approved adoptive home study also applies for a foster care license, the license application may be made with the same agency which provided the adoptive home study; and


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(6) consult with representatives reflecting diverse populations from the councils established under sections 3.922, 3.9223, 3.9225, and 3.9226, and other state, local, and community organizations.

 

Sec. 8.  Minnesota Statutes 2012, section 260C.215, subdivision 6, is amended to read:

 

Subd. 6.  Duties of child-placing agencies.  (a) Each authorized child-placing agency must:

 

(1) develop and follow procedures for implementing the requirements of section 260C.212, subdivision 2, and the Indian Child Welfare Act, United States Code, title 25, sections 1901 to 1923;

 

(2) have a written plan for recruiting adoptive and foster families that reflect the ethnic and racial diversity of children who are in need of foster and adoptive homes.  The plan must include:

 

(i) strategies for using existing resources in diverse communities;

 

(ii) use of diverse outreach staff wherever possible;

 

(iii) use of diverse foster homes for placements after birth and before adoption; and

 

(iv) other techniques as appropriate;

 

(3) have a written plan for training adoptive and foster families;

 

(4) have a written plan for employing staff in adoption and foster care who have the capacity to assess the foster and adoptive parents' ability to understand and validate a child's cultural and meet the child's individual needs, and to advance the best interests of the child, as required in section 260C.212, subdivision 2.  The plan must include staffing goals and objectives;

 

(5) ensure that adoption and foster care workers attend training offered or approved by the Department of Human Services regarding cultural diversity and the needs of special needs children; and

 

(6) develop and implement procedures for implementing the requirements of the Indian Child Welfare Act and the Minnesota Indian Family Preservation Act.; and

 

(7) ensure that children in foster care are protected from the effects of secondhand smoke and that licensed foster homes maintain a smoke-free environment in compliance with subdivision 9.

 

(b) In determining the suitability of a proposed placement of an Indian child, the standards to be applied must be the prevailing social and cultural standards of the Indian child's community, and the agency shall defer to tribal judgment as to suitability of a particular home when the tribe has intervened pursuant to the Indian Child Welfare Act.

 

Sec. 9.  Minnesota Statutes 2012, section 260C.215, is amended by adding a subdivision to read:

 

Subd. 9.  Preventing exposure to secondhand smoke for children in foster care.  (a) A child in foster care shall not be exposed to any type of secondhand smoke in the following settings:

 

(1) a licensed foster home or any enclosed space connected to the home, including a garage, porch, deck, or similar space; or

 

(2) a motor vehicle while a foster child is transported.


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(b) Smoking in outdoor areas on the premises of the home is permitted, except when a foster child is present and exposed to secondhand smoke.

 

(c) The home study required in subdivision 4, clause (5), must include a plan to maintain a smoke-free environment for foster children.

 

(d) If a foster parent fails to provide a smoke-free environment for a foster child, the child-placing agency must ask the foster parent to comply with a plan that includes training on the health risks of exposure to secondhand smoke.  If the agency determines that the foster parent is unable to provide a smoke-free environment and that the home environment constitutes a health risk to a foster child, the agency must reassess whether the placement is based on the child's best interests consistent with section 260C.212, subdivision 2.

 

(e) Nothing in this subdivision shall delay the placement of a child with a relative, consistent with section 245A.035, unless the relative is unable to provide for the immediate health needs of the individual child.

 

(f) If a child's best interests would most effectively be served by placement in a home which will not meet the requirements of paragraph (a), the failure to meet the requirements of paragraph (a) shall not be a cause to deny placement in that home.

 

(g) Nothing in this subdivision shall be interpreted to interfere, conflict with, or be a basis for denying placement pursuant to the provisions of the federal Indian Child Welfare Act or Minnesota Indian Family Preservation Act.

 

(h) Nothing in this subdivision shall be interpreted to interfere with traditional or spiritual Native American or religious ceremonies involving the use of tobacco.

 

Sec. 10.  Minnesota Statutes 2012, section 626.556, subdivision 11c, is amended to read:

 

Subd. 11c.  Welfare, court services agency, and school records maintained.  Notwithstanding sections 138.163 and 138.17, records maintained or records derived from reports of abuse by local welfare agencies, agencies responsible for assessing or investigating the report, court services agencies, or schools under this section shall be destroyed as provided in paragraphs (a) to (d) by the responsible authority.

 

(a) For family assessment cases and cases where an investigation results in no determination of maltreatment or the need for child protective services, the assessment or investigation records must be maintained for a period of four years.  Records under this paragraph may not be used for employment, background checks, or purposes other than to assist in future risk and safety assessments.

 

(b) All records relating to reports which, upon investigation, indicate either maltreatment or a need for child protective services shall be maintained for at least ten years after the date of the final entry in the case record.

 

(c) All records regarding a report of maltreatment, including any notification of intent to interview which was received by a school under subdivision 10, paragraph (d), shall be destroyed by the school when ordered to do so by the agency conducting the assessment or investigation.  The agency shall order the destruction of the notification when other records relating to the report under investigation or assessment are destroyed under this subdivision.

 

(d) Private or confidential data released to a court services agency under subdivision 10h must be destroyed by the court services agency when ordered to do so by the local welfare agency that released the data.  The local welfare agency or agency responsible for assessing or investigating the report shall order destruction of the data when other records relating to the assessment or investigation are destroyed under this subdivision.


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(e) For reports alleging child maltreatment that were not accepted for assessment or investigation, counties shall maintain sufficient information to identify repeat reports alleging maltreatment of the same child or children for 365 days from the date the report was screened out.  The commissioner of human services shall specify to the counties the minimum information needed to accomplish this purpose.  Counties shall enter this data into the state social services information system.

 

Sec. 11.  2014 H. F. No. 2950, article 1, section 12, if enacted, is amended to read:

 

Sec. 12.  REPEALER.

 

(a) Minnesota Statutes 2012, sections 119A.04, subdivision 1; 119B.09, subdivision 2; 119B.23; 119B.231; 119B.232; 256.01, subdivisions 3, 14, and 14a; 256.9792; 256D.02, subdivision 19; 256D.05, subdivision 4; 256D.46; 256I.05, subdivisions 1b and 5; 256I.07; 256K.35; 259.85, subdivisions 2, 3, 4, and 5; 518A.53, subdivision 7; 518A.74; and 626.5593, are repealed.

 

(b) Minnesota Statutes 2012, section 256J.24, subdivision 10, is repealed effective October 1, 2014.

 

(c) Minnesota Statutes 2013 Supplement, section 259.85, subdivision 1, is repealed.

 

Sec. 12.  MINNESOTA TANF EXPENDITURES TASK FORCE.

 

Subdivision 1.  Establishment.  The Minnesota TANF Expenditures Task Force is established to analyze past temporary assistance for needy families (TANF) expenditures and make recommendations as to which, if any, programs currently receiving TANF funding should be funded by the general fund so that a greater portion of TANF funds can go directly to Minnesota families receiving assistance through the Minnesota family investment program under Minnesota Statutes, chapter 256J.

 

Subd. 2.  Membership; meetings; staff.  (a) The task force shall be composed of the following members who serve at the pleasure of their appointing authority:

 

(1) one representative of the Department of Human Services appointed by the commissioner of human services;

 

(2) one representative of the Department of Management and Budget appointed by the commissioner of management and budget;

 

(3) one representative of the Department of Health appointed by the commissioner of health;

 

(4) one representative of the Local Public Health Association of Minnesota;

 

(5) two representatives of county government appointed by the Association of Minnesota Counties, one representing counties in the seven-county metropolitan area and one representing all other counties;

 

(6) one representative of the Minnesota Legal Services Coalition;

 

(7) one representative of the Children's Defense Fund of Minnesota;

 

(8) one representative of the Minnesota Coalition for the Homeless;

 

(9) one representative of the Welfare Rights Coalition;


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(10) two members of the house of representatives, one appointed by the speaker of the house and one appointed by the minority leader; and

 

(11) two members of the senate, including one member of the minority party, appointed according to the rules of the senate.

 

(b) Notwithstanding Minnesota Statutes, section 15.059, members of the task force shall serve without compensation or reimbursement of expenses.

 

(c) The commissioner of human services must convene the first meeting of the Minnesota TANF Expenditures Task Force by July 31, 2014.  The task force must meet at least quarterly.

 

(d) Staffing and technical assistance shall be provided within available resources by the Department of Human Services, children and family services division.

 

Subd. 3.  Duties.  (a) The task force must report on past expenditures of the TANF block grant, including a determination of whether or not programs for which TANF funds have been appropriated meet the purposes of the TANF program as defined under Code of Federal Regulations, title 45, section 260.20, and make recommendations as to which, if any, programs currently receiving TANF funds should be funded by the general fund.  In making recommendations on program funding sources, the task force shall consider the following:

 

(1) the original purpose of the TANF block grant under Code of Federal Regulations, title 45, section 260.20;

 

(2) potential overlap of the population eligible for the Minnesota family investment program cash grant and the other programs currently receiving TANF funds;

 

(3) the ability for TANF funds, as appropriated under current law, to effectively help the lowest-income Minnesotans out of poverty;

 

(4) the impact of past expenditures on families who may be eligible for assistance through TANF;

 

(5) the ability of TANF funds to support effective parenting and optimal brain development in children under five years old; and

 

(6) the role of noncash assistance expenditures in maintaining compliance with federal law.

 

(b) In preparing the recommendations under paragraph (a), the task force shall consult with appropriate Department of Human Services information technology staff regarding implementation of the recommendations.

 

Subd. 4.  Report.  (a) The task force must submit an initial report by November 30, 2014, on past expenditures of the TANF block grant in Minnesota to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services policy and finance.

 

(b) The task force must submit a final report by February 1, 2015, analyzing past TANF expenditures and making recommendations as to which programs, if any, currently receiving TANF funding should be funded by the general fund, including any phase-in period and draft legislation necessary for implementation, to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services policy and finance.

 

Subd. 5.  Expiration.  This section expires March 1, 2015, or upon submission of the final report required under subdivision 4, whichever is earlier.

 

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


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ARTICLE 2

PROVISION OF HEALTH SERVICES

 

Section 1.  [150A.055] ADMINISTRATION OF INFLUENZA IMMUNIZATIONS.

 

Subdivision 1.  Practice of dentistry.  A person licensed to practice dentistry under sections 150A.01 to 150A.14 shall be deemed to be practicing dentistry while participating in the administration of an influenza vaccination.

 

Subd. 2.  Qualified dentists.  (a) The influenza immunization shall be administered only to patients 19 years of age and older and only by licensed dentists who:

 

(1) have immediate access to emergency response equipment, including but not limited to oxygen administration equipment, epinephrine, and other allergic reaction response equipment; and

 

(2) are trained in or have successfully completed a program approved by the Minnesota Board of Dentistry, specifically for the administration of immunizations.  The training or program must include:

 

(i) educational material on the disease of influenza and vaccination as prevention of the disease;

 

(ii) contraindications and precautions;

 

(iii) intramuscular administration;

 

(iv) communication of risk and benefits of influenza vaccination and legal requirements involved;

 

(v) reporting of adverse events;

 

(vi) documentation required by federal law; and

 

(vii) storage and handling of vaccines.

 

(b) Any dentist giving influenza vaccinations under this section shall comply with guidelines established by the federal Advisory Committee on Immunization Practices relating to vaccines and immunizations, which includes, but is not limited to, vaccine storage and handling, vaccine administration and documentation, and vaccine contraindications and precautions.

 

Subd. 3.  Coordination of care.  After a dentist qualified under subdivision 2 has administered an influenza vaccine to a patient, the dentist shall report the administration of the immunization to the Minnesota Immunization Information Connection or otherwise notify the patient's primary physician or clinic of the administration of the immunization.

 

EFFECTIVE DATE.  This section is effective January 1, 2015, and applies to influenza immunizations performed on or after that date.

 

Sec. 2.  [151.71] MAXIMUM ALLOWABLE COST PRICING.

 

Subdivision 1.  Definition.  (a) For purposes of this section, the following definitions apply.

 

(b) "Health plan company" has the meaning provided in section 62Q.01, subdivision 4.


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(c) "Pharmacy benefit manager" means an entity doing business in this state that contracts to administer or manage prescription drug benefits on behalf of any health plan company that provides prescription drug benefits to residents of this state.

 

Subd. 2.  Pharmacy benefit manager contracts with pharmacies; maximum allowable cost pricing.  (a) In each contract between a pharmacy benefit manager and a pharmacy, the pharmacy shall be given the right to obtain from the pharmacy benefit manager a current list of the sources used to determine maximum allowable cost pricing.  The pharmacy benefit manager shall update the pricing information at least every seven business days and provide a means by which contracted pharmacies may promptly review current prices in an electronic, print, or telephonic format within one business day at no cost to the pharmacy.  A pharmacy benefit manager shall maintain a procedure to eliminate products from the list of drugs subject to maximum allowable cost pricing in a timely manner in order to remain consistent with changes in the marketplace.

 

(b) In order to place a prescription drug on a maximum allowable cost list, a pharmacy benefit manager shall ensure that the drug is generally available for purchase by pharmacies in this state from a national or regional wholesaler and is not obsolete.

 

(c) Each contract between a pharmacy benefit manager and a pharmacy must include a process to appeal, investigate, and resolve disputes regarding maximum allowable cost pricing that includes:

 

(1) a 15-business day limit on the right to appeal following the initial claim;

 

(2) a requirement that the appeal be investigated and resolved within seven business days after the appeal is received; and

 

(3) a requirement that a pharmacy benefit manager provide a reason for any appeal denial and identify the national drug code of a drug that may be purchased by the pharmacy at a price at or below the maximum allowable cost price as determined by the pharmacy benefit manager.

 

(d) If an appeal is upheld, the pharmacy benefit manager shall make an adjustment to the maximum allowable cost price no later than one business day after the date of determination.  The pharmacy benefit manager shall make the price adjustment applicable to all similarly situated network pharmacy providers as defined by the plan sponsor.

 

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

 

Sec. 3.  Minnesota Statutes 2012, section 152.126, as amended by Laws 2013, chapter 113, article 3, section 3, is amended to read:

 

152.126 CONTROLLED SUBSTANCES PRESCRIPTION ELECTRONIC REPORTING SYSTEM PRESCRIPTION MONITORING PROGRAM.

 

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

 

(a) (b) "Board" means the Minnesota State Board of Pharmacy established under chapter 151.

 

(b) (c) "Controlled substances" means those substances listed in section 152.02, subdivisions 3 to 5 6, and those substances defined by the board pursuant to section 152.02, subdivisions 7, 8, and 12.  For the purposes of this section, controlled substances includes tramadol and butalbital.


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(c) (d) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision 30.  Dispensing does not include the direct administering of a controlled substance to a patient by a licensed health care professional.

 

(d) (e) "Dispenser" means a person authorized by law to dispense a controlled substance, pursuant to a valid prescription.  For the purposes of this section, a dispenser does not include a licensed hospital pharmacy that distributes controlled substances for inpatient hospital care or a veterinarian who is dispensing prescriptions under section 156.18.

 

(e) (f) "Prescriber" means a licensed health care professional who is authorized to prescribe a controlled substance under section 152.12, subdivision 1 or 2.

 

(f) (g) "Prescription" has the meaning given in section 151.01, subdivision 16.

 

Subd. 1a.  Treatment of intractable pain.  This section is not intended to limit or interfere with the legitimate prescribing of controlled substances for pain.  No prescriber shall be subject to disciplinary action by a health-related licensing board for prescribing a controlled substance according to the provisions of section 152.125.

 

Subd. 2.  Prescription electronic reporting system.  (a) The board shall establish by January 1, 2010, an electronic system for reporting the information required under subdivision 4 for all controlled substances dispensed within the state.

 

(b) The board may contract with a vendor for the purpose of obtaining technical assistance in the design, implementation, operation, and maintenance of the electronic reporting system.

 

Subd. 3.  Prescription Electronic Reporting Monitoring Program Advisory Committee Task Force.  (a) The board shall convene shall appoint an advisory committee.  The committee must include task force consisting of at least one representative of:

 

(1) the Department of Health;

 

(2) the Department of Human Services;

 

(3) each health-related licensing board that licenses prescribers;

 

(4) a professional medical association, which may include an association of pain management and chemical dependency specialists;

 

(5) a professional pharmacy association;

 

(6) a professional nursing association;

 

(7) a professional dental association;

 

(8) a consumer privacy or security advocate; and

 

(9) a consumer or patient rights organization; and

 

(10) an association of medical examiners and coroners.

 

(b) The advisory committee task force shall advise the board on the development and operation of the electronic reporting system prescription monitoring program, including, but not limited to:


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(1) technical standards for electronic prescription drug reporting;

 

(2) proper analysis and interpretation of prescription monitoring data; and

 

(3) an evaluation process for the program; and

 

(4) criteria for the unsolicited provision of prescription monitoring data by the board to prescribers and dispensers.

 

(c) The task force is governed by section 15.059.  Notwithstanding section 15.059, subdivision 5, the task force shall not expire.

 

Subd. 4.  Reporting requirements; notice.  (a) Each dispenser must submit the following data to the board or its designated vendor, subject to the notice required under paragraph (d):

 

(1) name of the prescriber;

 

(2) national provider identifier of the prescriber;

 

(3) name of the dispenser;

 

(4) national provider identifier of the dispenser;

 

(5) prescription number;

 

(6) name of the patient for whom the prescription was written;

 

(7) address of the patient for whom the prescription was written;

 

(8) date of birth of the patient for whom the prescription was written;

 

(9) date the prescription was written;

 

(10) date the prescription was filled;

 

(11) name and strength of the controlled substance;

 

(12) quantity of controlled substance prescribed;

 

(13) quantity of controlled substance dispensed; and

 

(14) number of days supply.

 

(b) The dispenser must submit the required information by a procedure and in a format established by the board.  The board may allow dispensers to omit data listed in this subdivision or may require the submission of data not listed in this subdivision provided the omission or submission is necessary for the purpose of complying with the electronic reporting or data transmission standards of the American Society for Automation in Pharmacy, the National Council on Prescription Drug Programs, or other relevant national standard-setting body.


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(c) A dispenser is not required to submit this data for those controlled substance prescriptions dispensed for:

 

(1) individuals residing in licensed skilled nursing or intermediate care facilities;

 

(2) individuals receiving assisted living services under chapter 144G or through a medical assistance home and community-based waiver;

 

(3) individuals receiving medication intravenously;

 

(4) individuals receiving hospice and other palliative or end-of-life care; and

 

(5) individuals receiving services from a home care provider regulated under chapter 144A.

 

(1) individuals residing in a health care facility as defined in section 151.58, subdivision 2, paragraph (b), when a drug is distributed through the use of an automated drug distribution system according to section 151.58; and

 

(2) individuals receiving a drug sample that was packaged by a manufacturer and provided to the dispenser for dispensing as a professional sample pursuant to Code of Federal Regulations, title 21, part 203, subpart D.

 

(d) A dispenser must not submit data under this subdivision unless provide to the patient for whom the prescription was written a conspicuous notice of the reporting requirements of this section is given to the patient for whom the prescription was written and notice that the information may be used for program administration purposes.

 

Subd. 5.  Use of data by board.  (a) The board shall develop and maintain a database of the data reported under subdivision 4.  The board shall maintain data that could identify an individual prescriber or dispenser in encrypted form.  Except as otherwise allowed under subdivision 6, the database may be used by permissible users identified under subdivision 6 for the identification of:

 

(1) individuals receiving prescriptions for controlled substances from prescribers who subsequently obtain controlled substances from dispensers in quantities or with a frequency inconsistent with generally recognized standards of use for those controlled substances, including standards accepted by national and international pain management associations; and

 

(2) individuals presenting forged or otherwise false or altered prescriptions for controlled substances to dispensers.

 

(b) No permissible user identified under subdivision 6 may access the database for the sole purpose of identifying prescribers of controlled substances for unusual or excessive prescribing patterns without a valid search warrant or court order.

 

(c) No personnel of a state or federal occupational licensing board or agency may access the database for the purpose of obtaining information to be used to initiate or substantiate a disciplinary action against a prescriber.

 

(d) Data reported under subdivision 4 shall be retained by the board in the database for a 12-month period, and shall be removed from the database no later than 12 months from the last day of the month during which the data was received.  made available to permissible users for a 12-month period beginning the day the data was received and ending 12 months from the last day of the month in which the data was received, except that permissible users defined in subdivision 6, paragraph (b), clauses (6) and (7), may use all data collected under this section for the purposes of administering, operating, and maintaining the prescription monitoring program and conducting trend analyses and other studies necessary to evaluate the effectiveness of the program.  Data retained beyond 24 months must be de-identified.


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(e) The board shall not retain data reported under subdivision 4 for a period longer than four years from the date the data was received.

 

Subd. 6.  Access to reporting system data.  (a) Except as indicated in this subdivision, the data submitted to the board under subdivision 4 is private data on individuals as defined in section 13.02, subdivision 12, and not subject to public disclosure.

 

(b) Except as specified in subdivision 5, the following persons shall be considered permissible users and may access the data submitted under subdivision 4 in the same or similar manner, and for the same or similar purposes, as those persons who are authorized to access similar private data on individuals under federal and state law:

 

(1) a prescriber or an agent or employee of the prescriber to whom the prescriber has delegated the task of accessing the data, to the extent the information relates specifically to a current patient, to whom the prescriber is:

 

(i) prescribing or considering prescribing any controlled substance;

 

(ii) providing emergency medical treatment for which access to the data may be necessary; or

 

(iii) providing other medical treatment for which access to the data may be necessary and the patient has consented to access to the submitted data, and with the provision that the prescriber remains responsible for the use or misuse of data accessed by a delegated agent or employee;

 

(2) a dispenser or an agent or employee of the dispenser to whom the dispenser has delegated the task of accessing the data, to the extent the information relates specifically to a current patient to whom that dispenser is dispensing or considering dispensing any controlled substance and with the provision that the dispenser remains responsible for the use or misuse of data accessed by a delegated agent or employee;

 

(3) a licensed pharmacist who is providing pharmaceutical care for which access to the data may be necessary to the extent that the information relates specifically to a current patient for whom the pharmacist is providing pharmaceutical care if the patient has consented to access to the submitted data;

 

(3) (4) an individual who is the recipient of a controlled substance prescription for which data was submitted under subdivision 4, or a guardian of the individual, parent or guardian of a minor, or health care agent of the individual acting under a health care directive under chapter 145C;

 

(4) (5) personnel of the board specifically assigned to conduct a bona fide investigation of a specific licensee;

 

(5) (6) personnel of the board engaged in the collection, review, and analysis of controlled substance prescription information as part of the assigned duties and responsibilities under this section;

 

(6) (7) authorized personnel of a vendor under contract with the board state of Minnesota who are engaged in the design, implementation, operation, and maintenance of the electronic reporting system prescription monitoring program as part of the assigned duties and responsibilities of their employment, provided that access to data is limited to the minimum amount necessary to carry out such duties and responsibilities, and subject to the requirement of de-identification and time limit on retention of data specified in subdivision 5, paragraphs (d) and (e);

 

(7) (8) federal, state, and local law enforcement authorities acting pursuant to a valid search warrant;

 

(8) (9) personnel of the medical assistance program Minnesota health care programs assigned to use the data collected under this section to identify and manage recipients whose usage of controlled substances may warrant restriction to a single primary care physician provider, a single outpatient pharmacy, or and a single hospital; and


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(9) (10) personnel of the Department of Human Services assigned to access the data pursuant to paragraph (h); and

 

(11) personnel of the health professionals services program established under section 214.31, to the extent that the information relates specifically to an individual who is currently enrolled in and being monitored by the program, and the individual consents to access to that information.  The health professionals services program personnel shall not provide this data to a health-related licensing board or the Emergency Medical Services Regulatory Board, except as permitted under section 214.33, subdivision 3.

 

For purposes of clause (3) (4), access by an individual includes persons in the definition of an individual under section 13.02.

 

(c) Any A permissible user identified in paragraph (b), who clauses (1), (2), (3), (6), (7), (9), and (10) may directly accesses access the data electronically,.  If the data is directly accessed electronically, the permissible user shall implement and maintain a comprehensive information security program that contains administrative, technical, and physical safeguards that are appropriate to the user's size and complexity, and the sensitivity of the personal information obtained.  The permissible user shall identify reasonably foreseeable internal and external risks to the security, confidentiality, and integrity of personal information that could result in the unauthorized disclosure, misuse, or other compromise of the information and assess the sufficiency of any safeguards in place to control the risks.

 

(d) The board shall not release data submitted under this section subdivision 4 unless it is provided with evidence, satisfactory to the board, that the person requesting the information is entitled to receive the data.

 

(e) The board shall not release the name of a prescriber without the written consent of the prescriber or a valid search warrant or court order.  The board shall provide a mechanism for a prescriber to submit to the board a signed consent authorizing the release of the prescriber's name when data containing the prescriber's name is requested.

 

(f) (e) The board shall maintain a log of all persons who access the data for a period of at least three years and shall ensure that any permissible user complies with paragraph (c) prior to attaining direct access to the data.

 

(g) (f) Section 13.05, subdivision 6, shall apply to any contract the board enters into pursuant to subdivision 2.  A vendor shall not use data collected under this section for any purpose not specified in this section.

 

(g) The board may participate in an interstate prescription monitoring program data exchange system provided that permissible users in other states have access to the data only as allowed under this section, and that section 13.05, subdivision 6, applies to any contract or memorandum of understanding that the board enters into under this paragraph.  The board shall report to the chairs and ranking minority members of the senate and house of representatives committees with jurisdiction over health and human services policy and finance on the interstate prescription monitoring program by January 5, 2016.

 

(h) With available appropriations, the commissioner of human services shall establish and implement a system through which the Department of Human Services shall routinely access the data for the purpose of determining whether any client enrolled in an opioid treatment program licensed according to chapter 245A has been prescribed or dispensed a controlled substance in addition to that administered or dispensed by the opioid treatment program.  When the commissioner determines there have been multiple prescribers or multiple prescriptions of controlled substances, the commissioner shall:

 

(1) inform the medical director of the opioid treatment program only that the commissioner determined the existence of multiple prescribers or multiple prescriptions of controlled substances; and

 

(2) direct the medical director of the opioid treatment program to access the data directly, review the effect of the multiple prescribers or multiple prescriptions, and document the review.


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If determined necessary, the commissioner of human services shall seek a federal waiver of, or exception to, any applicable provision of Code of Federal Regulations, title 42, part 2.34, item (c), prior to implementing this paragraph.

 

(i) The board shall review the data submitted under subdivision 4 on at least a quarterly basis and shall establish criteria, in consultation with the advisory task force, for referring information about a patient to prescribers and dispensers who prescribed or dispensed the prescriptions in question if the criteria are met.  The board shall report to the chairs and ranking minority members of the senate and house of representatives committees with jurisdicti