Journal of the House - 32nd Day - Monday, March 23, 2015

A quorum was present.

Anderson, M., was excused.

Kiel was excused until 4:10 p.m. Fabian and Hackbarth were excused until 7:40 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.

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PETITIONS AND COMMUNICATIONS

The following communication was received:

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Kurt L. Daudt

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 Act of the 2015 Session of the State Legislature has been received from the Office of the Governor and is 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

2015

Date Filed

2015

578 5 2:10 p.m. March 19 March 19

Sincerely,

Steve Simon

Secretary of State

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Anderson, P., from the Committee on Agriculture Policy to which was referred:

H. F. No. 153, A bill for an act relating to state government; adding urban agriculture development zones in land use planning; amending Minnesota Statutes 2014, section 473.859, subdivisions 1, 2, 5.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [17.1095] URBAN AGRICULTURE DEVELOPMENT GRANTS.

Subdivision 1. Establishment. (a) The commissioner shall establish and administer a grant program to provide financial and technical assistance to cities, organizations, or individuals for urban agriculture projects. Grant applications must be submitted to the commissioner on forms provided by the commissioner. The commissioner shall award grants to meritorious projects within the limits of available funding.

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(b) For purposes of this section, "eligible city" means a Minnesota home rule or statutory city located in:

(1) the seven-county metropolitan area, as defined under section 473.121, subdivision 2; or

(2) the core county or counties of a metropolitan statistical area.

Subd. 2. Grants to organizations or individuals. The commissioner shall solicit grant applications from individuals and organizations for projects located in urban agriculture development zones in eligible cities. The commissioner shall rank applications based on the project's ability to:

(1) increase fresh food access, including access to affordable organic foods, to improve both local and regional food security through the development of urban agriculture projects; and

(2) reduce or eliminate health disparities related to food access.

Subd. 3. Grants to cities. The commissioner shall solicit grant applications from eligible cities that have adopted a zoning ordinance that designates urban agriculture development zones. Applicant cities must certify to the commissioner that the ordinance will remain in effect for at least ten years and must repay any grant funds received under this section if the ordinance is repealed or amended to prohibit urban agriculture during the ten-year period.

Sec. 2. Minnesota Statutes 2014, section 17.115, subdivision 2, is amended to read:

Subd. 2. Loan criteria. (a) The shared savings loan program ~~must~~ may provide loans for purchase of new or used machinery, urban agriculture development, and installation of equipment for projects that make environmental improvements and enhance farm profitability. Eligible loan uses do not include seed, fertilizer, or fuel.

(b) Loans may not exceed $40,000 per individual or organization applying for a loan and may not exceed $160,000 for loans to four or more individuals or to two or more organizations on joint projects. The loan repayment period may be up to seven years as determined by project cost and energy savings. The interest rate on the loans must not exceed six percent.

Sec. 3. Minnesota Statutes 2014, section 17.115, subdivision 3, is amended to read:

Subd. 3. Awarding of loans. (a) Applications for loans must be made to the commissioner on forms prescribed by the commissioner.

(b) The applications must be reviewed, ranked, and recommended by a loan review panel appointed by the commissioner. The loan review panel shall consist of two lenders with agricultural experience, two resident farmers of the state using sustainable agriculture methods, two resident farmers of the state using organic agriculture methods, a farm management specialist, two residents of the state practicing urban agriculture, a representative from a postsecondary education institution, and a chair from the department.

(1) realize savings to the cost of agricultural production;

(2) reduce or make more efficient use of energy or inputs;

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(3) increase overall farm profitability; and

(4) result in environmental benefits.

(d) A loan application must show that the loan can be repaid by the applicant.

(e) The commissioner must consider the recommendations of the loan review panel and may make loans for eligible projects.

Sec. 4. APPROPRIATION.

$3,000,000 in fiscal year 2016 and $3,000,000 in fiscal year 2017 are appropriated from the general fund to the commissioner of agriculture for urban agriculture development grants under section 1. Between July 1 and January 1 in each fiscal year, $1,000,000 is reserved for grants to cities, $1,000,000 is reserved for grants to organizations, and $1,000,000 is reserved for grants to individuals. From January 2 to June 30 in each fiscal year, the commissioner may award remaining funds to any eligible city, organization, or individual."

Delete the title and insert:

"A bill for an act relating to state government; establishing urban agriculture development grants; appropriating money; amending Minnesota Statutes 2014, section 17.115, subdivisions 2, 3; proposing coding for new law in Minnesota Statutes, chapter 17."

With the recommendation that when so amended the bill be re-referred to the Committee on Agriculture Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 161, A bill for an act relating to human services; establishing accounts for certain persons with disabilities; amending Minnesota Statutes 2014, section 13.461, by adding a subdivision; proposing coding for new law as Minnesota Statutes, chapter 256Q.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 195, A bill for an act relating to transportation; prohibiting the Metropolitan Council from certain indebtedness; amending Minnesota Statutes 2014, section 473.39, by adding a subdivision.

Reported the same back with the following amendments:

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Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2014, section 398A.04, is amended by adding a subdivision to read:

Subd. 2b. Legislative authorization. The powers conferred to a regional rail authority under this chapter are subject to the requirements under section 473.399, subdivision 6.

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

Sec. 2. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision to read:

Subd. 6. Limitations. The council may not issue certificates of indebtedness, bonds, or other obligations secured in part or in whole by a pledge of motor vehicle sales tax revenue received under sections 16A.88 and 297B.09, or by a pledge of any earnings from the council's investment of motor vehicle sales tax revenues.

EFFECTIVE DATE; APPLICATION. This section is effective the day following final enactment, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 3. Minnesota Statutes 2014, section 473.399, is amended by adding a subdivision to read:

Subd. 6. Light rail transit development; legislative authorization. (a) The commissioner of transportation and any political subdivision, including but not limited to the Metropolitan Council, a regional railroad authority, a county, and a statutory or home rule charter city, may not complete an alternatives analysis or select a locally preferred alternative for a light rail transit project unless (1) a law is enacted that specifically identifies and authorizes the project, or (2) state funds are appropriated specifically for the project.

(b) The powers conferred under sections 473.399 to 473.3999 to a responsible authority, as defined in section 473.3993, subdivision 4, are subject to the requirements under this subdivision.

EFFECTIVE DATE. This section is effective the day following final enactment, and applies for any project not approved by the Federal Transit Administration for preliminary engineering or a subsequent project phase as of the effective date of this section. That portion of this section that relates to the Metropolitan Council applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 4. Minnesota Statutes 2014, section 473.4051, subdivision 2, is amended to read:

Subd. 2. Operating costs. After operating revenue and federal money have been used to pay for light rail transit operations, 50 100 percent of the remaining operating and ongoing maintenance costs must be paid ~~by the state~~ from nonstate sources. For purposes of this subdivision, state sources include but are not limited to general fund appropriations and revenue from the motor vehicle sales tax under chapter 297B.

EFFECTIVE DATE. This section is effective July 1, 2015, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 5. METROPOLITAN COUNCIL; BASE APPROPRIATIONS.

Notwithstanding Laws 2013, chapter 117, article 1, section 4, and Laws 2014, chapter 312, article 9, section 9, the base appropriation from the general fund to the Metropolitan Council for transit system operations under Minnesota Statutes, sections 473.371 to 473.449, in each fiscal year is the greater of zero or:

(1) $76,626,000; less

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(2) funds available to the council in that fiscal year under Minnesota Statutes, section 16A.88, attributable to motor vehicle sales tax revenue under Minnesota Statutes, section 297B.09; less funds appropriated to the council in fiscal year 2015 under Minnesota Statutes, section 16A.88, attributable to motor vehicle sales tax revenue.

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

Delete the title and insert:

"A bill for an act relating to transportation; governing transit finance; establishing certain legislative authorization requirements related to light rail transit; amending certain state appropriations and funding obligations; prohibiting the Metropolitan Council from certain indebtedness; amending Minnesota Statutes 2014, sections 398A.04, by adding a subdivision; 473.39, by adding a subdivision; 473.399, by adding a subdivision; 473.4051, subdivision 2."

With the recommendation that when so amended the bill be re-referred to the Committee on Transportation Policy and Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 283, A bill for an act relating to the military; designating certain lands around Camp Ripley as sentinel landscape; creating a coordinating committee; requiring a report; proposing coding for new law in Minnesota Statutes, chapter 190.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [190.33] CAMP RIPLEY SENTINEL LANDSCAPE.

Subdivision 1. Designation of certain lands. (a) Camp Ripley shall be a sentinel landscape. By January 16, 2017, the coordinating committee established under subdivision 2 shall designate certain lands in the vicinity of Camp Ripley to be contained in the sentinel landscape of Camp Ripley. The purpose of this designation shall be to identify lands important to the nation's defense mission in an effort to preserve and enhance the relationship between willing landowners and Camp Ripley and to create incentives to encourage landowners' land management practices to be consistent with Camp Ripley's military missions.

(b) Individuals who own land that is deemed part of the sentinel landscape shall be provided the opportunity to participate, on a voluntary basis, in various programs designed to encourage land uses compatible with Camp Ripley's military missions.

Subd. 2. Establishment of coordinating committee. (a) By March 1, 2016, the adjutant general shall establish a coordinating committee to address issues related to technical support services and appropriate financial assistance to landowners who voluntarily participate in the sentinel landscape program in subdivision 1.

(b) The committee will be comprised of the following individuals:

(1) the adjutant general or a designee who will serve as the chair of the committee;

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(2) the commissioner of agriculture or a designee;

(3) the commissioner of natural resources or a designee; and

(4) the executive director of the Board of Water and Soil Resources or a designee.

The committee may also seek input from federal agencies, including but not limited to the Department of Defense, the Department of the Army, the National Guard Bureau, the Department of the Interior, or the Department of Agriculture. The committee may also appoint members from other state agencies, county officials from any county where sentinel landscapes are located, and nongovernmental organizations that participate in land management activities within the sentinel landscape.

Subd. 3. Meetings. The chair shall convene meetings as necessary to conduct the duties prescribed in this section. The chair shall convene the first meeting of the committee by March 1, 2016.

Subd. 4. Duties. The committee shall identify sentinel land and develop recommendations to encourage landowners within the sentinel lands to voluntarily participate in and begin or continue land uses compatible with Camp Ripley's military mission. In designating sentinel lands, the coordinating committee shall include all working or natural lands, wherever located, that the coordinating committee believes contribute to the long-term sustainability of the military missions conducted at Camp Ripley. In determining which lands to designate, the coordinating committee shall seek input from the director of the Department of Defense Readiness and Environmental Protection Integration Program, the chief of the National Guard Bureau, the director of the Army Compatible Use Buffer Program, the commander of the Camp Ripley Training Center, the commissioner of agriculture, the commissioner of natural resources, the executive director of the Board of Water and Soil Resources, appropriate county commissioners from any county where designated lands are located, and any others the adjutant general deems appropriate.

Subd. 5. Compensation. Members of the committee will serve without compensation.

Subd. 6. Report. By January 16, 2017, the adjutant general, with the assistance of the coordinating committee established in subdivision 2, shall submit a report to the governor and to the chairs of the committees in the house of representatives and senate with primary jurisdiction over the Department of Military Affairs. The report must summarize the committee's efforts to encourage landowners within the Camp Ripley sentinel landscape to voluntarily participate in and begin or continue land uses compatible with Camp Ripley's military mission. This report will include a map that geographically defines the boundaries of the sentinel landscape and may also provide recommendations for any further legislation the coordinating committee deems necessary to further the goals of this program.

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

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

The report was adopted.

Anderson, S., from the Committee on State Government Finance to which was referred:

H. F. No. 288, A bill for an act relating to professional engineers; clarifying licensing requirements; amending Minnesota Statutes 2014, section 326.02, subdivision 3.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

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Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 305, A bill for an act relating to public safety; amending the Minnesota Personal Protection Act to recognize the North Dakota permit to carry a pistol as being valid within Minnesota; amending Minnesota Statutes 2014, section 624.714, subdivision 16.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2014, section 624.714, subdivision 16, is amended to read:

Subd. 16. Recognition of permits from other states. (a) The commissioner must annually establish and publish a list of other states that have laws governing the issuance of permits to carry weapons that are not ~~substantially~~ similar to this section. The list must be available on the Internet. A person holding a carry permit from a state not on the list may use the license or permit in this state subject to the rights, privileges, and requirements of this section.

(b) Notwithstanding paragraph (a), no license or permit from another state is valid in this state if the holder is or becomes prohibited by law from possessing a firearm.

(c) Any sheriff or police chief may file a petition under subdivision 12 seeking an order suspending or revoking an out-of-state permit holder's authority to carry a pistol in this state on the grounds set forth in subdivision 6, paragraph (a), clause (3). An order shall only be issued if the petitioner meets the burden of proof and criteria set forth in subdivision 12. If the court denies the petition, the court must award the permit holder reasonable costs and expenses including attorney fees. The petition may be filed in any county in the state where a person holding a license or permit from another state can be found.

(d) The commissioner must, when necessary, execute reciprocity agreements regarding carry permits with jurisdictions whose carry permits are recognized under paragraph (a).

(e) The commissioner shall not place the class 1 carry permit issued by the state of North Dakota on the list required under paragraph (a). This restriction expires if North Dakota amends the requirements for obtaining a class 1 carry permit after March 18, 2015, and the commissioner determines that North Dakota's law is not similar to this section."

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

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 307, A bill for an act relating to transportation; commerce; providing for proof of insurance in electronic format; amending Minnesota Statutes 2014, section 169.791, subdivisions 1, 2.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

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Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 316, A bill for an act relating to human services; modifying the nursing facility reimbursement system; amending Minnesota Statutes 2014, sections 256B.0915, subdivision 3a; 256B.441, subdivisions 1, 5, 13, 14, 17, 30, 31, 35, 48, 50, 51, 51a, 53, 54, 56, by adding subdivisions; repealing Minnesota Statutes 2014, section 256B.441, subdivisions 14a, 19, 50a, 52, 55, 58, 62.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 321, A bill for an act relating to health occupations; providing for an interstate medical licensure compact project; proposing coding for new law in Minnesota Statutes, chapter 147.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 322, A bill for an act relating to public safety; clarifying legislators' privilege from arrest; specifying that driving while impaired constitutes a breach of the peace for purposes of the Constitution; amending Minnesota Statutes 2014, section 3.151; proposing coding for new law in Minnesota Statutes, chapters 3; 169A.

Reported the same back with the following amendments:

Page 2, line 7, delete "169A.79" and insert "609.0225"

Correct the title numbers accordingly

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

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 328, A bill for an act relating to securities regulation; providing an exemption from regulation for crowdfunding transactions; proposing coding for new law in Minnesota Statutes, chapter 80A.

Reported the same back with the following amendments:

Page 3, line 13, delete "public accountant who is independent of the MNvest issuer" and insert "certified public accountant firm licensed under chapter 326A"

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Page 3, line 15, delete "public accountant who is"

Page 3, line 16, delete "independent of the MNvest issuer" and insert "certified public accountant firm licensed under chapter 326A"

Page 3, line 34, after "managers" insert ", as provided to the escrow agent by the portal operator,"

Page 9, after line 32, insert:

"Subd. 8. Portal operator; privacy of purchaser information. (a) For purposes of this subdivision, "personal information" means information provided to a portal operator by a prospective purchaser or purchaser that identifies, or can be used to identify, the prospective purchaser or purchaser.

(b) Except as provided in paragraph (c), a portal operator must not disclose personal information without written or electronic consent from the prospective purchaser or purchaser that authorizes the disclosure.

(1) records required to be provided to the administrator under subdivision 7, paragraph (e);

(2) the disclosure of personal information to a MNvest issuer relating to its MNvest offering; or

(3) the disclosure of personal information to the extent required or authorized under other law."

Renumber the subdivisions in sequence

With the recommendation that when so amended the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 437, A bill for an act relating to family law; establishing a legislative surrogacy commission; providing appointments; requiring a report.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. LEGISLATIVE SURROGACY COMMISSION.

Subdivision 1. Membership. The Legislative Commission on Surrogacy shall consist of 15 members, appointed as follows:

(1) three members of the senate appointed by the senate majority leader;

(2) three members of the senate appointed by the senate minority leader;

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(3) three members of the house of representatives appointed by the speaker of the house of representatives;

(4) three members of the house of representatives appointed by the house of representatives minority leader;

(5) the commissioner of human services or the commissioner's designee;

(6) the commissioner of health or the commissioner's designee; and

(7) a family court referee appointed by the chief justice of the state Supreme Court.

Appointments must be made by June 1, 2015.

Subd. 2. Chair. The commission shall elect a chair from among its members.

Subd. 3. First meeting. The ranking majority member of the commission who is appointed by the senate majority leader shall convene the first meeting by July 1, 2015.

Subd. 4. Compensation. Members of the commission are compensated as provided in Minnesota Statutes, section 3.101.

Subd. 5. Conflict of interest. A commission member may not participate in or vote on a decision of the commission in which the member has either a direct or indirect personal financial interest. A witness at a public meeting of the commission must disclose any financial conflict of interest.

Subd. 6. Duties. The commission shall develop recommendations on public policy and laws regarding surrogacy. To develop the recommendations, the commission shall study surrogacy through public hearings, research, and deliberation. Topics for study include, but are not limited to:

(1) potential health and psychological effects and benefits on women who serve as surrogates;

(2) potential health and psychological effects and benefits on children born of surrogates;

(3) business practices of the fertility industry, including attorneys, brokers, and clinics;

(4) considerations related to different forms of surrogacy;

(5) considerations related to the potential exploitation of women in surrogacy arrangements;

(6) contract law implications when a surrogacy contract is breached;

(7) potential conflicts with statutes governing private adoption and termination of parental rights;

(8) potential for legal conflicts related to third-party reproduction, including conflicts between or amongst the surrogate mother, the intended parents, the child, insurance companies, and medical professionals;

(9) public policy determinations of other jurisdictions with regard to surrogacy; and

(10) information to be provided to a child born of a surrogate about the child's biological and gestational parents.

Subd. 7. Reporting. The commission must submit a report including its recommendations and may draft legislation to implement its recommendations to the chairs and ranking minority members of the legislative committees with primary jurisdiction over health and judiciary in the house and senate by December 15, 2015. On topics where the commission fails to reach consensus, a majority and minority report shall be issued.

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Subd. 8. Staffing. The Legislative Coordinating Commission shall provide staffing and administrative support to the commission.

Subd. 9. Expiration. The commission expires the day after submitting the report required under subdivision 7.

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

With the recommendation that when so amended the bill be re-referred to the Committee on State Government Finance.

The report was adopted.

Garofalo from the Committee on Job Growth and Energy Affordability Policy and Finance to which was referred:

H. F. No. 438, A bill for an act relating to economic development; adopting the Minnesota New Markets Jobs Act; providing capital for business growth in economically distressed communities; imposing penalties; requiring a report; proposing coding for new law as Minnesota Statutes, chapter 116X.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [116X.01] TITLE.

This chapter is titled and may be cited as the "Minnesota New Markets Jobs Act."

Sec. 2. [116X.02] DEFINITIONS.

Subdivision 1. Scope. For the purposes of this chapter, the terms defined in this section have the meanings given.

Subd. 2. Affiliate. (a) For the purposes of subdivision 10, the term "affiliate" includes:

(1) any entity, without regard to whether the entity is a qualified community development entity under subdivision 10, that is the initial holder, either directly or through one or more special purpose entities, of a qualified equity investment in the qualified community development entity; and

(2) any entity, without regard to whether the entity is a qualified community development entity under subdivision 10, that provides insurance or any other form of guaranty to the ultimate recipient of tax credits under section 116X.03 with respect to a recapture or forfeiture of tax credits under section 116X.06, either directly or through the guaranty of any other economic benefit that is paid in lieu of the tax credits allowable under section 116X.03.

(b) The determination of whether an entity is an affiliate must be made by taking into account all relevant facts and circumstances, including the description of the proposed amount, structure, and initial purchaser of the qualified equity investment required by section 116X.05, subdivision 1, clause (4), and the determination assumes that the information provided pursuant to section 116X.05, subdivision 1, clause (4), is true and complete as of the date an application is submitted pursuant to section 116X.05.

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Subd. 3. Applicable percentage. "Applicable percentage" means zero percent for the first two credit allowance dates, eight percent for the third through sixth credit allowance dates, and seven percent for the seventh credit allowance date.

Subd. 4. Code. "Code" or "the Code" means the Internal Revenue Code of 1986 as amended through the date in section 290.01, subdivision 19.

Subd. 5. Credit allowance date. "Credit allowance date" means with respect to any qualified equity investment:

(1) the date on which the investment is initially made; and

(2) each of the six anniversary dates of that date thereafter.

Subd. 6. Department. "Department" means the Department of Employment and Economic Development.

Subd. 7. Long-term debt security. "Long-term debt security" means any debt instrument issued by a qualified community development entity at par value with an original maturity date of at least seven years from the date of its issuance, with no acceleration of repayment, amortization, or prepayment features prior to its original maturity date. The qualified community development entity that issues the debt instrument must not make cash interest payments on the debt instrument during the period beginning on the date of issuance and ending on the final credit allowance date in an amount that exceeds the cumulative operating income, as defined by regulations adopted under section 45D of the Code of the qualified community development entity for that period prior to giving effect to the expense of the cash interest payments. This subdivision does not limit the holder's ability to accelerate payments on the debt instrument in situations where the issuer has defaulted on covenants designed to ensure compliance with this section or section 45D of the Code.

Subd. 8. Purchase price. "Purchase price" means the amount paid to the issuer of a qualified equity investment for such qualified equity investment.

Subd. 9. Qualified active low-income community business. (a) "Qualified active low-income community business" means a business as defined in section 45D of the Code and Code of Federal Regulations, title 26, section 1.45D-1, and that is engaged primarily in a qualified high-technology field, as defined in section 116J.8737, subdivision 2, paragraph (g), clause (1), manufacturing, mining, or forestry. A business is considered a qualified active low-income community business for the duration of the qualified community development entity's investment in, or loan to, the business if the entity reasonably expects, at the time it makes the investment or loan, that the business will continue to satisfy the requirements for being a qualified active low-income community business, throughout the entire period of the investment or loan.

(b) Qualified active low-income community business excludes any business that derives or projects to derive 15 percent or more of its annual revenue from activities described in section 116J.8737, subdivision 2, paragraph (c), clause (4).

Subd. 10. Qualified community development entity. (a) "Qualified community development entity" has the meaning given in section 45D of the Code, provided that the entity has entered into, for the current year or any prior year, an allocation agreement with the Community Development Financial Institutions Fund of the United States Department of the Treasury with respect to credits authorized by section 45D of the Code, which includes Minnesota within the service area set forth in the allocation agreement. The term includes subsidiary community development entities or affiliates of any qualified community development entity, all of which are treated as a single applicant for purposes of section 116X.05.

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(b) Qualified community development entity excludes any regulated financial institution that is subject to the Community Reinvestment Act of 1977, United States Code, title 12, chapter 30, or any subsidiary or affiliate of a regulated financial institution.

(c) Paragraph (b) does not apply to a regulated financial institution, or its subsidiary or affiliate, if the regulated financial institution is chartered by, or headquartered in, Minnesota and the regulated financial institution otherwise meets the requirements of paragraph (a).

Subd. 11. Qualified equity investment. (a) "Qualified equity investment" means any equity investment in, or long-term debt security issued by, a qualified community development entity that:

(1) is acquired after January 1, 2016, at its original issuance solely in exchange for cash;

(2) has at least 100 percent of its cash purchase price used by the issuer to make qualified low-income community investments in qualified active low-income community businesses located in this state by the first anniversary of the initial credit allowance date; and

(3) is designated by the issuer as a qualified equity investment under this subdivision and is certified by the department as not exceeding the limitation contained in section 116X.05, subdivision 4.

(b) Notwithstanding the restrictions on transferability contained in section 116X.04, this term includes any qualified equity investment that does not meet the provisions of paragraph (a) if the investment:

(1) is transferred to a subsequent holder; and

(2) was a qualified equity investment in the hands of any prior holder.

(1) any investment that entitles the holder to claim tax credits under section 45D of the Code; or

(2) any investment, the proceeds of which are used to make debt or equity investments in, directly or indirectly, any other qualified community development entity.

Subd. 12. Qualified low-income community investment. "Qualified low-income community investment" means any capital or equity investment in, or loan to, any qualified active low-income community business. With respect to any one qualified active low-income community business, the maximum amount of qualified low-income community investments that may be made in the business, on a collective basis with all of its affiliates, with the proceeds of qualified equity investments that have been certified under section 116X.05 is $10,000,000 whether made by one or several qualified community development entities.

Subd. 13. Refundable performance fee. "Refundable performance fee" means a fee that a qualified community development entity seeking to have an equity investment or long-term debt security designated as a qualified equity investment and eligible for tax credits under section 116X.05 must pay to the department as assurance of compliance with certain requirements of this chapter. The amount of the fee equals one-half of one percent of the amount of the equity investment or long-term debt security requested to be designated as a qualified equity investment, up to a maximum performance fee of $500,000.

Subd. 14. State premium tax liability. "State premium tax liability" means any liability incurred by any entity under chapter 297I.

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Sec. 3. [116X.03] CREDIT ESTABLISHED.

(a) Any entity that makes a qualified equity investment earns a vested right to credit against the entity's state premium tax liability on a premium tax report filed under this section that may be utilized as described in paragraphs (b) to (e).

(b) On each credit allowance date of the qualified equity investment, the entity, or subsequent holder of the qualified equity investment, is entitled to utilize a portion of the credit during the taxable year, including the credit allowance date.

(c) The credit amount equals the applicable percentage for the credit allowance date multiplied by the purchase price paid to the issuer of the qualified equity investment.

(d) The amount of the credit claimed by an entity must not exceed the amount of the entity's state premium tax liability for the tax year for which the credit is claimed. Any amount of tax credit that the entity is prohibited from claiming in a taxable year as a result of this chapter may be carried forward for use in any subsequent taxable year.

(e) An entity claiming a credit under this chapter is not required to pay any additional retaliatory tax levied under section 297I.05 as a result of claiming that credit. In addition, it is the intent of this section that an entity claiming a credit under this chapter is not required to pay any additional tax that may arise as a result of claiming that credit.

Sec. 4. [116X.04] TRANSFERABILITY.

No tax credit claimed under this chapter is refundable or saleable on the open market. However, a participating investor may transfer credits to an affiliated insurance company, if it notifies the department in writing. Tax credits earned by a partnership, limited liability company, S corporation, or other "pass-through" entity may be allocated to the partners, members, or shareholders of the entity for their direct use in accordance with the provisions of any agreement among those partners, members, or shareholders. Any allocation of tax credits made to a partner, member, or shareholder in accordance with this section is not considered a sale of such tax credits for purposes of this chapter.

Sec. 5. [116X.05] CERTIFICATION OF QUALIFIED EQUITY INVESTMENTS.

Subdivision 1. Application. A qualified community development entity that seeks to have an equity investment or long-term debt security designated as a qualified equity investment and eligible for tax credits under this chapter may apply to the department on or after January 1, 2017. The application must include the following:

(1) evidence of the applicant's certification as a qualified community development entity, including evidence of the service area of the entity that includes Minnesota;

(2) a copy of the allocation agreement executed by the applicant, or its controlling entity, and the Community Development Financial Institutions Fund under section 116X.02, subdivision 10;

(3) a certificate executed by an executive officer of the applicant attesting that the allocation agreement remains in effect and has not been revoked or canceled by the Community Development Financial Institutions Fund;

(4) a description of the proposed amount, structure, and initial purchaser of the qualified equity investment;

(5) the minimum amount of the qualified equity investment the qualified community development entity is willing to accept if the amount proposed to be certified under clause (4) is less than the applicant's proposed amount of qualified equity investment;

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(6) a plan describing the proposed investment of the proceeds of the qualified equity investment, including the types of qualified active low-income community businesses in which the applicant expects to invest. Applicants are not required to identify qualified active low-income community businesses in which they will invest when submitting an application;

(7) a nonrefundable application fee of $5,000. This fee must be paid to the department and is required for each application submitted; and

(8) the refundable performance fee required by section 116X.08.

Subd. 2. Consideration of application. Within 30 days after receipt of a completed application containing the information in subdivision 1, including the payment of the application fee and the refundable performance fee, the department shall grant or deny the application in full or in part. If the department denies any part of the application, it shall inform the qualified community development entity of the grounds for the denial. If the qualified community development entity provides any additional information required by the department or otherwise completes its application within 15 days of the notice of denial, the application is considered completed as of the original date of submission. If the qualified community development entity fails to provide the information or complete its application within the 15-day period, the application remains denied and must be resubmitted in full with a new submission date.

Subd. 3. Certification. If the application required under this section is complete, the department shall certify the proposed equity investment or long-term debt security as a qualified equity investment that is eligible for tax credits under this chapter, subject to the limitations in subdivision 5. The department shall provide written notice of the certification to the qualified community development entity. The notice must include the name of the initial purchaser of the qualified equity investment and the credit amount. Before any tax credits are claimed under this chapter, the qualified community development entity shall provide written notice to the department of the names of the entities eligible to claim the credits as a result of holding a qualified equity investment. If the names of the entities that are eligible to utilize the credits change due to a transfer of a qualified equity investment or an allocation or affiliate transfer pursuant to section 116X.04, the qualified community development entity shall notify the department of the change.

Subd. 4. Amount certified. The department shall certify $250,000,000 in qualified equity investments. The department shall certify qualified equity investments in the order applications are received by the department. Applications received on the same day are deemed to have been received simultaneously. For applications that are complete and received on the same day, the department shall certify, consistent with remaining qualified equity investment capacity, the qualified equity investments in proportionate percentages based upon the ratio of the amount of qualified equity investment requested in an application to the total amount of qualified equity investments requested in all applications received on the same day. If any amount of qualified equity investment that would be certified under this section is less than the acceptable minimum amount specified in the application as required by subdivision 1, clause (5), the application is deemed withdrawn and the amount of qualified equity investment is proportionately allocated among the other applicants pursuant to this subdivision.

Subd. 5. Transfer of authority. An approved applicant may transfer all or a portion of its certified qualified equity investment authority to its controlling entity or any subsidiary qualified community development entity of the controlling entity, if the applicant provides the information required in the application with respect to the transferee and the applicant notifies the department of the transfer within 30 days of the transfer.

Subd. 6. Cash investment. Within 60 days of the applicant receiving notice of certification, the qualified community development entity, or any transferee under subdivision 5, shall issue the qualified equity investment and receive cash in the amount of the certified amount. The qualified community development entity or transferee under subdivision 5 must provide the department with evidence of the receipt of the cash investment within ten

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business days after receipt. If the qualified community development entity or any transferee under subdivision 5 does not receive the cash investment and issue the qualified equity investment within 60 days following receipt of the certification notice, the certification lapses and the entity may not issue the qualified equity investment without reapplying to the department for certification. Lapsed certifications revert back to the department and must be reissued, first, pro rata to other applicants whose qualified equity investment allocations were reduced under subdivision 4 and, thereafter, in accordance with the application process.

Sec. 6. [116X.06] DISALLOWANCE OF TAX CREDITS AND PENALTIES.

(a) The department shall disallow the utilization of any tax credits earned as a result of holding a qualified equity investment, but not yet claimed, if:

(1) the issuer redeems or makes principal repayment with respect to a qualified equity investment prior to the seventh anniversary of the issuance of the qualified equity investment. In this case, the department's disallowance of unclaimed tax credits are proportionate to the amount of the redemption or repayment with respect to the qualified equity investment;

(2) the issuer fails to invest an amount equal to 100 percent of the purchase price of the qualified equity investment in qualified low-income community investments in Minnesota within 12 months of the issuance of the qualified equity investment and maintain at least 100 percent of the level of investment in qualified low-income community investments in Minnesota until the last credit allowance date for the qualified equity investment. For purposes of this section, an investment is considered held by an issuer even if the investment has been sold or repaid if the issuer reinvests an amount equal to the capital returned to or recovered by the issuer from the original investment, exclusive of any profits realized, in another qualified low-income community investment within 12 months of the receipt of the capital. An issuer is not required to reinvest capital returned from qualified low-income community investments after the sixth anniversary of the issuance of the qualified equity investment, if proceeds were used to make the qualified low-income community investment, and the qualified low-income community investment is considered to be held by the issuer through the seventh anniversary of the qualified equity investment's issuance; or

(3) there is any violation of section 116X.10.

(b) Notwithstanding any contrary provision, any tax credit already claimed under this chapter is not subject to recapture upon the occurrence of an event set forth in paragraph (a), clause (1) or (2).

(c) If the department disallows the utilization of tax credits under this section, it may also, at its discretion, impose penalties on the qualified community development entity that issued the qualified equity investment for which tax credits are disallowed, not to exceed the amount of the refundable performance fee required under section 116X.08 and without regard to whether the fee has been refunded to the qualified community development entity.

Sec. 7. [116X.07] NOTICE OF NONCOMPLIANCE.

Enforcement of each of the disallowance and penalty provisions is subject to a six-month cure period. No disallowance or penalty may be imposed until the qualified community development entity has been given notice of noncompliance and afforded six months from the date of the notice to cure the noncompliance.

Sec. 8. [116X.08] REFUNDABLE PERFORMANCE FEE.

Subdivision 1. Performance guarantee amount. A qualified community development entity that seeks to have an equity investment or long-term debt security designated as a qualified equity investment and eligible for tax credits under this section shall pay a refundable performance fee to the department for deposit in the new markets performance guarantee account, which is hereby established. The following amounts are forfeited to the department:

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(1) the performance fee in its entirety if the qualified community development entity and its subsidiary qualified community development entities fail to issue the total amount of qualified equity investments certified by the department and receive cash in the total amount certified under section 116X.05, subdivision 3; or

(2) the amount of the performance fee equal to the product of the original amount of the refundable performance fee multiplied by the percentage of the remaining amount of the proceeds of the qualified equity investment not used to make qualified low-income equity investments if the qualified community development entity or any subsidiary qualified community development entity that issues a qualified equity investment certified under this section fails to meet the investment requirement under section 116X.06 by the second credit allowance date of the qualified equity investment. Forfeiture of the fee or any portion thereof under this paragraph is subject to the six-month cure period established under section 116X.07.

Subd. 2. Request for refund. The fee required under subdivision 1 must be paid to the department and held in the new markets performance guarantee account until compliance with subdivision 1 is established. The qualified community development entity may request a refund of the fee from the department no sooner than 30 days after it meets all the requirements of subdivision 1. The department has 30 days to comply with the request or give notice of noncompliance.

Sec. 9. [116X.09] PREAPPROVAL OF INVESTMENTS.

Before making a proposed qualified low-income community investment, a qualified community development entity may request from the department a written determination that the proposed investment will qualify as a qualified low-income community investment and will satisfy all applicable provisions of this chapter. The department must notify a qualified community development entity within ten business days from the receipt of a request of its determination and an explanation thereof. Any determination made by the department pursuant to this section is binding on the department.

Sec. 10. [116X.10] USE OF PROCEEDS PROHIBITED.

A qualified active low-income community business that receives a qualified low-income community investment under this chapter, or any affiliates of a qualified active low-income community business, may not directly or indirectly use the proceeds of the qualified active low-income community investment to lend to or invest in a qualified community development entity or member or affiliate of a qualified community development entity where the proceeds of the loan or investment are directly or indirectly used to fund or refinance the purchase of a qualified equity investment under this chapter.

Sec. 11. Minnesota Statutes 2014, section 297I.20, is amended by adding a subdivision to read:

Subd. 4. New markets tax credit. (a) For purposes of this subdivision, "qualified equity investment" has the meaning given in section 116X.02, subdivision 11.

(b) An insurance company that makes a qualified equity investment may claim a credit against the premiums tax imposed under this chapter equal to the amount provided under section 116X.03.

Sec. 12. EFFECTIVE DATE.

Sections 1 to 11 are effective the day following final enactment, and apply to premium tax returns originally due on or after December 31, 2015."

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Delete the title and insert:

"A bill for an act relating to taxation; economic development; adopting the Minnesota New Markets Jobs Act; amending Minnesota Statutes 2014, section 297I.20, by adding a subdivision; proposing coding for new law as Minnesota Statutes, chapter 116X."

With the recommendation that when so amended the bill be re-referred to the Committee on Taxes.

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 446, A bill for an act relating to family law; allowing allocation of income tax dependency exemptions in child support matters; amending Minnesota Statutes 2014, section 518A.38, by adding a subdivision.

Reported the same back with the following amendments:

Page 2, line 15, delete "reasonable" and after the second "and" insert "reasonable attorney"

Page 2, line 20, delete "reasonable" and after "and" insert "reasonable attorney"

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

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 512, A bill for an act relating to child support; modifying computation of child support obligations; modifying parenting time expense adjustment; amending Minnesota Statutes 2014, sections 518A.26, subdivision 14; 518A.34; 518A.36, subdivisions 1, 2; repealing Minnesota Statutes 2014, section 518A.36, subdivision 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. CHILD SUPPORT WORK GROUP.

(a) A child support work group is established to review the parenting expense adjustment in Minnesota Statutes, section 518A.36, and to identify and recommend changes to the parenting expense adjustment.

(b) Members of the work group shall include:

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

(2) two members of the senate, one appointed by the majority leader and one appointed by the minority leader;

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(3) the commissioner of human services or a designee;

(4) one staff member from the Child Support Division of the Department of Human Services, appointed by the commissioner;

(5) one representative of the Minnesota State Bar Association, Family Law section, appointed by the section;

(6) one representative of the Minnesota County Attorney's Association, appointed by the association;

(7) one representative of the Minnesota Legal Services Coalition, appointed by the coalition;

(8) one representative of the Minnesota Family Support and Recovery Council, appointed by the council; and

(9) two representatives from parent advocacy groups, one representing custodial parents and one representing noncustodial parents, appointed by the commissioner of human services.

The commissioner, or the commissioner's designee, shall appoint the work group chair.

(c) The work group shall be authorized to retain the services of an economist to help create an equitable parenting expense adjustment formula. The work group may hire an economist by use of a sole-source contract.

(d) The work group shall issue a report to the chairs and ranking minority members of the legislative committees with jurisdiction over civil law, judiciary, and health and human services by January 15, 2016. The report must include recommendations for changes to the computation of child support and recommendations on the composition of a permanent child support task force.

(e) Terms, compensation, and removal of members and the filling of vacancies are governed by Minnesota Statutes, section 15.059.

(f) The work group expires January 16, 2016.

Sec. 2. CHILD SUPPORT WORK GROUP.

$....... in fiscal year 2016 is appropriated from the general fund to the commissioner of human services for facilitation of the duties of the child support work group."

Delete the title and insert:

"A bill for an act relating to family law; establishing a child support work group; appropriating money."

With the recommendation that when so amended the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 538, A bill for an act relating to campaign finance; repealing the political contribution refund; repealing the public subsidy program and related expenditure limits; amending Minnesota Statutes 2014, sections 10A.01, subdivision 26; 10A.105, subdivision 1; 10A.257, subdivision 1; 270A.03, subdivision 7; 289A.50,

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subdivision 1; 290.01, subdivision 6; repealing Minnesota Statutes 2014, sections 10A.25, subdivisions 1, 2, 2a, 3, 3a, 5, 10; 10A.255, subdivisions 1, 3; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, 11; 10A.315; 10A.321; 10A.322, subdivisions 1, 2, 4; 10A.323; 10A.324, subdivisions 1, 3; 13.4967, subdivision 2; 290.06, subdivision 23; Minnesota Rules, parts 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, 9; 4503.1450.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Taxes.

The report was adopted.

Gunther from the Committee on Greater Minnesota Economic and Workforce Development Policy to which was referred:

H. F. No. 551, A bill for an act relating to workforce development; requiring the commissioner of labor and industry to identify competency standards for dual training; creating a dual training competency grant program; appropriating money; proposing coding for new law in Minnesota Statutes, chapters 116L; 175.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 627, A bill for an act relating to long-term care; modifying nursing facility employee scholarship costs; modifying the list of health professionals eligible for the health professional education loan forgiveness program; appropriating money; amending Minnesota Statutes 2014, sections 144.1501, subdivisions 1, 2, 3; 256B.431, subdivision 36.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Hackbarth from the Committee on Mining and Outdoor Recreation Policy to which was referred:

H. F. No. 650, A bill for an act relating to taxation; minerals; distributing the proceeds of production taxes on taconite and iron sulphides and merchantable iron ore concentrate produced therefrom; amending Minnesota Statutes 2014, section 298.28, subdivision 2.

Reported the same back with the following amendments:

Page 2, line 5, after the period, insert "The following unorganized territories in St. Louis County qualify for allocations under this paragraph:

(1) 56-17;

(2) 58-22;

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(3) 59-16;

(4) 59-21;

(5) 60-18; and

(6) 60-19.

Allocations to an unorganized territory must be based on the production of the taconite mine pit nearest to that unorganized territory, provided that the total allocation based on production of that taconite mining pit must be increased in an amount sufficient to prevent the allocation for an unorganized territory from reducing the allocation to any other municipality. Allocations for an unorganized territory are made to the county, which must use the amount allocated for public infrastructure for the unorganized territory."

Page 2, line 6, after "(c)" insert "Unless otherwise receiving an allocation under paragraph (b),"

Page 2, line 8, after "a" insert "scram iron ore concentrate"

Page 2, delete line 23 and insert:

"EFFECTIVE DATE. This section is effective beginning with the 2016 distribution."

With the recommendation that when so amended the bill be re-referred to the Committee on Taxes.

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 722, A bill for an act relating to public safety; clarifying and delimiting the authority of public officials to disarm individuals at any time; proposing coding for new law in Minnesota Statutes, chapter 624.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 745, A bill for an act relating to veterans preference; modifying certain procedures and rights related to veterans preference; amending Minnesota Statutes 2014, section 197.46.

Reported the same back with the recommendation that the bill be re-referred to the Committee on State Government Finance.

The report was adopted.

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Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 776, A bill for an act relating to telecommunications; prohibiting regulation of voice-over-Internet protocol service and Internet protocol-enabled service; amending Minnesota Statutes 2014, section 237.01, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 237.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision to read:

Subd. 9. Voice-over-Internet protocol service. "Voice-over-Internet protocol service" or "VoIP service" means any service that (1) enables real-time two-way voice communications that originate from or terminate at the user's location in Internet protocol or any successor protocol, and (2) permits users generally to receive calls that originate on the public switched telephone network and terminate calls to the public switched telephone network.

Sec. 2. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision to read:

Subd. 10. Internet protocol-enabled service. "Internet protocol-enabled service" or "IP-enabled service" means any service, capability, functionality, or application provided using Internet protocol, or any successor protocol, that enables an end user to send or receive a communication in Internet protocol format or any successor format, regardless of whether that communication is voice, data, or video.

Sec. 3. [237.037] VOICE-OVER-INTERNET PROTOCOL SERVICE AND INTERNET PROTOCOL-ENABLED SERVICE.

Subdivision 1. Regulation prohibited. Except as provided in this section, no state agency, including the commission and the Department of Commerce, or political subdivision of this state shall by rule, order, or other means directly or indirectly regulate the entry, rates, terms, quality of service, availability, classification, or any other aspect of VoIP service or IP-enabled service.

Subd. 2. VoIP regulation. (a) To the extent permitted by federal law, VoIP service is subject to the requirements of sections 237.49, 237.52, 237.70, and 403.11 with regard to the collection and remittance of the surcharges governed by those sections.

(b) A service provider required by state or federal law to provide 911 service must comply with all the requirements of chapter 403 regarding the provision of 911 service by a service provider.

Subd. 3. Relation to other law. Nothing in this section restricts, creates, expands, or otherwise affects or modifies:

(1) the commission's authority under the Federal Communications Act of 1934, United States Code, title 47, sections 251 and 252;

(2) any applicable wholesale tariff or any commission authority related to wholesale services;

(3) any commission jurisdiction over (i) intrastate switched access rates, terms, and conditions, including the implementation of federal law with respect to intercarrier compensation, or (ii) existing commission authority to address or affect the resolution of disputes regarding intercarrier compensation;

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(4) the rights of any entity, or the authority of the commission and local government authorities, with respect to the use and regulation of public rights-of-way under sections 237.162 and 237.163; or

(5) the establishment or enforcement of standards, requirements or procedures in procurement policies, internal operational policies, or work rules of any state agency or political subdivision of the state relating to the protection of individual property.

Subd. 4. Exemption. The following services delivered by IP-enabled service are not regulated under this chapter:

(1) video services provided by a cable communications system, as defined in section 238.02, subdivision 3; or

(2) cable service, as defined in United States Code, title 47, section 522, clause (6); or

(3) any other IP-enabled video service."

Delete the title and insert:

"A bill for an act relating to telecommunications; prohibiting regulation of voice-over-Internet protocol service and Internet protocol-enabled service; amending Minnesota Statutes 2014, section 237.01, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 237."

With the recommendation that when so amended the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 780, A bill for an act relating to taxation; individual income; providing a tax credit for modification or improvements to homes of people with disabilities; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 290.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. APPROPRIATION; GRANTS FOR ACCESSIBILITY HOME MODIFICATIONS.

Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given, unless the context clearly requires otherwise.

(b) "Accommodate" means to make a residence accessible for a qualified person in a manner that is necessary because the qualified person has a disability or that is necessary because the qualified person is 65 or older and has a disability or another physical limit.

(c) "Federal poverty guidelines" means the federal poverty guidelines published by the United States Department of Health and Human Services most recently before the first day of the calendar year in which the taxable year began.

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(d) "Medical provider" means a physician, licensed under Minnesota Statutes, chapter 147, or a primary care provider as defined in Minnesota Statutes, section 148.171, subdivision 17a.

(e) "Qualified modifications or improvements" means modifications or improvements to the taxpayer's principal residence, as used in section 121 of the Internal Revenue Code and located in this state, to accommodate a qualified person and must:

(1) consist of one or more of the following:

(i) no-step exterior entrances;

(ii) exterior or interior ramps;

(iii) stairway lifts;

(iv) elevators;

(v) lifts;

(vi) handrails;

(vii) grab bars or reinforcement of grab bars;

(viii) door hardware;

(ix) widening exterior doors to more than 36 inches;

(x) widening interior doors to more than 32 inches;

(xi) widening hallways to more than 36 inches;

(xii) fire or smoke alarms;

(xiii) alerting devices;

(xiv) moving electrical service including, but not limited to, outlets and switches;

(xv) environmental controls including, but not limited to, heating and cooling equipment;

(xvi) bathroom modifications including, but not limited to, accessible toilets, bathtubs, showers, plumbing, and fixtures;

(xvii) kitchen modifications including, but not limited to, accessible countertops, cabinets, appliances, plumbing, and fixtures; and

(xviii) bedroom modifications including, but not limited to, relocation to an accessible space in the home;

(2) be certified by a medical provider as necessary to accommodate the qualified person's use of the residence;

(3) consist of improvements to real property following their installation; and

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(4) not be the construction of a new residence or an addition to a residence that expands its living area beyond the items in clause (1).

(f) "Qualified person" means a taxpayer, the taxpayer's spouse, or the taxpayer's dependent, as defined in section 152 of the Internal Revenue Code, who has attained the age of 65 before the close of the taxable year or who has a disability, as defined in Minnesota Statutes, section 363A.03, subdivision 12.

Subd. 2. Grants; eligibility. The commissioner of housing finance shall provide grants to qualified persons for qualified modifications and improvements to accommodate their home. The grants shall be available to homeowners whose annual income is less than 450 percent of the federal poverty guidelines. The homeowner must provide documentation from a medical provider that modifications and improvements are necessary to accommodate the qualified person.

Subd. 3. Appropriation. $2,000,000 in fiscal year 2016 and $2,000,000 in fiscal year 2017 are appropriated from the general fund to the commissioner of the Housing Finance Agency for grants pursuant to this section to homeowners to accommodate qualified persons who need qualified modifications or improvements to their homes due to age or disability. A percentage of this amount may be used by the Housing Finance Agency for the administration of the grants program."

Delete the title and insert:

"A bill for an act relating to housing; providing grants for home modifications for accessibility; appropriating money."

With the recommendation that when so amended the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 782, A bill for an act relating to local governments; providing for reverse referendum approval of certain issuance of debt; proposing coding for new law in Minnesota Statutes, chapter 416.

Reported the same back with the recommendation that the bill be re-referred to the Property Tax and Local Government Finance Division.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 805, A bill for an act relating to public safety; establishing a working group to study and make recommendations on establishing a Silver Alert system; requiring a report.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

The report was adopted.

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Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 827, A bill for an act relating to children; extending the Task Force on the Protection of Children.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. LEGISLATIVE TASK FORCE; CHILD PROTECTION.

(a) A legislative task force is created to:

(1) review the efforts being made to implement the recommendations of the Governor's Task Force on the Protection of Children;

(2) expand the efforts into related areas of the child welfare system; and

(3) identify additional areas within the child welfare system that need to be addressed by the legislature.

(b) The four legislative members of the governor's task force shall be the members of the legislative task force. They may appoint up to eight legislators as ex officio members of the task force.

(1) the efforts by the Department of Human Services, counties, and tribes to implement laws related to child protection;

(2) efforts by the Department of Human Services, counties, and tribes to implement the recommendations of the Governor's Task Force on the Protection of Children;

(3) efforts by agencies, including but not limited to, the Minnesota Department of Education, the Minnesota Housing Finance Agency, the Minnesota Department of Corrections, and the Minnesota Department of Public Safety, to work with the Department of Human Services to assure safety and well-being for children at risk of harm or children in the child welfare system;

(4) efforts by the Department of Human Services, other agencies, counties, and tribes to implement best practices to ensure every child is protected from maltreatment and neglect and to ensure every child has the opportunity for healthy development.

(d) The task force, in cooperation with the commissioner of human services, shall issue a report to the legislature and governor on February 1, 2016. The report must contain information on the progress toward implementation of changes to the child protection system, recommendations for additional legislative changes, and procedures affecting child protection and child welfare; and funding needs to implement recommended changes.

(e) The task force shall convene upon enactment of this act and shall continue until the last day of the 2016 legislative session."

Amend the title as follows:

Page 1, line 2, delete everything after the semicolon and insert "establishing a legislative task force on child protection."

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

The report was adopted.

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Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 840, A bill for an act relating to elections; modifying various provisions related to elections administration, including provisions related to school boards, voters, ballots, registration, violations, absentee ballots, candidates, vacancies, recounts, filing fees, and precincts; modifying military and overseas absentee voting provisions; providing the Uniform Faithful Presidential Electors Act; making various technical changes; amending Minnesota Statutes 2014, sections 123B.09, subdivision 1; 200.02, subdivisions 7, 23, by adding subdivisions; 201.071, subdivision 1; 201.158; 201.275; 203B.01, subdivision 3; 203B.07, subdivision 1; 203B.08, subdivisions 1, 3; 203B.121, subdivision 2; 203B.16, subdivisions 1, 2; 203B.17, subdivisions 1, 2; 204B.06, subdivision 1b; 204B.07, subdivision 2; 204B.13, subdivisions 1, 2, 5; 204B.131, subdivision 1; 204B.19, subdivision 6; 204B.36, subdivisions 1, 2, 3, 4; 204B.44; 204B.45, subdivision 2; 204C.04, subdivision 2; 204C.08, subdivision 1d; 204C.13, subdivisions 2, 3, 5; 204C.22, subdivisions 3, 4, 7, 10; 204C.35, subdivisions 1, 2; 204C.36, subdivisions 1, 2; 204C.40, subdivision 2; 204D.11, subdivision 4; 204D.27, subdivision 11; 205.13, subdivision 3; 206.90, subdivision 6; 208.02; 208.03; 208.06; 209.01, subdivision 2; 209.021, subdivisions 2, 3; 209.09, subdivision 2; 365.22, subdivisions 2, 3; 367.31, subdivision 4; 368.85, subdivision 4; 376.04; 412.551, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 208; repealing Minnesota Statutes 2014, sections 204B.14, subdivision 6; 204C.13, subdivision 4; 204C.30, subdivision 1; 208.07; 208.08; 383A.555.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 864, A bill for an act relating to insurance fraud; establishing an administrative penalty for insurance fraud; providing that certain persons convicted of insurance fraud may not enforce contracts for no-fault benefits; establishing a crime for accident victim solicitation; amending Minnesota Statutes 2014, sections 45.0135, by adding a subdivision; 65B.44, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 609.

Reported the same back with the following amendments:

Page 1, line 11, delete the comma

Page 1, line 12, delete "upon recommendation of the Commerce Fraud Bureau"

Page 1, line 24, before "value" insert "funds or"

Page 2, delete lines 9 and 10 and insert:

"(f) After imposing a penalty under this subdivision, a person has 30 days from receipt of the notice of the penalty to notify the commissioner in writing that the person intends to contest the penalty through a hearing. The hearing request must specifically identify the penalty being contested and state the grounds for contesting it. If the person fails to notify the commissioner that the person intends to contest the penalty, the penalty is final and is not subject to further judicial or administrative review. If a person notifies the commissioner that the person intends to contest a penalty issued under this subdivision, the Office of Administrative Hearings shall conduct a hearing in accordance with the applicable provisions of chapter 14 for hearings in contested cases."

Page 3, delete lines 10 and 11

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

The report was adopted.

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Nornes from the Committee on Higher Education Policy and Finance to which was referred:

H. F. No. 880, A bill for an act relating to education; postsecondary; providing loan forgiveness to individuals teaching in agricultural education; authorizing rulemaking; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 136A.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Education Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 906, A bill for an act relating to civil actions; modifying certain protections related to public participation in government; amending Minnesota Statutes 2014, sections 554.01, subdivision 6; 554.05; proposing coding for new law in Minnesota Statutes, chapter 554; repealing Minnesota Statutes 2014, section 604A.34.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 948, A bill for an act relating to lawful gambling; making changes relating to games, licensing, reporting, and other regulatory provisions; making technical, clarifying, and conforming changes; amending Minnesota Statutes 2014, sections 349.12, subdivisions 3c, 18; 349.16, by adding a subdivision; 349.161, by adding a subdivision; 349.163, by adding a subdivision; 349.1635, by adding a subdivision; 349.1641; 349.165, subdivision 5; 349.166; 349.168, subdivision 8; 349.169; 349.17, subdivisions 3, 7, 9; 349.1721, subdivision 4; 349.173; 349.181, subdivision 3; 349.19, subdivisions 2, 5; 349.211, subdivision 2; repealing Minnesota Statutes 2014, section 349.19, subdivision 9b.

Reported the same back with the following amendments:

Page 1, line 14, after "where" insert "on-sale"

Page 1, line 15, after "gambling" insert "and consents to the conduct of bar bingo on the premises"

Page 3, after line 10, insert:

"Sec. 5. Minnesota Statutes 2014, section 349.163, subdivision 9, is amended to read:

Subd. 9. Sales required. No licensed manufacturer may refuse to sell gambling equipment to a licensed distributor unless:

(1) a specific type of gambling equipment sold on an exclusive basis is at issue;

(2) the manufacturer does not sell gambling equipment to any distributor in Minnesota;

(3) a Minnesota statute or rule prohibits the sale; or

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(4) the distributor is delinquent on any payment owed to the manufacturer.

This subdivision does not apply to application software and those computer programs used by a licensed manufacturer in the production, play, and reporting of board-approved electronic pull-tab games or electronic bingo games.

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

Page 3, line 19, after "returned" insert "defective"

Page 5, line 1, delete the new language

Page 7, line 16, after "effective" insert "the day following final enactment"

Page 8, line 3, strike "When required by the board,"

Page 8, line 4, after "file" insert ", by the 20th of each month," and after "director" insert "a list of all gambling equipment that"

Page 8, line 5, delete "inventory" and strike "at which the"

Page 8, line 6, delete "sold or leased" and strike "all gambling equipment"

Page 8, line 7, delete the new language and insert "sold or leased in the preceding month"

Page 10, line 16, after "pull-tabs" insert "and consents to the conduct of electronic pull-tab devices on the premises"

Page 14, line 4, delete "$1,000" and insert "$2,000"

Renumber the sections in sequence and correct the internal references

Correct the title numbers accordingly

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

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 953, A bill for an act relating to real property; clarifying the mortgage foreclosure by advertisement publication requirements; amending Minnesota Statutes 2014, sections 580.15; 582.25; proposing coding for new law in Minnesota Statutes, chapter 580.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [580.033] WHERE NOTICE PUBLISHED.

Subdivision 1. Notice of sale; publication. (a) For purposes of this chapter, publication of the notice of sale shall be sufficient if it occurs:

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(1) in a qualified newspaper having its known office of issue located in the county where the mortgaged premises, or some part thereof, are located; or

(2) in a qualified newspaper having its known office of issue located in an adjoining county and the publisher of the newspaper in the sworn affidavit of publication required by section 331A.07 states that a substantial portion of the newspaper's circulation is in the county where the mortgaged premises, or some part thereof, are located.

(b) In both cases, the affidavit of publication shall also state the city and county where the newspaper's known office of issue is located, and that the newspaper complies with the conditions described in clause (1) or (2).

Subd. 2. Definitions. As used in this section, "known office of issue" is defined as provided in section 331A.01, subdivision 2, and "qualified newspaper" is defined as provided in section 331A.01, subdivision 8.

Sec. 2. Minnesota Statutes 2014, section 582.25, is amended to read:

582.25 MORTGAGES; VALIDATING FORECLOSURE SALES.

Every mortgage foreclosure sale by advertisement in this state under power of sale contained in any mortgage duly executed and recorded in the office of the county recorder or registered with the registrar of titles of the proper county of this state, together with the record of such foreclosure sale, is, after expiration of the period specified in section 582.27, hereby legalized and made valid and effective to all intents and purposes, as against any or all of the following objections:

(1) that the power of attorney, recorded or filed in the proper office provided for by section 580.05:

(i) did not definitely describe and identify the mortgage;

(ii) did not definitely describe and identify the mortgage, but instead described another mortgage between the same parties;

(iii) did not have the corporate seal affixed thereto, if executed by a corporation;

(iv) had not been executed and recorded or filed prior to sale, or had been executed prior to, but not recorded or filed until after such sale;

(v) was executed subsequent to the date of the printed notice of sale or subsequent to the date of the first publication of such notice;

(2) that no power of attorney to foreclose such mortgage as provided in section 580.05, was ever given, or recorded, or registered;

(3) that the notice of sale:

(i) was published only three, four or five times, or that it was published six times but not for six weeks prior to the date of sale;

(ii) properly described the property to be sold in one or more of the publications thereof but failed to do so in the other publications thereof, the correct description having been contained in the copy of said notice served on the occupant of the premises;

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(iii) correctly stated the date of the month and hour and place of sale but named a day of the week which did not fall on the date given for such sale, or failed to state or state correctly the year of such sale;

(iv) correctly described the real estate but omitted the county and state in which said real estate is located;

(v) correctly described the land by government subdivision, township and range, but described it as being in a county other than that in which said mortgage foreclosure proceedings were pending, and other than that in which said government subdivision was actually located;

(vi) did not state the amount due or failed to state the correct amount due or claimed to be due;

(vii) incorrectly stated the municipal status of the place where the sale was to occur;

(viii) in one or more of the publications thereof, or in the notice served on the occupant or occupants designated either a place or a time of sale other than that stated in the certificate of sale;

(ix) failed to state the names of one or more of the assignees of the mortgage and described the subscriber thereof as mortgagee instead of assignee;

(x) failed to state or incorrectly stated the name of the mortgagor, the mortgagee, or assignee of mortgagee;

(xi) was not served upon persons whose possession of the mortgaged premises was otherwise than by their personal presence thereon, if a return or affidavit was recorded or filed as a part of the foreclosure record that at a date at least four weeks prior to the sale the mortgaged premises were vacant and unoccupied;

(xii) was not served upon all of the parties in possession of the mortgaged premises, provided it was served upon one or more of such parties;

(xiii) was not served upon the persons in possession of the mortgaged premises, if, at least two weeks before the sale was actually made, a copy of the notice was served upon the owner in the manner provided by law for service upon the occupants, or the owner received actual notice of the proposed sale;

(xiv) gave the correct description at length, and an incorrect description by abbreviation or figures set off by the parentheses, or vice versa;

(xv) was served personally upon the occupants of the premises as such, but said service was less than four weeks prior to the appointed time of sale;

(xvi) did not state the original principal amount secured, or failed to state the correct original principal amount secured;

(4) that distinct and separate parcels of land were sold together as one parcel and to one bidder for one bid for the whole as one parcel;

(5) that no authenticated copy of the order appointing, or letters issued to a foreign representative of the estate of the mortgagee or assignee, was properly filed or recorded, provided such order or letters have been filed or recorded in the proper office prior to one year after the last day of the redemption period of the mortgagor, the mortgagor's personal representatives or assigns;

(6) that a holder of a mortgage was a representative appointed by a court of competent jurisdiction in another state or county in which before the foreclosure sale an authenticated copy of the representative's letters or other record of authority were filed for record in the office of the county recorder of the proper county but no certificate was filed and recorded therewith showing that said letters or other record of authority were still in force;

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(7)(i) that said mortgage was assigned by a decree of a court exercising probate jurisdiction in which decree the mortgage was not specifically or sufficiently described;

(ii) that the mortgage foreclosed had been assigned by the final decree of the court exercising probate jurisdiction to the heirs, devisees, or legatees of the deceased mortgagee, or the mortgagee's assigns, and subsequent thereto and before the representative of the estate had been discharged by order of the court, the representative had assigned the mortgage to one of the heirs, devisees, or legatees named in such final decree, and such assignment placed on record and the foreclosure proceedings conducted in the name of such assignee and without any assignment of the mortgage from the heirs, devisees, or legatees named in such final decree, and the mortgaged premises bid in at the sale by such assignee, and the sheriff's certificate of sale, with accompanying affidavits recorded in the office of the county recorder of the proper county;

(iii) that a mortgage owned by joint tenants or tenants in common was foreclosed by only one tenant;

(8) that the sheriff's certificate of sale or the accompanying affidavits and return of service were not executed, filed or recorded within 20 days after the date of sale, but have been executed and filed or recorded prior to the last day of the redemption period of the mortgagor, the mortgagor's personal representatives or assigns;

(9) that the year, or the month, or the day, or the hour of the sale is omitted or incorrectly or insufficiently stated in the notice of sale or the sheriff's certificate of sale;

(10)(i) that prior to the foreclosure no registration tax was paid on the mortgage, provided such tax had been paid prior to one year after the last day of the redemption period of the mortgagor, the mortgagor's personal representatives or assigns;

(ii) that an insufficient registration tax has been paid on the mortgage;

(11) that the date of the mortgage or any assignment thereof or the date, the month, the day, hour, book, and page, or document number of the record or filing of the mortgage or any assignment thereof, in the office of the county recorder or registrar of titles is omitted or incorrectly or insufficiently stated in the notice of sale or in any of the foreclosure papers, affidavits or instruments;

(12) that the notice of mortgage foreclosure sale or sheriff's certificate of sale designated the place of sale as the office of a county official located in the court house of the county when such office was not located in such court house;

(13) that no notice of the pendency of the proceedings to enforce or foreclose the mortgage as provided in section 508.57, was filed with the registrar of titles or no memorial thereof was entered on the register at the time of or prior to the commencement of such proceedings; or that when required by section 508.57, the notice of mortgage foreclosure sale failed to state the fact of registration;

(14) that the power of attorney to foreclose or the notice of sale was signed by the person who was the representative of an estate, but failed to state or correctly state the person's representative capacity;

(15) that the complete description of the property foreclosed was not set forth in the sheriff's certificate of sale, if said certificate correctly refers to the mortgage by book and page numbers or document number and date of filing and the premises are accurately described in the printed notice of sale annexed to said foreclosure sale record containing said sheriff's certificate of sale;

(16) that the date of recording of the mortgage was improperly stated in the sheriff's certificate of mortgage foreclosure sale, the mortgage being otherwise properly described in said sheriff's certificate of mortgage foreclosure sale and said certificate of mortgage foreclosure sale further referring to the printed notice of mortgage foreclosure sale attached to said sheriff's certificate of mortgage foreclosure sale in which printed notice the mortgage and its recording was properly described;

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(17) that prior to the first publication of the notice of sale in foreclosure of a mortgage by advertisement, an action or proceeding had been instituted for the foreclosure of said mortgage or the recovery of the debt secured thereby and such action or proceeding had not been discontinued;

(18) that at the time and place of sale the sheriff considered and accepted a bid submitted prior to the date of the sale by the owner of the mortgage and sold the mortgaged premises for the amount of such bid, no other bid having been submitted, and no one representing the owner of the mortgage being present at the time and place of sale;

(19) that such sale was postponed by the sheriff to a date or time subsequent to the one specified in the notice of sale but there was no publication or posting of a notice of such postponement;

(20) that there was not recorded with letters or other record of authority issued to a representative appointed by a court of competent jurisdiction in another state or county, a certificate that said letters or other record of authority were still in force and effect;

(21) that the sheriff's affidavit of sale correctly stated in words the sum for which said premises were bid in and purchased by the mortgagee, but incorrectly stated the same in figures immediately following the correct amount in words;

(22) that the notice of pendency of the foreclosure as required by section 580.032 was not filed for record before the first date of publication of the foreclosure notice, but was filed before the date of sale; ~~and~~

(23) that the servicer did not comply with the requirements of section 582.043; and

(24) that the publication of the notice of sale did not comply with section 580.033.

Sec. 3. EFFECTIVE DATE.

Sections 1 and 2 are effective July 1, 2015."

Correct the title numbers accordingly

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

The report was adopted.

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 973, A bill for an act relating to human services; appropriating money for the collaboration of community services partners demonstration project.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. HOME AND COMMUNITY-BASED SERVICES INCENTIVE POOL.

The commissioner of human services shall develop an initiative to provide incentives for innovation in achieving integrated competitive employment, living in the most integrated setting, and other outcomes determined by the commissioner. The commissioner shall seek requests for proposals and shall contract with one or more entities to provide incentive payments for meeting identified outcomes. The initial requests for proposals must be issued by October 1, 2015."

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Delete the title and insert:

"A bill for an act relating to human services; directing the commissioner of human services to develop a home and community-based services incentive pool."

With the recommendation that when so amended the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 975, A bill for an act relating to human services; modifying requirements for the State Quality Council and regional quality councils; appropriating money; amending Minnesota Statutes 2014, section 256B.097, subdivisions 3, 4.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 981, A bill for an act relating to health occupations; changing provisions for licensing of optometrists; amending Minnesota Statutes 2014, sections 148.52; 148.54; 148.57; 148.574; 148.575; 148.577; 148.59; 148.603; proposing coding for new law in Minnesota Statutes, chapter 148; repealing Minnesota Statutes 2014, sections 148.571; 148.572; 148.573, subdivision 1; 148.576, subdivisions 1, 2.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 1009, A bill for an act relating to human services; setting minimum reimbursement rates under medical assistance for public health nurse home visits; appropriating money for nurse-family partnership programs; proposing coding for new law in Minnesota Statutes, chapter 256B.

Reported the same back with the following amendments:

Page 1, line 11, delete "that are evidence-based, intensive, long-term, and" and insert "administered by home visiting programs that meet the United States Department of Health and Human Services criteria for evidence-based models and are identified by the commissioner of health as eligible to be implemented under the Maternal, Infant, and Early Childhood Home Visiting program. Home visits shall be"

With the recommendation that when so amended the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

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Garofalo from the Committee on Job Growth and Energy Affordability Policy and Finance to which was referred:

H. F. No. 1012, A bill for an act relating to human services; modifying residency ratio restrictions for home and community-based settings; amending Minnesota Statutes 2014, section 256B.492.

Reported the same back with the following amendments:

Page 2, after line 29, insert:

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

With the recommendation that when so amended the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1056, A bill for an act relating to public safety; establishing a grant program to assist local law enforcement agencies to develop or expand lifesaver programs that locate lost or wandering persons who are mentally impaired; authorizing rulemaking; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 299C.

Reported the same back with the following amendments:

Page 2, line 7, after "award" insert ", on a first-come, first-served basis,"

Page 2, line 8, delete everything after the period

Page 2, delete lines 9 and 10

With the recommendation that when so amended the bill be re-referred to the Committee on Health and Human Services Reform.

The report was adopted.

Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 1066, A bill for an act relating to telecommunications; providing for competitive market regulation for certain local exchange carriers; proposing coding for new law in Minnesota Statutes, chapter 237.

Reported the same back with the following amendments:

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Delete everything after the enacting clause and insert:

"Section 1. [237.025] COMPETITIVE MARKET REGULATION.

Subdivision 1. Definitions. (a) "Competitive service provider" means a provider of local residential voice service who owns a substantial proportion of the last-mile or loop facilities delivering the service in an exchange service area, without regard to the technology used to deliver the service. "Competitive service provider" includes, but is not limited to, a wireless or Voice over Internet Protocol provider who offers service to a majority of households in an exchange service area with the wireless provider's own facilities and the remainder by roaming through another wireless carrier's facilities, but does not include:

(1) satellite technology;

(2) wireless providers who resell voice services purchased at wholesale;

(3) competitive local exchange carriers who do not who own a substantial proportion of the last-mile or loop facilities over which they provide local residential voice service; or

(4) over-the-top VOIP providers.

(b) "Exchange service area" has the meaning given in Minnesota Rules, part 7810.0100, subpart 15.

(c) "Over-the-top VOIP provider" means a VOIP provider that has no business relationship with the provider of the Internet connection used by the VOIP provider to deliver voice service.

(d) "VOIP" or "Voice over Internet Protocol" means any service that:

(1) enables real-time two-way voice communications that originate from or terminate at the user's location in Internet protocol or any successor protocol; and

(2) permits users to receive calls that originate on the public switched telephone network and terminate calls to the public switched telephone network.

Subd. 2. Petition. (a) A local exchange carrier may petition the commission to be regulated under this section in any exchange service area in which the carrier provides local exchange service. The petition must be served on the commission, the department, the Office of the Attorney General, and any other person designated by the commission.

(b) A petition filed under this subdivision must include:

(1) a list of exchange service areas in which the local exchange carrier is seeking to be regulated under this section;

(2) the local services offered by the local exchange carrier in each exchange service area;

(3) a list of alternative providers of local services in each exchange service area;

(4) a description of affiliate relationships the petitioning local exchange carrier has with any other provider of local service in each exchange service area;

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(5) documentation demonstrating the loss of local residential voice customers in each local calling area over, at a minimum, the previous five years;

(6) evidence demonstrating that the local exchange carrier satisfies the competitive criteria in subdivision 4 in each exchange service area; and

(7) other information requested by the commission that is relevant to the applicable competitive criteria in subdivision 4.

Subd. 3. Process; objection; review. (a) A petition by a local exchange carrier seeking to be regulated under this section shall be reviewed by the commission as provided under this subdivision.

(b) A party objecting to a local exchange carrier's petition must file an objection within 20 days.

(c) If no party objects to a petitioning local exchange carrier's proposed election within 20 days of the filing of the petition, the petition is deemed approved.

(d) If a party raises an objection to a local exchange carrier's petition, the commission must provide interested parties an opportunity to comment on the merits of the petition.

(e) The commission shall make a final determination regarding the petition within 180 days of the date all information required under subdivision 2 was submitted.

(f) In reviewing the petition, the commission may request additional information from the petitioning local exchange carrier and other service providers under the commission's jurisdiction that provide service in the relevant exchange service area.

Subd. 4. Competitive criteria. (a) If a petitioning local exchange carrier demonstrates that it serves fewer than 50 percent of the households in an exchange service area, and at least 50 percent of households in the exchange service area can choose voice service from at least one additional competitive service provider, the commission shall approve the petition.

(b) If a petitioning local exchange carrier serves more than 50 percent of the households in an exchange service area, the commission shall approve the petition if the petitioner demonstrates that:

(1) at least 50 percent of households in the exchange service area can choose voice service from at least one additional competitive service provider;

(2) no significant economic, technological, or other barriers to market entry and exit exist; and

(3) no single provider has the ability to maintain prices above competitive levels for a significant period of time or otherwise deter competition.

Subd. 5. Market regulations. (a) A local exchange carrier that has received approval from the commission to be regulated under this section in one or more of its exchange service areas shall be subject to regulation as a telecommunications carrier under section 237.035 and as a competitive local exchange carrier in Minnesota Rules, parts 7811.2210 and 7812.2210, as applicable, in the approved exchange service areas. Regulation under this section is effective 30 days after a petition is approved by the commission under subdivision 4.

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(b) If a local exchange carrier receives commission approval to be regulated under this section, any existing alternative form of plan, price, or service regulation terminates on the day the regulation under this section becomes effective.

Subd. 6. Relation to other law. Nothing in this section affects or modifies:

(1) any entity's obligations or rights, or the commission's authority, under the Federal Communications Act of 1934, United States Code, title 47, sections 251 and 252;

(2) any commission jurisdiction over:

(i) intrastate switched access rates, terms, and conditions, including the implementation of federal law with respect to intercarrier compensation; or

(ii) commission authority to address or affect the resolution of disputes regarding intercarrier compensation; and

(3) the rights of any entity, or the authority of the commission or local government authorities, with respect to the use and regulation of public rights-of-way under sections 237.162 and 237.163.

Subd. 7. Reexamining applicability of competitive criteria. The commission may, upon petition or on its own motion, open a proceeding to examine whether the competitive criteria in subdivision 4 continue to be met in an exchange service area in which a local exchange carrier previously received commission approval to be regulated under this section. If the commission determines that the competitive criteria are no longer met, it shall determine the appropriate level of regulation for that provider in that exchange service area.

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

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

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 1085, A bill for an act relating to public safety; enhancing penalties for careless driving resulting in death or great bodily harm; repealing reckless driving; amending Minnesota Statutes 2014, section 169.13, subdivisions 2, 3; repealing Minnesota Statutes 2014, section 169.13, subdivision 1.

Reported the same back with the following amendments:

Page 1, after line 11, insert:

"(b) A person shall not race any vehicle upon any street or highway of this state. Any person who willfully compares or contests relative speeds by operating one or more vehicles is guilty of a misdemeanor, whether or not the speed contested or compared is in excess of the maximum speed prescribed by law."

Page 1, line 12, delete "(b)" and insert "(c)" and before "and" insert "or (b)," and delete the comma

Page 1, line 13, delete the comma and after "another" insert a comma

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Page 1, line 14, delete "(c)" and insert "(d)"

Page 2, after line 10, insert:

"Sec. 4. JACQUELYN DEVNEY AND THOMAS CONSIDINE ROADWAY SAFETY ACT.

If 2015 H. F. No. 1085 is enacted, it may be cited as the Jacquelyn Devney and Thomas Considine Roadway Safety Act."

Renumber the sections in sequence

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

The report was adopted.

Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 1090, A bill for an act relating to liquor; creating an 8:00 a.m. on-sale opening time; amending Minnesota Statutes 2014, section 340A.504, subdivision 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

RECODIFICATION

Section 1. Minnesota Statutes 2014, section 340A.101, is amended by adding a subdivision to read:

Subd. 3a. Brew pub. "Brew pub" is a brewer who also holds one or more retail on-sale licenses and who manufactures fewer than 3,500 barrels of malt liquor in a year, at any one licensed premises, the entire production of which is solely for consumption on tap on any licensed premises owned by the brewer, or for off-sale from those licensed premises as permitted in section 340A.24, subdivision 2.

Sec. 2. Minnesota Statutes 2014, section 340A.22, is amended to read:

340A.22 MICRODISTILLERIES.

Subdivision 1. Activities. (a) A microdistillery licensed under ~~section 340A.301, subdivision 6c,~~ this chapter may provide on its premises samples of distilled spirits manufactured on its premises, in an amount not to exceed 15 milliliters per variety per person. No more than 45 milliliters may be sampled under this paragraph by any person on any day.

(b) A microdistillery can sell cocktails to the public, pursuant to subdivision 2.

Subd. 2. Cocktail room license. (a) A municipality, including a city with a municipal liquor store, may issue the holder of a microdistillery license under ~~section 340A.301, subdivision 6c,~~ this chapter a microdistillery cocktail room license. A microdistillery cocktail room license authorizes on-sale of distilled liquor produced by the distiller for consumption on the premises of or adjacent to one distillery location owned by the distiller. Nothing in this

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subdivision precludes the holder of a microdistillery cocktail room license from also holding a license to operate a restaurant at the distillery. Section 340A.409 shall apply to a license issued under this subdivision. All provisions of this chapter that apply to a retail liquor license shall apply to a license issued under this subdivision unless the provision is explicitly inconsistent with this subdivision.

(b) A distiller may only have one cocktail room license under this subdivision, and may not have an ownership interest in a distillery licensed under section 340A.301, subdivision 6, paragraph (a).

(c) The municipality shall impose a licensing fee on a distiller holding a microdistillery cocktail room license under this subdivision, subject to limitations applicable to license fees under section 340A.408, subdivision 2, paragraph (a).

(d) A municipality shall, within ten days of the issuance of a license under this subdivision, inform the commissioner of the licensee's name and address and trade name, and the effective date and expiration date of the license. The municipality shall also inform the commissioner of a license transfer, cancellation, suspension, or revocation during the license period.

(e) No single entity may hold both a cocktail room and taproom license, and a cocktail room and taproom may not be co-located.

Subd. 3. License; fee. The commissioner shall establish a fee for licensing microdistilleries that adequately covers the cost of issuing the license and other inspection requirements. The fees shall be deposited in an account in the special revenue fund and are appropriated to the commissioner for the purposes of this subdivision. All other requirements of section 340A.301 apply to a license under this section.

Sec. 3. [340A.24] BREW PUBS.

Subdivision 1. On-sale license. A brew pub may be issued an on-sale intoxicating liquor or 3.2 percent malt liquor license by a municipality for a restaurant operated in the place of manufacture.

Subd. 2. Off-sale license. Notwithstanding section 340A.405, a brew pub that holds an on-sale license issued pursuant to this section may, with the approval of the commissioner, be issued a license by a municipality for off-sale of malt liquor produced and packaged on the licensed premises. Off-sale of malt liquor shall be limited to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brew pub is located, and the malt liquor sold off-sale must be removed from the premises before the applicable off-sale closing time at exclusive liquor stores. Packaging of malt liquor for off-sale under this subdivision must comply with section 340A.285.

Subd. 3. Total retail sales. A brew pub's total retail sales at on- or off-sale under this section may not exceed 3,500 barrels per year, provided that off-sales may not total more than 500 barrels.

Subd. 4. Interest in other license. (a) A brew pub may hold or have an interest in other retail on-sale licenses, but may not have an ownership interest in whole or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer, importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by management, direction, or control.

(b) Notwithstanding this prohibition, a brew pub may be an affiliate or subsidiary company of a brewer licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is:

(1) manufacture licensed under section 340A.301, subdivision 6, clause (d);

(2) manufacture in another state for consumption exclusively in a restaurant located in the place of manufacture; or

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(3) manufacture in another state for consumption primarily in a restaurant located in or immediately adjacent to the place of manufacture if the brewer was licensed under section 340A.301, subdivision 6, clause (d), on January 1, 1995.

Subd. 5. Prohibition. A brew pub licensed under this chapter may not be licensed as an importer under section 340A.302.

Sec. 4. [340A.26] BREWER TAPROOMS.

Subdivision 1. Brewer taproom license. (a) A municipality, including a city with a municipal liquor store, may issue the holder of a brewer's license under section 340A.301, subdivision 6, clause (c), (i), or (j), a brewer taproom license. A brewer taproom license authorizes on-sale of malt liquor produced by the brewer for consumption on the premises of or adjacent to one brewery location owned by the brewer. Nothing in this subdivision precludes the holder of a brewer taproom license from also holding a license to operate a restaurant at the brewery. Section 340A.409 shall apply to a license issued under this subdivision. All provisions of this chapter that apply to a retail liquor license shall apply to a license issued under this subdivision unless the provision is explicitly inconsistent with this subdivision.

(b) A brewer may only have one taproom license under this subdivision, and may not have an ownership interest in a brew pub.

Subd. 2. Prohibition. A municipality may not issue a brewer taproom license to a brewer if the brewer seeking the license, or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 250,000 barrels of malt liquor annually or a winery that produces more than 250,000 gallons of wine annually.

Subd. 3. Fee. The municipality shall impose a licensing fee on a brewer holding a brewer taproom license under this subdivision, subject to limitations applicable to license fees under section 340A.408, subdivision 2, paragraph (a).

Subd. 4. Municipality to inform commissioner. A municipality shall, within ten days of the issuance of a license under this subdivision, inform the commissioner of the licensee's name and address and trade name, and the effective date and expiration date of the license. The municipality shall also inform the commissioner of a license transfer, cancellation, suspension, or revocation during the license period.

Subd. 5. Sunday on-sale. Notwithstanding section 340A.504, subdivision 3, a taproom may be open and may conduct on-sale business on Sundays if authorized by the municipality.

Sec. 5. [340A.28] SMALL BREWER OFF-SALE.

Subdivision 1. License; limitations. A brewer licensed under section 340A.301, subdivision 6, clause (c), (i), or (j), may be issued a license by a municipality for off-sale of malt liquor at its licensed premises that has been produced and packaged by the brewer. The license must be approved by the commissioner. A brewer may only have one license under this subdivision. The amount of malt liquor sold at off-sale may not exceed 500 barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor sold off-sale must be removed from the premises before the applicable off-sale closing time at exclusive liquor stores. Packaging of malt liquor for off-sale under this subdivision must comply with section 340A.285.

Subd. 2. Prohibition. A municipality may not issue a license under this section to a brewer if the brewer seeking the license, or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 20,000 barrels of its own brands of malt liquor annually or a winery that produces more than 250,000 gallons of wine annually.

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Subd. 3. Fee. The municipality shall impose a licensing fee on a brewer holding a license under this subdivision, subject to limitations applicable to license fees under section 340A.408, subdivision 3, paragraph (a).

Sec. 6. [340A.285] GROWLERS.

(a) Malt liquor authorized for off-sale pursuant to section 340A.24 or 340A.28 shall be packaged in 64-ounce containers commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall bear a twist‑type closure, cork, stopper, or plug. At the time of sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken upon opening the container or bottle. The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brew pub or brewer selling the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100.

(b) A brew pub or brewer may, but is not required to, refill any container or bottle with malt liquor for off-sale at the request of the customer. A brew pub or brewer refilling a container or bottle must do so at its licensed premises and the container or bottle must be filled at the tap at the time of sale. A container or bottle refilled under this paragraph must be sealed and labeled in the manner described in paragraph (a).

Sec. 7. Minnesota Statutes 2014, section 340A.301, is amended to read:

340A.301 MANUFACTURERS, BREWERS, AND WHOLESALERS LICENSES.

Subdivision 1. Licenses required. No person may directly or indirectly manufacture or sell at wholesale intoxicating liquor, or 3.2 percent malt liquor without obtaining an appropriate license from the commissioner, except where otherwise provided in this chapter. A manufacturer's license includes the right to import. A licensed brewer may sell the brewer's products at wholesale only if the brewer has been issued a wholesaler's license. The commissioner shall issue a wholesaler's license to a brewer only if (1) the commissioner determines that the brewer was selling the brewer's own products at wholesale in Minnesota on January 1, 1991, or (2) the brewer has acquired a wholesaler's business or assets under subdivision 7a, paragraph (c) or (d). A licensed wholesaler of intoxicating malt liquor may sell 3.2 percent malt liquor at wholesale without an additional license.

Subd. 2. Persons eligible. (a) Licenses under this section may be issued only to a person who:

(1) is of good moral character and repute;

(2) is 21 years of age or older;

(3) has not had a license issued under this chapter revoked within five years of the date of license application, or to any person who at the time of the violation owns any interest, whether as a holder of more than five percent of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or in the business conducted thereon, or to a corporation, partnership, association, enterprise, business, or firm in which any such person is in any manner interested; and

(4) has not been convicted within five years of the date of license application of a felony, or of a willful violation of a federal or state law, or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution of alcoholic beverages. The Alcohol and Gambling Enforcement Division may require that fingerprints be taken and may forward the fingerprints to the Federal Bureau of Investigation for purposes of a criminal history check.

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(b) In order to determine if an individual has a felony or willful violation of federal or state law governing the manufacture, sale, distribution, or possession for sale or distribution of an alcoholic beverage, the applicant for a license to manufacture or sell at wholesale must provide the commissioner with their signed, written informed consent to conduct a background check. The commissioner may query the Minnesota criminal history repository for records on the applicant. If the commissioner conducts a national criminal history record check, the commissioner must obtain fingerprints from the applicant and forward them and the required fee to the superintendent of the Bureau of Criminal Apprehension. The superintendent may exchange the fingerprints with the Federal Bureau of Investigation for purposes of obtaining the applicant's national criminal history record information. The superintendent shall return the results of the national criminal history records check to the commissioner for the purpose of determining if the applicant is qualified to receive a license.

Subd. 3. Application. An application for a license under this section must be made to the commissioner on a form the commissioner prescribes and must be accompanied by the fee specified in subdivision 6. If an application is denied, $100 of the amount of any fee exceeding that amount shall be retained by the commissioner to cover costs of investigation.

Subd. 4. Bond. The commissioner may not issue a license under this section to a person who has not filed a bond with corporate surety, or cash, or United States government bonds payable to the state. The proof of financial responsibility must be approved by the commissioner before the license is issued. The bond must be conditioned on the licensee obeying all laws governing the business and paying when due all taxes, fees, penalties and other charges, and must provide that it is forfeited to the state on a violation of law. This subdivision does not apply to a Minnesota farm winery, licensed under section 340A.315, that is in existence as of January 1, 2010. Bonds must be in the following amounts:

	Manufacturers and wholesalers of intoxicating liquor except as provided in this subdivision	$10,000
	Manufacturers and wholesalers of wine up to 25 percent alcohol by weight	$5,000
	Manufacturers and wholesalers of beer of more than 3.2 percent alcohol by weight	$1,000
	Manufacturers and wholesalers of fewer than 20,000 proof gallons	$2,000
	Manufacturers and wholesalers of 20,000 to 40,000 proof gallons	$3,000

Subd. 5. Period of license. Licenses issued under this section are valid for one year except that to coordinate expiration dates initial licenses may be issued for a shorter period.

Subd. 6. Fees. The annual fees for licenses under this section are as follows:

(a)	Manufacturers (except as provided in clauses (b) and (c))	$30,000
	Duplicates	$3,000
(b)	Manufacturers of wines of not more than 25 percent alcohol by volume	$500
(c)	Brewers who manufacture more than 3,500 barrels of malt liquor in a year	$4,000
(d)	Brewers who also hold one or more retail on-sale licenses and who manufacture fewer than 3,500 barrels of malt liquor in a year, at any one licensed premises, the entire production of which is solely for consumption on tap on any licensed premises owned by the brewer, or for off-sale from those licensed premises as permitted in subdivision 7 Brew pubs. A ~~brewer~~ brew pub licensed under this clause must obtain a separate license for each licensed premises where the ~~brewer brews~~ brew pub produces malt liquor~~. A brewer licensed under this clause may not be licensed as an importer under this chapter~~	$500
Journal of the House - 32nd Day - Monday, March 23, 2015 - Top of Page 1167 (e)	Wholesalers (except as provided in clauses (f), (g), and (h))	$15,000
	Duplicates	$3,000
(f)	Wholesalers of wines of not more than 25 percent alcohol by volume	$3,750
(g)	Wholesalers of intoxicating malt liquor	$1,000
	Duplicates	$25
(h)	Wholesalers of 3.2 percent malt liquor	$10
(i)	Brewers who manufacture fewer than 2,000 barrels of malt liquor in a year	$150
(j)	Brewers who manufacture 2,000 to 3,500 barrels of malt liquor in a year	$500

If a business licensed under this section is destroyed, or damaged to the extent that it cannot be carried on, or if it ceases because of the death or illness of the licensee, the commissioner may refund the license fee for the balance of the license period to the licensee or to the licensee's estate.

Subd. 6a. Permits and identification cards; fees. Any person engaged in the purchase, sale, or use for any purpose other than personal consumption of intoxicating alcoholic beverages or ethyl alcohol shall obtain the appropriate regulatory permit and identification card from the commissioner as provided in this subdivision. The fee for each permit, other than one issued to a state or federal agency, is $35 and must be submitted together with the appropriate application form provided by the commissioner. Identification cards and permits must be issued for a period coinciding with that of the appropriate state or municipal license and are not transferable. In instances where there is no annual license period, cards and permits expire one year after the date of issuance. The authority to engage in the purchase, sale, or use granted by the card or permit may be revoked by the commissioner upon evidence of a violation by the holder of such a card or permit of any of the provisions of chapter 340A or any rule of the commissioner made pursuant to law.

~~Subd. 6b.~~ ~~Brewer taproom license.~~ (a) A municipality, including a city with a municipal liquor store, may issue the holder of a brewer's license under subdivision 6, clause (c), (i), or (j), a brewer taproom license. A brewer taproom license authorizes on-sale of malt liquor produced by the brewer for consumption on the premises of or adjacent to one brewery location owned by the brewer. Nothing in this subdivision precludes the holder of a brewer taproom license from also holding a license to operate a restaurant at the brewery. Section 340A.409 shall apply to a license issued under this subdivision. All provisions of this chapter that apply to a retail liquor license shall apply to a license issued under this subdivision unless the provision is explicitly inconsistent with this subdivision.

~~(b) A brewer may only have one taproom license under this subdivision, and may not have an ownership interest in a brewery licensed under subdivision 6, clause (d).~~

(c) A municipality may not issue a brewer taproom license to a brewer if the brewer seeking the license, or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 250,000 barrels of malt liquor annually or a winery that produces more than 250,000 gallons of wine annually.

(d) The municipality shall impose a licensing fee on a brewer holding a brewer taproom license under this subdivision, subject to limitations applicable to license fees under section 340A.408, subdivision 2, paragraph (a).

(e) A municipality shall, within ten days of the issuance of a license under this subdivision, inform the commissioner of the licensee's name and address and trade name, and the effective date and expiration date of the license. The municipality shall also inform the commissioner of a license transfer, cancellation, suspension, or revocation during the license period.

~~(f) Notwithstanding section 340A.504, subdivision 3, a taproom may be open and may conduct on-sale business on Sundays if authorized by the municipality.~~

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~~Subd. 6c.~~ ~~Microdistilleries.~~ The commissioner shall establish a fee for licensing microdistilleries that adequately covers the cost of issuing the license and other inspection requirements. The fees shall be deposited in an account in the special revenue fund and are appropriated to the commissioner for the purposes of this subdivision.

~~Subd. 6d.~~ ~~Small brewer license.~~ (a) A brewer licensed under subdivision 6, clause (c), (i), or (j), may be issued a license by a municipality for off-sale of malt liquor at its licensed premises that has been produced and packaged by the brewer. The license must be approved by the commissioner. The amount of malt liquor sold at off-sale may not exceed 500 barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor sold off-sale must be removed from the premises before the applicable off-sale closing time at exclusive liquor stores. The malt liquor shall be packed in 64-ounce containers commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall bear a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brewer selling the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100.

(b) A brewer may, but is not required to, refill any growler with malt liquor for off-sale at the request of a customer. A brewer refilling a growler must do so at its licensed premises and the growler must be filled at the tap at the time of sale. A growler refilled under this paragraph must be sealed and labeled in the manner described in paragraph (a).

~~(c) A brewer may only have one license under this subdivision.~~

(d) A municipality may not issue a license under this subdivision to a brewer if the brewer seeking the license, or any person having an economic interest in the brewer seeking the license or exercising control over the brewer seeking the license, is a brewer that brews more than 20,000 barrels of its own brands of malt liquor annually or a winery that produces more than 250,000 gallons of wine annually.

(e) The municipality shall impose a licensing fee on a brewer holding a license under this subdivision, subject to limitations applicable to license fees under section 340A.408, subdivision 3, paragraph (a).

Subd. 7. Interest in other business. (a) Except as provided in this subdivision, a holder of a license as a manufacturer, brewer, importer, or wholesaler may not have any ownership, in whole or in part, in a business holding a retail intoxicating liquor or 3.2 percent malt liquor license. The commissioner may not issue a license under this section to a manufacturer, brewer, importer, or wholesaler if a retailer of intoxicating liquor has a direct or indirect interest in the manufacturer, brewer, importer, or wholesaler. A manufacturer or wholesaler of intoxicating liquor may use or have property rented for retail intoxicating liquor sales only if the manufacturer or wholesaler has owned the property continuously since November 1, 1933. A retailer of intoxicating liquor may not use or have property rented for the manufacture or wholesaling of intoxicating liquor.

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shall be applied to the container or bottle and extend over the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brewer selling the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100. A brewer may, but is not required to, refill any growler with malt liquor for off‑sale at the request of a customer. A brewer refilling a growler must do so at its licensed premises and the growler must be filled at the tap at the time of sale. A growler refilled under this paragraph must be sealed and labeled in the manner described in this paragraph. A brewer's total retail sales at on- or off-sale under this paragraph may not exceed 3,500 barrels per year, provided that off-sales may not total more than 500 barrels. A brewer licensed under subdivision 6, clause (d), may hold or have an interest in other retail on-sale licenses, but may not have an ownership interest in whole or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer, importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by management, direction, or control. Notwithstanding this prohibition, a brewer licensed under subdivision 6, clause (d), may be an affiliate or subsidiary company of a brewer licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is:

~~(i) manufacture licensed under subdivision 6, clause (d);~~

~~(ii) manufacture in another state for consumption exclusively in a restaurant located in the place of manufacture; or~~

(iii) manufacture in another state for consumption primarily in a restaurant located in or immediately adjacent to the place of manufacture if the brewer was licensed under subdivision 6, clause (d), on January 1, 1995.

~~(c)~~ (b) Except as provided in subdivision 7a, no brewer as defined in subdivision 7a or importer may have any interest, in whole or in part, directly or indirectly, in the license, business, assets, or corporate stock of a licensed malt liquor wholesaler.

Subd. 7a. Permitted interests in wholesale business. (a) A brewer may financially assist a wholesaler of malt liquor through participation in a limited partnership in which the brewer is the limited partner and the wholesaler is the general partner. A limited partnership authorized in this paragraph may not exist for more than ten years from the date of its creation, and may not, directly or indirectly, be recreated, renewed, or extended beyond that date.

(b) A brewer may financially assist a malt liquor wholesaler and collateralize the financing by taking a security interest in the inventory and assets, other than the corporate stock, of the wholesaler. A financial agreement authorized by this paragraph may not be in effect for more than ten years from the date of its creation and may not be directly or indirectly extended or renewed.

(c) A brewer who, after creation of a financial agreement authorized by paragraph (b), or after creation of a limited partnership authorized in paragraph (a), acquires legal or equitable title to the wholesaler's business which was the subject of the agreement or limited partnership, or to the business assets, must divest the business or its assets within two years of the date of acquiring them. A malt liquor wholesaler whose business or assets are acquired by a brewer as described in this paragraph may not enter into another such financial agreement, or participate in another such limited partnership, for 20 years from the date of the acquisition of the business or assets.

(d) A brewer may have an interest in the business, assets, or corporate stock of a malt liquor wholesaler as a result of (1) a judgment against the wholesaler arising out of a default by the wholesaler or (2) acquisition of title to the business, assets, or corporate stock as a result of a written request of the wholesaler. A brewer may maintain ownership of or an interest in the business, assets, or corporate stock under this paragraph for not more than two years and only for the purpose of facilitating an orderly transfer of the business to an owner not affiliated with the brewer.

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(e) A brewer may continue to maintain an ownership interest in a malt liquor wholesaler if it owned the interest on January 1, 1991.

(f) A brewer that was legally selling the brewer's own products at wholesale in Minnesota on January 1, 1991, may continue to sell those products at wholesale in the area where it was selling those products on that date.

(g) A brewer that manufactures no more than 20,000 barrels of malt liquor or its metric equivalent in a calendar year may own or have an interest in a malt liquor wholesaler that sells only the brewer's products, provided that a brewer that manufactures between 20,000 and 25,000 barrels in any calendar year shall be permitted to continue to own or have an interest in a malt liquor wholesaler that sells only the brewer's products if: (1) that malt liquor wholesaler distributes no more than 20,000 barrels per calendar year; and (2) the brewer has not manufactured 25,000 barrels in any calendar year. Notwithstanding the foregoing, a brewer that manufactured between 20,000 and 25,000 barrels in 2012 shall be permitted to continue to own or have an interest in a malt liquor wholesaler that sells only the brewer's products until that brewer manufactures 25,000 barrels in a calendar year.

(h) When the commissioner issues a license to a malt liquor wholesaler described in paragraph (a) or (b), the commissioner may issue the license only to the entity which is actually operating the wholesale business and may not issue the license to a brewer that is a limited partner under paragraph (a) or providing financial assistance under paragraph (b) unless the brewer has acquired a wholesaler's business or assets under paragraph (c) or (d).

(i) For purposes of this subdivision and subdivision 7, ~~clause (c)~~ paragraph (b), "brewer" means:

(1) a holder of a license to manufacture malt liquor;

(2) an officer, director, agent, or employee of such a license holder; and

(3) an affiliate of such a license holder, regardless of whether the affiliation is corporate or by management, direction, or control.

Subd. 8. Sales without license. A licensed brewer or brew pub may without an additional license sell malt liquor to employees or retired former employees, in amounts of not more than 768 fluid ounces in a week for off‑premise consumption only. A collector of commemorative bottles, those terms are as defined in section 297G.01, subdivisions 4 and 5, may sell them to another collector without a license. It is also lawful for a collector of beer cans to sell unopened cans of a brand which has not been sold commercially for at least two years to another collector without obtaining a license. The amount sold to any one collector in any one month shall not exceed 768 fluid ounces. A licensed manufacturer of wine containing not more than 25 percent alcohol by volume nor less than 51 percent wine made from Minnesota-grown agricultural products may sell at on-sale or off-sale wine made on the licensed premises without a further license.

Subd. 9. Unlicensed manufacture. (a) Nothing in this chapter requires a license for the natural fermentation of fruit juices or brewing of beer in the home for family use.

(b) Naturally fermented fruit juices or beer made under this subdivision may be removed from the premises where made for use at organized affairs, exhibitions, or competitions, including, but not limited to, homemaker's contests, tastings, or judging.

(c) For purposes of this subdivision, "tastings" means an event where the general public may sample unlicensed naturally fermented fruit juices or beer.

(d) Beverages produced pursuant to this subdivision may be sampled or used in tastings provided that the beverage is made and transported in containers and equipment that shall not allow the migration of toxic substances.

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(e) Public notice meeting the requirements of this paragraph must be given in writing or signage at any tasting. The notice shall include disclosure that the unlicensed naturally fermented fruit juices or beer being offered is homemade and not subject to state inspection, and may be consumed by persons over the age of 21 at their own risk. The notice must include the name and address of the person who processed and bottled the beverage.

(f) Naturally fermented fruit juices or beer removed under this subdivision may not be sold or offered for sale.

Sec. 8. REVISOR'S INSTRUCTION.

(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in column A to the references listed in column B.

Column A	Column B
340A.301, subdivision 6a		340A.301, subdivision 7
340A.301, subdivision 7		340A.301, subdivision 8
340A.301, subdivision 7a		340A.301, subdivision 9
340A.301, subdivision 8		340A.301, subdivision 10
340A.301, subdivision 9		340A.301, subdivision 11

(b) The revisor of statutes shall make all necessary cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with the amendments and renumbering in this act.

Sec. 9. EFFECTIVE DATE.

This article is effective the day following final enactment.

ARTICLE 2

MISCELLANEOUS ALCOHOL PROVISIONS

Section 1. Minnesota Statutes 2014, section 340A.22, is amended by adding a subdivision to read:

Subd. 4. Off-sale bottles. A microdistillery may sell any product manufactured on-site at off-sale, subject to the following requirements:

(1) off-sale hours of sale must conform to hours of sale for retail off-sale outlets in the licensing municipality;

(2) bottles must be sold at no less than 140 percent of the price wholesalers charge for sale of the same product to an off-sale licensee;

(3) no brand may be sold at the microdistillery unless it is also available for distribution by wholesalers;

(4) if requested by an off-sale retailer, the microdistillery must make available to customers any brochure listing their product for sale at a licensed retailer;

(5) no more than one 750 milliliter or two 375 milliliter bottles may be sold per customer per day;

(6) no more than 12,000 liters of product may be sold per year; and

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(7) a quarterly report on total sales, and total bottle sales at the microdistillery, must be made to the commissioner, in a manner approved by the commissioner.

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

Sec. 2. Minnesota Statutes 2014, section 340A.301, subdivision 6d, is amended to read:

Subd. 6d. Small brewer license. (a) A brewer licensed under subdivision 6, clause (c), (i), or (j), may be issued a license by a municipality for off-sale of malt liquor at its licensed premises that has been produced and packaged by the brewer. The license must be approved by the commissioner. The amount of malt liquor sold at off-sale may not exceed 500 barrels annually. Off-sale of malt liquor shall be limited to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor sold off-sale must be removed from the premises before the applicable off-sale closing time at exclusive liquor stores, except that off-sale malt liquor may be sold by a small brewer on Sundays. Sunday sales must be approved by the licensing jurisdiction, and hours may be established by those jurisdictions. The malt liquor shall be packed in 64-ounce containers commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall bear a twist-type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the container or bottle and extended over the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brewer selling the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100.

(f) A brewer licensed under this section must report quarterly to the commissioner, in a manner approved by the commissioner, on the total amount of product sold in the form of bottles or growlers.

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

Sec. 3. Minnesota Statutes 2014, section 340A.301, subdivision 7, is amended to read:

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liquor may use or have property rented for retail intoxicating liquor sales only if the manufacturer or wholesaler has owned the property continuously since November 1, 1933. A retailer of intoxicating liquor may not use or have property rented for the manufacture or wholesaling of intoxicating liquor.

(b) A brewer licensed under subdivision 6, clause (d), may be issued an on-sale intoxicating liquor or 3.2 percent malt liquor license by a municipality for a restaurant operated in the place of manufacture. Notwithstanding section 340A.405, a brewer who holds an on-sale license issued pursuant to this paragraph may, with the approval of the commissioner, be issued a license by a municipality for off-sale of malt liquor produced and packaged on the licensed premises. Off-sale of malt liquor shall be limited to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor sold off-sale must be removed from the premises before the applicable off-sale closing time at exclusive liquor stores, except that off-sale malt liquor may be sold by a brewer licensed under subdivision 6, clause (d), on Sundays. Sunday sales must be approved by the licensing jurisdiction and hours may be established by those jurisdictions. The malt liquor shall be packaged in 64-ounce containers commonly known as "growlers" or in 750 milliliter bottles. The containers or bottles shall bear a twist‑type closure, cork, stopper, or plug. At the time of the sale, a paper or plastic adhesive band, strip, or sleeve shall be applied to the container or bottle and extend over the top of the twist-type closure, cork, stopper, or plug forming a seal that must be broken upon opening of the container or bottle. The adhesive band, strip, or sleeve shall bear the name and address of the brewer. The containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brewer selling the malt liquor, and shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100. A brewer may, but is not required to, refill any growler with malt liquor for off-sale at the request of a customer. A brewer refilling a growler must do so at its licensed premises and the growler must be filled at the tap at the time of sale. A growler refilled under this paragraph must be sealed and labeled in the manner described in this paragraph. A brewer's total retail sales at on- or off-sale under this paragraph may not exceed 3,500 barrels per year, provided that off-sales may not total more than 500 barrels. A brewer licensed under this section must report quarterly to the commissioner, in a manner approved by the commissioner, on the total amount of product, including separate reporting on growlers and bottles, sold at off-sale. A brewer licensed under subdivision 6, clause (d), may hold or have an interest in other retail on-sale licenses, but may not have an ownership interest in whole or in part, or be an officer, director, agent, or employee of, any other manufacturer, brewer, importer, or wholesaler, or be an affiliate thereof whether the affiliation is corporate or by management, direction, or control. Notwithstanding this prohibition, a brewer licensed under subdivision 6, clause (d), may be an affiliate or subsidiary company of a brewer licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is:

(i) manufacture licensed under subdivision 6, clause (d);

(ii) manufacture in another state for consumption exclusively in a restaurant located in the place of manufacture; or

(c) Except as provided in subdivision 7a, no brewer as defined in subdivision 7a or importer may have any interest, in whole or in part, directly or indirectly, in the license, business, assets, or corporate stock of a licensed malt liquor wholesaler.

Sec. 4. Minnesota Statutes 2014, section 340A.404, subdivision 2, is amended to read:

Subd. 2. Special provision; city of Minneapolis. (a) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Guthrie Theater, the Cricket Theatre, the Orpheum Theatre, the State Theatre, and the Historic Pantages Theatre, notwithstanding the limitations of law, or local ordinance, or charter provision relating to zoning or school or church distances. The licenses authorize sales on all days of the week to holders of tickets for performances presented by the theaters and to members of the nonprofit corporations holding the licenses and to their guests.

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(b) The city of Minneapolis may issue an intoxicating liquor license to 510 Groveland Associates, a Minnesota cooperative, for use by a restaurant on the premises owned by 510 Groveland Associates, notwithstanding limitations of law, or local ordinance, or charter provision.

(c) The city of Minneapolis may issue an on-sale intoxicating liquor license to Zuhrah Shrine Temple for use on the premises owned by Zuhrah Shrine Temple at 2540 Park Avenue South in Minneapolis, notwithstanding limitations of law, or local ordinances, or charter provision relating to zoning or school or church distances.

(d) The city of Minneapolis may issue an on-sale intoxicating liquor license to the American Association of University Women, Minneapolis branch, for use on the premises owned by the American Association of University Women, Minneapolis branch, at 2115 Stevens Avenue South in Minneapolis, notwithstanding limitations of law, or local ordinances, or charter provisions relating to zoning or school or church distances.

(e) The city of Minneapolis may issue an on-sale wine license and an on-sale 3.2 percent malt liquor license to a restaurant located at 5000 Penn Avenue South, and an on-sale wine license and an on-sale malt liquor license to a restaurant located at 1931 Nicollet Avenue South, notwithstanding any law or local ordinance or charter provision.

(f) The city of Minneapolis may issue an on-sale wine license and an on-sale malt liquor license to the Brave New Workshop Theatre located at 3001 Hennepin Avenue South, the Theatre de la Jeune Lune, the Illusion Theatre located at 528 Hennepin Avenue South, the Hollywood Theatre located at 2815 Johnson Street Northeast, the Loring Playhouse located at 1633 Hennepin Avenue South, the Jungle Theater located at 2951 Lyndale Avenue South, Brave New Institute located at 2605 Hennepin Avenue South, the Guthrie Lab located at 700 North First Street, and the Southern Theatre located at 1420 Washington Avenue South, notwithstanding any law or local ordinance or charter provision. The license authorizes sales on all days of the week.

(g) The city of Minneapolis may issue an on-sale intoxicating liquor license to University Gateway Corporation, a Minnesota nonprofit corporation, for use by a restaurant or catering operator at the building owned and operated by the University Gateway Corporation on the University of Minnesota campus, notwithstanding limitations of law, or local ordinance or charter provision. The license authorizes sales on all days of the week.

(h) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Walker Art Center's concessionaire or operator, for a restaurant and catering operator on the premises of the Walker Art Center, notwithstanding limitations of law, or local ordinance or charter provisions. The license authorizes sales on all days of the week.

(i) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Guthrie Theater's concessionaire or operator for a restaurant and catering operator on the premises of the Guthrie Theater, notwithstanding limitations of law, local ordinance, or charter provisions. The license authorizes sales on all days of the week.

(j) The city of Minneapolis may issue an on-sale wine license and an on-sale malt liquor license to the Minnesota Book and Literary Arts Building, Inc.'s concessionaire or operator for a restaurant and catering operator on the premises of the Minnesota Book and Literary Arts Building, Inc. (dba Open Book), notwithstanding limitations of law, or local ordinance or charter provision. The license authorizes sales on all days of the week.

(k) The city of Minneapolis may issue an on-sale intoxicating liquor license to a restaurant located at 5411 Penn Avenue South, notwithstanding any law or local ordinance or charter provision.

(l) The city of Minneapolis may issue an on-sale intoxicating liquor license to the Museum of Russian Art's concessionaire or operator for a restaurant and catering operator on the premises of the Museum of Russian Art located at 5500 Stevens Avenue South, notwithstanding any law or local ordinance or charter provision.

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(m) The city of Minneapolis may issue an on-sale intoxicating liquor license to the American Swedish Institute or to its concessionaire or operator for use on the premises owned by the American Swedish Institute at 2600 Park Avenue South, notwithstanding limitations of law, or local ordinances, or charter provision relating to zoning or school or church distances.

(n) Notwithstanding any other law, local ordinance, or charter provision, the city of Minneapolis may issue one or more on-sale intoxicating liquor licenses to the Minneapolis Society of Fine Arts (dba Minneapolis Institute of Arts), or to an entity holding a concessions or catering contract with the Minneapolis Institute of Arts for use on the premises of the Minneapolis Institute of Arts. The licenses authorized by this subdivision may be issued for space that is not compact and contiguous, provided that all such space is included in the description of the licensed premises on the approved license application. The licenses authorize sales on all days of the week.

(o) The city of Minneapolis may issue an on-sale intoxicating liquor license to Norway House or to its concessionaire or operator for use on the premises owned by Norway House at 913 East Franklin Avenue, notwithstanding limitations of law, or local ordinances, or charter provision relating to zoning or school or church distances.

EFFECTIVE DATE. This section is effective upon approval by the Minneapolis City Council and compliance with Minnesota Statutes, section 645.021.

Sec. 5. Minnesota Statutes 2014, section 340A.504, subdivision 3, is amended to read:

Subd. 3. Intoxicating liquor; Sunday sales; on-sale. (a) A restaurant, club, bowling center, or hotel with a seating capacity for at least 30 persons and which holds an on-sale intoxicating liquor license may sell intoxicating liquor for consumption on the premises in conjunction with the sale of food between the hours of ~~10:00~~ 8:00 a.m. on Sundays and 2:00 a.m. on Mondays.

(b) An establishment serving intoxicating liquor on Sundays must obtain a Sunday license. The license must be issued by the governing body of the municipality for a period of one year, and the fee for the license may not exceed $200.

(c) A city may issue a Sunday intoxicating liquor license only if authorized to do so by the voters of the city voting on the question at a general or special election. A county may issue a Sunday intoxicating liquor license in a town only if authorized to do so by the voters of the town as provided in paragraph (d). A county may issue a Sunday intoxicating liquor license in unorganized territory only if authorized to do so by the voters of the election precinct that contains the licensed premises, voting on the question at a general or special election.

(d) An election conducted in a town on the question of the issuance by the county of Sunday sales licenses to establishments located in the town must be held on the day of the annual election of town officers.

(e) Voter approval is not required for licenses issued by the Metropolitan Airports Commission or common carrier licenses issued by the commissioner. Common carriers serving intoxicating liquor on Sunday must obtain a Sunday license from the commissioner at an annual fee of $75, plus $30 for each duplicate.

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

Sec. 6. SPECIAL LICENSE; BECKER.

Notwithstanding any law or ordinance to the contrary, the city of Becker may issue an on-sale intoxicating liquor license for a golf course that is located at 14000 Clubhouse Lane and is owned by the city. The provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license issued under this section. The city of Becker is deemed the licensee under this section, and the provisions of Minnesota Statutes, sections 340A.603 and 340A.604, apply to the license as if the establishment were a municipal liquor store.

EFFECTIVE DATE. This section is effective upon approval by the Becker City Council and compliance with Minnesota Statutes, section 645.021.

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Sec. 7. SPECIAL LICENSE; DULUTH.

Notwithstanding any law or ordinance to the contrary, the city of Duluth may issue an on-sale intoxicating liquor license for the Lester Park Golf Course that is located at 1860 Lester River Road and is owned by the city. The provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license issued under this section. The city of Duluth is deemed the licensee under this section, and the provisions of Minnesota Statutes, sections 340A.603 and 340A.604, apply to the license as if the establishment were a municipal liquor store.

EFFECTIVE DATE. This section is effective upon approval by the Duluth City Council and compliance with Minnesota Statutes, section 645.021.

Sec. 8. SPECIAL LICENSE; INVER GROVE HEIGHTS.

Notwithstanding any law or ordinance to the contrary, the city of Inver Grove Heights may issue an on-sale intoxicating liquor license for the Inver Wood Golf Course that is located at 1850 70th Street and is owned by the city. The provisions of Minnesota Statutes, chapter 340A, not inconsistent with this section, apply to the license issued under this section. The city of Inver Grove Heights is deemed the licensee under this section, and the provisions of Minnesota Statutes, sections 340A.603 and 340A.604, apply to the license as if the establishment were a municipal liquor store.

EFFECTIVE DATE. This section is effective upon approval by the Inver Grove Heights City Council and compliance with Minnesota Statutes, section 645.021.

Sec. 9. STATE FAIR; BREW PUB SALES.

Notwithstanding Minnesota Statutes, section 340A.301, subdivision 6, paragraph (d), a brew pub may sell kegs of malt liquor to licensed wholesalers for distribution exclusively to a single retail licensee for sales at a single location by the State Agricultural Society during the annual fair, under Minnesota Statutes, section 37.21, subdivision 2, paragraph (b).

Sec. 10. POWDERED ALCOHOL POLICY ANALYSIS.

(a) No person shall manufacture, import, distribute, or sell powdered alcohol until June 1, 2016.

(b) The director of the Division of Alcohol and Gambling Enforcement must prepare testimony for the house of representatives Commerce and Regulatory Reform Committee, and any other relevant committee, about whether current laws could be adequately enforced with regard to the manufacture, importation, distribution, and sale of powdered alcohol. The director may make recommendations for legislation addressing any stated concerns. The testimony required under this paragraph is due by December 7, 2015.

(c) The commissioner of health must prepare testimony for the house of representatives Health and Human Services Reform Committee, and any other relevant committee, about the public health impact of powdered alcohol. The commissioner must address whether there is a potential for greater abuse of and addiction to powdered alcohol relative to malt liquor, wine, and distilled spirits. The commissioner may make recommendations for legislation addressing any stated concerns. The testimony required under this paragraph is due by December 7, 2015.

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

Journal of the House - 32nd Day - Monday, March 23, 2015 - Top of Page 1177

Delete the title and insert:

"A bill for an act relating to liquor; recodifying certain provisions relating to licensing and brewers; providing for the sale and other regulations of liquor; authorizing and establishing various licenses; amending Minnesota Statutes 2014, sections 340A.101, by adding a subdivision; 340A.22; 340A.301; 340A.404, subdivision 2; 340A.504, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 340A."

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

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1116, A bill for an act relating to taxation; property; modifying rules for restrictions on transfer for divided lands; amending Minnesota Statutes 2014, sections 272.16, subdivision 2; 272.162.

Reported the same back with the following amendments:

Page 1, delete section 1

Renumber the sections in sequence

Correct the title numbers accordingly

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

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1163, A bill for an act relating to transportation; modifying requirements for issuance of school bus driver's license endorsement; amending Minnesota Statutes 2014, section 171.321, subdivisions 1, 3, by adding subdivisions.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1167, A bill for an act relating to public safety; motor vehicles; permitting secure electronic storage of certain records; amending Minnesota Statutes 2014, sections 168.33, subdivision 2; 171.061, subdivision 3.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Transportation Policy and Finance.

The report was adopted.

Journal of the House - 32nd Day - Monday, March 23, 2015 - Top of Page 1178

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1168, A bill for an act relating to natural resources; establishing requirements for a trail; modifying requirements governing hunting deer; authorizing a beaver season; modifying restrictions on using artificial lights to take fish; authorizing rulemaking relating to spearing and northern pike; authorizing distribution of certain survey information; amending Minnesota Statutes 2014, sections 85.015, subdivision 6; 97A.465, by adding a subdivision; 97B.041; 97B.063; 97B.301, by adding a subdivision; 97C.335; proposing coding for new law in Minnesota Statutes, chapter 97B; repealing Minnesota Rules, part 6264.0400, subparts 27, 28.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1187, A bill for an act relating to real property; extending the protection of the equity-stripping law to owners of agricultural property; amending Minnesota Statutes 2014, sections 325N.10, subdivisions 2, 7; 325N.17.

Reported the same back with the following amendments:

Page 1, before line 6, insert:

"Section 1. Minnesota Statutes 2014, section 325N.01, is amended to read:

325N.01 DEFINITIONS.

The definitions in paragraphs (a) to (h) apply to sections 325N.01 to 325N.09.

(a) "Foreclosure consultant" means any person who, directly or indirectly, makes any solicitation, representation, or offer to any owner to perform for compensation or who, for compensation, performs any service which the person in any manner represents will in any manner do any of the following:

(1) stop or postpone the foreclosure sale;

(2) obtain any forbearance from any beneficiary or mortgagee;

(3) assist the owner to exercise the right of reinstatement provided in section 580.30;

(4) obtain any extension of the period within which the owner may reinstate the owner's obligation;

(5) obtain any waiver of an acceleration clause contained in any promissory note or contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;

(6) assist the owner in foreclosure or loan default to obtain a loan or advance of funds;

(7) avoid or ameliorate the impairment of the owner's credit resulting from the recording of a notice of default or the conduct of a foreclosure sale;

(8) save the owner's residence from foreclosure; or

Journal of the House - 32nd Day - Monday, March 23, 2015 - Top of Page 1179

(9) negotiate or modify the terms or conditions of an existing residential mortgage loan.

(b) A foreclosure consultant does not include any of the following:

(1) a person licensed to practice law in this state when the person renders service in the course of the person's practice as an attorney-at-law;

(2) a person licensed as a debt management services provider under chapter 332A, when the person is acting as a debt management services provider as defined in that chapter;

(3) a person licensed as a real estate broker or salesperson under chapter 82 when the person engages in acts whose performance requires licensure under that chapter unless the person is engaged in offering services designed to, or purportedly designed to, enable the owner to retain possession of the residence in foreclosure;

(4) a person licensed as an accountant under chapter 326A when the person is acting in any capacity for which the person is licensed under those provisions;

(5) a person or the person's authorized agent acting under the express authority or written approval of the Department of Housing and Urban Development or other department or agency of the United States or this state to provide services;

(6) a person who holds or is owed an obligation secured by a lien on any residence in foreclosure when the person performs services in connection with this obligation or lien if the obligation or lien did not arise as the result of or as part of a proposed foreclosure reconveyance;

(7) any person or entity doing business under any law of this state, or of the United States relating to banks, trust companies, savings and loan associations, industrial loan and thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee which is a United States Department of Housing and Urban Development approved mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or employee of these persons or entities while engaged in the business of these persons or entities;

(8) a person licensed as a residential mortgage originator or servicer pursuant to chapter 58, when acting under the authority of that license, except that the provisions of sections 325N.01 to 325N.06, 325N.08, and 325N.09 shall apply to any person operating under a mortgage originator license who negotiates or offers to negotiate the terms or conditions of an existing residential mortgage loan;

(9) a nonprofit agency or organization that has tax-exempt status under section 501(c)(3) of the Internal Revenue Code that offers counseling or advice to an owner of a home in foreclosure or loan default if they do not contract for services with for-profit lenders or foreclosure purchasers, except that they shall comply with the provisions of section 325N.04, clause (1);

(10) a judgment creditor of the owner, to the extent that the judgment creditor's claim accrued prior to the personal service of the foreclosure notice required by section 580.03, but excluding a person who purchased the claim after such personal service; and

(11) a foreclosure purchaser as defined in section 325N.10.

(1) the transfer of title to real property by a foreclosed homeowner during a foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or by creation of a mortgage or other lien or encumbrance during the foreclosure process that allows the acquirer to obtain title to the property by redeeming the property as a junior lienholder; and

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(2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest back to the foreclosed homeowner by the acquirer or a person acting in participation with the acquirer that allows the foreclosed homeowner to possess either the residence in foreclosure or any other real property, which interest includes, but is not limited to, an interest in a contract for deed, purchase agreement, option to purchase, or lease.

(d) "Person" means any individual, partnership, corporation, limited liability company, association, or other group, however organized.

(e) "Service" means and includes, but is not limited to, any of the following:

(1) debt, budget, or financial counseling of any type;

(2) receiving money for the purpose of distributing it to creditors in payment or partial payment of any obligation secured by a lien on a residence in foreclosure;

(3) contacting creditors or servicers to negotiate or offer to negotiate the terms or conditions of an existing residential mortgage loan;

(4) arranging or attempting to arrange for an extension of the period within which the owner of a residence in foreclosure may cure the owner's default and reinstate the owner's obligation pursuant to section 580.30;

(5) arranging or attempting to arrange for any delay or postponement of the time of sale of the residence in foreclosure;

(6) advising the filing of any document or assisting in any manner in the preparation of any document for filing with any bankruptcy court; or

(7) giving any advice, explanation, or instruction to an owner of a residence in foreclosure, which in any manner relates to the cure of a default in or the reinstatement of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of that obligation, or the postponement or avoidance of a sale of a residence in foreclosure, pursuant to a power of sale contained in any mortgage.

(f) "Residence in foreclosure" means residential real property consisting of one to four family dwelling units, one of which the owner occupies as the owner's principal place of residence, or real property that is principally used for farming, as defined in section 500.24, subdivision 2, whether or not parcels are contiguous, so long as the owner occupies one of the parcels as the owner's principal place of residence, where there is a delinquency or default on any loan payment or debt secured by or attached to the residential real property including, but not limited to, contract for deed payments.

(g) "Owner" means the record owner of the residential real property in foreclosure at the time the notice of pendency was recorded, or the summons and complaint served.

(h) "Contract" means any agreement, or any term in any agreement, between a foreclosure consultant and an owner for the rendition of any service as defined in paragraph (e)."

Page 1, delete section 3

Renumber the sections in sequence

Correct the title numbers accordingly

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

The report was adopted.

Journal of the House - 32nd Day - Monday, March 23, 2015 - Top of Page 1181

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1209, A bill for an act relating to health; requiring suicide prevention training; requiring a report; appropriating money; amending Minnesota Statutes 2014, sections 122A.09, subdivision 4; 145.56, subdivisions 2, 4.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Nornes from the Committee on Higher Education Policy and Finance to which was referred:

H. F. No. 1217, A bill for an act relating to education; providing for concurrent enrollment; appropriating money; amending Minnesota Statutes 2014, sections 120B.13, subdivision 4; 124D.09, subdivisions 5, 8.

Reported the same back with the following amendments:

Page 1, line 9, delete "desegregated" and insert "disaggregated"

Page 3, after line 5, insert:

"Sec. 4. Minnesota Statutes 2014, section 124D.091, subdivision 1, is amended to read:

Subdivision 1. Accreditation. To establish a uniform standard by which concurrent enrollment courses and professional development activities may be measured, postsecondary institutions ~~are encouraged to apply for accreditation by~~ must adopt and implement the National Alliance of Concurrent Enrollment ~~Partnership~~ Partnership's program standards and required evidence for accreditation by the 2020-2021 school year and later."

Page 4, after line 7, insert:

"The commissioner shall give priority in awarding grants that are targeted to diverse ethnic, racial, and geographic groups in Minnesota. The commissioner must consider awarding grants to applicant organizations which demonstrate previous successful outreach experience to diverse groups. The commissioner shall determine the application process and the grant amounts."

Page 4, after line 13, insert:

"The commissioner shall determine the application process and the grant amounts."

Renumber the sections in sequence

Correct the title numbers accordingly

With the recommendation that when so amended the bill be re-referred to the Committee on Education Finance.

The report was adopted.

Journal of the House - 32nd Day - Monday, March 23, 2015 - Top of Page 1182

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1232, A bill for an act relating to public safety; amending provisions on data privacy, predatory offender registration, evidence, crime victim protections, and criminal defenses relating to sex trafficking; creating new criminal penalties; amending Minnesota Statutes 2014, sections 13.82, subdivision 17; 243.166, subdivision 1b; 609.1095, subdivision 1; 609.324, subdivision 1; 609.325, subdivision 4, by adding a subdivision; 609.3471; 611A.26, subdivisions 1, 6; 617.242, subdivision 6; 628.26.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 1234, A bill for an act relating to public safety; expanding criminal sexual conduct offenses for persons in current or recent positions of authority over juveniles; amending Minnesota Statutes 2014, sections 609.341, subdivision 10; 609.342, subdivision 1; 609.343, subdivision 1; 609.344, subdivision 1; 609.345, subdivision 1.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1242, A bill for an act relating to data practices; authorizing certain data on disability certificate holders to be released for purposes of enforcing parking restrictions in cities and towns; amending Minnesota Statutes 2014, section 13.69, subdivision 1.

Reported the same back with the following amendments:

Page 1, line 12, delete "and," and insert ", and"

Page 1, line 13, delete "for purposes of" and insert "data necessary for" and delete the comma and insert "may be released"

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

The report was adopted.

Journal of the House - 32nd Day - Monday, March 23, 2015 - Top of Page 1183

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1271, A bill for an act relating to human services; modifying provisions governing group residential housing; establishing background study requirements for providers of group residential housing or supplementary services; authorizing administration of a compliance system for group residential housing; amending Minnesota Statutes 2014, sections 245C.03, by adding a subdivision; 245C.10, by adding a subdivision; 256.017, subdivision 1; 256I.03, subdivisions 3, 7, by adding subdivisions; 256I.04; 256I.05, subdivisions 1c, 1g; 256I.06, subdivisions 2, 6, 7, 8.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1272, A bill for an act relating to human services; providing for correction orders and conditional licenses for home and community-based services programs; providing for settlement agreements; amending Minnesota Statutes 2014, section 245A.06, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 245A.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1297, A bill for an act relating to the Metropolitan Council; modifying the membership of the nominating committee; amending Minnesota Statutes 2014, section 473.123, subdivision 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2014, section 473.123, subdivision 2a, is amended to read:

Subd. 2a. Terms. Following each apportionment of council districts, as provided under subdivision 3a, council members must be appointed from newly drawn districts as provided in subdivision 3a. ~~Each council member, other than the chair, must reside in the council district represented. Each council district must be represented by one member of the council.~~ The terms of members ~~end with the term of the governor~~ are staggered as follows: members representing even-numbered districts have terms ending the first Monday in January of the year ending in the numeral "7"; and members representing odd-numbered districts have terms ending the first Monday in January of the year ending in the numeral "5." Thereafter the term of each member is four years, with terms ending the first Monday in January, except that all terms expire on the effective date of the next apportionment. ~~A member serves at the pleasure of the governor.~~ A member shall continue to serve the member's district until a successor is appointed and qualified; except that, following each apportionment, the member shall continue to serve at large until the governor appoints 16 council members, one from each of the newly drawn council districts as provided under subdivision 3a, to serve terms as provided under this section. The appointment to the council must be made by the first Monday in March of the year in which the term ends.

EFFECTIVE DATE; APPLICATION. This section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Journal of the House - 32nd Day - Monday, March 23, 2015 - Top of Page 1184

Sec. 2. Minnesota Statutes 2014, section 473.123, subdivision 3, is amended to read:

Subd. 3. Membership; appointment; qualifications. (a) Sixteen members must be appointed by the governor from districts defined by this section. Each council member must reside in the council district represented. Each council district must be represented by one member of the council. Each Metropolitan Council member must be an elected city council member or mayor, or county commissioner. A Metropolitan Council member's office becomes vacant if the person appointed to that position ceases to be an elected city council member or mayor, or county commissioner.

(b) In addition to the notice required by section 15.0597, subdivision 4, notice of vacancies and expiration of terms must be published in newspapers of general circulation in the metropolitan area and the appropriate districts. The governing bodies of the statutory and home rule charter cities, counties, and towns having territory in the district for which a member is to be appointed must be notified in writing. The notices must describe the appointments process and invite participation and recommendations on the appointment.

(c) ~~The governor shall create a nominating committee, composed~~ A committee of seven metropolitan citizens ~~appointed by the governor, to~~ shall nominate persons for appointment to the council from districts. Three of the committee members must be local elected officials appointed by Metro Cities, one must be a county commissioner appointed by the Association of Minnesota Counties, and three must be appointed by the governor. Following the submission of applications as provided under section 15.0597, subdivision 5, the nominating committee shall conduct public meetings, after appropriate notice, to accept statements from or on behalf of persons who have applied or been nominated for appointment and to allow consultation with and secure the advice of the public and local elected officials. The committee shall hold the meeting on each appointment in the district or in a reasonably convenient and accessible location in the part of the metropolitan area in which the district is located. The committee may consolidate meetings. Following the meetings, the committee shall submit to the governor a list of nominees for each appointment. The governor is not required to appoint from the list.

(d) Before making an appointment, the governor shall consult with all members of the legislature from the council district for which the member is to be appointed.

(e) Appointments to the council are subject to the advice and consent of the senate as provided in section 15.066.

(f) Members of the council must be appointed to reflect fairly the various demographic, political, and other interests in the metropolitan area and the districts.

(g) Members of the council must be persons knowledgeable about urban and metropolitan affairs.

(h) Any vacancy in the office of a council member shall immediately be filled for the unexpired term. In filling a vacancy, the governor may forgo the requirements of paragraph (c) if the governor has made appointments in full compliance with the requirements of this subdivision within the preceding 12 months.

EFFECTIVE DATE; APPLICATION. This section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 3. Minnesota Statutes 2014, 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~~ elected by the ~~governor~~ 16 members of the council as the 17th voting member thereof by and with the advice and consent of the senate to serve at the pleasure of the ~~governor~~ council to represent the metropolitan area at large. Senate confirmation shall be as provided by section 15.066.

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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.

(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.

EFFECTIVE DATE; APPLICATION. This section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. The term of the chair of the Metropolitan Council serving on the effective date of this section ends on that date, but the chair may continue serving until a new chair is elected by the council under this section.

Sec. 4. METROPOLITAN COUNCIL APPOINTMENTS; IMMEDIATE TRANSITION TO STAGGERED TERMS.

For members serving on the Metropolitan Council on the effective date of this section, other than the chair, members representing even-numbered districts shall serve terms ending the first Monday in January 2019, and members representing odd-numbered districts shall serve terms ending the first Monday in January 2017. Thereafter the term of each member is four years, with terms ending the first Monday in January.

EFFECTIVE DATE; APPLICATION. This section is effective the day following final enactment and 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 the Metropolitan Council; providing for staggered terms of Metropolitan Council members; modifying the membership of the Metropolitan Council to include local elected officials; providing for the council to select its own chair; modifying the membership of the nominating committee; amending Minnesota Statutes 2014, section 473.123, subdivisions 2a, 3, 4."

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

The report was adopted.

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McNamara from the Committee on Environment and Natural Resources Policy and Finance to which was referred:

H. F. No. 1329, A bill for an act relating to natural resources; modifying invasive species provisions; providing for temporary water surface use controls in construction areas; modifying state parks and trails provisions; modifying requirements for fire training; modifying auxiliary forest provisions; modifying forest bough account; modifying recreational vehicle provisions; providing for review of certain grant-in-aid applications; modifying authority to issue water use permits; amending Minnesota Statutes 2014, sections 84.788, subdivision 5, by adding a subdivision; 84.84; 84.92, subdivisions 8, 9, 10; 84.922, subdivision 4; 84.9256, subdivision 1; 84.928, subdivision 1; 84D.01, subdivisions 13, 15, 17, 18; 84D.03, subdivision 3; 84D.06; 84D.10, subdivision 3; 84D.11, subdivision 1; 84D.12, subdivisions 1, 3; 84D.15, subdivision 3; 85.015, subdivision 28, by adding a subdivision; 85.054, subdivision 12; 86B.201, by adding a subdivision; 88.17, subdivision 3; 88.49, subdivisions 3, 4, 5, 6, 7, 8, 9, 11; 88.491, subdivision 2; 88.50; 88.51, subdivisions 1, 3; 88.52, subdivisions 2, 3, 4, 5, 6; 88.523; 88.53, subdivisions 1, 2; 88.6435, subdivision 4; 103G.271, subdivisions 5, 6a; 282.011, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 84; 85; repealing Minnesota Statutes 2014, sections 88.47; 88.48; 88.49, subdivisions 1, 2, 10; 88.491, subdivision 1; 88.51, subdivision 2; 282.013.

Reported the same back with the following amendments:

Page 5, line 21, before "extreme" insert "right shoulder or the"

Page 11, delete section 26

Page 28, delete section 53

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 2, delete "providing"

Page 1, line 3, delete everything before "modifying"

Correct the title numbers accordingly

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

The report was adopted.

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 1341, A bill for an act relating to human services; appropriating money to the Deaf and Hard-of-Hearing Services Division; appropriating money for services for people who are deaf, deafblind, or hard-of-hearing.

Reported the same back with the following amendments:

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Delete everything after the enacting clause and insert:

"Section 1. APPROPRIATION; DEAF AND HARD-OF-HEARING SERVICES DIVISION.

$750,000 in fiscal year 2016 and $750,000 in fiscal year 2017 are appropriated from the general fund to the commissioner of human services for the Deaf and Hard-of-Hearing Services Division under Minnesota Statutes, section 256C.233. This appropriation is added to the base. The funds must be used for the following purposes:

(1) to provide linguistically and culturally appropriate mental health services for persons who are deaf, deafblind, or hard-of-hearing;

(2) to ensure that each regional advisory committee meets at least quarterly;

(3) to increase the number of deafblind Minnesotans receiving services;

(4) in consultation with the Commission of Deaf, DeafBlind and Hard of Hearing Minnesotans, to conduct an analysis of how the regional offices and staff are distributed, operated, and funded in order to determine if the current distribution best serves the needs of the deaf, deafblind, and hard-of-hearing community throughout Minnesota, and to report on the analysis and make recommendations by January 15, 2016, to the chairs and ranking minority members of the health and human services committees in the senate and house of representatives;

(5) during fiscal year 2016, to provide direct services to clients and purchase additional technology for the technology labs; and

(6) to conduct an analysis of whether deafblind services are being provided in the best and most efficient way possible, with input from deafblind Minnesotans receiving services.

Sec. 2. APPROPRIATION; SERVICES FOR PEOPLE WHO ARE DEAF, DEAFBLIND, AND HARD‑OF-HEARING.

$250,000 in fiscal year 2016 and $250,000 in fiscal year 2017 are appropriated from the general fund to the commissioner of human services for deaf and hard-of-hearing grants under Minnesota Statutes, section 256C.261. The funds must be used to increase the number of deafblind Minnesotans receiving services. This appropriation is added to the base."

With the recommendation that when so amended the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1342, A bill for an act relating to property; regulating property transfers; enacting amendments to the Uniform Fraudulent Transfer Act recommended by the National Conference of Commissioners on Uniform State Laws for enactment by the states; amending Minnesota Statutes 2014, sections 513.41; 513.42; 513.43; 513.44; 513.45; 513.46; 513.47; 513.48; 513.51; proposing coding for new law in Minnesota Statutes, chapter 513.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

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Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1354, A bill for an act relating to public safety; requiring active firefighter deaths to be reported to the state fire marshal; providing continued health insurance coverage to families of noncareer firefighters who die in the line of duty; amending Minnesota Statutes 2014, section 299A.465, subdivision 5, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 299F.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Transportation Policy and Finance.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1357, A bill for an act relating to civil law; requiring certificates of dissolution; adding requirements to the certificate of dissolution form; amending Minnesota Statutes 2014, section 518.148.

Reported the same back with the following amendments:

Page 1, line 9, before "The" insert "(a)"

Page 1, after line 14, insert:

"(b) In any case where a certificate of dissolution has not been prepared, either party may make a written request for a certificate of dissolution and the court shall approve a request pursuant to this section. The court may require the requesting party or their attorney to prepare the certificate of dissolution and submit the certificate to the court."

Page 1, strike lines 20 and 21

Page 1, line 22, strike "(4)" and insert "(3)"

Page 1, line 23, strike "(5)" and insert "(4)"

Page 2, line 1, strike "(6)"

Page 2, line 3, before "if" insert "(5)"

Page 2, line 8, before the period, insert ", except that subdivision 1, paragraph (b), applies to judgments and decrees granted before, on, or after August 1, 2015"

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

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 1376, A bill for an act relating to health; modifying the schedules of controlled substances; amending Minnesota Statutes 2014, section 152.02, subdivisions 2, 3, 4, 5, 6.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

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Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1406, A bill for an act relating to natural resources; providing for temporary water surface use controls; modifying life jacket requirements; regulating wake surfing; providing for compliance with federal law; modifying provisions to take, possess, and transport wild animals; providing criminal penalties; requiring rulemaking; requiring reports; amending Minnesota Statutes 2014, sections 84D.03, subdivision 3; 86B.201, by adding a subdivision; 86B.313, subdivisions 1, 4; 86B.315; 97A.045, subdivision 11; 97A.057, subdivision 1; 97A.435, subdivision 4; 97A.465, by adding a subdivision; 97B.063; 97B.081, subdivision 3; 97B.085, subdivision 2; 97B.301, by adding a subdivision; 97B.668; 97C.345, by adding a subdivision; 97C.501, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 97A; 97B; repealing Minnesota Statutes 2014, sections 97A.475, subdivision 25; 97B.905, subdivision 3; Minnesota Rules, part 6264.0400, subparts 27, 28.

Reported the same back with the following amendments:

Page 3, delete section 2

Page 9, delete section 15

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 2, delete everything after "resources;"

Correct the title numbers accordingly

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

The report was adopted.

Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 1408, A bill for an act relating to construction codes; modifying water conditioning installation requirements; amending Minnesota Statutes 2014, sections 326B.50, subdivisions 3, 4, by adding subdivisions; 326B.55; proposing coding for new law in Minnesota Statutes, chapter 326B.

Reported the same back with the following amendments:

Page 1, line 13, delete "two" and insert "1-1/2"

With the recommendation that when so amended the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

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Scott from the Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1460, A bill for an act relating to human services; requiring the commissioner of human services to contract with a vendor to verify the eligibility of medical assistance and MinnesotaCare enrollees; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 256B.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 1463, A bill for an act relating to taxation; individual income; allowing a subtraction for meal expenses of first responders; amending Minnesota Statutes 2014, section 290.01, subdivision 19b.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Taxes.

The report was adopted.

Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 1519, A bill for an act relating to lawful gambling; modifying provisions relating to gambling managers; providing for certain raffles; increasing prize limits; prescribing local regulation; amending Minnesota Statutes 2014, sections 349.12, subdivision 19; 349.167, subdivisions 1, 2; 349.173; 349.181, subdivision 2; 349.211, subdivision 1; 349.213, subdivision 1.

Reported the same back with the following amendments:

Page 1, line 11, strike "six months" and insert "90 days"

Page 2, line 3, after "(b)" insert "Except as otherwise provided under this paragraph," and reinstate the stricken language

Page 2, line 4, delete the new language and after the period, insert "If a lawful gambling organization loses its gambling manager or its gambling manager is not capable of performing the manager's duties, an interim gambling manager from another lawful gambling organization may be appointed by the organization with a vacancy to fill the vacant gambling manager position. An interim gambling manager may not serve at an organization with a vacancy for more than 120 days. A gambling manager serving as an interim gambling manager under this paragraph is not required to be a member of the lawful gambling organization with a vacancy at the time the interim manager begins service to the organization with a vacancy."

Page 4, line 26, reinstate the stricken language

Page 4, line 32, reinstate the stricken colon

Page 4, line 33, reinstate the stricken language and delete the period

Page 5, lines 1 to 12, reinstate the stricken language

Page 5, line 12, after the period, insert "All contributions made by the local unit of government or entity selected by the local unit of government to distribute funds contributed under this clause must acknowledge the original source of the funds in all communications, outreach activities, and distribution of funds."

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

The report was adopted.

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Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1529, A bill for an act relating to education; creating Education Savings Accounts for Students with Special Needs Act; appropriating money.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Education Finance.

The report was adopted.

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 1539, A bill for an act relating to human services; modifying human services data provisions; amending Minnesota Statutes 2014, sections 13.46, subdivisions 1, 2, 3; 13.461, subdivision 28; 13.4967, by adding a subdivision; 13.69, subdivision 1; 119B.02, subdivision 6; 245C.05, subdivisions 2c, 5; 245C.08, subdivision 2; 256.01, subdivisions 18d, 18e; 256B.04, by adding a subdivision; 626.557, subdivision 12b.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2014, section 13.46, subdivision 1, is amended to read:

Subdivision 1. Definitions. As used in this section:

(a) "Individual" means an individual according to section 13.02, subdivision 8, but does not include a vendor of services.

(b) "Program" includes all programs for which authority is vested in a component of the welfare system according to statute or federal law, including, but not limited to, the aid to families with dependent children program formerly codified in sections 256.72 to 256.87, Minnesota family investment program, temporary assistance for needy families program, medical assistance, general assistance, general assistance medical care, child care assistance program, and child support collections.

(1) the Department of Human Services,;

(2) local social services agencies,;

(3) county welfare agencies,;

(4) private licensing agencies,;

(5) the public authority responsible for child support enforcement,;

(6) human services boards,;

(7) community mental health center boards,;

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(8) state hospitals,;

(9) state nursing homes,;

(10) the ombudsman for mental health and developmental disabilities,;

(11) tribal social services or welfare agencies that are operated by federally recognized tribes and that are under contract to any of the above agencies to the extent specified in the contract; and

(12) persons, agencies, institutions, organizations, and other entities under contract to any of the above agencies to the extent specified in the contract.

(d) "Mental health data" means data on individual clients and patients of community mental health centers, established under section 245.62, mental health divisions of counties and other providers under contract to deliver mental health services, or the ombudsman for mental health and developmental disabilities.

(e) "Fugitive felon" means a person who has been convicted of a felony and who has escaped from confinement or violated the terms of probation or parole for that offense.

(f) "Private licensing agency" means an agency licensed by the commissioner of human services under chapter 245A to perform the duties under section 245A.16.

Sec. 2. Minnesota Statutes 2014, section 13.46, subdivision 3, is amended to read:

Subd. 3. Investigative data. (a) Data on persons, including data on vendors of services, licensees, and applicants that is collected, maintained, used, or disseminated by the welfare system in an investigation, authorized by statute, and relating to the enforcement of rules or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and shall not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to statute or valid court order;

(3) to a party named in a civil or criminal proceeding, administrative or judicial, for preparation of defense; or

(4) to provide notices required or permitted by statute.; or

(5) for purposes of investigation or prosecution under a criminal, civil, or administrative proceeding related to the administration of a program in the welfare system to:

(i) an agent of the welfare system; or

(ii) a law enforcement officer, an investigator, or a prosecutor acting on behalf of a county, the state, or the federal government.

The data referred to in this subdivision shall be classified as public data upon submission to an administrative law judge or court in an administrative or judicial proceeding. Inactive welfare investigative data shall be treated as provided in section 13.39, subdivision 3.

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(b) Notwithstanding any other provision in law, the commissioner of human services shall provide all active and inactive investigative data, including the name of the reporter of alleged maltreatment under section 626.556 or 626.557, to the ombudsman for mental health and developmental disabilities upon the request of the ombudsman.

(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation by the commissioner of possible overpayments of public funds to a service provider or recipient may be disclosed if the commissioner determines that it will not compromise the investigation.

Sec. 3. Minnesota Statutes 2014, section 13.461, subdivision 28, is amended to read:

Subd. 28. Child care assistance program. Child care assistance program payment data and data collected, maintained, used, or disseminated by the welfare system pertaining to persons selected as legal nonlicensed child care providers by families receiving child care assistance are classified under section 119B.02, subdivision 6.

Sec. 4. Minnesota Statutes 2014, section 13.4967, is amended by adding a subdivision to read:

Subd. 9. Data on medical assistance applicants and current or former recipients. Certain data on medical assistance applicants and current or former recipients of medical assistance may be shared according to section 256B.04, subdivision 25.

Sec. 5. Minnesota Statutes 2014, section 13.69, subdivision 1, is amended to read:

Subdivision 1. Classifications. (a) The following government data of the Department of Public Safety are private data:

(1) medical data on driving instructors, licensed drivers, and applicants for parking certificates and special license plates issued to physically disabled persons;

(2) other data on holders of a disability certificate under section 169.345, except that data that are not medical data may be released to law enforcement agencies;

(3) Social Security numbers in driver's license and motor vehicle registration records, except that Social Security numbers must be provided to the Department of Revenue for purposes of tax administration, the Department of Labor and Industry for purposes of workers' compensation administration and enforcement, and the Department of Natural Resources for purposes of license application administration; and:

(i) the Department of Revenue for purposes of tax administration;

(ii) the Department of Labor and Industry for purposes of workers' compensation administration and enforcement;

(iii) the Department of Human Services for purposes of recovering Minnesota health care program benefits paid for recipients injured in motor vehicle accidents; and

(iv) the Department of Natural Resources for purposes of license application administration; and

(4) data on persons listed as standby or temporary custodians under section 171.07, subdivision 11, except that the data must be released to:

(i) law enforcement agencies for the purpose of verifying that an individual is a designated caregiver; or

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(ii) law enforcement agencies who state that the license holder is unable to communicate at that time and that the information is necessary for notifying the designated caregiver of the need to care for a child of the license holder.

The department may release the Social Security number only as provided in clause (3) and must not sell or otherwise provide individual Social Security numbers or lists of Social Security numbers for any other purpose.

(b) The following government data of the Department of Public Safety are confidential data: data concerning an individual's driving ability when that data is received from a member of the individual's family.

Sec. 6. Minnesota Statutes 2014, section 119B.02, subdivision 6, is amended to read:

Subd. 6. Data. (a) Data collected, maintained, used, or disseminated by the welfare system pertaining to persons selected as legal nonlicensed child care providers by families receiving child care assistance shall be treated as licensing data as provided in section 13.46, subdivision 4.

(b) Child care assistance program payment data are public when the data relate to a child care assistance program payment made to a licensed child care center or a child care center exempt from licensure that meets one or more of the following criteria:

(1) the center has been disqualified from receiving payment for child care services from the child care assistance program under this chapter due to wrongfully obtaining child care assistance under section 256.98, subdivision 8, paragraph (c);

(2) the center has been refused a child care authorization, has had a child care authorization revoked, has had a payment stopped, or has been denied payment for a bill under section 119B.13, subdivision 6, paragraph (d); or

(3) the center has been investigated for financial misconduct under section 245E.02, resulting in a finding that financial misconduct occurred.

Any payment data that may identify a specific child care assistance recipient or benefits paid on behalf of a specific child care assistance recipient, as determined by the commissioner, are private data on individuals. For purposes of this paragraph, "payment data" means data showing that a child care assistance program payment was made and the amount of child care assistance program payments made to a child care center over a specified time period. Payment data may include the numbers of families and children on whose behalf payments were made over the specified time period.

Sec. 7. Minnesota Statutes 2014, section 245C.05, subdivision 2c, is amended to read:

Subd. 2c. Privacy notice to background study subject. (a) Prior to initiating each background study, the entity initiating the study must provide the commissioner's privacy notice to the background study subject required under section 13.04, subdivision 2. The notice must be available through the commissioner's electronic NETStudy and NETStudy 2.0 systems and shall include the information in paragraphs (b) and (c).

(b) The background study subject shall be informed that any previous background studies that received a set‑aside will be reviewed, and without further contact with the background study subject, the commissioner may notify the agency that initiated the subsequent background study:

(1) that the individual has a disqualification that has been set aside for the program or agency that initiated the study;

(2) the reason for the disqualification; and

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(3) that information about the decision to set aside the disqualification will be available to the license holder upon request without the consent of the background study subject.

(1) the subject's fingerprints collected for purposes of completing the background study under this chapter must not be retained by the Department of Public Safety, Bureau of Criminal Apprehension, or by the commissioner, but will be retained by the Federal Bureau of Investigation;

(2) effective upon implementation of NETStudy 2.0, the subject's photographic image will be retained by the commissioner, and if the subject has provided the subject's Social Security number for purposes of the background study, the photographic image will be available to prospective employers and agencies initiating background studies under this chapter to verify the identity of the subject of the background study;

(3) the commissioner's authorized fingerprint collection vendor shall, for purposes of verifying the identity of the background study subject, be able to view the identifying information entered into NETStudy 2.0 by the entity that initiated the background study, but shall not retain the subject's fingerprints, photograph, or information from NETStudy 2.0. The authorized fingerprint collection vendor shall retain no more than the subject's name and the date and time the subject's fingerprints were recorded and sent, only as necessary for auditing and billing activities;

(4) the commissioner shall provide the subject notice, as required in section 245C.17, subdivision 1, paragraph (a), when an entity initiates a background study on the individual;

(5) the subject may request in writing a report listing the entities that initiated a background study on the individual as provided in section 245C.17, subdivision 1, paragraph (b);

(6) the subject may request in writing that information used to complete the individual's background study in NETStudy 2.0 be destroyed if the requirements of section 245C.051, paragraph (a), are met; and

(7) notwithstanding clause (6), the commissioner shall destroy:

(i) the subject's photograph after a period of two years when the requirements of section 245C.051, paragraph (c), are met; and

(ii) any data collected on a subject under this chapter after a period of two years following the individual's death as provided in section 245C.051, paragraph (d).

(d) For background study subjects who are younger than age 18, the privacy notice provided through NETStudy 2.0 shall include a consent form that includes the information in paragraphs (b) and (c) and requires the signature of a person who has legal responsibility for the minor, including but not limited to a parent or legal guardian, to consent to the minor subject's fingerprints and photograph being captured.

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

Sec. 8. Minnesota Statutes 2014, section 245C.05, subdivision 5, is amended to read:

Subd. 5. Fingerprints and photograph. (a) Before the implementation of NETStudy 2.0, except as provided in paragraph (c), for any background study completed under this chapter, when the commissioner has reasonable cause to believe that further pertinent information may exist on the subject of the background study, the subject shall provide the commissioner with a set of classifiable fingerprints obtained from an authorized agency.

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(b) Before the implementation of NETStudy 2.0, for purposes of requiring fingerprints, the commissioner has reasonable cause when, but not limited to, the:

(1) information from the Bureau of Criminal Apprehension indicates that the subject is a multistate offender;

(2) information from the Bureau of Criminal Apprehension indicates that multistate offender status is undetermined; or

(3) commissioner has received a report from the subject or a third party indicating that the subject has a criminal history in a jurisdiction other than Minnesota.

(c) Notwithstanding paragraph (d), for background studies conducted by the commissioner for child foster care, adoptions, or a transfer of permanent legal and physical custody of a child, the subject of the background study, who is 18 years of age or older, shall provide the commissioner with a set of classifiable fingerprints obtained from an authorized agency.

(d) For background studies initiated on or after the implementation of NETStudy 2.0, every subject of a background study must provide the commissioner with a set of the background study subject's classifiable fingerprints and photograph within 14 days of the initiation of the background study in NETStudy 2.0. The photograph and fingerprints must be recorded at the same time by the commissioner's authorized fingerprint collection vendor and sent to the commissioner through the commissioner's secure data system described in section 245C.32, subdivision 1a, paragraph (b). The fingerprints shall not be retained by the Department of Public Safety, Bureau of Criminal Apprehension, or the commissioner, but will be retained by the Federal Bureau of Investigation. The commissioner's authorized fingerprint collection vendor shall, for purposes of verifying the identity of the background study subject, be able to view the identifying information entered into NETStudy 2.0 by the entity that initiated the background study, but shall not retain the subject's fingerprints, photograph, or information from NETStudy 2.0. The authorized fingerprint collection vendor shall retain no more than the name and date and time the subject's fingerprints were recorded and sent, only as necessary for auditing and billing activities.

(e) For background studies completed by county agencies under this chapter for family child care services, any subject of a background study who has resided in another state within the five years preceding initiation of the background study must provide the county agency with a set of the subject's classifiable fingerprints for purposes of obtaining criminal history data from the National Criminal Records Repository.

(f) For background studies initiated on or after the implementation of NETStudy 2.0:

(1) the subject must be under continuous, direct supervision of the program that initiated the background study when providing direct contact services, until a notice under section 245C.17 is received;

(2) the entity that initiated the background study must be notified if seven days have elapsed and the background study subject has not provided fingerprints and a photograph under paragraph (d); and

(3) if a background study subject fails to provide fingerprints and a photograph under paragraph (d), the commissioner shall issue the entity that initiated the background study and the background study subject a notice that the background study has not been completed and that the subject must be removed from any position allowing direct contact or access to persons served by the entity.

The commissioner may extend the time period for providing fingerprints and a photograph if the background study subject or the entity that initiated the background study shows good cause for failure to comply in a timely manner, as determined by the commissioner.

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

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Sec. 9. Minnesota Statutes 2014, section 245C.08, subdivision 2, is amended to read:

Subd. 2. Background studies conducted by a county agency. (a) For a background study conducted by a county agency for family child care services, the commissioner shall review:

(1) information from the county agency's record of substantiated maltreatment of adults and the maltreatment of minors;

(2) information from juvenile courts as required in subdivision 4 for:

(i) individuals listed in section 245C.03, subdivision 1, paragraph (a), who are ages 13 through 23 living in the household where the licensed services will be provided; and

(ii) any other individual listed under section 245C.03, subdivision 1, when there is reasonable cause; ~~and~~

(3) information from the Bureau of Criminal Apprehension.; and

(4) criminal history data from the National Criminal Records Repository when the individual has resided in another state within the five years preceding initiation of the background study.

(b) If the individual has not resided in the county for ~~less than~~ the five years preceding initiation of the background study, the study shall include the records specified under paragraph (a) for the individual's previous county or counties of residence for the past five years.

(c) Notwithstanding expungement by a court, the county agency may consider information obtained under paragraph (a), clause (3), unless the commissioner received notice of the petition for expungement and the court order for expungement is directed specifically to the commissioner.

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

Sec. 10. Minnesota Statutes 2014, section 256.01, subdivision 18d, is amended to read:

Subd. 18d. Data sharing with Department of Human Services; multiple identification cards. (a) The commissioner of public safety shall, on a monthly basis, provide the commissioner of human services with the first, middle, and last name, the address, date of birth, Social Security number, driver's license or state identification card number, and all photographs or electronically produced images of all applicants and holders whose drivers' licenses and state identification cards have been canceled on or after January 1, 2013, under section 171.14, paragraph (a), clause (2) or (3), by the commissioner of public safety. After the initial data report has been provided by the commissioner of public safety to the commissioner of human services under this paragraph, subsequent reports shall only include cancellations that occurred after the end date of the cancellations represented in the previous data report.

(b) The commissioner of human services shall compare the information provided under paragraph (a) with the commissioner's data regarding recipients of all public assistance programs managed by the Department of Human Services to determine whether any individual with multiple identification cards issued by the Department of Public Safety has illegally or improperly enrolled in any public assistance program managed by the Department of Human Services.

(c) If the commissioner of human services determines that an applicant or recipient has illegally or improperly enrolled in any public assistance program, the commissioner shall provide all due process protections to the individual before terminating the individual from the program according to applicable statute and notifying the county attorney.

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Sec. 11. Minnesota Statutes 2014, section 256.01, subdivision 18e, is amended to read:

Subd. 18e. Data sharing with the Department of Human Services; legal presence date. (a) The commissioner of public safety shall, on a monthly basis, provide the commissioner of human services with the first, middle, and last name, and address, date of birth, Social Security number, and driver's license or state identification card number of all applicants and holders of drivers' licenses and state identification cards whose temporary legal presence date has expired and as a result the driver's license or identification card has been accordingly canceled under section 171.14 by the commissioner of public safety.

(b) The commissioner of human services shall use the information provided under paragraph (a) to determine whether the eligibility of any recipients of public assistance programs managed by the Department of Human Services has changed as a result of the status change in the Department of Public Safety data.

(c) If the commissioner of human services determines that a recipient has illegally or improperly received benefits from any public assistance program, the commissioner shall provide all due process protections to the individual before terminating the individual from the program according to applicable statute and notifying the county attorney.

Sec. 12. Minnesota Statutes 2014, section 256B.04, is amended by adding a subdivision to read:

Subd. 25. Interagency agreement for data sharing from commissioner of revenue. The commissioner may enter into an interagency agreement with the commissioner of revenue to allow the Department of Revenue to transmit electronically to the Department of Human Services certain data on persons who applied for medical assistance or who are current or former medical assistance recipients. If an interagency agreement is concluded, the Department of Revenue is authorized to share the following data with the Department of Human Services: data from the personal or corporate filings of the medical assistance applicant, recipient, or former recipient; and data on the medical assistance applicant's, recipient's, or former recipient's wages, earned and unearned income, assets, and business expenses filed with the Department of Revenue.

Sec. 13. Minnesota Statutes 2014, section 626.557, subdivision 12b, is amended to read:

Subd. 12b. Data management. (a) In performing any of the duties of this section as a lead investigative agency, the county social service agency shall maintain appropriate records. Data collected by the county social service agency under this section are welfare data under section 13.46. Notwithstanding section 13.46, subdivision 1, paragraph (a), data under this paragraph that are inactive investigative data on an individual who is a vendor of services are private data on individuals, as defined in section 13.02. The identity of the reporter may only be disclosed as provided in paragraph (c).

Data maintained by the common entry point are confidential data on individuals or protected nonpublic data as defined in section 13.02. Notwithstanding section 138.163, the common entry point shall maintain data for three calendar years after date of receipt and then destroy the data unless otherwise directed by federal requirements.

(b) The commissioners of health and human services shall prepare an investigation memorandum for each report alleging maltreatment investigated under this section. County social service agencies must maintain private data on individuals but are not required to prepare an investigation memorandum. During an investigation by the commissioner of health or the commissioner of human services, data collected under this section are confidential data on individuals or protected nonpublic data as defined in section 13.02. Upon completion of the investigation, the data are classified as provided in clauses (1) to (3) and paragraph (c).

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(1) The investigation memorandum must contain the following data, which are public:

(i) the name of the facility investigated;

(ii) a statement of the nature of the alleged maltreatment;

(iii) pertinent information obtained from medical or other records reviewed;

(iv) the identity of the investigator;

(v) a summary of the investigation's findings;

(vi) statement of whether the report was found to be substantiated, inconclusive, false, or that no determination will be made;

(vii) a statement of any action taken by the facility;

(viii) a statement of any action taken by the lead investigative agency; and

(ix) when a lead investigative agency's determination has substantiated maltreatment, a statement of whether an individual, individuals, or a facility were responsible for the substantiated maltreatment, if known.

The investigation memorandum must be written in a manner which protects the identity of the reporter and of the vulnerable adult and may not contain the names or, to the extent possible, data on individuals or private data listed in clause (2).

(2) Data on individuals collected and maintained in the investigation memorandum are private data, including:

(i) the name of the vulnerable adult;

(ii) the identity of the individual alleged to be the perpetrator;

(iii) the identity of the individual substantiated as the perpetrator; and

(iv) the identity of all individuals interviewed as part of the investigation.

(3) Other data on individuals maintained as part of an investigation under this section are private data on individuals upon completion of the investigation.

(c) After the assessment or investigation is completed, the name of the reporter must be confidential. The subject of the report may compel disclosure of the name of the reporter only with the consent of the reporter or upon a written finding by a court that the report was false and there is evidence that the report was made in bad faith. This subdivision does not alter disclosure responsibilities or obligations under the Rules of Criminal Procedure, except that where the identity of the reporter is relevant to a criminal prosecution, the district court shall do an in-camera review prior to determining whether to order disclosure of the identity of the reporter.

(d) Notwithstanding section 138.163, data maintained under this section by the commissioners of health and human services must be maintained under the following schedule and then destroyed unless otherwise directed by federal requirements:

(1) data from reports determined to be false, maintained for three years after the finding was made;

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(2) data from reports determined to be inconclusive, maintained for four years after the finding was made;

(3) data from reports determined to be substantiated, maintained for seven years after the finding was made; and

(4) data from reports which were not investigated by a lead investigative agency and for which there is no final disposition, maintained for three years from the date of the report.

(e) The commissioners of health and human services shall annually publish on their Web sites the number and type of reports of alleged maltreatment involving licensed facilities reported under this section, the number of those requiring investigation under this section, and the resolution of those investigations. On a biennial basis, the commissioners of health and human services shall jointly report the following information to the legislature and the governor:

(1) the number and type of reports of alleged maltreatment involving licensed facilities reported under this section, the number of those requiring investigations under this section, the resolution of those investigations, and which of the two lead agencies was responsible;

(2) trends about types of substantiated maltreatment found in the reporting period;

(3) if there are upward trends for types of maltreatment substantiated, recommendations for addressing and responding to them;

(4) efforts undertaken or recommended to improve the protection of vulnerable adults;

(5) whether and where backlogs of cases result in a failure to conform with statutory time frames and recommendations for reducing backlogs if applicable;

(6) recommended changes to statutes affecting the protection of vulnerable adults; and

(7) any other information that is relevant to the report trends and findings.

(f) Each lead investigative agency must have a record retention policy.

(g) The common entry point, lead investigative agencies, county agencies or their designees, prosecuting authorities, ~~and~~ law enforcement agencies, state agencies, and tribes may exchange not public data, as defined in section 13.02, if the agency or authority ~~requesting~~ providing the data determines that the data are pertinent and necessary to the ~~requesting~~ agency or authority for the provision of protective services or in initiating, furthering, or completing an investigation under this section. Data collected under this section must be made available to prosecuting authorities and law enforcement officials, local county agencies, and licensing agencies investigating the alleged maltreatment under this section. The lead investigative agency shall exchange not public data with the vulnerable adult maltreatment review panel established in section 256.021 if the data are pertinent and necessary for a review requested under that section. Notwithstanding section 138.17, upon completion of the review, not public data received by the review panel must be destroyed.

(h) Each lead investigative agency shall keep records of the length of time it takes to complete its investigations.

(i) A lead investigative agency may notify other affected parties and their authorized representative if the lead investigative agency has reason to believe maltreatment has occurred and determines the information will safeguard the well-being of the affected parties or dispel widespread rumor or unrest in the affected facility.

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(j) Under any notification provision of this section, where federal law specifically prohibits the disclosure of patient identifying information, a lead investigative agency may not provide any notice unless the vulnerable adult has consented to disclosure in a manner which conforms to federal requirements."

Amend the title as follows:

Page 1, line 2, after "data" insert "and background study"

Correct the title numbers accordingly

With the recommendation that when so amended the bill be re-referred to the Committee on Civil Law and Data Practices.

The report was adopted.

Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 1549, A bill for an act relating to labor and industry; making housekeeping changes to the Construction Codes and Licensing Division; removing obsolete, redundant, and unnecessary laws and rules; making conforming changes; authorizing rulemaking; amending Minnesota Statutes 2014, sections 326B.092, subdivisions 3, 7; 326B.094, subdivisions 2, 3; 326B.098, by adding a subdivision; 326B.106, subdivisions 4, 7; 326B.109, subdivision 2; 326B.135, subdivision 4; 326B.139; 326B.164, subdivision 8; 326B.184, subdivision 2; 326B.194; 326B.33, subdivisions 6, 15; 326B.37, subdivision 11; 326B.46, subdivisions 1b, 2; 326B.49, subdivision 3; 326B.56, subdivision 1; 326B.701, subdivision 3; 326B.811, subdivision 1; 326B.84; 326B.86, subdivision 1; 326B.921, subdivision 5; 326B.978, by adding a subdivision; 326B.99, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 326B; repealing Minnesota Statutes 2014, sections 16C.0745; 326B.091, subdivision 6; 326B.106, subdivision 10; 326B.169; 326B.181; 471.465; 471.466; 471.467; 471.468.

Reported the same back with the following amendments:

Page 1, after line 18, insert:

"Section 1. Minnesota Statutes 2014, section 326B.082, subdivision 11, is amended to read:

Subd. 11. Licensing orders; grounds; reapplication. (a) The commissioner may deny an application for a permit, license, registration, or certificate if the applicant does not meet or fails to maintain the minimum qualifications for holding the permit, license, registration, or certificate, or has any unresolved violations or unpaid fees or monetary penalties related to the activity for which the permit, license, registration, or certificate has been applied for or was issued.

(b) The commissioner may deny, suspend, limit, place conditions on, or revoke a person's permit, license, registration, or certificate, or censure the person holding or acting as a qualifying person for the permit, license, registration, or certificate, if the commissioner finds that the person:

(1) committed one or more violations of the applicable law;

(2) submitted false or misleading information to the state in connection with activities for which the permit, license, registration, or certificate was issued, or in connection with the application for the permit, license, registration, or certificate;

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(3) allowed the alteration or use of the person's own permit, license, registration, or certificate by another person;

(4) within the previous five years, was convicted of a crime in connection with activities for which the permit, license, registration, or certificate was issued;

(5) violated: (i) a final administrative order issued under subdivision 7, (ii) a final stop order issued under subdivision 10, (iii) injunctive relief issued under subdivision 9, or (iv) a consent order or final order of the commissioner;

(6) failed to cooperate with a commissioner's request to give testimony, to produce documents, things, apparatus, devices, equipment, or materials, or to access property under subdivision 2;

(7) retaliated in any manner against any employee or person who is questioned by, cooperates with, or provides information to the commissioner or an employee or agent authorized by the commissioner who seeks access to property or things under subdivision 2;

(8) engaged in any fraudulent, deceptive, or dishonest act or practice; or

(9) performed work in connection with the permit, license, registration, or certificate or conducted the person's affairs in a manner that demonstrates incompetence, untrustworthiness, or financial irresponsibility.

(c) If the commissioner revokes or denies a person's permit, license, registration, or certificate under paragraph (b), the person is prohibited from reapplying for the same type of permit, license, registration, or certificate for at least two years after the effective date of the revocation or denial. The commissioner may, as a condition of reapplication, require the person to obtain a bond or comply with additional reasonable conditions the commissioner considers necessary to protect the public.

(d) If a permit, license, registration, or certificate expires, or is surrendered, withdrawn, or terminated, or otherwise becomes ineffective, the commissioner may institute a proceeding under this subdivision within two years after the permit, license, registration, or certificate was last effective and enter a revocation or suspension order as of the last date on which the permit, license, registration, or certificate was in effect."

Page 13, delete section 18

Renumber the sections in sequence and correct the internal references

Amend the title as follows:

Page 1, line 4, delete "authorizing rulemaking;"

Correct the title numbers accordingly

With the recommendation that when so amended the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 1555, A bill for an act relating to labor and industry; making housekeeping changes related to the Department of Labor and Industry, Office of Combative Sports, and apprenticeship programs; removing obsolete, redundant, and unnecessary laws and rules; making conforming changes; amending Minnesota Statutes 2014, sections 177.27, subdivision 4; 178.03, subdivision 3; 178.07; 181.171, subdivision 1; 182.6553, subdivisions 1, 2;

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184.21, subdivision 4; 184.24, subdivision 1; 184.41; 341.21, subdivisions 2a, 4, 4f, 7, by adding a subdivision; 341.28, subdivision 3; 341.29; 341.30, subdivisions 1, 2, 4; 341.32, subdivisions 1, 2; 341.321; 341.33; repealing Minnesota Statutes 2014, sections 181.12; 181.9435, subdivision 2; 184.22, subdivision 1; 184.25; 184.26; 184.27; 184.28; 184.29; 184.30, subdivision 1; 184.32; 184.33; 184.34; 184.35; 184.36; 184.38, subdivisions 2, 16, 17; 184.40; 609B.137; Minnesota Rules, parts 5200.0510; 5200.0520; 5200.0530; 5200.0540; 5200.0550; 5200.0560; 5200.0570; 5200.0750; 5200.0760.

Reported the same back with the following amendments:

Page 2, line 22, delete the comma and insert "and"

Page 2, line 25, strike the first comma and insert a semicolon and strike the second comma and insert a semicolon

With the recommendation that when so amended the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

MINORITY REPORT

March 18, 2015

I, the undersigned, being a minority of the Committee on Commerce and Regulatory Reform, recommend that H. F. No. 1555 be amended as follows and placed on the General Register:

Delete everything after the enacting clause and insert:

"ARTICLE 1

WORKING PARENTS ACT

Section 1. CITATION; WORKING PARENTS ACT.

This act shall be known as the "Working Parents Act."

ARTICLE 2

WAGE THEFT PROTECTION

Section 1. Minnesota Statutes 2014, section 13.7905, is amended by adding a subdivision to read:

Subd. 7. Complaints to the Department of Labor and Industry. Certain data regarding employee complaints to the commissioner of labor and industry are classified under section 177.27, subdivision 11.

Sec. 2. Minnesota Statutes 2014, section 177.24, is amended by adding a subdivision to read:

Subd. 3a. Gratuities; credit cards or charges. (a) Gratuities presented to an employee via inclusion on a debit, charge, or credit card shall be credited to that pay period in which they are received by the employee and for which they appear on the employee's tip statement.

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(b) Where a gratuity is given by a customer through a debit, charge, or credit card, the full amount of gratuity must be allowed the employee.

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

Sec. 3. Minnesota Statutes 2014, section 177.253, subdivision 1, is amended to read:

Subdivision 1. Rest breaks. An employer must allow each employee ~~adequate time from work within each four consecutive hours of work to utilize the nearest convenient restroom~~ a rest break of at least ten minutes per four consecutive hours of work. Time spent by employees on rest breaks must be counted as hours worked.

Sec. 4. Minnesota Statutes 2014, section 177.254, subdivision 1, is amended to read:

Subdivision 1. Meal break. ~~An employer must permit each employee who is working for eight or more consecutive hours sufficient time to eat a meal.~~ An employer must permit each employee who works for five or more consecutive hours a meal break of at least 30 minutes, except that if the work period for the day is six consecutive hours or less, the employee and employer may waive the meal break by mutual consent.

Sec. 5. Minnesota Statutes 2014, section 177.27, subdivision 7, is amended to read:

Subd. 7. Employer liability. (a) If an employer is found by the commissioner to have violated a section identified in subdivision 4, or any rule adopted under section 177.28, and the commissioner issues an order to comply, the commissioner shall order the employer to cease and desist from engaging in the violative practice and to take such affirmative steps that in the judgment of the commissioner will effectuate the purposes of the section or rule violated. The commissioner shall order the employer to pay to the aggrieved parties back pay, gratuities, ~~and~~ compensatory damages, and predictability pay under section 181.99, less any amount actually paid to the employee by the employer, and for an additional ~~equal~~ amount ~~as liquidated damages.~~ equal to twice the unpaid wages, overtime pay, gratuities, and predictability pay under section 181.99. In addition, the commissioner may order the employer to pay civil penalties of up to $1,000 per violation. The commissioner must consider the factors described in section 14.045, subdivision 3, paragraph (a), when assessing these civil penalties.

(b) Any employer who is found by the commissioner to have repeatedly or willfully violated a section or sections identified in subdivision 4 shall be subject to a civil penalty of ~~up to $1,000~~ at least $5,000, but no more than $10,000 for each violation for each employee. The commissioner must consider the factors described in section 14.045, including those contained in section 14.045, subdivision 3, paragraph (b), when assessing these civil penalties.

(c) In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered. In addition, the commissioner may order the employer to reimburse the department and the attorney general for all appropriate litigation and hearing costs expended in preparation for and in conducting the contested case proceeding, unless payment of costs would impose extreme financial hardship on the employer. If the employer is able to establish extreme financial hardship, then the commissioner may order the employer to pay a percentage of the total costs that will not cause extreme financial hardship. Costs include but are not limited to the costs of services rendered by the attorney general, private attorneys if engaged by the department, administrative law judges, court reporters, and expert witnesses as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance of a commissioner's order from the date the order is signed by the commissioner until it is paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The commissioner may establish escrow accounts for purposes of distributing damages.

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(d) In addition to paragraph (c), when the commissioner finds that an employer has repeatedly or willfully violated a section or sections identified in subdivision 4, the commissioner shall take the following actions:

(1) the commissioner shall identify any state, county, or municipal agency, or municipality as defined in section 466.01, subdivision 1, that has issued licenses or permits necessary for the employer to conduct its business;

(2) the commissioner shall order any identified state, county, or municipal agency, or municipality as defined in section 466.01, subdivision 1, to immediately revoke or suspend any such licenses or permits until the commissioner determines that the employer has remedied all violations.

(e) The commissioner has the power to take the actions described in paragraph (d), notwithstanding any conflicting statute, rule, ordinance, or other regulation. A state, county, or municipal agency, or municipality as defined in section 466.01, subdivision 1, has the power to comply with an order of the commissioner under paragraph (d), notwithstanding any conflicting statute, rule, ordinance, or other regulation.

Sec. 6. Minnesota Statutes 2014, section 177.27, subdivision 8, is amended to read:

Subd. 8. Court actions; suits brought by private parties. An employee may bring a civil action seeking redress for a violation or violations of sections 177.21 to 177.44 directly to district court. An employer who pays an employee less than the wages and overtime compensation to which the employee is entitled under sections 177.21 to 177.44 is liable to the employee for the full amount of the wages, gratuities, and overtime compensation, less any amount the employer is able to establish was actually paid to the employee and for an additional ~~equal~~ amount ~~as liquidated damages~~ equal to twice the unpaid wages, overtime pay, and gratuities. In addition, in an action under this subdivision the employee may seek damages and other appropriate relief provided by subdivision 7 and otherwise provided by law. An agreement between the employee and the employer to work for less than the applicable wage is not a defense to the action.

Sec. 7. Minnesota Statutes 2014, section 177.27, subdivision 9, is amended to read:

Subd. 9. District court jurisdiction. Any action brought under subdivision 8 may be filed in the district court of the county wherein a violation or violations ~~of sections 177.21 to 177.44~~ are alleged to have been committed, where the respondent resides or has a principal place of business, or any other court of competent jurisdiction. The action may be brought by one or more employees. An employee may choose to have a person or organization bring an action on the employee's behalf. In such a case, the person or organization has the power to settle or adjust the claim.

Sec. 8. Minnesota Statutes 2014, section 177.27, is amended by adding a subdivision to read:

Subd. 11. Employee complaints. (a) Any person or organization may file an administrative complaint or an informal complaint with the department claiming an employer has violated sections 177.21 to 177.44 as to any employee or person.

(b) The commissioner shall allow for anonymous informal and administrative complaints. The commissioner shall take steps to keep the identity of a complaining employee or other individual confidential if that employee or individual so chooses.

(c) If the commissioner investigates a complaint against an employer and the commissioner chooses to review employer records related to the complaint, the commissioner shall review the relevant records of all employees at that work site in order to:

(1) maintain the employee's anonymity; and

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(2) determine whether a pattern of violations has occurred.

(d) Any information regarding a complaint under this subdivision is excluded from any requirements for disclosure under the Minnesota Government Data Practices Act.

Sec. 9. Minnesota Statutes 2014, section 177.27, is amended by adding a subdivision to read:

Subd. 12. Wage bonds. (a) If, upon investigation by the commissioner of any complaint under sections 177.21 to 177.44, the commissioner finds that an employer is not paying wages due its employees, the commissioner may require the employer to give the department a bond, with sufficient surety, in an amount that the commissioner deems reasonable and adequate under the circumstances. Forfeiture of the bond may be conditioned on the employer continuing to conduct its business and paying its employees in accordance with all laws for a definite period not to exceed six months.

(b) If, within ten days after the commissioner demands such a bond, the employer fails to provide it, the commissioner may bring an action against the employer, in any court of competent jurisdiction, to compel the employer to provide the bond or to cease conducting business until the employer has done so. The employer shall have the burden of proving the amount of the bond to be excessive.

Sec. 10. [177.311] GRANTS TO COMMUNITY ORGANIZATIONS.

The commissioner must make grants to community organizations for the purpose of outreach to and education for employees affected by sections 177.21 to 177.44 regarding employee rights under those sections. The community-based organizations must be selected based on their experience, capacity, and relationships in high‑violation industries. The work under any such grant may include the creation and administration of a statewide worker hotline.

Sec. 11. [177.315] EMPLOYER RETALIATION.

No employer shall discharge or take any other adverse action against any person in retaliation for asserting any claim or right under sections 177.21 to 177.44, for assisting any other person in doing so, or for informing any person about the person's rights under sections 177.21 to 177.44. An employer taking any adverse action against a person within one year of a person's engaging in the foregoing activities shall raise a presumption that such action was retaliation, which may be rebutted by clear and convincing evidence that the action was taken for other permissible reasons.

Sec. 12. Minnesota Statutes 2014, section 177.32, is amended to read:

177.32 PENALTIES.

Subdivision 1. ~~Misdemeanors~~ Crimes. (a) An employer who does any of the following is guilty of a misdemeanor:

(1) hinders or delays the commissioner in the performance of duties required under sections 177.21 to 177.435;

(2) refuses to admit the commissioner to the place of business or employment of the employer, as required by section 177.27, subdivision 1;

(3) repeatedly fails to make, keep, and preserve records as required by section 177.30;

(4) falsifies any record;

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(5) refuses to make any record available, or to furnish a sworn statement of the record or any other information as required by section 177.27;

(6) repeatedly fails to post a summary of sections 177.21 to 177.44 or a copy or summary of the applicable rules as required by section 177.31;

(7) pays or agrees to pay wages at a rate less than the rate required under sections 177.21 to 177.44, and the total of any such wages in relation to all affected employees is less than $5,000;

(8) refuses to allow adequate time from work as required by section 177.253; or

(9) otherwise violates any provision of sections 177.21 to 177.44.

(b) An employer is guilty of a gross misdemeanor if the employer fails to pay any wages due to an employee or employees under sections 177.21 to 177.44, and the total of any such wages in relation to all affected employees is $5,000 or more.

(c) An employer who is convicted of a crime under paragraph (a) or (b) and is subsequently convicted of a second crime under paragraph (a) or (b) within two years of the first conviction is guilty of a felony.

Subd. 2. ~~Fine~~ Fines. An employer shall be fined not less than ~~$700~~ $5,000 nor more than ~~$3,000~~ $10,000 if convicted of discharging or otherwise discriminating against any employee because:

(1) the employee has complained to the employer or to the department that wages have not been paid in accordance with sections 177.21 to 177.435;

(2) the employee has instituted or will institute a proceeding under or related to sections 177.21 to 177.435; or

(3) the employee has testified or will testify in any proceeding.

Sec. 13. [177.321] PENALTIES; SPECIAL ACCOUNT.

All civil penalties collected under sections 177.21 to 177.44, must be deposited in the state treasury and credited to a special account. Money in the account is annually appropriated to the commissioner of labor and industry to administer sections 177.311 and 181.9436.

Sec. 14. [181.724] CONTRACTS FOR LABOR OR SERVICES.

Subdivision 1. Contract; insufficient funds. A person or entity shall not enter into a contract or agreement for labor or services where the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.

Subd. 2. Rebuttable presumption. There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision 1 where the contract or agreement with a contractor meets all of the requirements in subdivision 4.

Subd. 3. Exclusions. Subdivision 1 does not apply to a person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement, or to a person who enters into a contract or agreement for labor or services to be performed on the person's home residence, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at least part of the year.

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Subd. 4. Written contract; provisions. To meet the requirements of subdivision 2, a contract or agreement with a contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be required by the commissioner:

(1) the name, address, and telephone number of the person or entity and the contractor through whom the labor or services are to be provided;

(2) a description of the labor or services to be provided and a statement of when those services are to be commenced and completed;

(3) the employer identification number for state tax purposes of the contractor;

(4) the workers' compensation insurance policy number and the name, address, and telephone number of the contractor;

(5) the vehicle identification number of any vehicle that is owned by the contractor and used for transportation in connection with any service provided pursuant to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier;

(6) the address of any real property to be used to house workers in connection with the contract or agreement;

(7) the total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid;

(8) the amount of the commission or other payment made to the contractor for services under the contract or agreement;

(9) the total number of persons who will be utilized under the contract or agreement as independent contractors, along with a list of the current local, state, and federal contractor license identification numbers that the independent contractors are required to have under local, state, or federal laws or regulations; and

(10) the signatures of all parties, and the date the contract or agreement was signed.

Subd. 5. Material changes. (a) To qualify for the rebuttable presumption in subdivision 2, a material change to the terms and conditions of a contract or agreement between a person or entity and a contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision 4 that are affected by the change.

(b) If a provision required to be contained in a contract or agreement under subdivision 4, clause (7) or (9), is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision 4. If an estimate is used in place of actual figures, the parties to the contract or agreement have a continuing duty to ascertain the information required under subdivision 4, clause (7) or (9), and to reduce that information to writing according to the requirements of paragraph (a) once that information becomes known.

Subd. 6. Written contract; commissioner review. A person or entity who enters into a contract or agreement referred to in subdivision 4 or 5 shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the commissioner of labor and industry, any person or entity who enters into the contract or agreement shall provide to the commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to subdivision 4, clauses (1) to (10). Documents obtained under this section are exempt from disclosure under the Minnesota Government Data Practices Act, chapter 13.

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Subd. 7. Penalties. (a) An employee aggrieved by a violation of subdivision 1 may file an action for damages to recover the greater of all actual damages or $250 per employee per violation for an initial violation and $1,000 per employee for each subsequent violation, and, upon prevailing in an action brought under this section, may recover costs and reasonable attorney fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.

(b) An employee aggrieved by a violation of subdivision 1 may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorney fees.

Subd. 8. Know or should know; definition. (a) The term "know" as used in this section includes the knowledge, arising from familiarity with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.

(b) The phrase "should know" as used in this section includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.

(c) A failure by a person or entity to request or obtain any information from the contractor that is required by any applicable statute, or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.

Sec. 15. [181.915] EMPLOYER STATEMENT TO EMPLOYEES.

An employer must provide each newly hired employee, before the employee begins the employee's duties, and each current employee annually, a written statement, in English and in the principal language of the employee, describing the terms and conditions of the employee's employment. The statement must include, but is not limited to, the following:

(1) the full name, mailing address, and phone number of the employer;

(2) the federal and state tax identification numbers of each employer, but not including Social Security numbers of employers who are individuals;

(3) the place or places of employment;

(4) the hours of work per day and number of days per week that the employee will be required to work;

(5) the wages the employer will pay the employee per hour, day, week, or other measure and the frequency and nature of payment of those wages;

(6) the anticipated period of employment;

(7) the circumstances and rate for which an employee will be paid a premium for working in excess of a set number of hours per day, week, or month; or for working on designated nights, weekends, or holidays;

(8) a description of any provision to the employee by the employer, how long such provision will be provided by the employer, and any costs for such provision the employer will require the employee to pay, including, but not limited to:

(i) transportation to and from work;

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(ii) housing;

(iii) health insurance or health care;

(iv) any paid or unpaid leave or holidays;

(v) pension or retirement benefits;

(vi) personal protective equipment required for the work;

(vii) workers' compensation policies, including information about the employer insurance policy or policies, and rules regarding the reporting of accidents or injuries; and

(viii) unemployment compensation;

(9) the nature of the work to be performed by the employee;

(10) information regarding any existing strike, lockout, or concerted work stoppage, slowdown, or interruption of operations at the place of employment; and

(11) information regarding any known local, state, or federal investigations into the employer's health or safety practices over the prior five years, and the outcome of such investigations, if known.

Sec. 16. Minnesota Statutes 2014, section 541.05, subdivision 1, is amended to read:

Subdivision 1. Six-year limitation. Except where the Uniform Commercial Code otherwise prescribes, the following actions shall be commenced within six years:

(1) upon a contract or other obligation, express or implied, as to which no other limitation is expressly prescribed;

(2) upon a liability created by statute, other than those arising upon a penalty or forfeiture or where a shorter period is provided by section 541.07;

(3) for a trespass upon real estate;

(4) for taking, detaining, or injuring personal property, including actions for the specific recovery thereof;

(5) for criminal conversation, or for any other injury to the person or rights of another, not arising on contract, and not hereinafter enumerated;

(6) for relief on the ground of fraud, in which case the cause of action shall not be deemed to have accrued until the discovery by the aggrieved party of the facts constituting the fraud;

(7) to enforce a trust or compel a trustee to account, where the trustee has neglected to discharge the trust, or claims to have fully performed it, or has repudiated the trust relation;

(8) against sureties upon the official bond of any public officer, whether of the state or of any county, town, school district, or a municipality therein; in which case the limitation shall not begin to run until the term of such officer for which the bond was given shall have expired;

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(9) for damages caused by a dam, used for commercial purposes; or

(10) for assault, battery, false imprisonment, or other tort resulting in personal injury, if the conduct that gives rise to the cause of action also constitutes domestic abuse as defined in section 518B.01.;

(11) for the recovery of wages, overtime or damages, fees, or penalties accruing under any federal or state law respecting the payment of wages, overtime or damages, fees, or penalties. The term "wages" means all remuneration for services or employment, including commissions, gratuities, and bonuses and the cash value of all remuneration in any medium other than cash, where the relationship of master and servant exists and the term "damages" means single, double, or treble damages, accorded by any statutory cause of action whatsoever and whether or not the relationship of master and servant exists.

Sec. 17. Minnesota Statutes 2014, section 541.07, is amended to read:

541.07 TWO- OR THREE-YEAR LIMITATIONS.

Except where the Uniform Commercial Code, this section, section 541.05, 541.073, 541.076, or 604.205 otherwise prescribes, the following actions shall be commenced within two years:

(1) for libel, slander, assault, battery, false imprisonment, or other tort resulting in personal injury, and all actions against veterinarians as defined in chapter 156, for malpractice, error, mistake, or failure to cure, whether based on contract or tort; provided a counterclaim may be pleaded as a defense to any action for services brought by a veterinarian after the limitations period if it was the property of the party pleading it at the time it became barred and was not barred at the time the claim sued on originated, but no judgment thereof except for costs can be rendered in favor of the party so pleading it;

(2) upon a statute for a penalty or forfeiture, except as provided in sections 541.074 and 541.075;

(3) for damages caused by a dam, other than a dam used for commercial purposes; but as against one holding under the preemption or homestead laws, the limitations shall not begin to run until a patent has been issued for the land so damaged;

(4) against a master for breach of an indenture of apprenticeship; the limitation runs from the expiration of the term of service;

(5) for the recovery of wages or overtime or damages, fees, or penalties accruing under any federal or state law respecting the payment of wages or overtime or damages, fees, or penalties except, that if the employer fails to submit payroll records by a specified date upon request of the Department of Labor and Industry or if the nonpayment is willful and not the result of mistake or inadvertence, the limitation is three years. (The term "wages" means all remuneration for services or employment, including commissions and bonuses and the cash value of all remuneration in any medium other than cash, where the relationship of master and servant exists and the term "damages" means single, double, or treble damages, accorded by any statutory cause of action whatsoever and whether or not the relationship of master and servant exists);

~~(6)~~ (5) for damages caused by the establishment of a street or highway grade or a change in the originally established grade; and

~~(7)~~ (6) against the person who applies the pesticide for injury or damage to property resulting from the application, but not the manufacture or sale, of a pesticide.

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Sec. 18. REVISOR'S INSTRUCTION.

The revisor of statutes shall make any necessary cross-reference changes arising from renumbering in this act, including any grammatical changes to preserve sentence structure.

Sec. 19. REPEALER.

Minnesota Rules, part 5200.0080, subpart 7, is repealed.

ARTICLE 3

PAID FAMILY LEAVE

Section 1. Minnesota Statutes 2014, section 181.941, is amended to read:

181.941 PREGNANCY ~~AND~~, PARENTING, AND CAREGIVER LEAVE.

Subdivision 1. Twelve-week leave; pregnancy, ~~birth, or adoption~~ parenting, and caregiver leave. (a) An employer must grant an unpaid leave of absence to an employee who is:

(1) a biological or, adoptive, or foster parent in conjunction with the birth or, adoption, or placement through foster care of a child; or

(2) a female employee for prenatal care, or incapacity due to pregnancy, childbirth, or related health conditions; or

(3) caring for a family member who has a serious health condition.

(b) The length of the leave shall be determined by the employee, but must not exceed 12 weeks, unless agreed to by the employer.

Subd. 2. Start of leave. The leave shall begin at a time requested by the employee. The employer may adopt reasonable policies governing the timing of requests for unpaid leave and may require an employee who plans to take a leave under this section to give the employer reasonable notice of the date the leave shall commence and the estimated duration of the leave. For leave taken under subdivision 1, paragraph (a), clause (1), the leave must begin within 12 months of the birth or adoption; except that, in the case where the child must remain in the hospital longer than the mother, the leave must begin within 12 months after the child leaves the hospital.

Subd. 3. No employer retribution. An employer shall not retaliate against an employee for requesting or obtaining a leave of absence as provided by this section.

Subd. 4. Continued insurance. The employer must continue to make coverage available to the employee while on leave of absence under any group insurance policy, group subscriber contract, or health care plan for the employee and any dependents. Nothing in this section requires the employer to pay the costs of the insurance or health care while the employee is on leave of absence.

Subd. 5. Confidentiality and nondisclosure. If, in conjunction with a leave under this section, an employer possesses health or medical information regarding an employee or an employee's family member, the employer must treat such information as confidential and not disclose the information except with the permission of the employee.

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Sec. 2. [181.9411] PREGNANCY, PARENTING, AND CAREGIVER LEAVE INSURANCE.

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

(b) "Health care provider" has the same meaning as set forth in the FMLA.

(d) "Median county family income" means the median family income under the American Community Survey 5‑Year Estimates for the most recent year available in the county where the employee resides.

Subd. 2. Benefits; application and eligibility. (a) Beginning one year after the date on which the commissioner starts collecting premiums pursuant to subdivision 6, benefits under this section must be paid to an employee who:

(1) is eligible for leave under section 181.941; and

(2) files an application for benefits in the manner required by the commissioner.

(b) In addition to the requirements of paragraph (a), the commissioner may require:

(1) an employee who files a claim for benefits to attest that the employee has requested leave from his or her employer under section 181.941; or

(2) submit a certification from the health care provider providing care to the employee's family member supporting the claim that the employee's family member has a serious health condition, provided the employee is filing an application for benefits related to leave under section 181.941, subdivision 1, paragraph (a), clause (3), or the FMLA.

Subd. 3. Duration of benefits; payment intervals. (a) The maximum amount of time an employee may receive benefits under this section is six weeks.

(b) Failure to submit an application for benefits in the manner and form required by the commissioner does not automatically invalidate an employee's eligibility for benefits, but the commissioner is not required to pay benefits for a period of more than two weeks before the date on which an employee files an application for benefits conforming with the commissioner's requirements.

(c) The commissioner must make the first payment of benefits to an eligible employee within two weeks after the employee files an application of benefits conforming to the commissioner's requirements. The commissioner must make later payments biweekly.

Subd. 4. Amount of benefits; maximum weekly benefit. (a) The commissioner must calculate an employee's weekly benefit amount as follows:

(1) for an employee whose yearly earnings are not more than 27 percent of the median county family income, the commissioner must pay weekly benefits in an amount equal to 95 percent of the employee's weekly wage;

(2) for an employee whose yearly earnings are more than 27 percent, but not more than 45 percent, of the median county family income, the commissioner must pay weekly benefits in an amount equal to 90 percent of the employee's weekly wage;

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(3) for an employee whose yearly earnings are more than 45 percent, but not more than 65 percent, of the median county family income, the commissioner must pay weekly benefits in an amount equal to 85 percent of the employee's weekly wage;

(4) for an employee whose yearly earnings are equal to or more than 65 percent of the median county family income, the commissioner must pay weekly benefits in an amount equal to 66 percent of the eligible individual's weekly wage.

(b) Notwithstanding paragraph (a), an employee's weekly benefit must not exceed $1,000 per week.

(c) Beginning two years after the date on which the commissioner starts collecting premiums pursuant to subdivision 6, the commissioner must annually adjust the maximum weekly benefit amount to reflect changes in the United States Bureau of Labor Statistics consumer price index for the Minneapolis-St. Paul consolidated metropolitan statistical area for all urban consumers, all goods, or its successor index.

(d) Benefits are not payable for less than one day of leave taken in one work week.

Subd. 5. Pregnancy, parenting, and caregiver leave insurance account. A pregnancy, parenting, and caregiver leave insurance account is created in the special revenue fund. Money in the account is annually appropriated to the Department of Labor and Industry and does not lapse. The commissioner shall manage and administer the account in accordance with this section.

Subd. 6. Employee and employer premiums. (a) Starting on a date determined by the commissioner but no later than one year after the effective date of this section, every employee employed by an employer must pay a premium equal to 0.1 percent of the employee's yearly wages to fund the program, but the maximum annual premium charged to an employee must not exceed $78 per year. The premium is assessed on the first $78,000 of wages earned in a calendar year.

(b) Starting on a date determined by the commissioner but no later than one year after the effective date of this section, every employer must pay a premium equal to the total of premiums paid by the employer's employees.

(c) Each employer must collect the premium amount from each employee as a payroll deduction from the employee's wages each payroll period and shall remit the premium amount, along with the matching employer premium, to the commissioner, who must send the premiums to the Department of Management and Budget for deposit in the pregnancy, parenting, and caregiver leave insurance account in the special revenue fund.

(d) Starting two years after the date on which the commissioner begins collecting premiums pursuant to this subdivision, the commissioner must annually adjust the maximum annual premium amount and the amount of annual income on which the premium is assessed to reflect changes in the United States Bureau of Labor Statistics consumer price index for the Minneapolis-St. Paul consolidated metropolitan statistical area for all urban consumers, all goods, or its successor index.

Subd. 7. Disqualification from benefits; erroneous payments. (a) An employee must not receive benefits under this section for one year if the individual willfully makes a false statement or misrepresentation regarding a material fact, or willfully fails to report a material fact, to obtain benefits under this section.

(b) If benefits under this section are paid erroneously or as a result of a willful misrepresentation or omission, or if a claim for benefits under this section is rejected after benefits are paid, the commissioner may seek repayment of benefits from the recipient.

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Subd. 8. Federal taxation of benefits. (a) If the Internal Revenue Service determines that benefits under this section are subject to federal income tax, the commissioner must advise an individual filing a claim for benefits, at the time of filing, that:

(1) the Internal Revenue Service has determined that benefits are subject to federal income tax;

(2) requirements exist pertaining to estimated tax payments;

(3) the employee may elect to have federal income tax deducted and withheld from the individual's payment of benefits in the amount specified in the federal Internal Revenue Code; and

(4) the employee may change a previously elected withholding status.

(b) Amounts deducted and withheld from benefits under this subdivision must remain in the pregnancy, parenting, and caregiver leave insurance account in the special revenue fund until transferred to the federal taxing authority as payment of income tax.

The commissioner must follow all procedures specified by the Internal Revenue Service relating to deducting and withholding income tax.

Subd. 9. Confidentiality and nondisclosure. If, in conjunction with a leave under this section, an employer possesses health or medical information regarding an employee or an employee's family member, the employer must treat such information as confidential and not disclose the information except with the permission of the employee.

Sec. 3. Minnesota Statutes 2014, section 181.943, is amended to read:

181.943 RELATIONSHIP TO OTHER LEAVE.

(a) The length of leave provided under section 181.941 may be reduced by any period of:

(1) paid parental, disability, personal, medical, or sick leave, or accrued vacation provided by the employer so that the total leave does not exceed 12 weeks, unless agreed to by the employer; or

(2) leave taken for the same purpose by the employee under ~~United States Code, title 29, chapter 28~~ the FMLA.

(b) Nothing in sections 181.940 to 181.943 prevents any employer from providing leave benefits in addition to those provided in sections 181.940 to 181.944 or otherwise affects an employee's rights with respect to any other employment benefit.

(d) Nothing in sections 181.940 to 181.944 shall be construed to limit the right of parties to a collective bargaining agreement to bargain and agree with respect to leave policies or to diminish the obligation of an employer to comply with any contract, collective bargaining agreement, or any employment benefit program or plan that meets or exceeds, and does not otherwise conflict with, the minimum standards and requirements provided in sections 181.940 to 181.944.

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Sec. 4. Minnesota Statutes 2014, section 181.9436, is amended to read:

181.9436 ~~POSTING OF LAW~~ NOTICE TO AFFECTED EMPLOYEES.

Subdivision 1. Poster. The Division of Labor Standards and Apprenticeship shall develop, with the assistance of interested business and community organizations, an educational poster stating employees' rights under sections 181.940 to ~~181.9436~~ 181.9441. The department shall make the poster available, upon request, to employers for posting on the employer's premises.

Subd. 2. Grants to community organizations. The commissioner may make grants to community organizations for the purpose of outreach to and education for employees affected by sections 181.939 and 181.9441 regarding those employees' rights under those sections. The community-based organizations must be selected based on their experience, capacity, and relationships in high-violation industries. The work under such a grant may include the creation and administration of a statewide worker hotline.

Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:

Subd. 19b. Subtractions from federal taxable income. For individuals, estates, and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and transportation of each qualifying child in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, "textbooks" includes books and other instructional materials and equipment purchased or leased for use in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. Equipment expenses qualifying for deduction includes expenses as defined and limited in section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. No deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle to provide such transportation for a qualifying child. For purposes of the subtraction provided by this clause, "qualifying child" has the meaning given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491;

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(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) of the Internal Revenue Code in determining federal taxable income by an individual who does not itemize deductions for federal income tax purposes for the taxable year, an amount equal to 50 percent of the excess of charitable contributions over $500 allowable as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, under the provisions of Public Law 109-1 and Public Law 111-126;

(7) for individuals who are allowed a federal foreign tax credit for taxes that do not qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover of subnational foreign taxes for the taxable year, but not to exceed the total subnational foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, "federal foreign tax credit" means the credit allowed under section 27 of the Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed under section 904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they exceed the federal foreign tax credit;

(8) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, clause (12), in the case of a shareholder of an S corporation, minus the positive value of any net operating loss under section 172 of the Internal Revenue Code generated for the tax year of the addition. The resulting delayed depreciation cannot be less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation paid to members of the Minnesota National Guard or other reserve components of the United States military for active service, including compensation for services performed under the Active Guard Reserve (AGR) program. For purposes of this clause, "active service" means (i) state active service as defined in section 190.05, subdivision 5a, clause (1); or (ii) federally funded state active service as defined in section 190.05, subdivision 5b, and "active service" includes service performed in accordance with section 190.08, subdivision 3;

(11) to the extent included in federal taxable income, the amount of compensation paid to Minnesota residents who are members of the armed forces of the United States or United Nations for active duty performed under United States Code, title 10; or the authority of the United Nations;

(12) an amount, not to exceed $10,000, equal to qualified expenses related to a qualified donor's donation, while living, of one or more of the qualified donor's organs to another person for human organ transplantation. For purposes of this clause, "organ" means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; "human organ transplantation" means the medical procedure by which transfer of a human organ is made from the body of one person to the body of another person; "qualified expenses" means unreimbursed expenses for both the individual and the qualified donor for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses may be subtracted under this clause only once; and "qualified donor" means the individual or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An individual may claim the subtraction in this clause for each instance of organ donation for transplantation during the taxable year in which the qualified expenses occur;

(13) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the case of a shareholder of a corporation that is an S corporation, minus the positive value of any net operating loss under section 172 of the Internal Revenue Code generated for the tax year of the addition. If the net operating loss exceeds the addition for the tax year, a subtraction is not allowed under this clause;

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(14) to the extent included in the federal taxable income of a nonresident of Minnesota, compensation paid to a service member as defined in United States Code, title 10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);

(15) to the extent included in federal taxable income, the amount of national service educational awards received from the National Service Trust under United States Code, title 42, sections 12601 to 12604, for service in an approved Americorps National Service program;

(16) to the extent included in federal taxable income, discharge of indebtedness income resulting from reacquisition of business indebtedness included in federal taxable income under section 108(i) of the Internal Revenue Code. This subtraction applies only to the extent that the income was included in net income in a prior year as a result of the addition under subdivision 19a, clause (13);

(17) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c);

(18) the amount of expenses not allowed for federal income tax purposes due to claiming the railroad track maintenance credit under section 45G(a) of the Internal Revenue Code;

(19) the amount of the limitation on itemized deductions under section 68(b) of the Internal Revenue Code;

(20) the amount of the phaseout of personal exemptions under section 151(d) of the Internal Revenue Code; ~~and~~

(21) to the extent included in federal taxable income, the amount of qualified transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal Revenue Code. The subtraction is limited to the lesser of the amount of qualified transportation fringe benefits received in excess of the limitations under section 132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) of the Internal Revenue Code.; and

(22) the amount received in benefits under section 181.9411.

ARTICLE 4

EARNED SICK AND SAFE TIME

Section 1. Minnesota Statutes 2014, section 177.27, subdivision 2, is amended to read:

Subd. 2. Submission of records; penalty. The commissioner may require the employer of employees working in the state to submit to the commissioner photocopies, certified copies, or, if necessary, the originals of employment records which the commissioner deems necessary or appropriate. The records which may be required include full and correct statements in writing, including sworn statements by the employer, containing information relating to wages, hours, names, addresses, and any other information pertaining to the employer's employees and the conditions of their employment as the commissioner deems necessary or appropriate.

The commissioner may require the records to be submitted by certified mail delivery or, if necessary, by personal delivery by the employer or a representative of the employer, as authorized by the employer in writing.

The commissioner may ~~fine~~ order the employer to pay a civil penalty of up to ~~$1,000~~ $2,000 for each failure to submit or deliver records as required by this section. This penalty is in addition to any penalties provided under section 177.32, subdivision 1. In determining the amount of a civil penalty under this subdivision, the appropriateness of such penalty to the size of the employer's business and the gravity of the violation shall be considered.

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Sec. 2. Minnesota Statutes 2014, section 177.27, subdivision 4, is amended to read:

Subd. 4. Compliance orders. The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, subdivision 2a, 181.722, 181.79, and 181.939 to ~~181.943~~ 181.9441, or with any rule promulgated under section 177.28. The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner.

Sec. 3. Minnesota Statutes 2014, section 177.28, subdivision 1, is amended to read:

Subdivision 1. General authority. (a) The commissioner may adopt rules, including definitions of terms, to carry out the purposes of sections 177.21 to 177.44, to prevent the circumvention or evasion of those sections, and to safeguard the minimum wage and overtime rates established by sections 177.24 and 177.25.

(b) The commissioner may adopt rules to carry out the purposes of sections 181.939 to 181.9441.

Sec. 4. [177.36] REPORT TO LEGISLATURE.

(a) The commissioner must submit an annual report to the legislature, including to the chair and ranking minority member of any relevant legislative committee. The report must include, but is not limited to:

(1) a list of all violations of statutory sections listed in section 177.27, subdivision 4, including the employer involved, and the nature of any violations; and

(2) an analysis of noncompliance with the statutory sections listed in section 177.27, subdivision 4, including any patterns by employer, industry, or county.

(b) A report under this section must not include an employee's name or other identifying information, any health or medical information regarding an employee or an employee's family member, or any information pertaining to domestic abuse, sexual assault, or stalking of an employee or an employee's family member.

Sec. 5. Minnesota Statutes 2014, section 181.032, is amended to read:

181.032 REQUIRED STATEMENT OF EARNINGS BY EMPLOYER.

(a) At the end of each pay period, the employer shall provide each employee an earnings statement, either in writing or by electronic means, covering that pay period. An employer who chooses to provide an earnings statement by electronic means must provide employee access to an employer-owned computer during an employee's regular working hours to review and print earnings statements.

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(b) The earnings statement may be in any form determined by the employer but must include:

(1) the name of the employee;

(2) the hourly rate of pay (if applicable);

(3) the total number of hours worked by the employee unless exempt from chapter 177;

(4) the total amount of gross pay earned by the employee during that period;

(5) the total amount of overtime pay earned by the employee during that period;

(6) the total amount of gratuities earned by the employee during that period;

(7) the total amount of any additional compensation paid to the employee during that period, including any predictability pay under section 181.99;

(8) the total amount of expense reimbursements paid to the employee during that period;

~~(5)~~ (9) a list of deductions made from the employee's pay;

~~(6)~~ (10) the net amount of pay after all deductions are made;

~~(7)~~ (11) the date on which the pay period ends; ~~and~~

~~(8)~~ (12) the legal name of the employer and the operating name of the employer if different from the legal name;

(13) the total amount of employer-provided leave used by the employee during that pay period; and

(14) the total amount of employer-provided leave available for the employee to use.

(c) An employer must provide earnings statements to an employee in writing, rather than by electronic means, if the employer has received at least 24 hours notice from an employee that the employee would like to receive earnings statements in written form. Once an employer has received notice from an employee that the employee would like to receive earnings statements in written form, the employer must comply with that request on an ongoing basis.

Sec. 6. Minnesota Statutes 2014, section 181.940, is amended to read:

181.940 DEFINITIONS.

Subdivision 1. Scope. For the purposes of sections 181.940 to ~~181.944~~ 181.9441, the terms defined in this section have the meanings given them.

Subd. 2. Employee. "Employee" means ~~a person who performs services for hire for an~~ an individual employed by an employer ~~from whom a leave is requested under sections 181.940 to 181.944 for:~~ who has performed at least 680 hours of work for that employer or who has worked for that employer for at least 17 weeks. Employee does not mean an independent contractor.

~~(1) at least 12 months preceding the request; and~~

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(2) for an average number of hours per week equal to one-half the full-time equivalent position in the employee's job classification as defined by the employer's personnel policies or practices or pursuant to the provisions of a collective bargaining agreement, during the 12-month period immediately preceding the leave.

~~Employee includes all individuals employed at any site owned or operated by the employer but does not include an independent contractor.~~

Subd. 3. Employer. "Employer" means a person or entity that employs 21 one or more employees ~~at at least one site, except that, for purposes of the school leave allowed under section 181.9412, employer means a person or entity that employs one or more employees in Minnesota~~. The term includes an individual, corporation, partnership, association, nonprofit organization, group of persons, state, county, town, city, school district, or other governmental subdivision.

Subd. 4. Child. "Child" means an individual under 18 years of age or an individual under age 20 who is still attending secondary school.

Subd. 5. Family member. "Family member" means an employee's spouse, child, adult child, stepchild, foster child, ward, child for whom the employee is legal guardian, regular member of the employee's household, parent, stepparent, sibling, grandchild, stepgrandchild, adopted grandchild, foster grandchild, mother-in-law, father-in-law, or grandparent.

Subd. 6. FMLA. "FMLA" means the Family and Medical Leave Act of 1993, United States Code, title 29, section 2601, et seq., as amended through the effective date of this section.

Subd. 7. Commissioner. "Commissioner" means the commissioner of labor and industry or authorized designee or representative.

Sec. 7. Minnesota Statutes 2014, section 181.942, is amended to read:

181.942 REINSTATEMENT AFTER LEAVE.

Subdivision 1. Comparable position. (a) An employee returning from a leave of absence under section 181.941 is entitled to return to employment in the employee's former position or in a position of comparable duties, number of hours, and pay. An employee returning from a leave of absence longer than one month must notify a supervisor at least two weeks prior to return from leave. An employee returning from a leave under section 181.9412 or ~~181.9413~~ 181.9441 is entitled to return to employment in the employee's former position.

(b) If, during a leave under sections 181.940 to ~~181.944~~ 181.9441, the employer experiences a layoff and the employee would have lost a position had the employee not been on leave, pursuant to the good faith operation of a bona fide layoff and recall system, including a system under a collective bargaining agreement, the employee is not entitled to reinstatement in the former or comparable position. In such circumstances, the employee retains all rights under the layoff and recall system, including a system under a collective bargaining agreement, as if the employee had not taken the leave.

Subd. 2. Pay; benefits; on return. An employee returning from a leave of absence under sections 181.940 to ~~181.944~~ 181.9441 is entitled to return to employment at the same rate of pay the employee had been receiving when the leave commenced, plus any automatic adjustments in the employee's pay scale that occurred during leave period. The employee returning from a leave is entitled to retain all accrued preleave benefits of employment and seniority, as if there had been no interruption in service; provided that nothing in sections 181.940 to ~~181.944~~ 181.9441 prevents the accrual of benefits or seniority during the leave pursuant to a collective bargaining or other agreement between the employer and employees.

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Subd. 3. Part-time return. An employee, by agreement with the employer, may return to work part time during the leave period without forfeiting the right to return to employment at the end of the leave period, as provided in sections 181.940 to ~~181.944~~ 181.9441.

Sec. 8. Minnesota Statutes 2014, section 181.944, is amended to read:

181.944 INDIVIDUAL REMEDIES.

In addition to any other remedies provided by law, a person injured by a violation of sections 181.172, paragraph (a) or (d), and 181.939 to ~~181.943~~ 181.9441 may bring a civil action to recover any and all damages recoverable at law, together with costs and disbursements, including reasonable attorney's fees, and may receive injunctive and other equitable relief as determined by a court.

Sec. 9. [181.9441] EARNED SICK AND SAFE TIME.

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

(b) "Domestic abuse" has the same meaning as given in section 518B.01.

(c) "Earned sick and safe time" means leave, including paid time off and other paid leave systems, that are paid at the same hourly rate as an employee earns from employment.

(d) "Sexual assault" means an act that constitutes a violation under sections 609.342 to 609.3453, or 609.352.

(e) "Stalking" has the same meaning as given in section 609.749.

Subd. 2. Accrual of earned sick and safe time. (a) An employee accrues a minimum of one hour of earned sick and safe time for every 30 hours worked. Except as provided in paragraph (b), an employee may not accrue more than 72 hours of earned sick and safe time in a calendar year unless the employer agrees to a higher amount.

(b) Employees of an employer that employs fewer than 21 employees may not accrue more than 40 hours of earned sick and safe time in a calendar year unless the employer agrees to a higher amount.

(c) Employees who are exempt from overtime requirements under United States Code, title 29, section 213(a)(1), as amended through the effective date of this section, are deemed to work 40 hours in each work week for purposes of accruing earned sick and safe time, except that an employee whose normal work week is less than 40 hours will accrue earned sick and safe time based upon the normal work week.

(d) Earned sick and safe time under this section begins to accrue at the commencement of employment of the employee.

(e) Employees shall be entitled to use accrued earned sick and safe time beginning 90 calendar days following commencement of their employment. After 90 calendar days of employment, employees may use earned sick and safe time as it is accrued.

Subd. 3. Use of earned sick and safe time. (a) An employee may use accrued earned sick and safe time for:

(1) an employee's:

(i) mental or physical illness, injury, or health condition;

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(ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or

(iii) need for preventive medical or health care;

(2) care of a family member:

(i) with a mental or physical illness, injury, or health condition;

(ii) who needs medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition; or

(iii) who needs preventive medical or health care;

(3) absence due to domestic abuse, sexual assault, or stalking of the employee or employee's family member, provided the absence is to:

(i) seek medical attention related to physical or psychological injury or disability caused by domestic abuse, sexual assault, or stalking;

(ii) obtain services from a victim services organization;

(iii) obtain psychological or other counseling;

(iv) seek relocation due to domestic abuse, sexual assault, or stalking; or

(v) take legal action, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, or stalking; and

(4) closure of the employee's place of business due to weather or other emergency, or an employee's need to care for a child whose school or place of care has been closed due to weather or other public emergency.

(b) An employer may require notice of the need for use of earned sick and safe time as follows. If the need for use is foreseeable, an employer may require advance notice of the intention to use earned sick and safe time, but in no case shall require more than seven days' advance notice. If the need is not foreseeable, an employer may require an employee to give notice of the need for earned sick and safe time as soon as practicable.

(c) When an employee uses earned sick and safe time for more than three consecutive days, an employer may require reasonable documentation that the earned sick and safe time is covered by paragraph (a). For earned sick and safe time under paragraph (a), clauses (1) and (2), reasonable documentation may include a signed statement by a health care professional indicating the need for use of earned sick and safe time. For earned sick and safe time under paragraph (a), clause (3), an employer must accept a court record or documentation signed by a volunteer for or employee of a victims services organization, an attorney, a police officer, or antiviolence counselor as reasonable documentation.

(d) An employer may not require, as a condition of an employee's using earned sick and safe time, that the employee seek or find a replacement worker to cover the hours during which the employee uses earned sick and safe time.

(e) Earned sick and safe time may be used in hourly increments or, at the discretion of the employer, increments of less than one hour.

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Subd. 4. Retaliation prohibited. An employer shall not retaliate against an employee because the employee has requested earned sick and safe time, used earned sick and safe time, or made a complaint or filed an action to enforce a right to earned sick and safe time under this section.

Subd. 5. Notice and posting. (a) Employers shall give notice that employees are entitled to earned sick and safe time, the amount of earned sick and safe time, and the terms of its use under this section; that retaliation against employees who request or use earned sick and safe time is prohibited; and that each employee has the right to file a complaint or bring a civil action if earned sick and safe time is denied by the employer or the employee is retaliated against for requesting or using earned sick and safe time.

(b) Employers may comply with this section by supplying employees with a notice in English and other appropriate languages that contains the information required in paragraph (a).

(c) Employers may comply with this section by displaying a poster in a conspicuous and accessible place in each establishment where employees are employed which contains all information required under paragraph (a).

(d) An employer that provides an employee handbook to its employees must include in the handbook notice of employee rights and remedies under this section.

Subd. 6. Confidentiality and nondisclosure. If, in conjunction with this section, an employer possesses health or medical information regarding an employee or an employee's family member or information pertaining to domestic abuse, sexual assault, or stalking of an employee or an employee's family member, the employer must treat such information as confidential and not disclose the information except with permission of the employee.

Subd. 7. No effect on more generous policies. (a) Nothing in this section shall be construed to discourage employers from adopting or retaining earned sick and safe time policies that meet or exceed, and do not otherwise conflict with, the minimum standards and requirements provided in this section.

(b) Nothing in this section shall be construed to limit the right of parties to a collective bargaining agreement to bargain and agree with respect to earned sick and safe time policies or to diminish the obligation of an employer to comply with any contract, collective bargaining agreement, or any employment benefit program or plan that meets or exceeds, and does not otherwise conflict with, the minimum standards and requirements provided in this section.

(c) Employers who provide their employees earned sick and safe time under a paid time off policy or other paid leave policy that meets or exceeds, and does not otherwise conflict with, the minimum standards and requirements provided in this section are not required to provide additional earned sick and safe time.

Subd. 8. Termination, separation, transfer. Nothing in this section may be construed as requiring financial or other reimbursement to an employee from an employer upon the employee's termination, resignation, retirement, or other separation from employment for accrued earned sick and safe time that has not been used. If an employee is transferred to a separate division, entity, or location, but remains employed by the same employer, the employee is entitled to all earned sick and safe time accrued at the prior division, entity, or location and is entitled to use all earned sick and safe time as provided in this section. When there is a separation from employment and the employee is rehired within 12 months of separation by the same employer, previously accrued earned sick and safe time that had not been used must be reinstated. An employee is entitled to use accrued earned sick and safe time and accrue additional earned sick and safe time at the commencement of reemployment.

Sec. 10. REPEALER.

Minnesota Statutes 2014, section 181.9413, is repealed.

Sec. 11. EFFECTIVE DATE.

This article is effective 180 days following final enactment.

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ARTICLE 5

FAIR SCHEDULING

Section 1. Minnesota Statutes 2014, section 177.27, subdivision 4, is amended to read:

Subd. 4. Compliance orders. The commissioner may issue an order requiring an employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.12, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, subdivision 2a, 181.722, 181.79, ~~and~~ 181.939 to 181.943, or and 181.99, and with any rule promulgated under section 177.28. The commissioner shall issue an order requiring an employer to comply with sections 177.41 to 177.435 if the violation is repeated. For purposes of this subdivision only, a violation is repeated if at any time during the two years that preceded the date of violation, the commissioner issued an order to the employer for violation of sections 177.41 to 177.435 and the order is final or the commissioner and the employer have entered into a settlement agreement that required the employer to pay back wages that were required by sections 177.41 to 177.435. The department shall serve the order upon the employer or the employer's authorized representative in person or by certified mail at the employer's place of business. An employer who wishes to contest the order must file written notice of objection to the order with the commissioner within 15 calendar days after being served with the order. A contested case proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15 calendar days after being served with the order, the employer fails to file a written notice of objection with the commissioner, the order becomes a final order of the commissioner.

Sec. 2. [181.99] NOTICE OF EMPLOYEE SCHEDULES.

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

(b) "Commissioner" means the commissioner of labor and industry or authorized designee or representative.

(d) "Employer" means a person or entity that employs one or more employees. The term includes an individual, corporation, partnership, association, nonprofit organization, group of persons, state, county, town, city, school district, or other governmental subdivision.

(e) "Flexible working arrangement" means a change in an employee's terms and conditions of employment with respect to work schedule, including, but not limited to, a modified work schedule, changes in start or end times in a work schedule or work shift, a predictable, stable work schedule, part-time employment, job sharing arrangements, working from home, telecommuting, limitations on the employee's availability to work, the location of the employee's worksite, reduction or change in work duties, or part-year employment.

(f) "On-call shift" or "on-call hours" mean time that an employer requires an employee to be available to work, and to contact the employer or its designee or wait to be contacted by the employer or its designee to determine whether the employee must report to work at that time.

(g) "Predictability pay" means payments to an employee, calculated on an hourly basis at the employee's regular rate of pay, for applicable schedule changes pursuant to subdivision 4. An employer must pay an employee predictability pay, when required by this section, in addition to any wages earned for work performed by the employee. An employer must pay predictability pay to an employee in the same pay period in which it was incurred by the employer.

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(h) "Shift" means the consecutive hours an employer requires an employee to work or to be on call to work. Breaks totalling two hours or less shall not be considered an interruption of consecutive hours.

(i) "Work week" means a fixed, consecutive seven-day period.

(j) "Work schedule" means all of an employee's regular and on-call shifts during a work week.

Subd. 2. Advance notice of work schedules. (a) An employer must give each employee the employee's individual initial work schedule, in writing, at least 21 days before the first day of that work schedule. An employer must contact each employee to notify the employee of any change in the employee's work schedule before the change takes effect and must provide the employee with a revised written work schedule reflecting any changes within 24 hours of making the change.

(b) On or before the beginning of an employee's employment, the employer must provide the employee with a written work schedule for the employee's first 21 days of employment.

(c) An employer may not require an employee to work hours not included in the employee's initial written work schedule without consent in writing by the employee.

(d) An employer must post a written schedule that includes the shifts of all current employees at a worksite at least 21 days before the start of each work week, whether or not they are scheduled to work or be on call that week. The employer must update that posted schedule within 24 hours of any change. The written schedule must be posted in a place that is readily accessible and visible to all employees at a worksite.

(e) An employee's work week must begin on the same day of the week each week, unless the employer provides 21 days advance written notice of a change in the start day of the work week.

(f) An employee has the right to request a change in work schedule, request to limit his or her availability to work particular hours, or otherwise provide input into the employee's work schedule.

(g) An employer must not require an employee to seek or find a replacement employee for any shifts or hours an employee is unable to work.

Subd. 3. Flexible working arrangements. (a) An employee has a right to request a flexible working arrangement at any time. Such a request must be in writing.

(b) An employer must consider an employee's request for a flexible working arrangement in good faith and engage in an interactive process with the employee to consider the request and determine whether the request can be granted in a manner consistent with the employer's business operations or legal or contractual obligations. The employer must begin this interactive process within two days of receiving the request. If information provided by the employee making a request for a flexible working arrangement requires clarification, the employer must explain what further information is needed and give the employee reasonable time to produce the information.

(c) After engaging in the interactive process, an employer must notify the employee of its decision regarding a flexible working arrangement, in writing, within two days of its last communication with the employee during the interactive process.

(d) If an employee requests a flexible working arrangement because of a serious health condition of the employee, the employee's responsibilities as a caregiver, or the employee's enrollment in a career-related educational or training program, or if a part-time employee makes the request for a reason related to a second job, the employer must grant the request.

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Subd. 4. Predictability pay required. (a) Within 21 days of, but not less than 24 hours from, the start of an employee's shift, an employer may do any of the following provided the employer pays the affected employee one hour of predictability pay in addition to wages earned for each changed shift, if any:

(1) subtract hours from a shift;

(2) add hours to a shift or add a shift;

(3) cancel a shift; or

(4) change the start or end time of a shift.

(b) Within 24 hours of the start of an employee's shift, an employer may do either of the following provided the employer pays the affected employee one hour of predictability pay in addition to wages earned for each changed shift:

(1) change the start or end time of a shift without changing the total number of hours in the shift; or

(2) add hours to a shift.

(c) Whenever an employee is scheduled to work a shift, and the employer cancels the shift or reduces the hours in the shift with less than 24 hours notice, the employer must pay the employee the lesser of four hours of predictability pay or predictability pay equal to the number of hours originally scheduled for the shift.

(d) An employer is not required to pay an employee any predictability pay under this subdivision when a schedule change is the result of the employee's request, including, but not limited to, a request to trade shifts with another employee, to use sick leave, vacation time, or any other type of leave.

(e) An employer is not required to pay an employee any predictability pay under this subdivision when a schedule change is the result of mutually agreed upon shift trade among employees.

Subd. 5. Exception for suspended operations. The requirements of subdivisions 2 to 4 do not apply to an employer when that employer's operations are suspended:

(1) due to threats to employees or property;

(2) when civil authorities have recommended that work not begin or continue;

(3) due to failure of public utilities or sewer systems or because public utilities fail to supply electricity, water, or gas; or

(4) due to a natural disaster or weather event.

Subd. 6. Right to rest. An employee has the right to decline work hours that occur (1) less than 11 hours after the end of the previous shift, or (2) during the 11 hours following the end of a shift that spanned two days. An employer must pay an employee 1-1/2 times the employee's regular rate of pay for any such hours worked.

Subd. 7. No discrimination based on hours of work. (a) An employer must not pay a different regular rate of pay based on the number of hours an employee is scheduled to work to employees whose jobs require equal skill, effort, and duties, and that are performed under similar working conditions. An employer may pay different hourly wages based on other reasons, such as seniority systems, merit, employee responsibilities, or systems that measure earnings by quantity or quality of production.

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(b) An employer must not condition eligibility for leave or time off based on the number of hours an employee is scheduled to work for employees whose jobs require equal skill, effort, and duties, and that are performed under similar working conditions. An employer may prorate employee leave or time off based on the number of hours the employee works.

(c) An employer must not condition eligibility for raises or promotions based on the number of hours an employee is scheduled to work for employees whose jobs require equal skill, effort, and duties, and that are performed under similar working conditions. Employers may condition eligibility for raises on other reasons, such as seniority systems, merit, employee responsibilities, or the nature and amount of an employee's work experience.

Subd. 8. Access to hours. If an employer has additional hours of work available in positions held by current employees, the employer must offer those hours to current qualified employees before hiring new employees or contractors, including the use of temporary services or staffing agencies.

Subd. 9. Record keeping requirements. (a) An employer must keep an accurate record of:

(1) the name, address, and occupation of each employee;

(2) the amount paid each pay period to each employee;

(3) the hours worked each day and each week by each employee; and

(4) each employee's initial work schedule and all subsequent revisions to that work schedule.

(b) An employer must keep the records required by this subdivision for at least two years after the entry date of the record. The records must be maintained at the place of employment, at an office of the employer, or with a bank, accountant, or other central location, and must be open to inspection and available upon request by the commissioner.

(c) An employer must allow an employee to inspect records required by this subdivision and relating to that employee at a reasonable time and place.

(d) The commissioner may impose a civil penalty of up to $1,000 on an employer for each failure to keep, furnish, or allow inspection of records under this subdivision.

Subd. 10. Employer retaliation. No employer shall discharge or take any other adverse action against any person in retaliation for asserting any claim or right under this section, for assisting any other person in doing so, or for informing any person about their rights under this section. An employer taking any adverse action against a person within one year of a person's engaging in the foregoing activities shall raise a presumption that such action was retaliation, which may be rebutted by clear and convincing evidence that such action was taken for other permissible reasons.

Subd. 11. Individual remedies. In addition to any other remedies available in law or equity, an employee may bring a civil action seeking redress for a violation or violations of this section directly to any court of competent jurisdiction. An employee may recover any and all damages recoverable at law plus an additional amount equal to twice those damages, together with costs and disbursements including reasonable attorney fees, and may receive injunctive and other equitable relief as determined by a court.

Subd. 12. Encouragement of more generous policies. (a) Nothing in this section shall be construed to discourage employers from adopting or retaining policies that meet or exceed, and do not otherwise conflict with, the minimum standards and requirements provided in this section.

(b) This section does not apply to employees covered under a collective bargaining agreement with an employer."

Journal of the House - 32nd Day - Monday, March 23, 2015 - Top of Page 1229

Delete the title and insert:

"A bill for an act relating to employment; establishing a Working Parents Act; providing wage theft protection; providing paid family leave; providing earned sick and safe time; requiring fair scheduling; imposing penalties; requiring reports; authorizing rulemaking; appropriating money; amending Minnesota Statutes 2014, sections 13.7905, by adding a subdivision; 177.24, by adding a subdivision; 177.253, subdivision 1; 177.254, subdivision 1; 177.27, subdivisions 2, 4, 7, 8, 9, by adding subdivisions; 177.28, subdivision 1; 177.32; 181.032; 181.940; 181.941; 181.942; 181.943; 181.9436; 181.944; 290.01, subdivision 19b; 541.05, subdivision 1; 541.07; proposing coding for new law in Minnesota Statutes, chapters 177; 181; repealing Minnesota Statutes 2014, section 181.9413; Minnesota Rules, part 5200.0080, subpart 7."

Signed:

Raymond Dehn

Dehn, R., moved that the Minority Report from the Committee on Commerce and Regulatory Reform relating to H. F. No. 1555 be substituted for the Majority Report and that the Minority Report be now adopted.

A roll call was requested and properly seconded.

LAY ON THE TABLE

Peppin moved that the Minority Report on H. F. No. 1555 be laid on the table.

A roll call was requested and properly seconded.

The question was taken on the Peppin motion and the roll was called. There were 69 yeas and 61 nays as follows:

Those who voted in the affirmative were: